USITC PUBLICATION 3265

DECEMBER 1999

United States International Trade Commission, Washington, DC 20436

PRODUCTION SHARING: USE OF U.S.

COMPONENTS AND MATERIALS IN

FOREIGN ASSEMBLY OPERATIONS, 1995-1998

INVESTIGATION NO. 332-237
UNITED STATES INTERNATIONAL TRADE COMMISSION

Address all communications to

Secretary to the Commission

United States International Trade Commission

Washington, DC 20436

This report was prepared principally by

John Cutchin, Project Leader

Josephine Spalding, Assistant Project Leader

Ruben Mata, Assistant Project Leader

David Lundy, Data Coordinator

John Davitt, Electronic and Transportation Division Coordinator

Support staff

Diane Bennett, Sharon Greenfield, Zema Tucker

Principal product sector and country profiles provided by

John Kitzmiller, Ruben Mata, Debra McNay, Laura Polly,

Laura Rodriguez–Archila, Carl Seastrum, Josephine Spalding

With assistance from

Jan Summers, Office of Tariff Affairs and Trade Agreements

Printing by

Office of Publishing

Under the direction of

Larry L. Brookhart, Division Chief

Ralph J. Watkins, Branch Chief

Minerals, Metals, Machinery, and Miscellaneous Manufactures Division

Vern Simpson

Director of Industries

Robert A. Rogowsky

Director of Operations

COMMISSIONERS

Jennifer A. Hillman

Lynn M. Bragg, Chairman

Marcia E. Miller, Vice Chairman

Thelma J. Askey

Stephen Koplan

Carol T. Crawford
U.S. International Trade Commission

Washington, DC 20436

Publication 3265

Second Printing

December 1999

Production Sharing: Use of U.S. 

Components and Materials in 

Foreign Assembly Operations, 1995-1998

OMB No.: 3117–0188

ITC READER SATISFACTION SURVEY

Production Sharing: Use of U.S. Components and Materials in Foreign

Assembly Operations 1995-1998



# ! #

-*&
%!&-,+,' $(-+++++, .$-&)-$!,1''-**('*,+&,'++!+,-+!&

!%(*'.!&-,-*(*'-,+$+  !##"$$#,', 


'-*&%&,!,$($+(*!&,	*

	


	


	

$++(!1!&'*%,!'&!&, !+*('*,%'+,-+-$,'1'-1'-*'*&!2,!'&

+&1!&'*%,!'&%!++!&, ,1'-'&+!*!%('*,&, ++(!1$'/'

1+($+!&,!1%!++!&!&'*%,!'&&/ 1!,/'-$!%('*,&,'* $(-$,'1'-

$+++++, ', !+
*('*,&+/*$'/1!*$!&$$, ,(($1	4,*'&$1

*		4*	
4'(!&!'&',(($!$	4!+*	4,*'&$1!+*

 ('*,(*+&,+&/,+!&'*%,!'&&'*,     

 ,&$1+!++.$-,',+!&'*%,!'&&'*,     

 &$1+!+!+-&!)-'**'-&*#!&     

 ,,!+,!$,*-+-$,'%%1'*&!2,!'&     

 -",%,,*&&$1+!+*,!%$1     

 
!+, '&$1'*, (***+'-*', !+!&'*%,!'&     

&',($+!&,!1*'%/ ,', *+'-*, !&'*%,!'&!+.!$$

$+.$-,,  ', !+*('*,&+/*$'/1!*$!&$$, ,(($1	4,*'&$1

*		4*	
4'(!&!'&',(($!$	4!+*	4,*'&$1!+*

 *!,,&!&$*&-&*+,&$%&&*     

 ('*,!&!&+'*0-,!.+-%%*1*++#1!++-+     

 !-*+ *,+*( +* $(-$,'-&*+,&!&!++-     

 &$1+!+, *'- '-,*('*,&+/*+#1)-+,!'&+     

 ('*,**&+.*!,1'(*!%*1&+'&*1+'-*+     

 '-*+*-$$1'-%&,!&,0,'*'',&',+     

$+(*'.!-*, *'%%&,'&&1', '.(*'*%&%+-*++((*'(*!,

-+,!'&+'*!%(*'.!&
'%%!++!'&'.*'(*'-,!'&+ *!&3*$,!++-+

, *,'(!+!++-+'!&,*+,'*'&*&

$+(*'.!1'-*&,*&,*++&-(,1'-*%!$!&*++$'/!(($!$
UNITED STATES

INTERNATIONAL TRADE COMMISSION

WASHINGTON, DC 20436

OFFICIAL BUSINESS

PENALTY FOR PRIVATE, USE $300



NO POSTAGE

NECESSARY

IF MAILED

IN THE

UNITED STATES

BUSINESS REPLY MAIL

FIRST CLASS PERMIT NO. 12840 WASHINGTON, DC

POSTAGE WILL BE PAID BY ADDRESSEE

U.S INTERNATIONAL TRADE COMMISSION

500 E STREET, SW.

WASHINGTON, DC 20277–2840

ATTN:

OFFICE OF INDUSTRIES

Production Sharing
i

ABSTRACT

This report series provides an annual summary of developments related to the use of U.S.-made

components in foreign assembly plants. It also examines why such production-sharing operations have

become an integral part of global efforts to reduce manufacturing costs and have contributed to the

accelerated pace of cross-border integration of manufacturing in North America and the Caribbean Basin. 

The current report uses official U.S. import statistics, supplemented with various other information, to

examine the use of North American assembly plants as part of a strategy to reduce manufacturing costs or

to improve access to North American and global markets, focusing on developments in 1998. The report

also highlights the evolution of assembly plants in Mexico into higher value-added manufacturing

operations, as well as the trend toward the integration and rationalization of production facilities

throughout North America and the Caribbean Basin.

Imports that incorporate U.S.-made components can enter the United States either free of duty or at

reduced duties under the production-sharing provisions (9802.00.60-.90) of Chapter 98 of the Harmonized

Tariff Schedule (HTS). However, a significant and growing portion of imports from production-sharing

operations does not enter under these Chapter 98 provisions because the goods are already eligible for dutyfree treatment under other agreements or tariff-preference programs. Therefore, official U.S. statistics are

increasingly unable to quantify the magnitude and scope of production-sharing activity with complete

accuracy.

The Commission’s report assessing trade under the production-sharing provisions currently is the

only U.S. source of data for documenting the use of U.S. components in foreign assembly. Where possible,

this report characterizes the extent and type of production-sharing trade that takes place beyond that

reported under the Chapter 98 production-sharing provisions. The official reported value of products

entered under these provisions fell by $5.1 billion (6 percent) to $74.1 billion in 1998. The value of U.S.-

made components incorporated in imports from Mexico reported under the production-sharing provisions

of HTS Chapter 98 in 1998 amounted to $14.5 billion, or 57 percent of the U.S. content in imports under

these provisions from all sources that year ($25.2 billion).

This year’s report focuses on regional developments in North America and the Caribbean Basin

region and highlights activities in selected industry sectors -- motor vehicles and auto parts, color television

receivers, and apparel.

iii

CONTENTS

Page

Abstract .......................................................... i

Chapter 1. Overview ............................................... 1-1

Scope and organization of the report ......................................... 1-3

Overview of aggregate trends ............................................... 1-6

Overview of principal sectors .............................................. 1-7

Overview of principal partners .............................................. 1-11

Chapter 2. Recent Developments in Manufacturing

Integration in North America ................................ 2-1

Mexico 2-2

Trends encouraging cross-border integration ................................ 2-2

Measures of integration ................................................ 2-3

Examples of integration, including major household appliances .................. 2-5

Joint ventures .................................................... 2-6

Asian investors ................................................... 2-8

Canada ............................................................... 2-8

Caribbean Basin ........................................................ 2-11

Medical goods ....................................................... 2-13

Microprocessor boards ................................................ 2-15

Footwear and parts ................................................... 2-15

Electrical circuit apparatus ............................................. 2-16

Precious jewelry and related articles ...................................... 2-16

Telephone apparatus .................................................. 2-16

Chapter 3. Cross-Border Manufacturing in Selected

Industries.............................................................. 3-1

Motor vehicles and parts .................................................. 3-1

Industry profiles ..................................................... 3-4

North American manufacturing integration ................................. 3-5

North American automotive investment trends ............................... 3-7

Regional trade patterns ................................................ 3-9

Implications for the competitiveness of the North American motor

vehicle industry ...................................................... 3-11
CONTENTS--Continued

iv

Page

Chapter 3. Cross-Border Manufacturing in Selected

Industries–Continued

Television receivers and parts .............................................. 3-13

Emergence of Mexico’s CTV industry ..................................... 3-13

Manufacturing integration and investment .................................. 3-14

Regional trading patterns ............................................... 3-17

Implications for the competitiveness of the North American 

television receiver and parts industry ................................... 3-17

Apparel ............................................................... 3-19

Competition between principal sources .................................... 3-21

Recent developments in major country sources of apparel ...................... 3-22

Mexico ......................................................... 3-22

Movement toward vertically integrated manufacturing ...................... 3-23

CBERA ........................................................ 3-28

Implications for the competitiveness of the North American textile and

apparel industry .................................................. 3-30

Appendixes

A. The customs treatment of certain American goods returned

(HTS 9802.00.60, 9802.00.80, and 9802.00.90) and “user fees” ................. A-1

B. Statistical tables ........................................................ B-1

C. U.S.-Mexico trade: Statistics of the Government of Mexico ........................ C-1

Figures

1-1. U.S. imports under the production-sharing provisions of HTS Chapter 98, 

share of total value and duty savings, by selected industries, 1998 ................ 1-10

3-1. Apparel: U.S. content in imports under the production-sharing provisions (PSP) of

HTS Chapter 98, by top suppliers, and by leading CBERA suppliers,

1998 .............................................................. 3-28

Tables

1-1. Merchandise trade: U.S. exports of domestic merchandise, imports for consumption, and

merchandise trade balance, for NAFTA, CBERA and other partners, 1995-98 ....... 1-7

1-2. U.S. imports for consumption: Total and under the production-sharing provisions 

of HTS Chapter 98, by principal suppliers1995-98 ........................... 1-8

1-3. U.S. trade with Canada, Mexico, and the Caribbean Basin region, by leading 

sectors, 1998 ........................................................ 1-9
CONTENTS--Continued

v

Page

Tables–Continued

2-1. Mexico: U.S. exports of domestic merchandise, imports for consumption, and

merchandise trade balance, by industry sector, 1995-98 ........................ 2-4

2-2. U.S. direct investment abroad on a historical cost basis: Canada, Mexico, and 

selected Caribbean Basin countries,1995-98 ................................ 2-6

2-3. Canada: U.S. exports of domestic merchandise, imports for consumption, and

merchandise trade balance, by sector and digest groupings, 1995-98 .............. 2-10

2-4. Caribbean Basin: U.S. imports for consumption, by leading sectors, 1995-98 ........... 2-12

2-5. Caribbean Basin: U.S. imports for consumption, by leading manufactured products

and suppliers, 1995-98 ................................................ 2-14

3-1. Trends in producers’ shipments and employment in selected industry sectors in the 

United States, Canada, and Mexico, 1995-98 ................................ 3-2

3-2. Motor vehicles: Selected investments in Mexico ................................. 3-8

3-3. Motor vehicle parts: Selected investments in Mexico ............................. 3-9

3-4. Motor vehicles: U.S. exports of domestic merchandise, imports for consumption,

and merchandise trade balance, 1995-98 ................................... 3-10

3-5. Certain motor-vehicle parts: U.S. exports of domestic merchandise, imports for 

consumption, and merchandise trade balance, 1995-98 ......................... 3-12

3-6. Selected U.S. CTV manufacturer acquisitions, 1974-95 ........................... 3-13

3-7. North American manufacturers of color picture tubes and color television

 receivers, 1999 ......................................................... 3-15

3-8. Color television receivers and parts: U.S. exports of domestic merchandise, imports

for consumption, and merchandise trade balance, 1995-98 ...................... 3-18

3-9. Apparel: U.S. imports for consumption, total and under the production-sharing 

provisions (PSP) of HTS Chapter 98, by principal suppliers (based on the value

of U.S. components contained in the HTS PSP imports in 1998), 1995-98 .......... 3-20

3-10. U.S. textile and apparel firms with current or planned integrated manufacturing 

operations in Mexico as of September 1999 ................................ 3-25

B-1. U.S. imports for consumption under HTS provisions 9802.00.60 and 9802.00.80, 

1971-98 ........................................................... B-2

B-2. U.S. imports for consumption under the production-sharing provisions (PSP) of 

HTS Chapter 98: total imports, imports under HTS PSP, and U.S. content, 

by principal sources, 1995-98 ........................................... B-3

B-3. U.S. imports for consumption under the production-sharing provisions (PSP) of 

HTS Chapter 98, by commodity groups, 1995-98 ............................ B-7

B-4. U.S. imports for consumption under the production-sharing provisions (PSP) of

HTS Chapter 98, by principal sources, 1998 ................................ B-13

B-5. U.S. imports for consumption from Mexico under NAFTA and the productionsharing provisions (PSP) of HTS Chapter 98, by commodity groups, 1998 ......... B-14
CONTENTS--Continued

vi

Page

Tables–Continued

B-6. U.S. imports for consumption from Japan, total and under the production-sharing

provisions (PSP) of HTS Chapter 98, by commodity groups, 1998 ............... B-19

B-7. U.S. imports for consumption from Germany, total and under the productionsharing provisions (PSP) of HTS Chapter 98, by commodity groups, 1998 ......... B-22

B-8. U.S. imports for consumption from the Dominican Republic, total and under the

 production-sharing provisions (PSP) of HTS Chapter 98, by commodity 

groups, 1998 ........................................................ B-25

B-9. U.S. imports for consumption from the Philippines, total and under the productionsharing provisions (PSP) of HTS Chapter 98, by commodity groups, 1998 ......... B-28

B-10. U.S. imports for consumption from Malaysia, total and under the productionsharing provisions (PSP) of HTS Chapter 98, by commodity groups, 1998 ......... B-31

B-11. U.S. imports for consumption from Korea, total and under the production-sharing

provisions (PSP) of HTS Chapter 98, by commodity groups, 1998 ............... B-34

B-12. U.S. imports for consumption from Canada, total and under the production-sharing

provisions (PSP) of HTS Chapter 98, by commodity groups, 1998 ............... B-37

B-13. U.S. imports for consumption from the United Kingdom, total and under the

production-sharing provisions (PSP) of HTS Chapter 98, by commodity 

groups, 1998 ........................................................ B-40

B-14. U.S. imports for consumption from Sweden, total and under the production- sharing

provisions (PSP) of HTS Chapter 98, by commodity groups, 1998 ............... B-43

B-15. U.S. imports for consumption under HTS heading 9802.00.60, by country and

commodity, 1998 .................................................... B-46

B-16. U.S. imports for consumption under HTS heading 9802.00.90 from Mexico, by

commodity, 1997 and 1998 ............................................. B-47

B-17. Duty savings from use of the production-sharing provisions (PSP) of HTS

 Chapter 98, by monitoring group, 1998 ................................... B-48

B-18. U.S. imports under the production-sharing provisions (PSP) of HTS Chapter 98

for all countries, by Standard Industrial Classification (SIC) code, 1997-98 ............ B-52

B-19. Average hourly compensation costs for production workers in manufacturing, 

by selected regions and countries, 1995-98 ................................. B-56

C-1. U.S.-Mexico trade in 1998, by HS chapter .................................... C-2

C-2. Mexico’s exports to the United States under Temporary Import Programs (Maquiladora 

and PITEX), by leading product sectors, 1996-98 ............................ C-5

C-3. Total imports into Mexico under Temporary Import Programs (Maquiladora 

and PITEX), by leading sources, 1995-98 .................................. C-6
1

 The term “rationalization of production” as used in this report refers to a series of production

processes at different locations that take advantage of inherent efficiencies or reduced costs of the various

production inputs (e.g., labor wage rates, skilled workforces, key materials, etc.) available from each

locale. Other factors that have an impact on plant location decisions include transportation costs,

infrastructure, and proximity to strategic markets.

2

 Production sharing occurs when a good is produced in two or more sequential stages; two or more

countries provide value-added during the production of the good; and at least one country uses imported

inputs in its stage of the production process. Hummels, Ishii, and Yi estimate that production sharing,

which they term “vertical specialization,” accounts for 30 percent of world exports. See David Hummels,

Jun Ishii, and Kei-Mu Yi, The Nature and Growth of Vertical Specialization in World Trade, Social

Science Research Network, Working Paper No. 72, Mar. 1999. In defining “vertical specialization,”

Hummels, et al, add a requirement that the resulting product be exported. Currently, however, more

countries with export processing programs allow production-sharing operations to sell products in

domestic markets. Such liberalization is an element of the North American Free-Trade Agreement

(NAFTA).

3

 See table B-19 for a listing of average hourly compensation costs for production workers in

manufacturing for selected countries in North America, Europe, and Asia.

4

 U.S. International Trade Commission (Commission or USITC) staff routinely monitor the effects of

production sharing on U.S. industry and maintain contact with U.S. companies that take part in such

arrangements. See ch. 3 for discussions of these operations in various industry sectors.

5

 Under the “outward processing trade” tariff provision of EU customs law, the value of EU-origin

content in imported articles is free of duty, much like the production-sharing provisions of the United

States. For more information on production sharing in Eastern Europe see, “The Assembly Industry in

Hungary: Implications of the Use of Production Sharing in Central Europe for U.S. Industries,” USITC,

Production Sharing: Use of U.S. Components and Materials in Foreign Assembly Operations, 1993-96,

(continued...)

1-1

CHAPTER 1

OVERVIEW

Rationalization of production1 through investment in production-sharing2 operations is one

of various strategies employed by industry to reduce costs or to achieve other competitive

advantages in U.S. and third-country markets. U.S. firms have traditionally retained product

development and design, capital-intensive manufacturing, and marketing-related activities in the

United States, while shifting labor-intensive operations to countries with lower labor costs.3 Some

firms have also penetrated foreign markets by establishing local assembly operations when trade

barriers or high transportation costs inhibit direct exports of finished products from the United

States. In general, production sharing increases interdependency among plants by requiring tight

coordination between assembly plants and suppliers of components, materials, and transportation

services.

Low-cost foreign assembly often enables companies to enhance competitiveness.4 This

“foreign assembly” type of production sharing is an important competitive strategy for many U.S.

producers of goods requiring labor-intensive manufacturing processes. Companies based in the

European Union (EU) take advantage of special tariff provisions that allow duty-free entry of

goods processed outside the EU from EU-origin components and materials. Most EU production

sharing involves apparel, auto parts, and electronic products assembled in Central Europe, mainly

in the Czech Republic, Hungary, Poland, and Slovenia.5 Companies based in Japan, Korea, and
5

 (...continued)

USITC publication 3077, Dec. 1997.

6

 Strategic alliances consist of a variety of business arrangements, including joint ventures, long-term

supply agreements, shared product development costs, and joint marketing efforts.

7

 These international production networks can take many forms. See, for example, Rob van Tulder

and Winfried Ruigrok, “European Cross-National Production Networks in the Auto Industry: Eastern

Europe as the Low End of the European Car Complex,” BRIE Working Paper 121, May 1998. 

8

 For apparel entered under 9802.00.80, only the value of the U.S.-cut fabric pieces and U.S.-made

fasteners (buttons and zippers) is free of duty; under 9802.00.90, the value added in Mexico (such as labor

and overhead) is also free of duty (see the section on apparel in ch. 3 for greater detail). See app. A of this

report for a discussion of the mechanics and legal framework associated with the production-sharing tariff

provisions. For the legal text of the provisions, see ch. 98 of the HTS and applicable notes. For the

purposes of this report, statistical information on imports under HTS headings 9802.00.60, 9802.00.80,

and 9802.00.90 is combined.

1-2

Taiwan use assembly plants in China, Indonesia, Malaysia, the Philippines, and Thailand to reduce

their production costs. Production sharing has become an integral part of global efforts to reduce

manufacturing costs.

Companies typically employ a variety of often overlapping manufacturing strategies to

reduce costs or achieve other competitive advantages. These include the formation of strategic

alliances,6 product specialization, vertical integration, contracting out production, establishing

regional manufacturing centers, and closer coordination between producers and their suppliers of

components and other industrial inputs. Each of these strategies has implications for plant locations

and the cross-border flow of components, subassemblies, and final goods. The integration of

manufacturing between countries can run the spectrum from simple use of border assembly plants

to a high degree of cross-border rationalization of manufacturing operations and services. A higher

degree of integration connotes greater interdependence of operations in one country with operations

in other countries. This report will examine how these strategies and other competitive factors have

influenced manufacturing integration7 with Canada, Mexico, and the Caribbean Basin (chapter 2).

The United States implemented special tariff provisions in 1964 that encourage the use of

U.S.-origin content in foreign assembly operations. U.S. imports of goods that are assembled or

processed abroad from U.S.-made components or materials (also referred to as the U.S. content)

are eligible for a partial exemption of duty under the production-sharing provisions of subchapter

II, Chapter 98 of the Harmonized Tariff Schedule of the United States (HTS). These provisions

permit a duty exemption for the value of U.S.-made components that are returned to the United

States as parts of articles assembled abroad (HTS 9802.00.80), or for articles using U.S.-origin

metal (except precious metal) that are returned to the United States for further processing (HTS

9802.00.60). In addition, as a result of NAFTA, HTS 9802.00.90 was created to allow for the

duty-free treatment of textile and apparel products assembled in Mexico from U.S.-formed and

U.S.-cut fabric.8 During 1998, imports entered under the production-sharing provisions were

valued at $74.1 billion, accounting for 8.2 percent of total U.S. merchandise imports (table B-1). 

The value of the U.S.-made components or materials contained in these imports totaled $25.2

billion, representing 34 percent of the total value of U.S. imports entered under these provisions. 

Duty savings from use of these tariff provisions amounted to $2.0 billion (table B-17).
1-3

Scope and Organization of the Report

The current report presents recent developments in manufacturing integration with North

American and Caribbean Basin partners for key industry sectors. The use of cross-border

manufacturing in North America and the Caribbean Basin continues to increase as firms seek to

reduce costs and delivery times, and to gain greater economies by establishing manufacturing sites

closer to their intended markets or industrial customers. The report makes use of official statistics

of the U.S. Department of Commerce for total U.S. imports, exports, and trade balances and

imports under the production-sharing tariff provisions during the most recent 4-year period (1995-

98). Much of the industry- and country-specific information comes from interviews with company

officials, trade associations, trade journals, and U.S. State Department reports. 

This report series has traditionally focused on the use of foreign assembly plants by U.S.

companies to reduce costs and maintain global competitiveness, and has largely relied on imports 

entered under HTS provisions 9802.00.60-.90 to monitor trends in production-sharing operations. 

However, liberalized trade that has enabled a growing portion of U.S. imports to enter free of duty

over the past decade, and elimination of the Customs merchandise processing fee (user fee)

applicable to U.S. imports from Canada and Mexico under CFTA and NAFTA, have diminished

the incentive for importers to seek exemption from duties and the Customs user fee by entering

goods under these production-sharing tariff provisions (see “Note,” in the accompanying text box).

As a result, U.S. statistics reported under HTS 9802.00.60-.90 are increasingly underestimating

the magnitude and scope of production-sharing activity. Consequently, recent reports have made

greater use of supplemental sources of information than earlier reports to document the accelerated

pace of cross-border integration of manufacturing in North America and the Caribbean Basin. The

current report continues this trend toward more extensive use of supplemental sources.

This chapter provides information and trends based on official U.S. statistics on imports

under the production-sharing provisions, as well as information from supplemental sources.

Chapter 2 presents developments in manufacturing integration of North American partners--

Canada, Mexico, and the countries of the Caribbean Basin. Chapter 3 examines the increasing use

of cross-border manufacturing by the North American industries producing apparel, motor vehicles

and parts, and color television receivers and parts. Each of these industries has relied heavily on

cross-border manufacturing in North America or the Caribbean Basin to reduce costs and maintain

its global competitiveness. In each of these industries, production in Mexico is evolving from

simple assembly operations to higher value-added manufacturing that increasingly makes use of

vertical integration, either on site or through the clustering of industrial suppliers and customers.

These selected industries illustrate developments that are occurring as other industry sectors also

look to integrated manufacturing in North America as an effective manufacturing strategy.

Appendix A of this report explains the preferential tariff provisions applicable to

qualifying goods from the Caribbean Basin; the trade agreement status of HTS 9802.00.60 -

9802.00.90; how the production-sharing provisions relate to other preferential tariff and special

access programs; and the use and application of the Customs user fee. Appendix B contains a

variety of statistical tables that provide data with respect to U.S. imports under the productionsharing provisions for the principal supplying countries and by product category, and supplemental

tables on North American trade. Appendix C contains official statistics of the Government of

Mexico.
1-4

NOTE

Past reports in this series on U.S. production-sharing activity relied heavily on official U.S.

statistics on imports under the HTS Chapter 98 production-sharing provisions. These tariff

provisions provide a duty exemption for the value of U.S.-made components that are incorporated in

imported articles that have been assembled abroad. The domestic content of U.S. imports entered

under these production-sharing provisions is also exempt from the merchandise processing fee (the

customs “user fee” - - a 0.21 percent ad valorem fee with a $485 per entry cap).

Firms that import articles free of duty, either with an unconditional general duty rate of free

or under trade preference programs such as the North American Free-Trade Agreement (NAFTA),

which replaced the U.S. Canada Free-Trade Agreement (CFTA), or the Caribbean Basin Economic

Recovery Act (CBERA), have a greatly reduced incentive to enter those articles under the

production-sharing provisions. Since the CFTA phased out the user fee applicable to U.S. imports

from Canada qualifying as originating goods, as of January 1, 1994, and NAFTA duties were

reduced to free, only a small percentage of U.S. imports from Canada that contain U.S.-origin

components have been entered under these Chapter 98 provisions (mainly nonoriginating goods

under NAFTA). As a result, the reported use of U.S. content in the foreign production of articles for

the U.S. market is understated in U.S. statistics, particularly for imports from Canada. Nevertheless,

the examination of imports under the production-sharing provisions remains a valid and important

tool for measuring the use of U.S.-made components in assembly operations located in other U.S.

trading partners. Many importers of duty-free articles from Mexico (a principal production-sharing

partner), and certain countries in the Caribbean Basin and Southeast Asia, continue to use these

provisions because of their exemption from the user fee on the value of U.S.-origin content. 

A significant increase in the understatement of production sharing in official statistics with

regard to 1999 imports from Mexico is anticipated with the July 1, 1999, elimination of the user fee

applicable to imports from Mexico under NAFTA (0.19 percent ad valorem). Before the user fee was

eliminated, importers of duty-free Mexican products were exempt from the merchandise processing

fee on goods entered under the provisions of HTS general note 12 (concerning NAFTA) by

importing under these Chapter 98 provisions. Many companies with production-sharing operations in

Mexico whose products met the NAFTA rules of origin requirements entered their products under

both NAFTA and Chapter 98 production-sharing provisions. The value of the U.S.-origin

components contained in the imported article was free of both customs duties and the user fee under

these provisions, while the remaining value added to the assembled good in Mexico received a

preferential NAFTA duty rate but was subject to the user fee.

In 1998, 28 percent ($19 billion) of all imports that entered under NAFTA from Mexico was

also entered under Chapter 98 production-sharing provisions. As a percentage of total imports, this

represents a decline from 33 percent in 1997 mainly because more imports from production-sharing

operations are being entered under NAFTA only, particularly in the transportation and machinery

sectors, as duty rates are reduced or eliminated. For many companies, the expense of complying with

Customs record-keeping requirements for entry under the production-sharing provisions exceeded the

savings gained by exemption from the user fee. Other companies minimized user fees by entering a

number of shipments from Mexico into U.S. foreign-trade zones and then shipping a single entry for

customs purposes from the zone, thereby paying the $485 per entry cap only one time. See appendix

A for more information about the user fee and the customs treatment of goods from Mexico.
9

 Elsie Echeverri-Carroll, Industrial Restructuring of the Electronics Industry in Guadalajara,

Mexico: From Protectionism to Free Trade, Austin, TX: Bureau of Business Research of the University

of Texas at Austin, 1999.

10 Dieter Ernst, “From Partial to Systemic Globalization: International Production Networks in the

Electronics Industry,” BRIE Working Paper 98, Apr. 1997.

11 Lisa Rabon, “Getting a Piece of the Textile Pie,” Bobbin, May 1998.

12 Harley Shaiken and Stephen Herzenberg, Automation and Global Production: Automobile Engine

Production in Mexico, the U.S., and Canada, La Jolla, CA: Center for U.S.-Mexican Studies, University

of California at San Diego, 1988.

13 Tulder and Ruigrok, “European Cross-National Production Networks.”

14 Youngsoo Kim, “Technological Capabilities and Samsung Electronics’ International Production

Network in Asia,” BRIE Working Paper 106, Nov. 1997.

15 Stephen Blank, Stephen Krajewski, and Henry Yu, U.S. Firms in North America: Redefining

Structure and Strategy, North American Outlook, Washington: National Planning Association, 1995.

16 Elsie Echeverrri-Carroll, Maquilas: Economic Impacts and Foreign Investment Opportunities,

Japanese Maquilas–A Special Case, Austin: Center for Technology Venturing and IC-2 Institute, The

University of Texas at Austin, 1988; “Flexible Production and the North American Free Trade

Agreement–The Impact on U.S. and Japanese Maquiladoras,” in Elsie Echeverri-Carroll, ed., NAFTA and

Free Trade in the Americas, Austin: Bureau of Business Research of the University of Texas at Austin,

1995; and Japanese Style Networks and Innovations in High Technology Firms in Texas, Austin: Bureau

of Business Research and IC-2 Institute, The University of Texas at Austin, 1998. 

17 Francoise Lemoine, “Integrating Central and Eastern Europe in the European Trade and Production

Network,” BRIE Working Paper 107, July 1998.

18 Van Whiting, Regionalization in the World Economy: NAFTA, the Americas and Asia Pacific, San

Diego: University of California at San Diego, 1996.

19 Patricia Wilson, Exports and Local Development: Mexico’s New Maquiladoras, Austin: The

University of Texas, 1992.

20 John Zysman, Eileen Doherty, and Andrew Schwartz, “Tales from the “Global” Economy: Cross

National Production Networks and the Re-organization of the European Economy,” BRIE Working Paper

83, June 1996.

21 John Zysman and Andrew Schwartz, “Reunifying Europe in an Emerging World Economy:

Economic Heterogeneity, New Industrial Options, and Political Choices,” Journal of Common Market

Studies, Mar. 29, 1998. Also available as BRIE Working Paper 113.

22 Hummels, Ishii, and Yi, “The Nature and Growth of Vertical Specialization.”

23 Several papers of the Berkeley Roundtable on the International Economy (BRIE) use the term

(continued...)

1-5

A sampling of related research on the use of foreign plants and their integration into

corporate regional manufacturing strategies indicates the preponderant use of case studies. Because

of the difficulty in obtaining foreign trade statistics by types of manufacturing operations or by the

country of origin of components and materials incorporated in imported articles, most researchers

tend to extrapolate based on case studies of narrowly defined industries in specific regions. Trade

data on the cross-border flow of parts and finished goods tend to be supplemented with data on

investment and interviews with company officials making the investments, and with government

and business representatives of communities or countries where the investments are taking place.

Examples of research based on case studies of individual industries (usually in a particular region)

include Echeverri-Carroll9; Ernst10; Rabon11; Shaiken and Herzenberg12; Van Tulder and

Ruigrok;13 and Youngsoo.14 Studies looking at a cross section of industries within a region include

Blank, Krajewski, and Yu15; Echeverri-Carroll16; Lemoine17, Whiting18; Wilson19; Zysman,

Doherty, and Schwartz20; and Zysman and Schwartz.21 Hummels, Ishii, and Kei-Mu 22 have

developed a model to assess the impact of reductions in tariffs and transportation costs on the

worldwide use of production sharing, which they term “vertical specialization.”23 Much earlier,
23 (...continued)

“international production networks” when referring to production-sharing operations.

24 Joseph Grunwald and Kenneth Flamm, The Global Factory: Foreign Assembly in International

Trade, Washington, DC, Brookings Institution, 1985. 

1-6

Grunwald and Flamm24 also examined production sharing on a global scale, using both statistical

analysis (based on U.S. imports under the production-sharing tariff provisions) and case studies.

Overview of Aggregate Trends

! Collectively U.S. exports of all products to Canada, Mexico, and the Caribbean Basin rose

by 5 percent ($11.3 billion) in 1998 to $232.3 billion, whereas exports to other regions of

the world fell by 5 percent ($19.9 billion) to $402.4 billion (table 1-1). U.S. trade with

Canada, Mexico, and the Caribbean Basin accounted for 37 percent of total U.S. exports

in 1998 and 31 percent of U.S. imports.

! The majority of U.S. imports from Canada and Mexico that incorporate U.S.-made parts

no longer are entered under the Chapter 98 production-sharing provisions because they are

already eligible for duty-free treatment under NAFTA and other trade liberalizing WTO

agreements or trade-preference programs. Therefore, official U.S. statistics on imports

under these provisions increasingly underestimate the magnitude of production-sharing

activity. 

! The official reported value of products entered under the production-sharing provisions

declined by $5.1 billion (6 percent) in 1998 to $74.1 billion (table B-2). Similarly, the

U.S. content of imports entered under the production-sharing tariff provisions from all

countries decreased by 5 percent ($1.4 billion) in 1998 to $25.2 billion (table 1-2). This

decline was generated primarily by the drop in the value of U.S. components contained in

imports from Mexico under these provisions, which fell by 6 percent ($999 million) to

$14.5 billion, or 57 percent of the total U.S. content in imports under the productionsharing provisions.

! Imports under the production-sharing provisions continue to account for a significant

portion of U.S. trade with Mexico and certain countries of the Caribbean Basin despite a

shift by some firms to enter imports free of duty under NAFTA, CBERA, or the

Information Technology Agreement. Imports under the production-sharing provisions

accounted for 29 percent ($27.2 billion) of total imports from Mexico in 1998 (table 1-2),

compared with 63 percent each from the Dominican Republic ($2.8 billion) and Honduras

($1.6 billion). By contrast, imports reported under the production-sharing provisions

amounted to only 0.2 percent ($428 million) of total imports from Canada.
25 A variety of factors are likely to have influenced these trends, such as sustained economic growth in

the NAFTA region, technological innovations, exchange rate fluctuations, developments associated with

NAFTA and the Uruguay Round, the recent Asian financial crisis, and other market forces. Therefore,

changes in output and employment are difficult to link to any single economic development and such

analysis is beyond the scope of this report.

1-7

Table 1-1

Merchandise trade: U.S. exports of domestic merchandise, imports for consumption, and

merchandise trade balance, for NAFTA, CBERA, and other partners, 1995-98

(Million dollars)

Country/region 1995 1996 1997 1998

U.S. exports of domestic merchandise:

Canada ......................... 113,261 119,123 134,794 137,768

Mexico ......................... 44,881 54,686 68,393 75,369

CBERA ......................... 14,870 15,375 17,808 19,200

Other .......................... 373,453 392,954 422,228 402,368

 Total ......................... 546,465 582,137 643,222 634,705

U.S. imports for consumption:

Canada ......................... 144,882 156,299 167,881 174,685

Mexico ......................... 61,721 74,179 85,005 93,017

CBERA ......................... 12,550 14,545 16,572 17,124

Other .......................... 520,507 545,447 592,968 622,820

 Total ......................... 739,660 790,470 862,426 907,647

U.S. merchandise trade balance:

Canada ......................... -31,621 -37,176 -33,087 -36,918

Mexico ......................... -16,840 -19,493 -16,612 -17,648

CBERA ......................... 2,320 830 1,235 2,076

Other .......................... -147,055 -152,494 -170,741 -220,452

 Total ......................... -193,196 -208,333 -219,204 -272,942

Note.—Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.

Overview of Principal Sectors

! The cross-border integration of manufacturing in North America and the Caribbean Basin

increases trade in parts as well as finished goods. Leading examples are the industries

producing motor vehicles, apparel, and television receivers, as well as parts for these

goods (chapter 3); these sectors accounted for 33 percent of total U.S. imports from

Canada, Mexico, and the Caribbean Basin in 1998, and 24 percent of U.S. exports to these

partners (table 1-3). In each of these industries, certain capital-intensive operations remain

in the United States and Canada, while labor-intensive processes are performed in Mexico

or the Caribbean Basin. Other significant industry sectors that follow this pattern include

household appliances, telecommunications equipment, disposable medical goods,

measuring and testing equipment, electric motors, and electrical circuit apparatus.

! Employment and output trends in the United States, Canada, and Mexico (as available)

were mixed during 1995-98 for the major household appliance, automotive, television, and

apparel industries highlighted in chapters 2 and 3 (table 3-1). Producers’ shipments

increased in most sectors during 1995-98, especially in the automotive sectors. 

Employment was more variable, declining in certain sectors despite increased shipments.

All three NAFTA partners experienced significant increases in both producers’ shipments

and employment in the motor vehicle parts sector.25
1-8

Table 1-2

U.S. imports for consumption: Total and under the production-sharing provisions of HTS Chapter

98, by principal suppliers, 1995-98

(Million dollars)

Country 1995 1996 1997 1998

 Total imports

Mexico .......................... 61,721 74,179 85,005 93,017

Dominican Republic ................ 3,385 3,582 4,308 4,445

Honduras ........................ 1,441 1,797 2,320 2,544

Philippines ....................... 6,990 8,174 10,419 11,875

Malaysia ........................ 17,401 17,771 17,888 18,817

Korea .......................... 24,026 22,532 22,939 23,701

El Salvador ...................... 813 974 1,345 1,436

Costa Rica ....................... 1,842 1,963 2,322 2,742

Taiwan ......................... 28,875 29,797 32,474 32,985

Japan .......................... 122,402 114,762 120,480 121,313

All other ......................... 470,765 514,939 562,926 594,773

 Total ......................... 739,660 790,470 862,426 907,647

Production-sharing imports under HTS Chapter 98

Mexico .......................... 24,962 27,925 28,883 27,162

Dominican Republic ................ 1,965 2,104 2,669 2,806

Honduras ........................ 676 981 1,380 1,604

Philippines ....................... 1,749 1,805 2,063 2,254

Malaysia ........................ 2,778 2,382 1,911 1,831

Korea .......................... 1,798 1,787 1,881 1,601

El Salvador ...................... 497 605 912 1,023

Costa Rica ....................... 707 694 851 845

Taiwan ......................... 1,193 1,048 1,248 1,511

Japan .......................... 6,069 7,797 15,667 12,363

All other ......................... 18,486 20,388 21,700 21,067

 Total ......................... 60,880 67,514 79,167 74,068

 U.S. content of imports under HTS Chapter 98

Mexico .......................... 12,833 14,649 15,483 14,484

Dominican Republic ................ 1,278 1,365 1,737 1,766

Honduras ........................ 480 694 983 1,142

Philippines ....................... 785 773 1,058 1,129

Malaysia ........................ 1,313 1,116 930 915

Korea .......................... 600 653 755 786

El Salvador ...................... 276 344 544 592

Costa Rica ....................... 472 481 568 552

Taiwan ......................... 424 375 510 543

Japan .......................... 360 265 548 506

All other ......................... 3,289 3,249 3,450 2,798

Total ......................... 22,110 23,965 26,565 25,213

Note.—Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
26 Does not include footwear and parts, medical apparel, or textiles and textile products.

27 Provided the apparel is made from fabric manufactured and cut in Mexico, Canada, or the United

States.

1-9

Table 1-3

U.S. trade with Canada, Mexico, and the Caribbean Basin region, by leading sectors, 1998

Sector Canada Mexico

Caribbean

Basin

North

American

total Other Total

North

American

share

-------------------------------Billion dollars ------------------------------- Percentage

U.S. imports:

Motor vehicles and parts . . 49.5 23.8 (

1

) 73.3 63.6 136.9 54

Apparel ............... 1.6 6.6 8.3 16.5 37.1 53.6 31

Color television receivers

and parts ........... (

1

) 4.3 (

1

) 4.3 1.5 5.8 73

Other ................. 123.6 58.3 8.8 190.7 520.6 711.3 27

Total .............. 174.7 93.0 17.1 284.8 622.8 907.6 31

U.S. exports:

Motor vehicles and parts . . 35.6 9.8 1.5 46.9 15.7 62.6 75

Apparel ............... 0.6 2.6 3.8 7.0 1.5 8.5 82

Color television receivers

and parts ........... 0.4 1.8 0.1 2.2 1.6 3.8 59

Other ................. 101.2 61.2 13.8 176.2 383.6 559.8 31

Total .............. 137.8 75.4 19.2 232.3 402.4 634.7 37

Trade balance:

Motor vehicles and parts . . -13.9 -14.0 1.5 -26.4 -47.9 -74.3 36

Apparel ............... -0.9 -4.0 -4.5 -9.4 -35.7 -45.1 21

Color television receivers

and parts ........... 0.4 -2.5 0.1 -2.0 (

1

) -2.0 100

Other ................. -22.4 2.9 5.0 -14.5 -137.0 -151.5 10

Total .............. -36.9 -17.6 2.1 -52.4 -220.5 -272.9 19

 

1

 Less than $50 million.

Note.—Calculations are based on unrounded data.

Source: Compiled by staff of the U.S. International Trade Commission from official statistics of the U.S. Department of

Commerce.

! Apparel26 accounted for $12.9 billion (18 percent) of the total value of 1998 imports

reported under the production-sharing provisions, $8.0 billion (32 percent) of the U.S.

origin content used in foreign assembly operations, and $1.6 billion (77 percent) of the

duty savings derived from production-sharing operations (figure 1-1 and table B-3). The

high average trade-weighted rate of duty on apparel (15.8 percent ad valorem) relative to

all other products (approximately 3 percent) provided a strong economic incentive to U.S.

apparel producers to use these provisions to avoid duties on the fabric portion of apparel

imports. This situation changed on January 1, 1999, as most apparel imported from

Mexico became duty free under NAFTA27 (chapter 3).

! The phase-out of U.S. import quotas by 2005 under the WTO textile agreement will

gradually erode the preferences of CBERA countries under the GALs, possibly resulting in

a gradual shift of some assembly operations from CBERA countries to Mexico. Major

textile manufacturers also indicate that the establishment of vertically integrated

operations, as well as integrated manufacturing networks, in Mexico is likely to help those

firms recapture some of the business previously lost to Asian competitors in the North

American market.
28 In addition to NAFTA, Mexico has free trade agreements with Costa Rica, Nicaragua, Colombia,

Venezuela, Bolivia, and Chile.

1-10

! Motor vehicles and parts accounted for 28 percent ($49.5 billion) of total U.S. imports

from Canada, and 26 percent ($23.8 billion) from Mexico in 1998; as well as 26 percent

($35.6 billion) of total U.S. exports to Canada and 13 percent ($9.8 billion) to Mexico

(table 1-3). During the last 4 years, the U.S. automotive industry has experienced growth

in total trade, robust production and capacity utilization levels, and continued investment.

! U.S. and foreign automakers have accelerated the degree to which their product lines are

rationalized between Mexico and their other North American operations in response to the

market access provisions under NAFTA. These manufacturers view their Mexican

operations as an integral part of their regional and global planning strategies. Although,

the level of integration between Mexican and U.S. operations has not reached that of the

U.S. and Canadian industries, Mexico’s expansion of preferential trade agreements with

non-NAFTA trade partners provides automakers with duty-free access to more countries

from their assembly facilities in Mexico than from their plants in the United States,28

encouraging further investment in Mexico.

! The historical domination of the Mexican market for auto parts by U.S. suppliers is being

challenged as German and Japanese automakers continue to establish and expand assembly

operations in Mexico and attract similar investments from their traditional parts suppliers.

! Production-sharing operations for smaller-screen color television receivers (CTVs), located

almost exclusively in Mexico, have evolved from simple component assembly to highly
29 Television receivers imported from Mexico must incorporate a picture tube made in Mexico,

Canada, or the United States to qualify as being of North American origin and eligible for duty-free entry

into the United States under NAFTA.

30 This section highlights trends within Mexico, Canada, and the Caribbean Basin (ch. 2).

31 Companies importing machinery and components from non-North American sources for use in

assembly plants in Mexico will begin paying duties on such imports as of Jan. 1, 2001. In anticipation of

these changes, many Asian- and European-owned maquiladoras have switched to U.S. suppliers of

components and materials or have convinced non-North American suppliers to relocate to the United

States or Mexico, or establish additional production facilities in North America.

32 The Program for Temporary Importation to Manufacture Exported Products (PITEX) was

established by the Maquiladora Decree of May 3, 1990. The PITEX program was initially designed to

allow Mexican companies that were producing for both the Mexican and export markets to import

(continued...)

1-11

integrated operations that produced $3.5 billion of finished receivers in 1998, of which 90

percent was exported to the United States. These operations have permitted North

American-made televisions to maintain price competitiveness with imports from Asia

(especially Malaysia and China). Production of large-screen televisions, color picture

tubes, and certain other component parts is retained in the United States, as well as some

administrative, design, marketing, and distribution functions. Although the pace of Asian

investment (particularly Korean) in Mexican television receiver operations has recently

slowed as a consequence of the Asian financial crisis, foreign-based suppliers will likely

continue to expand production-sharing activities in Mexico to qualify for duty-free entry of

CTVs under the country-of-origin requirements of NAFTA.29

! U.S. color picture tube production is likely to remain strong and continue growing as long

as cathode-ray tubes (CRT) remain the dominant display technology. CRT technology will

likely remain the choice for smaller screen television receivers where price is the key

factor. The rising trend toward larger screen sizes will benefit U.S. production of large

screen television receivers vis-a-vis production in Mexico until new flat-panel display

technologies become dominant.

Overview of Principal Partners30

! It is believed that Canada and Mexico were the largest production-sharing partners for the

United States in 1998. The predominance of production-sharing activity in Canada is

centered around the production of motor vehicles and auto parts. U.S. imports of motor

vehicles and parts from Canada amounted to $49.5 billion in 1998 (table 1-3).

! Increased investment in maquiladora plants during the past 5 years can largely be

attributed to currency devaluations in Mexico that have further lowered the cost of

Mexican labor; provisions for duty-free U.S. imports of apparel from Mexico under HTS

heading 9802.00.90 (created by NAFTA); expansion of assembly operations in Mexico

(using U.S. components) instead of importing from Asia, to take advantage of preferential

tariff treatment under NAFTA;31 and sustained demand in the U.S. market.

! Assembly plants in the interior of Mexico are undergoing structural transformations to a

greater degree than maquiladora plants along the U.S.-Mexico border. Interior firms

registered under the Maquiladora Program or PITEX 32 tend to sell more of their
32 (...continued)

materials and machinery free of duty provided that they were used in making goods to be exported. 

Access to the Mexican market under PITEX also afforded foreign investors certain advantages (e.g., being

registered as a national supplier to the automotive industry) not originally available under the

Maquiladora Program; most foreign-owned assembly plants located in the interior of Mexico are now

registered under PITEX rather than the Maquiladora Program. PITEX companies, however, are subject to

certain taxes (such as asset taxes) in Mexico for which plants registered in the Maquiladora Program are

exempt until 2001. Assembly plants can operate only under either the Maquiladora Program or PITEX,

but not both programs.

33 Mike Patten, “Monterrey: Breweries to Maquilas,” Twin Plant News, Aug. 1999, p. 38. In sharp

contrast to the rest of the country, producers in the state of Nuevo Leon supply 25 percent of the

components and materials used by maquiladoras established in the state. The state’s maquiladoras are

concentrated around the interior city of Monterrey, the center of Mexico’s steel, glass, and cement

industry and home to Mexico’s leading university for engineering and business management.

1-12

production to the domestic Mexican market, and, consequently, are less dependent on

exporting to the U.S. market. Interior firms also tend to use more local (Mexican) sources

of components and materials than border firms, mainly in an effort to reduce transportation

costs and border delays. Nevertheless, Twin Plant News reports that nationwide, less than

2 percent of all components for maquiladora assembly are made in Mexico.33

! The countries of the Caribbean Basin accounted for $7.7 billion (10 percent) of U.S.

imports under the production-sharing provisions and for $4.9 billion (20 percent) of the

total U.S. content of entries under these provisions in 1998. Apparel accounted for 84

percent of U.S. imports under the production-sharing provisions from CBERA-eligible

countries.

! U.S. imports of apparel from Mexico and the CBERA countries exceeded the growth of 

such imports from Asia, in large part due to the elimination of tariffs and quotas on

garments and other textile articles assembled in Mexico from “fabric wholly formed and

cut in the United States,” HTS provision 9802.00.90 (created pursuant to NAFTA in

1994). Apparel imports under 9802.00.90 from Mexico rose by $983 million (23 percent)

to $5.2 billion during 1998, as the value of U.S. fabric employed in the Mexican assembly

process increased by $519 million (18 percent) to $3.4 billion. In contrast to Mexico,

CBERA countries qualify for guaranteed access levels (GALs) but importers must pay

duty on the value added to garments outside the United States. Notwithstanding this

competitive disadvantage, imports of apparel under the production-sharing provisions from

the Caribbean Basin also continued to expand, rising by $529 million (8 percent) to $6.9

billion in 1998. The U.S. content of these entries increased by $306 million (7 percent) to

$4.4 billion. 

John Cutchin

(202) 205-3396

cutchin@usitc.gov

Ralph Watkins

(202) 205-3492

watkins@usitc.gov
1

 The Tariff Schedules of the United States (TSUS), which were implemented in 1963, codified the

U.S. Customs Service practice of not applying duty to the value of U.S. components incorporated in

imported articles. Creation of this tariff provision (formerly TSUS item 807.00, now HTS subheading

9802.00.80) had the effect of encouraging use of production-sharing operations, particularly in North

America and the Caribbean Basin. The rapid growth of production sharing between the Big Three auto

makers in Detroit and affiliated companies in the Canadian Province of Ontario gave rise to the

Automotive Products Trade Act of 1965, which put into effect an agreement between the United States

and Canada to eliminate most duties on motor vehicles and parts traded between the two countries. See

U.S. International Trade Commission, The Use and Economic Impact of TSUS Items 806.30 and 807.00,

USITC publication 2053, Jan. 1988. 

2

 Mexico’s Border Industrialization Program (now the “Maquiladora” Program), which became

effective in 1965, initially limited assembly plants relying on imported components to a 10-kilometer deep

strip along the border with the United States. Components could be imported free of duty provided all of

the assembled articles were exported. Other programs, such as the 1959 Law of Industrial Promotion

implemented by the State of Jalisco, attracted foreign companies to invest in assembly plants in the

interior of Mexico to supply the national market with capital and durable consumer goods, such as

computers and photocopiers. Because of their low labor content, such goods were often more expensive to

produce in Mexico than in the United States, but the goods were manufactured in Mexico nevertheless

because of Mexico’s high tariffs. See Elsie Echeverri-Carroll, Industrial Restructuring of the Electronics

Industry in Guadalajara, Mexico: From Protectionism to Free Trade, Bureau of Business Research of the

University of Texas at Austin, 1999. 

2-1

CHAPTER 2

RECENT DEVELOPMENTS IN

MANUFACTURING INTEGRATION IN

NORTH AMERICA

Proximity helps make Canada, Mexico, and the Caribbean Basin the leading U.S.

production-sharing partners. Their proximity lessens transportation costs and reduces delivery

times, while facilitating business exchanges and operational oversight.

Relatively low labor costs and high tariffs associated with import substituting development

policies provided U.S. companies with incentives to establish the initial production-sharing

operations in Canada and Mexico in the 1960s. By manufacturing locally, U.S. firms could avoid

tariffs and other import barriers in their efforts to supply these markets. In Canada, lower-cost

labor at these same facilities could reduce manufacturing costs, encouraging the export of surplus

production back to the United States.1 In Mexico, however, companies established plants in the

interior of the country (particularly in Guadalajara) to supply the domestic market, while using

assembly plants along the border to reduce manufacturing costs for products destined for the U.S.

market.2 U.S. firms with assembly plants in Canada and Mexico initially imported a substantial

portion of their industrial inputs from the United States, for which import barriers tended to be less

restrictive than those for finished goods. Investors in certain sectors in Mexico, such as motor

vehicles, also faced local content and export performance requirements. In such cases, U.S.
3

 See tables C-1 and C-2 for official Mexican statistics on Mexico’s exports to the United States in

1998, including separate statistics on exports by companies registered under Mexico’s two export

processing programs, Maquiladora and PITEX. References to the “maquiladora industry” or

“maquiladoras” throughout this report encompass companies registered under either program. Both

programs are governed by Mexico’s Maquiladora Decree.

4

 Seymour J. Rubin and Dean C. Alexander, “NAFTA and Investment,” Kluner Law International,

1995, p. 43. Despite these efforts, less than 2 percent of components for the maquiladora industry are

produced in Mexico from local materials. Mike Patten, “Monterrey, A Closer Look: Breweries to

Maquilas,” Twin Plant News, Aug. 1999, p. 36.

5

 Sidney Weintraub, “Industrial Integration Policy: A U.S. Perspective,” in Weintraub, ed., U.S.-

Mexican Industrial Integration: The Road to Free Trade, 1991, p. 55.

6

 Prior to this 1989 change in the Maquiladora Decree, companies operating as maquiladoras were

required to export all of their production and could not sell assembled articles to customers in Mexico,

including other maquiladora operations.

2-2

companies invested in the development of local suppliers and/or persuaded suppliers based in the

United States to establish manufacturing subsidiaries in Mexico.

Low labor costs and relative proximity to the textile mills of the Southeastern United

States and to U.S. apparel markets were the key factors leading U.S. producers of apparel to

establish sewing operations in the Caribbean Basin region. Apparel continues to dominate U.S.-

Caribbean Basin trade in manufactured goods, with the United States exporting cut, ready-to-sew

fabric, and importing finished garments. This chapter examines recent developments in trade in

manufactured goods between the United States and its leading production-sharing partners.

Mexico

Mexico is the leading production-sharing partner for U.S. industry, with imports from

Mexico under HTS provisions 9802.00.60-.90 amounting to $27.2 billion in 1998 (table 1-2).3 The

maquiladora industry in Mexico is evolving from primarily low-wage, labor-intensive, assembly

plants to an increasingly sophisticated manufacturing sector well integrated with corporate

affiliates, suppliers, and customers in the United States and Canada.

Trends Encouraging Cross-Border Integration

Liberalized foreign investment laws associated with Mexico’s accession to the GATT in

1990 have facilitated the establishment of foreign assembly plants in the interior of Mexico and 

provided greater access to the emerging Mexican market. Part of the aim of the Mexican

Government’s new policies was to increase sales of Mexico-made industrial inputs to the

maquiladora sector, especially steel mill products, automotive parts, and electrical components 

produced in the interior of Mexico.4 Changes in the Maquiladora Decree in 1989 also enabled 

maquiladora plants to sell a portion of their production to customers in Mexico. This new access

to the Mexican market became an important element of marketing and manufacturing strategies of 

many U.S. and other foreign companies--even before NAFTA.5 Further, the legalization of

intramaquiladora trade6 led foreign companies with assembly operations in Mexico to encourage

foreign suppliers to establish production facilities near their Mexican plants and facilitated the

development of integrated manufacturing clusters. Prior to NAFTA, these firms, as well as others
7

 Stephen Blank and Jerry Haar, Making NAFTA Work, North-South Center Press, 1998. 

8

 NAFTA provides that, effective Jan. 1, 2001, firms operating under Mexico’s Maquiladora Decree

(which cover both the Maquiladora Program and PITEX) will no longer be able to import components and

materials free of duty, even if the resulting product is exported. This change to the Maquiladora Decree

was timed to coincide with the elimination of duty-drawback for both the United States and Mexico with

regard to products qualifying for duty preference under NAFTA. Companies that manufacture/assemble

goods in Mexico for the U.S. market will have to pay a duty on imported industrial inputs that are not of

North American origin; that duty is based on the higher of the U.S. or Mexican tariff rates. See U.S.

International Trade Commission, “Implications of the North American Free Trade Agreement for

Mexico’s Maquiladora Industry and Use of the Production Sharing Provisions,” in Production Sharing:

U.S. Imports Under Harmonized Tariff Schedule Provisions 9802.00.60 and 9802.00.80, 1989-1992,

USITC Publication 2729, Feb. 1994.

9

 David W. Eaton, “Transformation of the Maquiladora Industry--The Driving Force Behind the

Creation of a NAFTA Regional Economy,” National Law Center for Inter-American Free Trade, 1997. 

10 See table C-3 for imports by companies operating under Mexico’s Maquiladora and PITEX

Programs in 1998.

2-3

that had invested in Mexico to avoid Mexico’s trade barriers still tended to view Mexico and the

United States as distinct national markets, with many companies producing a wide range of

products in each country.7

NAFTA accelerated the process of integration even before the agreement came into force.

The most important effect was psychological, creating a popular vision that North America is one

market. Many U.S. business leaders interpreted U.S. Government endorsement of the agreement as

a signal that it was financially safe to invest in Mexico. On a more practical level, NAFTA reduced

the cost of doing business in Mexico by lowering tariffs on imported manufacturing inputs and

products destined for the local market. Liberalized foreign investment laws under NAFTA meant

more competition, lower prices, and the development of local (albeit foreign-owned) suppliers.

NAFTA also gave the maquiladora industry increased access to the Mexican market, with an

amount equivalent to 80 percent of a company’s previous year’s production level eligible for sale

in the domestic market in 1999. NAFTA’s rules of origin and the scheduled termination of duty

drawback on January 1, 2001,8 combined to provide an incentive for maquiladora managers to find

North American suppliers of components to replace imported inputs from Europe and Asia, again

leading to greater integration of North American manufacturing industries. These changes to the

Maquiladora Program are regarded by some as the first step in the creation of a North American

regional economy involving the increased integration of production assets between parent

companies and their foreign assembly plants.9 

Measures of Integration

Mexico was the second-largest market for U.S. exports in 1998 ($75.4 billion). U.S.

exports to Mexico consisted largely of intermediate goods and capital equipment (electrical

products and electronic equipment, transportation equipment, and industrial machinery) primarily

intended for the maquiladora industry and, to a lesser extent, the domestic manufacturing sector in

Mexico oriented toward the local market.10 

According to statistics of the U.S. Department of Commerce, U.S. imports from Mexico

(primarily motor vehicles and parts, electrical/electronic products and components, and apparel)

grew by $8.0 billion (9 percent) in 1998 to $93 billion (table 2-1). This increase in imports in
2-4

Table 2-1

Mexico: U.S. exports of domestic merchandise, imports for consumption, and merchandise trade

balance, by industry sector, 1995-98

(Million dollars)

Industry sector 1995 1996 1997 1998

U.S. exports of domestic merchandise:

Certain motor-vehicle parts1................... 5,911 5,824 7,833 7,586

Motor vehicles ............................. 362 1,159 1,938 2,259

Apparel .................................. 1,356 1,688 2,189 2,583

Computer hardware ......................... 1,188 1,947 2,479 2,441

Electrical circuit apparatus .................... 1,932 2,424 2,944 3,062

Radio transmission and reception apparatus ...... 512 492 704 755

Measuring, testing, and controlling instruments .... 874 778 1,098 1,178

Color television receivers and parts ............. 902 1,218 1,476 1,780

Major household appliances ................... 151 198 284 335

All other .................................. 31,693 38,958 47,448 53,390

 Total .................................. 44,881 54,686 68,393 75,369

U.S. imports for consumption:

Certain motor-vehicle parts1................... 7,247 8,144 9,617 10,563

Motor vehicles ............................. 8,386 11,714 12,270 13,225

Apparel .................................. 2,658 3,663 5,140 6,586

Computer hardware ......................... 1,918 3,061 4,655 5,448

Electrical circuit apparatus .................... 1,722 1,817 2,143 2,369

Radio transmission and reception apparatus ...... 1,259 1,337 1,795 2,003

Measuring, testing, and controlling instruments .... 1,290 1,291 1,562 1,965

Color television receivers and parts ............. 3,278 3,456 3,562 4,265

Major household appliances ................... 191 236 276 300

All other .................................. 33,772 39,460 43,985 46,293

 Total .................................. 61,721 74,179 85,005 93,017

U.S. merchandise trade balance:

Certain motor-vehicle parts1................... -1,336 -2,320 -1,784 -2,977

Motor vehicles ............................. -8,023 -10,554 -10,332 -10,965

Apparel .................................. -1,302 -1,975 -2,951 -4,002

Computer hardware ......................... -729 -1,114 -2,176 -3,007

Electrical circuit apparatus .................... 210 607 801 694

Radio transmission and reception apparatus ...... -747 -845 -1,091 -1,248

Measuring, testing, and controlling instruments .... -416 -513 -464 -787

Color television receivers and parts ............. -2,376 -2,238 -2,086 -2,485

Major household appliances ................... -40 -38 8 35

All other .................................. -2,079 -502 3,463 7,097

 Total .................................. -16,840 -19,493 -16,612 -17,648

 

1

 The products covered in this group include body stampings, engines and parts, bumpers, brakes and

parts, gear boxes, axles, wheels, shock absorbers, radiators, exhaust systems, clutches, steering wheels,

wiring harnesses, seats and parts, and miscellaneous parts and accessories. The category “certain motorvehicle parts” in the tables in app. B does not include engines and parts, wiring harnesses, or seats and

parts.

Note.—Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
11 ITC staff interview with Lucinda Vargas, Senior Economist, El Paso Branch, Federal Reserve Bank

of Dallas, Dec. 10, 1999.

12 Motor vehicle clock radios and radio/tape and/or CD player combinations accounted for the bulk

(66 percent) of U.S. imports from Mexico in the product grouping “radio transmission and reception

apparatus,” with imports of all products in this grouping valued at $2.0 billion in 1998 (table 2-1). Other

significant products included in this grouping were printed circuit assemblies for radio, television, and

navigational apparatus (12 percent of group imports from Mexico in 1998), and paging receivers (11

percent). 

2-5

part reflects a continued shift of labor-intensive apparel and electronic assembly operations to

regions in Mexico with lower labor costs.11

The number of companies reported to be operating under the Maquiladora Program has

grown from 2,122 plants when NAFTA came into force in 1994, to 3,185 plants during the first

quarter of 1999. Although currency devaluations that have lowered labor costs in Mexico,

proximity to the U.S. market, and a strong U.S. demand for the types of goods assembled in the

maquiladora industry remain the major factors that have accelerated the growth of the maquiladora

industry, several emerging trends have also assisted this growth. These trends include: (1) new

investment in supplier facilities to support more integrated maquiladora trade, (2) the gradual

expansion of consumer demand in Mexico, and (3) growing exports to Latin American countries

with which Mexico has negotiated free-trade agreements.

Investment is another measure of cross-border integration. U.S. direct investment in

Mexico on a historical cost basis amounted to $25.9 billion in 1998, up 7 percent over the total in

1997 (table 2-2). However, investment in Mexico was about one-quarter the size of U.S.

investment in Canada in 1998 ($103.9 billion). 

Examples of Integration, Including Major Household Appliances

The leading examples of the integration of manufacturing between the United States and

Mexico involve motor vehicles and their parts, apparel, and color television receivers and parts, as

discussed in chapter 3. These sectors accounted for 37 percent of U.S. imports from Mexico in

1998 and 19 percent of U.S. exports to Mexico (table 1-3). Other U.S. industries making

significant use of assembly facilities in Mexico include computer hardware; radio transmission and

reception apparatus;12 electrical circuit apparatus; and measuring, testing, and controlling

instruments (table 2-1). Collectively, these industries accounted for 13 percent of U.S. imports

from Mexico in 1998.

Major household appliances is a relatively small trading sector, accounting for less than

1 percent ($300 million) of 1998 U.S. imports from Mexico. Nonetheless, the production of such

appliances is emerging as one of Mexico’s fastest growing industries, and is one of many sectors

experiencing cross-border integration of manufacturing operations. The U.S. trade balance with

Mexico in the major household appliance sector shifted from a deficit of $40 million in 1995 to a

$35 million surplus in 1998. Production in Mexico primarily takes place in the interior of the

country in the major household appliance “clusters” of Monterrey, San Luis Potosi, Puebla, and

Queretaro. Leading U.S. household appliance producers Whirlpool Corporation and General

Electric (GE), as well as Korean producers Daewoo and Samsung, have established production in

these cities to benefit from an inexpensive and readily available labor supply and the rapidly
13 Joel Millman, “Mexico Builds a Home-Appliance Bonanza,” Wall Street Journal, Aug. 23, 1999, p.

A-12.

14 The other leading companies that produce major household appliances in North America are

Amana and Maytag, neither of which have production facilities or joint ventures in Mexico.

15 Whirlpool makes its higher quality refrigerators in Evansville, IN.

16 ITC staff interview with Juan Bendick Lopez, Gerente Efectividad Organizacional, Supermatic,

S.A. de C.V., Apodaca, Nuevo Leon, Mexico, June 19, 1997.

2-6

Table 2-2

U.S. direct investment abroad (USDIA) on a historical cost basis: Canada, Mexico, and selected

Caribbean Basin countries, 1995-98

(Million dollars)

Country 1995 1996 1997 1998

Canada ....................... 83,498 89,592 96,031 103,908

Mexico 16,873 19,351 24,181 25,877

Costa Rica ..................... 921 1,223 1,544 2,126

Dominican Republic. ............. 330 400 476 535

Guatemala ..................... 233 331 357 429

Honduras ...................... 68 129 183 186

All other ....................... 597,092 684,169 742,759 847,504

 Total (all countries) ............ 699,015 795,195 865,531 980,565

Note.—According to the Bureau of Economic Analysis, foreign direct investment is investment in which a resident

of one country obtains a lasting interest in, and a degree of influence over the management of, a business

enterprise in another country. In the United States, the criterion used to distinguish USDIA from other types of

investment abroad is the ownership, by one U.S. resident, of at least 10 percent of a foreign enterprise.

Source: International Accounts Data, U.S. Direct Investment Abroad, Bureau of Economic Analysis, found at

Internet address: http://www.bea.doc.gov/bea/di/dia-cty.htm, retrieved Aug. 16, 1999.

developing growth of the domestic market.13 Japan-based Sanyo has also integrated its North

American production, employing the “twin plant” concept with complementary facilities a few

miles apart from each other on either side of the U.S.-Mexico border near San Diego.14

Joint Ventures

Whirlpool’s joint-venture with Mexican glass conglomerate Vitro Corp., of Monterrey,

Mexico, (Supermatic) primarily involves manufacturing a line of predominantly small household

refrigerators (19 cubic feet or under) and low-end washers and dryers for the highly price

competitive segment of the U.S. market. Production of larger sized refrigerators (larger than 19

cubic feet) and higher quality washers and dryers remains in the United States and Canada.15

According to an official of the joint venture, the U.S. appliance industry was experiencing growing

competition from small, low-priced refrigerators imported from Asia when Whirlpool entered into

the joint venture with Vitro in 1989. For Whirlpool, the alternative to shifting production of smaller

refrigerators to Mexico was to cease producing refrigerators entirely because the company could

not produce smaller refrigerators at competitive prices in the United States and could not stay in

business producing only top-of-the-line refrigerators.16 Both the smaller Mexican-made appliances

and the larger, more sophisticated U.S.-made appliances are sold in the United States and Canada

through Whirlpool’s distribution network, including private-label customers, and in Mexico

through Vitro’s distribution network. Whirlpool also supplies the Central American market from
17 William Marohn, executive vice president, North American Appliance Group, quoted in Anne

Henry, “The Consolidation Story,” Appliance, June 1991, W-83.

18 ITC staff interviews with Fernando Fernandez M., vice president, Corporate Quality, Vitro

Household Products Division, and Bendick, Supermatic, Apodaca, Nuevo Leon, Mexico, June 19, 1997. 

Less sophisticated appliances made by Vitro for the Mexican market use fewer components from the

United States.

19 Danfloss has significant production facilities in the United States as well. Certain parts, however,

are made exclusively in Denmark. 

20 Vitro has its own injection molding facility. The machinery there was made in the United States. 

21 Prior to its joint venture with Whirlpool, Vitro used Mexican-made steel. U.S. steel is of better

quality for the appliance industry. Local mills in Monterrey specialize in steel for housing and

infrastructure construction markets.

22 Bendick, Supermatic, June 19, 1997.

23 ITC staff interview with Bendick, Supermatic, and Juan Jose Galindo, Gerente de Relaciones

Publicas, Vitromatic Comercial, S.A. de C.V., Apodaca, Nuevo Leon, Mexico, June 19, 1997.

24 ITC staff interviews with Fernandez, Vitro, June 19, 1997; and Myung Jun Kim, General

Manager/Import and Export Department, Daewoo Electronics, Home Appliance de Mexico, S.A. de C.V.,

May 18, 1998.

2-7

its joint venture with Vitro. Additionally, Whirlpool’s Canadian, U.S., and Mexican management

and marketing structure was consolidated 

into a North American Appliance Group (NAAG). The primary objective of the company’s NAAG

was to improve manufacturing efficiency, gain economies of scale, and improve the cost

effectiveness in all of its North American operations.17

Vitro officials indicated that although Whirlpool encouraged suppliers to establish local

production facilities near its joint venture appliance assembly plants in the Monterrey area, about

80 percent of the components used in the assembly process were imported, with almost all coming

from the United States.18 Suppliers that did establish assembly plants near the Vitro complex

include Emerson Electric (electric motors) and Danfloss (refrigeration compressors). Each imports

parts from its parent company in the United States and in Denmark,19 respectively. Materials

imported from the United States for use in the manufacture of refrigerators and washers include

raw plastics20 and steel.21 U.S.-made components used in Vitro’s assembly of appliances include

automatic defrosters, refrigeration compressors, control boards, wheels, aluminum tubing and

condensers, plastics tops, and shelving.22 Key Mexican-made inputs include polyurethane foam,

certain plastics, and small steel parts. Some compressors are purchased from Whirlpool’s joint

venture in Brazil (Embraco). Solenoids are imported from Korea. According to Vitro officials,

NAFTA reduced the company’s costs for importing components from the United States and

enabled appliances from the Vitro/Whirlpool venture to be of higher quality and more affordable

for Mexican consumers.23

Diminishing profit margins in the mature U.S. market, the growth potential of the Mexican

market, and the desire to keep up with rival Whirlpool led GE to form an alliance with Mexican

appliance manufacturer MABE in 1990. The GE/MABE joint venture manufactures gas ranges in

San Luis Potosi and Queretaro and is reported by its competitors to be the largest supplier of gas

ranges to both the U.S. and Mexican markets.24 GE supplies small refrigerators to the entire North

American market from its joint-venture facility in Celaya, Guanajuato, and large, side-by-side

refrigerators from its plant in Ft. Smith, Arkansas. The GE/MABE strategic alliance in Mexico has

also led parts suppliers (e.g., Gemtron Corp. of Sweetwater, Tennessee) to establish assembly

plants in San Luis Potosi to provide GE/MABE with essential appliance components. Such

investments, and efforts by certain Mexican steel makers to address the needs 
25 Joel Millman, “Mexico Builds a Home-Appliance Bonanza,” Wall Street Journal, Aug. 23, 1999, p.

A12.

26 Fernandez Vitro, June 19, 1997; and Kim, Daewoo, May 18, 1998.

27 Based on ITC staff interviews with Alan Foster, Manager for Administration & Operations, and

Charles D. La Pointe, Production Manager, Sanyo E & E Corp., San Diego, CA, June 1987, and updated

with follow-up discussions. 

28 The United Kingdom accounts for the largest share of U.S. FDI with $178.6 billion in 1998. In

rank order, Canada was followed by the Netherlands ($70.3 billion), Germany ($39.2 billion), Bermuda

($41.1 billion), France ($39.2 billion), and Japan ($38.2 billion). U.S. Direct Investment Abroad, Bureau

of Economic Analysis, International Data, found at http://www.bea.doc.gov/bea/di/dia-ctry.htm; retrieved

Aug. 16, 1999.

2-8

of the major household appliance industry, have contributed to the reported decline in the share of

U.S.-made parts used in the assembly of GE/MABE appliances in Mexico from 84 percent in 1997

to 70 percent in 1999.25

Asian Investors

Most of the appliances manufactured by Daewoo and Samsung in Mexico are sold in the

Mexican market or exported to Central and South American countries with which Mexico has freetrade agreements. Reportedly, only a small portion is exported to the United States.26 Daewoo

imports refrigeration compressors from Korea, and only a small share of the industrial inputs used

by Daewoo is imported from the United States.

In contrast to Korean-based appliance producers in Mexico, Sanyo relies heavily on U.S.-

made parts in its North American facilities. Sanyo makes freezers in Indiana, medium-sized

refrigerators in San Diego (Otay Mesa), and minirefrigerators in Tijuana. U.S.-made parts are sent

to Sanyo/Tijuana for assembly into electronic products and wiring harnesses that are used in

refrigerator assembly in both Tijuana and San Diego. U.S. steel and certain other U.S.-origin

industrial inputs go directly from U.S. vendors to the San Diego and Tijuana plants. Motors for

both plants are sourced from maquiladora vendors that assemble the motors in Mexico from U.S.

parts. Compressors are the only significant components used in Sanyo’s refrigerator assembly

plants that are imported from Asia.27

Ruben Mata

(202) 205-3403

rmata@usitc.gov

Canada

 High levels of both sectoral two-way trade and foreign direct investment indicate

continued cross-border integration and rationalization of production between the United States and

Canada, as well as a deepening interdependence of manufacturing industries. Canada was the

second-leading destination for U.S. direct investment at $103.9 billion in 1998 (table 2-2),28 with

the manufacturing sector accounting for $46.0 billion of the total. About 40 percent of the assets of

Canadian manufacturing companies are foreign-owned; of this total, about 75 percent are
29 U.S. Department of State, Canada: Economic Policy and Trade Practices Report 1997, submitted

to the Senate Committees on Foreign Relations and on Finance, and to the House Committees on Foreign

Affairs and Ways and Means, on Jan. 1998, p.1(latest data available).

2-9

owned by U.S. firms.29 Motor vehicles, aircraft, rail locomotives and rolling stock, computer

hardware, semiconductors, and telephone equipment provided the bulk of U.S. production-sharing

trade with Canada. U.S.-based companies account for a significant share of Canadian production

in four of these six sectors.

Proximity of the U.S. and Canadian industrial heartlands, well-developed infrastructures,

and transparent legal systems all contribute to the highly integrated nature of the U.S. and

Canadian economies. In turn, this integration contributes to a high level of trade as each country is

the other’s largest foreign market and leading supplier of imported goods. Canada accounted for

22 percent ($137.8 billion) of all U.S. exports in 1998 and 19 percent ($174.7 billion) of all U.S.

imports (table 1-3).

Motor vehicles and parts accounted for $85.0 billion (28 percent) of total U.S.-Canada

trade in 1998. The United States had a $10.4 billion trade surplus with Canada in motor vehicle

parts in 1998, but a $24.3 billion deficit in finished vehicles (table 2-3). See chapter 3 for more

discussion regarding production-sharing trade in motor vehicles and parts. 

U.S. trade in aircraft with Canada ($7.9 billion, or 3 percent of total U.S.-Canada trade in

1998) is primarily in commuter jets and aircraft engines and parts. Bombardier Aerospace Group--

North America, which includes Canadair and de Havilland, is a world leader in the production of

commuter jets. Bombardier operates 10 manufacturing and services facilities in Canada and a total

of 7 facilities in the United States and Germany. U.S.-based Boeing has three production facilities

in Canada that manufacture airplane wings and components.

 Bombardier is also a major manufacturer of passenger railcars, and operates an assembly

facility for mass transit cars in Vermont that was established to qualify the company for transit

authority contracts under “Buy America” clauses. The heavier production operations (such as

fabrication of the shells and attaching large parts and subassemblies) are performed in Quebec,

with final assembly and finishing operations performed in Vermont. A substantial portion of the

parts used in the assembly process in Quebec are of U.S. origin. For other rail products, General

Motors’ Electromotive Division (EMD) performs final assembly of its locomotives at its plant in

London, Ontario. The headquarters administration, engineering, and parts manufacturing are in

LaGrange, Illinois. U.S. exports of rail locomotives and rolling stock and related parts to Canada

totaled $1.0 billion in 1998, and U.S. imports from Canada, $1.4 billion. 

As Canada does not have a large semiconductor fabrication industry, U.S. content

comprised a substantial share of the $2.3 billion in U.S. imports of semiconductors from Canada in

1998. IBM fabricates semiconductor chips in facilities in the United States and performs final

assembly in Bromont, Quebec. U.S. semiconductor trade with Canada amounted to $4.9 billion in

1998, with the United States maintaining a bilateral trade surplus of $406 million.

U.S.-Canada trade in telephone and telegraph apparatus totaled $3.4 billion in 1998, of

which U.S. imports exceeded exports by $715 million. The high level of integration between the

two countries in this sector is evident from the large share of trade comprised of parts, which

accounted for 44 percent of U.S. telephone apparatus exports to Canada and 48 percent of U.S.
2-10

Table 2-3 

Canada: U.S. exports of domestic merchandise, imports for consumption, and merchandise trade

balance, by sector and digest groupings, 1995-98

(Million dollars)

Sector 1995 1996 1997 1998

U.S. exports of domestic merchandise:

Motor vehicles ........................... 11,306 12,039 14,213 13,379

Certain motor-vehicle parts1................. 18,568 18,952 21,057 22,195

Computer hardware ....................... 4,771 5,019 5,404 5,158

Aircraft, space craft, and related equipment ..... 1,303 1,455 1,432 1,667

Textiles, apparel, and footwear ............... 2,749 2,933 3,411 3,539

Semiconductor devices .................... 2,376 2,666 2,767 2,666

Telephone and telegraph apparatus ........... 1,159 1,580 1,284 1,348

Aircraft engines and gas turbines ............. 871 1,158 1,341 1,412

Rail locomotive and rolling stock ............. 554 428 711 1,010

Molds and molding machinery ............... 444 463 523 664

Miscellaneous machinery ................... 1,034 1,111 1,212 1,040

Electrical circuit apparatus .................. 2,058 2,144 2,119 2,179

All other ................................ 66,070 69,174 79,320 81,511

 Total ................................ 113,261 119,123 134,794 137,768

U.S. imports for consumption:

Motor vehicles ........................... 33,236 33,676 35,884 37,671

Certain motor-vehicle parts1................. 9,008 10,202 11,018 11,802

Computer hardware ....................... 4,057 3,450 3,497 3,545

Aircraft, space craft, and related equipment ..... 1,482 2,191 2,738 3,473

Textiles, apparel, and footwear ............... 2,107 2,520 2,962 3,297

Semiconductor devices .................... 1,695 2,104 2,247 2,260

Telephone and telegraph apparatus ........... 1,292 1,756 1,909 2,064

Aircraft engines and gas turbines ............. 1,023 1,153 1,159 1,396

Rail locomotive and rolling stock ............. 887 908 890 1,380

Molds and molding machinery ............... 1,580 1,208 1,136 1,131

Miscellaneous machinery ................... 730 782 886 1,094

Electrical circuit apparatus .................. 944 940 1,039 1,032

All other ................................ 86,840 95,408 102,516 104,540

 Total ................................ 144,882 156,299 167,881 174,685

U.S. merchandise trade balance:

Motor vehicles ........................... -21,931 -21,637 -21,671 -24,293

Certain motor-vehicle parts1................. 9,560 8,750 10,039 10,393

Computer hardware ....................... 713 1,569 1,907 1,614

Aircraft, space craft, and related equipment ..... -179 -736 -1,306 -1,806

Textiles, apparel, and footwear ............... 641 413 449 242

Semiconductor devices .................... 681 562 520 406

Telephone and telegraph apparatus ........... -133 -176 -625 -715

Aircraft engines and gas turbines ............. -152 5 182 16

Rail locomotive and rolling stock ............. -333 -479 -179 -370

Molds and molding machinery ............... -1,137 -745 -613 -467

Miscellaneous machinery ................... 304 329 326 -55

Electrical circuit apparatus .................. 1,114 1,205 1,080 1,147

All other ................................ -20,770 -26,234 -23,196 -23,029

 Total ................................ -31,621 -37,176 -33,087 -36,918

 

1

 The products covered in this group include body stampings, engines and parts, bumpers, brakes and parts,

gear boxes, axles, wheels, shock absorbers, radiators, exhaust systems, clutches, steering wheels, wiring

harnesses, seats and parts, and miscellaneous parts and accessories. The category “certain motor-vehicle parts”

in the tables in app. B does not include engines and parts, wiring harnesses, or seats and parts.

Note.—Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
30 Transmission equipment produces, amplifies, or transmits signals. Switching equipment directs

phone calls or data from one point to another. Modems convert voice (analog) signals to digital signals

and vice versa.

31 The telephone and telegraph apparatus sector is a subset of the more comprehensive

telecommunications equipment industry.

32 Northern Telecom, Northern Telecom: At Work in the United States, 1995, p. 7.

33 The Caribbean Basin includes countries and territories or successor political entities designated as

beneficiary countries for purposes of the Caribbean Basin Economic Recovery Act (CBERA), including

Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, British Virgin Islands, Costa Rica, Dominica,

Dominican Republic, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Montserrat,

Netherlands Antilles, Nicaragua, Panama, St. Kitts and Nevis, Saint Lucia, Saint Vincent and the

Grenadines, and Trinidad and Tobago. These entities are eligible for preferential U.S. duty treatment

under the CBERA and are designated by the President (see HTS general note 7(a)). The impact of imports

under CBERA on the United States is the subject of a series of annual reports by the Commission; see

Caribbean Basin Economic Recovery Act and Andean Trade Preference Act: Impact on the United States,

USITC publication 3234, Sept. 1999.

34 Although most semiconductors have entered free of duty under the Semiconductor Agreement since

1987, the bound rate of duty was not reduced to “Free” until 1999. Information technology products will

become free of duty Jan. 1, 2000.

2-11

sector imports in 1998. Sector imports and exports also consisted largely of transmission and

switching equipment, as well as modems.30 Nortel Networks (Nortel), the dominant Canadian

telecommunications equipment31 manufacturer, has operated production facilities in the United

States since 1972 and currently produces a variety of telecommunications products at several U.S.

locations.32 Nortel originally invested in manufacturing plants in the United States to qualify for

contracts that contained a “Buy America” clause, which were common in public utility supply

contracts at the time. Nortel subsequently expanded its U.S. presence to serve the rapidly growing

U.S. market for telecommunications equipment. Although Nortel has recently restructured its

worldwide operations to reduce its vertical integration and increase its reliance on contract

manufacturers, company officials indicate it will continue to produce telecommunications

equipment in the United States, Canada, and Mexico.

Josephine Spalding

(202) 205-3498

spalding@usitc.gov

The Caribbean Basin33

The bulk of goods manufactured in the Caribbean Basin region for export markets are assembled

or sewn in export-processing zones. The components and production equipment used in the

manufacturing processes are imported free of duty provided that the assembled articles are

exported. Most of the industrial inputs are imported from the United States. Nearly all assembled

goods exported to the United States enter at reduced duties or free of duty either under the

Caribbean Basin Economic Recovery Act (CBERA) or under the production-sharing provisions of

HTS Chapter 98. Other articles, particularly information technology products and semiconductors,

enter unconditionally free of duty under the general or normal trade relations (NTR) column-1

rate.34 The tabulation below shows that 1998 imports under the production-sharing tariff

provisions accounted for 45 percent of U.S. imports from CBERA-eligible countries, whereas

imports under CBERA accounted for 18 percent.
35 Significant growth in U.S. imports of certain electronic products offset a $17 million decline in

apparel imports from Costa Rica.

2-12

Entry status Value (million dollars) Percent of total in 1998

Production-sharing provisions ........ 7,731 45

CBERA ......................... 3,161 18

Generalized System of Preferences .... 195 1

Other duty free .................... 3,923 23

Other dutiable .................... 2,650 15

 Total imports1................ 17,124 100

 

1

Imports valued at $536 million entered under both HTS 9802.00.80 and CBERA in 1998. “Totals” are adjusted to avoid

double counting. See USITC, CBERA, Sept. 1999, pp. 19f.

Although total U.S. imports from CBERA-eligible countries increased by an average annual rate

of 15 percent during 1995-97, the rate of expansion slowed to 3 percent in 1997-98 (table 2-4).

Among the leading suppliers of all U.S. imports from CBERA countries in 1998, Costa Rica

registered the largest and fastest rate of growth among principal suppliers, with imports increasing

by 18 percent ($420 million) to $2.7 billion in 1998.35 The U.S. content of imports under the

production-sharing provisions was $4.9 billion, or 29 percent of total imports from CBERA

countries.

Table 2-4

Caribbean Basin1: U.S. imports for consumption, by leading sources, 1995-98

(Million dollars) 

Source 1995 1996 1997 1998

Dominican Republic ........... 3,385 3,582 4,308 4,445

Costa Rica .................. 1,842 1,963 2,322 2,742

Honduras ................... 1,441 1,797 2,320 2,544

Guatemala .................. 1,515 1,694 1,984 2,071

El Salvador ................. 813 974 1,345 1,436

Trinidad and Tobago .......... 1,068 1,345 1,105 974

Jamaica .................... 838 828 721 736

Nicaragua .................. 238 349 439 453

All other .................... 1,411 2,012 2,028 1,724

 Total .................... 12,550 14,545 16,572 17,124

 

1

 Includes only those Central American and Caribbean Countries and other political entities that are eligible

under CBERA.

Note.—Because of rounding, figures may not add to the totals shown.

Source: Compiled from official statistics of the U.S. Department of Commerce.
36 Includes apparel of textile materials, such as cotton, wool, manmade fiber, or silk fabrics, and

nontextile materials, such as fur, leather, and plastics. Excluded are nonwoven (disposable) garments.

37 Costa Rica also supplied 92 percent of imports of semiconductor devices from CBERA countries in

1998.

38 U.S. industry representatives, telephone interviews by USITC staff, July 28, 1997.

39 This has particularly had an effect on major suppliers of commodity hospital supplies such as

bougies, catheters, drains, disposable surgical trays, and blood transfusion and collection equipment. 

However, such cost pressures have also affected producers of certain more specialized respiratory, dental,

and electrodiagnostic equipment. Products imported under production-sharing provisions from the

Dominican Republic include blood and plasma transfusion products, blood collection sets, solution

administration sets, sterile feeding tubes, and certain dental supplies. Representatives of Dominican

Republic subsidiaries of U.S. companies, telephone interviews by USITC staff, June 16, 1997.

2-13

Among the leading manufactured goods imported from the region, apparel36 accounted for

$8.3 billion (49 percent) of total U.S. imports from CBERA countries in 1998 (table 2-5); apparel

also showed the largest increase in such U.S. imports, growing by $691 million (9 percent) in

1998. Apparel is the only manufactured goods product category for which U.S. imports from

CBERA countries exceeded imports from Mexico. Detailed coverage of apparel is provided in

chapter 3.

Except for iron and steel products imported from Trinidad and Tobago, the only

competitive source of steel in the region, most manufactured goods imported from CBERA

countries are assembled entirely or in part from U.S.-made parts. In addition to apparel, six

product areas recorded over $100 million in U.S. imports in 1998. The Dominican Republic

supplied over 71 percent of total imports for four of the six product areas (medical goods, footwear

and parts, electric circuit apparatus, and precious jewelry and related articles). Costa 

Rica supplied virtually all printed circuit assemblies, and telephone and telegraph apparatus.37

Important recent developments in these six product areas are highlighted below.

Medical Goods

U.S. imports of medical goods from CBERA countries increased by $30 million (8

percent) to $389 million in 1998. The Dominican Republic accounted for 82 percent of such

imports in 1998. U.S.-based companies with assembly facilities in these countries have used the

CBERA, GSP, and production-sharing provisions to reduce customs duties when the final

assembled goods are imported into the United States,38 although the principal reason for production

in the Caribbean Basin region is to reduce labor costs. In response to pressures by government and

private sector health care insurers to contain rapidly increasing health care costs, U.S. suppliers of

highly price-sensitive hospital consumables have reduced manufacturing costs to maintain their

competitiveness.39 Several large U.S. medical manufacturers, including Baxter International,

Johnson & Johnson, Abbott Laboratories, and Becton Dickinson, have established significant

production-sharing operations in the Dominican Republic to take advantage of relatively low wage

rates and thereby reduce costs of assembling U.S.-made components into finished medical goods,

while maintaining production of more capital-intensive medical goods in the United States.

In 1994, U.S.-based Baxter International moved a significant portion of its assembly of

price-sensitive, commodity hospital products from Singapore to Costa Rica. Rising wages in
2-14

Table 2-5

Caribbean Basin1: U.S. imports for consumption, by leading manufactured products and suppliers, 1995-98

Commodity group 1995 1996 1997 1998 Leading suppliers (Percent of 1998 total)

----------------Million dollars----------------

Apparel2................................... 5,461 6,042 7,616 8,307 Dominican Republic (28), Honduras (23),

El Salvador (14), Guatemala (14), Costa Rica (10)

Medical goods .............................. 319 247 359 389 Dominican Republic (82), Costa Rica (17)

Microprocessor boards ....................... 1 (

3

) 1 347 Costa Rica (100)4

Footwear and parts .......................... 283 300 336 325 Dominican Republic (87), Honduras (6)

Electric circuit apparatus ...................... 169 196 251 284 Dominican Republic (84), Costa Rica (5),

St. Kitts and Nevis (5)

Precious jewelry and related articles ............. 181 189 204 224 Dominican Republic (71), Costa Rica (20),

Netherlands Antilles (7)

Telephone and telegraph apparatus .............. 12 47 116 124 Costa Rica (96)

Steel mill products ........................... 81 75 86 77 Trinidad and Tobago (93)

Miscellaneous rubber or plastic products .......... 74 70 64 73 Costa Rica (55), Dominican Republic (30), Guatemala (7)

Luggage, handbags, and flat goods .............. 40 49 65 72 Dominican Republic (48), Costa Rica (38),

El Salvador (8), Honduras (5)

Electrical capacitors and resistors ............... 77 66 84 67 El Salvador (34), Costa Rica (33), Barbados (16),

Dominican Republic (10)

Furniture .................................. 49 52 61 66 Honduras (56), Costa Rica (21), Guatemala (11),

Dominican Republic (8)

Electric transformers ......................... 27 35 48 46 Dominican Republic (57), Costa Rica (20),

El Salvador (5), Honduras (5), Haiti (4)

Semiconductor devices ....................... 3 4 8 45 Costa Rica (92), Dominican Republic (6)

Electric sound and visual apparatus .............. 46 47 55 42 Dominican Republic (100)4

All other, including non-manufactured goods ....... 5,727 7,026 7,219 6,636 Costa Rica (17), Dominican Republic (14), 

Guatemala (14), Trinidad & Tobago (13), Honduras (9)

 Total ................................... 12,550 14,545 16,572 17,124 Dominican Republic (26), Costa Rica (16),

Honduras (15), Guatemala(12), El Salvador (8)

 

1

 Includes only those Central American and Caribbean Basin countries and other political entities that are eligible under CBERA.

 

2

 Includes apparel of both textile materials, such as cotton, wool, manmade fibers, or silk fabrics, and nontextile materials, such as fur, leather, and plastics. Excluded

are nonwoven (disposable) garments.

 

3

 Less than $0.5 million.

 

4

 Actually 99.8 percent.

Note.—Because of rounding, figures may not add to the totals shown.

Source: Compiled from official statistics of the U.S. Department of Commerce.
40 Representatives of Costa Rican subsidiary of Baxter Healthcare, interview by USITC staff, Cartago,

Costa Rica, May 20, 1997.

41 U.S. Embassy and Costa Rican industry officials, interviews by USITC staff, June 11, 1999.

42 Technically, certain parts for machines of HTS heading 8471.

43 Intel representative, telephone interview by USITC staff, June 14, 1999, and Sept. 23, 1999.

44 Ibid.; U.S. Embassy and Costa Rican industry officials, interviews by USITC staff, June 11, 1999.

45 Serge F. Kovaleski, “High Technology’s Top Banana? Costa Rica Lures Intel, Other Industry

Giants,” Washington Post, Mar. 11, 1998, p. C10.

46 China supplied 58 percent of the total value of U.S. imports of footwear and parts and 73 percent of

the total quantity of footwear in 1998.

2-15

Singapore and the advantage of Costa Rica’s proximity to the United States caused the

shift.40 Abbott Laboratories has also established assembly facilities in Costa Rica, with

production of disposable medical goods expected to commence in December 1999.41

Microprocessor Boards

U.S. imports of printed circuit assemblies for computers42 increased sharply from

$1 million in 1997 to $347 million in 1998, virtually all from Costa Rica. The bulk of

these components were assembled by Intel, which began production at its Costa Rican

facilities in March 1998. Intel built its microprocessor assembly and testing complex at a

reported cost of $500 million, providing employment for 2,100 workers as of June 1999.43

Intel’s investment was the culmination of a Costa Rican Government effort that began 15

years ago to transform the economy away from agricultural products to one centered on

higher value-added, technology-oriented, and environment-friendly goods and services.

Factors reported to have influenced the decision of Intel and other high-technology

companies to invest in Costa Rica include political, economic, and legal stability; a highly

skilled, productive, and educated workforce;44 and relative lack of poverty, social conflict,

and corruption compared with certain countries in Latin America.45

Footwear and Parts 

Although U.S. imports of footwear and parts from CBERA countries historically

have consisted primarily of stitched shoe uppers, in recent years the composition has

shifted toward finished footwear. Of total U.S. imports of $325 million in 1998,

approximately two-thirds entered under the CBERA. Prior to the passage of section 222 of

the 1990 Caribbean Economic Recovery Expansion Act, duty-free entry of finished

footwear had not been allowed under either the CBERA or GSP. That act allowed dutyfree entry of such articles from CBERA countries if they were assembled entirely from

U.S. components, spurring growth to about one-fifth of total U.S. imports of footwear and

parts in 1998. Because the manufacture of finished footwear and footwear uppers is laborintensive, U.S. producers ship components to low-wage CBERA countries to perform

labor-intensive assembly operations to become more price competitive with imports from

Asia, primarily China.46 The Dominican Republic was by far the leading supplier of

footwear and parts from CBERA countries in 1998, accounting for $284 million (87

percent) of U.S. imports from the region, followed by Honduras.
47 1999 Caribbean/Latin America Profile (Grand Cayman, Cayman Islands: Caribbean Publishing

Co., Ltd., 1998), pp. 99 and 103. Allen-Bradley representative, telephone interview with USITC staff,

Oct. 14, 1999.

48 Control Devices, Inc., 10-K filing to the Securities and Exchange Commission, Feb. 2, 1999.

49 DSC Communications, “DSC Establishes New Manufacturing Facility In Costa Rica,” press

release, Mar. 21, 1996, found at Internet address http://192.245.102.10/pr032196.htm, retrieved

Sept. 22, 1999. Alcatel acquired DSC Communications in Aug. 1998.

2-16

Electrical Circuit Apparatus

Total U.S. imports of electrical circuit apparatus from CBERA countries grew by

$33 million (13 percent) to $284 million in 1998, of which the Dominican Republic

supplied 84 percent. Virtually all U.S. imports from CBERA countries entered duty free

either under the CBERA, GSP, or production-sharing provisions in 1998. Both Rockwell

Automation/Allen-Bradley47 and Control Devices48 assemble electrical circuit apparatus in

free-trade zones in the Dominican Republic for export to the United States.

Precious Jewelry and Related Articles

Total U.S. imports of precious jewelry from CBERA countries increased by $20

million (10 percent) to $224 million in 1998. Virtually all U.S. imports of such articles

from the Dominican Republic entered free of duty under either the CBERA or productionsharing provisions. To reduce labor costs and improve their ability to compete with

imports from Asia and Italy, several U.S. producers of precious jewelry have established

assembly operations in the Dominican Republic, by far the leading supplier, and to a lesser

extent in Costa Rica and the Netherlands Antilles. The bulk of U.S. imports of precious

metal jewelry from these countries is believed to be gold chain made in the United States to

which clasps are attached in the Caribbean Basin.

Telephone Apparatus

U.S. imports of telephone apparatus, virtually all from Costa Rica, approximately

tripled during 1996-98, reaching $124 million. Virtually all of these imports entered free of

duty under the CBERA. Most of this growth can be attributed to imports of parts of

telephonic switching equipment, which comprised 88 percent of the total during 1998. 

Alcatel USA (a U.S. subsidiary of an EU-headquartered company), which opened a

manufacturing plant in a San Jose free-trade zone in 1996, is the principal source for these

imports. Alcatel’s Costa Rican production facility provides switch components to

customers throughout the world.49 Alcatel U.S.A. is a major U.S. producer of both

wireless and wireline telephonic switching equipment with production facilities in the

United States, Europe, and Latin America.

Carl Seastrum

(202) 205-3493

seastrum@usitc.gov
1

 Including major household appliances discussed in chapter 2.

2

 Sidney Weintraub and Christopher Sands, eds., The North American Auto Industry Under NAFTA

(Washington, DC: Center for Strategic Studies, 1998), Significant Issues Series, vol. XX, No. 5, p. xi.

3

 With respect to motor vehicles, rationalization refers to a strategy whereby vehicle models are

produced in a single or reduced number of locations for distribution throughout a wide region.

3-1

CHAPTER 3

CROSS-BORDER MANUFACTURING

IN SELECTED INDUSTRIES

The North American automotive, television, and apparel industries are among the sectors

most active in the cross-border flow of parts and finished goods. These three sectors accounted for

24 percent of U.S. exports to Canada, Mexico, and the Caribbean Basin region in 1998, and for 33

percent of U.S. imports from these trading partners (table 1-3). By comparison, trade in these

sectors accounted for 5 percent of U.S. exports to the rest of the world and 16 percent of U.S.

imports. This chapter examines the integration of these industries in North America and the

Caribbean Basin.

Data available on U.S., Canadian, and Mexican output and employment for these sectors1

are provided in table 3-1. Although these data are not, in all cases, directly comparable to the

product groupings defined in the chapter, they nonetheless assist in understanding general industry

trends during 1995-98. Producers’ shipments increased in most sectors during this period,

especially in the automotive sectors. Employment was more variable, declining in certain sectors

despite increased shipments. All three North American Free-Trade Agreement (NAFTA) partners

experienced significant increases in both producers’ shipments and employment in the motor

vehicle parts sector. A variety of factors are likely to have influenced these trends, such as

sustained economic growth in the NAFTA region, technological innovations, exchange rate

fluctuations, developments associated with NAFTA and the Uruguay Round, and the recent Asian

financial crisis. Therefore, changes in output and employment levels in the NAFTA countries

during 1995-98 are difficult to link with any single economic development, including the ongoing

integration of North American industry. Such analysis is beyond the scope of this report.

Motor Vehicles and Parts

The automotive sector is the most integrated manufacturing sector in North America, 

accounting for 40 percent of North American trade.2 The integration of U.S. and Canadian

automotive production, spurred decades ago by the Automotive Products Trade Act of 1965

(APTA), has resulted in significant production rationalization,3 intra-industry trade, and trade in

intermediate goods. Production-sharing arrangements have encouraged similar regional integration

with Mexico. Prior to NAFTA, Mexican import restrictions led U.S. automakers and parts

producers to maintain production in Mexico that was redundant with production elsewhere in

North America. However, the gradual removal of Mexican import barriers under NAFTA has 
3-2

Table 3-1

Trends in producers’ shipments and employment in selected industry sectors in the United

States, Canada, and Mexico, 1995-98

Country/sector 1995 1996 1997 1998

United States:

 Motor vehicles:1

 Producers’ shipments (million dollars)2.... 209,035 209,184 209,272 216,702

 Employment (1,000 employees)

2

........ 278 263 272 269

 Motor-vehicle parts:3

 Producers’ shipments (million dollars)

2

.... 143,859 148,201 159,202 163,819

 Employment (1,000 employees)

2

........ 706 691 739 738

 Color television receivers:

 Producers’ shipments (million dollars)

4

.... 5,145 4,650 4,200 3,800

 Employment (1,000 employees)

4

........ 20 16 14 12

 Color picture tubes:

 Producers’ shipments (million dollars)

5

.... 2,700 3,050 3,450 3,250

 Employment (1,000 employees)

6

........ 19 19 20 20

 Textile mill products:

 Producers’ shipments (million dollars)

4

.... 79,892 80,196 83,906 80,944

 Employment (1,000 employees)

4

........ 663 626 616 596

 Apparel:

 Producers’ shipments (million dollars)

7

.... 78,073 77,564 78,782 80,014

 Employment (1,000 employees)

7

........ 936 864 813 763

 Major household appliances:8

 Producers’ shipments (million dollars)

9

.... 11,259 11,725 11,253 11,632

 Employment (1,000 employees)10....... 69 69 60 63

Canada:11

 Motor vehicles:12

 Producers’ shipments (million dollars) ..... 37,647 37,652 41,141 39,993

 Employment (1,000 employees) ......... 66 68 67 72

 Motor-vehicle parts and accessories:13

 Producers’ shipments (million dollars) ..... 16,369 17,333 18,117 18,108

 Employment (1,000 employees) ......... 86 83 92 100

 Color television receivers:

 Producers’ shipments (million dollars)

14

.... 203 177 179 174

 Employment (1,000 employees) ......... (

15) (15) (15) (15)

 Color picture tubes:

 Producers’ shipments (million dollars)

14

.... 0 0 0 0

 Employment (1,000 employees) ......... 0 0 0 0

 Textiles:

 Producers’ shipments (million dollars) ..... 4,945 5,069 5,335 4,973

 Employment (1,000 employees) ......... 46 48 51 54

 Apparel:

 Producers’ shipments (million dollars) ..... 4,760 4,618 4,731 4,474

 Employment (1,000 employees) ......... 84 85 88 90

 Major household appliances:16

 Producers’ shipments (million dollars) ..... 689 646 675 712

 Employment (1,000 employees) ......... 7 6 5 5

See footnotes at end of table.
3-3

Table 3-1--Continued

Trends in producers’ shipments and employment in selected industry sectors in the United

States, Canada, and Mexico, 1995-98

Country/sector 1995 1996 1997 1998

Mexico17

 Motor vehicles:18

 Producers’ shipments (thousands of units) 935 1,219 1,360 1,455

 Employment (1,000 employees) ........ 42 44 49 50

 Motor-vehicle parts and accessories:19

 Producers’ shipments (million dollars) .... 13,095 16,175 18,557 20,130

 Employment (1,000 employees) ........ 253 279 321 336

 Color television receivers:

 Producers’ shipments (million dollars)

14

... 3,200 3,150 3,339 3,539

 Employment (1,000 employees) ........ (

15) (15) (15) (15)

 Major household appliances:

 Producers’ shipments (thousands of units)

20 2,188 2,256 3,019 3,419

 Employment (1,000 employees) ........ (

15) (15) (15) (15)

 

1

 Includes motor vehicles and car, truck, and bus bodies: SIC nos. 3711 and 3713.

 

2

 U.S. Department of Commerce, U.S. Industry & Trade Outlook ‘99, employment estimates by the Commission for 1997-

98 based on data from U.S. Department of Labor, Bureau of Labor Statistics.

 

3

 Includes automotive stampings (SIC 3465); carburetors, pistons, piston rings, and valves (SIC 3592); vehicle lighting

equipment (SIC 3647); storage batteries (SIC 3691); electrical equipment for internal combustion engines (SIC 3694); and

motor vehicle parts and accessories (SIC 3714).

 

4

 U.S. International Trade Commission, Shifts in U.S. Merchandise Trade in 1998, Appendix B, USITC Pub. 3220, Aug.

1999.

 

5

 Electronic Industries Alliance.

 

6

 Electronic Industries Alliance and U.S. Department of Commerce.

 

7

 For textile mill products (SIC 22) and apparel and other textile products (SIC 23), shipments data represent industry

shipments data (seasonally adjusted) and are from the U.S. Bureau of the Census, e-mail of Apr. 22, 1999, and employment

data are from the U.S. Bureau of Labor Statistics, found at Internet address http://146.4.24/cgi/bin/dsrv, retrieved Nov. 3,

1999.

 

8

 Includes household cooking equipment (SIC 3631); refrigerators and farm freezers (SIC 3632); household laundry

equipment (SIC 3633 (pt.)) and household appliances, n.e.c. (SIC 36399(pt.)).

 

9

 U.S. Department of Commerce, Current Industrial Reports, Pub. MA36F(97)-1, issued Aug. 25, 1998, revised Sept. 23,

1999.

 

10 Estimated by the Commission based on official statistics of the U.S. Department of Labor, Bureau of Labor Statistics.

 

11 Except as noted, all producers’ shipments and employment data for Canada were extracted from CANSIM, Statistics

Canada’s online statistical database. Value of producers’ shipments reported in Canadian dollars were converted to U.S.

dollars by the U.S. International Trade Commission. Figures on employment were derived by calculating the average for the

year from monthly data available from CANSIM. Found at Internet address http://www.statcan.ca/datawarehouse/

znxim/cansim.cgi, retrieved Oct. 21 and 22, 1999.

 

12 Includes truck trailers, which are not included in U.S. data for motor vehicles. Truck trailers account for about 3 percent

of total Canadian shipments of motor vehicles. 

 

13 Includes motor-vehicle fabric accessories, which are not included in U.S. motor-vehicle parts data. Excludes storage

batteries, which are included in U.S. motor-vehicle parts data.

 

14 Reed Electronics Research, Yearbook of World Economics Data, 1999/2000. Values reported in U.S. dollars. 

 

15 Not available.

 

16 Includes room air conditioners and food waste disposers, which are not included in U.S. data for major household

appliances.

 

17 Data for producers’ shipments and employment are not available for sectors other than motor vehicles and parts and

color television receivers. The most recent official data from Mexico’s census of manufactures is for production in 1994; data

for 1998 will be available in the middle of 2000.

 

18 Grupo CIEMEX-WEFA, Perspectivas Economicas de la Industria Automotriz, Vol. XX, Num. 2, July 1999.

 

19 Ibid. Covers products classified in Mexico’s industrial sector “Rama 57,” including engines, transmissions, suspensions,

brakes, and other parts and systems used in the assembly of motor vehicles. Value of producers’ shipments reported in

Mexican pesos were converted to U.S. dollars by the U.S. International Trade Commission.

 

20 Data represents Mexico’s producers’ shipments of refrigerators, gas ranges, and washers. There is no domestic

production of electric dryers or stoves in Mexico at this time.
4

 Passenger vehicles refer to passenger cars and light trucks (minivans, sport-utility vehicles, and

pickup trucks). This report will primarily discuss the growing integration of the North American industry

manufacturing passenger vehicles and related parts, although the tables presented herein provide data for

all motor vehicles, which includes passenger cars, light trucks, medium- and heavy-duty trucks, buses,

and bodies and chassis of the foregoing.

5

 Automotive News,‘99 Market Data Book (Detroit, MI: Crain Communications, Inc., May 1999),

p. 35.

6

 Max Pemberton and David Puckering, Ward’s/Pembertons World Auto Atlas and Directory

(Southfield, MI: Ward’s Communications, 1998), p. 54.

7

 In late 1998, Volvo announced the closing of its plant in Halifax, Nova Scotia. The reasons given by

Volvo include the reduction of automotive tariffs in Canada that spurred the opening of the Canadian

plant in 1963; overcapacity in Sweden; costs involved in shipping parts for assembly, as opposed to

shipping a finished vehicle; and the inability to expand production at Halifax. Volvo asserts that the

establishment of a new plant in Mexico is not related to the closing of its Halifax facility; the Mexican

operation will focus on buses for the present time, with limited passenger car production destined

exclusively for the Mexican market. Jim Henry, “Strikers at Volvo Canada trade plant for severance,”

Automotive News, Nov. 2, 1998, p. 39.

8

 Jeff Green, “Rolling Steady: Canada faces slowdown at home, hope abroad,” Ward’s Auto World,

Dec. 1998, p. 73.

3-4

prompted U.S. automakers and parts producers to rationalize production by exporting to Mexico

those vehicles and parts that are more efficiently produced in the United States or Canada. This

rationalization has allowed U.S. automakers and parts producers in Mexico to modernize their

existing operations, and to focus on core competencies to improve economies of scale and

ultimately increase competitiveness. U.S., Japanese, and European auto and parts producers have

in recent years invested considerably in new and existing assembly plants throughout North

America, increasing market integration and the North American manufacturing base.

Industry Profiles

The U.S. passenger vehicle4 manufacturing industry consists of traditional U.S. producers

General Motors (GM), Ford, and the newly merged DaimlerChrysler (DC), plus a number of

“transplant” producers based in Japan and Germany. Medium- and heavy-duty truck makers

include Ford, GM, Paccar, Navistar International, Freightliner (a unit of DC, Germany), Mack

Trucks (a unit of Renault, France), and Volvo Trucks North America (Sweden). In 1998, the U.S.

passenger vehicle industry produced 11.6 million vehicles, a 1-percent decrease from 1997. The

slight decrease in total 1998 U.S. production was largely attributable to a 54-day strike at GM. Of

total U.S. passenger vehicle production in 1998, Japanese manufacturers with operations in the

United States (Honda, Mazda, Mitsubishi, Nissan, Subaru-Isuzu, and Toyota) produced 2.4

million vehicles (21 percent), and German automakers BMW and Mercedes-Benz produced

127,600 units (1 percent). U.S. passenger vehicle sales reached a total of 15.6 million units in

1998, with imports from outside North America supplying 30 percent of the market.5

GM, Ford, and DC dominate Canadian motor vehicle production, with a combined

capacity of over 2 million vehicles per year.6 Other motor vehicle producers with operations in

Canada include Honda, Toyota, Volvo,7 CAMI (GM’s joint venture operation with Suzuki), and

truck makers Navistar, Kenworth, Mack, and Freightliner. Due to strong demand in the Canadian

and U.S. markets, the Canadian auto industry has operated at record production levels for a

number of years, with producers adding shifts and announcing production capacity expansions in

1998.8 The Canadian operations of Ford, Chrysler, Honda, Toyota, and Volvo recorded increased
9

 “Civic Wins First Canada Car Crown; Year Flat,” Ward’s Automotive Reports, Jan. 25, 1999, p. 1.

10 ‘99 Market Data Book, p. 40.

11 Ibid.

12 Because of differences in definition among various sources, data for the product grouping “auto

parts” provided throughout this write-up may not be directly comparable.

13 U.S. Department of Commerce, International Trade Administration, “Automotive Parts,” Outlook

‘99, 1999, pp. 37-1 and 37-5.

14 Mexico - Automotive Aftermarket Parts - ISA981101, Market Research Reports, U.S. Department of

State, Nov. 1, 1998.

15 The Canadian Automotive Industry, Industry Canada, June 10, 1998, found at Internet address

http://strategis.ic.gc.ca/SSG/am01153e.html, retrieved July 6, 1999.

16 General Motors spun off Delphi, its parts division, in May 1999.

17 “Top 150 OEM Parts Suppliers to North America,” Automotive News, Apr. 12, 1999, pp. 21-26.

3-5

passenger car production in 1998, with only GM and its CAMI joint venture recording production

decreases due to a strike at GM and related shutdowns at CAMI and GM’s Ste. Therese, Quebec

plants.9 In 1998, retail sales of passenger cars and light trucks in Canada reached 1.4 million units,

with imports from outside North America accounting for 15 percent of the market.10

The Mexican passenger vehicle manufacturing industry produced 1.36 million vehicles in

1998, an increase of 8 percent over the 1997 total. Although Volkswagen dominates passenger car

manufacturing in Mexico (accounting for 36 percent of the 1998 total), DC surpasses Volkswagen

when passenger cars and light trucks are considered together (accounting for 25 percent of total

passenger vehicle production in 1998). Other passenger vehicle manufacturers with operations in

Mexico, listed by magnitude of production, are GM, Nissan, Ford, Honda, and BMW. Mediumand heavy-duty truck manufacturers include DC (Chrysler, Mercedes-Benz, and Freightliner

brands), Dina, Ford, Kenworth, GM, Navistar, Scania (Sweden), Trailers de Monterrey (Mexico),

Victor Patron (Mexico), and Volvo. Passenger vehicle sales in Mexico reached 565,869 vehicles in

1998, with imports from all countries accounting for 31 percent of the market.11

The North American automotive parts industry has a structure similar to that for motor

vehicles, with the output of automotive parts12 concentrated in the United States, where roughly

5,000 firms manufactured parts valued at an estimated $157 billion in 1998.13 In the same year,

output from approximately 1,000 Mexican component producers ranged between $44 billion to

$56 billion,14 and Canadian shipments from 550 plants totaled $23 billion.15 These components

include those destined for the original equipment manufacturers market (the automakers) as well as

those shipped to the aftermarket for use as replacement parts. The leading suppliers to the North

American market include Delphi Automotive Systems,16 the world’s largest automotive parts

supplier, with sales of $20.6 billion; Visteon Automotive Systems, a unit of Ford, with sales of

$14.5 billion; and Johnson Controls, Inc., a supplier of interior systems and batteries, with sales of

$5.6 billion.17

North American Manufacturing Integration

Although market access and labor cost considerations have long spurred U.S. and foreign

automotive investment in Canada and Mexico, duty-free trade in most motor vehicles and parts

between the United States and Canada under the Automotive Products Trade Agreement of 1965

(APTA) heralded the beginning of true integration of the North American automotive industry.

That same year, the Mexican Congress approved the Border Industrialization Program

(Maquiladora Program), allowing duty-free entry of components and materials used to assemble
18 New for model year 2000.

19 ‘99 Market Data Book, p. 23.

20 Ibid., p. 25.

21 Miller, The Road Ahead.

3-6

vehicles and parts (as well as nonautomotive products) for export markets. Subsequent trade

agreements--the U.S.-Canada Free Trade Agreement (CFTA) and NAFTA--liberalized trade and

investment rules, thereby encouraging the rationalization of production and contributing to the

competitiveness of the North American automotive industry. Improved market access within North

America further enhanced competitiveness by allowing greater economies of scale.

Rationalization strategies tend to have the Canadian facilities of GM, Ford, and DC more

heavily weighted towards the production of midsized and larger passenger cars and light trucks for

domestic consumption and export (mostly to the United States). With respect to passenger cars, the

sole North American site for production of the Chrysler-branded Concorde, LHS, and 300M, and

the Dodge Intrepid is Bramalea, Ontario. St. Thomas, Ontario, is the sole North American

production facility for the Ford Crown Victoria and the Mercury Grand Marquis. GM’s facilities

in Oshawa, Ontario, and Ste. Therese, Quebec, are the sole North American production sites for

the Chevrolet Lumina, Monte Carlo, Impala,18 and Camaro; the Buick Regal and Century; and the

Pontiac Firebird.19

For light trucks, DC’s operations in Windsor, Ontario, represent the sole North American

production facilities for the Dodge Ram Van and Ram Wagon, and complement U.S. production of

the Dodge Caravan/Grand Caravan and the Plymouth Voyager/Grand Voyager minivans. Ford’s

Oakville, Ontario, factories are the sole North American production facilities for the Ford Windstar

minivan, and complement U.S. production of the Ford F-series truck. GM’s Oshawa, Ontario,

plant is the sole North American production site for the extended cab version of the Chevrolet

Silverado pickup and a complementary site for the GMC Sierra extended cab pickup.20

 The market access provisions of NAFTA have encouraged automakers to accelerate the

pace of model rationalization among their North American operations, and to consider their

Mexican operations as part of their regional and global production planning. More specifically,

automakers are concentrating Mexican production on small cars for both local consumption and

export, while exporting larger, luxury vehicles to the Mexican market. However, the degree of

integration between the Mexican and U.S. industries has not yet reached the level of that between

the U.S. and Canadian industries. Many of the passenger car and light truck models produced by

GM, Ford, and DC in Mexico continue to be produced elsewhere in North America. Nissan has

recently moved toward fuller integration of its North American operations with its decision to move

production of the Sentra from Smyrna, Tennessee, to Aguascalientes, Mexico, during 1997-99,

with a view toward using freed up U.S. capacity for a redesigned pick-up and an all new sportutility vehicle (SUV).21 Volkswagen’s only North American production site is in Puebla, Mexico,

where the popular Beetle, Jetta, and Golf models are produced. Similarly, the sole North American

production sites for the Sebring convertible and Dodge Ram pickup (DC), Ford Escort ZX2 sport

coupe, and the 2-door Chevy Tahoe/GMC Yukon (GM) are in Mexico. Automakers are also using

their Mexican plants to supplement the U.S. production of vehicles in high demand in the United

States, especially pickup trucks and SUVs.

U.S. and foreign parts suppliers have followed their automotive customers throughout the

North American market in response to industry shifts to localized production, just-in-time
22 “Automotive Parts,” Outlook ‘99, p. 37-1.

23 U.S. Department of State, Mexico - Automotive Original Eq. Manufacturers - ISA970801, Market

Research Report, Aug. 1, 1997.

24 John Couretas, “Canada Parts Makers Steer A Global Course,” Automotive News, May 5, 1997,

p. 27.

25 John Couretas, “Big Mexican Suppliers Glide as Small Parts Makers Slide,” Automotive News,

June 1, 1998, p. 20.

26 For example, see Al Wrigley, “Mexico Captures Ford Pact,” American Metal Market, Apr. 6, 1998,

p. 1; and Al Wrigley, “Mexican Casting Grows Stronger,” American Metal Market, May 19, 1998.

27 Al Wrigley, “Auto Industry Has Much to Overcome in Mexico,” American Metal Market, July 2,

1998, p. 4.

28 Carlos Gomes, “Auto Parts Suppliers --Outsourcing Drives Surge in Canadian Content,” Canadian

Auto Report, Scotia Economics, Feb. 25, 1999.

29 U.S. Department of Commerce, International Trade Administration, Office of Automotive Affairs,

Fifth Annual Report to Congress Regarding the Impact of the North American Free Trade Agreement

(continued...)

3-7

deliveries, increased local content, sourcing diversity, smaller supplier bases, and greater

modularity. In the United States, for example, approximately 500 component manufacturers are

subsidiaries of Japanese, Canadian, and European firms.22 In Mexico, the establishment of

assembly operations by Japanese and German automakers has attracted investments from their

parts suppliers, providing greater competition for U.S.-based suppliers that have traditionally

dominated the Mexican market.23 Canadian-based suppliers, on the other hand, reportedly now

account for more than one-half of Canadian automotive parts production, after decades of

dominance by U.S.-based firms.24 Japanese parts makers have increased their presence in the

Canadian market, but have yet to challenge the strong positions held by Canadian and U.S. firms.

Although both the Mexican and Canadian components industries produce a broad

spectrum of automotive parts, the Mexican industry has traditionally emphasized the production

and export of more labor-intensive components,25 in part because of Mexico’s lower labor costs. 

Mexico has developed competencies in the labor-intensive manufacture of engine castings and

wiring harnesses. Mexico has emerged as one of the world’s leading producers of engine castings,

with such firms as Montupet, Nemak SA, and Teksid manufacturing cylinder blocks and heads for

U.S. and foreign vehicle manufacturers.26 Most wiring harnesses for the North American

automotive industry are assembled in Mexico by Delphi Packard Electric, Lear Corp., Yazaki

North America Inc., Sumitomo Electric Wiring Systems, and Lenische Cable Assemblies. More

complex and costly parts, such as transmissions, are expected to be produced in Mexico in the

future.27 The Canadian industry, on the other hand, has focused on expanding the manufacture of

higher value-added components and modules by directing investment during the 1990s to

machinery and equipment purchases designed to enhance productivity and overall

competitiveness.28

North American Automotive Investment Trends

There has been considerable investment by U.S., Japanese, and European automakers in

new and existing assembly plants throughout North America in recent years, resulting in the

introduction of new models and the expansion of capacity for existing popular models. According

to a 1998 study conducted by the Automotive Parts Manufacturers Association of Canada, the

United States continues to be the leading recipient of automotive investment in the world, with

Canada ranking ninth and Mexico, tenth.29
29 (...continued)

upon U.S. Automotive Trade with Mexico, July 1999, found at http://www.ita.doc.gov/auto/nafta99.pdf.

30 EIU, 2d quarter 1998, p. 52.

31 EIU, 2d quarter 1999, p. 70.

3-8

With respect to Mexico, the Economist Intelligence Unit (EIU) estimates that foreign direct

investment by automakers in the Mexican automotive industry will reach at least $2 billion per

year for the next several years. Announcements by Mexico’s leading automakers of plans to

increase capacity indicate that Mexico is increasingly crucial to their North American strategies of

reducing labor costs, improving manufacturing efficiencies, expanding shares of the North

American market, and increasing sales in Central and South America from their Mexican

production facilities (table 3-2).30 For example, GM may be planning to double its manufacturing

capacity in Mexico by 2007, possibly including a new plant for a new SUV by late 2000. The

majority of these vehicles would be destined for the U.S. market. A new full-size pick-up may also

be added to the Silao plant line in late 2000.31

Table 3-2

Motor vehicles: Selected investments in Mexico

Manufacturer Capacity expansion/investment plans in Mexico

DaimlerChrysler Will begin production of the PT Cruiser in Toluca in January 2000 - will build

100,000 per year for global distribution. In 1998, DC completed the addition of a

metal stamping facility in Saltillo. Overall, DC has committed $1.5 billion to revamp

its Mexican operations by 2002.

Ford Will replace the Tracer and Escort with the all-new Focus in 1999 and will stop

production of the Contour/Mystique to make room for output of the Focus. In 1999,

Ford plans to outfit its Cuautitlan plant with new machinery. Overall, Ford has

committed $1 billion to expand its Mexican operations.

Freightliner Will double Class 8 heavy truck production at Santiago plant for export to the United

States.

General Motors Committed $20 million in 1998 to build a vehicle prototype design center in Toluca

that will work on projects for the entire corporation.

Navistar Began manufacturing 3 models of Class 6-8 trucks and buses near Monterrey in

1998 for domestic consumption as well as for export to the United States and Latin

America.

Nissan Moved production of the Sentra from Smyrna, TN, to Aguascalientes in 1999,

making Aguascalientes the sole source for the Sentra in North and South America. 

Volkswagen Began production of the new Beetle at the VW plant in Puebla in1998; this is the

sole production facility for this vehicle in the world.

Volvo AB Bought Mexicana de Autobuses (Mexico’s second-leading bus manufacturer) in

October 1998 with plans to enhance its presence as a NAFTA producer of buses as

well as passenger cars. The Tultitlan plant will begin producing the S70 and V70

passenger cars in 1999.

Sources: EIU, Motor Business International, 2nd quarter 1999, chs. 1 and 5; and Office of Automotive Affairs, U.S.

Department of Commerce, Fifth Annual Report to Congress Regarding the Impact of the North American Free Trade

Agreement upon U.S. Automotive Trade with Mexico, July 1999.
32 Joel Millman, “Mexico Becomes a Leader in Car Parts,” Wall Street Journal, Mar. 30, 1999, p.

A21.

33 John Couretas, “Mexico Supplier’s Aim: Move From Parts to Systems,” Automotive News, Mar. 8,

1999, p. 24B.

3-9

years.32 Large Mexican suppliers will likely be active participants in this growth as they seek to

better position their companies to compete in an automotive market requiring systems integration

capabilities and wider product scope. For example, Sanluis Rassini, a Mexican producer of

foundation brakes and leaf springs, expects to acquire or partner with another manufacturer to

reach its goal of producing integrated suspension systems.33

Table 3-3

Motor vehicle parts: Selected investments in Mexico

Manufacturer Investments in Mexico

American Axle & Manufacturing (U.S.) To invest $120 million in a Silao facility for production of axles

for General Motors. Expected start-up in 2000.

Budd Company (U.S.) Joint venture with Hirotec (Japan) and Sumitomo (Japan) in

Silao to design and manufacture automotive sheet metal

stampings and assemblies. Start-up in 1999.

Delphi Automotive Systems (U.S.) $12.4 million investment in Gabriel de Mexico, a Mexican

automotive damper and suspension module manufacturer.

To invest $55 million in brake and suspension plant near

Ramos Arizpe. Start-up in mid-1999.

LucasVarity (U.K.) To invest $8 million in brake plant in Queretaro to replace an

existing facility. Start-up in fall 1999.

Meritor Automotive (U.S.) To begin production of truck axles at a new plant in Queretaro

in June 1999.

Sachs Automotive (Germany) To invest $70 million in an automatic transmission components

plant in Ramos Arizpe. Start-up in mid-1999.

Williams Controls (U.S.) Established plant to manufacture electronic throttle controls for

truck and diesel engine manufacturers.

Sources: Various industry publications.

Regional Trade Patterns

Canada, Mexico, Japan, and Germany are the leading U.S. trading partners for motor

vehicles and parts. Canada has consistently accounted for over 50 percent of U.S. motor vehicle

exports, with the other three combined markets accounting for approximately 20 percent of the

total (table 3-4). Mexico replaced Japan as the second-leading market for U.S. motor vehicle

exports in 1997, as exports to Mexico registered an average annual increase of 84 percent, while

exports to Japan steadily decreased during 1995-98. This surge in exports to Mexico is a reflection

of U.S. automakers’ efforts to rationalize production within North America in the wake of Mexican

market reforms under NAFTA.
34 The U.S. trade deficit in motor vehicles in 1998 ($77.3 billion) accounted for 28 percent of the total

U.S. merchandise trade deficit that year ($272.9 billion). See U.S. International Trade Commission, Shifts

in U.S. Merchandise Trade in 1998, USITC publication 3220, Aug. 1999.

35 EIU, 2d quarter 1998, p. 51.

36 Industry Canada, The Automotive Competitiveness Review: A Report on the Canadian Automotive

Industry 1998, p. 5, found at http://strategic.ic.gc.ca/autoe.

3-10

Table 3-4

Motor vehicles:1 U.S. exports of domestic merchandise, imports for consumption, and

merchandise trade balance, 1995-98

(Million dollars)

Country 1995 1996 1997 1998

U.S. exports of domestic merchandise:

 Canada ....................... 11,306 12,039 14,213 13,379

 Mexico ....................... 362 1,159 1,938 2,259

 Japan ........................ 2,981 2,562 1,559 1,118

 Germany ..................... 641 1,163 1,092 1,163

 Other ........................ 6,055 5,770 5,592 4,625

 Total ........................ 21,345 22,693 24,394 22,544

U.S. imports for consumption:

 Canada ....................... 33,236 33,676 35,884 37,671

 Mexico ....................... 8,386 11,714 12,270 13,225

 Japan ........................ 28,994 26,862 27,906 28,864

 Germany ..................... 7,661 8,346 9,761 12,484

 Other ........................ 5,940 6,518 7,167 7,584

 Total ........................ 84,217 87,116 92,988 99,828

U.S. merchandise trade balance:

 Canada ....................... -21,931 -21,637 -21,671 -24,293

 Mexico ....................... -8,023 -10,554 -10,332 -10,965

 Japan ........................ -26,013 -24,300 -26,347 -27,746

 Germany ..................... -7,020 -7,183 -8,669 -11,322

 Other ........................ 115 -749 -1,585 -2,958

 Total ...................... -62,872 -64,423 -68,594 -77,284

 

1

 Data are for all motor vehicles, which include passenger cars, light trucks, medium- and heavy-duty

trucks, buses, and bodies and chassis of the foregoing.

Note.—Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.

U.S. imports of motor vehicles are even more heavily concentrated with respect to the four

leading partners. Canada has consistently accounted for 39 percent of U.S. motor vehicle imports

during 1995-98, with Japan, Mexico, and Germany accounting for 54 percent during the 

period. U.S. motor vehicle imports from Mexico have increased steadily during 1995-98, with an

average annual increase of 16 percent.

On average, nearly 50 percent of the U.S. global trade deficit in motor vehicles in any year

is generated by trade with Canada and Mexico, where U.S., Japanese, and European automakers

produce passenger vehicles for the U.S. market.34 Approximately 90 percent of motor vehicle

exports from Mexico are destined for the United States and Canada;35 similarly, the United States

and Mexico accounted for 97 percent of Canadian exports in 1996.36 In that year, Canada exported
37 Ibid, p. 15.

38 The products covered in this group include body stampings, engines and parts, bumpers, brakes and

parts, gear boxes, axles, wheels, shock absorbers, radiators, exhaust systems, clutches, steering wheels,

wiring harnesses, seats and parts, and miscellaneous parts and accessories.

3-11

approximately 87 percent of its passenger vehicle production, mostly to the United States and

Mexico.37

The dominance of Canada and Mexico in U.S. automotive trade extends into the parts

sector, reflecting the influence of APTA and NAFTA in shaping North American industry

integration and the direction of auto parts trade. The U.S. automotive industry is believed to

incorporate a significant level of U.S. parts in its Canadian and Mexican operations, generating

large trade flows in such sectors as engines and related parts. GM, Ford, and DC have a long

history as producers of engines and parts at numerous plants in Canada and Mexico. Engines and

parts from these facilities as well as those in the United States are shipped throughout North

America to meet automakers’ specific engine needs. These producers are also increasingly sourcing

large engine components from Mexico’s numerous established castings producers. Because of

these extensive linkages, Canada and Mexico annually accounted for 72 percent or more of U.S.

exports of certain automotive parts38 during 1995-98 (table 3-5). Engines and related parts

represented 30 percent of U.S. automotive parts exports to Canada and 17 percent of such exports

to Mexico in 1998. Exports to Japan and Germany consistently accounted for another 6 to 7

percent of annual U.S. auto parts exports.

The same four countries emerged as the leading U.S. import sources of automotive

components during the period. NAFTA-partners Canada and Mexico supplied a growing share of

U.S. auto parts imports, rising from 54 percent in 1995 to 60 percent in 1998. Canada was the

leading supplier of engines and related parts in 1998, accounting for 28 percent ($3.3 billion) of

automotive parts imports from Canada and 29 percent of total U.S. imports of these products.

Mexico supplied another 22 percent ($2.3 billion) of such parts imports in that year. Mexico was

the principal foreign supplier of wiring harnesses in 1998, accounting for 35 percent ($3.7 billion)

of parts imports from Mexico and 84 percent of total U.S. imports of these products. Japan and

Germany accounted for 19 percent and 6 percent, respectively, of U.S. automotive parts imports in

1998, reflecting the established ties between Japanese and German transplant 

automakers and their home-country suppliers, as well as a desire by these automakers to retain

certain core technologies, such as engine manufacturing, at their home manufacturing bases.

Implications for the Competitiveness of the North American

Motor Vehicle Industry

The trend toward full integration of the North American automotive industry promises real

competitive benefits for the manufacturers involved. Cross-border integration allows

manufacturers to focus on core competencies and rationalize production, promoting greater

efficiency through specialization, while providing economies of scale and lower production costs.

During the last 5 years, the U.S. automotive industry has experienced growth in total trade, stable

but robust production and capacity utilization levels, and continued investment in the United States

as well as other North American locations. Both NAFTA and the strong U.S. economy have

contributed to these developments.
39 In addition to NAFTA, Mexico has free-trade agreements with Costa Rica, Nicaragua, Colombia,

Venezuela, Bolivia, and Chile.

40 U.S. Department of Commerce, International Trade Administration, Fourth Annual Report to

Congress, Impact of the North American Free Trade Agreement on U.S. Automotive Exports to Mexico

(and on Imports from Mexico), July 1998, p. 7, found at http://www.ita.doc.gov/industry/basic/

naftaauto98.html.

3-12

Table 3-5

Certain motor-vehicle parts:1 U.S. exports of domestic merchandise, imports for consumption,

and merchandise trade balance, 1995-98

(Million dollars)

Country 1995 1996 1997 1998

U.S. exports of domestic merchandise:

 Canada ....................... 18,568 18,952 21,057 22,195

 Mexico ....................... 5,911 5,824 7,833 7,586

 Japan ........................ 1,151 1,545 1,848 1,765

 Germany ..................... 816 788 835 832

 Other ........................ 7,123 7,419 8,273 7,681

 Total ...................... 33,568 34,528 39,847 40,061

U.S. imports for consumption:

 Canada ....................... 9,008 10,202 11,018 11,802

 Mexico ....................... 7,247 8,144 9,617 10,563

 Japan ........................ 7,380 6,963 6,511 6,900

 Germany ..................... 1,523 1,618 1,531 1,750

 Other ........................ 4,802 5,137 5,560 6,070

 Total ....................... 29,959 32,063 34,237 37,085

U.S. merchandise trade balance:

 Canada ....................... 9,560 8,750 10,039 10,393

 Mexico ....................... -1,336 -2,320 -1,784 -2,977

 Japan ........................ -6,229 -5,418 -4,663 -5,135

 Germany ..................... -707 -830 -696 -918

 Other ........................ 2,321 2,282 2,713 1,611

 Total ...................... 3,609 2,465 5,610 2,976

 

1

 The products covered in this group include body stampings, engines and parts, bumpers, brakes

and parts, gear boxes, axles, wheels, shock absorbers, radiators, exhaust systems, clutches, steering

wheels, wiring harnesses, seats and parts, and miscellaneous parts and accessories.

Note.—Calculations based on unrounded data; figures may not add to totals shown.

Source: Compiled from official statistics of the U.S. Department of Commerce.

As the number of preferential trade agreements negotiated by the Government of Mexico

with non-NAFTA trading partners increases, the attractiveness of Mexico as a manufacturing 

location will also increase.39 Currently, automakers have duty-free access to more countries from

their assembly facilities in Mexico than they do from their plants in the United States.40

Deborah McNay

(202) 205-3425

mcnay@usitc.gov

Laura Polly

(202) 205-3408

polly@usitc.gov
41 The television receiver and parts industry includes color television receivers, color picture tubes,

and parts of both. U.S. factories stopped producing black and white televisions in the 1970s.

3-13

Television Receivers and Parts

Despite the movement of all assembly of smaller screen (19 inches and under) television

receivers from the United States to Mexico, there is still significant and growing U.S. production of

television parts (such as color picture tubes) and larger screen television receivers. The North

American television receiver and parts industry41 began as a U.S. industry, with factories in the

United States fabricating all components and then assembling these components into complete

television receivers. Integration of the North American industry began in the 1960s and 1970s as

U.S. manufacturers sought to improve their cost competitiveness vis-a-vis imports from Asia by

opening factories in Mexico to take advantage of lower labor costs. Increasing competition led to

the movement of most assembly of North American television receivers from the United States to

Mexico. However, while U.S. color television receiver (CTV) production began to decline, U.S.

color picture tube (CPT) production and exports increased, reflecting related-party shipments of

CPTs to television receiver assembly plants in Mexico. Although the United States has faced a

trade deficit in this industry for a number of years, the deficit has declined in recent years as U.S.

sector exports (largely CPTs) increased by 75 percent during 1995-98, while imports increased by

only 7 percent.

Emergence of Mexico’s CTV Industry

During the 1960s, U.S. CTV producers began to face increasing competition from Asia,

most notably from Japan, leading U.S. producers to begin shifting the assembly of television

receivers to Mexico in 1968 to achieve greater price competitiveness. Sony, a Japanese CTV

producer, opened the first foreign-owned factory in the United States in 1972, and was followed by

other Asian and European companies, some building new factories and others acquiring U.S.

producers (table 3-6). In 1995, the U.S. television receiver and parts industry consisted of 14 CTV

manufacturers and 7 CPT manufacturers (all but Zenith were foreign owned), as well as a number

of component manufacturers. By 1999, only 7 CTV manufacturers and 6 CPT manufacturers

remained in the United States. With the purchase of Zenith by LG Electronics of Korea, the only

U.S.-owned CTV producer was Five Rivers Electronics Innovations, a company that bought and

operated a CTV plant formerly owned by Philips. An unknown number of component

manufacturers remain as well.

Table 3-6

Selected U.S. CTV manufacturer acquisitions, 1974-95

Year Acquiring company Headquarters Acquired company/brand

1974 .... Philips Netherlands Magnavox (consumer electronics business)1

1974 .... Matsushita Japan Quasar1

1976 .... Sanyo Japan Warwick

1981 .... Philips Netherlands Philco and Sylvania1

1988 .... Thomson France GE/RCA (consumer electronics business)1

1995 .... LG Electronics Korea Zenith1, 2

 

1

 This company’s CPT factories in North America were also acquired.

 

2

 LG acquired a majority interest in Zenith in 1995, and the outstanding interest in 1998.

Source: “Past Manufacturer Takeovers,” Television Digest, July 24, 1995, p. 16.
42 RCA was the first U.S. CTV company to establish a maquiladora operation in Ciudad Juarez under

Mexico’s Border Industrialization Program in 1968. RCA was acquired by Thomson in 1988 (table 3-6).

43 Yearbook of World Electronics Data 1998/9, Reed Electronics Research, 1998.

44 Printed circuit boards are components of CTVs on which electronic components such as resistors,

capacitors, and integrated circuits have been placed and connected. At one time, companies used women

(with small hands) in countries with low labor costs to “stuff” (place components on) the boards. Stuffing

has now been automated for boards produced in large volumes. Electron guns are components of CPTs

(continued...)

3-14

During this period, U.S. producers opened factories in Mexico to handle labor-intensive

operations. RCA built a picture tube plant in Mexico City in the 1960s to supply television

receiver producers in South America, and later to supply RCA’s subsequent CTV plants in

Mexico.42 More factories were built in Mexico by RCA and others to produce components for

television receivers and picture tubes assembled in the United States, then to assemble smaller

screen size CTVs for export to the rest of North America, primarily the United States, using U.S.-

made tubes. By the 1970s, Japan-based producers had established plants in Baja California for the

assembly of CTVs for the U.S. market, using both U.S.-made parts and components imported from

Asia.

By the late 1980s, North American assembly of television receivers with high labor content

(generally, those with screen sizes under 19 inches) had moved to Mexico primarily to take

advantage of the Maquiladora Program and more competitive wages, while design and R&D

facilities remained in the United States. Labor costs per CTV unit are fairly uniform across screen

sizes, but represent a greater share of the total cost of producing small screen sets compared with

large screen sets. The greater cost of transporting large-screen CTVs and the higher margins

associated with large-screen CTVs enabled U.S. manufacturers to remain competitive in the largescreen market. However, as more U.S. CTV factories closed, Mexican factories began making

some of the large-screen CTVs.

 Mexico produced CTVs valued at $3.2 billion in 1995 and $3.5 billion in 1998, of which

90 percent were exported to the United States. In the same years, the United States produced CTVs

valued at $5.1 billion and $4.9 billion, respectively.43 Although U.S. production value was greater,

Mexico produced a greater volume in 1998 -- almost 18 million units in Mexico versus about

11.5 million in the United States. Television receivers with a diagonal screen-size of 19 inches and

smaller account for the majority of televisions produced in Mexico, whereas all U.S. production is

of more expensive televisions with larger screen sizes (usually with diagonal screen sizes of 27

inches or greater). Although Canada produced $277 million of CTVs and a small volume of CPTs

in 1995, the sole CPT and CTV manufacturers in Canada had shut down by 1998.

Manufacturing Integration and Investment

The 22 CTV assembly plants and 11 CPT factories operating in North America in early

1999 are listed in table 3-7. U.S. television receiver manufacturers established assembly operations

in Mexico as early as 1967, under the auspices of the Border Industrialization Program. Initially,

factories in Mexico supplied U.S. CPT and CTV plants with subassemblies made from U.S. and

other imported components. By the time NAFTA was signed, every U.S. manufacturer of CTVs

had located at least one assembly plant in Mexico; some firms had other significant operations as

well, most notably the “stuffing” of printed circuit boards for CTVs and the production of electron

guns for CPTs.44 With the signing of NAFTA, the migration of CTV 
44 (...continued)

for which the labor content is also a significant cost factor.

3-15

Table 3-7

North American manufacturers of color picture tubes and color television receivers, 1999

Country of ownership Company name Plant location

Color picture tubes

Japan Hitachi Greenville, SC

Matsushita Troy, OH

Sony San Diego, CA; Pittsburgh, PA

Toshiba Horseheads, NY

Korea Daewoo Sonora, Mexico

Samsung Tijuana, Mexico

France Thomson Marion, IN; Lancaster, PA; Mexico City, Mexico

Netherlands Philips Ann Arbor, MI

Color television receivers

Japan AKEI Vancouver, WA

Hitachi Tijuana, Mexico

JVC Tijuana, Mexico

Matsushita Tijuana, Mexico

Orion Princeton, IN

Sanyo Forest City, AR; Tijuana, Mexico

Sharp Memphis, TN; Rosarito, Mexico

Sony San Diego, CA; Pittsburgh, PA; Tijuana, Mexico;

Mexicali, Mexico

Toshiba Lebanon, TN

Korea Daewoo Mexicali, Mexico

LG/Zenith Mexicali, Juarez, and Reynosa, Mexico

Samsung Tijuana, Mexico

France Thomson Juarez, Mexico

Netherlands Philips Juarez, Mexico

United States Five Rivers Greenville, TN

Source: Thomson Consumer Electronics and interviews with company officials.

assembly from the United States to Mexico accelerated. Certain provisions of the NAFTA

agreement encouraged further integration of production in North America. For example, NAFTA

rules of origin require that CTVs claiming a tariff preference contain North American-made CPTs

to be considered of North American origin, thus fostering demand for U.S. CPTs and providing

economic incentive to retain existing U.S.-based picture tube plants. The rules of origin also

encouraged Japanese and Korean companies with television assembly plants in Mexico to purchase

CPTs from existing North American (U.S.) suppliers or to invest in new CPT production facilities

in the United States or Mexico.

The North American television receiver and parts industry is now well integrated between

Mexico and the United States, with low labor costs in Mexico continuing to attract operations

requiring higher labor content, primarily CTV assembly. The United States supplies CPTs to the

industry in Mexico from existing U.S. plants that would require investments in the tens to hundreds

of millions of dollars to replace. The limited size of the Canadian market coupled with relatively

high wages suggests that future CTV investment in Canada is unlikely.
45 Marlene Piturro, “The Asian Tigers are setting up shop in Mexico as a low-wage backdoor to the

U.S. and Canada,” Mexico Business July/August 1995, found at Internet address 

http://www.nafta.net/mexbiz/articles/asian.htm, retrieved Jul. 30, 1999.

46 Samsung Electronics, “Samsung in the World,” found at Internet address

http://www.samsung.com/corporate/tijuana.html, retrieved July 30, 1999.

47 “Daewoo to Sell Mexican Tube Plant,” Television Digest, Apr. 26, 1999, p. 14.

48 “Matsushita to Expand TV Production,” Television Digest, May 22, 1995, p. 13. Not all 16

production sites were involved in television receiver and parts production.

49 “JVC’s Mexico TV Plant,” Television Digest, May 29, 1995, p. 16.

50 “JVC Moving TV Manufacture from U.S. to Mexico,” Television Digest, Jan. 15, 1996, p. 7.

3-16

The industry continues to attract new investment from outside North America, most

notably from Korea, but the majority of this investment is going to Mexico. Within the past 4

years, Korean firms Daewoo and Samsung have built CTV and CPT factories in Mexico to

produce for the North American market. Daewoo, which had not previously had a factory in North

America, invested $31.9 million in factories in Sonora and Mexico City.45 In 1996, Samsung built

a $200-million factory complex in Tijuana and closed the CTV factory it had operated in the

United States since the mid-1980s.46 LG Electronics, another Korean company, acquired a

controlling interest in Zenith in 1996, only to close Zenith’s U.S. CTV factory in 1997, with

remaining assembly operations moved to Mexico. The Asian financial crisis may have slowed

further plans for Asian expansion into North America. By early 1999, Daewoo had announced that

it would sell off $7.5 billion in assets worldwide, including its CPT and PC monitor plant in

Mexicali, in an effort to revamp its debt-laden operations,47 and LG Electronics was considering

the sale of Zenith.

Japanese companies also have recently invested in North America, and followed the

pattern of CTV assembly in Mexico and tube production, sales, distribution, and administration in

the United States. In 1995, Matsushita announced plans to invest $127 million in expanding CPT

production in its Troy, Ohio, plant, in addition to the $1.4 billion it had already invested in 16

production sites in the United States beginning in the 1970s.48 In 1995, JVC began building a $36

million plant in Tijuana that initially made chassis for its CTV assembly plant in Elmwood, New

Jersey, as well as assembled complete CTVs.49 However, by 1996, JVC had closed its Elmwood

plant and moved all CTV assembly to Mexico.50 JVC distribution and marketing operations

continue to be performed in the United States.

European producers with CTV plants in the United States also have moved some

operations to Mexico. Due to competitive pressures, and coinciding with the expiration of a labor

contract, Thomson closed its U.S. CTV factory in the spring of 1998 and moved all remaining

CTV assembly operations to its three RCA plants in Ciudad Juarez, Mexico. Thomson continues

to operate a CPT plant in Indiana and maintain its design, marketing, administrative, and

distribution operations in the United States. Philips, another European-owned company with CTV

assembly operations in Ciudad Juarez, divested itself of its CTV assembly plant in Greenville,

Tennessee. The factory is now being managed by former Philips employees, and production is

being sold to Philips and other CTV distributors. Like Thomson, Philips’ design and administrative

operations remain in the United States.
3-17

Regional Trading Patterns

Most regional trade in this industry is accounted for by CPTs and other CTV parts

exported from the United States to Mexico for assembly into CTVs, generally of screen sizes under

27 inches, with the finished receivers being exported to the United States and Canada. The United

States also imports large volumes of CTV parts from Mexico for assembly into larger CTVs for

export to Mexico and Canada, as well as for domestic consumption. Trade with Mexico in color

television receivers and parts accounted for 47 percent of U.S. sector exports in 1998 and 73

percent of U.S. imports (table 3-8).

U.S. industry exports grew at an average annual rate of 21 percent during 1995-98 to

$3.8 billion, with Mexico and Canada accounting for 57 percent of 1998 exports (table 3-8).

Picture tubes and CTV parts accounted for 76 percent of U.S. exports in 1998, with the majority

going to Mexico. Canada was a significant market only for U.S.-made large-screen televisions,

accounting for about one-third of U.S. exports in 1998. Exports of television receivers and parts to

Mexico during this period almost doubled to $1.8 billion. CPTs sent to CTV assembly plants in

Mexico rose to $1.4 billion in 1998 and accounted for 90 percent of the increase in sector exports

to Mexico during 1995-98.

U.S. imports of television receivers and parts rose from $5.4 billion to $5.8 billion during

1995-98, a 2.3-percent average annual rate of increase (table 3-8). Imports of CTVs rose from

$3.7 billion to $4.7 billion during 1995-98, accounting for 81 percent of sector imports in 1998, as

U.S. CTV producers shifted more final assembly to Mexico and lost market share to Japanese or

Korean producers with assembly plants in Mexico. Mexico accounted for 73 percent of U.S.

imports of all sector products in 1998 and 77 percent of CTV imports. U.S. imports of CPT parts

also increased, to supply CPT producers which in turn supplied CTV factories in Mexico. While

imports of CTVs from Mexico increased during 1995-98, imports of CTV parts from Mexico

decreased by $320 million (46 percent), as parts formerly destined for U.S. factories were instead

consumed in Mexican factories.

Canada produces no goods in this industry. Canada imported over $616 million in CTVs

in 1998, with $292 million from Mexico and $269 million from the United States. As U.S. CTV

production continues to decline, it is likely that Mexico will provide a greater share of Canadian

consumption.

Implications for the Competitiveness of the North American

Television Receiver and Parts Industry

The North American industry appears to have a good future ahead of it with two caveats. 

U.S. CPT production is likely to remain strong and continue growing as long as cathode-ray tubes

(CRT) remain the dominant display technology. New flat-panel display (FPD) technologies such as

plasma displays are thought to be the display technology of the future. Large screen plasma display

television receivers produced in Japan are now on the market, although at prices that are not

competitive with CRT-based displays. If and when plasma or other flat-screen displays become

cost-competitive, it is likely that demand for CPTs will decline. There is minimal U.S. production

of flat-screen displays, and it is unlikely that foreign producers will invest in factories in the United

States. Entry into the FPD market can be difficult because of the financial resources and the

technological expertise required. In addition, because of the existence 
3-18

Table 3-8

Color television receivers and parts: U.S. exports of domestic merchandise, imports for

consumption, and merchandise trade balance, 1995-98

(Million dollars)

Country 1995 1996 1997 1998

U.S. exports of domestic merchandise:

 Mexico ....................... 902 1,218 1,476 1,780

 Japan ........................ 60 59 91 439

 Malaysia ...................... 47 58 54 28

 Thailand ...................... 5 7 21 11

 Canada ....................... 419 348 357 387

 Other ........................ 750 843 1,026 1,171

 Total ....................... 2,183 2,533 3,025 3,816

U.S. imports for consumption:

 Mexico ....................... 3,278 3,456 3,562 4,265

 Japan ........................ 668 388 294 276

 Malaysia ...................... 522 491 466 485

 Thailand ...................... 259 219 364 434

 Canada ....................... 112 105 13 11

 Other ........................ 598 503 353 352

 Total ....................... 5,437 5,162 5,052 5,823

U.S. merchandise trade balance:

 Mexico ....................... -2,376 -2,238 -2,086 -2,485

 Japan ........................ -608 -329 -203 163

 Malaysia ...................... -475 -433 -412 -457

 Thailand ...................... -254 -212 -343 -423

 Canada ....................... 307 243 344 376

 Other ........................ 152 340 673 819

 Total ....................... -3,254 -2,629 -2,027 -2,007

Note.—Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.

of very extensive product qualification procedures, a new entrant is likely to experience a

considerable time lag before it can begin commercial production.

The Mexican CTV industry likely would decline as well if display technology moves

towards FPDs, although at a slower rate. CRT technology will likely remain the display technology

of choice for smaller screen television receivers where price is the dominant factor. Smaller screen

televisions accounted for 40 percent of the U.S. market in 1998 in terms of number of televisions

sold to dealers. That share is expected to decline as consumers continue to move up to larger screen

sizes. That trend will benefit U.S. production of television receivers (all of which is of larger screen

sizes) vis-a-vis production in Mexico until FPD televisions (imported from Japan) become a

dominant market force.

The end of duty drawbacks (refund of customs duties paid) also might have a favorable

impact on the North American industry. Effective January 1, 2001, companies (particularly

Korean and Japanese firms) that assemble television receivers and parts in Mexico and export

those products under NAFTA to the United States or Canada will have to pay import duties (and

cannot claim refunds) on any components or materials that did not originate in North America.

Companies using non-North American inputs (the bulk of inputs are of North American origin)

may react in different ways depending on the value of the non-North American content. Some firms
51 Journal of Commerce Online, “Y2K + 1 adds up to headache: ‘01 NAFTA customs shift could

imperil maquiladoras,” found at Internet address http://www.joc.com/issues/current/p1age1/e22449.htm,

retrieved May 7, 1999.

52 Ibid.

53 Unlike most other products, statistics on imports of apparel under HTS 9802.00.80 and 9802.00.90

provide an accurate gauge of production sharing in the apparel sector. Since apparel from Mexico and the

Caribbean Basin were dutiable in 1998, there was an incentive to use the production-sharing tariff

provisions when importing apparel.

54 The 1984 CBERA grants duty-free entry to most categories of goods from 24 beneficiary countries. 

While most textiles and apparel are statutorily excluded from duty-free entry under CBERA, garments

assembled in selected CBERA countries from U.S. fabrics are eligible for preferential market access, as

discussed in the section “Competition Between Principal Sources.”

55 American Textile Manufacturers Institute, “International Trade,” Textile HiLights, Dec. 1998,

Washington, DC, pp. 1-v, and “Low Cost Imports Still Staggering Industry,” Southern Textile News,

June 7, 1999, p. 12.

3-19

may maintain the status quo and pay the additional tariff on parts from outside North America.

Others may switch to alternative sources within North America. Further, some companies may

relocate Mexican factories to the United States (because U.S. tariff rates on non-NAFTA television

components will be lower in 2001 than Mexican tariff rates) or to other nearby countries that are

eligible for duty-free treatment under the Generalized System of Preferences, or the Caribbean

Basin Economic Recovery Act.51 The Government of Mexico is also said to be giving serious

consideration to possible “competitiveness cuts” in external tariffs in order to keep factories in

Mexico that consume imported materials.52

John Kitzmiller

(202) 205-3387

kitzmiller@usitc.gov

Apparel

The growth in U.S. imports of apparel under the production-sharing provisions of HTS

chapter 9853 slowed significantly during 1998, increasing by 13 percent ($1.4 billion) over the

1997 level to $12.9 billion, compared with a 30-percent increase in 1997 (table 3-9). Nonetheless,

imports under the production-sharing provisions continued to grow faster than total U.S. apparel

imports, which rose by 11 percent to $53.6 billion in 1998. As a result, the share of total 1998

apparel imports accounted for by imports under the production-sharing provisions reached a high

of 24 percent. Industry sources suggest that the 1998 slowdown in the growth of imports under the

production-sharing provisions, which come almost entirely from Mexico and beneficiary countries

under the Caribbean Basin Economic Recovery Act (CBERA),54 was attributable to increased

competition from countries in Asia whose currencies fell in value relative to the U.S. dollar during

the Asian economic crisis.55 The currency devaluations effectively reduced U.S. dollar prices of

their goods in the U.S. market. Excluding China, which is the largest source of U.S. apparel

imports and which did not devalue its currency during the crisis (and whose shipments to the 
3-20

Table 3-9

Apparel:1 U.S. imports for consumption, total and under the production-sharing provisions (PSP)

of HTS Chapter 98, by principal suppliers (based on the value of U.S. components contained in HTS

PSP imports in 1998), 1995-1998

(Million dollars)

Country 1995 1996 1997 1998

 Total imports 

Mexico ........................ 2,658 3,663 5,140 6,586

Dominican Republic .............. 1,744 1,762 2,223 2,349

Honduras ...................... 919 1,220 1,661 1,875

El Salvador .................... 583 721 1,052 1,170

Costa Rica ..................... 756 706 844 827

Jamaica ....................... 531 505 471 422

Guatemala ..................... 691 809 976 1,150

Haiti .......................... 76 103 143 225

Colombia ...................... 370 316 350 364

Nicaragua ..................... 74 142 182 232

All other ....................... 31,005 31,494 35,169 38,374

Total ....................... 39,408 41,443 48,212 53,574

CBERA countries ................ 5,461 6,042 7,616 8,307

 Production-sharing imports under HTS Chapter 98 

Mexico ........................ 2,331 3,033 4,204 5,187

Dominican Republic .............. 1,565 1,601 2,060 2,154

Honduras ...................... 675 970 1,362 1,586

El Salvador .................... 477 588 894 1,006

Costa Rica ..................... 670 646 793 791

Jamaica ....................... 448 437 425 382

Guatemala ..................... 520 579 651 706

Haiti .......................... 74 96 134 211

Colombia ...................... 271 212 257 253

Nicaragua ..................... 18 33 44 67

All other ....................... 710 649 665 599

Total ....................... 7,758 8,845 11,491 12,939

CBERA countries ................ 4,507 5,009 6,421 6,949

 U.S. content of imports under HTS Chapter 98 

Mexico ........................ 1,637 2,120 2,849 3,368

Dominican Republic .............. 989 1,009 1,294 1,358

Honduras ...................... 479 688 972 1,130

El Salvador .................... 260 332 533 580

Costa Rica ..................... 443 444 529 524

Jamaica ....................... 363 350 347 309

Guatemala ..................... 258 275 298 305

Haiti .......................... 51 67 98 155

Colombia ...................... 169 123 153 148

Nicaragua ..................... 8 14 27 47

All other ....................... 108 103 112 99

 Total ....................... 4,765 5,526 7,211 8,024

CBERA countries ................ 2,888 3,215 4,132 4,438

 

1

 Includes apparel of textile materials, such as cotton, wool, manmade fiber, or silk fabrics, and nontextile materials, such as

fur, leather, and plastics. Excluded are nonwoven (disposable) garments.

Note.—Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
56 U.S. apparel imports from Asia (excluding China) had fallen by 2 percent in 1996, the year before

the onset of the Asian economic crisis and major currency devaluations. 

57 Based on official statistics of the U.S. Department of Commerce, the trade-weighted average duty

on apparel in 1998 was 15.8 percent ad valorem, compared with about 3 percent for other products.

58 NAFTA also accords preferential tariff treatment to certain goods from Mexico that do not satisfy

NAFTA’s rules of origin. Such goods may be granted preferential tariff treatment up to specified annual

quantitative “tariff preference levels” (TPLs). 

59 The United States currently has GALs and regular quotas with six CBERA countries--Costa Rica,

the Dominican Republic, El Salvador, Guatemala, Honduras, and Jamaica.

3-21

United States fell by 4 percent to $7.2 billion in 1998), apparel imports from Asia rose by 12

percent ($2.5 billion) to $23.1 billion in 1998, following an increase of 10 percent in 1997.56

In 1998, U.S. apparel imports from Mexico under the production-sharing provisions grew

by 23 percent ($983 million) over the 1997 level to $5.2 billion, and those from CBERA countries

rose by 8 percent ($528 million) to $6.9 billion. However, the 1998 increases for both Mexico and

CBERA countries were much smaller than their respective 1997 gains of 39 percent and 28

percent, and they represented the smallest annual growth rates for these countries’ shipments

during the period that NAFTA has been in effect. Production-sharing trade also accounted for most

of the apparel imports from these countries in 1998–84 percent of the total for CBERA countries

and 79 percent for Mexico. 

U.S. apparel producers have expanded their use of assembly operations in CBERA

countries and Mexico to reduce costs. These countries offer competitively priced labor to perform

the labor-intensive sewing tasks, and their proximity to suppliers and markets in the United States

enables U.S. firms to maintain greater management control over production. By moving assembly

operations to CBERA countries and Mexico, U.S. firms save on labor costs and obtain quicker

turnaround than importing from Asia. Moreover, CBERA countries and Mexico benefit from

preferential access to the U.S. market for apparel assembled from U.S. components. 

The apparel sector is the major beneficiary of duty savings for all goods imported under

the production-sharing provisions of HTS chapter 98, reflecting the high U.S. duty rates for

apparel and the significant share of the total value of the imported apparel accounted for by dutyfree U.S.-origin components.57 The sector accounted for 77 percent ($1.6 billion) of the total duty

savings in 1998 (table B-17), compared with 59 percent in 1997. The share of the total value of

production-sharing imports accounted for by duty-free, U.S.-cut components was 62 percent ($8.0

billion) in 1998, compared with 28 percent for all other products. 

Competition Between Principal Sources

Competition between CBERA countries and Mexico for assembly work from U.S. apparel

firms changed with the implementation of NAFTA in 1994. Under NAFTA, U.S. apparel imports

from Mexico that are assembled from “fabric wholly formed and cut in the United States” (often

referred to as 807A imports) are eligible to enter free of duty and quota under HTS heading

9802.00.90.58 In 1998, such garments totaled $4.2 billion and accounted for 63 percent of U.S.

apparel imports from Mexico. These imports compete directly with most apparel imports from

CBERA countries entered under HTS heading 9802.00.80. Although garments from CBERA

countries assembled from U.S.-formed and cut fabrics are eligible to enter under preferential

quotas known as guaranteed access levels (GALs),59 they are still subject to duty on the value
60 For every $10 in f.o.b. value, a typical CBERA garment entered under the production-sharing tariff

provisions contains $6.40 in duty-free U.S. parts and $3.60 in dutiable, foreign value-added. Applying the

1998 trade-weighted average duty on apparel of 15.8 percent to the foreign value added yields an average

duty of $0.57, or an effective average ad valorem equivalent of 5.7 percent.

61 Mercedes Cortazar, “Honduras Continues to Lead Central America,” Apparel Industry

Internacional, found at Internet address http://www.aiimag.com/aiieng/archives/1198/nstor2.html,

retrieved Mar. 24, 1999.

62 Textile trade consultant, telephone conversation with USITC staff, Jan. 22, 1999. See also Paula L.

Green, “Mexico Leading the U.S. Import Parade,” Journal of Commerce, Sept. 9, 1999, found at Internet

address http://www.joc.com/issues/current/t1rade/e43461.htm, retrieved Sept. 9, 1999.

63 “Maquila Scoreboard,” Twin Plant News, vol. 15, No. 2, Sept. 1999, p. 63.

64 Manager of a Mexican sewing contracting firm, telephone interview with USITC staff, June 12,

1998.

65 Bureau of Labor Statistics, “National Employment, Hours, and Earnings: Apparel and other Textile

(continued...)

3-22

added offshore.60 In addition, Mexico benefitted from the substantial devaluation of the peso in

December 1994 relative to the dollar, which effectively reduced dollar prices of its goods in the

U.S. market. Industry sources in some CBERA countries have expressed concern that while their

currencies have remained fairly stable, devaluations in the Mexican peso during the past couple of

years have exacerbated their price disadvantages with Mexican apparel exports.61

NAFTA trade preferences and peso devaluations have helped Mexico expand its apparel

shipments to the United States faster than the CBERA countries during 1995-98. U.S. apparel

imports from Mexico under the production-sharing provisions rose by an average annual rate of 31

percent during 1995-98, compared with an average annual growth rate of 16 percent for such

imports from CBERA countries. Some U.S. industry sources have claimed that NAFTA trade

preferences granted to U.S. imports of apparel from Mexico have caused trade and investment to

be diverted from CBERA countries to Mexico.62 To address this situation, legislation introduced in

the U.S. Congress in 1999 would provide, in addition to other economic assistance, NAFTAequivalent treatment for certain sector goods and other articles exempted from duty-free entry

under the CBERA. On November 3, 1999, the Senate approved by a vote of 76 to 19 a package of

trade bills (H.R. 434, as amended, the Trade and Development Act of 1999) that incorporated the

text of the United States-Caribbean Basin Trade Enhancement Act (S. 1389), which would provide

additional trade benefits to beneficiary countries of the Caribbean Basin, including elimination of

duties and quotas on certain apparel articles assembled from U.S. fabrics and yarns. The next step

in the legislative process is the conference between Senate and House conferees to reach a final

agreement on differing Senate and House versions of H.R. 434.

Recent Developments in Major Country Sources of Apparel

Mexico

Apparel manufacturing operations in Mexico continue to expand rapidly. As of March

1999, 934 textile and apparel maquiladoras (almost one-third of all Mexican maquiladoras)

employed 232,745 workers,63 up from 797 plants and 189,000 workers in the preceding year.

Although wage rates for apparel workers in Mexico vary widely by region according to local labor

supply and demand,64 the national average hourly wage rate for such workers in 1998 was $1.51

compared with an average hourly wage of $8.52 for U.S. apparel workers.65 
65 (...continued)

Products,” found at Internet address http://146.142.4.24/cgi-bin/dsrv, retrieved Sept. 29, 1999.

66 Some industry sources claim that the Asian economic crisis, accompanied by currency devaluations

and lower-cost Asian imports, expedited the movement of textile and apparel manufacturing to Mexico in

1997 and 1998 (see Kurt Salmon Associates Capital Advisors, “Moving to Mexico -The Battle Against

Low Cost Asian Imports,” Textile Transactions & Trends, Summer 1999, pp. 1-2). Representatives of

several leading U.S. fabric manufacturers also have asserted that by establishing integrated manufacturing

in Mexico, they are helping to recapture business previously lost to Asian competitors. (Government

affairs representative of a leading U.S. apparel fabric producer, telephone interview with USITC staff,

Aug. 24, 1999).

67 Consumers and retailers have been conditioned to declining real prices for apparel and textile goods

(see John S. Pickler, “Offshore Trends and Company-Specific Issues Masking Favorable Demand - Hold,”

Textile and Apparel Trends - July Monthly, Prudential Securities, July 30, 1999, p. 29, and S. Gray

Maycumber, “Knitters Facing Changes in Rough Market,” DNR, Mar. 9, 1999, p. 12).

68 Kurt Salmon Associates Capital Advisors, “Moving to Mexico - The Battle Against Low Cost

Asian Imports,” Textile Transactions & Trends, Summer 1999, p. 2.

69 Industry sources claim that the backing of the Mexican Federal and local governments was

instrumental in helping to develop the resources needed to establish and launch NuStart, a “textile city”

near Cuernavaca in the State of Morelos. (Government affairs representative of a major textile

(continued...)

3-23

The share of total apparel imports from Mexico entered under the production-sharing tariff

provisions declined by 9 percentage points during 1995-98, to 79 percent. The decline in the

relative importance of these imports from Mexico is expected to continue because most apparel

imports from Mexico became duty-free under NAFTA on January 1, 1999, which reduced the

incentive to declare eligibility for entry into the United States under the provisions. The decline

may also reflect a relatively new and believed to be growing shift in trade from sewing-only

assembly operations to vertically integrated manufacturing, in which more value-added operations

such as fabric manufacturing and cutting are taking place in Mexico.

Movement Toward Vertically Integrated Manufacturing

Although U.S. apparel producers have increasingly shifted sewing operations offshore,

capital-intensive fabric manufacturing has remained in the United States. In recent years, however,

several leading U.S. apparel fabric manufacturers have established or have announced plans to

invest in fabric manufacturing operations in Mexico. Some of these facilities will be fully vertically

integrated, producing thread and yarn from raw materials, weaving fabric, processing the fabric,

cutting, and sewing the apparel, while other facilities are being developed in coordination with

partner companies that will specialize in fabric processing, cutting, and/or apparel production,

forming an integrated manufacturing network. The primary aim of establishing these facilities is to

enhance their competitiveness by servicing their apparel customers’ offshore operations and

avoiding losing business to Asian competitors.66 Full vertical integration guarantees textile

manufacturers of a market for their fabric. The developments in both the U.S. and Mexican

markets that are stimulating the trend toward vertically integrated manufacturing in Mexico as well

as integrated manufacturing networks include--(1) continued pricing pressures;67 (2) the emergence

of stronger vendor-supplier relationships in the U.S. textile and apparel market, motivating textile

vendors to service clients who are increasingly moving to offshore locations; (3) simplified logistics

and quick product delivery, increasingly important as the time line of the apparel supply chain has

declined from 34-40 weeks to 15-20 weeks;68 (4) Mexican Federal and local government support

and financial assistance for enhancing the infrastructure needed for competitive textile and apparel

manufacturing (e.g., transportation, utilities, communications, and skilled labor);69 (5) retailers’
69 (...continued)

manufacturer, telephone interview with USITC staff, Aug. 24, 1999.) 

70 Full package apparel services typically refer to the type of sourcing arrangements that can provide

the entire range of garment manufacturing from apparel design to all steps of textile production to

distribution of the finished garment or any combination of these operations. In Mexico, full package

services may refer to any package of services that goes beyond just the sewing of garments.

71 Industry sources claim that some apparel producers will no longer manufacture the garments they

sell but will solely be marketing companies with a label and brand (Source Relations Manager of a major

U.S. apparel producer, conversation with USITC staff, Feb. 17, 1999). This development has in turn

prompted several U.S. fabric manufacturers to expand vertically into garment manufacturing in Mexico

(Government affairs representative of a leading U.S. apparel fabric producer, Aug. 23, 1999). In January

1998, the Sara Lee Corp. announced its decision to divest most of its fabric manufacturing, finishing, and

cutting operations (see Sara Lee Corp., “Sara Lee Corporation De-Verticalizes United States Yarn and

Textile Manufacturing,” news release posted Jan. 5, 1998, found at Internet address

http://www.saralee.com/corporate/corpnews/pr010598.htm, retrieved June 17, 1998). The shift of apparel

companies from production to marketing is reminiscent in the Central American context of United Fruit,

which for the most part has ceased growing bananas and now purchases bananas from Central American

growers and ships them to global markets. This strategy reduces the fixed costs of U.S. companies as well

as their exposure to political risks. 

72 Some U.S. textile manufacturers claim that although U.S. manufacturers have not yet significantly

increased their sales to the Mexican market as a result of NAFTA, because of Mexico’s much lower

income levels, it is critical to set up Mexican operations in anticipation of this long-term potential. 

(Representative of a major U.S. textile manufacturer, interview with USITC staff, Aug. 23, 1999).

73 Ibid.

74 Ibid.

3-24

growing demand for full package apparel services as one-stop shopping becomes more important;70

(6) a shift away from manufacturing by major apparel companies to focus on marketing and brand

creation, encouraging textile producers to begin making apparel to ensure a market for their

products;71 and (7) U.S. textile manufacturers’ recognition of the long-term potential of selling

textiles and apparel to the Mexican market and to its Latin American neighbors with which Mexico

has preferential trade agreements.72

The principal forms of vertically integrated textile operations established or being planned

in Mexico are highlighted in table 3-10. The prevalence of joint ventures in the emergence of

vertically integrated textile operations reportedly is attributable in part to Mexican interest in

acquiring U.S. management expertise.73 Although Mexican textile manufacturing operations

increasingly use state-of-the art technology and can produce quality goods, industry sources

indicate they do not yet meet the high standards of customer service and delivery demanded by U.S.

customers.74 Joint ventures allow Mexican firms the opportunity to develop such expertise. 

Another form of vertically integrated textile operations in Mexico is the multiparty

partnership. NuStart, a nonprofit partnership launched in 1997 and located in Cuernavaca,

Morelos, is serving as the prototype for other textile industrial complexes. Burlington Industries,

Guilford Mills, Dupont-Akra Polyester, and Alpek S.A. de C.V. (Mexico) joined as founders of a

nonprofit partnership to establish NuStart, which now houses seven U.S., Mexican, and Canadianowned facilities--including Unger Fabric, a U.S. manufacturer of sports clothing;
3-25

Table 3-10

U.S. textile and apparel firms with current or planned integrated manufacturing operations in

Mexico as of September 1999

U.S. company

(location)

Mexican partner or

operation (location)

Business type/

Start up

Types of manufacturing

operations

Burlington

Industries, Inc.

(Greensboro, NC)

Textiles Morelos

(Cuernavaca, Morelos)

Mexican jeans-sewing

facility (Aguascalientes,

Aguascalientes)

Hilos de Yecapixtla

(Yecapixtla, Morelos)

Burlmex Denim

(Yecapixtla, Morelos)

Casimires Burlmex

(Yecapixtla, Morelos)

NuStart Industrial Park

(Cuernavaca, Morelos)

Denim-processing plant

(Chihuahua)

Mexican subsidiary;

1944

Acquisition from Lucky

Star Industries; 1998

Joint venture with

Parkdale Mills; 1998

Unit of Burlington

Global Denim division;

1999

Unit of Burlington

Tailor Fashions; 1999

Nonprofit partnership

with Guilford Mills,

DuPont S.A. de C.V.,

and Alpek S.A. de C.V.;

1999

50/50 joint venture with

International Garment

Processors; 1999

Originally produced apparel

products and home

furnishings for the Mexican

market. Now exports to the

United States.

Produce sewn garments

from Burlington fabrics. 

Handle final wet processing

and finishing of jeans.

Produce cotton yarns for

fabric woven at Yecapixtla

ring-spun denim facility.

Produce ring-spun denim

fabrics for jeans and related

sportswear.

Produce wool worsted and

wool blend fabrics for men’s

and women’s slacks/suits.

Deliver apparel fabrics and

finished garments to

customer’s specifications.

Offer full package of

garment-making services:

stonewashing, enzymewashing, and sand blasting

of denim jeans.

Cone Mills

Corporation

(Greensboro, NC)

Parras Cone de Mexico

(Parras, Coahuila) 

Maquilas Y Confecciones

Deborah/Starlite

(Puebla)

Mexican textile and

apparel industrial park

(Altamira, Tamaulipas)

Joint venture with

Compania Industrial de

Parras; 1995

Joint venture for textile

park infrastructure

development; 1999

Joint venture with

Guilford Mills; 2000

Produce high quality denim.

Provide full package

apparel services; Cone

produces fabrics and

apparel, Deborah/Starlite

responsible for wet

processing, distribution and

marketing.

Produce ring-spun denim.
3-26

Table 3-10—Continued

U.S. textile and apparel firms with current or planned integrated manufacturing operations in

Mexico as of September 1999

U.S. company

(location)

Mexican partner or

operation (location)

Business type/

Start up

Types of manufacturing

operations

Dan River, Inc.

(Danville, VA)

Grupo Industrial Zaga

(location not yet

determined)

Joint venture; 2000 Opening, spinning, yarn

dyeing, weaving, and

finishing operations to

produce fine and medium

yarn count shirting fabrics.

DuPont-Akra

Polyester

(Charlotte, NC)

NuStart Industrial Park

(Cuernavaca, Morelos)

Alpek S.A. de C.V and

Tejin Limited

(Monterrey, Nuevo Leon)

Alpek S.A. de C.V.

(Altamira, Tamaulipas)

Nonprofit partnership

with Cone Mills,

Guilford Mills, and

Alpek S.A. de C.V.;

1999

Joint venture; 1999

Joint venture; 2000

Produce polyester staple

fiber for apparel fabrics.

Produce polyester staple

fiber for apparel fabrics.

Produce polyester staple

fiber for apparel fabrics.

Galey and Lord

(New York, NY)

Dimmit Industries, S.A.

(Piedras Negras, Coahuila)

Acquisition; 1996 Full-service finished

garment production of

pants and shorts.

Guilford Mills, Inc.

(Greensboro, NC)

American Textil

(Mexico City, Mexico)

NuStart Industrial Park

(Cuernavaca, Morelos)

Textile and apparel

industrial park

(Altamira, Tamaulipas)

Mexican subsidiary;

1997

Nonprofit partnership

with Cone Mills, 

DuPont S.A. de C.V.,

and Alpek S.A. de

C.V.; 1999

Joint venture with

Cone Mills; 2000

Produce apparel and

automotive fabrics.

Produce and deliver

apparel fabrics and

finished garments to

customer’s specifications

from a garment service

center.

Knitting, dyeing, and

finishing of apparel

fabrics.

Tarrant Apparel

Group

(Los Angeles, CA)

Grupo Famian

(Tehuacan, Puebla)

Acquisition; 1999 Provide finished apparel

package production (cut,

sew, launder, finish, and

pack).

Source: Annual reports,10-Ks, websites, press releases of listed companies, and USITC staff telephone 

conversations with representatives of listed companies.
75 Kurt Salmon Associates Capital Advisors, “Moving to Mexico - The Battle Against Low Cost

Asian Imports,” Textile Transactions & Trends, Summer 1999, p. 2.

76 S. Gray Maycumber, “DuPont Changes Its Role in Fiber Arena: Long-time Leader Goes From Lone

Ranger to Team Player in Joint Ventures,” DNR, May 3, 1999, p. 17.

77 Deborah/Starlite, Cone Mills’ partner in creating a full package apparel alliance, has a state-of-theart vertical knit operation, which is a leading facility among Mexican companies in its use of automated

cutting, modular manufacturing, and production monitoring systems (see “Cone Mills Announces Apparel

Alliance,” Online Textile News, June 25, 1999, found at Internet address

http://www.onlinetextilenews.com/news, retrieved July 6, 1999).

78 Government affairs representative of a leading apparel fabric manufacturer, telephone interview

with USITC staff, Aug. 23, 1999.

79 According to SECOFI, in December 1998, 603 textile and apparel firms had been established in

Mexico with foreign direct investment. Of the total, 55 firms or 9.1 percent were Korean owned and 15

firms or 2.5 percent were Chinese owned. Taiwan corporations have also invested in Mexico’s textile

industry but data are not available on these operations since Taiwan facilities in Mexico have been

established as U.S. subsidiaries and are counted as U.S. firms (see SECOFI, “Direccion General de

Inversion Extranjera: Inversion Extranjera Directa en La Industria Textile,” Dec. 1998, and Henry Tricks

and Richard Lapper, “U.S.-Based Textiles Face Mexico Threat,” Financial Times, Mar. 31, 1999).

80 Information about Asian operations has been gathered through secondary sources including the

following: “Mexico Update,” Twin Plant News, May 1999, p. 9 and Mar. 1999, p. 8; “Mexico Offers

Growing Market,” Hong Kong Trader, June 1999; “U.S.-Based Textiles Face Mexico Threat,” Financial

Times, Mar. 31, 1999; and “Massive Mexican Investment,” Textile Asia, June 1998.

3-27

Phantom Industries, a Canadian manufacturer of swimming wear; and Cia. Industrial de Moda and

Festival Industries, Mexican apparel manufacturers. This partnership offers simplified production

logistics and speedier product delivery because complementary textile and apparel operations are

more strategically located. Such proximity also helps forge stronger vendor-supplier relationships

and allows Nu-Start’s partners to share resources and reportedly take advantage of economies of

scale.75

Dupont’s Mexican polyester staple fiber operations are implementing Dupont’s high-speed

spinning technology to create efficient, low-cost production.76 Several of the Mexican companies

with which U.S. textile manufacturers have entered joint ventures, or that they have acquired, are

Mexican industry leaders that have been at the forefront of technology applications.77 Since the

implementation of NAFTA, a growing number of Mexican textile and apparel manufacturers

sought domestic and foreign investment to upgrade their facilities and become globally competitive.

Currently, most if not all of the production occurring in NuStart and other facilities with vertically

integrated operations is exported to the U.S. market.78 Some companies, like Burlington, operate

facilities that produce for the Mexican or other markets.

The emergence of vertically integrated textile and apparel manufacturing operations in

Mexico is not limited to U.S. companies. A number of Asian firms are also establishing or

planning integrated manufacturing facilities in Mexico to take advantage of Mexico’s lower labor

costs, proximity to the United States, and preferential market access under NAFTA.79 The

following Taiwan firms have reportedly set up operations or have announced plans to build

vertically integrated manufacturing facilities in Mexico: (1) Hung Ho plans to create a textile

complex in the Yucatan, (2) Nien Hsing Textile Corporation is spending $132 million to build

denim and jeans production facilities in Ciudad Victoria, Tamaulipas, and (3) Tuntex, a major

Taiwan textile firm, announced plans to build a textile and petrochemical complex in Tampico,

Tamaulipas; although corporate financial difficulties reportedly have delayed these plans.80
81 In 1998, the hourly labor cost (including wages and other benefits) for the Dominican Republic’s

apparel industry was $1.48 (see Werner International Management Consultants, “Hourly Labor Cost in

the Apparel Industry,” New York, NY, Apr. 1999, and Fernando Capellan, “Parity with Mexico -

When?” Apparel Industry Internacional, Mar. 1999, found at Internet address http://www.aiimag.com/

aiieng/mar99stor5.html, retrieved May 20, 1999.

82 U.S. Department of State telegram No. 003131, “DR: USITC Annual Caribbean Basin Investment

Survey,” prepared by U.S. Embassy, Santo Domingo, July 13, 1999.

3-28

Figure 3-1

Apparel: U.S. content of imports under the production-sharing provisions of HTS Chapter 98, by

top suppliers, and by leading CBERA suppliers, 1998

CBERA

In 1998, the CBERA countries accounted for 55 percent of the total value of U.S.

components contained in apparel imports under the production-sharing provisions (figure 3-1) with

the Dominican Republic, Honduras, and El Salvador, the leading CBERA sources. The sustained

growth of these apparel imports from the Dominican Republic, whose shipments rose from $1.6

billion in 1995 to $2.2 billion in 1998, may be attributed not only to its proximity to the United

States, skilled labor, and competitive apparel labor costs,81 but also to its ongoing expansion of

foreign trade zone programs and incentives designed to attract foreign investment. During JulyDecember 1998, the Dominican National Free Zones Council approved approximately $18 million

in business startups, of which nine firms were in textile manufacturing.82
83 U.S. Department of State telegram No. 004740, “Part II - Hurricane Mitch Economic Damage,”

prepared by U.S. Embassy, Tegucigalpa, Dec. 13, 1998.

84 The hourly labor cost (including social benefits and fringes) for the Honduran apparel industry was

$0.91 (see Werner International Management Consultants, “Hourly Labor Cost in the Apparel Industry,” 

New York, NY, Apr. 1999).

85 U.S. Department of State telegram No. 002624, “Honduras 2000 - CCG’s Executive Summary,”

prepared by U.S. Embassy, Tegucigalpa, Aug. 5, 1999, and Value Line Publishing, “Oxford Industries,”

Value Line, Aug. 20, 1999, p. 1619.

86 U.S. Department of State telegram No. 001866, “USITC Annual Caribbean Basin Investment

Survey,” prepared by U.S. Embassy, San Salvador, June 2, 1999.

87 U.S. Department of State telegram No. 002250, “Differing Visions of El Salvador’s Maquila

Industry,” prepared by U.S. Embassy, San Salvador, June 22, 1999.

88 U.S. Department of State telegram No. 001400, “Salvadoran Free Trade Zone Expansion to Include

a City of Workers,” prepared by U.S. Embassy, San Salvador, Apr. 24, 1999.

89 U.S. Department of State telegram No. 145355, “Textiles: Request for Regional Fabric

Information,” Washington, DC, Aug. 3, 1999.

90 A number of firms based in Korea and Taiwan produce apparel in Central America for both local

consumption and export to the United States. Local sources report that Asian-made fabrics account for a

(continued...)

3-29

Honduras was the fastest growing CBERA supplier of U.S. apparel imports under the

production-sharing provisions during 1995-98. Its shipments rose by 132 percent to almost $1.6

billion (table 3-9), despite minor hurricane damage to apparel assembly plants in October 1998.83

U.S.-made components (U.S. content) contained in apparel imports under the production-sharing

provisions from Honduras more than doubled during 1995-98, rising from $479 million to $1.1

billion. U.S. apparel investment in Honduras has increased in recent years following ratification in

Honduras of its 1992 investment law combined with its free trade zones, low labor costs,84 and

reduced trade barriers. In 1998, U.S. investment in the Honduran apparel maquila sector totaled

an estimated $350 million.85 Leading U.S. apparel manufacturers that have invested in Honduras

include Fruit of the Loom, Buster Brown Apparel, Sara Lee, Best Form Foundation, Champion

Jogbra, Inc., Jockey International, Levi Strauss, Oxford Industries, Warnaco, and Williamson

Dickie Manufacturing. 

U.S. apparel imports from El Salvador under the production-sharing provisions more than

doubled during 1995-98, totaling $1.0 billion. Imports increased by only 13 percent in 1998

compared with a 52-percent rise in 1997. U.S. apparel companies with assembly operations in El

Salvador include Sara Lee, Fruit of the Loom, Brooklyn Manufactures, and Carolina Apparel

International. Factors cited as contributing to slower growth include increased competition from

Mexico as a result of NAFTA,86 competition from lower priced Asian apparel stemming from the

Asian financial crisis, and rising labor costs that are higher than those of the Dominican Republic

and the maquila sector of Mexico.87 Other constraints include El Salvador’s high real estate costs

and inadequate transportation infrastructure.88

There have been several legislative proposals to provide quota and/or duty benefits to

apparel produced in CBERA countries from fabric made in the CBERA region. In connection with

these proposals, the Department of State sent telegrams to U.S. embassies in the region seeking

information on the use of regional fabrics in CBERA production of apparel for export to the U.S.

market.89 As noted in table 3-9, U.S. apparel imports from CBERA countries under HTS

9802.00.80 in 1998 totaled $6.9 billion, or 83 percent of total apparel imports from CBERA

countries. The remainder of the CBERA apparel shipments (17 percent of the total, or $1.4

billion) reportedly consisted mostly of garments assembled from fabrics made in Asia.90 In
90 (...continued)

significant portion of the fabrics used in the Asian apparel operations in Central America. Most of the

Korean firms in Central America produce apparel in Guatemala and most of the Taiwan firms make

apparel in Honduras and El Salvador.

91 According to a trade source, Guatemala has 44 textile mills and 7 wet processing laundries. See

Brenda Lloyd, “Guatemala Government Extols Its Local Apparel Industry,” DNR, Apr. 24, 1999.

92 According to the U.S. Department of State, Guatemala and El Salvador are “where more active

textile [fabric manufacturing] industries operate” in the CBERA region. See U.S. Department of State

telegram No. 002301, “Textiles: Regional Fabric in Costa Rican Apparel Exports to the U.S.,” prepared

by U.S. Embassy, San Jose, Costa Rica, Aug. 31, 1999.

93 U.S. Department of State telegrams 003222, “Textiles: Request for Regional Fabric Information,”

prepared by U.S. Embassy, San Salvador, Sept. 17, 1999, and No. 002789, “Textiles: Regional Fabric

Information,” prepared by U.S. Embassy, Managua, Sept. 22, 1999.

94 U.S. Department of State telegram No. 002301, “Textiles: Regional Fabric in Costa Rican Apparel

Exports to the U.S.,” prepared by U.S. Embassy, San Jose, Costa Rica, Aug. 31, 1999.

95 For more information on the elimination of U.S. quotas on textiles and apparel, see USITC, Shifts

in U.S. Merchandise Trade in 1998 (investigation No. 332-345), USITC publication 3220, Aug. 1999, pp.

4-5 and 4-6.

96 In remarks attributed to Ed Van Wely, DuPont senior vice president, “The growth of the textile

business there [in Mexico] is substantially reducing the trend of Asian textile products coming into the

United States. It may actually reverse it...A lot of fabric and fiber production will move there, as well as

apparel. But it is also a way to increase the United States’ fiber and fabric production within NAFTA and

reduce trade away from North America.” (see S. Gray Maycumber, “DuPont Changes Its Role in Fiber

Arena,” DNR, May 3, 1999, p. 17).

3-30

addition, an unknown but believed-to-be small portion of the CBERA apparel shipments consisted

of garments made from fabrics manufactured in CBERA countries (“regional fabrics”). 

Guatemala 91 and El Salvador manufacture most of the regional fabrics used in CBERA production

of apparel for export to the United States.92 Regional fabrics accounted for about 7 percent ($60

million) of the raw materials used in El Salvador’s production of apparel for export to the United

States and about 15 to 18 percent of Nicaragua’s apparel exports to the United States.93 Costa

Rica has three mills producing knit or woven fabrics but there was no known recent use of local or

other regional fabrics in that country’s production of apparel for export to the United States.94 The

available information also shows that the use of regional fabrics in apparel imports from other

CBERA countries was small.

Implications for the Competitiveness of the

North American Textile and Apparel Industry

The long-term outlook for U.S. apparel production-sharing trade with CBERA countries is

somewhat clouded by U.S. WTO commitments to eliminate U.S. import quotas by 2005. The

ongoing phase out of U.S. import quotas under the WTO textile agreement will gradually erode the

preferences that CBERA countries now have under the GALs.95 As a result, U.S. producers may

gradually shift some of their assembly operations from CBERA countries to Mexico or source the

garments from Asia where there is little use of U.S. fabrics in apparel production.

As industry sources indicate, the evolution of fully integrated textile manufacturing in

Mexico suggests that the U.S. apparel and textile industries are increasingly viewing regional or

hemispheric manufacturing as the key to long-term survival.96 As many of these operations have

recently been established, it is too early to assess accurately their impact on the competitiveness of
97 In addition to its three joint ventures in Mexico, Cone Mills announced in July 1999 a plan to enter

a strategic alliance with Korasma, a Guatemalan firm reputed to be one of the most versatile apparel

manufacturers in Latin America. The alliance will reportedly offer customers full package apparel service

(fabrics, apparel manufacturing, technical expertise, and the handling of logistics) that includes one-stop

shopping. “Cone Mills Announces Strategic Alliance with Koramsa of Guatemala,” PR Newswire, July 7,

1999, Newscast Mail Alert.

98 Burlington Industries, “Burlington to Open Garment Service Center,” news release, June 1, 1998,

found at Internet address http://www.burlington.com/news/releases, retrieved Aug. 23, 1999.

3-31

the U.S. textile and apparel industries. According to major textile manufacturers like Burlington

Industries, Cone Mills,97 and Guilford Mills, however, the establishment of vertically integrated

operations in Mexico, as well as integrated manufacturing networks, is likely to help those firms

recapture some of the business previously lost to Asian competitors in the North American

market.98

Laura Rodriguez-Archila

(202) 205-3499

lrodriguez@usitc.gov

APPENDIX A

THE CUSTOMS TREATMENT OF

CERTAIN AMERICAN GOODS

RETURNED (HTS 9802.00.60, 9802.00.80,

AND 9802.00.90) AND “USER FEES”
 

1

 The CBERA requires that the cost or value of materials from one or more beneficiary countries plus the direct

costs of processing (including labor) therein must total 35 percent of the appraised value of goods for which dutyfree entry is claimed, and that the goods be a "product of" a beneficiary country. The cost or value of U.S.

materials (not counting those of Puerto Rico) may be counted toward that value threshold in an amount not to

exceed 15 percent of the finished goods' appraised value upon entry. See HTS general note 7.

 

2 See 19 C.F.R. 12.130(c)(1).

 

3 No blanket duty exemption for goods of U.S. origin—even those imported by or for most U.S. Government

agencies—is afforded elsewhere in the HTS; duties must generally be paid each time the goods are entered unless

the HTS specifies another tariff treatment. See general note 1 to the HTS.

 

4

 Goods described in heading 9802.00.80 are partially dutiable if the ordinary tariff provisions in chs. 1 through

97 provide for a duty rate other than "free," but no duty is payable on the U.S. content.

A-2

The tariff provisions discussed in this appendix provide conditional duty treatment to goods that

are exported from the United States, advanced in value or improved in condition abroad by assembly or

particular processes, and then entered into the customs territory. The duty reductions or exemptions so

accorded to eligible goods do not affect their classification in appropriate provisions of chapters 1 through

97 of the Harmonized Tariff Schedule of the United States (HTS); statistical data are “double reported”

using both “permanent” and chapter 98 tariff categories. The importer must claim chapter 98 duty

treatment pursuant to Customs Service regulations (including 19 C.F.R. 10.9, 10.11-10.26) and provide

any necessary information to show compliance. Subheading 9802.00.60 and heading 9802.00.80 of the

HTS were discussed in detail in earlier Commission reports on production sharing; these provisions, along

with heading 9802.00.90, can be found in the HTS. Current regulations should always be consulted by

importers, and rulings may be obtained concerning goods’ eligibility for and status under these provisions. 

The customs treatment available to goods resulting from qualifying Caribbean Basin assembly and

processing, the trade agreement status of these chapter 98 provisions and their relation to preferential tariff

programs, and the special access program are briefly outlined below. Last, a short update on the

merchandise processing (user) fee is included.

Caribbean Basin Assembly or Processing

Section 222 of the Customs and Trade Act of 1990 enacted U.S. note 2(b) to subchapter II of HTS

chapter 98 to provide duty rates for and the origin of U.S.-fabricated components, materials, or ingredients

exported for assembly or processing in a designated Caribbean Basin Economic Recovery Act (CBERA)

beneficiary country. Previously, some goods resulting from such assembly or processing could not qualify

under CBERA rules of preference for duty-free entry under provisions of HTS chapters 1 through 97

because (1) no substantial transformation in the beneficiary country was found to have occurred, so that the

good was not a “product of” an eligible country , or (2) inadequate value was added in or attributable to the

beneficiary country, or (3) the goods otherwise were considered preference-ineligible.1

The legal note sets two aspects of the customs treatment of these goods. First, these CBERAassembled goods are not to be deemed foreign articles; this legal language suggests by implication that the

goods have domestic (U.S.) origin, but Customs regulations do not so provide.2 Second, these goods are

not subject to duty upon entry into the U.S. customs territory.3 Though the duty treatment of such goods is

set forth in a tariff legal note, and not the rates-of-duty columns of tariff headings, the goods must be

entered under the pertinent chapter 98 provision. The legal note’s rate of duty is "free" instead of the duty

rates4 enacted by Congress for heading 9802.00.80; a nonlegal 10-digit statistical reporting number

(9802.00.8040) was created to record trade in assembled goods entered under the legal note. Congress has
 

5

 Pursuant to concessions negotiated in the Uruguay Round of multilateral negotiations, the duty rate for eligible

civil aircraft goods is bound at "free." A tariff binding is a stated ceiling: GATT contracting parties giving

bindings on individual tariff categories agree not to exceed the bound rates other than in circumstances provided

for in the GATT (such as actions taken for emergency balance of payments reasons). If a country exceeds a bound

rate in cases not covered by any GATT provision, other parties may initiate dispute settlement, undertake limited

retaliation, or request compensation. U.S. tariff bindings and other concessions are enumerated in schedule XX;

other numbered GATT schedules list the bindings and concessions of other contracting parties.

 

6

 The U.S.-Israel FTA provides that all goods described by and imported under these two HTS provisions must

be admitted free of duty, along with all other products of Israel (HTS general note 8).

A-3

considered proposals to create a discrete tariff provision for these goods, to clarify the requirements and to

simplify administration, but to date no such provision has been enacted.

Trade Agreement Status and Special Tariff Treatment

The column 1-general rates of duty in the chapter 98 production-sharing provisions, unlike most

general rates in HTS chapters 1 through 97, are not "bound" concession rates under Schedule XX to the

General Agreement on Tariffs and Trade (known as GATT 1994), except as they apply to goods certified

for use in civil aircraft.5 Thus, Schedule XX requires only that the United States somehow provide the

agreed duty treatment for these civil aircraft goods in the HTS. Nor are note 2(b), with its special

treatment for CBERA goods, or heading 9802.00.90 (see below) included in Schedule XX. Moreover,

because these tariff provisions fall in chapter 98—not part of the nomenclature structure of the Harmonized

Commodity Description and Coding System (HS)—the international convention establishing the HS does

not refer to or require them. Thus, these tariff rate lines are primarily domestic in their legal significance

and could be changed or repealed--though such an action would increase duties on the subject goods by

providing that the U.S. value in such goods would not be exempt. Two U.S. free-trade agreements--one

with Israel6 and the other with Canada and Mexico (the North American Free Trade Agreement or

NAFTA)--and the Automotive Products Trade Act (APTA) require that the United States provide and

continue this special duty treatment for eligible goods, however it may be reflected in the HTS. 

Accordingly, various Presidential proclamations have included preferential duty rates in column 1-special

for the production-sharing provisions of chapter 98 to carry out these U.S. obligations. Eligible goods

entered under the civil aircraft program are also accorded a “free” rate to meet GATT obligations.

On nonpreferential shipments covered by production-sharing provisions, the general duty rates

from the applicable tariff categories in chapters 1 through 97 must be paid on the declared foreign value,

including costs of labor. Many of these general rates are being reduced in annual stages pursuant to

Uruguay Round concessions. For shipments of preference-eligible goods imported under these chapter 98

provisions, HTS column 1-special states that the duty payable is computed by applying the otherwise

applicable special duty rate from chapters 1 through 97 to the foreign value. In most instances, the special

rate provided in chapters 1 through 97 for the eligible preference programs is “free” and no duty advantage

from claiming entry under chapter 98 would appear possible. The designated preference programs, as

indicated above, are the APTA, the Agreement on Trade in Civil Aircraft, the NAFTA, and the U.S.-Israel

FTA, under the terms of the corresponding general notes to the HTS. 
 

7 NAFTA-eligible goods of Canada enter free of duty as of January 1, 1998.

 

8

 See also subheadings 9906.98.02 and 9906.98.03 for provisions applicable to suit-type jackets that contain

foreign-origin interlining fabrics; these goods received duty-free entry through August 1999.

 

9 Commonly called the Multifiber Arrangement, or MFA. Under the Agreement on Textiles and Clothing of

GATT 1994, MFA-authorized quotas must be eliminated as of Jan. 1, 2005, fully integrating this sector into GATT

1994 disciplines. As restrictions are gradually removed under this agreement, the Special Access Program (SAP)

and other preferential regimes also lose their previous access advantages.

A-4

Where the column 1-special rate for goods of Mexico in provisions of chapters 1 through 97 is not

“free,”7 a different situation exists. If a good is eligible for a NAFTA tariff preference under the terms of

general note 12 as an originating good and qualifies to be marked under Customs regulations (19 C.F.R.

part 102) as a good of Mexico, the HTS indicates that importers can claim the “MX” special duty rate on

non-U.S. content from the normal tariff category for the goods. If Customs agrees that the goods originate

in North America, that special duty rate (other than “free”) would apply to the non-U.S.-origin part of the

shipment’s value, and the importer could claim the U.S. value as free of duty under chapter 98. However,

if goods originate in the NAFTA region but do not qualify to be marked as goods of a single NAFTA

country, Customs regulations provide that the special NAFTA rate of duty applicable to the last NAFTA

country of significant processing would be assessed on the foreign content. If the “marking rules” indicate

that an originating good is a product of the United States for NAFTA purposes, and the good was merely

advanced in value or improved in condition in another NAFTA country, the rate of duty for the last

NAFTA country of processing would be imposed. (See 19 C.F.R. 102.19.) In addition, a special tariff

category, heading 9802.00.90, applies only to textile and apparel articles assembled in Mexico from U.S.-

formed-and-cut fabric components and has a general rate of duty of “free” for qualifying goods; these

imports need not be originating goods under HTS general note 12.8 Similar customs treatment may be

given to certain goods covered by the CBERA or the Andean Trade Preference Act that have reduced rates

of duty (rather than “free” rates) in the special subcolumn. The other preference programs enumerated in

the chapter 98 provisions’ special subcolumn provide “free” rates of duty to eligible goods.

Special Access Program

Under the CBERA’s statutory exclusions, its tariff preferences cannot apply to textile and apparel

articles subject to textile agreements, although such goods--including those assembled in whole or in part

from U.S. inputs--are a significant part of trade with beneficiary countries. Pursuant to U.S. law (7 U.S.C.

1854 and pertinent regulations) and to bilateral arrangements negotiated under the former Agreement

Regarding Trade in Textiles,9 the United States negotiated bilateral agreements with many countries to limit

and/or monitor imports of enumerated textile and apparel products. The combined product scope of these

agreements as of the date of enactment of the CBERA is considered to define the boundaries of the

statutory exclusion from the CBERA tariff preference. Accordingly, goods of cotton, of wool/fine animal

hair, of man-made fibers, or of blends of those materials cannot enter free of duty under the CBERA. In

view of the impact of the exclusion from duty-free entry, a partial relaxation of otherwise applicable

restrictions is accorded by the United States in limited circumstances.

Statistical reporting number 9802.00.8015 is used by importers to enter "articles eligible pursuant

to bilateral textile agreements for entry under a Special Access Program and entered in compliance with
 

10 See HTS ch. 98, subch. II, for the legal text of the provisions and applicable notes, and Customs regulations at

19 C.F.R. 12.130-131. The Office of Textiles and Apparel of the U.S. Department of Commerce can be consulted

for further information.

 

11 Announced by President Reagan on Feb. 20, 1986, and implemented June 11, 1986 (51 FR 21208).

 

12 See HTS heading 9802.00.90 and the notes to section XI. The special regime was discussed in earlier

Commission reports on production sharing.

 

13 Ibid., pp. 1-2. New origin rules for this sector are based upon enumerated changes of tariff classification

(from inputs to more advanced goods); some administrative practices changed because of Customs’

implementation of the Uruguay Round Agreements Act. See 19 C.F.R. 102.21, as well as sections 12.130-12.132.

 

14 Caribbean Basin Initiative.

A-5

procedures established by the Committee for the Implementation of Textile Agreements (CITA)."10

Importers report the value of U.S.-fabricated components in the merchandise and the shipment's dutiable

value (total value less the value of U.S.-fabricated components), pursuant to statistical note 1(b),

subchapter II, chapter 98. The Special Access Program (SAP) is available only to designated CBERA

beneficiary countries that have bilateral textile agreements with the United States.11 The former Special

Regime (SR), which had applied to textile and apparel products of Mexico, was replaced by other

preference provisions under the NAFTA as of January 1, 1994—primarily heading 9802.00.90.12

SAP bilateral agreements have contained two types of measures: guaranteed access levels (GALs)

for apparel assembled in the particular CBERA countries from U.S.-formed-and-cut fabric, and regular

quota limits for apparel of the applicable MFA categories but not of such fabric. In general terms, a GAL

would be set for each MFA category covered by a SAP bilateral agreement, along with a specific limit (SL)

or a designated consultation level (DCL) for regular quotas. Exporters have been able to request increases

in GALs unless market disruption occurs, while SLs are subject to agreed allowable annual percentage

increases, and DCLs are raised only after bilateral consultation. GAL shipments under heading

9802.00.80 generally have duties assessed only on the value added overseas.13 Special CBI14 Export

Declarations must be filed at the time the U.S.-formed-and-cut fabric parts are exported from the customs

territory, and Customs can request documentary proof concerning such garment parts during Post-Entry

Compliance Reviews. According to the Office of Textiles and Apparel, foreign-origin findings, trimmings,

and elastic strips not exceeding 25 percent of the cost of components in the assembled product do not

disqualify an apparel article from entry under the GAL/SAP, but other components must be formed and cut

in the United States. Also, CBERA assemblers must file declarations, and goods must be accompanied by

the textile visas and certificates of origin specified in the bilaterals.

User Fees

Enacted in 1986 as a temporary revenue measure and set at 0.22 percent ad valorem on imported

goods, the so-called user fee has been continued to help defray costs of Customs Service operations. 

Customs regulations treat the fee—properly known as the merchandise processing fee—as a customs duty;

it is applied to the dutiable value or cost (the foreign value added) of imports under the three productionsharing provisions of HTS chapter 98 covered by this report, but not to the nondutiable portion of value

attributable to domestic materials. From October 1, 1987, through December 31, 1989, the fee was

0.17 percent ad valorem; it was later restructured and continued at the 0.17-percent rate but with a floor

and a cap as of October 1, 1990; and it reached a level of 0.21 percent ad valorem following enactment of

the Uruguay Round Agreements Act. Under section 2418 of the Miscellaneous Trade and Technical
 

15 Public Law 106-36, 113 Stat. 127, 176, effective on and after July 25, 1999.

 

16 This is a term of art in the HTS covering goods imported from and the product of Canada (even if not marked

as such) that qualify for NAFTA duty rates as originating in the NAFTA region. This test varies from the normal

rule requiring that imported goods be marked with a single country of origin.

 

17 Customs Bulletin and Decisions, vol. 33, No. 33, Aug. 18, 1999.

 

18 19 C.F.R.24.23(c)(2).

A-6

Corrections Act of 1999,15 three categories of fees for passengers aboard commercial vessels were

specified, and separate provisions established particular budgetary uses (including overtime pay for some

officials and funding for the automated commercial systems and a national test of the automation test

regarding reconciliation of entries) for the merchandise processing fees collected at Customs ports of entry. 

Current Customs regulations concerning the user fee appear in 19 C.F.R. 24.23, with the fee set at 0.21

percent ad valorem for formal entries and with a minimum fee of $25 and a cap of $485 per entry. For the

chapter 98 provisions, 19 C.F.R. 24.23(c)(2) provides that, in addition to the ad valorem fee on dutiable

value, the surcharge and specific fees do apply to the goods entered there. A $3 surcharge is added to each

entry processed manually, informal entries are assessed fees of from $2 to $9 each, and other rules govern

the aggregation of the ad valorem fee for particular monthly entry programs. Customs regulations also set

other fees, such as the harbor maintenance fee. 

Under article 403 of the U.S.-Canada Free-Trade Agreement, which has since been suspended,

goods originating in the territory of Canada were assessed the merchandise processing fee under a

negotiated phase-out scheme, with the fee scheduled to be eliminated as of January 1, 1994. This

previously agreed treatment was continued under the NAFTA when it was implemented on January 1,

1994, and now is codified in 19 C.F.R. 24.23(c)(3), so that no fees are collected on "goods of Canada

under the terms of general note 12 to the HTS."16 Goods of Mexico were assessed the ordinary fee until

June 30, 1999, as of which date no such fee can be charged under article 310 and annex 310.1 of the

NAFTA and section 204 of the NAFTA Implementation Act. Regulatory language to codify this status was

added to section 24.23(c)(3) effective August 3, 1999.17

Customs regulations separately specify the user fee status of other classes of goods, such as

agricultural products of the United States that are processed and packed in a U.S. foreign-trade zone. Of

greatest significance among these regulations is the provision18 specifying that goods from most nonNAFTA countries entered under HTS chapter 98 are subject to the imposition of the merchandise

processing fee, with limited exceptions for products of preference-eligible countries (notably CBERA

beneficiaries and the insular possessions of the United States). All products of Israel, under the free-trade

agreement with that country, are eligible for exemption from user fees for such time as the United States

Trade Representative determines that reciprocal treatment for U.S. products exists, pursuant to section 112

of the Customs and Trade Act of 1990 and 19 C.F.R.24.23(c)(5).

Janis L. Summers

(202) 205-2605

jsummers@usitc.gov
APPENDIX B

STATISTICAL TABLES
B-2

Table B-1

U.S. imports for consumption under HTS provisions 9802.00.60 and 9802.00.80,1 1971-1998

(Million dollars)

Total value Dutiable value U.S. content value

Year 9802.00.60 9802.00.80 Total 9802.00.60 9802.00.80 Total 9802.00.60 9802.00.80 Total

1971 ............. 199.4 2,566.4 2,765.8 75.1 2,030.8 2,105.9 124.3 535.6 659.9

1972 ............. 318.3 3,090.5 3,408.8 130.3 2,410.1 2,540.4 187.9 680.4 868.3

1973 ............. 462.6 3,784.5 4,247.1 212.9 3,025.4 3,238.3 249.7 759.1 1,008.8

1974 ............. 543.7 4,828.1 5,371.8 240.4 3,818.6 4,059.0 303.3 1,009.5 1,312.8

1975 ............. 454.6 4,707.8 5,162.4 192.6 3,703.9 3,896.5 262.0 1,003.9 1,265.9

1976 ............. 474.0 5,247.5 5,721.5 199.2 3,976.2 4,175.4 274.8 1,271.3 1,546.1

1977 ............. 465.1 6,723.4 7,188.5 190.7 5,021.4 5,212.1 274.4 1,702.0 1,976.4

1978 ............. 398.1 9,337.1 9,735.2 154.8 6,988.9 7,143.7 243.2 2,348.3 2,591.5

1979 ............. 407.7 11,559.3 11,967.0 172.8 8,468.3 8,641.1 234.9 3,091.0 3,325.9

1980 ............. 254.1 13,762.2 14,016.5 83.5 10,178.2 10,261.8 170.5 3,584.0 3,754.7

1981 ............. 256.5 15,924.0 16,180.8 80.3 11,653.9 11,734.2 176.2 4,270.3 4,446.6

1982 ............. 358.0 17,950.8 18,308.8 116.0 13,473.2 13,589.2 242.0 4,477.5 4,719.5

1983 ............. 341.5 21,234.4 21,575.9 112.5 16,076.8 16,189.3 229.0 5,157.6 5,386.6

1984 ............. 450.2 28,122.4 28,572.6 140.9 21,221.2 21,362.1 309.3 6,901.2 7,210.5

1985 ............. 419.7 30,115.4 30,535.1 144.6 24,565.7 24,710.3 275.0 5,549.7 5,824.7

1986 ............. 465.5 36,031.5 36,496.9 157.1 30,059.3 30,216.4 308.4 5,972.1 6,280.5

1987 ............. 953.9 67,595.1 68,549.0 538.4 55,067.9 55,606.2 415.6 12,527.2 12,942.8

1988 ............. 929.1 72,803.5 73,732.6 459.2 56,449.4 56,908.5 469.8 16,354.1 16,823.9

1989 ............. 141.3 73,031.8 73,173.1 444.2 54,110.5 54,554.7 697.1 18,921.3 19,618.4

1990 ............. 1,379.8 75,122.2 76,502.0 561.4 54,302.9 54,864.3 818.4 20,819.2 21,637.6

1991 ............. 1,142.1 56,412.8 57,554.9 514.3 42,521.2 43,035.5 627.8 13,891.6 14,519.4

1992 ............. 1,003.4 55,437.6 56,441.0 406.5 40,676.5 41,083.0 596.9 14,761.1 15,358.0

1993 ............. 836.6 56,526.4 57,363.0 280.3 39,522.7 39,803.0 556.3 17,003.7 17,560.0

1994 ............. 600.3 58,709.7 59,310.0 219.2 39,573.8 39,793.0 381.2 19,135.8 19,517.0

1995 ............. 503.4 60,376.6 60,880.0 126.6 38,643.4 38,770.0 376.8 21,733.2 22,110.0

1996 ............. 549.6 66,964.9 67,514.5 154.8 43,394.9 43,549.7 394.8 23,570.0 23,964.8

1997 ............. 509.7 78,657.0 79,166.7 145.8 52,455.8 52,601.7 363.8 26,201.2 26,565.0

1998 ............. 296.8 73,770.8 74,067.6 87.6 48,767.4 48,855.0 209.2 25,003.4 25,212.6

 1 HTS 9802.00.80 includes HTS 9802.00.90.

Note.—Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce, except as noted. Minor adjustments to official statistics were made to correct

cases of misreporting.
Table B-2 

U.S. imports for consumption under the production-sharing provisions (PSP) of HTS Chapter 98: 

Total imports, imports under HTS PSP, and U.S. content, by principal sources, 1995-1998

See note(s) at end of table.

B-3

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1995

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Imports Imports

Total under U.S. Total under U.S.

Source imports HTS PSP content imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––––––– Million dollars ––––––––––– –––––––– Percentage ––––––––

Germany ............ 37,126 6,526 153 5.0 10.7 0.7

Japan .............. 122,402 6,069 360 16.5 10.0 1.6

United Kingdom ....... 26,594 1,628 120 3.6 2.7 0.5

Canada ............. 144,882 1,539 605 19.6 2.5 2.7

Sweden ............. 6,208 1,375 21 0.8 2.3 0.1

Belgium ............. 5,996 812 35 0.8 1.3 0.2

France .............. 16,497 431 72 2.2 0.7 0.3

Spain ............... 3,814 174 27 0.5 0.3 0.1

Netherlands .......... 6,309 151 34 0.9 0.2 0.2

Italy ................ 16,339 129 30 2.2 0.2 0.1

Ireland .............. 4,067 73 18 0.5 0.1 0.1

Austria .............. 1,951 73 32 0.3 0.1 0.1

All other ............. 21,469 101 19 2.9 0.2 0.1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total, developed

 countries ....... 413,652 19,081 1,526 55.9 31.3 6.9

Mexico .............. 61,721 24,962 12,833 8.3 41.0 58.0

Malaysia ............ 17,401 2,778 1,313 2.4 4.6 5.9

Dominican Republic .... 3,385 1,965 1,278 0.5 3.2 5.8

Korea .............. 24,026 1,798 600 3.2 3.0 2.7

Philippines ........... 6,990 1,749 785 0.9 2.9 3.6

Taiwan ............. 28,875 1,193 424 3.9 2.0 1.9

Singapore ........... 18,493 958 194 2.5 1.6 0.9

China ............... 45,370 873 109 6.1 1.4 0.5

Thailand ............ 11,337 786 461 1.5 1.3 2.1

Costa Rica ........... 1,842 707 472 0.2 1.2 2.1

Honduras ............ 1,441 676 480 0.2 1.1 2.2

Hong Kong .......... 10,232 637 323 1.4 1.0 1.5

Guatemala ........... 1,515 521 259 0.2 0.9 1.2

El Salvador .......... 813 497 276 0.1 0.8 1.3

Jamaica ............. 838 456 369 0.1 0.7 1.7

Indonesia ............ 7,340 410 75 1.0 0.7 0.3

Colombia ............ 3,807 272 169 0.5 0.4 0.8

Brazil ............... 8,989 178 20 1.2 0.3 0.1

Haiti ................ 129 79 54 (

1

) 0.1 0.2

India ............... 5,702 38 4 0.8 0.1 (

1

)

All other ............. 65,764 266 86 8.9 0.4 0.4

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total, less developed

 countries ....... 326,008 41,800 20,584 44.1 68.7 93.1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 Grand total ... 739,660 60,880 22,110 100.0 100.0 100.0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Table B-2--Continued

U.S. imports for consumption under the production-sharing provisions (PSP) of HTS Chapter 98: 

Total imports, imports under HTS PSP, and U.S. content, by principal sources, 1995-1998

See note(s) at end of table.

B-4

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1996

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Imports Imports

Total under U.S. Total under U.S.

Source imports HTS PSP content imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––––––– Million dollars ––––––––––– –––––––– Percentage ––––––––

Japan .............. 114,762 7,797 548 14.5 11.5 2.1

Germany ............ 39,215 7,414 142 5.0 11.0 0.5

Sweden ............. 7,118 1,758 15 0.9 2.6 0.1

United Kingdom ....... 28,574 1,758 124 3.6 2.6 0.5

Canada ............. 156,299 1,579 627 19.8 2.3 2.4

Belgium ............. 6,745 845 35 0.9 1.3 0.1

France .............. 17,914 408 55 2.3 0.6 0.2

Netherlands .......... 6,582 182 41 0.8 0.3 0.2

Spain ............... 4,231 160 8 0.5 0.2 (

1

)

Italy ................ 18,036 97 29 2.3 0.1 0.1

Ireland .............. 4,749 87 32 0.6 0.1 0.1

Austria .............. 2,082 61 21 0.3 0.1 0.1

All other ............. 23,296 111 13 2.9 0.2 (

1

)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total, developed

 countries ....... 429,602 22,256 1,690 54.3 33.0 6.4

Mexico .............. 74,179 27,925 15,483 9.4 41.4 58.3

Malaysia ............ 17,771 2,382 930 2.2 3.5 3.5

Dominican Republic .... 3,582 2,104 1,737 0.5 3.1 6.5

Philippines ........... 8,174 1,805 1,058 1.0 2.7 4.0

Korea .............. 22,532 1,787 755 2.9 2.6 2.8

China ............... 51,209 1,153 180 6.5 1.7 0.7

Taiwan ............. 29,797 1,048 510 3.8 1.6 1.9

Honduras ............ 1,797 981 983 0.2 1.5 3.7

Singapore ........... 20,249 964 258 2.6 1.4 1.0

Thailand ............ 11,324 789 385 1.4 1.2 1.4

Costa Rica ........... 1,963 694 568 0.2 1.0 2.1

El Salvador .......... 974 605 544 0.1 0.9 2.0

Guatemala ........... 1,694 580 299 0.2 0.9 1.1

Hong Kong .......... 9,820 579 354 1.2 0.9 1.3

Indonesia ............ 8,079 546 72 1.0 0.8 0.3

Jamaica ............. 828 444 352 0.1 0.7 1.3

Colombia ............ 4,421 216 160 0.6 0.3 0.6

Brazil ............... 8,871 144 21 1.1 0.2 0.1

Haiti ................ 143 102 102 (

1

) 0.2 0.4

Hungary ............. 676 46 6 0.1 0.1 (

1

)

All other ............. 82,785 366 120 10.5 0.5 0.4

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total, less developed

 countries ....... 360,868 45,258 24,875 45.7 67.0 93.6

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 Grand total ... 790,470 67,514 26,565 100.0 100.0 100.0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Table B-2--Continued

U.S. imports for consumption under the production-sharing provisions (PSP) of HTS Chapter 98: 

Total imports, imports under HTS PSP, and U.S. content, by principal sources, 1995-1998

See note(s) at end of table.

B-5

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1997

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Imports Imports

Total under U.S. Total under U.S.

Source imports HTS PSP content imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––––––– Million dollars ––––––––––– –––––––– Percentage ––––––––

Japan .............. 120,480 15,667 548 14.0 19.8 2.1

Germany ............ 42,793 8,541 142 5.0 10.8 0.5

United Kingdom ....... 32,412 1,665 124 3.8 2.1 0.5

Canada ............. 167,881 1,511 627 19.5 1.9 2.4

Sweden ............. 7,265 1,433 15 0.8 1.8 0.1

Belgium ............. 7,870 1,105 35 0.9 1.4 0.1

France .............. 20,126 323 55 2.3 0.4 0.2

Netherlands .......... 7,269 173 41 0.8 0.2 0.2

Spain ............... 4,547 156 8 0.5 0.2 (

1

)

Italy ................ 19,228 119 29 2.2 0.2 0.1

Ireland .............. 5,823 105 32 0.7 0.1 0.1

Austria .............. 2,202 59 21 0.3 0.1 0.1

All other ............. 24,512 58 13 2.8 0.1 (

1

)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total, developed

 countries ....... 462,407 30,915 1,690 53.6 39.0 6.4

Mexico .............. 85,005 28,883 15,483 9.9 36.5 58.3

Dominican Republic .... 4,308 2,669 1,737 0.5 3.4 6.5

Philippines ........... 10,419 2,063 1,058 1.2 2.6 4.0

Malaysia ............ 17,888 1,911 930 2.1 2.4 3.5

Korea .............. 22,939 1,881 755 2.7 2.4 2.8

Honduras ............ 2,320 1,380 983 0.3 1.7 3.7

China ............... 61,996 1,319 180 7.2 1.7 0.7

Taiwan ............. 32,474 1,248 510 3.8 1.6 1.9

El Salvador .......... 1,345 912 544 0.2 1.2 2.0

Singapore ........... 19,982 904 258 2.3 1.1 1.0

Costa Rica ........... 2,322 851 568 0.3 1.1 2.1

Thailand ............ 12,546 750 385 1.5 0.9 1.4

Hong Kong .......... 10,235 720 354 1.2 0.9 1.3

Guatemala ........... 1,984 652 299 0.2 0.8 1.1

Indonesia ............ 9,055 517 72 1.0 0.7 0.3

Jamaica ............. 721 430 352 0.1 0.5 1.3

Colombia ............ 4,615 268 160 0.5 0.3 0.6

Brazil ............... 9,510 259 21 1.1 0.3 0.1

Haiti ................ 188 140 102 (

1

) 0.2 0.4

Vietnam ............. 390 78 8 (

1

) 0.1 (

1

)

All other ............. 89,777 415 118 10.4 0.5 0.4

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total, less developed

 countries ....... 400,019 48,252 24,875 46.4 61.0 93.6

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 Grand total ... 862,426 79,167 26,565 100.0 100.0 100.0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Table B-2--Continued

U.S. imports for consumption under the production-sharing provisions (PSP) of HTS Chapter 98: 

Total imports, imports under HTS PSP, and U.S. content, by principal sources, 1995-1998

B-6

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1998

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Imports Imports

Total under U.S. Total under U.S.

Source imports HTS PSP content imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––––––– Million dollars ––––––––––– –––––––– Percentage ––––––––

Japan .............. 121,313 12,363 506 13.4 16.7 2.0

Germany ............ 49,796 9,158 114 5.5 12.4 0.5

Sweden ............. 7,821 2,020 23 0.9 2.7 0.1

Belgium ............. 8,387 1,520 45 0.9 2.1 0.2

United Kingdom ....... 34,617 1,381 132 3.8 1.9 0.5

Canada ............. 174,685 428 194 19.2 0.6 0.8

France .............. 23,371 198 38 2.6 0.3 0.1

Netherlands .......... 7,555 185 33 0.8 0.3 0.1

Spain ............... 4,749 138 11 0.5 0.2 (

1

)

Italy ................ 20,792 115 31 2.3 0.2 0.1

Ireland .............. 8,311 111 24 0.9 0.2 0.1

Austria .............. 2,446 73 20 0.3 0.1 0.1

All other ............. 25,667 66 14 2.8 0.1 0.1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total, developed

 countries ....... 489,510 27,756 1,184 53.9 37.5 4.7

Mexico .............. 93,017 27,162 14,484 10.2 36.7 57.4

Dominican Republic .... 4,445 2,806 1,766 0.5 3.8 7.0

Philippines ........... 11,875 2,254 1,129 1.3 3.0 4.5

Malaysia ............ 18,817 1,831 915 2.1 2.5 3.6

Honduras ............ 2,544 1,604 1,142 0.3 2.2 4.5

Korea .............. 23,701 1,601 786 2.6 2.2 3.1

Taiwan ............. 32,985 1,511 543 3.6 2.0 2.2

China ............... 70,815 1,477 232 7.8 2.0 0.9

El Salvador .......... 1,436 1,023 592 0.2 1.4 2.3

Costa Rica ........... 2,742 845 552 0.3 1.1 2.2

Guatemala ........... 2,071 707 306 0.2 1.0 1.2

Thailand ............ 13,366 664 367 1.5 0.9 1.5

Hong Kong .......... 10,427 559 230 1.1 0.8 0.9

Singapore ........... 18,216 556 151 2.0 0.8 0.6

Jamaica ............. 736 386 313 0.1 0.5 1.2

Indonesia ............ 9,262 298 54 1.0 0.4 0.2

Colombia ............ 4,442 264 156 0.5 0.4 0.6

Haiti ................ 272 217 159 (

1

) 0.3 0.6

Vietnam ............. 520 79 9 0.1 0.1 (

1

)

Nicaragua ........... 453 67 47 (

1

) 0.1 0.2

All other ............. 95,997 401 96 10.6 0.5 0.4

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total, less developed

 countries ....... 418,137 46,311 24,028 46.1 62.5 95.3

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 Grand total ... 907,647 74,068 25,213 100.0 100.0 100.0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1Less than 0.5 percent.

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table B-3

U.S. imports for consumption under the production-sharing provisions (PSP) of HTS Chapter 98, by

commodity groups, 1995-98

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1995 1996

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Imports Imports

Total under U.S. Total under U.S.

Commodity group imports HTS PSP content imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-7

Agricultural products .......... 37,806,506 7,503 1,637 41,526,077 2,560 1,171

Forest products .............. 29,154,780 83,280 42,002 28,957,450 118,333 56,007

Chemicals, coal, petroleum, natural

gas, and related products:

Fabricated plastic and rubber

products ................ 12,955,349 157,175 85,854 13,383,416 183,169 95,504

Other energy and chemical 

products ................ 99,832,855 111,309 70,903 120,493,520 145,335 73,245

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ................... 112,788,204 268,483 156,757 133,876,936 328,504 168,749

Textiles, apparel, and footwear:

Textiles and textile products ... 10,190,513 336,592 198,435 10,368,559 318,880 201,813

Medical apparel ............ 475,512 223,342 157,601 456,032 196,442 146,675

Men's and boys' suits and 

sports coats ............. 850,473 146,899 76,715 924,183 161,855 85,856

Men's and boys' coats and 

jackets ................. 1,692,303 75,786 44,226 1,783,145 77,763 44,667

Men's and boys' trousers ..... 3,755,379 1,700,119 1,022,948 4,082,582 1,834,041 1,088,688

Women's and girls' trousers ... 3,670,148 929,616 544,827 3,948,005 1,198,421 721,107

Shirts and blouses .......... 11,986,425 1,692,681 1,095,159 12,376,939 2,057,892 1,428,466

Women's and girls' suits, skirts

and coats ............... 3,547,993 600,374 279,104 3,857,068 721,348 333,636

Women's and girls' dresses ... 1,442,954 181,836 75,730 1,573,759 215,351 90,210

Robes, nightwear, and 

underwear ............... 2,672,815 1,104,736 726,623 2,947,087 1,291,082 859,377

Hosiery .................. 362,928 163,666 153,279 404,282 165,279 151,802

Foundation garments ........ 926,720 685,945 463,852 864,383 607,628 410,783

Gloves including gloves 

for sports ............... 1,733,310 51,939 28,838 1,893,499 47,849 32,369

Headwear ................. 842,213 40,626 22,420 883,070 39,438 24,755

Other wearing apparel and 

accessories .............. 5,924,113 384,186 230,982 5,905,356 426,803 254,408

Footwear and parts ......... 12,095,267 1,397,721 158,191 12,708,385 1,678,736 191,716

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ................... 62,169,069 9,716,063 5,278,930 64,976,333 11,038,807 6,066,327

Minerals and metals:

Steel mill products .......... 11,785,730 236,522 176,568 12,755,527 260,219 188,781

Copper and related products . . 3,401,325 78,064 63,241 3,471,892 90,176 75,357

Aluminum mill products ...... 2,048,034 14,617 9,738 1,737,499 19,336 11,894

Builders' hardware .......... 762,571 96,896 51,044 865,975 119,942 61,687

Other metal products ........ 45,025,967 576,302 251,071 47,359,971 706,060 318,977

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ................... 63,023,627 1,002,402 551,663 66,190,864 1,195,733 656,696

Miscellaneous manufacturers:

Luggage, handbags, and 

flat goods ............... 3,332,520 81,133 45,293 3,511,861 122,234 65,986

Jewelry .................. 4,135,631 92,013 83,608 4,251,413 72,272 64,959

Motor vehicle and other

furniture ................ 8,423,237 604,115 112,567 9,497,327 734,323 115,279

Lamps and lighting fixtures .... 2,198,137 93,921 59,401 2,422,026 110,518 76,092

Other miscellaneous 

manufactured articles ...... 21,277,482 386,473 94,991 22,831,912 383,190 112,255

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ................... 39,367,007 1,257,655 395,860 42,514,539 1,422,538 434,572

Machinery and equipment:

Air conditioning equipment .... 4,129,220 293,680 140,329 4,576,021 414,210 179,092

Commercial machinery ...... 1,191,025 55,527 20,064 1,223,091 53,746 20,729

Household appliances, including 

heating and drying 

equipment ............... 4,073,901 433,448 206,527 4,261,106 455,846 217,648

Centrifuges, filtering and purifying

equipment, and pumps for 

liquids .................. 3,177,276 327,620 212,760 3,414,101 260,580 172,098
Table B-3--Continued

U.S. imports for consumption under the production-sharing provisions (PSP) of HTS Chapter 98, by

commodity groups, 1995-98

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1995 1996

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Imports Imports

Total under U.S. Total under U.S.

Commodity group imports HTS PSP content imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-8

Machinery and equipment--Continued

Semiconductor equipment, 

robots, and other equipment . 2,848,210 20,367 4,689 3,056,681 8,373 2,034

Taps, cocks, valves, and 

similar devices ........... 2,931,255 386,309 260,472 3,127,789 406,872 277,048

Electric motors, generators 

and related equipment ..... 3,879,726 780,214 474,953 3,875,491 859,374 522,087

Electrical transformers, static 

converters, and inductors ... 3,537,228 590,903 233,561 3,631,103 603,013 288,330

Powered handtools and 

parts thereof ............. 1,142,444 135,973 50,436 1,291,244 205,270 69,669

Flashlights and other similar 

electric lights, light bulbs, and 

fluorescent tubes; arc lights . . 1,097,119 188,194 88,791 1,153,410 153,020 80,033

Wiring harnesses for motor 

vehicles and other insulated 

electrical conduits ......... 5,398,336 3,079,857 1,842,862 5,934,544 3,332,141 2,038,045

Miscellaneous machinery 

and equipment ........... 27,480,211 565,059 142,613 28,439,752 606,550 171,710

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ................... 60,885,951 6,857,152 3,678,056 63,984,334 7,358,993 4,038,523

Transportation equipment:

Aircraft engines and gas 

turbines ................ 5,285,140 295,031 78,105 6,241,224 281,525 72,819

Motors and engines, except 

internal combustion, aircraft, 

or electric ............... 474,310 1,250 926 510,749 1,512 948

Internal combustion piston 

engines, other than 

for aircraft ............... 8,507,612 857,193 271,173 9,533,333 316,765 71,922

Construction and mining 

equipment ............... 3,812,100 498,967 98,434 3,928,041 379,556 69,799

Forklift trucks and similar 

industrial vehicles ......... 1,136,099 9,254 3,300 1,007,391 4,766 1,580

Ball and rollers bearings ...... 1,520,314 16,157 2,437 1,525,993 13,810 1,824

Certain motor-vehicle parts ... 16,297,871 1,791,458 822,210 16,866,970 1,861,134 902,860

Primary cells and batteries, and 

electric storage batteries .... 1,636,963 230,107 83,545 1,709,778 230,915 83,348

Ignition starting, lighting, and 

other electrical equipment ... 1,832,824 184,406 107,985 2,032,462 331,830 162,101

Rail locomotive and rolling 

stock ................... 1,291,549 258,216 87,088 1,312,004 347,833 115,660

Automobiles, trucks, buses, and 

bodies and chassis of the 

foregoing ............... 84,216,729 18,571,228 2,032,052 87,115,738 23,208,851 2,633,047

Aircraft, spacecraft, and related 

equipment, except engines . . 6,135,254 75,289 23,285 7,352,988 26,937 17,010

Ships, tugs, pleasure boats, 

and similar vessels ........ 919,399 87,410 16,447 1,130,263 153,530 23,853

Miscellaneous vehicles and 

transportation-related 

equipment ............... 1,509,815 199,770 107,838 1,417,974 134,253 56,067

Motorcycles, mopeds, 

and parts ............... 1,161,530 0 0 1,137,427 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ................... 135,737,507 23,075,736 3,734,822 142,822,335 27,293,217 4,212,839

Electronic products:

Office machines ............ 6,365,708 52,537 12,542 6,295,635 48,817 25,013

Telephone and telegraph

 apparatus .............. 7,742,435 149,958 74,280 8,201,828 126,399 56,222

Optical fibers, optical fiber 

bundles and cables ........ 154,129 44,842 28,555 215,842 87,065 58,321

Microphones, loudspeakers, 

audio amplifiers, and

combinations thereof ....... 2,000,815 218,701 69,010 2,108,045 232,479 79,208
Table B-3--Continued

U.S. imports for consumption under the production-sharing provisions (PSP) of HTS Chapter 98, by

commodity groups, 1995-98

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1995 1996

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Imports Imports

Total under U.S. Total under U.S.

Commodity group imports HTS PSP content imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-9

Electronic products--Continued

Tape recorders, tape players, 

video cassette recorders, 

turntables, and compact 

disc players ............. 6,732,859 124,736 23,730 5,872,788 117,513 15,782

Unrecorded magnetic tapes, 

discs, and other media ..... 1,936,432 39,742 15,656 2,071,500 52,635 18,975

Records, tapes, compact discs, 

computer software, and other 

recorded media ........... 916,374 384 181 994,102 487 351

Radio navigational aid, radar, and 

remote control apparatus ... 522,085 20,050 10,506 594,441 18,865 6,437

Radio transmission and reception 

apparatus, and combinations

thereof ................. 8,528,431 686,685 157,075 8,070,543 779,697 120,500

Television receivers, video 

monitors, and combinations 

including television receivers . 4,539,980 2,265,254 756,263 4,498,315 2,426,818 965,511

Television picture tubes and 

other cathode-ray tubes .... 1,115,976 200,476 63,071 987,288 171,912 53,300

Television apparatus (except 

receivers and monitors), 

including cameras, camcorders, 

and cable apparatus ....... 3,881,372 505,761 157,606 4,352,576 655,836 177,800

Electric sound and visual 

signaling apparatus ........ 1,747,596 153,793 44,433 1,883,125 150,400 38,985

Special-purpose tubes ....... 274,269 45,057 15,961 252,066 26,190 12,448

Electrical and electronic articles, 

apparatus, and parts not 

elsewhere provided for ..... 1,463,474 117,660 45,120 1,471,925 135,074 47,875

Electrical capacitors and 

resistors ................ 1,879,243 404,166 270,017 1,691,406 303,173 200,770

Apparatus for making, breaking, 

protecting, or connecting 

electrical circuits .......... 8,527,928 1,684,517 1,015,212 8,828,800 1,752,471 1,044,381

Semiconductor devices ...... 39,167,784 8,613,036 4,301,684 36,771,266 8,164,008 4,086,895

Computer hardware ......... 56,308,251 1,372,105 404,800 61,457,046 1,296,559 317,787

Photographic cameras and 

equipment ............... 2,048,140 34,474 9,219 2,198,345 26,575 7,283

Photographic supplies ....... 1,753,713 70,767 35,242 1,701,951 73,618 34,179

Exposed photographic plates, 

film, and paper ........... 124,622 3 2 149,871 0 0

Medical goods ............. 4,951,441 828,756 427,901 5,367,566 994,361 543,463

Optical goods .............. 2,819,967 7,953 5,121 3,114,226 57,224 22,675

Surveying and navigational 

instruments .............. 555,889 7,537 4,383 571,014 18,942 9,480

Balances of a sensitivity of 5 cgs 

or better ................ 34,609 0 0 36,268 35 26

Drawing and mathematical

calculating and measuring 

instruments .............. 401,166 167,246 19,554 384,898 141,177 11,181

Watches ................. 2,242,546 61,581 7,721 2,267,648 60,997 6,215

Clocks and timing devices .... 430,005 21,634 12,429 446,985 24,723 16,468

Measuring, testing, controlling 

and analyzing instruments . . 6,440,335 712,367 282,898 6,817,098 811,467 352,286

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ................... 175,607,576 18,611,779 8,270,172 179,674,406 18,755,514 8,329,816

Special provisions ............ 23,120,192 285 115 25,946,440 283 113

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Grand total .............. 739,660,419 60,880,340 22,110,015 790,469,714 67,514,482 23,964,813
Table B-3--Continued

U.S. imports for consumption under the production-sharing provisions (PSP) of HTS Chpater 98, by

commodity groups, 1995-98

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1997 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Imports Imports

Total under U.S. Total under U.S.

Commodity group imports HTS PSP content imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-10

Agricultural products .......... 45,839,326 6,045 1,993 47,326,313 3,587 1,159

Forest products .............. 30,456,362 140,871 81,556 31,998,229 130,676 74,998

Chemicals, coal, petroleum, natural 

gas, and related products:

Fabricated plastic and rubber 

products ................ 14,558,153 184,606 99,140 16,017,547 135,802 79,451

Other energy and chemical 

products ................ 125,523,349 156,630 73,494 110,952,553 139,013 64,162

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ................... 140,081,502 341,237 172,634 126,970,100 274,814 143,613

Textiles, apparel, and footwear:

Textiles and textile products ... 12,034,571 313,625 191,502 12,917,265 367,665 201,151

Medical apparel ............ 548,181 190,212 144,149 598,075 210,950 157,867

Men's and boys' suits and 

sports coats ............. 1,053,958 226,051 125,925 1,156,238 248,264 127,007

Men's and boys' coats and 

jackets ................. 2,229,545 106,776 58,034 2,162,857 122,847 67,771

Men's and boys' trousers ..... 4,932,815 2,326,292 1,320,939 5,704,551 2,513,376 1,399,633

Women's and girls' trousers ... 5,096,730 1,686,687 989,884 5,886,920 2,009,912 1,146,336

Shirts and blouses .......... 14,415,815 2,897,418 2,055,796 16,436,040 3,422,385 2,368,814

Women's and girls' suits, skirts 

and coats ............... 4,144,023 780,628 348,625 4,284,729 700,002 312,219

Women's and girls' dresses ... 1,635,964 244,066 96,988 1,686,250 261,426 103,299

Robes, nightwear, and 

underwear ............... 3,596,847 1,704,776 1,149,299 4,117,478 1,940,921 1,292,569

Hosiery .................. 566,042 265,291 242,100 685,432 338,752 303,484

Foundation garments ........ 968,474 633,188 433,847 1,114,115 655,142 445,793

Gloves including gloves 

for sports ............... 2,003,935 50,588 33,247 2,155,982 47,456 31,646

Headwear ................. 866,639 32,970 21,324 959,173 30,369 19,764

Other wearing apparel and 

accessories .............. 6,700,939 536,412 334,769 7,223,939 648,451 405,893

Footwear and parts ......... 13,951,034 1,835,513 224,855 13,879,187 1,598,482 219,325

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ................... 74,745,512 13,830,494 7,771,283 80,968,232 15,116,398 8,602,571

Minerals and metals:

Steel mill products .......... 13,601,558 216,257 166,010 16,434,086 62,724 45,730

Copper and related products . . 3,743,322 77,139 54,824 3,358,825 16,149 7,336

Aluminum mill products ...... 2,008,697 26,866 15,832 2,180,577 22,830 14,961

Builders' hardware .......... 907,567 140,637 68,423 1,045,181 189,932 94,606

Other metal products ........ 52,947,905 511,028 251,589 58,038,952 435,558 239,058

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ................... 73,209,049 971,926 556,678 81,057,621 727,192 401,690

Miscellaneous manufacturers:

Luggage, handbags, and 

flat goods ............... 3,778,972 142,533 76,204 3,911,635 173,566 82,036

Jewelry .................. 4,484,937 65,772 56,198 5,084,543 88,822 68,150

Motor vehicle and other 

furniture ................ 11,223,773 658,459 105,489 13,427,746 714,209 115,890

Lamps and lighting fixtures .... 2,729,463 124,427 85,742 3,167,249 134,221 94,831

Other miscellaneous 

manufactured articles ...... 26,737,159 343,053 100,571 29,028,958 315,322 99,858

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ................... 48,954,305 1,334,244 424,204 54,620,131 1,426,139 460,765

Machinery and equipment:

Air conditioning equipment .... 4,432,627 437,046 255,151 4,945,197 277,829 187,389

Commercial machinery ...... 1,328,917 59,624 21,357 1,412,810 49,374 19,849

Household appliances, including 

heating and drying 

equipment ............... 4,592,810 520,848 226,887 5,194,285 365,603 179,853

Centrifuges, filtering and purifying 

equipment, and pumps for 

liquids .................. 3,493,529 255,291 118,016 3,771,985 128,044 71,063
Table B-3--Continued

U.S. imports for consumption under the production-sharing provisions (PSP) of HTS Chpater 98, by

commodity groups, 1995-98

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1997 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Imports Imports

Total under U.S. Total under U.S.

Commodity group imports HTS PSP content imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-11

Machinery and equipment--Continued

Semiconductor equipment, 

robots, and other equipment . 3,721,251 15,984 901 4,133,555 17,295 4,483

Taps, cocks, valves, and 

similar devices ........... 3,566,259 610,728 426,398 3,974,338 606,300 430,570

Electric motors, generators 

and related equipment ..... 4,179,430 956,326 578,707 4,748,900 1,129,397 674,653

Electrical transformers, static

 converters, and inductors ... 4,290,176 771,885 382,195 4,481,063 817,201 419,334

Powered handtools and 

parts thereof ............. 1,500,014 245,995 92,937 1,616,310 262,299 108,491

Flashlights and other similar 

electric lights, light bulbs and 

fluorescent tubes; arc lights . . 1,214,573 168,049 99,235 1,286,752 155,307 93,478

Wiring harnesses for motor 

vehicles and other insulated 

electrical conduits ......... 6,818,674 2,684,279 1,637,673 7,221,318 2,998,813 1,667,592

Miscellaneous machinery 

and equipment ........... 30,745,501 634,032 188,714 32,227,986 680,620 187,132

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ................... 69,883,762 7,360,087 4,028,170 75,014,497 7,488,083 4,043,886

Transportation equipment:

Aircraft engines and gas 

turbines ................ 8,380,319 239,626 65,197 10,403,722 59,080 45,364

Motors and engines, except 

internal combustion, aircraft, 

or electric ............... 567,229 6,752 4,405 620,535 11,162 8,214

Internal combustion piston 

engines, other than 

for aircraft ............... 9,986,736 235,196 59,053 11,477,855 170,186 52,546

Construction and mining

equipment ............... 4,883,960 463,631 79,345 6,188,014 457,781 74,331

Forklift trucks and similar 

industrial vehicles ......... 1,163,547 2,971 765 1,455,796 165 52

Ball and rollers bearings ...... 1,615,169 24,063 10,600 1,719,323 33,186 16,199

Certain motor-vehicle parts ... 17,804,442 1,626,935 967,330 18,766,540 1,612,101 959,836

Primary cells and batteries, and 

electric storage batteries .... 1,896,497 268,642 106,980 1,935,581 337,599 85,766

Ignition starting, lighting, and 

other electrical equipment ... 2,169,676 394,674 193,867 2,362,641 374,929 214,416

Rail locomotive and rolling 

stock ................... 1,371,944 331,065 108,447 2,155,996 94,401 20,718

Automobiles, trucks, buses, and 

bodies and chassis of the 

foregoing ............... 92,987,590 31,053,424 2,551,490 99,828,430 25,541,636 637,117

Aircraft, spacecraft, and related 

equipment, except engines . . 9,459,223 37,299 28,333 12,748,444 33,567 25,365

Ships, tugs, pleasure boats, 

and similar vessels ........ 923,763 111,672 23,903 1,090,060 134,627 28,571

Miscellaneous vehicles and 

transportation-related 

equipment ............... 1,521,854 148,502 74,668 1,666,349 156,563 77,846

Motorcycles, mopeds, 

and parts ............... 1,104,124 21 3 1,292,919 286 219

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ................... 155,836,073 34,944,473 4,274,385 173,712,204 29,017,269 2,246,562

Electronic products:

Office machines ............ 6,687,721 43,105 24,390 6,207,867 56,468 24,740

Telephone and telegraph 

apparatus ............... 9,261,095 161,850 92,446 10,488,281 217,712 120,140

Optical fibers, optical fiber 

bundles and cables ........ 272,077 94,697 54,493 398,479 13,878 9,321

Microphones, loudspeakers, 

audio amplifiers, and

combinations thereof ....... 2,168,286 309,012 92,227 2,312,347 276,180 81,955

Electronic products--Continued
Table B-3--Continued

U.S. imports for consumption under the production-sharing provisions (PSP) of HTS Chpater 98, by

commodity groups, 1995-98

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1997 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Imports Imports

Total under U.S. Total under U.S.

Commodity group imports HTS PSP content imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-12

Tape recorders, tape players, 

video cassette recorders, 

turntables, and compact 

disc players ............. 6,128,440 154,776 18,228 6,425,914 179,800 29,266

Unrecorded magnetic tapes, 

discs, and other media ..... 2,090,358 27,129 7,830 2,103,416 31,009 10,422

Records, tapes, compact discs, 

computer software, and other 

recorded media ........... 981,173 605 182 1,134,649 320 100

Radio navigational aid, radar, and 

remote control apparatus ... 690,906 59,360 19,788 723,704 69,334 23,918

Radio transmission and reception 

apparatus, and combinations

thereof ................. 9,060,482 1,203,584 142,621 10,248,608 1,035,941 137,583

Television receivers, video 

monitors, and combinations 

including television receivers . 4,403,269 2,212,945 996,399 5,319,335 2,372,993 1,153,318

Television picture tubes and 

other cathode-ray tubes .... 876,248 134,725 36,027 798,001 54,287 17,269

Television apparatus (except 

receivers and monitors), 

including cameras, camcorders, 

and cable apparatus ....... 4,039,041 458,610 100,517 5,110,210 676,772 75,035

Electric sound and visual 

signaling apparatus ........ 2,053,313 171,857 47,413 2,100,140 210,531 45,182

Special-purpose tubes ....... 247,113 22,323 11,047 200,435 14,785 7,102

Electrical and electronic articles, 

apparatus, and parts not 

elsewhere provided for ..... 1,597,375 113,651 45,328 1,778,527 131,693 44,892

Electrical capacitors and 

resistors ................ 1,949,779 345,701 231,261 2,000,757 343,075 236,185

Apparatus for making, breaking, 

protecting, or connecting 

electrical circuits .......... 9,965,419 2,000,735 1,139,377 10,120,253 2,057,094 1,130,954

Semiconductor devices ...... 36,878,268 8,537,335 4,557,918 33,696,142 8,408,106 4,534,253

Computer hardware ......... 69,953,180 1,635,224 405,285 72,157,438 1,244,094 459,043

Photographic cameras and 

equipment ............... 2,333,940 37,132 10,553 2,549,116 22,793 6,597

Photographic supplies ....... 1,766,499 83,554 38,274 1,709,363 76,454 35,897

Exposed photographic plates, 

film, and paper ........... 147,082 0 0 151,571 0 0

Medical goods ............. 5,894,587 1,095,110 595,512 6,934,064 1,045,096 488,151

Optical goods .............. 3,397,099 72,894 42,507 3,682,909 52,319 19,509

Surveying and navigational 

instruments .............. 757,066 45,172 22,027 826,475 50,798 22,086

Balances of a sensitivity of 5 cgs 

or better ................ 40,809 16 11 38,316 0 0

Drawing and mathematical 

calculating and measuring 

instruments .............. 428,473 134,571 11,315 427,178 122,094 6,095

Watches ................. 2,310,934 281 123 2,548,228 56,764 7,350

Clocks and timing devices .... 447,244 30,898 22,012 551,766 80,545 51,444

Measuring, testing, controlling 

and analyzing instruments . . 7,719,217 1,045,814 485,459 8,323,407 970,427 447,539

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ................... 194,546,495 20,232,669 9,250,572 201,066,897 19,871,361 9,225,347

Special provisions ............ 28,873,960 4,659 3,564 34,912,780 12,041 12,019

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Grand total .............. 862,426,346 79,166,706 26,565,040 907,647,006 74,067,561 25,212,611

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Note:--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
B-13

Table B-4 

U.S. imports for consumption under the production-sharing provisions (PSP) of HTS Chapter 98, by

principal sources, 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total value Duty-free value

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Percentage Percentage

Source Value of total Value of total

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Million dollars Million dollars

Grand total ............... 74,068 100.0 25,213 100.0

Top 10 sources ............ 62,319 84.1 20,910 82.9

Mexico ............... 27,162 36.7 14,484 57.4

Japan ................ 12,363 16.7 506 2.0

Germany ............. 9,158 12.4 114 0.5

Dominican Rep ......... 2,806 3.8 1,766 7.0

Philippines ............ 2,254 3.0 1,129 4.5

Sweden ............... 2,020 2.7 23 0.1

Malaysia .............. 1,831 2.5 915 3.6

Honduras ............. 1,604 2.2 1,142 4.5

Korea ................ 1,601 2.2 786 3.1

Belgium .............. 1,520 2.1 45 0.2

All other .................. 11,748 15.9 4,303

17.1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table B-5 

U.S. imports for consumption from Mexico under NAFTA and the production-sharing provisions (PSP) of HTS Chapter 98, by commodity groups,

1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Entered under

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

NAFTA U.S. content

and NAFTA HTS PSP All Total Total under HTS

Commodity group Total HTS PSP only only other NAFTA HTS PSP PSP

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table. B-14

Agricultural products .................... 5,395,630 2,461 3,940,179 851 1,452,140 3,942,640 3,311 980

Forest products ........................ 1,002,679 102,609 567,162 15,555 317,353 669,772 118,164 70,287

Chemicals, coal, petroleum, natural gas, and 

related products:

Fabricated plastic and rubber products ..... 1,064,847 103,704 853,640 16,411 91,093 957,344 120,115 71,051

Other energy and chemical products ...... 6,604,674 11,066 4,713,770 17,965 1,861,874 4,724,835 29,031 12,681

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ............................. 7,669,522 114,770 5,567,409 34,376 1,952,967 5,682,179 149,146 83,732

Textiles, apparel, and footwear:

Textiles and textile products ............. 1,242,938 131,936 951,650 130,194 29,159 1,083,586 262,130 163,274

Medical apparel ...................... 239,845 18,234 46,692 174,638 281 64,926 192,872 142,342

Men's and boys' suits and sports coats ..... 113,789 27,776 78,660 7,175 179 106,436 34,950 20,688

Men's and boys' coats and jackets ........ 73,581 11,570 15,053 46,167 791 26,623 57,737 39,209

Men's and boys' trousers ............... 1,506,783 119,439 291,986 1,094,687 671 411,425 1,214,126 694,045

Women's and girls' trousers ............. 1,343,794 249,298 133,656 959,232 1,609 382,953 1,208,530 742,567

Shirts and blouses .................... 1,793,877 109,606 331,455 1,343,505 9,310 441,061 1,453,111 1,087,643

Women's and girls' suits, skirts and coats . . 204,987 49,002 17,448 134,870 3,666 66,450 183,872 93,704

Women's and girls' dresses ............. 146,748 40,578 13,267 88,719 4,183 53,846 129,298 55,066

Robes, nightwear, and underwear ........ 509,643 75,872 124,231 298,279 11,261 200,103 374,151 249,458

Hosiery ............................ 180,132 891 66,948 112,228 65 67,839 113,119 96,515

Foundation garments .................. 260,562 83,813 99,006 76,231 1,513 182,819 160,043 112,930

Gloves including gloves for sports ........ 51,473 7,796 35,116 8,120 442 42,911 15,915 12,721

Headwear ........................... 49,501 15,278 25,113 8,686 423 40,391 23,965 15,424

Other wearing apparel and accessories .... 350,868 63,947 120,820 154,349 11,752 184,767 218,296 148,484

Footwear and parts ................... 349,222 51,030 254,192 34,007 9,993 305,222 85,037 67,929

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ............................. 8,417,742 1,056,065 2,605,293 4,671,086 85,298 3,661,358 5,727,151 3,741,998

Minerals and metals:

Steel mill products .................... 1,143,400 38,759 971,207 3 133,432 1,009,966 38,762 27,420

Copper and related products ............ 625,744 230 562,162 2,826 60,526 562,393 3,056 965

Aluminum mill products ................ 31,390 1,846 29,412 0 133 31,258 1,846 1,590

Builders' hardware .................... 245,544 187,999 49,404 1,598 6,544 237,403 189,596 94,415
Table B-5--Continued 

U.S. imports for consumption from Mexico under NAFTA and the production-sharing provisions (PSP) of HTS Chapter 98, by commodity groups,

1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Entered under

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

NAFTA U.S. content

and NAFTA HTS PSP All Total Total under HTS

Commodity group Total HTS PSP only only other NAFTA HTS PSP PSP

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table. B-15

Minerals and metals–Continued

Other metal products .................. 3,746,515 334,820 2,339,308 13,712 1,058,675 2,674,128 348,532 194,987

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ............................. 5,792,594 563,654 3,951,493 18,139 1,259,308 4,515,146 581,793 319,377

Miscellaneous manufacturers:

Luggage, handbags, and flat goods ....... 153,574 14,359 35,242 95,133 8,840 49,601 109,492 69,549

Jewelry ............................ 188,686 37,666 148,357 16 2,648 186,023 37,682 32,271

Motor vehicle and other furniture ......... 2,322,995 705,516 1,568,548 6,938 41,993 2,274,064 712,454 115,610

Lamps and lighting fixtures .............. 374,265 127,024 241,095 3,221 2,925 368,119 130,245 94,470

Other miscellaneous manufactured articles . 1,220,313 128,861 456,394 30,841 604,217 585,255 159,702 69,946

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ............................. 4,259,832 1,013,426 2,449,635 136,148 660,622 3,463,062 1,149,575 381,847

Machinery and equipment:

Air conditioning equipment .............. 879,346 221,966 525,662 27,544 104,173 747,628 249,511 180,221

Commercial machinery ................ 208,625 36,852 164,739 1,651 5,382 201,591 38,504 17,385

Household appliances, including heating and 

drying equipment ................... 981,056 273,385 622,778 21,162 63,731 896,164 294,547 166,879

Centrifuges, filtering and purifying equipment, 

and pumps for liquids ................ 416,303 71,602 303,341 6,724 34,635 374,943 78,327 61,445

Semiconductor equipment, robots, and other 

equipment ......................... 10,880 115 7,224 1,303 2,238 7,339 1,418 547

Taps, cocks, valves, and similar devices ... 910,175 545,268 282,229 23,928 58,750 827,497 569,196 413,606

Electric motors, generators and related 

equipment ......................... 1,550,760 1,028,980 382,907 44,485 94,389 1,411,887 1,073,465 663,921

Electrical transformers, static converters, 

and inductors ...................... 1,539,971 556,843 699,620 177,282 106,226 1,256,463 734,125 391,857

Powered handtools and parts thereof ...... 260,812 161,066 47,098 3,374 49,274 208,164 164,440 99,733

Flashlights and other similar electric lights,

light bulbs and fluorescent tubes;

 arc lights ......................... 218,103 116,029 65,693 22,760 13,621 181,722 138,789 87,920

Wiring harnesses for motor vehicles and other 

insulated electrical conduits ........... 4,761,216 2,614,432 1,582,087 206,186 358,510 4,196,520 2,820,618 1,615,691

Miscellaneous machinery and equipment ... 789,059 238,433 338,798 95,140 116,688 577,231 333,573 129,572

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ............................. 12,526,307 5,864,972 5,022,177 631,540 1,007,618 10,887,149 6,496,513 3,828,776
Table B-5--Continued 

U.S. imports for consumption from Mexico under NAFTA and the production-sharing provisions (PSP) of HTS Chapter 98, by commodity groups,

1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Entered under

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

NAFTA U.S. content

and NAFTA HTS PSP All Total Total under HTS

Commodity group Total HTS PSP only only other NAFTA HTS PSP PSP

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table. B-16

Transportation equipment:

Aircraft engines and gas turbines ......... 81,725 42,092 1,517 6,719 31,398 43,608 48,811 38,702

Motors and engines, except internal 

combustion, aircraft, or electric ......... 18,307 10,488 7,573 0 246 18,061 10,488 7,683

Internal combustion piston engines, other 

than for aircraft ..................... 2,271,712 85,193 1,971,895 3,878 210,746 2,057,087 89,071 34,268

Transportation equipment--Continued

Construction and mining equipment ....... 354,812 0 263,258 0 91,553 263,258 0 0

Forklift trucks and similar industrial vehicles . 30,299 0 0 0 30,299 0 0 0

Ball and rollers bearings ................ 57,931 27,093 28,916 224 1,698 56,010 27,317 15,385

Certain motor-vehicle parts ............. 3,184,094 1,260,232 1,672,734 78,267 172,861 2,932,966 1,338,499 924,286

Primary cells and batteries, and electric 

storage batteries .................... 376,532 130,540 179,929 41,327 24,736 310,469 171,867 69,201

Ignition starting, lighting, and other electrical 

equipment ......................... 596,652 262,522 157,316 85,843 90,972 419,837 348,365 207,215

Rail locomotive and rolling stock ......... 314,541 11 243,696 0 70,835 243,706 11 10

Automobiles, trucks, buses, and bodies and 

chassis of the foregoing .............. 13,224,569 444,877 12,750,878 1,496 27,318 13,195,756 446,373 249,080

Aircraft, spacecraft, and related equipment, 

except engines ..................... 48,754 0 613 24,841 23,299 613 24,841 18,001

Ships, tugs, pleasure boats, and similar 

vessels ........................... 4,976 11 4,516 0 450 4,527 11 10

Miscellaneous vehicles and transportationrelated equipment ................... 206,494 138,677 38,808 75 28,935 177,485 138,751 71,365

Motorcycles, mopeds, and parts .......... 10,270 16 3,581 0 6,673 3,597 16 8

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ............................. 20,781,669 2,401,750 17,325,230 242,670 812,018 19,726,981 2,644,420 1,635,214

Electronic products:

Office machines ...................... 251,936 46,060 123,892 2,794 79,189 169,952 48,854 23,280

Telephone and telegraph apparatus ....... 1,064,410 173,421 598,701 31,207 261,081 772,122 204,628 112,038

Optical fibers, optical fiber bundles and cables 23,530 3,666 18,027 953 885 21,693 4,619

2,805

Microphones, loudspeakers, audio amplifiers, 

and combinations thereof ............. 467,522 168,815 153,655 104,996 40,056 322,470 273,811 80,754

Tape recorders, tape players, video cassette 

recorders, turntables, and compact 

disc players ....................... 576,528 114,592 390,866 65,201 5,869 505,458 179,792 29,259
Table B-5--Continued 

U.S. imports for consumption from Mexico under NAFTA and the production-sharing provisions (PSP) of HTS Chapter 98, by commodity groups,

1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Entered under

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

NAFTA U.S. content

and NAFTA HTS PSP All Total Total under HTS

Commodity group Total HTS PSP only only other NAFTA HTS PSP PSP

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table. B-17

Electronic products--Continued

Unrecorded magnetic tapes, discs, and 

other media ....................... 197,974 2,145 104,139 28,865 62,825 106,284 31,009 10,422

Records, tapes, compact discs, computer 

software, and other recorded media ..... 41,218 263 33,988 0 6,967 34,252 263 76

Radio navigational aid, radar, and remote 

control apparatus ................... 78,902 65,722 10,068 1,672 1,441 75,789 67,393 23,050

Radio transmission and reception apparatus, 

and combinations thereof ............. 2,002,745 870,583 769,862 150,917 211,383 1,640,445 1,021,500 131,483

Television receivers, video monitors, and 

combinations including television 

receivers .......................... 4,078,211 2,308,125 1,504,481 62,940 202,664 3,812,606 2,371,066 1,152,362

Television picture tubes and other 

cathode-ray tubes ................... 257,922 20,109 175,310 25,158 37,344 195,419 45,267 16,116

Television apparatus (except receivers and 

monitors), including cameras camcorders 

and cable apparatus ................. 1,258,202 236,386 834,504 10,335 176,977 1,070,890 246,721 60,723

Electric sound and visual signaling 

apparatus ......................... 247,681 172,314 54,495 17,242 3,630 226,809 189,556 37,778

Special-purpose tubes ................. 14,890 14,328 0 457 105 14,328 14,785 7,102

Electrical and electronic articles, apparatus, 

and parts not elsewhere provided for ..... 174,525 103,340 53,914 10,237 7,034 157,254 113,577 40,038

Electrical capacitors and resistors ........ 477,821 329,345 140,016 1,256 7,204 469,362 330,601 228,670

Apparatus for making, breaking, protecting, 

or connecting electrical circuits ......... 2,368,731 1,536,683 525,920 194,122 112,006 2,062,603 1,730,805 964,810

Semiconductor devices ................ 883,457 6,193 283 659,822 217,159 6,476 666,015 274,846

Computer hardware ................... 5,447,704 226,058 1,315,894 883,375 3,022,378 1,541,952 1,109,433 410,218

Photographic cameras and equipment ..... 162,346 0 133,776 507 28,064 133,776 507 331

Photographic supplies ................. 140,439 0 140,014 0 426 140,014 0 0

Exposed photographic plates, film, 

and paper ......................... 508 0 0 0 508 0 0 0

Medical goods ....................... 850,658 585,157 114,482 42,017 109,002 699,639 627,174 319,775

Optical goods ........................ 69,901 2,044 65,433 1,444 980 67,477 3,488 1,717

Surveying and navigational instruments .... 67,350 41,658 626 1,031 24,036 42,283 42,688 18,542

Balances of a sensitivity of 5 cgs or better . . 0 0 0 0 0 0 0 0

Drawing and mathematical calculating and 

measuring instruments ............... 2,923 0 2,549 0 374 2,549 0 0

Watches ........................... 1,146 0 1,069 0 77 1,069 0 0
Table B-5--Continued 

U.S. imports for consumption from Mexico under NAFTA and the production-sharing provisions (PSP) of HTS Chapter 98, by commodity groups,

1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Entered under

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

NAFTA U.S. content

and NAFTA HTS PSP All Total Total under HTS

Commodity group Total HTS PSP only only other NAFTA HTS PSP PSP

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-18

Electronic products--Continued

Clocks and timing devices .............. 81,333 79,203 1,665 318 147 80,868 79,521 51,268

Measuring, testing, controlling and analyzing 

instruments ........................ 1,964,797 604,828 607,208 284,140 468,621 1,212,036 888,968 424,077

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ............................. 23,255,310 7,711,039 7,874,836 2,581,002 5,088,432 15,585,875 10,292,042 4,421,541

Special provisions ...................... 3,916,073 0 191,529 31 3,724,513 191,529 31 19

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Grand total ........................ 93,017,358 18,830,747 49,494,943 8,331,398 16,360,269 68,325,690 27,162,145 14,483,769

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Note.--Calculations based on unrouded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table B-6

U.S. imports for consumption from Japan, total and under the production-sharing provisions (PSP) of HTS

Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-19

Agricultural products .............................. 444,640 0 0

Forest products .................................. 514,594 0 0

Chemicals, coal, petroleum, natural gas, and related products:

Fabricated plastic and rubber products ............... 2,200,161 492 124

Other energy and chemical products ................ 6,330,343 146 116

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 8,530,504 638 240

Textiles, apparel, and footwear:

Textiles and textile products ....................... 510,346 151 102

Medical apparel ................................ 77,688 26 20

Men's and boys' suits and sports coats ............... 787 0 0

Men's and boys' coats and jackets .................. 998 0 0

Men's and boys' trousers ......................... 820 0 0

Women's and girls' trousers ....................... 9,471 0 0

Shirts and blouses .............................. 5,160 0 0

Women's and girls' suits, skirts and coats ............ 13,414 0 0

Women's and girls' dresses ....................... 1,775 0 0

Robes, nightwear, and underwear .................. 1,156 0 0

Hosiery ...................................... 5,956 0 0

Foundation garments ............................ 63 0 0

Gloves including gloves for sports .................. 6,680 0 0

Headwear ..................................... 22,648 0 0

Other wearing apparel and accessories .............. 20,153 0 0

Footwear and parts ............................. 1,877 53 3

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 678,990 230 126

Minerals and metals:

Steel mill products .............................. 2,914,034 0 0

Copper and related products ...................... 195,103 11,159 6,112

Aluminum mill products .......................... 122,967 16,703 10,360

Builders' hardware .............................. 40,370 0 0

Other metal products ............................ 3,389,876 4,650 4,362

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 6,662,349 32,512 20,833

Miscellaneous manufacturers:

Luggage, handbags, and flat goods ................. 5,377 0 0

Jewelry ...................................... 24,169 0 0

Motor vehicle and other furniture ................... 148,168 0 0

Lamps and lighting fixtures ........................ 39,018 0 0

Other miscellaneous manufactured articles ........... 3,814,233 5,330 1,271

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 4,030,965 5,330 1,271

Machinery and equipment:

Air conditioning equipment ........................ 760,727 0 0

Commercial machinery .......................... 121,788 0 0

Household appliances, including heating and 

drying equipment ............................. 282,473 58 14

Centrifuges, filtering and purifying equipment, and 

pumps for liquids ............................. 505,770 0 0

Semiconductor equipment, robots, and other equipment . . 2,032,232 418 64

Taps, cocks, valves, and similar devices ............. 573,435 4 3

Electric motors, generators, and related equipment ..... 767,795 1,046 557

Electrical transformers, static converters, and inductors . . 421,117 60 10

Powered handtools and parts thereof ................ 306,526 7 (

1

)

Flashlights and other similar electric lights, light bulbs, 

and fluorescent tubes; arc lights .................. 184,877 0 0

Wiring harnesses for motor vehicles and other insulated 

electrical conduits ............................. 202,832 16 (1)

Miscellaneous machinery and equipment ............. 7,088,307 54,078 6,050

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 13,247,880 55,686 6,699
Table B-6--Continued

U.S. imports for consumption from Japan, total and under the production-sharing provisions (PSP) of HTS

Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-20

Transportation equipment:

Aircraft engines and gas turbines ................... 423,348 2,857 2,000

Motors and engines, except internal combustion, 

aircraft, or electric ............................. 141,417 0 0

Internal combustion piston engines, other than 

for aircraft ................................... 3,274,597 60,617 6,019

Construction and mining equipment ................. 1,660,439 103,159 21,375

Forklift trucks and similar industrial vehicles ........... 276,276 0 0

Ball and rollers bearings .......................... 573,462 0 0

Certain motor-vehicle parts ....................... 3,491,237 120,893 1,015

Primary cells and batteries, and electric 

storage batteries .............................. 846,474 148,054 10,278

Ignition starting, lighting, and other electrical equipment . . 694,967 0 0

Rail locomotive and rolling stock ................... 100,711 35,884 8,434

Automobiles, trucks, buses, and bodies and 

chassis of the foregoing ........................ 28,863,702 11,464,990 201,194

Aircraft, spacecraft, and related equipment, 

except engines ............................... 1,445,056 1,521 1,300

Ships, tugs, pleasure boats, and similar vessels ........ 33,800 0 0

Miscellaneous vehicles and transportationrelated equipment ............................. 473,397 310 1

Motorcycles, mopeds, and parts .................... 993,409 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 43,292,292 11,938,285 251,616

Electronic products:

Office machines ................................ 2,686,017 0 0

Telephone and telegraph apparatus ................. 1,735,996 1,935 262

Optical fibers, optical fiber bundles and cables ......... 49,723 0 0

Microphones, loudspeakers, audio amplifiers, and 

combinations thereof ........................... 185,012 71 23

Tape recorders, tape players, video cassette recorders, 

turntables, and compact disc players .............. 2,000,696 7 7

Unrecorded magnetic tapes, discs, and other media ..... 996,754 0 0

Records, tapes, compact discs, computer software, 

and other recorded media ....................... 107,183 0 0

Radio navigational aid, radar, and remote 

control apparatus ............................. 94,583 81 73

Radio transmission and reception apparatus, 

and combinations thereof ....................... 1,167,310 379 22

Television receivers, video monitors, and combinations 

including television receivers ..................... 347,385 61 25

Television picture tubes and other cathode-ray tubes .... 365,971 0 0

Television apparatus (except receivers and monitors), 

including cameras camcorders and cable apparatus ... 2,485,282 2,678 464

Electric sound and visual signaling apparatus .......... 491,770 0 0

Special-purpose tubes ........................... 49,107 0 0

Electrical and electronic articles, apparatus, and parts 

not elsewhere provided for ...................... 327,476 9,524 635

Electrical capacitors and resistors .................. 756,827 0 0

Apparatus for making, breaking, protecting, or 

connecting electrical circuits ..................... 1,775,954 1,922 983

Semiconductor devices .......................... 6,163,100 286,202 217,507

Computer hardware ............................. 13,082,674 6,964 630

Photographic cameras and equipment ............... 729,564 0 0

Photographic supplies ........................... 608,714 0 0

Exposed photographic plates, film, and paper .......... 20,881 0 0

Medical goods ................................. 1,145,157 10,661 608

Optical goods .................................. 894,078 601 156

Surveying and navigational instruments .............. 111,940 7,150 2,985

Balances of a sensitivity of 5 cgs or better ............ 3,222 0 0

Drawing and mathematical calculating and 

measuring instruments ......................... 76,545 16 16

Watches ..................................... 808,205 985 199

Clocks and timing devices ........................ 44,960 0 0

Measuring, testing, controlling and analyzing 

instruments .................................. 1,524,184 1,146 225

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 40,836,268 330,384 224,820
Table B-6--Continued

U.S. imports for consumption from Japan, total and under the production-sharing provisions (PSP) of HTS

Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-21

Special provisions ................................ 3,074,867 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Grand total .................................. 121,313,351 12,363,065 505,604

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1Less than $500.

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table B-7

U.S. imports for consumption from Germany, total and under the production-sharing provisions (PSP) of

HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-22

Agricultural products .............................. 825,818 0 0

Forest products .................................. 695,994 302 214

Chemicals, coal, petroleum, natural gas, and related products:

Fabricated plastic and rubber products ............... 774,916 522 369

Other energy and chemical products ................ 7,338,576 2,627 1,027

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 8,113,492 3,150 1,396

Textiles, apparel, and footwear:

Textiles and textile products ....................... 366,033 3 1

Medical apparel ................................ 11,828 0 0

Men's and boys' suits and sports coats ............... 4,727 0 0

Men's and boys' coats and jackets .................. 1,695 0 0

Men's and boys' trousers ......................... 908 0 0

Women's and girls' trousers ....................... 6,949 0 0

Shirts and blouses .............................. 12,415 0 0

Women's and girls' suits, skirts and coats ............ 30,431 0 0

Women's and girls' dresses ....................... 5,138 0 0

Robes, nightwear, and underwear .................. 938 0 0

Hosiery ...................................... 5,393 0 0

Foundation garments ............................ 84 0 0

Gloves including gloves for sports .................. 2,131 0 0

Headwear ..................................... 3,457 0 0

Other wearing apparel and accessories .............. 16,897 0 0

Footwear and parts ............................. 74,604 60 2

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 543,628 63 4

Minerals and metals:

Steel mill products .............................. 1,029,241 0 0

Copper and related products ...................... 160,550 0 0

Aluminum mill products .......................... 297,919 0 0

Builders' hardware .............................. 47,745 0 0

Other metal products ............................ 1,898,194 12,034 4,236

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 3,433,649 12,034 4,236

Miscellaneous manufacturers:

Luggage, handbags, and flat goods ................. 9,764 0 0

Jewelry ...................................... 40,983 11 4

Motor vehicle and other furniture ................... 172,479 0 0

Lamps and lighting fixtures ........................ 52,346 0 0

Other miscellaneous manufactured articles ........... 735,478 7 5

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 1,011,049 18 9

Machinery and equipment:

Air conditioning equipment ........................ 308,887 3,637 168

Commercial machinery .......................... 139,371 2 2

Household appliances, including heating and 

drying equipment ............................. 346,531 2,397 406

Centrifuges, filtering and purifying equipment, and 

pumps for liquids ............................. 750,051 1,096 61

Semiconductor equipment, robots, and other equipment . . 563,632 1,273 207

Taps, cocks, valves, and similar devices ............. 404,544 4 1

Electric motors, generators and related equipment ...... 349,315 5,680 200

Electrical transformers, static converters, and inductors . . 168,441 3 2

Powered handtools and parts thereof ................ 153,656 0 0

Flashlights and other similar electric lights, light bulbs, 

and fluorescent tubes; arc lights .................. 92,550 20 (

1

)

Wiring harnesses for motor vehicles and other insulated 

electrical conduits ............................. 86,927 96 3

Miscellaneous machinery and equipment ............. 6,185,482 82,136 4,938

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 9,549,387 96,344 5,988
Table B-7--Continued

U.S. imports for consumption from Germany, total and under the production-sharing provisions (PSP) of

HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-23

Transportation equipment:

Aircraft engines and gas turbines ................... 984,475 0 0

Motors and engines, except internal combustion, 

aircraft, or electric ............................. 109,520 0 0

Internal combustion piston engines, other than 

for aircraft ................................... 829,378 3,704 2,142

Construction and mining equipment ................. 548,762 0 0

Forklift trucks and similar industrial vehicles ........... 88,833 0 0

Ball and rollers bearings .......................... 183,043 33 21

Certain motor-vehicle parts ....................... 886,733 25,397 1,008

Primary cells and batteries, and electric 

storage batteries .............................. 32,107 20 3

Ignition starting, lighting, and other electrical equipment . . 158,595 865 398

Rail locomotive and rolling stock ................... 35,357 1 (

1

)

Automobiles, trucks, buses, and bodies and 

chassis of the foregoing ........................ 12,484,167 8,983,641 85,593

Aircraft, spacecraft, and related equipment, 

except engines ............................... 946,891 0 0

Ships, tugs, pleasure boats, and similar vessels ........ 58,081 225 25

Miscellaneous vehicles and transportationrelated equipment ............................. 143,018 0 0

Motorcycles, mopeds, and parts .................... 64,622 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 17,553,582 9,013,886 89,191

Electronic products:

Office machines ................................ 110,739 0 0

Telephone and telegraph apparatus ................. 117,802 0 0

Optical fibers, optical fiber bundles and cables ......... 13,494 0 0

Microphones, loudspeakers, audio amplifiers, and 

combinations thereof ........................... 42,168 310 293

Tape recorders, tape players, video cassette recorders, 

turntables, and compact disc players .............. 25,688 0 0

Unrecorded magnetic tapes, discs, and other media ..... 204,575 0 0

Records, tapes, compact discs, computer software, 

and other recorded media ....................... 83,495 0 0

Radio navigational aid, radar, and remote 

control apparatus ............................. 11,647 0 0

Radio transmission and reception apparatus, 

and combinations thereof ....................... 62,102 0 0

Television receivers, video monitors, and combinations 

including television receivers ..................... 9,104 0 0

Television picture tubes and other cathode-ray tubes .... 15,290 0 0

Television apparatus (except receivers and monitors), 

including cameras camcorders and cable apparatus ... 12,434 0 0

Electric sound and visual signaling apparatus .......... 25,311 12 (

1

)

Special-purpose tubes ........................... 37,284 0 0

Electrical and electronic articles, apparatus, and parts 

not elsewhere provided for ...................... 99,538 24 20

Electrical capacitors and resistors .................. 43,134 0 0

Apparatus for making, breaking, protecting, or 

connecting electrical circuits ..................... 731,776 4,055 366

Semiconductor devices .......................... 572,366 23,090 11,051

Computer hardware ............................. 653,846 572 363

Photographic cameras and equipment ............... 79,680 3 2

Photographic supplies ........................... 194,931 0 0

Exposed photographic plates, film, and paper .......... 2,097 0 0

Medical goods ................................. 1,182,372 226 158

Optical goods .................................. 290,395 75 49

Surveying and navigational instruments .............. 45,003 0 0

Balances of a sensitivity of 5 cgs or better ............ 7,436 0 0

Drawing and mathematical calculating and 

measuring instruments ......................... 13,085 0 0

Watches ..................................... 8,164 0 0

Clocks and timing devices ........................ 47,347 45 2

Measuring, testing, controlling and analyzing 

instruments .................................. 1,033,344 4,057 505

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 5,775,647 32,468 12,809
Table B-7--Continued

U.S. imports for consumption from Germany, total and under the production-sharing provisions (PSP) of

HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-24

Special provisions ................................ 2,293,305 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Grand total .................................. 49,795,551 9,158,266 113,847

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1Less than $500.

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table B-8

U.S. imports for consumption from the Dominican Republic, total and under the production-sharing

provisions (PSP) of HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-25

Agricultural products .............................. 605,204 0 0

Forest products .................................. 5,388 172 11

Chemicals, coal, petroleum, natural gas, and related products:

Fabricated plastic and rubber products ............... 31,876 144 52

Other energy and chemical products ................ 9,153 332 66

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 41,029 476 118

Textiles, apparel, and footwear:

Textiles and textile products ....................... 39,122 22,397 15,108

Medical apparel ................................ 9,586 16 2

Men's and boys' suits and sports coats ............... 111,134 97,418 70,810

Men's and boys' coats and jackets .................. 22,020 17,364 9,101

Men's and boys' trousers ......................... 663,418 644,160 349,721

Women's and girls' trousers ....................... 319,181 312,076 165,282

Shirts and blouses .............................. 343,681 266,306 200,621

Women's and girls' suits, skirts and coats ............ 135,800 126,385 80,009

Women's and girls' dresses ....................... 11,963 8,494 4,515

Robes, nightwear, and underwear .................. 373,013 365,863 245,809

Hosiery ...................................... 40,227 40,227 33,645

Foundation garments ............................ 182,072 180,001 128,421

Gloves including gloves for sports .................. 20 19 15

Headwear ..................................... 46,345 2,713 1,932

Other wearing apparel and accessories .............. 99,809 92,687 67,731

Footwear and parts ............................. 284,307 97,098 64,602

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 2,681,699 2,273,225 1,437,323

Minerals and metals:

Steel mill products .............................. 1,325 0 0

Copper and related products ...................... 2,954 0 0

Aluminum mill products .......................... 24 0 0

Builders' hardware .............................. 9,027 0 0

Other metal products ............................ 96,224 5,092 3,863

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 109,554 5,092 3,863

Miscellaneous manufacturers:

Luggage, handbags, and flat goods ................. 34,080 10,465 2,054

Jewelry ...................................... 160,278 28,156 23,420

Motor vehicle and other furniture ................... 5,168 0 0

Lamps and lighting fixtures ........................ 14 0 0

Other miscellaneous manufactured articles ........... 20,590 9,959 5,977

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 220,130 48,580 31,452

Machinery and equipment:

Air conditioning equipment ........................ 18 0 0

Commercial machinery .......................... 760 0 0

Household appliances, including heating and 

drying equipment ............................. 50 0 0

Centrifuges, filtering and purifying equipment, and 

pumps for liquids ............................. 343 0 0

Semiconductor equipment, robots, and other equipment . . 13 8 1

Taps, cocks, valves, and similar devices ............. 2 0 0

Electric motors, generators and related equipment ...... 278 184 73

Electrical transformers, static converters, and inductors . . 26,050 23,812 15,552

Powered handtools and parts thereof ................ 0 0 0

Flashlights and other similar electric lights, light bulbs,

and fluorescent tubes; arc lights .................. 16 0 0

Wiring harnesses for motor vehicles and other insulated 

electrical conduits ............................. 3,207 2,397 1,986

Miscellaneous machinery and equipment ............. 999 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 31,735 26,401 17,612
Table B-8--Continued

U.S. imports for consumption from the Dominican Republic, total and under the production-sharing

provisions (PSP) of HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-26

Transportation equipment:

Aircraft engines and gas turbines ................... 0 0 0

Motors and engines, except internal combustion, 

aircraft, or electric ............................. 0 0 0

Internal combustion piston engines, other than 

for aircraft ................................... 12 0 0

Construction and mining equipment ................. 22 0 0

Forklift trucks and similar industrial vehicles ........... 0 0 0

Ball and rollers bearings .......................... 0 0 0

Certain motor-vehicle parts ....................... 292 0 0

Primary cells and batteries, and electric 

storage batteries .............................. 0 0 0

Ignition starting, lighting, and other electrical equipment . . 5,041 0 0

Rail locomotive and rolling stock ................... 0 0 0

Automobiles, trucks, buses, and bodies and 

chassis of the foregoing ........................ 0 0 0

Aircraft, spacecraft, and related equipment, 

except engines ............................... 0 0 0

Ships, tugs, pleasure boats, and similar vessels ........ 0 0 0

Miscellaneous vehicles and transportationrelated equipment ............................. 4 0 0

Motorcycles, mopeds, and parts .................... 0 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 5,371 0 0

Electronic products:

Office machines ................................ 28 0 0

Telephone and telegraph apparatus ................. 4,661 0 0

Optical fibers, optical fiber bundles and cables ......... 6,351 6,215 4,871

Microphones, loudspeakers, audio amplifiers, and 

combinations thereof ........................... 8 6 2

Tape recorders, tape players, video cassette recorders, 

turntables, and compact disc players .............. 12 0 0

Unrecorded magnetic tapes, discs, and other media ..... 2 0 0

Records, tapes, compact discs, computer software, 

and other recorded media ....................... 41 0 0

Radio navigational aid, radar, and remote 

control apparatus ............................. 14 0 0

Radio transmission and reception apparatus, 

and combinations thereof ....................... 10 2 (

1

)

Television receivers, video monitors, and combinations 

including television receivers ..................... 7 0 0

Television picture tubes and other cathode-ray tubes .... 0 0 0

Television apparatus (except receivers and monitors), 

including cameras camcorders and cable apparatus ... 0 0 0

Electric sound and visual signaling apparatus .......... 41,823 6,701 3,724

Special-purpose tubes ........................... 0 0 0

Electrical and electronic articles, apparatus, and parts 

not elsewhere provided for ...................... 2,877 104 47

Electrical capacitors and resistors .................. 6,643 338 239

Apparatus for making, breaking, protecting, or 

connecting electrical circuits ..................... 236,794 158,865 108,974

Semiconductor devices .......................... 2,759 77 49

Computer hardware ............................. 266 4 2

Photographic cameras and equipment ............... 0 0 0

Photographic supplies ........................... 7 0 0

Exposed photographic plates, film, and paper .......... 0 0 0

Medical goods ................................. 320,187 268,145 152,281

Optical goods .................................. 16 0 0

Surveying and navigational instruments .............. 13 0 0

Balances of a sensitivity of 5 cgs or better ............ 0 0 0

Drawing and mathematical calculating and 

measuring instruments ......................... 0 0 0

Watches ..................................... (

1

) 0 0

Clocks and timing devices ........................ (

1

) 0 0

Measuring, testing, controlling and analyzing 

instruments .................................. 12,059 11,231 5,288

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 634,578 451,689 275,478
Table B-8--Continued

U.S. imports for consumption from the Dominican Republic, total and under the production-sharing

provisions (PSP) of HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-27

Special provisions ................................ 109,927 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Grand total .................................. 4,444,617 2,805,634 1,765,856

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1Less than $500.

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table B-9

U.S. imports for consumption from the Philippines, total and under the production-sharing provisions

(PSP) of HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-28

Agricultural products .............................. 761,493 0 0

Forest products .................................. 102,819 58 (

1

)

Chemicals, coal, petroleum, natural gas, and related products:

Fabricated plastic and rubber products ............... 34,931 0 0

Other energy and chemical products ................ 35,766 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 70,697 0 0

Textiles, apparel, and footwear:

Textiles and textile products ....................... 110,255 850 247

Medical apparel ................................ 1,617 0 0

Men's and boys' suits and sports coats ............... 18,093 0 0

Men's and boys' coats and jackets .................. 109,429 20 1

Men's and boys' trousers ......................... 138,443 4,036 47

Women's and girls' trousers ....................... 160,043 1,836 30

Shirts and blouses .............................. 502,237 18,818 304

Women's and girls' suits, skirts and coats ............ 226,750 4,657 641

Women's and girls' dresses ....................... 131,825 3,259 125

Robes, nightwear, and underwear .................. 87,468 1 (

1

)

Hosiery ...................................... 5,823 0 0

Foundation garments ............................ 40,160 13,644 6,340

Gloves including gloves for sports .................. 73,088 3,938 496

Headwear ..................................... 24,870 0 0

Other wearing apparel and accessories .............. 276,980 12,875 465

Footwear and parts ............................. 81,537 1,488 33

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 1,988,616 65,423 8,728

Minerals and metals:

Steel mill products .............................. 5,352 0 0

Copper and related products ...................... 480 0 0

Aluminum mill products .......................... 49 42 4

Builders' hardware .............................. 1,755 0 0

Other metal products ............................ 102,944 389 351

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 110,581 431 355

Miscellaneous manufacturers:

Luggage, handbags, and flat goods ................. 244,413 168 23

Jewelry ...................................... 7,491 0 0

Motor vehicle and other furniture ................... 227,103 0 0

Lamps and lighting fixtures ........................ 44,844 0 0

Other miscellaneous manufactured articles ........... 97,603 22 4

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 621,455 190 27

Machinery and equipment:

Air conditioning equipment ........................ 2,721 0 0

Commercial machinery .......................... 236 0 0

Household appliances, including heating and 

drying equipment ............................. 321 4 4

Centrifuges, filtering and purifying equipment, and 

pumps for liquids ............................. 1,573 0 0

Semiconductor equipment, robots, and other equipment . . 1,495 0 0

Taps, cocks, valves, and similar devices ............. 6,968 13 5

Electric motors, generators and related equipment ...... 22,523 0 0

Electrical transformers, static converters, and inductors . . 35,359 0 0

Powered handtools and parts thereof ................ 5 0 0

Flashlights and other similar electric lights, light bulbs, 

and fluorescent tubes; arc lights .................. 14,677 0 0

Wiring harnesses for motor vehicles and other insulated 

electrical conduits ............................. 213,521 97,210 31,266

Miscellaneous machinery and equipment ............. 1,812 3 1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 301,211 97,231 31,276
Table B-9--Continued

U.S. imports for consumption from the Philippines, total and under the production-sharing provisions

(PSP) of HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-29

Transportation equipment:

Aircraft engines and gas turbines ................... 5,475 0 0

Motors and engines, except internal combustion, 

aircraft, or electric ............................. 165 0 0

Internal combustion piston engines, other than 

for aircraft ................................... 616 0 0

Construction and mining equipment ................. 1,021 0 0

Forklift trucks and similar industrial vehicles ........... 59 0 0

Ball and rollers bearings .......................... 4 0 0

Certain motor-vehicle parts ....................... 32,034 0 0

Primary cells and batteries, and electric 

storage batteries .............................. 4,384 0 0

Ignition starting, lighting, and other electrical equipment . . 463 0 0

Rail locomotive and rolling stock ................... 1,139 0 0

Automobiles, trucks, buses, and bodies and 

chassis of the foregoing ........................ 9 0 0

Aircraft, spacecraft, and related equipment, 

except engines ............................... 5,262 874 437

Ships, tugs, pleasure boats, and similar vessels ........ 0 0 0

Miscellaneous vehicles and transportationrelated equipment ............................. 163 0 0

Motorcycles, mopeds, and parts .................... 1,182 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 51,975 874 437

Electronic products:

Office machines ................................ 9,974 0 0

Telephone and telegraph apparatus ................. 338,807 0 0

Optical fibers, optical fiber bundles and cables ......... 2 0 0

Microphones, loudspeakers, audio amplifiers, and 

combinations thereof ........................... 33,933 12 8

Tape recorders, tape players, video cassette recorders, 

turntables, and compact disc players .............. 504 0 0

Unrecorded magnetic tapes, discs, and other media ..... 1,269 0 0

Records, tapes, compact discs, computer software, 

and other recorded media ....................... 3,017 8 (1)

Radio navigational aid, radar, and remote 

control apparatus ............................. 1,587 0 0

Radio transmission and reception apparatus, 

and combinations thereof ....................... 136,293 436 96

Television receivers, video monitors, and combinations 

including television receivers ..................... 32,743 0 0

Television picture tubes and other cathode-ray tubes .... 0 0 0

Television apparatus (except receivers and monitors), 

including cameras camcorders and cable apparatus ... 28,630 0 0

Electric sound and visual signaling apparatus .......... 85,156 0 0

Special-purpose tubes ........................... 51 0 0

Electrical and electronic articles, apparatus, and parts 

not elsewhere provided for ...................... 25,078 1,786 855

Electrical capacitors and resistors .................. 15,764 0 0

Apparatus for making, breaking, protecting, or 

connecting electrical circuits ..................... 40,066 496 359

Semiconductor devices .......................... 3,884,488 2,025,034 1,077,145

Computer hardware ............................. 2,604,287 5,695 1,908

Photographic cameras and equipment ............... 62,145 0 0

Photographic supplies ........................... 1 0 0

Exposed photographic plates, film, and paper .......... 13 0 0

Medical goods ................................. 3,881 0 0

Optical goods .................................. 33,514 32 30

Surveying and navigational instruments .............. 1,121 0 0

Balances of a sensitivity of 5 cgs or better ............ 18 0 0

Drawing and mathematical calculating and 

measuring instruments ......................... 3 0 0

Watches ..................................... 166,189 55,746 7,140

Clocks and timing devices ........................ 708 13 6

Measuring, testing, controlling and analyzing 

instruments .................................. 34,100 246 159

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 7,543,344 2,089,506 1,087,706
Table B-9--Continued

U.S. imports for consumption from the Philippines, total and under the production-sharing provisions

(PSP) of HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-30

Special provisions ................................ 322,646 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Grand total .................................. 11,874,836 2,253,713 1,128,529

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1Less than $500.

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table B-10

U.S. imports for consumption from Malaysia, total and under the production-sharing provisions (PSP) of

HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-31

Agricultural products .............................. 247,947 0 0

Forest products .................................. 213,510 48 14

Chemicals, coal, petroleum, natural gas, and related products:

Fabricated plastic and rubber products ............... 61,811 0 0

Other energy and chemical products ................ 567,427 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 629,238 0 0

Textiles, apparel, and footwear:

Textiles and textile products ....................... 62,543 0 0

Medical apparel ................................ 1 0 0

Men's and boys' suits and sports coats ............... 0 0 0

Men's and boys' coats and jackets .................. 77,839 1,655 43

Men's and boys' trousers ......................... 81,811 1,207 18

Women's and girls' trousers ....................... 68,865 0 0

Shirts and blouses .............................. 292,998 14,632 932

Women's and girls' suits, skirts and coats ............ 42,163 21 1

Women's and girls' dresses ....................... 34,047 41 4

Robes, nightwear, and underwear .................. 28,505 209 4

Hosiery ...................................... 38 0 0

Foundation garments ............................ 3,573 0 0

Gloves including gloves for sports .................. 649,591 0 0

Headwear ..................................... 2,945 0 0

Other wearing apparel and accessories .............. 77,665 179 5

Footwear and parts ............................. 1,684 127 25

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 1,424,267 18,071 1,033

Minerals and metals:

Steel mill products .............................. 20,851 0 0

Copper and related products ...................... 18,630 0 0

Aluminum mill products .......................... 106 0 0

Builders' hardware .............................. 6,086 0 0

Other metal products ............................ 255,051 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 300,724 0 0

Miscellaneous manufacturers:

Luggage, handbags, and flat goods ................. 15,093 0 0

Jewelry ...................................... 11,288 24 22

Motor vehicle and other furniture ................... 406,237 0 0

Lamps and lighting fixtures ........................ 20,619 0 0

Other miscellaneous manufactured articles ........... 291,613 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 744,850 24 22

Machinery and equipment:

Air conditioning equipment ........................ 45,151 2,683 203

Commercial machinery .......................... 2,862 56 4

Household appliances, including heating and 

drying equipment ............................. 95,323 17,117 2,726

Centrifuges, filtering and purifying equipment, and 

pumps for liquids ............................. 1,963 0 0

Semiconductor equipment, robots, and other equipment . . 4,806 0 0

Taps, cocks, valves, and similar devices ............. 2,593 0 0

Electric motors, generators and related equipment ...... 19,695 812 358

Electrical transformers, static converters, and inductors . . 106,907 5,479 1,130

Powered handtools and parts thereof ................ 4,006 0 0

Flashlights and other similar electric lights, light bulbs, 

and fluorescent tubes; arc lights .................. 2,006 101 54

Wiring harnesses for motor vehicles and other insulated 

electrical conduits ............................. 45,206 74 73

Miscellaneous machinery and equipment ............. 18,634 40 1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 349,152 26,360 4,549
Table B-10--Continued

U.S. imports for consumption from Malaysia, total and under the production-sharing provisions (PSP) of

HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-32

Transportation equipment:

Aircraft engines and gas turbines ................... 17,027 0 0

Motors and engines, except internal combustion, 

aircraft, or electric ............................. 6 0 0

Internal combustion piston engines, other than 

for aircraft ................................... 1,838 0 0

Construction and mining equipment ................. 7,214 0 0

Forklift trucks and similar industrial vehicles ........... 555 0 0

Ball and rollers bearings .......................... 9,337 0 0

Certain motor-vehicle parts ....................... 6,433 0 0

Primary cells and batteries, and electric 

storage batteries .............................. 39,797 0 0

Ignition starting, lighting, and other electrical equipment . . 7,362 0 0

Rail locomotive and rolling stock ................... 2,924 0 0

Automobiles, trucks, buses, and bodies and 

chassis of the foregoing ........................ 0 0 0

Aircraft, spacecraft, and related equipment, 

except engines ............................... 2,014 162 80

Ships, tugs, pleasure boats, and similar vessels ........ 8,060 7,439 1,341

Miscellaneous vehicles and transportationrelated equipment ............................. 9,791 0 0

Motorcycles, mopeds, and parts .................... 0 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 112,357 7,601 1,421

Electronic products:

Office machines ................................ 115,616 0 0

Telephone and telegraph apparatus ................. 540,128 0 0

Optical fibers, optical fiber bundles and cables ......... 1,265 0 0

Microphones, loudspeakers, audio amplifiers, and 

combinations thereof ........................... 168,011 0 0

Tape recorders, tape players, video cassette recorders, 

turntables, and compact disc players .............. 1,075,858 0 0

Unrecorded magnetic tapes, discs, and other media ..... 43,860 0 0

Records, tapes, compact discs, computer software, 

and other recorded media ....................... 93,067 0 0

Radio navigational aid, radar, and remote 

control apparatus ............................. 2,256 0 0

Radio transmission and reception apparatus, and 

combinations thereof ........................... 1,086,556 1,115 731

Television receivers, video monitors, and combinations 

including television receivers ..................... 239,805 0 0

Television picture tubes and other cathode-ray tubes .... 20,483 0 0

Television apparatus (except receivers and monitors), 

including cameras camcorders and cable apparatus ... 35,755 0 0

Electric sound and visual signaling apparatus .......... 113,848 3,708 2,411

Special-purpose tubes ........................... 11 0 0

Electrical and electronic articles, apparatus, and parts 

not elsewhere provided for ...................... 48,806 155 84

Electrical capacitors and resistors .................. 21,413 0 0

Apparatus for making, breaking, protecting, or 

connecting electrical circuits ..................... 188,553 5,389 2,066

Semiconductor devices .......................... 4,315,938 1,701,801 875,620

Computer hardware ............................. 6,146,132 50,914 24,424

Photographic cameras and equipment ............... 138,012 0 0

Photographic supplies ........................... 153 0 0

Exposed photographic plates, film, and paper .......... 40 0 0

Medical goods ................................. 35,466 1,437 1,285

Optical goods .................................. 3,907 0 0

Surveying and navigational instruments .............. 1,341 0 0

Balances of a sensitivity of 5 cgs or better ............ 0 0 0

Drawing and mathematical calculating and 

measuring instruments ......................... 2,991 0 0

Watches ..................................... 24,417 0 0

Clocks and timing devices ........................ 2,216 0 0

Measuring, testing, controlling and analyzing 

instruments .................................. 49,327 14,024 1,493

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 14,515,231 1,778,543 908,114
Table B-10--Continued

U.S. imports for consumption from Malaysia, total and under the production-sharing provisions (PSP) of

HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-33

Special provisions ................................ 279,271 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Grand total .................................. 18,816,546 1,830,646 915,153

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table B-11

U.S. imports for consumption from Korea, total and under the production-sharing provisions (PSP) of HTS

Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-34

Agricultural products .............................. 160,063 0 0

Forest products .................................. 279,683 11 (

1

)

Chemicals, coal, petroleum, natural gas, and related products:

Fabricated plastic and rubber products ............... 600,811 375 107

Other energy and chemical products ................ 682,751 11 7

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 1,283,561 386 114

Textiles, apparel, and footwear:

Textiles and textile products ....................... 904,714 3,446 452

Medical apparel ................................ 2,031 0 0

Men's and boys' suits and sports coats ............... 32,916 169 2

Men's and boys' coats and jackets .................. 224,820 514 4

Men's and boys' trousers ......................... 51,257 65 1

Women's and girls' trousers ....................... 149,329 3,583 24

Shirts and blouses .............................. 727,300 2,279 29

Women's and girls' suits, skirts and coats ............ 232,449 15,001 540

Women's and girls' dresses ....................... 79,206 5,863 188

Robes, nightwear, and underwear .................. 32,306 0 0

Hosiery ...................................... 54,380 0 0

Foundation garments ............................ 3,807 0 0

Gloves including gloves for sports .................. 28,146 0 0

Headwear ..................................... 76,247 0 0

Other wearing apparel and accessories .............. 354,351 2,022 69

Footwear and parts ............................. 181,409 41,515 3,052

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 3,134,667 74,454 4,361

Minerals and metals:

Steel mill products .............................. 1,173,059 0 0

Copper and related products ...................... 38,987 0 0

Aluminum mill products .......................... 24,968 0 0

Builders' hardware .............................. 26,128 0 0

Other metal products ............................ 811,948 698 74

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 2,075,090 698 74

Miscellaneous manufacturers:

Luggage, handbags, and flat goods ................. 159,654 5,657 84

Jewelry ...................................... 174,909 1,169 636

Motor vehicle and other furniture ................... 64,919 0 0

Lamps and lighting fixtures ........................ 21,893 0 0

Other miscellaneous manufactured articles ........... 506,311 75 1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 927,686 6,901 720

Machinery and equipment:

Air conditioning equipment ........................ 218,407 0 0

Commercial machinery .......................... 14,861 0 0

Household appliances, including heating and 

drying equipment ............................. 516,972 0 0

Centrifuges, filtering and purifying equipment, and 

pumps for liquids ............................. 36,995 8,086 2,715

Semiconductor equipment, robots, and other equipment . . 49,374 0 0

Taps, cocks, valves, and similar devices ............. 85,284 0 0

Electric motors, generators and related equipment ...... 105,326 0 0

Electrical transformers, static converters and inductors . . 67,387 15 8

Powered handtools and parts thereof ................ 4,055 0 0

Flashlights and other similar electric lights, light bulbs, 

and fluorescent tubes; arc lights .................. 69,010 0 0

Wiring harnesses for motor vehicles and other insulated 

electrical conduits ............................. 16,808 11 1

Miscellaneous machinery and equipment ............. 336,178 27,700 2,633

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 1,520,657 35,813 5,357
Table B-11--Continued

U.S. imports for consumption from Korea, total and under the production-sharing provisions (PSP) of HTS

Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-35

Transportation equipment:

Aircraft engines and gas turbines ................... 70,956 0 0

Motors and engines, except internal combustion, 

aircraft, or electric ............................. 3,238 0 0

Internal combustion piston engines, other than 

for aircraft ................................... 31,007 0 0

Construction and mining equipment ................. 297,477 23,136 3,614

Forklift trucks and similar industrial vehicles ........... 110,703 0 0

Ball and rollers bearings .......................... 19,333 0 0

Certain motor-vehicle parts ....................... 174,012 14,967 7,881

Primary cells and batteries, and electric 

storage batteries .............................. 29,143 0 0

Ignition starting, lighting, and other electrical equipment . . 77,776 8,083 2,200

Rail locomotive and rolling stock ................... 10,224 0 0

Automobiles, trucks, buses, and bodies and 

chassis of the foregoing ........................ 1,691,394 127,397 1,486

Aircraft, spacecraft, and related equipment, 

except engines ............................... 141,046 0 0

Ships, tugs, pleasure boats, and similar vessels ........ 3,359 0 0

Miscellaneous vehicles and transportationrelated equipment ............................. 28,380 0 0

Motorcycles, mopeds, and parts .................... 4,692 86 77

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 2,692,740 173,669 15,258

Electronic products:

Office machines ................................ 85,481 0 0

Telephone and telegraph apparatus ................. 747,506 1,402 1,086

Optical fibers, optical fiber bundles and cables ......... 81 0 0

Microphones, loudspeakers, audio amplifiers, 

and combinations thereof ....................... 131,502 0 0

Tape recorders, tape players, video cassette recorders, 

turntables, and compact disc players .............. 207,083 0 0

Unrecorded magnetic tapes, discs, and other media ..... 190,051 0 0

Records, tapes, compact discs, computer software, 

and other recorded media ....................... 10,189 0 0

Radio navigational aid, radar, and remote 

control apparatus ............................. 10,518 6 5

Radio transmission and reception apparatus, 

and combinations thereof ....................... 291,034 0 0

Television receivers, video monitors, and combinations 

including television receivers ..................... 73,069 0 0

Television picture tubes and other cathode-ray tubes .... 7,197 0 0

Television apparatus (except receivers and monitors), 

including cameras camcorders and cable apparatus ... 108,685 550 52

Electric sound and visual signaling apparatus .......... 89,066 0 0

Special-purpose tubes ........................... 4,471 0 0

Electrical and electronic articles, apparatus, and parts 

not elsewhere provided for ...................... 17,595 12 3

Electrical capacitors and resistors .................. 26,662 0 0

Apparatus for making, breaking, protecting, or 

connecting electrical circuits ..................... 206,127 494 271

Semiconductor devices .......................... 5,248,460 1,303,784 757,302

Computer hardware ............................. 3,381,499 2,628 1,480

Photographic cameras and equipment ............... 49,950 0 0

Photographic supplies ........................... 4,454 0 0

Exposed photographic plates, film, and paper .......... 24,558 0 0

Medical goods ................................. 33,905 0 0

Optical goods .................................. 129,072 5 3

Surveying and navigational instruments .............. 5,416 0 0

Balances of a sensitivity of 5 cgs or better ............ 39 0 0

Drawing and mathematical calculating and 

measuring instruments ......................... 5,045 0 0

Watches ..................................... 18,371 0 0

Clocks and timing devices ........................ 2,958 0 0

Measuring, testing, controlling and analyzing 

instruments .................................. 44,893 422 124

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 11,154,937 1,309,302 760,325
Table B-11--Continued

U.S. imports for consumption from Korea, total and under the production-sharing provisions (PSP) of HTS

Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-36

Special provisions ................................ 471,834 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Grand total .................................. 23,700,920 1,601,233 786,209

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1Less than $500.

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table B-12 

U.S. imports for consumption from Canada, total and under the production-sharing provisions (PSP) of

HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-37

Agricultural products .............................. 9,784,066 69 59

Forest products .................................. 21,233,708 11,624 4,434

Chemicals, coal, petroleum, natural gas, and related products:

Fabricated plastic and rubber products ............... 4,554,946 4,414 1,255

Other energy and chemical products ................ 23,421,187 34,406 14,209

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 27,976,133 38,820 15,464

Textiles, apparel, and footwear:

Textiles and textile products ....................... 1,595,737 13,833 2,507

Medical apparel ................................ 45,131 0 0

Men's and boys' suits and sports coats ............... 219,716 3,355 208

Men's and boys' coats and jackets .................. 34,278 0 0

Men's and boys' trousers ......................... 118,949 223 150

Women's and girls' trousers ....................... 208,441 1 (

1

)

Shirts and blouses .............................. 374,373 20,101 13,766

Women's and girls' suits, skirts and coats ............ 109,704 33 14

Women's and girls' dresses ....................... 42,697 2 1

Robes, nightwear, and underwear .................. 72,154 0 0

Hosiery ...................................... 67,306 0 0

Foundation garments ............................ 7,936 2 1

Gloves including gloves for sports .................. 22,319 0 0

Headwear ..................................... 35,397 1 1

Other wearing apparel and accessories .............. 242,363 261 129

Footwear and parts ............................. 100,403 54 47

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 3,296,904 37,865 16,825

Minerals and metals:

Steel mill products .............................. 2,511,981 21,495 16,223

Copper and related products ...................... 1,134,659 1,708 184

Aluminum mill products .......................... 1,074,176 4,230 3,000

Builders' hardware .............................. 88,799 248 155

Other metal products ............................ 12,272,123 27,573 19,976

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 17,081,737 55,254 39,538

Miscellaneous manufacturers:

Luggage, handbags, and flat goods ................. 34,126 87 4

Jewelry ...................................... 158,167 55 37

Motor vehicle and other furniture ................... 4,026,393 253 161

Lamps and lighting fixtures ........................ 165,145 1,277 180

Other miscellaneous manufactured articles ........... 887,630 3,458 575

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 5,271,461 5,130 958

Machinery and equipment:

Air conditioning equipment ........................ 351,391 9,185 2,804

Commercial machinery .......................... 292,884 9,985 2,294

Household appliances, including heating and 

drying equipment ............................. 451,852 6,099 1,338

Centrifuges, filtering and purifying equipment, and 

pumps for liquids ............................. 692,262 7,910 2,473

Semiconductor equipment, robots, and other equipment . . 244,910 1,564 562

Taps, cocks, valves, and similar devices ............. 351,053 1,186 781

Electric motors, generators and related equipment ...... 482,154 1,200 627

Electrical transformers, static converters, and inductors . . 370,082 28 19

Powered handtools and parts thereof ................ 41,664 0 0

Flashlights and other similar electric lights, light bulbs, 

and fluorescent tubes; arc lights .................. 148,816 11,845 3,971

Wiring harnesses for motor vehicles and other insulated 

electrical conduits ............................. 527,440 997 471

Miscellaneous machinery and equipment ............. 5,170,744 37,630 17,294

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 9,125,252 87,629 32,635
Table B-12--Continued

U.S. imports for consumption from Canada, total and under the production-sharing provisions (PSP) of

HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-38

Transportation equipment:

Aircraft engines and gas turbines ................... 1,396,025 1,656 375

Motors and engines, except internal combustion, 

aircraft, or electric ............................. 95,497 661 527

Internal combustion piston engines, other than 

for aircraft ................................... 3,303,125 8,425 7,812

Construction and mining equipment ................. 526,586 4,454 965

Forklift trucks and similar industrial vehicles ........... 398,809 113 47

Ball and rollers bearings .......................... 214,185 12 4

Certain motor-vehicle parts ....................... 7,576,068 40,957 16,943

Primary cells and batteries, and electric 

storage batteries .............................. 54,358 13,078 5,787

Ignition starting, lighting, and other electrical equipment . . 150,480 0 0

Rail locomotive and rolling stock ................... 1,380,354 7,217 2,950

Automobiles, trucks, buses, and bodies and 

chassis of the foregoing ........................ 37,671,080 23,686 12,553

Aircraft, spacecraft, and related equipment, 

except engines ............................... 3,473,401 5,470 4,985

Ships, tugs, pleasure boats, and similar vessels ........ 370,068 17,859 4,119

Miscellaneous vehicles and transportationrelated equipment ............................. 539,325 17,490 6,472

Motorcycles, mopeds, and parts .................... 7,483 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 57,156,844 141,077 63,537

Electronic products:

Office machines ................................ 222,574 50 38

Telephone and telegraph apparatus ................. 2,063,798 185 80

Optical fibers, optical fiber bundles and cables ......... 196,507 185 106

Microphones, loudspeakers, audio amplifiers, and 

combinations thereof ........................... 82,136 1,131 265

Tape recorders, tape players, video cassette recorders, 

turntables, and compact disc players .............. 8,796 0 0

Unrecorded magnetic tapes, discs, and other media ..... 18,391 0 0

Records, tapes, compact discs, computer software, 

and other recorded media ....................... 245,236 0 0

Radio navigational aid, radar, and remote 

control apparatus ............................. 179,729 21 20

Radio transmission and reception apparatus, 

and combinations thereof ....................... 994,926 1,022 820

Television receivers, video monitors, and combinations 

including television receivers ..................... 14,051 0 0

Television picture tubes and other cathode-ray tubes .... 6,207 0 0

Television apparatus (except receivers and monitors), 

including cameras camcorders and cable apparatus ... 93,598 0 0

Electric sound and visual signaling apparatus .......... 189,170 122 34

Special-purpose tubes ........................... 8,995 0 0

Electrical and electronic articles, apparatus, and parts 

not elsewhere provided for ...................... 265,915 887 215

Electrical capacitors and resistors .................. 27,346 0 0

Apparatus for making, breaking, protecting, or 

connecting electrical circuits ..................... 1,031,535 20,730 8,014

Semiconductor devices .......................... 2,259,924 9,562 6,059

Computer hardware ............................. 3,544,583 2,898 767

Photographic cameras and equipment ............... 33,101 2 2

Photographic supplies ........................... 192,944 0 0

Exposed photographic plates, film, and paper .......... 64,037 0 0

Medical goods ................................. 184,867 1,669 444

Optical goods .................................. 232,694 153 120

Surveying and navigational instruments .............. 120,456 153 96

Balances of a sensitivity of 5 cgs or better ............ 26 0 0

Drawing and mathematical calculating and 

measuring instruments ......................... 21,630 8,262 2,758

Watches ..................................... 912 0 0

Clocks and timing devices ........................ 9,633 563 76

Measuring, testing, controlling and analyzing 

instruments .................................. 796,485 2,766 1,057

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 13,110,202 50,361 20,970
Table B-12--Continued

U.S. imports for consumption from Canada, total and under the production-sharing provisions (PSP) of

HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-39

Special provisions ................................ 10,649,152 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Grand total .................................. 174,685,459 427,830 194,419

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1Less than $500.

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table B-13

U.S. imports for consumption from the United Kingdom, total and under the production-sharing provisions

(PSP) of HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-40

Agricultural products .............................. 1,133,503 0 0

Forest products .................................. 789,090 0 0

Chemicals, coal, petroleum, natural gas, and related products:

Fabricated plastic and rubber products ............... 688,919 135 82

Other energy and chemical products ................ 6,260,049 32,877 24,881

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 6,948,968 33,012 24,963

Textiles, apparel, and footwear:

Textiles and textile products ....................... 394,318 11 5

Medical apparel ................................ 15,346 0 0

Men's and boys' suits and sports coats ............... 10,620 0 0

Men's and boys' coats and jackets .................. 6,693 0 0

Men's and boys' trousers ......................... 12,027 0 0

Women's and girls' trousers ....................... 3,451 0 0

Shirts and blouses .............................. 64,668 12 8

Women's and girls' suits, skirts and coats ............ 17,672 5 (

1

)

Women's and girls' dresses ....................... 8,742 12 2

Robes, nightwear, and underwear .................. 5,747 0 0

Hosiery ...................................... 8,172 0 0

Foundation garments ............................ 3,907 622 161

Gloves including gloves for sports .................. 7,500 0 0

Headwear ..................................... 10,089 0 0

Other wearing apparel and accessories .............. 100,440 41 (

1

)

Footwear and parts ............................. 233,682 160 19

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 903,075 863 195

Minerals and metals:

Steel mill products .............................. 526,167 604 502

Copper and related products ...................... 58,521 0 0

Aluminum mill products .......................... 92,752 0 0

Builders' hardware .............................. 21,371 0 0

Other metal products ............................ 1,944,150 1,116 710

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 2,642,961 1,720 1,212

Miscellaneous manufacturers:

Luggage, handbags, and flat goods ................. 8,405 8 5

Jewelry ...................................... 41,493 49 43

Motor vehicle and other furniture ................... 275,718 0 0

Lamps and lighting fixtures ........................ 22,041 0 0

Other miscellaneous manufactured articles ........... 1,252,010 2,949 538

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 1,599,665 3,006 586

Machinery and equipment:

Air conditioning equipment ........................ 265,697 10,878 3,472

Commercial machinery .......................... 39,411 0 0

Household appliances, including heating and 

drying equipment ............................. 53,938 0 0

Centrifuges, filtering and purifying equipment, and 

pumps for liquids ............................. 327,819 11,734 2,850

Semiconductor equipment, robots, and other equipment . . 146,626 2 2

Taps, cocks, valves, and similar devices ............. 239,214 11 2

Electric motors, generators and related equipment ...... 259,864 18,893 3,115

Electrical transformers, static converters, and inductors . . 114,017 346 150

Powered handtools and parts thereof ................ 65,847 0 0

Flashlights and other similar electric lights, light bulbs, 

and fluorescent tubes; arc lights .................. 27,251 0 0

Wiring harnesses for motor vehicles and other insulated 

electrical conduits ............................. 50,886 750 11

Miscellaneous machinery and equipment ............. 1,990,407 65,343 11,473

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 3,580,978 107,957 21,075
Table B-13--Continued

U.S. imports for consumption from the United Kingdom, total and under the production-sharing provisions

(PSP) of HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-41

Transportation equipment:

Aircraft engines and gas turbines ................... 3,472,394 1,628 804

Motors and engines, except internal combustion, 

aircraft, or electric ............................. 81,539 0 0

Internal combustion piston engines, other than 

for aircraft ................................... 430,091 0 0

Construction and mining equipment ................. 746,203 157,112 28,740

Forklift trucks and similar industrial vehicles ........... 350,942 0 0

Ball and rollers bearings .......................... 82,421 66 1

Certain motor-vehicle parts ....................... 380,016 42,771 3,019

Primary cells and batteries, and electric 

storage batteries .............................. 33,074 0 0

Ignition starting, lighting, and other electrical equipment . . 107,749 147 55

Rail locomotive and rolling stock ................... 13,461 0 0

Automobiles, trucks, buses, and bodies and 

chassis of the foregoing ........................ 1,836,460 948,436 18,131

Aircraft, spacecraft, and related equipment, 

except engines ............................... 1,322,475 347 314

Ships, tugs, pleasure boats, and similar vessels ........ 104,070 28,319 3,923

Miscellaneous vehicles and transportationrelated equipment ............................. 18,443 0 0

Motorcycles, mopeds, and parts .................... 37,272 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 9,016,607 1,178,827 54,986

Electronic products:

Office machines ................................ 300,788 0 0

Telephone and telegraph apparatus ................. 197,450 13 13

Optical fibers, optical fiber bundles and cables ......... 13,794 0 0

Microphones, loudspeakers, audio amplifiers, and 

combinations thereof ........................... 76,091 0 0

Tape recorders, tape players, video cassette recorders, 

turntables, and compact disc players .............. 28,201 0 0

Unrecorded magnetic tapes, discs, and other media ..... 31,161 0 0

Records, tapes, compact discs, computer software, 

and other recorded media ....................... 130,175 0 0

Radio navigational aid, radar, and remote 

control apparatus ............................. 45,914 0 0

Radio transmission and reception apparatus, 

and combinations thereof ....................... 119,872 0 0

Television receivers, video monitors, and combinations 

including television receivers ..................... 18,526 0 0

Television picture tubes and other cathode-ray tubes .... 19,941 0 0

Television apparatus (except receivers and monitors), 

including cameras camcorders and cable apparatus ... 42,341 2,178 680

Electric sound and visual signaling apparatus .......... 37,343 0 0

Special-purpose tubes ........................... 22,412 0 0

Electrical and electronic articles, apparatus, and parts 

not elsewhere provided for ...................... 209,824 311 90

Electrical capacitors and resistors .................. 24,756 0 0

Apparatus for making, breaking, protecting, or 

connecting electrical circuits ..................... 344,388 1,712 450

Semiconductor devices .......................... 426,604 264 183

Computer hardware ............................. 1,587,628 192 33

Photographic cameras and equipment ............... 88,125 7 6

Photographic supplies ........................... 160,377 29,393 13,983

Exposed photographic plates, film, and paper .......... 5,417 0 0

Medical goods ................................. 306,511 200 181

Optical goods .................................. 103,280 18 17

Surveying and navigational instruments .............. 196,765 0 0

Balances of a sensitivity of 5 cgs or better ............ 276 0 0

Drawing and mathematical calculating and 

measuring instruments ......................... 10,626 0 0

Watches ..................................... 3,133 3 3

Clocks and timing devices ........................ 7,895 0 0

Measuring, testing, controlling and analyzing 

instruments .................................. 969,552 8,887 894

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 5,529,168 43,179 16,533
Table B-13--Continued

U.S. imports for consumption from the United Kingdom, total and under the production-sharing provisions

(PSP) of HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-42

Special provisions ................................ 2,473,144 12,010 12,000

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Grand total .................................. 34,617,159 1,380,574 131,549

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1Less than $500.

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table B-14

U.S. imports for consumption from Sweden, total and under the production-sharing provisions (PSP) of

HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-43

Agricultural products .............................. 282,482 0 0

Forest products .................................. 243,299 0 0

Chemicals, coal, petroleum, natural gas, and related products:

Fabricated plastic and rubber products ............... 100,918 34 18

Other energy and chemical products ................ 742,328 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 843,245 34 18

Textiles, apparel, and footwear:

Textiles and textile products ....................... 24,263 0 0

Medical apparel ................................ 1,667 0 0

Men's and boys' suits and sports coats ............... 10 0 0

Men's and boys' coats and jackets .................. 160 0 0

Men's and boys' trousers ......................... 183 0 0

Women's and girls' trousers ....................... 271 0 0

Shirts and blouses .............................. 1,004 0 0

Women's and girls' suits, skirts and coats ............ 258 0 0

Women's and girls' dresses ....................... 428 0 0

Robes, nightwear, and underwear .................. 686 0 0

Hosiery ...................................... 394 0 0

Foundation garments ............................ 81 0 0

Gloves including gloves for sports .................. 113 0 0

Headwear ..................................... 6,779 0 0

Other wearing apparel and accessories .............. 3,955 0 0

Footwear and parts ............................. 1,025 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 41,276 0 0

Minerals and metals:

Steel mill products .............................. 282,491 411 341

Copper and related products ...................... 52,164 0 0

Aluminum mill products .......................... 35,888 0 0

Builders' hardware .............................. 13,735 0 0

Other metal products ............................ 363,270 18 14

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 747,547 429 355

Miscellaneous manufacturers:

Luggage, handbags, and flat goods ................. 203 0 0

Jewelry ...................................... 143 0 0

Motor vehicle and other furniture ................... 72,743 0 0

Lamps and lighting fixtures ........................ 4,648 0 0

Other miscellaneous manufactured articles ........... 58,342 2,528 514

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 136,080 2,528 514

Machinery and equipment:

Air conditioning equipment ........................ 31,252 0 0

Commercial machinery .......................... 22,573 0 0

Household appliances, including heating and 

drying equipment ............................. 165,112 0 0

Centrifuges, filtering and purifying equipment, and 

pumps for liquids ............................. 113,056 70 28

Semiconductor equipment, robots, and other equipment . . 58,730 0 0

Taps, cocks, valves, and similar devices ............. 37,841 0 0

Electric motors, generators and related equipment ...... 39,396 0 0

Electrical transformers, static converters, and inductors . . 37,980 0 0

Powered handtools and parts thereof ................ 117,128 0 0

Flashlights and other similar electric lights, light bulbs, 

and fluorescent tubes; arc lights .................. 494 0 0

Wiring harnesses for motor vehicles and other insulated 

electrical conduits ............................. 24,607 0 0

Miscellaneous machinery and equipment ............. 587,043 807 146

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 1,235,212 878 174
Table B-14--Continued

U.S. imports for consumption from Sweden, total and under the production-sharing provisions (PSP) of

HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-44

Transportation equipment:

Aircraft engines and gas turbines ................... 108,267 0 0

Motors and engines, except internal combustion, 

aircraft, or electric ............................. 17,825 0 0

Internal combustion piston engines, other than 

for aircraft ................................... 127,553 0 0

Construction and mining equipment ................. 321,033 27,656 279

Forklift trucks and similar industrial vehicles ........... 27,458 0 0

Ball and rollers bearings .......................... 29,094 0 0

Certain motor-vehicle parts ....................... 182,941 7,549 923

Primary cells and batteries, and electric 

storage batteries .............................. 11,495 0 0

Ignition starting, lighting, and other electrical equipment . . 5,760 0 0

Rail locomotive and rolling stock ................... 29,160 0 0

Automobiles, trucks, buses, and bodies and 

chassis of the foregoing ........................ 2,011,320 1,980,959 20,407

Aircraft, spacecraft, and related equipment, 

except engines ............................... 192,630 0 0

Ships, tugs, pleasure boats, and similar vessels ........ 12,041 0 0

Miscellaneous vehicles and transportationrelated equipment ............................. 10,398 0 0

Motorcycles, mopeds, and parts .................... 2,225 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 3,089,198 2,016,164 21,609

Electronic products:

Office machines ................................ 22,719 0 0

Telephone and telegraph apparatus ................. 61,326 0 0

Optical fibers, optical fiber bundles and cables ......... 453 0 0

Microphones, loudspeakers, audio amplifiers, 

and combinations thereof ....................... 5,136 0 0

Tape recorders, tape players, video cassette recorders, 

turntables, and compact disc players .............. 327 0 0

Unrecorded magnetic tapes, discs, and other media ..... 351 0 0

Records, tapes, compact discs, computer software, 

and other recorded media ....................... 12,808 0 0

Radio navigational aid, radar, and remote 

control apparatus ............................. 6,880 0 0

Radio transmission and reception apparatus, 

and combinations thereof ....................... 190,438 0 0

Television receivers, video monitors, and combinations 

including television receivers ..................... 518 0 0

Television picture tubes and other cathode-ray tubes .... 0 0 0

Television apparatus (except receivers and monitors), 

including cameras camcorders and cable apparatus ... 1,254 0 0

Electric sound and visual signaling apparatus .......... 2,562 0 0

Special-purpose tubes ........................... 26 0 0

Electrical and electronic articles, apparatus, and parts 

not elsewhere provided for ...................... 21,973 0 0

Electrical capacitors and resistors .................. 14,404 0 0

Apparatus for making, breaking, protecting, or 

connecting electrical circuits ..................... 77,701 0 0

Semiconductor devices .......................... 51,749 0 0

Computer hardware ............................. 74,801 0 0

Photographic cameras and equipment ............... 13,601 196 193

Photographic supplies ........................... 2,191 0 0

Exposed photographic plates, film, and paper .......... 106 0 0

Medical goods ................................. 106,344 0 0

Optical goods .................................. 17,325 0 0

Surveying and navigational instruments .............. 16,197 0 0

Balances of a sensitivity of 5 cgs or better ............ 42 0 0

Drawing and mathematical calculating and 

measuring instruments ......................... 416 0 0

Watches ..................................... 148 0 0

Clocks and timing devices ........................ 270 0 0

Measuring, testing, controlling and analyzing 

instruments .................................. 108,989 2 1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ....................................... 811,055 198 194
Table B-14--Continued

U.S. imports for consumption from Sweden, total and under the production-sharing provisions (PSP) of

HTS Chapter 98, by commodity groups, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total Total under U.S.

Commodity group imports HTS PSP content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-45

Special provisions ................................ 391,260 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Grand total .................................. 7,820,654 2,020,230 22,863

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
B-46

Table B-15 

U.S. imports for consumption under HTS heading 9802.00.60, by country and commodity, 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Monitoring group Mexico Canada Japan Germany China All other Total

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Steel mill products .......... 38,505 18,576 0 0 0 2,425 59,506

Other metal products ........ 3,603 13,525 4,394 12,033 10,227 2,739 46,521

Electrical transformers static 

converters and inductors ... 31,913 0 0 0 0 471 32,384

Aircraft engines and gas 

turbines ................ 22,669 25 0 0 36 1,693 24,423

Certain motor-vehicle parts ... 36,832 838 0 0 0 0 37,670

All other .................. 33,886 19,412 29,230 7,315 46 6,411 96,301

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total .................. 167,409 52,376 33,625 19,347 10,310 13,739 296,805

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
B-47

Table B-16 

U.S. imports for consumption under HTS heading 9802.00.90 from Mexico, by commodity, 1997 and 1998

(Thousand dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Monitoring group 1997 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Textiles, apparel, and footwear:

Textiles and textile products ........................................ 116,992 103,745

Medical apparel ................................................. 169,075 173,171

Men's and boys' suits and sports coats ................................ 4,498 4,476

Men's and boys' coats and jackets ................................... 24,523 45,911

Men's and boys' trousers .......................................... 962,211 1,087,358

Women's and girls' trousers ........................................ 805,093 941,445

Shirts and blouses ............................................... 1,092,050 1,327,224

Women's and girls' suits, skirts and coats ............................. 88,189 113,456

Women's and girls' dresses ........................................ 53,866 55,279

Robes, nightwear, and underwear ................................... 198,655 258,990

Hosiery ....................................................... 103,199 112,228

Foundation garments ............................................. 88,948 76,140

Gloves including gloves for sports ................................... 9,479 7,551

Headwear ...................................................... 9,775 7,516

Other wearing apparel and accessories ............................... 118,874 137,689

Footwear and parts .............................................. 0 168

Minerals and metals:

Other metal products ............................................. 0 4

Miscellaneous manufacturers:

Luggage, handbags, and flat goods .................................. 75,210 91,118

Motor vehicle and other furniture .................................... 4,210 3,379

Machinery and equipment:

Household appliances, including heating and drying equipment ............. 0 3

Electrical transformers, static converters, and inductors ................... 5 3

Flashlights and other similar electric lights, light bulbs, and 

fluorescent tubes; arc lights ....................................... 15 0

Wiring harnesses for motor vehicles and other insulated electrical conduits .... 0 122

Miscellaneous machinery and equipment .............................. 50 0

Transportation equipment:

Certain motor-vehicle parts ........................................ 46,606 870

Ignition starting, lighting, and other electrical equipment ................... 0 3

Miscellaneous vehicles and transportation-related equipment ............... 0 7

Electronic products:

Microphones, loudspeakers, audio amplifiers, and combinations thereof ....... 0 19

Electrical capacitors and resistors ................................... 2 0

Apparatus for making, breaking, protecting, or connecting electrical circuits .... 109 0

Medical goods .................................................. 610 0

Surveying and navigational instruments ............................... 6 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ........................................................ 3,972,250 4,547,873

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Note:--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table B-17 

Duty savings from use of the production-sharing provisions (PSP) of HTS Chapter 98, by monitoring group, 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Percent Nominal Effective

Monitoring group Total value U.S. content dutiable rate1rate2 Duty savings

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Thousand dollars ––––––– –––––––––––––– Percent ––––––––––––– Thousand

dollars

See note(s) at end of table.

Agricultural products ................. 3,587 1,159 68 9 7 75

Forest products ..................... 130,676 74,998 43 3 1 2,248

Fabricated plastic and rubber products ... 135,802 79,451 41 4 2 3,231

Other energy and chemical products ..... 139,013 64,162 54 1 1 717

Textiles and textile products ............ 367,665 201,151 45 6 3 12,023

Medical apparel ..................... 210,950 157,867 25 5 1 8,038

Men's and boys' suits and sports coats ... 248,264 127,007 49 22 10 29,213

Men's and boys' coats and jackets ....... 122,847 67,771 45 19 8 14,651

Men's and boys' trousers .............. 2,513,376 1,399,633 44 19 8 280,052

Women's and girls' trousers ............ 2,009,912 1,146,336 43 19 8 225,922

Shirts and blouses ................... 3,422,385 2,368,814 31 23 7 558,407

Women's and girls' suits, skirts 

and coats ........................ 700,002 312,219 55 20 11 65,323

Women's and girls' dresses ............ 261,426 103,299 60 15 9 15,507

Robes, nightwear, and underwear ....... 1,940,921 1,292,569 33 14 4 185,655

Hosiery ........................... 338,752 303,484 10 16 2 47,793

Foundation garments ................. 655,142 445,793 32 18 6 79,479

Gloves including gloves for sports ....... 47,456 31,646 33 18 5 6,195

Headwear ......................... 30,369 19,764 35 6 2 1,157

Other wearing apparel and accessories ... 648,451 405,893 37 16 5 66,698

Footwear and parts .................. 1,598,482 219,325 86 14 11 38,803

Steel mill products ................... 62,724 45,730 27 5 1 2,212

Copper and related products ........... 16,149 7,336 55 2 1 107

Aluminum mill products ............... 22,830 14,961 34 4 2 563

Builders' hardware ................... 189,932 94,606 50 5 2 4,269

Other metal products ................. 435,558 239,058 45 5 2 10,518

Luggage, handbags, and flat goods ...... 173,566 82,036 53 16 8 13,818

Jewelry ........................... 88,822 68,150 23 8 2 5,330

Motor vehicle and other furniture ........ 714,209 115,890 84 1 1 1,323

Lamps and lighting fixtures ............ 134,221 94,831 29 7 2 6,725

Other miscellaneous manufactured 

articles .......................... 315,322 99,858 68 6 4 5,348

Air conditioning equipment ............. 277,829 187,389 33 2 1 3,321

Commercial machinery ............... 49,374 19,849 60 1 1 361

Household appliances, including heating 

and drying equipment ............... 365,603 179,853 51 3 1 4,371

Centrifuges, filtering and purifying 

equipment, and pumps for liquids ...... 128,044 71,063 45 1 1 711

Semiconductor equipment, robots, and 

other equipment ................... 17,295 4,483 74 2 2 75

Taps, cocks, valves, and similar devices . . 606,300 430,570 29 3 1 11,756

Electric motors, generators and related 
Table B-17--Continued 

Duty savings from use of the production-sharing provisions (PSP) of HTS Chapter 98, by monitoring group, 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Percent Nominal Effective

Monitoring group Total value U.S. content dutiable rate1rate2 Duty savings

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Thousand dollars ––––––– –––––––––––––– Percent ––––––––––––– Thousand

dollars

See note(s) at end of table.

equipment ....................... 1,129,397 674,653 40 4 2 25,690

Electrical transformers, static converters, 

and inductors ..................... 817,201 419,334 49 3 1 12,180

Powered handtools and parts thereof ..... 262,299 108,491 59 1 1 647

Flashlights and other similar electric lights,

light bulbs, and fluorescent tubes; 

arc lights ........................ 155,307 93,478 40 3 1 2,582

Wiring harnesses for motor vehicles and 

other insulated electrical conduits ...... 2,998,813 1,667,592 44 5 2 75,975

Miscellaneous machinery and equipment . . 680,620 187,132 73 2 2 3,513

Aircraft engines and gas turbines ........ 59,080 45,364 23 2 1 1,149

Motors and engines, except internal 

combustion, aircraft, or electric ....... 11,162 8,214 26 1 (

3

) 57

Internal combustion piston engines, other 

than for aircraft ................... 170,186 52,546 69 2 1 1,013

Construction and mining equipment ...... 457,781 74,331 84 1 1 613

Forklift trucks and similar industrial 

vehicles ......................... 165 52 68 0 0 0

Ball and rollers bearings .............. 33,186 16,199 51 8 4 1,479

Certain motor-vehicle parts ............ 1,612,101 959,836 40 3 1 24,950

Primary cells and batteries, and electric 

storage batteries .................. 337,599 85,766 75 3 2 2,747

Ignition starting, lighting, and other 

electrical equipment ................ 374,929 214,416 43 2 1 5,077

Rail locomotive and rolling stock ........ 94,401 20,718 78 4 3 961

Automobiles, trucks, buses, and bodies 

and chassis of the foregoing .......... 25,541,636 637,117 98 3 3 24,841

Aircraft, spacecraft, and related equipment, 

except engines .................... 33,567 25,365 24 (

3

) (

3

) 47

Ships, tugs, pleasure boats, and similar 

vessels .......................... 134,627 28,571 79 1 1 426

Miscellaneous vehicles and transportationrelated equipment ................. 156,563 77,846 50 1 (

3

) 491

Motorcycles, mopeds, and parts ........ 286 219 23 1 (

3

) 2

Office machines ..................... 56,468 24,740 56 2 1 505

Telephone and telegraph apparatus ...... 217,712 120,140 45 4 2 4,828

Optical fibers, optical fiber bundles 

and cables ....................... 13,878 9,321 33 4 1 400

Microphones, loudspeakers, audio amplifiers, 

and combinations thereof ............ 276,180 81,955 70 5 3 4,016

Tape recorders, tape players, video cassette 

recorders, turntables, and compact 
Table B-17--Continued 

Duty savings from use of the production-sharing provisions (PSP) of HTS Chapter 98, by monitoring group, 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Percent Nominal Effective

Monitoring group Total value U.S. content dutiable rate1rate2 Duty savings

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Thousand dollars ––––––– –––––––––––––– Percent ––––––––––––– Thousand

dollars

See note(s) at end of table.

disc players ...................... 179,800 29,266 84 2 1 858

Unrecorded magnetic tapes, discs, and 

other media ...................... 31,009 10,422 66 1 (

3

) 44

Records, tapes, compact discs, computer 

software, and other recorded media .... 320 100 69 (

3

) (

3

) (

4

)

Radio navigational aid, radar, and remote 

control apparatus .................. 69,334 23,918 66 3 2 668

Radio transmission and reception apparatus, 

and combinations thereof ............ 1,035,941 137,583 87 2 2 3,090

Television receivers, video monitors, and 

combinations including television 

receivers ........................ 2,372,993 1,153,318 51 5 2 55,876

Television picture tubes and other 

cathode-ray tubes ................. 54,287 17,269 68 2 1 185

Television apparatus (except receivers and 

monitors), including cameras, camcorders 

and cable apparatus ................ 676,772 75,035 89 2 1 1,533

Electric sound and visual signaling 

apparatus ........................ 210,531 45,182 79 2 1 699

Special-purpose tubes ................ 14,785 7,102 52 1 (

3

) 57

Electrical and electronic articles, apparatus, 

and parts not elsewhere provided for ... 131,693 44,892 66 2 2 1,030

Electrical capacitors and resistors ....... 343,075 236,185 31 4 1 10,432

Apparatus for making, breaking, protecting, 

or connecting electrical circuits ........ 2,057,094 1,130,954 45 3 1 32,907

Semiconductor devices ............... 8,408,106 4,534,253 46 (

3

) (

3

) 10

Computer hardware .................. 1,244,094 459,043 63 (

3

) (

3

) 933

Photographic cameras and equipment .... 22,793 6,597 71 (

3

) (

3

) 22

Photographic supplies ................ 76,454 35,897 53 4 2 1,328

Medical goods ...................... 1,045,096 488,151 53 1 1 6,576

Optical goods ...................... 52,319 19,509 63 5 3 1,025

Surveying and navigational instruments ... 50,798 22,086 57 2 1 484

Drawing and mathematical calculating 

and measuring instruments .......... 122,094 6,095 95 3 3 219

Watches .......................... 56,764 7,350 87 7 6 508

Clocks and timing devices ............. 80,545 51,444 36 9 3 4,619

Measuring, testing, controlling and 

analyzing instruments .............. 970,427 447,539 54 2 1 9,090

Special provisions ................... 12,041 12,019 (

3

) 0 0 0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Table B-17--Continued 

Duty savings from use of the production-sharing provisions (PSP) of HTS Chapter 98, by monitoring group, 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Percent Nominal Effective

Monitoring group Total value U.S. content dutiable rate1rate2 Duty savings

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Thousand dollars ––––––– –––––––––––––– Percent ––––––––––––– Thousand

dollars

Total .......................... 74,067,561 25,212,611 66 6 3 2,038,375

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1Trade-weighted average rate of duty applicable to the products imported under HTS 9802.00.80 for each monitoring group. This is the rate that is applied

to the dutiable portion of such imports.

2Trade-weighted average rate of duty after accounting for the duty-free U.S.-origin content of imports under provision 9802.00.80.

3Less than 0.5 percent.

4Less than $500.

Note:--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
Table B-18 

U.S. imports under the production-sharing provisions (PSP) of HTS Chapter 98 for all countries, by

Standard Industrial Classification (SIC) code, 1997 and 1998

(Million dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1997 1998

,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,

SIC code Description Total U.S. content Total U.S. content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-52

013 Field crops, except cash grains ......... (

1

) (

1

) 0 0

016 Vegetables and melons ............... (

1

) (

1

) (

1

) (

1

)

018 Horticultural specialties ............... 1 1 1 (

1

)

021 Livestock, except dairy, poultry and 

animal specialties ................. 0 0 (

1

) (

1

)

027 Animal specialties ................... 0 0 0 0

081 Timber tracts ....................... (

1

) (

1

) 0 0

083 Forestry products, nspf ............... 0 0 0 0

106 Ferroalloy ores, nspf ................. 0 0 0 0

132 Natural gas liquids .................. 0 0 0 0

144 Sand and gravel .................... 0 0 (

1

) (

1

)

149 Nonmetallic minerals, nspf, except fuels . . 0 0 0 0

201 Meat products and meat packing 

products ........................ 0 0 0 0

203 Canned and preserved seafood, fruits, 

vegetables, jams, etc ............... (

1

) (

1

) (

1

) (1)

204 Grain mill products .................. (

1

) (

1

) 0 0

206 Sugar and confectionery products ....... 0 0 (

1

) (

1

)

207 Fats and oils ....................... (

1

) (

1

) (

1

) (

1

)

208 Beverages and flavoring extracts ........ 0 0 0 0

209 Food preparations and related 

products, nspf .................... 4 1 2 (

1

)

212 Cigars, cheroots, and cigarillos ......... 0 0 0 0

221 Broad woven fabrics, cotton ........... (

1

) (

1

) 1 1

222 Broad woven fabrics, manmade fibers 

and silk ......................... (

1

) (

1

) (

1

) (

1

)

223 Broad woven fabrics, wool ............. (

1

) (

1

) (

1

) (

1

)

224 Narrow woven fabrics ................ 9 4 8 3

225 Hosiery and knit fabrics ............... 266 242 340 304

227 Floor coverings ..................... 6 5 1 1

228 Yarn and thread, textile fibers .......... (

1

) (

1

) (

1

) (

1

)

229 Textile goods, nspf .................. 37 21 48 26

231 Suits and coats, men's and boys', except 

raincoats ........................ 266 151 300 159

232 Shirts, nightwear, underwear, trousers, 

and work clothing, men's and boys .... 5,336 3,478 6,056 3,885

233 Blouses, waists, dresses, suits, coats, and 

skirts, women's and misses' new, not 

knit or crocheted .................. 1,783 986 1,922 1,060

234 Nightwear and underwear, women's, girls', 

childrens' and infants'; corsets and 

allied garments ................... 1,340 884 1,428 937

235 Headwear, except rubber or plastic ...... 22 13 21 13

236 Outerwear, nspf, textile fibers .......... 2,456 1,492 2,904 1,725

237 Fur clothing and other articles made of

furskins, nspf ..................... (

1

) (

1

) (

1

) (1)

238 Wearing apparel and accessories, nspf ... 175 84 145 76

239 Fabricated textile articles, nspf ......... 930 692 836 614

241 Logs, pulpwood, utility line poles, 

piling etc ........................ 0 0 0 0

242 Sawmill and planing mill products ....... (

1

) (

1

) 0 0

243 Millwork, veneer, plywood, and structural 

wood products .................... 31 10 19 10

244 Wooden containers .................. (

1

) (

1

) (

1

) (

1

)

245 Wood buildings and mobile homes ...... 1 (

1

) (

1

) (

1

)

249 Miscellaneous wood products .......... 7 3 6 4

251 Household furniture .................. (

1

) (

1

) (

1

) (

1

)

254 Partitions, shelving, lockers, and office 

and store fixtures .................. (

1

) (

1

) (

1

) (1)

259 Venetian blinds and parts, iron, steel or 

aluminum; furniture, nspf ............ 654 103 702 110

262 Paper mill products .................. (

1

) (

1

) (

1

) (

1

)

265 Paperboard containers and boxes ....... (

1

) (

1

) (

1

) (

1

)

267 Converted paper and paperboard products, 

except containers and boxes ......... 15 10 10 6

272 Periodicals, unbound, except as waste ... 0 0 0 0

273 Books and pamphlets ................ (

1

) (

1

) (

1

) (

1

)

274 Miscellaneous publications ............ 0 0 (

1

) (

1

)

275 Commercial printed matter ............ 21 19 16 13
Table B-18--Continued 

U.S. imports under the production-sharing provisions (PSP) of HTS Chapter 98 for all countries, by

Standard Industrial Classification (SIC) code, 1997 and 1998

(Million dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1997 1998

,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,

SIC code Description Total U.S. content Total U.S. content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-53

276 Manifold business forms and interleaved 

carbon sets ...................... 0 0 0 0

277 Greeting cards ..................... 20 15 15 12

278 Blankbooks, loose leaf binders 

and devices ...................... 53 29 68 32

281 Industrial inorganic chemicals .......... 5 3 (

1

) (

1

)

282 Plastics materials and synthetic resins; 

synthetic rubber; synthetic and other 

manmade fibers, except glass ........ (

1

) (

1

) (

1

) (

1

)

283 Drugs ............................ 34 27 35 27

284 Soaps, detergents, and cleaning 

preparations; perfumes, cosmetics, 

and other toilet preparations ......... 86 31 73 24

285 Paints, varnishes, lacquers, and enamels . (

1

) (

1

) 0 0

286 Industrial organic chemicals ........... 3 2 3 2

287 Agricultural chemicals ................ 0 0 (

1

) (

1

)

289 Miscellaneous chemicals .............. 13 5 13 5

291 Petroleum refinery products ............ (

1

) (

1

) 0 0

295 Paving and roofing materials ........... 0 0 0 0

299 Petroleum and coal products, nspf ...... 0 0 (

1

) (

1

)

301 Tires and inner tubes ................. (

1

) (

1

) (

1

) (

1

)

302 Rubber and plastic footwear ........... 731 40 526 33

305 Rubber and plastics hose and belting .... 36 15 30 14

306 Fabricated rubber products, nspf ........ 43 26 48 27

308 Miscellaneous plastics products ........ 111 55 80 48

311 Leather, tanned or finished ............ 0 0 (

1

) (

1

)

313 Prepared parts of footwear, all materials 

other than rubber, elastomer resin, 

metal, and asbestos ................ 77 61 67 54

314 Footwear, except rubber and plastic ..... 1,018 122 995 130

315 Leather gloves, except sport gloves ...... 15 9 13 7

316 Luggage and related items ............ 110 60 123 70

317 Handbags and other personal 

leather goods ..................... 33 16 50 12

319 Leather goods, nspf .................. 1 1 1 1

321 Flat glass ......................... (

1

) (

1

) 0 0

322 Glass containers; pressed and blown 

glass and glassware ............... 2 1 7 4

323 Products of purchased glass, nspf ....... 25 13 27 14

325 Structural clay products ............... 0 0 0 0

326 Pottery and related products ........... 54 10 62 10

327 Concrete, gypsum and plaster products, 

and lime ........................ 0 0 0 0

328 Cut stone and stone products .......... (

1

) (

1

) 0 0

329 Abrasive, asbestos, and miscellaneous 

nonmetallic mineral products ......... 8 3 5 2

331 Blast furnace, steel works, rolling mill, 

and finishing mill products ........... 218 167 74 52

332 Iron and steel products ............... 1 (

1

) 1 (

1

)

333 Smelter and refined nonferrous metal .... 4 3 1 (

1

)

335 Rolled, drawn, and extruded nonferrous 

metal ........................... 746 488 665 420

336 Nonferrous metal castings and forgings ... 2 1 3 1

339 Primary metal products, nspf ........... (

1

) (

1

) 1 (

1

)

341 Cans, used for transport of goods, of iron, 

steel, or aluminum ................. 4 3 3 3

342 Cutlery, hand tools, and hardware, nspf ... 277 168 330 190

343 Heating equipment, except electric and 

warm air; and plumbing fixtures ....... 23 13 24 14

344 Fabricated structural metal products ..... 38 11 28 11

345 Bolts, nuts, screws, rivets, washers and 

similar articles of base metals ........ (

1

) (1) (

1

) (

1

)

346 Metal forgings and stampings .......... (

1

) (

1

) 1 1

348 Ordnance and accessories, except 

vehicles and guided missiles ......... 5 1 7 1

349 Fabricated metal products, nspf ........ 676 463 675 474

351 Engines and turbines, and parts and 
Table B-18--Continued 

U.S. imports under the production-sharing provisions (PSP) of HTS Chapter 98 for all countries, by

Standard Industrial Classification (SIC) code, 1997 and 1998

(Million dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1997 1998

,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,

SIC code Description Total U.S. content Total U.S. content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See note(s) at end of table.

B-54

accessories, nspf .................. 130 65 119 58

352 Farm and garden machinery and equipment, 

and parts and attachments, nspf ...... 52 28 64 40

353 Construction, mining, and materials 

handling machinery ................ 695 172 691 148

354 Metalworking machines and equipment, 

and parts, accessories and 

attachments, nspf ................. 501 133 472 116

355 Special industry machines and equipment, 

nspf, and parts, accessories and 

attachments, nspf ................. 36 6 50 8

356 General industrial machines and equipment, 

nspf, and parts and attachments, nspf . . 422 212 316 177

357 Office, computing, and accounting machines, 

and parts and accessories, nspf ....... 1,594 393 1,290 444

358 Refrigeration and service machinery, and 

parts and attachments, nspf .......... 386 205 192 129

359 Flexible tubing and piping of base metal; 

and machine parts, nspf, 

nonelectric, nspf .................. 27 8 34 20

361 Electric transmission and distribution 

equipment, and parts, nspf .......... 418 242 448 246

362 Electrical industrial apparatus .......... 1,408 801 1,774 993

363 Household appliances, and parts, nspf ... 679 279 496 231

364 Electric lighting and wiring equipment .... 1,230 721 1,083 629

365 Radio and tv receiving sets; phonographs; 

recorders; microphones; loudspeakers; 

audio amplifiers; & other audio equipment 

& accessories .................... 3,560 1,162 3,552 1,328

366 Communication equipment and 

apparatus ....................... 874 269 1,218 271

367 Electronic components and accessories . . 10,425 5,495 10,259 5,490

369 Electrical machinery, apparatus, and 

parts, nspf ....................... 2,774 1,529 3,058 1,508

371 Motor vehicles and motor vehicle 

equipment, and parts, nspf .......... 32,458 3,148 27,028 1,343

372 Aircraft and parts, nspf ............... 228 54 48 33

373 Ship and boat building and repairing ..... 112 24 135 29

374 Railroad equipment .................. 331 108 94 20

375 Motorcycles, motor scooters, motorbikes, 

and cycles, not motorized, nspf, and 

parts, nspf ....................... 101 18 119 25

379 Miscellaneous transportation equipment, 

and parts, nspf .................... 8 1 4 1

381 Aircraft flight, nautical & navigational, 

laboratory & scientific, geophysical, 

surveying & drafting instruments, & 

parts, nspf ....................... 96 36 110 41

382 Instruments for measuring, detecting, 

testing, and/or controlling nonelectric 

quantities, nspf, and parts & 

accessories, nspf .................. 1,200 537 1,037 473

384 Surgical, medical, and dental instruments 

and supplies ..................... 1,140 659 1,089 557

385 Opthalmic focus lenses, unmounted, 

including contact lenses; and spectacles, 

and parts, nspf .................... 3 1 3 1

386 Photographic equipment and supplies .... 128 50 103 43

387 Watches, clocks, clockwork operated 

devices, and parts, nspf ............. 6 2 63 9

391 Jewelry of precious metal; jewelry findings; 

precious and semiprecious stones, not 

set or strung; silverware and 

plated ware ...................... 52 47 75 58

393 Musical instruments, and parts and 

accessories, nspf .................. 40 13 39 12

394 Toys and sporting, athletic, and gymnastic 
Table B-18--Continued 

U.S. imports under the production-sharing provisions (PSP) of HTS Chapter 98 for all countries, by

Standard Industrial Classification (SIC) code, 1997 and 1998

(Million dollars)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1997 1998

,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,

SIC code Description Total U.S. content Total U.S. content

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-55

goods, appliances, apparatus or 

accessories, nspf .................. 139 35 86 24

395 Pens, pencils, and other office and 

stationery supplies, and artists' 

materials ........................ 38 24 43 25

396 Jewelry, nspf; buttons, needles, and 

miscellaneous notions .............. 18 13 16 11

399 Brooms and brushes; linoleum and other 

floor coverings with a textile base; 

matches; candles, tapers and 

similar items ..................... 18 7 28 11

910 Scrap and waste .................... (

1

) (

1

) (

1

) (

1

)

920 Used or second-hand merchandise ...... (

1

) (

1

) (

1

) (

1

)

980 Goods imported from canada and returned 

to Canada without having been advanced 

in value or improved in condition or 

combined with other articles .......... 5 4 12 12

990 Special classification provisions, nspf .... (

1

) (

1

) (

1

) (

1

)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Total ........................... 79,167 26,565 74,068 25,213

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1Less than $500,000.

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
B-56

Table B-19

Average hourly compensation costs for production workers in manufacturing, by selected regions and

countries, 1995-98

Region/country 1995 1996 1997 1998

Change in 1998 

from 1995

Change in 1998

from 1997

 --------------------- U.S. dollars --------------------- ----------Percentage----------

North America:

 United States ...... 17.19 17.70 18.21 18.56 8 2

 Canada ........... 16.10 16.64 16.46 15.69 -3 -5

 Mexico ........... 1.51 1.54 1.78 1.83 21 3

Europe:

 Germany ......... 30.83 30.26 26.90 27.20 -12 1

 Switzerland ........ 29.30 28.34 24.19 24.38 -17 1

 Norway ........... 24.38 25.05 23.72 23.70 -3 (

1

)

 Belgium .......... 26.65 25.89 22.82 23.11 -13 1

 Denmark .......... 24.07 24.11 22.03 22.69 -6 3

 Austria ........... 25.31 24.80 21.91 22.16 -12 1

 Sweden .......... 21.44 24.37 22.23 22.03 3 -1

 Finland ........... 24.14 23.56 21.37 21.57 -11 1

 Netherlands ....... 24.02 23.08 20.61 20.57 -14 (1)

 France ........... 20.01 19.93 17.99 18.28 -9 2

 Italy ............. 16.22 17.75 17.57 17.11 5 -3

 United Kingdom .... 13.67 14.09 15.47 16.43 20 6

 Ireland ........... 13.57 13.85 13.55 13.33 -2 -2

 Spain ............ 12.88 13.51 12.24 12.14 -6 -1

 Greece ........... 9.17 9.59 9.20 8.91 -3 -3

 Portugal .......... 5.37 5.58 5.38 5.48 2 2

Asia:

 Japan ............ 23.82 20.91 19.37 18.05 -24 -7

 Singapore ......... 7.33 8.32 8.24 7.77 6 -6

 Hong Kong2....... 4.82 5.14 5.42 5.47 13 1

 Taiwan ........... 5.92 5.93 5.87 5.24 -11 -11

 Korea ............ 7.29 8.22 7.33 5.03 -31 -31

 Sri Lanka ......... .48 .48 .46 .47 -2 2

 Asian NIEs ........ 6.40 6.91 6.67 5.72 -11 -14

 

1Less than 0.5 percent.

 

2Hong Kong Special Administrative Region of China.

Source: Compiled by the U.S. International Trade Commission from U.S. Department of Labor, Bureau of Labor

Statistics international wage-rate comparison statistics. These data may be obtained at the BLS Web site

(http://stats.bls.gov/news.release/ichcc.t02.htm).
APPENDIX C

U.S.-MEXICO TRADE: STATISTICS OF

THE GOVERNMENT OF MEXICO
C-2

Table C-1

U.S.-Mexico trade in 1998, by HS chapter

HS Description

Mexico's exports to the

 United States: U.S. imports 

from Mexico:

General

Maquiladora PITEX Other Total

 --------Millions of U.S. dollars---------

01 Live animals ................................... 0 0 212 212 208

02 Meat and edible offal ............................. 0 46 52 98 8

03 Fish and seafood ................................ 22 354 202 578 455

04 Dairy produce; eggs; honey; edible animal products ...... 0 5 7 12 10

05 Other products of animal origin ..................... 13 6 2 21 29

06 Live trees & plants; cut flowers & ornamental foliage ..... 0 11 25 36 38

07 Edible vegetables and certain roots and tubers ......... 56 1,265 637 1,958 1,629

08 Edible fruit and nuts; peel of citrus fruit or melons ....... 0 335 326 661 749

09 Coffee, tea, mate and spices ....................... 0 238 290 529 501

10 Cereals ....................................... 0 1 35 36 6

11 Milling products; malt; starches; inulin; wheat gluten ..... 0 2 4 7 4

12 Oil seeds & oleaginous fruits; misc. grains, seeds, & fruits;

industrial or medicinal plants; straw & fodder ........... 0 4 46 50 37

13 Lac; gums; resins & other vegetable saps & extracts ..... 1 8 5 14 14

14 Vegetable plaiting materials & veg. products, nesoi ...... 0 3 24 27 22

15 Animal or vegetable fats, oils, & waxes; edible fats ....... 2 2 43 46 46

16 Edible preparations of meat, fish, or seafood ........... 12 19 26 58 32

17 Sugars and sugar confectionery ..................... 29 87 161 277 156

18 Cocoa and cocoa preparations ...................... 1 10 22 33 35

19 Preparations of cereals, flour, starch, or milk ........... 11 72 58 141 149

20 Preparations of vegetables, fruit, nuts, parts of plants .... 34 64 189 286 269

21 Miscellaneous edible preparations ................... 9 67 68 144 107

22 Beverages, spirits, and vinegar ..................... 1 598 215 815 805

23 Residues, waste of the food industries; animal feed ...... 0 2 9 10 6

24 Tobacco and manufactured tobacco substitutes ......... 0 22 23 45 40

25 Salt; sulfur; earths & stone; plaster, lime, and cement .... 0 6 190 197 159

26 Ores, slag and ash .............................. 0 53 38 92 119

27 Mineral fuels, oils, waxes; bituminous substances ....... 0 2 5,543 5,545 5,309

28 Inorganic chemicals; compounds of precious metals, rareearth metals, or radioactive elements or isotopes ........ 24 98 130 252 223

29 Organic chemicals ............................... 7 192 125 324 359

30 Pharmaceutical products .......................... 124 7 21 152 25

31 Fertilizers ...................................... 0 96 44 140 25

32 Tanning or dyeing extracts; tannins; dyes, pigments, other

coloring matter; paints & varnishes; putty; inks ......... 114 26 29 169 64

33 Essential oils; perfume; cosmetic/ toilet preparations ..... 41 5 94 140 87

34 Soap; lubricating products; waxes; polishing/scouring

products; candles; modeling pastes; dental plaster ....... 9 79 118 206 198

35 Albumoidal substances; starches; glues; enzymes ....... 9 2 11 21 10

36 Explosives; fireworks; matches; combustible prep ....... 8 0 3 11 14

37 Photographic or cinematographic goods .............. 2 197 11 210 160

38 Miscellaneous chemical products .................... 72 128 50 250 160

39 Plastics and articles thereof ........................ 1,152 429 197 1,778 940

40 Rubber and articles thereof ........................ 186 274 61 521 400
C-3

Table C-1--Continued

U.S.-Mexico trade in 1998, by HS chapter

HS Description

Mexico's exports to the

 United States: U.S. imports 

from Mexico:

General

Maquiladora PITEX Other Total

 --------Millions of U.S. dollars---------

41 Raw hides and skins (other than furskins) and leather .... 106 72 12 189 72

42 Leather articles; saddlery; travel goods; handbags ....... 203 45 31 280 223

43 Furskins and artificial fur; manufactures thereof ......... 4 0 0 5 4

44 Wood and articles of wood; wood charcoal ............ 189 107 194 490 407

45 Cork and articles of cork .......................... 1 0 1 2 2

46 Manufactures of straw; basketware and wickerwork ...... 0 0 1 2 2

47 Wood pulp; waste and scrap paper and paperboard ...... 23 0 3 27 6

48 Paper & paperboard; articles of pulp, paper, paperbd ..... 363 120 184 667 433

49 Printed products, including books, newspapers, plans .... 168 14 27 209 150

50 Silk, including yarns and woven fabrics thereof ......... 0 0 0 0 0

51 Wool & animal hair, yarns & woven fabrics thereof ....... 0 4 20 24 20

52 Cotton, including yarns and woven fabrics thereof ....... 43 158 126 327 241

53 Other vegetable textile fibers; yarns and fabrics of such

vegetable fibers and paper ......................... 1 0 1 2 3

54 Manmade filaments, including yarns & woven fabrics ..... 26 60 94 180 136

55 Manmade staple fibers, incl. yarns & woven fabrics ...... 20 78 98 197 103

56 Wadding, felt and nonwovens; special yarns; twine,

cordage, ropes and cables and articles thereof .......... 16 54 16 86 93

57 Carpets and other textile floor coverings ............... 14 23 3 41 15

58 Special woven fabrics; tufted textile fabrics; lace; tapestries;

trimmings; embroidery ............................ 95 14 11 120 31

59 Impregnated, coated, covered or laminated textile fabrics;

textile articles suitable for industrial use ............... 19 9 5 33 39

60 Knitted or crocheted fabrics ........................ 0 52 8 60 50

61 Knitted or crocheted apparel ....................... 1,523 560 160 2,242 2,819

62 Woven apparel ................................. 2,867 907 94 3,867 3,884

63 Other textile articles; needlecraft; used clothing ......... 598 109 73 779 525

64 Footwear and parts .............................. 156 125 94 374 347

65 Headgear and parts .............................. 35 6 6 47 50

66 Umbrellas, walking sticks, whips, and riding crops ....... 4 0 0 4 1

67 Articles of feathers and down; artificial flowers; articles of

human hair .................................... 1 2 1 4 4

68 Articles of stone, plaster, cement, asbestos, or mica ..... 71 39 100 210 202

69 Ceramic products ............................... 65 213 149 427 375

70 Glass and glassware ............................. 215 435 79 729 606

71 Natural or cultured pearls; precious or semiprecious stones;

precious-metal and imitation jewelry; coin ............. 162 407 264 833 578

72 Iron and steel ................................... 143 924 75 1,142 1,056

73 Articles of iron or steel ............................ 562 1,018 232 1,812 1,216

74 Copper and articles thereof ........................ 77 103 560 741 660

75 Nickel and articles thereof ......................... 1 0 0 2 1

76 Aluminum and articles thereof ...................... 226 84 93 403 320

78 Lead and articles thereof .......................... 0 31 5 36 35

79 Zinc and articles therof ........................... 14 38 52 103 126

80 Tin and articles thereof ........................... 0 0 1 1 3
C-4

Table C-1--Continued

U.S.-Mexico trade in 1998, by HS chapter

HS Description

Mexico's exports to the

 United States: U.S. imports 

from Mexico:

General

Maquiladora PITEX Other Total

 --------Millions of U.S. dollars---------

81 Other articles of base metals; cermets & articles of ...... 1 10 3 13 10

82 Tools, implements, cutlery, spoons and forks, of base

metal; parts thereof of base metal ................... 157 75 18 250 134

83 Miscellaneous articles of base metal ................. 503 89 55 647 485

84 Machinery and mechanical appliances, including nuclear

reactors, boilers, computer hardware, & parts .......... 5,945 6,181 678 12,804 11,629

85 Electrical machinery & equipment; sound recorders &

reproducers; television equip.; parts & accessories ...... 27,007 3,354 292 30,653 25,783

86 Railway locomotives, rolling stock, track fixtures and parts;

traffic signaling equipment ......................... 146 162 7 315 315

87 Other vehicles, incl. automobiles, trucks, buses, parts .... 2,728 14,762 154 17,645 16,735

88 Aircraft, spacecraft, and parts thereof ................ 805 57 50 912 49

89 Ships, boats and floating structures .................. 1 25 2 29 2

90 Optical, photographic, cinematographic, measuring,

checking, precision, or medical instruments, & parts ..... 2,229 805 110 3,144 3,325

91 Clocks and watches and parts thereof ................ 29 5 2 36 82

92 Musical instruments; parts and accessories thereof ...... 71 0 1 73 56

93 Arms and ammunition; parts and accessories thereof .... 5 2 0 8 12

94 Furniture; bedding, mattresses, & cushions; lamps &

lighting fittings; illuminated signs; prefab buildings ....... 1,463 537 222 2,222 2,698

95 Toys, games & sports equip.; parts & accessories ....... 826 82 24 933 845

96 Miscellaneous manufactured articles ................. 232 77 23 332 200

97 Works of art, collectors’ pieces and antiques ........... 0 0 7 7 24

 Total ....................................... 50,161 32,035 4,523 86,720 77,225

 Other (see note) .............................. 0 1 50 51 3,876

 Grand total ............................... 52,100 36,851 13,920 102,872 94,708

Note.-- “Other” exports from Mexico consist primarily of goods imported into Mexico for repair and re-exported, shipping containers, and

other temporary imports, such as samples and models, that are re-exported. The leading types of goods imported into the United States

from Mexico under HTS chapters 98 and 99 that are not otherwise classified in HS chapters 1-97 (shown here as “Other”) are low value

imports, including the value of repairs made to vehicles, vessels, and aircraft; shipping containers; personal exemptions; importations of

U.S. and foreign governments and international organizations; and importations of religious, educational, scientific, and other institutions.

Source: Mexico’s exports to the United States were compiled from “World Trade Atlas: Mexico Edition, Annual Summary 1993-1998,”

which used data supplied by INEGI, the statistical agency of the Government of Mexico. U.S. imports from Mexico were compiled from

official statistics of the U.S. Department of Commerce.
C-5

Table C-2

Mexico’s exports to the United States1 under Temporary Import Programs (Maquiladora and PITEX), by

leading product sectors, 1996-98

Product sectors (HS range)

Exports under Temporary

 Import Programs (TIP)

Total

exports to

 the U.S.

 in 1998

TIP share of

total exports

to the U.S.

1996 1997 1998 in 1998

––––––––––––– Million dollars –––––––––––––– Percentage

Motor Vehicle2.......................... 11,194 12,077 13,615 13,641 100

Certain motor-vehicle parts2................ 10,154 11,552 11,953 12,185 98

Apparel and other textile articles (61-63,65) .... 3,626 5,538 6,602 6,935 95

Color television receivers and parts (8528.12,

8529.90, 8540.11, 8540.91) ................ 4,637 5,260 6,317 6,325 100

Radio transmission and reception apparatus

(8525, 8527, and 8529 (pt)) ................ 3,170 3,767 3,929 3,954 99

Computers and components (8471) .......... 2,039 3,097 3,770 3,885 97

Electrical circuit apparatus (8534, 8535, 8536,

8537, 8538) ............................ 2,240 2,473 2,786 2,821 99

Measuring, testing, and controlling instruments

(9024, 9025, 9027, 9028, 9029, 9030, 9031,

9032, 9033 (pt)) ......................... 452 799 1,080 1,134 95

Major household appliances (8418, 8422.11,

8422.19, 8450, 8451) ..................... 298 306 366 413 89

All other ............................... 23,830 31,519 38,534 51,579 75

 Total ............................ 61,640 76,388 88,952 102,872 86

 

1

 Official Mexican statistics on Mexico’s exports to the United States in 1998 were valued 11 percent larger than official

U.S. statistics on U.S. imports from Mexico. Much of the difference in the reported trade levels can be attributed to

maquiladora shipments to U.S. distribution centers that are later re-exported to global markets. Significant discrepancies

between U.S. and Mexican data on an individual product basis can be caused by differences in classification.

 

2

 The products covered in the “certain motor-vehicle parts” sector include body stampings, engines and parts, bumpers,

brakes and parts, gear boxes, axles, wheels, shock absorbers, radiators, exhaust systems, clutches, steering wheels, wiring

harnesses, car seats and parts, and miscellaneous parts and accessories; these products include HS numbers 

8407, 8408, 8409, 8544.30, 8708, 9401.20. This definition is consistent with the definition of “certain motor-vehicle parts”

used elsewhere in the body of this report. See “Motor Vehicles and Parts” in chapter 3 of this report. In the tables in app. B,

however, the category “certain motor-vehicle parts” does not include engines, wiring harnesses, or seats and parts.

 

3

 Covers HS numbers 8701.20, 8702, 8703.22 to 8703.90, 8704.21 to 8704.90, 8706.00.03, 8706.00.05, 

8706.00.15.20, 8707.10.00.20, 8707.90.50.20, 8707.90.50.40, and 8707.90.50.60.

Source: Compiled from “World Trade Atlas: Mexico Edition, Annual Summary 1993 to 1998,” which used data provided by

INEGI, the statistical agency of the Government of Mexico.
C-6

Table C-3

Total imports into Mexico under Temporary Import Programs (Maquiladora and PITEX), by leading sources,

1995-98

Percentage of

Sources 1995 1996 1997 1998 total in 1998

 -------------------------- Millions dollars ----------------------------------

United States ............ 34,127 41,891 49,764 56,867 82

Japan ................. 2,510 2,507 2,357 2,288 3

Germany ............... 1,100 1,227 1,516 1,921 3

Korea ................. 430 742 1,151 1,229 2

Taiwan ................ 330 431 495 793 1

Canada ................ 365 582 738 663 1

China .................. 244 289 462 620 1

Malaysia ............... 274 328 404 538 1

France ................. 248 250 269 373 1

Singapore .............. 183 230 237 287 (

1

)

All Other ............... 1,600 1,936 3,120 3,437 4

 Total ............... 41,411 50,413 60,513 69,016 100

 

1

 Less than 1 percent

Source: Compiled from “World Trade Atlas: Mexico Edition, Annual Summary, 1993 to 1998,” which used data provided by INEGI, the

statistical agency of the Government of Mexico.