Bulgaria

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A growing real estate sector means expanding construction

2006 was a momentous year for Bulgaria and for the US– Bulgaria economic relationship. The US Ambassador to Bulgaria John Beyrle says that it is “the springtime for the US–Bulgarian economic relationship” because of the surge in US investments to Bulgaria. The largest foreign investor in Bulgaria is a US company, the largest real estate investor in Bulgaria is a US firm, and US –Bulgaria trade continues to break records.

More EU means more US

The visit to Sofia by Secretary of State Condoleezza Rice in April, and the signing of the US–Bulgarian Defense Cooperation Agreement, provided further evidence of the deepening of the strategic partnership between the two countries. This peak of goodwill was highlighted by visits of American officials, three of them affiliated with the AmCham Bulgaria. The first was the US Congressional Delegation January visit headed by Bob Goodlate, Chairman of the Agricultural Committee. Six visiting members of US Congress discussed the US–Bulgaria business partnership and US investments in Bulgaria.

In June the board of AmCham met with the Tennessee Civic and Business Leaders Mission to discuss possibilities for partnerships and investments in the sectors of agriculture, tourism, IT, real estate and construction, music and the film industry. In September, Paul Dyck, Deputy Assistant Secretary for Europe International Trade Administration, US Department of Commerce, had a meeting with the AmCham to discuss the progress of the Bulgarian government in economic reforms and to find new opportunities for the bilateral relationships with regard to Bulgaria’s EU accession.

Since January 1, 2007, Bulgaria’s EU membership brings the country into the strongest trade relationship – that of US–EU with over $1.8 billion of goods and services exchanged each day. That will translate into greater opportunities for bilateral economic and commercial co-operation.

Encouraging Investment

The expected surge of US investments will be facilitated by two major events that took place in early 2007. One is the update of US-Bulgaria Bilateral Investment Treaty in January 2007, which encourages and facilitates trade and investment between the United States and Bulgaria. The second event is the signing of the Treaty for Avoidance of Double Taxation between Bulgaria and the US in February. Fifteen years after talks on an income tax treaty began, US Treasury Deputy Secretary Robert M. Kimmitt and Bulgarian Finance Minister Plamen Oresharski signed the treaty in Washington, on February 23.

AmCham Bulgaria has lobbied actively and successfully for the re-launch of negotiations on a US – Bulgaria DTT since 2003. “AmCham members took the lead in a four-year lobbying effort to push the US and Bulgarian governments for this treaty. We’re very gratified to see a positive outcome from our efforts,” said Ken Lefkowitz, Chairman of AmCham’s Public Affairs Committee and former AmCham President. “The treaty lowers the cost for US investors to do business in Bulgaria and vice versa by reducing withholding rates and reducing the complexity of working and investing in either country,” he said.

The business climate in Bulgaria is improving for both Bulgarian entrepreneurs and foreign investors. It is now easier for SMEs to obtain a bank loan to develop their business activities. On the other hand, more and more large-scale international companies are casting their eyes on the Bulgarian market. The growth in GDP will be supported by strong growth in domestic consumption. Positive developments in the real estate sector will be supported by growing retail trade, expanding construction and surging services. Strong growth of household consumption will remain an important driving force for positive economic developments.

AMCHAM Bulgaria

The US - Bulgaria relationship is getting stronger

The main focuses of the AmCham activities remain in networking and lobbying. The Chamber plays a distinctive role in supporting the partnerships between US and Bulgarian companies. The Chamber co-operated with the US Commercial Service in Bulgaria to develop a conference on the business opportunities arising from the US–Bulgaria Joint Training Facilities. The conference and the follow-up training seminars have turned out to also be ideal venues for networking between US and Bulgarian companies. Public contracts worth tens of millions of dollars are expected to be awarded in the next couple of years.

AmCham Bulgaria also boasts strong committees, including industry-oriented and lobbying groups looking to improve the regulatory environment in Bulgaria. AmCham EU Affairs Committee helps AmCham members to understand complex EU regulations as well as prepare the businesses for the opportunities coming from the EU programs and structural funds.

“The Chamber plans to develop a number of new services for the US companies in finding and evaluating potential business partners as well as in identifying new market opportunities arising from Bulgaria’s EU membership,” said Valentin Georgiev, AmCham executive director.

Contact Information

American Chamber of Commerce in Bulgaria
Business Park Sofia
Mladost 4 Area
1715 Sofia
Bulgaria
Tel: +359 2976 9565
E-mail: amcham@amcham.bg
Website: www.amcham.bg

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