Albert J. Planagan

If you are a small or mediumsize U.S. exporter and are not sure if the time is right to make your first foray into the Middle East market, go see Bert Planagan. Chances are good that he'll talk you into it.

Mr. Planagan, you see, is Director of the U.S. Department of Commerce's Office of the Near East, and he will probably start by trying to disabuse you of some of the notions you might have about conditions in the area.

"Many people think that because of the oil glut, lower oil revenues, the world recession, unstable political conditions—you name it—the buying boom in the Middle East is over," he says. "But it's not! Did you know that it's still the fastest-growing market in the world for U.S. exports?"

He cites some impressive figures:

Exports to the area this year from the U.S. are showing a growth so far of more than 15 percent over the corresponding period of 1981—a year which had already seen exports jump 25.8 percent over 1980. Each of four countries in the Middle East is buying more than $1 billion of U.S. goods and services on an annual basis, and one of them—Saudi Arabia—bought more than $7 billion worth last year. Right now, the Middle East is the market for 9.6 percent of the total of American exports compared to only 6.9 percent in 1980. And all of these results are being achieved despite the near collapse of the Iranian market and the restrictions that have been placed on U.S. sales to Libya, which once approached $1 billion annually.

Revenues Still Flow In

Says Mr. Planagan: "The point is, glut or no glut, the oil revenues that are flowing into the area are still substantial, and big development projects are still moving forward. Spending, in other words, is still going on at a high rate."

But the market is a very competitive one. Notwithstanding the good showing being put on by American exporters, other industrialized countries are doing even better. According to figures of the Organization for Economic Cooperation and Development for 1980, the U.S. trailed Japan, the United Kingdom, Italy, France and West Germany in the relative growth of its exports to the region. That's where Mr. Planagan and his group come in.

"There is plenty more business out there to be had," Mr. Planagan says. "In this office we are helping by trying to improve the investment climate for exporters and to encourage smaller companies, and those who are new to the market, to take advantage of the opportunities."

The office carries out its mission in a variety of ways. Among the things that Mr. Planagan's office regards as major accomplishments within the past year or so is having helped set up a U.S.-Saudi working group to promote U.S.-Saudi private sector joint ventures; persuaded Morocco to revise its foreign investment law to facilitate greater U.S. investment; hosted and coordinated U.S. visits by three Algerian commercial delegations interested in expanding purchases of U.S. food products and textile machinery: assisted the Overseas Private Investment Corporation in organizing investment missions to Egypt and Morocco; prevailed upon a major contracting ministry of an Arab country to drop Arab boycott conditions from its tenders; and obtained agreement from Iraq to permit a U.S. companies pavilion, for the first time, at the Baghdad International Fair.

Orienting U.S. Business

"That's really just the tip of the iceberg, of course," says Mr. Planagan. On the average, he says, his office gets about 12,000 business queries per year—counting phone calls, personal visits, and letters. Many of the queries are routine asking for information on such things as trade statistics or tariffs. Some others are from businessmen who want an orientation program. And what general advice does the office pass along?

"We tell them the Middle East is no longer a seller's market, and we stress the absolute necessity of doing one's homework before going out there," says Mr. Planagan. "Every country in the region is different, and it's important to know the differences. For example, in one country the key to doing business is having an effective agent. In the next, having an agent is prohibited by law."

When Mr. Planagan first started with the Commerce Department back in 1969, as desk officer for Egypt and Saudi Arabia, there were very few U.S. businessmen who knew about these things—or, for that matter, cared very much. "The Middle East was a very small market," he says, "and in the lower Gulf area, for example, the Department didn't have a single representative." As everyone knows, it was only after the oil price rises of 1973-74 that the area developed significant purchasing power. Now, the Department has commercial off ices in virtually every major country of the region.

Before becoming director of the Near East office—which was known as CAGNE (Commerce Action Group Near East) until early this year—Mr. Planagan was with the Bureau of East-West Trade, and had served as desk officer for Turkey. Prior to joining Commerce he was a legislative assistant on the Hill, and had previously served with the State Department in Buenos Aires. He has a B.A. from Hunter College and an M.A. from Columbia University, both in economics.