BULGARIA: U.S. MARKET ACCESS PRIORITIES

UNCLAS SOFIA 000091 SIPDIS GENEVA FOR USTR ALICIA GREENIDGE STATE FOR EB/TP/MTA/MST ANISSA WHITTEN STATE PLEASE PASS TO USTR FOR CHARLIE HOOKER E.O. 12958: N/A TAGS: ETRD BU WTO SUBJECT: BULGARIA: U.S. MARKET ACCESS PRIORITIES REF: 04 STATE 270998 ¶1. U.S. market access priorities in Bulgaria (ranked with a value from one to five, with one a top priority for U.S. service suppliers in host country and five a very low priority for U.S. service suppliers): -3-Legal services -3-Accounting, auditing and bookkeeping services -3-Taxation services -2-Architectural services -1-Engineering and integrated engineering services -2-Urban planning and landscape architectural services -1-Computer and related services -3-Research and development services -2-Real estate services -2-Rental/Leasing Services -3-Advertising services -3-Market research and public opinion, polling services -2-Management consulting services -3-Technical testing and analysis services (including energy related testing services) -2-Services incidental to agriculture, hunting and forestry, and fishing -3-Services incidental to mining -1-Energy services (including land site preparation, drilling and plugging) -1-Services incidental to energy distribution -2-Placement and supply services of personnel -2-Investigation and security -1-Related scientific and technical consulting services -2-Maintenance and repair of equipment -3-Building-cleaning services -3-Photographic services -3-Packaging services -4-Printing, publishing -2-Convention services -3-Courier services (Express Delivery) -2-Telecommunication services -2-Audiovisual services -3-Construction and related engineering -3-Distribution Services, including: commission agents' services, wholesale trade services, retailing services, and franchising -4-Educational Services, including: higher education services, adult education (i.e., vocational),other education services (i.e., testing and computer or language training) -1-Environmental services (wastewater treatment, sanitation, protection of ambient air and climate, remediation and clean up, noise and vibration abatement, and biodiversity protection) -4-Insurance services -2-Banking and other financial services including securities -3-Tourism and travel-related services, including: hotels and restaurants, catering, travel agencies and tour operators services, and tourist guides services -3- Recreations and sporting services (other than audiovisual services),including: entertainment services (including theatre, live bands and circus services),news agency services; libraries, archives, museums and other cultural services; sporting and other recreational services. ¶2. Bulgaria's current level of market openness (ranking - high (H),medium (M),or low(L)): -H-Legal services -M-Accounting, auditing and bookkeeping services -M-Taxation services -M-Architectural services -H-Engineering and integrated engineering services -L-Urban planning and landscape architectural services -H-Computer and related services -M-Research and development services -M-Real estate services -M-Rental/Leasing Services -L-Advertising services -M-Market research and public opinion, polling services -M-Management consulting services -M-Technical testing and analysis services (including energy related testing services) -L-Services incidental to agriculture, hunting and forestry,and fishing -M-Services incidental to mining -H-Energy services (including land site preparation, drilling and plugging) -H-Services incidental to energy distribution -M-Placement and supply services of personnel -L-Investigation and security -L-Related scientific and technical consulting services -L-Maintenance and repair of equipment -L-Building-cleaning services -M-Photographic services -M-Packaging services -M-Printing, publishing -H-Convention services -M-Courier services (Express Delivery) -H-Telecommunication services -M-Audiovisual services -H-Construction and related engineering -M-Distribution Services, including: commission agents' services, wholesale trade services, retailing services, and franchising -M-Educational Services, including: higher education services, adult education (i.e., vocational),other education services (i.e., testing and computer or language training) -H-Environmental services (wastewater treatment, sanitation, protection of ambient air and climate, remediation and clean up, noise and vibration abatement, and biodiversity protection) -M-Insurance services -H-Banking and other financial services including securities -M-Tourism and travel-related services, including: hotels and restaurants, catering, travel agencies and tour operators services, and tourist guides services -M- Recreations and sporting services (other than audiovisual services),including: entertainment services (including theatre, live bands and circus services),news agency services; libraries, archives, museums and other cultural services; sporting and other recreational services. ¶3. Pension reforms adopted in 1999-2000 started movement to a "three-pillar pension scheme." The reform of the pay-as-you-go pension system into a diversified three-pillar system aims to gradually shift up to five percent of contributions to a mandatory second pillar to be invested in private pension funds. Each of the eight private pension companies may administer four pension funds at most: a universal pension fund, occupational pension fund, voluntary pension fund and pension fund with investment vouchers. Although the legislative framework has been in place since 1999, a number of challenges remain. In the short run, issues connected to pension indexing, disability claims, effectiveness and reconciliation of contributions, accounting and valuation procedures, and building a strong supervisory agency need to be resolved.