SPAIN TO LAUNCH EXPORT DRIVE

  Spain unveils a 105 billion peseta plan
  this month aimed at boosting exports to reach European
  Community levels, director-general of the INFE export
  institute, Apolonio Ruiz Ligero, said.
      "The target is to raise exports to 20 pct of Gross Domestic
  Product over the next four years compared to 15 pct now," he
  said.
       "This is the minimum prevailing level in the EC and there
  is no reason why we should lag behind countries like Italy,
  which have a similar productive structure," he said.
      The plan calls for providing soft loans, tax cuts and other
  fiscal benefits to exporters and raising Spain's presence in
  international trade fairs.
      Consumer goods such as fashion and wine, as well as
  traditional industrial exports will be promoted.
      Ruiz Ligero said INFE would double its annual budget to 20
  billion pesetas to finance the four-year plan, while the
  government's development aid fund (FAD) would provide a special
  25 billion peseta grant.
      The plan calls for boosting exports by five to six pct in
  real terms this year after a 7.4 pct decline last year.
      Ruiz Ligero attributed this drop to a lack of demand in
  developing countries and a rally in domestic consumer demand,
  which rose six pct last year after 1.9 pct in 1985.
      He added that 80 pct of Spain's exports went to
  Organisation for Economic Cooperation and Development (OECD)
  countries.
      The EC accounts for 60 pct of the market and exports to the
  Community rose seven pct last year. The government plans to
  concentrate efforts on Western Europe and the U.S.
      "The problem is convincing businessmen that exports are
  vital to survival in the context of EC competition," he said.
      He said Spanish businessmen traditionally turned to the
  domestic market to satisfy rises in consumer demand, while
  turning their backs on foreign markets.
      "They have to realise their share of the home market is
  going to shrink with growing deregulation," he said. "Foreign
  companies are taking up positions in the domestic economy and
  it is it vital to secure a market share abroad."
  

