ACCESSION 
NUMBER:360820

FILE ID:EUR414

DATE:09/15/94

TITLE:PORTUGUESE FOREIGN MINISTER BARROSO VISITS THE U.S. (09/15/94)

TEXT:*94091512.PFE

*EUR414   09/15/94

PORTUGUESE FOREIGN MINISTER BARROSO VISITS THE U.S.

(State Department Fact Sheet 09/15/94) (350)

Portuguese Foreign Minister Jose Manuel Durao Barroso is visiting the United

States September 15 and 16.  This is his first visit to the United States

since becoming Foreign Minister in 1992.



On September 15, he and Secretary Christopher will sign a customs agreement

and exchange protocols of signature regarding the income tax treaty between

the United States and Portugal.



CONVENTION AND PROTOCOL BETWEEN THE UNITED STATES OF AMERICA AND THE

PORTUGUESE FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF

1ISCAL EVASION WITH RESPECT TO TAXES ON INCOME



The income tax treaty will be the first tax treaty between the two countries

and is regarded by both as an important step in promoting trade and

investment relations.  Portugal is the only member country of the European

Union with which the United States does not now have an income tax treaty

in effect.



The proposed treaty reduces taxes on cross-border payments of dividends,

interest, branch profits, and royalties and will there by reduce trade

barriers between the two countries.



The treaty requires Senate approval.  We are hopeful to have the

ratification process completed by the end of this year.  The treaty will

enter into force on the date on which the instruments of ratification are

exchanged, and its provisions will generally have effect on the following

January 1.



Copies of the treaty may be obtained by writing the office of Pubic Affairs,

U.S. Treasury Department, Room 2315, Washington, D.C. 20220, or calling

(202) 622-2960.



CUSTOMS MUTUAL ASSISTANCE AGREEMENT

The Customs Mutual Assistance Agreement (CMAA) will promote U.S.-Portuguese

cooperation in prevention, investigation and repression of customs

offenses.



U.S. domestic laws do not permit disclosure of much information in the

absence of a formal agreement or treaty.  This agreement will allow us to

exchange information, intelligence, and other assistance.



U.S. Customs has signed agreements with a number of other countries.  As of

this date, 25 have entered into force.



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