U.S. sells its products to Kuwait. Kuwait imports a wide variety of U.S. military, industrial and consumer products. Kuwait is the fifth largest market for U.S. exports in the Middle East and North Africa. The U.S. is Kuwait's largest trading partner. Kuwait has to produce export quality products.
Leading military imports in the past three years have included aircraft and parts, air defense systems, radar and tanks. Leading industrial imports include oilfield equipment! parts, aircraft parts and generators. Leading consumer imports include passenger vehicles and trucks. Other significant imports include: air conditioning and refrigeration equipment, carpeting, cigarettes, computers, construction equipment, fire fighting equipment, fishing boats, hardware, housewares, medical equipment, office furniture, pleasure boats/yachts, process controls, processed foods, telecommunications equipment and water treatment equipment.
The Commercial Environment
Kuwait is a highly price-competitive market because it has low tariffs (generally only 4 percent), few import barriers and no exchange controls. Procurement for large public sector projects dominates the business scene; there is almost no manufacturing and little non-oil exporting. American firms generally need to work through a local agent or distributor, and should monitor an agent's performance and potential conflicts of interest. American business negotiators find that Kuwaiti buyers have a strong bias in favor of the lowest price, despite a higher priced product's technical advantages or long-term savings.
Kuwait has a lot of business opportunities but a new business man has to think before investment. There are many importers in Kuwait who are striving to produce excellent products. Kuwaitis are interested in American products and business proposals because of ongoing goodwill toward the U.S. as a result of the Gulf War, local media coverage of American news and popular culture, and because large numbers of Kuwaitis have studied in the U.S. or travel there regularly for business or family vacations. Kuwaitis appreciate American products' high quality and association with a convenient, comfortable, modern, affluent lifestyle.
Kuwaitis readily buy American products that are competitive in price and quality. If an importer comes in Kuwait then he has to think about that he is going to compete those importers who are already working there. A lot of home work is required to do business there.
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