INDUSTRY

TRADE AND

TECHNOLOGY

REVIEW

INDUSTRY

TRADE AND

TECHNOLOGY

REVIEW

OFFICE OF INDUSTRIES

December/January 2005

United States

International Trade Commission

USITC Publication 3762
 PREFACE

The Industry Trade and Technology Review (ITTR) is a periodic staff publication of the Office of 

Industries, U.S. International Trade Commission. The opinions and conclusions contained in this report are 

those of the authors and are not the views of the Commission as a whole or of any individual Commissioner. 

The report provides analysis of important issues and insights regarding the global position of U.S. industries, 

the technological competitiveness of the United States, and how trade and policy developments affect U.S. 

business. 

The information and analysis in this series are for the purpose of this report only. Nothing in this 

report should be construed to indicate how the Commission would find in an investigation conducted under 

any statutory authority. 

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Director of Industries 

U. S. International Trade Commission 

500 E Street, SW 

Washington, DC 20436 

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Industry Trade and Technology Review is posted on the Commission=s Internet site at 

www.usitc.gov (Publications). Requests for copies of the ITTR, or to be added to the mailing list, should be 

addressed to the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, 

Washington, DC 20436, or by fax: 202-205-2104. 

Review Staff

Larry Brookhart 

Karl Tsuji 

assisted by

Monica Reed 

Sharon Greenfield 

Contributing Authors

Jack Greenblatt 

Ralph Watkins 

Audry Tafoya 

Robert A. Rogowsky

Director of Operations

Karen Laney-Cummings 

Director of Industries
DECEMBER/JANUARY 2005 

Industry Trade and Technology Review Index of Articles

i 

Listing of Published Articles

(March 2000 B January 2005) 

March 2000

Machine vision: Vital technology for manufacturing industries 

Agriculture in the WTO: The Seattle Ministerial and beyond 

July 2000

Express services: Issues for negotiation in the World Trade Organization 

Production-sharing update: Developments in 1999 

Apparel market: New U.S. legislation places CBERA countries on a more equal competitive 

basis with Mexico 

October 2000

WTO agricultural trade negotiations: An update 

Steel sector explores E-Commerce although wary of quick transition 

Mexico=s emergence as a global automotive production center drives trade and investment 

January 2001

U.S. metal mining: Recent trends and uncertainty discourage domestic exploration and investment 

Factors affecting the competitive position of the Indian software industry 

Manufacturing strategies of the North American major household appliance industry 

March 2001

Apparel: Andean countries seek parity with Caribbean Basin countries to remain competitive in 

the U.S. market 

Chemical trade by the Central European countries: Difficulties of sector transition 

Commercialization of hybrid automobiles: Prospective demand for light metals 

July 2001

Trends in China=s steel consumption 

Production-sharing update: Developments in 2000 

October 2001

E-commerce and nonferrous metals: Despite potential, adoption has been slow 

Foreign direct investment in infrastructure services in OECD countries 

December 2001

Evidence of trade, income, and employment effects of NAFTA 

U.S. primary aluminum: Power costs and market conditions could cause long-term restructuring 

March 2002

Dyeing and finishing of apparel fabrics 

WTO agricultural trade negotiations: A second update 

Aluminum metal matrix composites gaining greater market acceptance 
DECEMBER/JANUARY 2005 

Index of Articles Industry Trade and Technology Review

ii 

Listing of Published ArticlesCContinued

July 2002

U.S. telecommunication services: Industry and trade outlook 

Mexico versus China: Factors affecting export and investment competition 

Production-sharing update: Developments in 2001 

October 2002

International trade in commercial equipment leasing services 

International telecommunication markets: Accounting rate reform 

December 2002

Major contraction of the domestic refined copper industry 

Power generation and transmission equipment in the Latin American market 

April 2003

WTO agricultural trade negotiations: Third update recapping the Doha Ministerial 

Catalysts: An innovative industry responds to technological and competitive challenges 

August 2003 

Global copyright protection and the challenge of digital piracy 

The measurement and effects of nontariff barriers to trade in basic telecommunication services 

November 2003 

Global trends in the information technology outsourcing services market

Production-sharing update: Developments in 2002 

March/April 2004 

International steel capacity and subsidy negotiations

Solid and hazardous waste services markets in Asia and the Pacific

June/July 2004 

Logistic services: Industry overview and issues for negotiation 

 Powder metallurgy and advanced aluminum sheet processing: Applications of advanced technology in 

 the automotive industry 

September/October 2004 

 U.S. tobacco quota buyout: Issues and analysis 

 WTO agricultural trade negotiations: A fourth update 

December/January 2005 

 Radioisotopes: Medical breakthroughs but concerns about availability, foreign dependence, and 

 national security 

 Production-sharing update: Developments in 2003 

#
DECEMBER/JANUARY 2005 

Industry Trade and Technology Review Contents

iii 

CONTENTS 

Page

Radioisotopes: Medical Breakthroughs but Concerns 

 About Availability, Foreign Dependence, and 

 National Security.................................................................................................... 1 

Applications and markets ............................................................................................................ 2 

The U.S. industry......................................................................................................................... 4 

Outlook ...................................................................................................................................... 5 

Production-Sharing Update: Developments in 2003 .......... 9 

Assembly trends in Mexico......................................................................................................... 11 

 Motor vehicles and parts....................................................................................................... 14 

 Machinery and electronic products....................................................................................... 15 

 Apparel assembly in Mexico, the Caribbean Basin, Sub-Saharan Africa, and 

 the Andean Countries ................................................................................................... 16 

 Highlights of developments in 2003..................................................................................... 20 

 Apparel assembly in Mexico ................................................................................................ 20

 Apparel assembly in the Caribbean Basin ............................................................................ 26 

 Apparel assembly in Sub-Saharan Africa ............................................................................. 28 

 Apparel assembly in the Andean countries........................................................................... 28 

2005 Textile import quota eliminations ...................................................................................... 30

Appendix A: Key performance indicators of selected 

industries and regions.............................................................................................. A-1 

Steel:

 Figure A-1 Integrated and minimill producers’ operating income increases for third 

 consecutive quarter in 2004............................................................................. A-2 

 Table A-1 Finished imports increase by 20 percent during third quarter 2004 compared 

 with second quarter 2004, and by more than 89 percent compared with 

 third quarter 2003 reflecting strong domestic demand .................................... A-2 

Table A-2 Steel service centers: Third quarter 2004 shipments increase by 13 percent 

compared with third quarter 2003.................................................................... A-3 

Figure A-2 Steel mill products, all grades: Capacity utilization continues upward trend 

 for fourth consecutive quarter.......................................................................... A-3 

Automobiles:

Table A-3 U.S. sales of new passenger vehicles (cars and light trucks), domestic 

and imported, and share of U.S. market accounted for by sales 

of total imports and Japanese imports, by specified periods, 

January 2003-September 2004 ........................................................................ A-4 
 DECEMBER/JANUARY 2005 

Contents Industry Trade and Technology Review

iv 

 CONTENTSCContinued

Page

Appendix A: Key performance indicators of selected 

industries and regionsCContinued

Automobiles--Continued

Figure A-3 U.S. sales of new passenger vehicles (cars and light trucks) declined steeply 

in the third quarter 2004 .................................................................................. A-4 

Unwrought aluminum: 

Figure A-4 Robust prices for primary aluminum in third quarter 2004 reflect supply 

 concerns about partial capacity cutbacks and prolonged labor negotiations 

at several North American smelters................................................................. A-5 

Table A-4 Drawdown of London Metal Exchange (LME) inventories and increased prices 

for primary aluminum ingots in third quarter 2003 reflect cutback of 

primary production and sustained robust worldwide demand over the past 

12 months ........................................................................................................ A-5 

 

Flat glass:

Figure A-5 Japanese monthly average imports from U.S. and World increased during first 

10 months of 2004 ........................................................................................... A-6 

Services:

Figure A-6 Balance on U.S. service trade accounts, by select quarters, 2003-04................... A-7 

Figure A-7 Surpluses on cross-border U.S. services transactions with selected 

partners, by select quarters, 2002-04 ............................................................... A-7 

North American trade:

North American trade highlights................................................................................................. A-8 

Figure A-8 U.S. imports for consumption of television receivers and video monitors from 

 China and Mexico, Jan.-Sept. 2003 and Jan.-Sept. 2004................................. A-8 

Table A-5 North American trade, 1999-2003, January-September 2003, and January- 

 September 2004 ............................................................................................... A-9 

APPENDIX B: Statistical tables (B-1 to B-7) for trade 

 under Mexico’s production-sharing provisions 

 (temporary import programs)................................................................. B-1 

 Tables B-1 to B-7 ................................................................................................. B-2-B-16 

#
OMB No.: 3117--0188

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December/January 2005

Industry Trade and Technology Review Radioisotopes

1

Radioisotopes: Medical Breakthroughs But

Concerns About Availability, Foreign

Dependence, and National Security1

Jack Greenblatt*

jack.greenblatt@usitc.gov

(202) 205-3353

In the United States, the U.S. Department of Energy (USDOE), private firms, major research

universities, and medical facilities produce most of the radioisotopes used in medical,

research, and industrial applications. However, the USDOE stopped producing many

specific isotopes. Given the provisions of existing law, the increasing demand on its facilities

for multiple applications, and the more stringent cost recovery requirements, industry

sources have expressed concern that the USDOE isotope production and distribution

enterprise does not adequately meet all U.S. medical needs and is not sufficiently

competitive. The industry sees the United States becoming dependent on foreign sources for

many radioisotopes, including technetium-99m, the most widely used isotope in medicine.

In addition, the already highly regulated U.S. radioisotopes industry faces new challenges

with stricter security requirements following the events of September 11, 2001. However,

buoyed by new growth opportunities and the significant potential for medical breakthroughs,

both private industry and the USDOE, in association with nuclear medicine specialists, are

addressing these challenges and opportunities. This article examines the applications and

market-size potentials, challenges to the U.S. industry, and industry efforts to overcome

barriers to expanded use of medical and industrial isotopes in the future.

The isotope industry consists of establishments producing or enriching elements to create various

isotopes for commercial, research, and medical applications. Isotopes may be stable or radioactive, depending

on whether their nuclei are stable or whether the nuclei decay over time to form other isotopes, with the

release of energy in the form of radiation (box 1). Because radioisotopes decay, they may need to be provided

to the end-user as rapidly as possible depending on the duration of their half-lives. Although both stable and

radioactive isotopes are used directly by the end-user, most stable isotopes are produced as precursors or

target materials for the production of radioisotopes. Therefore unless otherwise noted, this article will

primarily address radioisotopes. An isotope may be chemically linked with other atoms to form either a

simple or complex molecule referred to as a radiochemical and, if the radiochemical is approved for internal

medical use, the substance is referred to as a radiopharmaceutical. A list of commonly used radioisotopes,

half-lives, production methods, along with their applications is in box 2.

* The views expressed in this article are those of the author. They are not the views of the USITC as whole

or of any individual Commissioner. The author is an international trade analyst in the Energy, Chemicals, and

Textile Division, Office of Industries. 
December/January 2005

Radioisotopes Industry Trade and Technology Review

2

Box 1

Background on isotopes

Matter is composed of atoms with nuclei composed of protons and neutrons. It is the number of protons that

determines whether the atom is carbon, gold, oxygen, or one of the other 115 currently known elements. Atoms of the

same element, however, may have different numbers of neutrons in their nuclei. The various forms of an element that

differ only in the number of neutrons are referred to as “isotopes” of the element. In most cases, a single element may

have many different isotopes. 

As an example, all atoms of carbon contain six protons in their nuclei. Whereas most also have six neutrons, others

have five, seven, or eight. An isotope is identified by element name and its atomic weight (i.e., the sum of the protons

and neutrons in its atoms). Thus, carbon atoms with six neutrons in their nuclei have an atomic weight of 6+6=12 and

are referred to as carbon-12. Carbon atoms with five, seven, or eight neutrons in their nuclei are referred to as carbon11, carbon-13, and carbon-14, respectively. 

Many radioisotopes are produced artificially from the bombardment of a stable isotope either with neutrons in a nuclear

reactor or with protons or other charged particles in an accelerator.1

 The path of the charged particle in an accelerator

may be linear, as in a linear accelerator, or spiral, as in a cyclotron. Alternatively, some radioisotopes are recovered

as a byproduct from the fission (decay) of uranium and other radioisotopes.

Although all radioisotopes suitable for medical and industrial applications disintegrate over time, there is an enormous

range in how rapidly such decay occurs; some radioisotopes disintegrate so slowly that they are practically considered

“stable” whereas others will effectively vanish in a manner of minutes. To measure the relative stability/instability of

radioisotopes, scientists employ the concept of “half-life,” the time for one-half of the isotope initially present to decay

to other nuclear forms. The half-life is a constant for each radioisotope.

_____________________

 1

 Useful radioisotopes, e.g., cesium-137 and strontium-90 are also produced as fission products or through further

decay in a reactor, e.g., plutonium.

Source: Institute of Medicine, Isotopes for Medicine and the Life Sciences (Washington, DC: The National Academies

Press, 1995).

Applications and Markets

Industrial applications for radioisotopes include basic research, nucleonic instrumentation, radioactive

tracers, security instrumentation systems, smoke detectors, physical measurement gauges, radiation

sterilization, food irradiation, and nondestructive testing. However, it is the medical sector--a field designated

by the medical community as nuclear medicine--where radioisotopes may find their most commercially

important applications; their greatest prospects for growth; and through research and development (R&D),

their most significant impact on society. 

The largest medical use of radioisotopes is as diagnostic aids, particularly as imaging agents. One

out of three hospitalized patients in the United States undergoes a nuclear medicine procedure annually2

 and

such procedures are valued at an estimated $7-10 billion per year.3

 More than 36,000 diagnostic medical

procedures using radioactive isotopes are performed daily in the United States and close to 100 million

laboratory tests using radioactive isotopes are performed each year.4

 Increasingly, radioisotopes are being

applied as a diagnostic tool outside of hospitals, as in facilities such as physicians’ offices. Much of the

growth in the application of radioisotopes in imaging is attributed to a relatively new process known as

Positron Emission Tomography (PET) Imaging. PET scans are experiencing high growth in the diagnosis of

cancers and other ailments because of the high quality and specificity of these images. In addition to imaging,

radioisotopes are taken internally as therapeutic agents, particularly in oncology (cancer treatment), because

the radiation emitted by the radioisotopes destroys cancerous tumors. Sealed radioactive sources strategically

implanted directly at or near a tumor to destroy cancerous cells that have not yet been removed—a technique

known as brachytherapy—also is finding expanded use, especially for treatment of prostrate and breast
December/January 2005

Industry Trade and Technology Review Radioisotopes

3

cancers. Although less widely used than in diagnostic applications, reliance on radioisotopes for oncology

therapy, whether injected, ingested or surgically implanted, is experiencing a higher growth rate largely

because of the ability of radioisotopes to supplement other therapies in the treatment of cancers.5

Box 2

Characteristics of selected radioisotopes

Radioisotope Half-life Production method Uses

Americium-241 432 years Nuclear reactor decay product of

plutonium-241

Smoke detectors; oil well logging, heart

imaging, osteoporosis detection

Cesium-137 30 years Uranium-235 fission product For the treatment of cancers, to measure

and control liquid flows in petroleum

pipelines and to ensure correct fill level

for packages

Cobalt-60 5.3 years Reactor product from stable cobalt-59 as

target

Sterilization of medical supplies, food

irradiation, cancer therapy

Iodine-131 8 days Reactor product Diagnosis and treatment of thyroid

diseases, especially thyroid cancer

Fluorine-18 110

minutes

Accelerator product from stable,

enriched oxygen-18 as the target

Most widely used PET radioisotope for

detection of cancers, neurological, and

heart diseases

Iridium-192 74 days Reactor product from stable iridium-191

as target

Testing of pipeline welds, boilers, and

aircraft parts

Molybdenum-99 66 hours Produced by fission of uranium-235 in a

nuclear reactor

The daughter product, technetium-99m

(6-hour half-life), is the most widely used

isotope for diagnostic medical

applications including oncology and

cardiology

Palladium-103 17 days Accelerator product, from rhodium-103

as stable target

Prostrate cancer implant therapy

Strontium-89 50.5 days Reactor product from stable strontium-88

as target

Bone cancer pain alleviation, treatment

of prostrate cancer, and multiple

myeloma

Thallium-201 73 hours Accelerator product from stable isotope

thallium-203 as target

Diagnosis of coronary heart disease and

heart muscle death, location of

lymphomas

Xenon-133 5.2 days Reactor product Pulmonary (lung) ventilation and blood

flow studies

Source: Nuclear Energy Institute, Fact Sheet: Beneficial Uses of Radiation, Oct. 2003; Nuclear Energy Agency,

Organization for Economic Cooperation and Development, Beneficial Uses and Production of Isotopes: 2000

Update, pp. 13-28; and other sources.
December/January 2005

Radioisotopes Industry Trade and Technology Review

4

According to reports issued by a market researcher,6 U.S. sales of diagnostic radiopharmaceuticals

amounted to $1.14 billion in 2002 (15 percent above the previous year amount) stemming from robust growth

of PET imaging, introduction of new products, and rising demand for cardiology procedures. Annual growth

is reported to reach 20 percent by 2004-05, resulting in a market valued at $2.94 billion by 2008. By

comparison, according to this market researcher, U.S. sales of therapeutic radiopharmaceutical products (not

including brachytherapy) amounted to $57 million in 2002 but are anticipated to grow more rapidly than

diagnostic radiopharmaceuticals to reach $3.8 billion by 2008. Projected U.S. sales of brachytherapy

products, which amounted to $321 million in 2002, are anticipated to reach about $1.38 billion by 2008.7

 

The U.S. Industry

The USDOE is a significant producer of radioisotopes, largely as a result of the U.S. Government’s

historic role in developing nuclear weapons, nuclear power, and other nuclear-related applications. Although

private firms and major research universities also are active in radioisotope production, the USDOE has the

most powerful nuclear reactors and accelerators and, therefore, the capability of producing radioisotopes

beyond that of the industry and private-sector facilities. Despite this advantage, many of these USDOE

facilities are enlisted for multiple applications and isotope production reportedly may often be considered

lower priority, especially for smaller research customers, if production facilities are required for other higherpriority projects.8

 In addition, the USDOE cost recovery requirements for the production of some isotopes

are considered to be prohibitively expensive for some researchers.9

To promote efficient production and marketing of isotopes, the Isotope Production and Distribution

Program (IPDP) was established in 1989 within the Office of Nuclear Energy as the principal vehicle for

providing isotopes for commercial and research purposes. A condition of its creation, however, required that

operations are to be financially self-supporting. Generally even now, the IPDP is not authorized to act as an

independent business enterprise and is also subject to other restrictions. For example, to clarify the provisions

of the Atomic Energy Act (1954), the Atomic Energy Commission issued a policy statement in 1965, that

established criteria and procedures for U.S. Government withdrawal from and reentry into commercial

radioisotope markets. Thus, the USDOE would cease production if there is demonstrable private capability

to produce and distribute the subject isotope and there is evidence of effective competition.

Private firms involved in isotope, radiochemical, and radiopharmaceutical production range from

small startup firms to multinational pharmaceutical companies. Three multinational pharmaceutical

companies are responsible for much of the radiopharmaceutical production in the United States: Amersham

plc (now part of General Electric Co.), Tyco Healthcare/Mallinckrodt, and Bristol-Myers Squibb Co.

According to an industry source,10 the amount of R&D funding expended by these private firms has been

limited because radiopharmaceuticals are rarely as profitable as other drugs and are unlikely to generate the

revenue stream required to justify large-scale corporate expenditures. Moreover, in the United States, private

isotope producers do not operate their own nuclear reactors but instead produce many radioisotopes and

radiopharmaceuticals from in-house cyclotrons or purchase starting materials acquired from nuclear reactors

operated either abroad or domestically by the USDOE and a few major research universities.

The United States has become increasingly dependent on foreign sources for many important

isotopes, especially those produced in nuclear reactors. This change has occurred, in part, because the

USDOE has stopped producing many isotopes, including the most commercially widespread isotope used

today, molybdenum-99, a radioisotope produced in reactors from the fission of uranium-235.

Molybdenum-99 naturally decays into technetium-99m, the isotope which accounts for over 80 percent of

in-vivo nuclear medicine procedures.11 The United States currently imports its entire supply of molybdenum99/technetium-99m, primarily from Canada and the European Union. Industry sources claim that the USDOE
December/January 2005

Industry Trade and Technology Review Radioisotopes

5

has relinquished molybdenum-99 production to foreign producers largely because of tighter and more costly

U.S. regulations affecting nuclear waste disposal, remediation requirements, and nuclear fuel reprocessing

which have substantially reduced its competitiveness vis-a-vis foreign producers. In addition, there is

reportedly a greater willingness by foreign governments to assist isotope producers operating in their

countries in various ways, including the provision of technical and investment incentives.

The United States is dependent on foreign sources for many other isotopes as well. For example, the

United States was formerly a world-class producer of heavy stable isotopes using electromagnetic separators

but, with the exception of supply of some specific isotopes from existing USDOE inventories, Russia is now

the leading supplier to the United States of these and other isotopes, reportedly because of sales at prices

below USDOE production costs.12 Similar to the United States, Russia has developed a viable stable isotope

and radioisotope industry, largely because of its nuclear programs. Other significant foreign suppliers of

isotopes to the United States include Argentina, Australia, China, Israel, and South Africa.

The U.S. private radioisotope industry must also contend with significant regulatory costs. The

isotope industry is one of the most regulated in the United States as many Federal, State, and local agencies

exercise jurisdiction over isotopes.13 The September 11, 2001, attacks further exacerbated the U.S. regulatory

impact as new concerns arose that terrorists can prepare conventional explosives laced with radioisotopes,

popularly referred to as “dirty bombs.” According to industry sources, such concerns have resulted in

skyrocketing security-related costs for isotope producers; uncertainty as to the reliability of shipments; and

in some cases, delay and even loss of time-sensitive radioisotopes as some airlines refused to accept

radioisotope deliveries. Industry sources also have expressed concern that an untoward incident could compel

the United States to suspend all radioisotope imports, thereby depriving U.S. consumers, particularly U.S.

patients requiring radioisotopes as a life-or-death treatment, of essential radioisotopes.

Outlook

To meet these and other challenges, the private isotope industry has adopted a number of measures

to reduce costs and to increase efficiency, including an increased effort to secure the cooperation of

researchers at universities, national laboratories, and the smaller research-oriented startup companies.

Moreover, licensing and joint ventures are proliferating among the various U.S. and foreign isotope

producers. The radiopharmaceutical industry itself has also undergone consolidation, largely through mergers

and acquisitions, in part with an eye toward increasing the extent of vertical and horizontal integration of the

major producers to help achieve greater efficiency. 

Regarding the USDOE, a number of task forces have proposed ideas as to how the agency can spur

scientific breakthroughs and become more competitive. One suggestion is that the USDOE increasingly focus

on developing isotopes intended for research purposes while cutting back production of commercial isotopes

for which there are other adequate suppliers. Additionally, it was suggested that funding be provided to

upgrade existing USDOE facilities as well as to build accelerators and reactors that would be dedicated

exclusively to the production of isotopes.14

Despite the many challenges that the radioisotope industry faces, new developments, particularly in

the medical and research areas, ensure that this field will continue to grow. Radioisotopes are, for example,

finding increased and new uses in cardiology, primarily in diagnosis, where their level of application is now

comparable to that of isotopes in oncology. They are also being applied in fields where their use was once

very limited. For example, new techniques are being developed in the area of immunology combining

radioisotopes with monoclonal antibodies to develop radioisotopes that have unprecedented specificity in the

diagnosis and treatment of cancers. In 2002, a milestone was reached in immunotherapy when the U.S. Food
December/January 2005

Radioisotopes Industry Trade and Technology Review

6

and Drug Administration (FDA) approved Zevalin®, a radiopharmaceutical, for the treatment of nonHodgkins lymphoma.15 PET radioisotopes, which have traditionally been applied primarily in cancer

treatment are now increasingly expanding to other fields such as cardiology and neurology. For example, the

FDA recently approved the use of PET scans in the diagnosis of Alzheimer’s disease. Buoyed by new growth

opportunities and the significant potential for medical breakthroughs, both private industry and the USDOE,

in association with nuclear medicine specialists, are continuing to address these challenges and

opportunities.#
December/January 2005

Industry Trade and Technology Review Radioisotopes

7

1. For added detail, look for the upcoming industry and trade summary on isotopes (www.usitc.gov).

2. Institute of Medicine, Isotopes for Medicine and the Life Sciences (Washington, DC: The National

Academies Press, 1995), p. 1. 

3. Ibid.

4. Ibid.

5. About 180,000 patients were treated with radiation therapy in 1990. Ibid.

6. Marvin Burns, The U.S. Market for Diagnostic Radiopharmaceuticals, found at

http://biotechsystems.com/reports/150/default.asp, retrieved on Jan. 24, 2005. 

7. Marvin Burns, The U.S. Market for Brachytherapy Products, found at

http://biotechsystems.com/reports/170/default.asp, retrieved on Jan. 24, 2005. 

8. Institute of Medicine, Isotopes for Medicine and the Life Sciences, pp. 1-2 and 12-13; and Nuclear Energy

Research Advisory Committee (NERAC), Subcommittee for Isotope Research and Production Planning,

Final Report, Apr. 2000, p. 9.

9. Institute of Medicine, Isotopes for Medicine and the Life Sciences, pp. 12-13; and USDOE, Isotope

Programs, Report and Financial Statements for Fiscal Year 2003, p. 3.

10. Radiopharmaceutical industry source, telephone interview with USITC staff, Sept. 1, 2004.

11. Institute of Medicine, Isotopes for Medicine and the Life Sciences, p. 15.

12. Statement of William H. Young, Assistant Secretary for Nuclear Energy before the U.S. House of

Representatives, Government Operations Committee, Subcommittee on Environment, Energy and Natural

Resources, Aug. 12, 1992. According to a radioisotope industry source, in a telephone interview with

USITC staff, Jan. 31, 2005, this situation is still applicable today.

13. For example, on the Federal level, the U.S. Nuclear Regulatory Commission (NRC) regulates the

possession, use, and handling of radioactive materials; the U.S. Department of Transportation regulates the

movement of radioactive materials; the U.S. Environmental Protection Agency regulates air effluents from

a nuclear pharmacy; the U.S. Occupational Safety and Health Administration regulates workers safety, and

the U.S. Food and Drug Administration (FDA) regulates radiopharmaceuticals injected internally. In

addition to being “drugs,” radiopharmaceuticals are also radioactive; therefore they are under the

jurisdiction of both the FDA and NRC.

14. Institute of Medicine, Isotopes for Medicine and Life Sciences, p. 77; and NERAC, Final Report, pp. 22-26.

15. FDA, FDA Talk Paper, Feb. 19, 2002, found at

http://www.fda.gov/bbs/topics/ANSWERS/2002/ANS01138.html, retrieved on Jan 21, 2005.

ENDNOTES

December/January 2005

Industry Trade and Technology Review Integration of Manufacturing

9

Production-Sharing Update: Developments

in 2003

Audry Tafoya*

Ralph Watkins*

ralph.watkins@usitc.gov

(202) 205-3492

Investments in production-sharing operations are part of global efforts to reduce manufacturing

costs. Such investments have contributed to crossborder integration of manufacturing in North

America and the Caribbean Basin. For example, most manufactured goods imported by the United

States from partners in the region incorporate U.S. and other foreign inputs. Trends in imports of

manufactured goods from Mexico (the leading low-labor-cost, production-sharing partner) are

closely linked to trends in manufacturing in the United States.1

 The industrial sectors in the United

States that are most likely to use assembly plants in Mexico had mixed results in terms of trends in

U.S. manufacturers’ shipments in 2003 compared with 2002. Declining shipments of power

transmission equipment, electrical equipment, motor vehicle parts, and apparel offset growth in

shipments of medical and measuring instruments, computers, and semiconductors. As a result, U.S.

imports from assembly plants in Mexico declined by 1.7 percent in 2003. At the same time liberalized

access to the U.S. market through the Caribbean Basin Trade Partnership Act (CBTPA) and the

Andean Trade Promotion and Drug Eradication Act (ATPDEA) helped apparel assembly plants in

the Caribbean Basin region and Colombia increase production despite intensified competition from

China. This article highlights the continued role in 2003 of regional manufacturing integration in

meeting the challenges to North American industrial competitiveness.

Production sharing includes a spectrum of manufacturing options that range from use of foreign

inputs in domestic operations, to global sourcing of inputs in assembly plants, to use of U.S. components in

foreign factories. Production sharing can be crossborder rationalization of manufacturing within a firm or

outsourcing of certain aspects of production to nonrelated foreign suppliers. This article examines imports

from assembly operations that make use of U.S.- and third-country components and materials. In the apparel

sector, it shows the trasition toward higher value-added manufacturing in the Caribbean Basin and Andean

regions as companies there make use of liberalized U.S. trade preferences to position themselves to compete

more effectively in markets that eliminated quotas on apparel and other textile articles on January 1, 2005.

This article sets a base-line for comparison with imports of apparel in the postquota era. 

* The views expressed in this article are those of the authors. They are not the views of the U.S. International Trade

Commission (USITC) as a whole or of any individual Commissioner. The two authors are an International Trade Analyst

and the Program Manager for Foreign Assembly, respectively, in the Minerals, Metals, Machinery, and Miscellaneous

Manufactures Division of the Office of Industries.
December/January 2005

Integration of Manufacturing Industry Trade and Technology Review

10

Production sharing is no longer strictly limited to manufacturing; the same practice also takes place

in service industries such as insurance, banking, healthcare, and information technology. Although production

sharing in services does not involve the physical assembly and shipment of components or finished goods,

decisions to spread operations over various locations are often made based on a similar set of factors. The cost

of labor is often key in decisions to physically redistribute manufacturing processes or to contract services

locally overseas, but other factors weigh in as well, such as a reliable transportation and telecommunications

infrastructure, local tax policies, ease of repatriating profits, and enforceability of contracts.2

As discussed in previous updates,3 major North American production-sharing trade flows in

manufactured goods continue to include the export of machinery, components, and materials (e.g., yarns and

uncut fabric) from the United States and the import of assembled motor vehicles and auto parts from Canada

and Mexico; apparel from the Caribbean Basin and Mexico; and televisions, computer hardware, and

telecommunications equipment from Mexico. In addition, a number of U.S. semiconductor producers conduct

back-end testing, assembly, and packaging operations in East Asia, using chips fabricated in the United

States. Although many vehicles imported into the United States from Asia and Europe contain specialized

U.S.-made parts, such parts remain a small share of the total value of these vehicles.

In many instances, manufacturing in Mexico and the Caribbean Basin continues to complement rather

than compete with U.S. production. For many products, the alternative to assembly in nearby lower-labor-cost

countries is loss of market share to imports from Asia or a shift of manufacturing operations from North

America to Asia.

Manufacturers in Western Europe also use production sharing (“outward processing”) to reduce their

costs, establishing assembly plants in Central European countries such as the Czech Republic, Hungary,

Poland, and Slovenia. Similarly, companies in Japan, Korea, and Taiwan take advantage of duty waiver or

refund (drawback) provisions and lower labor costs at special economic zones in China and at export

processing zones in Indonesia, Malaysia, the Philippines, and Thailand to rationalize the production of laborintensive articles. 

Special provisions have been created in Chapter 98 of the Harmonized Tariff Schedule of the United

States (HTS) to implement preferential tariff treatment afforded to qualifying apparel imported from

beneficiary countries under the Africa Growth and Opportunity Act (AGOA), CBTPA, and ATPDEA. These

provisions are found under HTS headings 9819, 9820, and 9821, respectively. These new production-sharing

provisions were established to encourage investment and job creation in the textile and apparel sectors in

these regions and to encourage the use of U.S.-origin fabrics and yarns in the production of apparel and other

textile articles destined for the U.S. market.4

 Trade data collected under these HTS provisions permit analysis

of the extent to which apparel imported under these programs contains fabric or yarn of U.S. origin. 

Statistics on U.S. production-sharing trade for products other than textile and apparel articles

imported from Mexico, the Caribbean Basin, the Andean region, and sub-Saharan Africa (imports under HTS

subheading 9802.00.80.68) were not collected during November 2002 to April 2003, because of a

communications breakdown between various U.S. Government agencies. However, official Mexican statistics

remain a reliable tool to measure production-sharing trade between the United States and Mexico of products

other than textile and apparel articles, and are presented in appendix B.5

 An assessment of developments in

2003 based on data in appendix B is presented below, followed by an examination of U.S. imports of apparel

from Mexico, the Caribbean Basin, the Andean region, and sub-Saharan Africa.
December/January 2005

Industry Trade and Technology Review Integration of Manufacturing

11

Assembly Trends in Mexico

! Mexico's imports of components and other materials from the United States for use in

maquiladora and PITEX assembly plants6

 were $58.8 billion in 2003, a 3.5-percent

($2.1 billion) decline from 2002 (appendix B, table B-4), and represented 56 percent of

Mexico's total imports from the United States in 2003 (table B-2).7

! Mexico’s exports to the United States from maquiladora and PITEX assembly plants fell by

1.8 percent ($2.1 billion) in 2003, to $118 billion (table B-7), and represented 81 percent of

Mexico's total exports to the United States in 2003 (table B-5). The United States was the

destination for nearly all exports from maquiladara and PITEX plants, accounting for

93 percent of such exports in 2003, followed by Canada with a 2-percent share (table B-7).

! Higher energy prices slowed the recovery of manufacturing in North America in 20038 and

contributed to reduced production-sharing trade between the United States and Mexico. At

the same time that energy input costs were increasing, intensified competition from products

made in Asia restrained manufacturers from appreciably raising prices. To maintain profit

margins in 2003, some U.S. producers found ways to improve domestic manufacturing

productivity,9

 reducing their incentive to shift assembly to Mexico.

The diminished production-sharing trade with Mexico also is reflected in overall trade based on U.S.

statistics:

! Although U.S. manufacturers’ shipments recovered by 2.7 percent in 2003, much of the

growth took place in sectors that do not use assembly plants in Mexico (such as the basic

chemicals, crude petroleum, and coal sectors).10

! U.S. exports to Mexico decreased by 3 percent ($2.9 billion) in 2003, to $83.1 billion,

whereas U.S. imports from Mexico expanded by 4 percent ($3.1 billion) to $137.2 billion

principally because of higher prices for petroleum. (See “North American Trade Highlights”

in appendix A for developments in U.S.-Mexico trade through September 2004.) 

! Although during 2000-03, imports from the United States by maquiladora and PITEX plants

fell by $20.1 billion (26 percent), the United States continued to be the dominant supplier

of components, materials, and machinery to these assembly plants, accounting for 69 percent

of such imports in 2003. Imports from China by Mexico’s production-sharing operations

jumped from $1.1 billion to $5.6 billion during this period to become the second-leading

supplier with a 7-percent share (table B-4). The largest increases in imports from the United

States occurred in parts of computers ($1 billion), telecommunications equipment

($0.2 billion), and televisions ($0.2 billion).

! The ratio of Mexico’s imports from the United States by maquiladora and PITEX companies

to Mexico’s exports to the United States by these companies decreased during 2000-03 as

U.S.-origin content was displaced by components imported from China and by increased

value-added in Mexico (see figure 1).
December/January 2005

Integration of Manufacturing Industry Trade and Technology Review

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! The leading products exported from maquiladora and PITEX assembly plants to the

United States were motor vehicles and parts (26 percent of the total), computers and

components (8 percent), apparel (6 percent), color televisions (6 percent),

telecommunications equipment (5 percent), and electrical circuit apparatus (4 percent)

(table B-1). The following tabulation shows that the sectors with the leading decreases in

assembly plant exports to the United States in 2003 more than offset the sectors with the

leading increases in assembly plant exports:

Sector

Increase

(million dollars) Sector

Decrease

(million dollars)

Computers and components 961 Telecommunications equipment 1,067

Certain motor vehicle parts 398 Motor vehicles 1,032

Prepared vegetables 227 Toys, games, and sporting goods 674

Optical, medical, measuring, and

photographic instruments 151 Color television receivers 555

Articles of plastics 17 Apparel 373

 Source: “World Trade Atlas: Mexico Edition, December 2003.”

0

20

40

60

80

100

120

140

1999 2000 2001 2002 2003

Billions of dollars

Mexico's exports to the United States under TIPs Mexico's imports from the United States under TIPs

Mexico's imports from all other sources under TIPs Mexico's imports from China under TIPs

Source: Compiled from "World Trade Atlas: Mexico Edition, December 2003," which used data provided 

by INEGI, the statistical agency of the Government of Mexico.

Figure 1

Trade Under Mexico's Temporary Import Programs (TIPs): Exports to the United States 

and imports from the United States, China and all other sources, 1999-2003
December/January 2005

Industry Trade and Technology Review Integration of Manufacturing

13

! North American companies under pressure to reduce costs to remain competitive in the

U.S. market reportedly have to carefully evaluate the Mexican option. Products with a

relatively high labor content, long production runs, few style changes, and long lead

times are the most susceptible to relocation (or loss of market share) to lower-labor-cost

countries in Asia. Examples include certain electronic components and assemblies,

telephone equipment, apparel, video games, and small appliances and motors.11

! Products more likely to be assembled in Mexico than in Asia are those with a high ratio

of weight to value (relatively high transportation costs), high degree of customization, or

with customers that practice just-in-time inventory control. Assembly in Mexico also is a

reported advantage for products that are at the startup phase of the product cycle, are

quality intensive, and/or are where protection of intellectual property rights is important.

Examples include motor vehicles and parts; large-screen televisions; medical goods;

process control instruments; household appliances; and larger-sized motors and

generators.12

! Employment in Mexico’s maquiladora industry fared better in 2003 (remaining steady

from year-to-year) compared with other manufacturing employment in Mexico, including

PITEX firms (which fell by 4.0 percent, year-to-year13). Since August 2003, however,

growth in maquiladora industry employment has continued uninterrupted each month

(through June 2004, the lastest month available). Nearly every industry in the

maquiladora sector experienced employment growth during the period except textiles,

apparel, leather goods and shoes, and toys and games.14 This growth has tracked

increased manufacturing activity in the United States. Employment in the maquiladora

industry (not including PITEX operations) returned to 1.1 million as of June 2004, still

shy of its peak of 1.3 million in October 2000.

! The ratio of Mexico’s exports to the United States from maquiladora and PITEX

companies to U.S. manufacturers’ shipments remained fairly stable during 1999-2003, at

about 3 percent, despite the decline in shipments during 2000-02. By contrast, the ratio of

U.S. imports from China to U.S. manufacturers’ shipments nearly doubled from

2.0 percent to 3.8 percent (see figure 2).

! Prospects for renewed growth in production-sharing trade reportedly have been buoyed

by four reforms made effective in October 2003. First, the Economy Ministry reversed a

maquiladora decree that had been announced in May 2003 that increased the industry’s

administrative burdens. A second decree, by the Finance Ministry, enabled maquiladoras

to take a first-year, 100-percent tax write-off on new fixed assets. The Mexican Congress

eliminated the payroll tax and revised the safe harbor rule, which lowered the tax from

6 percent to 3 percent and excluded inventory from coverage by the tax.15
December/January 2005

Integration of Manufacturing Industry Trade and Technology Review

14

Motor Vehicles and Parts

! All motor vehicle assembly plants in Mexico are registered under either PITEX or the

Maquiladora Program.16 Mexico’s imports of components by PITEX and maquiladora

plants classified in HS chapters 87 (transportation equipment) fell by $543 million

(9 percent) to $5.6 billion in 2003 (table B-2).17 Although Mexico’s exports of motor

vehicles to the United States from these production-sharing facilities fell by $1.0 billion

(6 percent) to $17.7 billion in 2003 (table B-1), such exports to the U.S. market of certain

motor vehicle parts grew by $398 million (3 percent) to $13.2 billion. Engines and sewn

fabric and leather covers for motor vehicle seats accounted for much of this growth.

Motor vehicles (not including independent parts production) reportedly accounted for

16 percent of Mexico’s manufacturing output in 2003.18

! Vehicle demand in both the United States and Mexico has shifted away from the models

produced in Mexico, leading to a decline in Mexico’s exports to the United States.

Overall, production of cars and light trucks in Mexico fell by 13 percent in quantity in

2003, whereas U.S. production of such vehicles slipped by just 1.6 percent.19 With the

North American market continuing to trend away from passenger automobiles and toward

light trucks and sport utility vehicles in 2003, passenger automobiles made up just

37 percent of total U.S. vehicle production, but 49 percent of Mexican production.

0.0

1.0

2.0

3.0

4.0

5.0

1999 2000 2001 2002 2003

Percent

0.0

1.0

2.0

3.0

4.0

5.0

Trillions of dollars

Exports to the U.S. from Mexican assembly plants U.S. imports from China U.S. manufacturers shipments

Source: Data on U.S. manufacturers' shipments and U.S. imports w ere compiled from official statistics of the U.S. Deparment of Commerce; and 

data on Mexico's exports to the United States w ere compiled from "World Trade Atlas: Mexico Edition, December 2003," w hich used data provided 

by INEGI, the statistical agency of the Government of Mexico.

Figure 2

U.S. manufacturers shipments 1999-2003: Ratio of Mexico's exports to the United States under the Maquiladora and 

PITEX Programs, and ratio of U.S imports from China, to U.S. manufacturers shipments; and value of U.S. 

manufacturers shipments
December/January 2005

Industry Trade and Technology Review Integration of Manufacturing

15

Machinery and Electronic Products

! Mexico’s imports of machinery and electronic products20 from the United States in 2003

for use by production-sharing operations (Maquiladora and PITEX) fell by $1.6 billion

(6 percent) in 2003 to $24.6 billion (table B-2).21 Exports to the United States from these

production-sharing operations fell by $296 million (0.5 percent) to $60.1 billion, and yet

accounted for nearly all (96 percent) of Mexican exports of machinery and electronic

products to the United States (table B-5).

! The sharpest decrease in Mexico’s exports to the United States in this sector was in the

category of radio transmission and reception apparatus and the North American

production fell due largely to increased imports of cell phones and other communications

equipment from China. The $1.07 billion drop in Mexico’s exports in this category was

nearly offset by growth in Mexico’s exports of computers and components, which rose

by $961 million (11.6 percent) to $9.3 billion (table B-1). U.S. manufacturers’ shipments

of computers and related equipment rose by $11.9 billion (14.6 percent) in 2003 to

$93.4 billion.22 This reflects the linkage between manufacturing in the United States and

the demand for assembly services in Mexico.

! Although a number of companies in the machinery and electronic products sector shifted

production from Mexico to China in 2003, more companies in the sector expanded

production-sharing operations in Mexico or shifted assembly from the United States to

Mexico.23

• Leading examples of companies shifting at least some production from Mexico to

China were Singapore-based Flextronics, Microsoft (whose assembly of its

X-box video game console was transferred from Guadalajara), Japan-based TDK

(which closed electronics plants in Ciudad Juarez and Chihuahua City), and

Applica (which will scale back production for Black & Decker consumer

electronics in Queretaro). 

• Examples of companies establishing new facilities in Mexico include Black &

Decker (power tools in Reynosa), Frisa Wayman Gordon (aerospace

subassemblies in Monterrey), Hitachi (plasma televisions in Tijuana), JVC (highdefinition television in Tijuana), Kaufman Engineering (wiring harnesses for

heating, ventilation, and air-conditioning equipment in Saltillo), LG Electronics

(LDC display panels for flat-screen televisions in Reynosa, Maytag

(subassemblies for appliances in Reynosa), Samsung Electronics (refrigerators

and air conditioners in Queretaro), Sanyo (photovoltaic modules in Monterrey),

Sharp (LCD flat-screen televisions in Tijuana), and Whirlpool (appliances and

components in Reynosa). 

• Examples of companies shifting assembly from the United States to Mexico

include Black & Decker (air compressors in Reynosa), General Electric Industrial

Systems (electrical transformers in Monterrey), Kemet Electronics (capacitors in

Victoria and Matamoros), France-based Labinal (wiring harnesses for aircraft in

Chihuahua City), Littefuse (midget fuses in Piedras Negras), Maytag

(refrigerators in Reynosa), Square D (electrical switches in Monterrey), and Tyco

International (medical devices in Empalme, Sonora). 
December/January 2005

Integration of Manufacturing Industry Trade and Technology Review

16

Apparel Assembly in Mexico, the Caribbean Basin, 

Sub-Saharan Africa, and the Andean Countries

U.S. apparel imports under production-sharing arrangements totaled an estimated $14.7 billion in

2003, accounting for nearly one-quarter of all U.S. apparel imports that year. Mexico and the countries of

the Caribbean Basin region accounted for an estimated 95 percent of all U.S. production-sharing trade in

the apparel sector, whereby U.S.-made fabric is used in foreign apparel sewing operations. Colombia

accounted for another 1 percent. Although special tariff provisions permit apparel sewn from U.S. fabric

to be imported free of duty from other Andean countries and from certain sub-Saharan Africa countries,

almost all apparel imported from such countries is made from regional or third-country fabric. An

estimated three-quarters of the apparel imported from Mexico and the Caribbean Basin region are made

from U.S.-origin fabric or fabric knit or woven in the region from U.S.-origin yarn. See box 1 for a

summary of changes in duty-free access to the U.S. market for apparel imports during 1999-2002.

Box 1

Summary of changes in duty-free access of the U.S. market for apparel imports during 1999-

2002

Duty-free access to the U.S. market for apparel from preferred supplying countries has increased sharply

over the past decade. When importing apparel into the United States, suppliers throughout the world have been

able to claim duty-free treatment for the value of U.S.-cut fabric and other components used in their sewing

operations, such as zippers and other fasteners, under HTS provision 9802.00.80 (formerly Tariff Schedules of the

United States item 807.00).

Under the North American Free Trade Agreement (NAFTA), U.S. tariffs on apparel meeting the

agreement’s rules of origin were eliminated in five annual stages. By January 1, 1999, NAFTA allowed virtually all

types of apparel made in Mexico from North American fabric using regionally spun yarn to enter the United States

free of duty.

Anticipating an impending loss of market share for apparel plants in the Caribbean Basin region as U.S.

retailers shifted their some of their sourcing to Mexico, governments and producers in the region began lobbying

the U.S. Congress for legislation providing the Caribbean Basin region with “NAFTA” parity even as NAFTA was

still being negotiated. Countries in the region finally receiving treatment that fell short of that goal through the

Caribbean Basin Trade Partnershp Act (CBTPA), which entered into force on October 1, 2000. Unlike NAFTA, the

CBTPA denies duty-free treatment for apparel made from regionally woven fabric or from regionally knit fabric

made from regional yarn.

The Africa Growth and Opportunity Act (AGOA), which also entered into force on October 1, 2004, allows

the duty-free entry of apparel from eligible countries even if the apparel is made from third-country fabric.

Effective November 1, 2002, the Andean Trade Promotion and Drug Eradication Act (ATPDEA) permitted

apparel from the Andean region to enter the United States free of duty, provided the apparel is made from U.S. or

regional fabric from U.S. or regional yarn.

Together, imports from Caribbean Basin and Andean countries and Mexico accounted for

28 percent of total U.S. imports of apparel in 2003, compared with 14 percent for China (table 1).

Increased imports from the Caribbean Basin and Andean countries and decreased imports from Mexico

resulted in imports from these three Western Hemisphere sources falling by a net of $94 million

(0.5 percent) in 2003. By contrast, apparel imports from China rose by $1.6 billion (22.6 percent).

Competition with imports from China and other Asian sources likely stifled growth in imports of apparel

from Western Hemisphere sources.
December/January 2005

Industry Trade and Technology Review Integration of Manufacturing

17

Table 1

U.S. imports of apparel from leading sources, 1999-2003 and share of total in 2003

Source 1999 2000 2001 2002 2003

Share of total

in 2003

 ––––––––––––––– Million dollars –––––––––––– Percent

Caribbean Basin (CBTPA-

 eligible . . . . . . . . . . . . . . . . . . 8,818 9,616 9,524 9,508 9,653 15.3

China . . . . . . . . . . . . . . . . . . . . . 5,570 6,192 6,416 7,070 8,667 13.8

Mexico . . . . . . . . . . . . . . . . . . . . 7,738 8,617 8,026 7,638 7,098 11.2

Sub-Saharan Africa (AGOA-

 eligible) . . . . . . . . . . . . . . . . . . 567 729 939 1,090 1,506 2.3

Andean region (ATPDEA)-

 eligible . . . . . . . . . . . . . . . . . . 708 831 754 751 1,052 1.6

Other countries . . . . . . . . . . . . . . 28,766 33,107 32,813 32,570 34,852 55.4

Total . . . . . . . . . . . . . . . 52,367 59,092 58,472 58,627 62,828 100

Note.—Because of rounding, figures in this table may not add up to the totals shown.

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

Duty-free access to the U.S. market under the CBTPA continued to be a principal factor in the

pattern of Caribbean Basin countries’ trade with the United States in 2003. Apparel companies requiring

items with high labor content and long production runs with few style changes are shifting assembly from

Mexico to Central America and China. Concern among retailers and importers about transportation costs,

just-in-time delivery, and flexible manufacturing to facilitate customization and quick response time

enabled Caribbean Basin countries to maintain sales volumes in 2003 despite a loss of market share to

Asia. These concerns also enabled Mexico to remain the second-largest, single-country supplier to the

U.S. market. 

U.S. imports of apparel rose by 7 percent in 2003 to $62.8 billion (see table 1). Nearly onequarter of that total ($15.3 billion) entered free of duty under NAFTA, CBTPA, AGOA, and ATPDEA.

Much of the apparel imported duty-free into the United States is made from U.S. yarn or U.S. fabric. The

assembly of these apparel items is the second-largest U.S. production-sharing sector, exceeded only by

the fully integrated North American automobile industry.

Apparel production-sharing relationships have evolved significantly from simple sewing facilities

to more vertically integrated operations. Like the North American automobile industry, the U.S. apparel

sector has rationalized production to maximize efficiency of its operations. Apparel assembly requires a

lengthy production chain, beginning with the spinning of yarn or thread, followed by the weaving or

knitting of fabric, finishing processes for the fabric, and cutting or knitting-to-shape of such fabric into

components, all before assembly can begin. Table 2 indicates the value-added processes that are

permitted, without losing duty-free access to the U.S. market, under NAFTA, AGOA (HTS heading

9819), CBTPA (heading 9820), and ATPDEA (heading 9821). By expanding preferential treatment under

the Caribbean Basin Economic Recovery Act (CBERA) and the Andean Trade Preferences Act (ATPA)

to include apparel sewn in the Caribbean Basin and Andean regions from fabrics and yarns made in the

United States, the CBTPA and ATPDEA have encouraged increased exports by the U.S. textiles industry.
18

Table 2Duty-free treatment for apparel imported under trade preferences programs

Stage of value-added/ apparel made from:

HTS Classification for stage ofvalue added

NAFTAMexico1 CBTPA2 ATPDEA3 AGOA I4 

 Receives duty-free treatment? 

U.S. fabric, U.S. yarn; cut in U.S.;any value added in U.S. only.

!9802.00.80.44!9802.00.90 (Mexico) Yes Yes Yes Yes 

U.S. fabric, U.S. yarn;fabric is cut and finished in U.S.;strict limits on further value added in region.

!9802.00.90 (NAFTA-Mexico)!9819.11.03 (AGOA)!9820.11.03 (CBTPA)!9821.11.01 (ATPDEA) Yes Yes Yes Yes 

U.S. fabric, U.S. yarn;5 fabric is finished in

U.S.; and cut regionallyAny value-added in U.S. only.

!NAFTA!9819.11.06 (AGOA)!9820.11.06 (CBTPA)!9820.11.18 (CBTPA)!9821.11.01 (ATPDEA) Yes Yes Yes Yes 

U.S. fabric, U.S. yarn; fabric is finished inU.S. and cut both regionally and in U.S.; any

value added in U.S. only.

!NAFTA!9819.11.30 (AGOA)!9820.11.24 (CBTPA)!9821.11.01 (ATPDEA) Yes Yes Yes No 

U.S. fabric, regional yarn; fabric is finishedand cut in U.S.; any value added in U.S. only.

!NAFTA!9821.11.01 (ATPDEA) Yes No Yes N/A6 

Regionally-knit fabric, U.S. yarn; finished andcut regionally.

!NAFTA!9819.11.09 (AGOA)7!9820.11.09 (CBTPA)7!9820.11.12 (CBTPA)!9821.11.25 (ATPDEA) Yes Yes Yes No 

Regionally-woven fabric, U.S. yarn;finished and cut regionally.

!NAFTA!9819.11.09 (AGOA)7!9821.11.25 (ATPDEA) Yes No Yes No 

Regional fabric, regional yarn; finished andcut regionally.

!NAFTA!9819.11.09 (AGOA)7!9821.11.25 (ATPDEA) Yes No Yes No 

Third-country fabric (third-country yarn)Regionally cut 

!NAFTA!9819.11.12 (AGOA) (LDDC)8!9819.11.21 (AGOA) (TPL)9!9819.11.24 (AGOA) (Short

Supply)10

!9820.11.24 (CBTPA) (TPL)9!9820.11.27 (CBTPA) (Short

Supply)10

!9821.11.07 (ATPDEA) (TPL)9!9821.11.10 (ATPDEA) (Short

Supply)10 Yes Yes Yes No 
19

Table 2--ContinuedDuty-free treatment for apparel imported under trade preferences programs

Stage of value-added apparel made from:

HTS Classification for stage ofvalue added

NAFTAMexico1 CBTPA2 ATPDEA3 AGOA I4 

Receives duty-free treatment? 

Handloomed, handmade, or folklore items ofregional origin

!NAFTA!9819.11.27 (AGOA)!9820.11.30 (CBTPA)!9821.11.16 (ATPDEA) Yes Yes Yes Yes 

Regional fabric or components of chief valueof llama, alpaca or vicuna. !9821.11.04 (ATPDEA) N/A N/A Yes N/A 

1 This column applies to imports of apparel from Mexico under North American Free Trade Agreement (NAFTA).2 The Caribbean Basin Economic Recovery Act, parent to the Caribbean Basin Trade Partnership Act (CBTPA), did not permit duty-free treatmen3 The Andean Trade Preference Act, predecessor to the Andean Trade Promotion and Drug Eradication Act (ATPDEA), did not permit duty-free t4 The African Growth & Opportunity Act (AGOA).5 These articles must be sewn using only U.S. thread6 For AGOA-eligible countries, the likelihood of supplying regional yarns to the United States for weaving into fabric for apparel that is re-exported 

very small. Many sub-Saharan countries do not have the capacity to spin cotton or man-made fibers into yarns at competitive prices.

7 Imports of apparel under these provisions are limited to an aggregate quantity not to exceed a certain percentage of the average square meters 

imported into the United States in the preceding 12 months for which data are available. These quantities are recalculated annually. The percentage 

treatment increases in equal annual increments. Articles entered in excess of these quantities are subject to the otherwise applicable tariffs.

8 Under this provision, AGOA member countries designated as lesser-developed beneficiary sub-Saharan countries may export, duty-free, a cert

of the origin of the fabric or yarn used to make such articles. Articles entering under this provision shall be counted toward the limit set forth in note 2 exceed an applicable percentage of the aggregate square meters equivalent of all apparel articles imported into the United States in the preceding 1

available.

9 TPLs stand for tariff preference levels. They provide duty preferences for partners in free trade agreements or beneficiaries of preferential progr

"nonoriginating goods," up to a certain level. In the case of such partners or beneficiaries, certain apparel articles containing third-country yarns and

States duty-free under TPL provisions. Articles exceeding the designated level are subject to the otherwise applicable tariffs.

10 The President has the authority to determine that yarn or fabric cannot be supplied by the U.S. industry in commercial quantities in a timely ma

treatment to eligible apparel from such yarn or fabric.
December/January 2005

Integration of Manufacturing Industry Trade and Technology Review

20

Highlights of Developments in 2003

! Mexico and the Caribbean Basin countries24 were the leading apparel production-sharing

partners for the United States in 2003. U.S. imports of apparel under the special

production-sharing provisions of HTS headings 9819, 9820 and 982125 totaled

$8.2 billion in 2003. An additional $3.7 billion in apparel was imported into the United

States under HTS heading 9802.00.80.26 The share of total U.S. apparel imports

accounted for by imports under production-sharing provisions 9819 and 9820 remained

unchanged in 2003 as 2002, at 12 percent. Taking into account imports under the special

provision 9821, the share of total U.S. apparel imports entering under production-sharing

preference programs in 2003 was 13 percent. 

! Apparel containing qualifying U.S.-origin fabric and imported under the productionsharing provisions of HTS chapter 98 accounted for 67 percent of apparel imported into

the United States from the Carribean Basin in 2003 (table 3, columns 1, 2, and 5);

0.5 percent from AGOA-eligible countries (table 4, columns 1 and 6); and 11 percent

from the Andean countries (table 5, columns 1, 2, and 7). 

! Apparel made from qualifying regionally knit or woven fabric using U.S. or regionally

formed yarn and imported under HTS chapter 98 accounted for 8 percent of apparel

imported into the United States from the Carribean Basin in 2003 (table 3, data column

3); 15 percent from sub-Saharan African countries ( table 4, column 2); and 66 percent

from the Andean countries (see table 5, columns 3 and 4). 

! Piracy and illegal transshipment of apparel continue have serious implications for the

United States and its production-sharing partners. During May 2002 to May 2003, the

U.S. Customs and Border Protection Service seized over $8 million of pirated apparel

that was in violation of intellectual property rights laws regarding copyrights.27 China

was the country of origin for 35 percent of the garments seized for copyright violations. 

! U.S. apparel retailers increasingly are turning to suppliers that are vertically integrated, or

have a proven, independently developed supply chain, and offer “one-stop shopping.”

Services offered by these “full-package” producers include local fabric-sourcing; cutting,

assembly, and finishing; packaging; quality control; and finance, trade, and logistics

arrangements.28 After the elimination of import quotas in 2005, a country’s or a region’s

competitiveness in apparel assembly will depend heavily on the degree or extent of their

industry’s ability to offer full-package services. As a result, many production-sharing

partners in Mexico and the Caribbean Basin are striving to upgrade their operations to

qualify as full-package suppliers.

Apparel Assembly in Mexico

! U.S. imports of apparel from Mexico fell by 7 percent in 2003, to $7.1 billion,

representing a steady decline from a peak of $8.6 billion in 2000. Rising labor

compensation in Mexico has led some U.S. customers to shift sourcing of apparel to

lower labor-cost countries in Central America and Asia. For remaining customers,

however, Mexico offers lower transportation costs, quicker response time, and a welldeveloped fabric manufacturing industry to offset the disadvantage of higher labor costs.
21

Table 3U.S. imports of apparel from Caribbean Basin Trade Partnership Act (CBTPA)-eligible countries under CBTPA and production-sharing provision

(Million dollars)

Source

U.S.-cut

fabrics1

Regionally cut

fabrics2

Regionally knit

fabrics3 Total4

Other U.S.-cut fabric

partially dutiable under

9802.00.805

Entered 

Honduras ............................... 915.5 649.2 357.6 1,951.9 171.7 Dominican Republic ....................... 859.4 746.8 38.9 1,720.2 221.8 Guatemala . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.2 375.6 161.4 596.9 191.5 El Salvador .............................. 360.7 536.5 170.9 1,105.6 285.2 Costa Rica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349.1 58.4 1.0 411.7 113.1 Nicaragua . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70.66 76.7 1.1 149.2 8.8 

Haiti . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140.0 49.9 9.2 199.1 53.2 Jamaica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89.3 2.3 0 91.6 1.8 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.3 1.8 0.1 21.5 3.9  Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,859.1 2,497.2 740.2 6,247.7 1,051.0 

1 Apparel assembled in CBTPA countries from fabrics made and cut in the United States of U.S. yarns enter free of duty under HTS provision 9802.00

9820.11.15.

2 This category is comprised chiefly of apparel regionally-cut and assembled from U.S. fabric formed from U.S. yarn. The fabric is finished in the United 

Such apparel must be sewn with U.S. thread to qualify for duty-free entry under HTS 9802.11.06 and 9820.11.18. The category also includes apparel sewregionally-cut fabric, provided the fabric is formed in the United States from U.S. yarn. Such apparel enters under HTS provision 9820.11.33. 

3 This category includes imports under HTS provision 9820.11.09 and 9820.11.12. 4 Also includes imports of apparel made in CBERA countries from yarns or fabrics that are not produced in the United States in commercial quantities.5 Includes apparel imported under provisions 9802.00.80.15 and 9802.00.80.68. The latter provides a duty exemption for U.S. components returned to 

of assembled goods. In general, the duty is assessed on the value added offshore. The fabric for making the apparel components can be of either U.S. or fabric is cut in the United States and exported ready for assembly. Apparel continuing to enter under this provision is likely made from foreign fabric that is 

from U.S. fabric that is formed from foreign yarn.

6 Does not include any apparel entering the United States duty-free under 9820.11.15 (i.e., no brassieres).

Note.—Because of rounding, figures in this table may not add up to totals shown.Source: Compiled from official statistics of the U.S. Department of Commerce, Office of Textiles and Apparel.
22

Table 4Apparel: U.S. imports from African Growth and Opportunity Act (AGOA)-eligible countries entered duty-free under AGOA, at reduced duties und9802.00.8068, and at normal trade relations (NTR) duty rates, 2003

(Million dollars)

Duty-free under the AGOA, assembled from:

Source1

U.S. 

fabrics2

Regional

fabrics3

Third-country

fabrics4 Other5 Total

Reduced duties

under “807"6

Lesotho . . . . . . . . . . . . . . . . . . . . . . . 0 0 372.6 0 372.6 0.08 Mauritius . . . . . . . . . . . . . . . . . . . . . . 0.9 102.7 0 31.3 135.0 0.07 South Africa . . . . . . . . . . . . . . . . . . . 2.1 121.1 0 3.4 127.0 0 Madagascar . . . . . . . . . . . . . . . . . . . 0.3 0.1 171.9 13.8 186.1 0 Kenya . . . . . . . . . . . . . . . . . . . . . . . . 0 0 176.1 0 176.2 0.17 Swaziland . . . . . . . . . . . . . . . . . . . . . 0.1 0 127.0 0 127.0 0.2 Namibia . . . . . . . . . . . . . . . . . . . . . . 0 0 32.1 0 32.1 0 Malawi . . . . . . . . . . . . . . . . . . . . . . . 0 0 22.4 0 22.4 0 Other . . . . . . . . . . . . . . . . . . . . . . . . . 3.8 2.4 12.3 0.6 19.1 0  Total . . . . . . . . . . . . . . . . . . . . . . . 7.2 226.4 914.3 49.1 1,196.9 0.38 

1 Côte d’Ivoire, the Gambia, the Democratic Republic of the Congo (DROC),and Sierra Leone were added to the list of countries designated by the Pre

under AGOA in late 2002. In Dec. 2003, the President designated Angola as a lesser-developed beneficiary sub-Saharan country. The President also termand the Central African Republic in Dec. 2003, deleting them from the list of lesser-developed beneficiary sub-Saharan countries.

2 Data in this column are for entries under two HTS provision: (1) 9819.11.03–apparel assembled in AGOA countries from fabrics formed and cut in th

that would have otherwise qualified for entry under subheading 9802.00.80.42 but for the fact that the apparel, after assembly, underwent further processwashing); and (2) 9819.11.06–apparel assembled from fabrics formed in the United States but cut in certain AGOA countries, and sewn together with U.S

entries in 2003 under HTS subheading 9802.00.80.42, which provides duty-free entry for apparel assembled in AGOA countries from fabrics made and cu

yarns and not further processed..

3 Includes apparel imported from AGOA countries free of duty under HTS subheadings 9819.11.09, limited quantities of apparel knit-to-shape in an AG

and knit apparel cut and assembled in AGOA countries from fabrics formed in such countries of U.S. yarns or from fabrics formed in such countries or the 

4 Includes entries under HTS subheading 9819.11.12, permitting duty-free treatment for limited quantities of apparel made in lesser-developed AGOA 

country of origin of the fabric or the yarn used to make such garments.

5 Includes apparel imported from AGOA countries free of duty under four HTS subheadings: (1) 9819.11.15–cashmere sweaters knit-to-shape in AGO

9819.11.18–wool sweaters knit-to-shape in AGOA countries; (3) 9819.11.21 and 9819.11.24–apparel assembled from fabrics or yarn designated by the Pcommercial quantities in the United States; and (4) 9819.11.27-certified hand-loomed, handmade and folklore articles.

6 Includes apparel entered under HTS subheading 9802.00.80.68. This subheading provides a duty exemption for U.S. components returned to the Un

finished goods. In general, the duty is assessed on the value added offshore. The fabric for making the apparel components can be of either U.S. or foreig

is cut in the United States and exported ready for assembly.Note.— Because of rounding, figures in this table may not add up to totals.Source: Compiled from official statistics of the U.S. Department of Commerce, Office of Textiles and Apparel. 
23

Table 5Apparel: U.S. imports from Andrean Trade Promotion and Drug Eradication Act (ATPDEA)-eligible countries entered duty-free under ATPDEA, aHTS subheading 9802.00.8068, and at normal trade relations (NTR) duty rates, 2003

(Million dollars)

Duty-free under the ATPDEA, assembled from:

Source

U.S.-formed and

finished fabric

from U.S. or

regional yarn

Brassieres

 with at least

75 percent

U.S. fabric1

Regional fabrics

using regional

yarns of IIama,

alpaca or vicuna2

Other regional

fabrics of U.S. or

regional yarns3 Other4 Total5

Reduced

duties under

“807"6

Peru . . . . . . . . . . . . . . 2.7 (7) 7.5 442.0 0.4 452.6 (8) 

Colombia . . . . . . . . . . 47.3 2.5 9.1 195.0 7.4 261.3 61.7 Bolivia . . . . . . . . . . . . . 0.7 0 1.4 27.4 0.9 30.5 0.9 Ecuador . . . . . . . . . . . 1.8 0 0.5 9.3 0.1 11.8 0.7  Total . . . . . . . . . . . . 52.6 2.6 18.6 673.1 8.8 756.3 63.3 

1 Indicates articles entered under HTS provision 9821.11.19, which affords duty-free treatment to brassieres cut and assembled in the United States an

a result, this category may include some fabrics with regional content. However, the regional content of any such fabric used to assemble these brassierethe aggregate declared customs value from the preceding 12-month period of any such articles eligible under this subheading and entered by a producer subheading.

2 Indicates articles of chief value of llama, alpaca, or vicuña, imported under HTS 9821.11.04.3 Includes apparel assembled from ATPDEA fabric from U.S. or ATPDEA yarn, imported under HTS 9821.00.25. Quantitative limits apply.4 Includes apparel imported from ATPDEA countries free of duty under HTS subheading 9821.11.13–combinations of 9821.11.01 through 9821.11.10, 

9821.11.16–certified hand-loomed, handmade, and folklore articles.

5 (1)Includes apparel imported from ATPDEA countries free of duty under HTS subheadings 9821.11.07 and 9821.11.10--assembled from fabrics or ya

President as not available in commercial quantities in the United States.

6 Includes apparel entered under HTS subheading 9802.00.80.68. This subheading provides a duty exemption for U.S. components returned to the Un

finished goods. In general, the duty is assessed on the value added offshore. The fabric for making the apparel components can be of either U.S. or fore

is cut in the United States and exported ready for assembly.

7 Less than $50,000.8 Less than $10,000.

Note.—Because of rounding, figures in this table may not add up to totals.

Source: Compiled from official statistics of the U.S. Department of Commerce, Office of Textiles and Apparel.
December/January 2005

Integration of Manufacturing Industry Trade and Technology Review

24

! Production of textiles, apparel, and leather goods recorded the largest decrease among all

of Mexico’s manufacturing sectors in 2003, falling by 8.9 percent.29 This contraction of

output occurred despite a 6.8-percent reduction in unit costs per man-hour in this

category in 2003.30 Although improvements in unit costs typically would attract more

foreign direct investment, anticipated cost increases for labor and energy have dampened

Mexico’s standing as a preferred production-sharing partner for the U.S. apparel industry.

! Concern over the continued shift of apparel production from Mexico to the Caribbean

Basin is not reflected in the trends in trade in the woven cotton trousers category, which

accounted for 36 percent of U.S. apparel imports from Mexico but just 16 percent from

the Caribbean Basin region (figures 3 and 4). Denim jeans accounted for two-thirds of the

woven cotton trousers entering from Mexico, but only 15 percent of such trousers from

the Caribbean Basin region, as trousers producers in the region have focused on casual

slacks. By contrast, U.S. imports of apparel from the Caribbean Basin region is highly

concentrated in knit cotton apparel (especially sweaters, golf shirts, t-shirts, dress shirts,

trousers, briefs, and socks). Those categories accounted for 45 percent of total U.S.

apparel imports from Caribbean Basin countries in 2003 compared with just 17 percent

from Mexico (figures 3 and 4). 

! The data indicate that although there has been some shift in the assembly of knit cotton

shirts from Mexico to the Caribbean Basin region, production of blue jeans largely has

remained in Mexico because of the following conditions:

• Mexico has a well-developed supply chain for the production of denim, using

both Mexican and U.S. cotton.

• Mexican textile mills, particularly in Torreon, Hidalgo, and Puebla, have

mastered the technology for weaving denim-lycra blend fabrics from yarns

manufactured in Mexico.

• Jeans imported into the United States from Mexico that are made from fabric

woven in Mexico enter free of duty under NAFTA. Comparable jeans entering

from the Caribbean Basin made from regionally woven fabric are fully dutiable,

because only apparel made from regionally knit fabric is eligible for duty-free

entry under the CBTPA (see table 2).

• Differentiation in fabric finishes affects tariff treatment and favors Mexican

suppliers. Jeans assemblers in the Caribbean Basin region must use fabric that

has been finished in the United States to qualify for duty-free entry under the

CBTPA. No such restriction applies to jeans from Mexico, allowing jeans

assemblers there to use locally finished denim and, therefore, respond more

quickly to orders from customers than suppliers in the Caribbean Basin region.
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Industry Trade and Technology Review Integration of Manufacturing

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Women's or girls' 

knitted synthetic 

swimwear

2%

Knit sweaters or 

pullovers of manmade fibers

4%

Woven synthetic 

trousers and shorts

4%

Woven cotton 

trousers and shorts

36%

All other

37%

Knit cotton 

sweaters or 

pullovers

7%

Knit cotton t-shirts

10%

Figure 3

Composition of apparel imports from Mexico in 2003

Source: Compiled from official statistics of the U.S. Department of Commerce, Office of Textiles and 

Apparel.

Knit cotton t-shirts

14%

Knit sweaters and 

pullovers of manmade fibers

2%

Knit cotton trousers 

and shorts

3%

Knit cotton shirts

3%

Brassieres

5%

Knit cotton 

underwear 

(bottoms)

7%

Woven synthetic 

trousers and shorts

5%

Knit cotton 

stockings and 

socks

2%

Woven cotton shirts

2%

Knit cotton 

sweaters and 

pullovers

16%

Woven cotton 

trousers and shorts

16%

All other

25%

Source: Compiled from official statistics of the U.S. Department of Commerce, Office of Textiles and 

Apparel.

Figure 4

Composition of apparel imports from the Caribbean Basin in 2003
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Integration of Manufacturing Industry Trade and Technology Review

26

! So far, there has been little shift from Mexico to the Caribbean Basin region in the

production of apparel using fabric produced from man-made fibers, reflecting the greater

diversification of the textile and apparel industry in Mexico and its superior technology

and capacity for producing fibers and fabric.

! By contrast, a relatively small number of textile mills supply regionally produced fabric

to the Caribbean Basin apparel industry. Few of these mills have the capacity to produce

woven fabric.31

Apparel Assembly in the Caribbean Basin

! The pattern of U.S. apparel trade with the Carribean Basin region began to change

significantly with the implementation of the CBTPA in October 2000.32 Enacted as Title

II of the Trade and Development Act of 2000, the CBTPA, among other things, grants

duty-free and quota-free entry to imports of qualifying apparel articles assembled in

Caribbean Basin countries from fabrics made in the United States of U.S. yarns, whether

the fabrics were cut to shape in the United States or in Caribbean Basin countries.33 In

2003, uncut U.S. fabrics continued to be sent to CBTPA member countries for cutting

and assembly into qualifying garments, evidenced by the fact that U.S. fabric exports to

the region increased in value by 7 percent, from $1.7 billion to $1.8 billion.

! U.S. imports of apparel from CBTPA-eligible countries grew in 2003 by 5.5 percent in

quantity terms and by 1.5 percent in value to $9.6 billion (table 6).

! The five-largest Central American countries (Costa Rica, El Salvador, Guatemala,

Honduras, and Nicaragua) supplied 73 percent ($7.1 billion) of all U.S. imports of

apparel from CBTPA-eligible countries in 2003 (see table 6). Honduras was the leading

CBTPA supplier, accounting for 26 percent of the group total in 2003, followed by the

Dominican Republic (22 percent), Guatemala and El Salvador (18 percent each), and

Costa Rica (6 percent).

! The Caribbean Basin countries constitute the second-largest U.S. export market for

textiles after Mexico. The United States shipped $4.5 billion in U.S. yarns, fabrics, and

cut pieces to the region in 2003, comprising 44 percent of total U.S. textile exports for

that year. The Dominican Republic and the Central America Free Trade Agreement

(CAFTA) countries (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua)

accounted for 93 percent of U.S. textile exports to the Caribbean Basin region in 2003.34

! The apparel industries in Costa Rica, the Dominican Republic, Haiti, Honduras, and

Jamaica are the most integrated with the U.S. textile industry, with 88 percent of U.S.

apparel imports from these countries manufactured from U.S. fabric or yarn and entering

duty-free under the CBTPA or at reduced duties under HTS provision 9802.00.80 in

2003 (see table 6). By contrast, 58 percent of apparel from Guatemala and Nicaragua

used third-country (usually Asian) fabric.
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Industry Trade and Technology Review Integration of Manufacturing

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Table 6

U.S. imports of apparel from Caribbean Basin Trade Partnership Act (CBTPA)-eligible countries during 1999-

2003, and share entering under CBTPA preferences and/or production-sharing provisions (HTS 9802.00.8015

and 9802.00.80681

), 2003

Entry under CBTPA and/or

Production Sharing in 2003

Source 1999 2000 2001 2002 2003 Value

Share of

country total

 –––––– Million square meter equivalents ––––– Percent

Honduras . . . . . . . . . . . . . 943 1,028 1,020 1,090 1,152 1,023 89

El Salvador . . . . . . . . . . . . 602 719 725 777 856 690 81

Dominican Republic . . . . . 858 837 753 730 750 697 93

Guatemala . . . . . . . . . . . . 305 360 388 415 445 204 46

Costa Rica . . . . . . . . . . . . 346 350 350 362 332 308 93

Nicaragua . . . . . . . . . . . . . 66 83 96 120 150 53 35

Haiti . . . . . . . . . . . . . . . . . 127 125 109 109 137 123 90

Jamaica . . . . . . . . . . . . . . 148 126 102 84 72 69 96

Other CBTPA . . . . . . . . . . 21 23 29 27 26 20 77

 Total CBTPA . . . . . . . 3,416 3,651 3,570 3,714 3,920 3,187 81

 ––––––––––––––– Million dollars –––––––––––––– Percent

Honduras . . . . . . . . . . . . . 2,158 2,323 2,344 2,440 2,503 2,124 85

El Salvador . . . . . . . . . . . . 1,329 1,583 1,612 1,675 1,720 1,391 81

Dominican Republic . . . . . 2,337 2,425 2,252 2,162 2,124 1,942 91

Guatemala . . . . . . . . . . . . 1,233 1,487 1,604 1,659 1,762 788 45

Costa Rica . . . . . . . . . . . . 819 819 749 725 589 525 89

Nicaragua . . . . . . . . . . . . . 277 336 374 433 484 158 33

Haiti. . . . . . . . . . . . . . . . . . 249 251 216 217 290 252 87

Jamaica . . . . . . . . . . . . . . 345 268 182 124 105 94 90

Other CBTPA . . . . . . . . . . 56 50 41 37 34 25 74

Total CBTPA . . . . . . 8,803 9,542 9,373 9,472 9,611 7,299 76

 1

 The comparable classification for articles imported under current HTS subheading 9802.00.80.68 was

9802.00.80.65 in 1999 and 9802.00.80.66 during 2000-2002.

Source: Compiled from official statistics of the U.S. Department of Commerce, Office of Textiles and Apparel. The

data cover apparel subject to the former Multifiber Arrangement (superceded by the WTO Agreement on Textiles and

Clothing), which accounted for 99 percent of total U.S. apparel imports from CBTPA countries in 2002.

! In Honduras, the primary Caribbean Basin production-sharing partner of the United

States for apparel, the manufacture of goods covered by production-sharing provisions

reached 6.5 percent of Honduran gross domestic product in 2003.35 Most of the

Honduran apparel assembly operations reportedly have adopted the full-package model,

facilitating just-in-time supply and quick production turnaround.36

! Rising labor compensation in Honduras led Montreal-based Gildan Activewear Inc. to

close one of its three t-shirt production facilities in Honduras in mid-2004. The company

reportedly is diverting two-thirds of the closed plant’s production to Haiti and one-third

to Nicaragua in conjunction with opening a textile manufacturing facility in the

Dominican Republic intended to supply fabric for its sewing operations in Haiti and

Nicaragua.37
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28

Apparel Assembly in Sub-Saharan Africa

! U.S. imports of apparel from the AGOA-eligible countries of Sub-Saharan Africa grew

by 37 percent in value in 2003, to $1.5 billion (table 7). Apparel accounted for 11 percent

of total U.S. imports from these countries in 2003. Crude petroleum was the leading

import category.

! Apparel made from third-country fabric ($914 million) accounted for 76 percent of U.S.

apparel imports under AGOA in 2003 (see table 4), whereas apparel made from U.S.

fabric ($7.6 million)38 accounted for 0.5 percent of such imports. Apparel entering the

United States duty-free under AGOA ($1.2 billion) accounted for 80 percent of total

imports of apparel from AGOA-eligible countries. 

! Lesotho remained the leading supplier of U.S. imports of apparel from AGOA-eligible

countries, with 26 percent of the group total in 2003, followed by Mauritius (18 percent),

South Africa (16 percent), and Madagascar (13 percent) (see table 7).

! Under AGOA, designated less-developed member countries were afforded duty-free

treatment for apparel made from third-country fabric. AGOA II expanded the list of

eligible countries to include Botwana and Nimibia. As of November 1, 2004, 24 of the 37

AGOA beneficiaries are eligible for this program. On July 13, 2004, AGOA III (H.R.

4103) was signed into law, extending AGOA trade benefits until 2015 and extending by

3 years the special rule allowing use of third-country fabric until September 30, 2007 (see

table 2).

! AGOA III modified the rules of origin to allow the use of foreign-origin components

such as collars, cuffs, drawstrings, waistbands, shoulder pads, patches, straps using

elastic, and attached belts. Also, the current de minimis level for foreign-origin yarns,

enabling greater use of foreign yarns in the production of regional fabric without

disqualifying the resulting apparel from duty-free entry into the United States, was

increased from 7 percent to 10 percent of the total weight of the article.

Apparel Assembly in the Andean Countries

! The ATPDEA is an expansion of the Andean Trade Preference Act, in place since 1991.

The 2002 renewal of the act extended benefits to the textiles and apparel industries in

Bolivia, Colombia, Ecuador and Peru. Under the ATPDEA, any apparel assembled in the

Andean region from U.S. fabric or fabric components, or components knit-to-shape in the

United States, was granted duty-free treatment in unlimited quantities. Apparel assembled

from fabric produced in the Andean region or components knit-to-shape in the region

became eligible for duty-free treatment up to a cap of 2 percent of total U.S. apparel

imports during the preceding 12-month period beginning October 1,2002, with the cap

increasing by in equal increments in each 1-year period to a maximum of 5 percent for

the period beginning October 1, 2005.39

! The ATPDEA affords greater flexibility to apparel producers in beneficiary countries

than the CBTPA does to beneficiaries of that program by permitting the use of fabric that

is woven in the region. Under the CBTPA, use of regionally woven fabric would
December/January 2005

Industry Trade and Technology Review Integration of Manufacturing

29

disqualify the apparel from duty-free entry into the United States. Key developments in

imports of apparel from Andean countries in 2003 include:

• U.S. imports of textiles and apparel from the Andean region grew by 39 percent

to $1.1 billion in 2003, the first full year of eligibility for duty-free treatment

under the ATPDEA (table 8). Without such preferences for most of the preceding

year, imports fell by 0.5 percent during 2001-02. Andean countries accounted for

only 1.6 percent of U.S. apparel imports in 2003 (see table 1). 

Table 7

Textiles and apparel: U.S. imports from sub-Saharan Africa countries since the implementation of

AGOA, by quantity and value, 2001-2003 and percentage change in 2003 from 2002

Source 2001 2002 2003

Percentage change in

2003 from 2002

 ––––– Million square meter equivalents ––––––– Percent

Lesotho . . . . . . . . . . . . . . . . . . . . . . 51 84 104 24

Mauritius . . . . . . . . . . . . . . . . . . . . . 41 47 45 -4

South Africa . . . . . . . . . . . . . . . . . . 59 75 86 15

Madagascar . . . . . . . . . . . . . . . . . . 37 22 53 141

Kenya . . . . . . . . . . . . . . . . . . . . . . . 19 37 46 24

Swaziland . . . . . . . . . . . . . . . . . . . . 11 25 49 96

Namibia . . . . . . . . . . . . . . . . . . . . . (1

) 1 11 1,000

Malawi . . . . . . . . . . . . . . . . . . . . . . . 4 3 7 133

Other . . . . . . . . . . . . . . . . . . . . . . . . 12 10 17 70

 Total . . . . . . . . . . . . . . . . . . . . . . 234 304 418 38

 –––––––––––––– Million dollars ––––––––––– Percent

Lesotho . . . . . . . . . . . . . . . . . . . . . . 215 321 393 22

Mauritius . . . . . . . . . . . . . . . . . . . . . 238 255 269 5

South Africa . . . . . . . . . . . . . . . . . . 195 200 253 27

Madagascar . . . . . . . . . . . . . . . . . . 178 89 196 120

Kenya . . . . . . . . . . . . . . . . . . . . . . . 65 126 188 49

Swaziland . . . . . . . . . . . . . . . . . . . . 48 89 141 58

Namibia . . . . . . . . . . . . . . . . . . . . . (2

) 7 42 500

Malawi . . . . . . . . . . . . . . . . . . . . . . . 11 11 23 109

Other . . . . . . . . . . . . . . . . . . . . . . . . 2 22 30 36

 Total . . . . . . . . . . . . . . . . . . . . . . 975 1,120 1,535 37

 1

 80,000 square meters.

 2

 $100,000. 

Source: Compiled from official statistics of the U.S. Department of Commerce, Office of Textiles and Apparel.
December/January 2005

Integration of Manufacturing Industry Trade and Technology Review

30

Table 8

Textiles and apparel: U.S. imports from eligible countries under the Andean Trade Promotion and

Drug Eradication Act (ATPEA), quantity and value, 2001-2003 and percent change in 2003 from

2002

Source

Quantity Percentage change in

2003 from 2002 2001 2002 2003

 ––––––– Million square meter equivalents ––––––– Percent

Colombia . . . . . . . . . . . . . . . . . . . . 96.5 109.6 149.6 36

Peru . . . . . . . . . . . . . . . . . . . . . . . . 58.3 63.4 70.8 12

Ecuador . . . . . . . . . . . . . . . . . . . . . 18.0 14.9 19.0 28

Bolivia . . . . . . . . . . . . . . . . . . . . . . . 3.5 5.3 7.1 27

 Total . . . . . . . . . . . . . . . . . . . . . . 176.3 193.3 246.7 28

 ––––––––––––––– Million dollars ––––––––––––––– Value

Colombia . . . . . . . . . . . . . . . . . . . . 376.3 369.5 538.9 46

Peru . . . . . . . . . . . . . . . . . . . . . . . . 383.8 395.3 516.1 31

Ecuador . . . . . . . . . . . . . . . . . . . . . 24.7 15.6 18.1 16

Bolivia . . . . . . . . . . . . . . . . . . . . . . . 18.4 18.7 34.3 83

 Total . . . . . . . . . . . . . . . . . . . . . . 803.2 799.4 1,107.4 39

Note.—Because of rounding, figures in this table may not add to the totals shown.

Source: Compiled from official statistics of the U.S. Department of Commerce, Office of Textiles and Apparel.

• Peru and Colombia accounted for nearly all imports of apparel from the Andean

region in 2003, with Peru supplying 48 percent and Colombia, 47 percent

(table 5). Colombia’s geographic position results in its apparel industry

comprising a mixture of maquiladora-type operations on the northern coast,

which rely heavily on U.S. and non-Andean sources for fabric, and more

vertically integrated operations in the valleys of the mountainous interior of the

country, which use regionally produced fabric. Apparel made from U.S. fabric

accounted for 22 percent of total U.S. apparel imports from Colombia in 2003,

but only 0.5 percent of apparel imports from Peru. Apparel made from thirdcountry fabric accounted for 37 percent of U.S. apparel imports from Colombia

and 10 percent from Peru.

• The Peruvian textile and apparel sector is more of an integrated national industry,

using fibers and fabrics from locally produced cotton and wool. Apparel made

from regional fabric accounted for 89 percent of U.S. imports of apparel from

Peru and 41 percent from Colombia (see table 5).

2005 Textile Import Quota Eliminations

U.S. textile import quotas under the Agreement on Textiles and Clothing were lifted January 1,

2005. The elimination of quotas is anticipated to have significant, although perhaps not immediate, effects

on the pattern of U.S. production-sharing in textiles and apparel. A representative of the U.S. apparel

industry anticipated that a large-scale Chinese takeover of the global apparel industry is not likely within

the first year following the end of textile quotas. This industry source notes that apparel companies

satisfied with their current “sourcing matrix” are less likely to make immediate changes, especially

without evidence that the absence of textile quotas will result in lower production costs. This source

pointed out that even 2 or 3 years in the future, companies may still consider other Asian countries for

assembly operations.40 
December/January 2005

Industry Trade and Technology Review Integration of Manufacturing

31

An official of a major Guatemalan apparel supplier confirmed this “wait and see” approach to

sourcing decisions in a postquota world, noting that sourcing patterns will be based not only on cost but

also on factors such as the ability to supply specialized products (a strong advantage of China). Although

the Central American apparel industry recognizes the “overwhelming strength” of China, high

expectations stemming from CAFTA (rather than concern about China) have become the primary focus

for apparel manufacturers and companies in this region.41 The future pattern of U.S. production-sharing,

after quotas are no longer a factor, is reported to rest largely on turnaround time, shipping expense, cost of

inputs (labor and fabric for apparel), product quality, and the ability to supply value-added services.42 

Some U.S. companies reportedly are poised to pull out of regions where assembly operations

have emerged primarily because quotas on imports from traditional suppliers have been filled. The extent

to which tight quotas on imports from Asia are responsible for apparel assembly in the Caribbean Basin is

an open question. 

China’s December 2001 accession agreement to the World Trade Organization (WTO) included

import safeguards that can cushion the effects of the elimination of quotas. If the U.S. Department of

Commerce determines that a segment of the U.S. apparel industry is being injured or threatened with

injury because of the elimination of quotas on imports of equivalent apparel articles from China, the

annual growth in imports of those articles can be limited to 7.5 percent (6 percent for wool items). This

safeguard provision expires after 3 years, meaning that after January 1, 2009, imports from China will be

subject to the same safeguard measures as products from other WTO members. The Committee for the

Implementation of Textile Agreements (CITA) granted three safeguard-action requests in December of

2003 based on market disruption caused by sharply increased imports from China in three categories for

which the quotas already had been removed.43

CITA imposed safeguards on imports of socks from China effective October 29, 2004, basing its

decision both on the threat of disruption and actual market disruption.44 More recently, CITA has

accepted several petitions for safeguard relief based on the threat of market disruption from pending

elimination of quotas. These petitions covered underwear and trousers of all materials, and shirts and

blouses of cotton and/or manmade fiber, except woven blouses.45 Additionally, U.S. industry groups have

filed new, threat-based petitions to extend existing growth limits on imports of Chinese knit fabric,

brassieres, and dressing gowns, which were implemented on December 29, 2003 and are slated to expire

in December of 2004.46 

The removal of textile quotas is of particular concern to Central American governments, who find

their position as a significant U.S. partner for the assembly of apparel uncertain in a postquota world.

Central American industry heads have indicated that competition from China as both a producer of fabric

and a site for apparel assembly threatens to undermine the advantage of the Caribbean Basin even though

several Caribbean Basin countries have duty-free status under the CBTPA. The rules of origin under the

Central American and Dominican Republic Free Trade Agreements, assuming Congressional approval of

these agreements, may have a significant effect on the ability of the regional apparel industry to survive in

the postquota environment.#
December/January 2005

Integration of Manufacturing Industry Trade and Technology Review

32

1. See Jesus Canas, Roberto Coronado, and Bill Gilmer, “Maquiladora Downturn: Structural Change or

Cyclical Factors?” Business Frontier, Federal Reserve Bank of Dallas, El Paso Branch, No. 2, 2004,

chart 1, p. 3.

2 See William Chadwick, Jr., “Global Trends in the Information Technology Outsourcing Services Market,"

Industry Trade and Technology Review, USITC publication No. 3661, Nov. 2003, pp. 1-4.

3. See e.g., Ralph Watkins, “Production Sharing Update: Developments in 2002,” Industry Trade and

Technology Review, USITC publication No. 3661, Nov. 2003, pp. 11-30, app. B, and app. C; and Ralph

Watkins, “Production Sharing Update: Developments in 2001,” Industry Trade and Technology Review,

USITC publication No. 3534; July 2002, pp. 27-42, pp., app. B, and app. C; available at

http://www.usitc.gov/ind_econ_ana/research_ana/ier_ittr/ittr/index.htm. 

4. As Caribbean Basin and Andean apparel producers become more competitive with suppliers in Asia,

opportunities are increased for the U.S. textiles industry increase its sales of fabric and yarn to regional

apparel producers. See USITC, Textiles and Apparel: Assessment of the Competitiveness of Certain

Foreign Suppliers to the U.S. Market, Inv. No. 332-448, USITC publication. No. 3671, Jan. 2004, app. I

and J.

5. Data shown in app. B of this publication are from “World Trade Atlas: Mexico Edition, December 2003,”

which used data provided by Instituto Nacional de Estadística Geografia e Informática (INEGI), the

statistical agency of the Government of Mexico.

6. Companies in Mexico can operate under the Maquiladora Program or the Program for Temporary Imports

Used in the Manufacture of Exports (PITEX), or both, as long as the manufacturing projects are different.

Until Jan. 1, 2001, companies registered under these programs were allowed to import components,

materials, and machinery free of duty provided they were used in the assembly or manufacture of goods for

export markets. For a discussion of changes to these programs pursuant to Article 303 of NAFTA, see

Ralph Watkins, “Production Sharing Update: Developments in 2000, Industry Trade and Technology

Review, USITC publication No. 3443, July 2001, pp. 11-23.

7. Statistical tables covering trade under Mexico’s production-sharing provisions in 2003 are provided in

app. B.

8. Stephan P. A. Brown, “Do Energy Prices Threaten the Recovery?” Southwest Economy, Federal Reserve

Bank of Dallas, No. 3, May/June 2004.

9. Presentation by Barry Bosworth, “The Jobless Recovery: Offshoring Jobs: U.S Productivity Growth at

Home," National Economics Club: Society of Government Economists, Washington, DC, Sept. 14, 2004.

10. U.S. Census Bureau (Census), Manufacturers’ Shipments, Inventories, and Orders: December 2003,

Feb. 2004, table 1, p. 3. 

11. See Ralph Watkins, “Mexico Versus China: Factors Influencing Export and Investment Competition,”

Industry Trade and Technology Review, USITC publication No. 3534, July 2002, pp. 11-26.

12. Ibid.

13. “Factory Stats,” Mexico Watch, Apr. 1, 2004, p. 11.

14. “In Brief: Factory Jobs Lost,” Mexico Watch, Sept. 1, 2004, p. 11.

15. “Maquiladora Focus: Factories are Finally Out of the Woods, but the Export Landscape Has Changed,”

Mexico Watch, July 1, 2004, p. 6.

16. PITEX accounted for 79 percent of Mexico’s motor vehicles and parts (HS chapter 87) exports to the

United States in 2003; Maquiladora Program exports accounted for 18 percent (table B-5).

17. Many inputs used in the manufacture of motor vehicles are not classified in HS chapter 87, including tires,

engines, meters, gauges, pumps, glass, seats, wiring harnesses, plastics, and steel. 

18. “In Brief: Auto Sales Up, Production Down,” Mexico Watch, Apr. 1, 2004, p. 11.

19. “Ward’s North American Weekly Vehicle Production Summary,” Ward’s Automotive Reports,

Jan. 19, 2004.

20. This section encompasses all products classified in HS chapters 84 and 85.

21. Statistical tables summarizing official trade under Mexico’s Maquiladora Program and PITEX for 2003 are

found in app. B of this publication. Comparable tables showing trade in 2002 are found in app. C of USITC,

Industry Trade and Technology Review, USITC publication No. 3661, Nov. 2003. 

22. Census, Manufacturers’ Shipments, Inventories, and Orders: December 2003, table 1.

ENDNOTES
December/January 2005

Industry Trade and Technology Review Integration of Manufacturing

33

23. USITC staff has compiled a list of reported plant changes in Mexico during 2002-04, including startups,

expansions, downsizing, closures, and shifts of product lines between plants. Examples in the bullets below

are from that list.

24. Defined as those Caribbean and Central American countries designated by the President as eligible for

preferential treatment under the CBTPA.

25. These tariff schedule heading were developed to implement legislation for AGOA, CBTPA, and ATPDEA,

respectively. Some of the provisions under HTS headings 9819, 9820 and 9821 do not include productionsharing activities with U.S. firms. See footnote 3 in table 3, footnotes 4 and 5 in table 4, and footnote 5 in

table 5. 

26. Data on U.S. imports of apparel under HTS provision 9802.00.80 from countries not eligible for

preferential treatment under NAFTA, AGOA, CBTPA, and ATPDEA were not collected as part of the

official U.S. trade statistics during Nov. 2002 to Apr. 2003.

27. U.S. Department of Commerce, Second Report to the Congressional Textile Caucus on the Administration's

Efforts on Textile Issues, Oct. 2003, p. 9, found at http://otexa.ita.doc.gov/twgrep2.pdf, retrieved

July 2, 2004.

28. Caribbean-Central American Alliance (CCAA), “The Importance of CAFTA to the Apparel and Textile

Industry in the U.S., the Dominican Republic, and Central America,” CCAA Quarterly, July 2004, p. 2.

29. Production in all manufacturing industries in Mexico decreased by 2.0 percent in 2003. INEGI, “Producto

Interno Bruto Trimestrial de la Industria Manufactura por Division de Actividad Economica,” found at

http://www.inegi.gob.mx/est/contenidos/espanol/tematicos/coyuntura/ coyuntura.asp?t=agr03&a=-

1&c=1053, retrieved Oct. 21, 2004.

30. By comparison, unit costs per man-hour for all manufacturing industries in Mexico declined by 8.1 percent

in 2003. INEGI, “Costos Unitarios de la Mano de Obra en Mexico por Division de Actividad Economica,”

found at http://www.inegi.gov.mx/est/contenidos/espanol/tematicos

coyuntura/coyuntura.asp?t=man01&c=474, retrieved Oct. 21, 2004. 

31. Several apparel producers in Central America interviewed by USITC staff in Feb. 2003 predicted that if

CAFTA rules of origin allowed the use of Mexican fabric, Mexico could become the leading supplier of

fabric for Central America’s apparel industry. Some of the apparel sewing jobs that would otherwise shift

from Mexico to China would go to Central America instead, thus preserving the market for Mexico’s textile

industry.

32. The CBTPA provides for duty-free and quota-free treatment for imports of qualifying textile and apparel

articles from CBERA beneficiary countries during a transition period beginning Oct. 1, 2000, and ending

on Sept. 30, 2008, or on the date which the Free Trade Area of the Americas or a comparable free-trade

agreement between the United States and CBERA countries enters into force. For a summary of the

CBTPA, see USITC, The Impact of the Carribean Basin Economic Recovery Act, USITC pub. No. 3636,

Sept. 2003, p. 9ff.

33. If the components are cut to shape in CBERA countries, the garments must be sewn with U.S. thread.

34. The calculations are based on data from the USITC DataWeb for U.S. exports reported under SITC codes

26 (fibers) and 84, which includes finished apparel as well as cut fabric suitable for sewing into apparel.

Most of these exports are believed to be pre-cut apparel parts. 

35. “Honduras Textile Groups Hope Trade Deal Will Sew Up Future,” Financial Times, July 27, 2004, p. 15.

36. CCAA, “The Importance of CAFTA to the Apparel and Textile Industry,” p. 3.

37. Brian Dunn, “Gildan Closing Honduras Plant,” Women’s Wear Daily, July 16, 2004, p. 17.

38. See the columns for “U.S. fabrics” and “Reduced duties under 807" in table 4.

39. For more information about the criteria determining the eligibility of apparel for duty-free and quota-free

entry into the United States under the ATPDEA, see USITC, The Impact of the Andean Trade Preference

Act, USITC publication No. 3637, Sept. 2003, pp. 1-7.

40. USITC staff telephone interview with apparel industry representative, Nov. 5, 2004. 

41. USITC staff telephone interview with apparel industry representative, Dec. 7, 2004.

42. USITC staff telephone interview with apparel industry representative, Nov. 5, 2004. 

43. The petitioning groups were the American Yarn Spinners Association, the American Manufacturing Trade

Action Coalition, the American Textile Manufacturers Institute, and the National Textile Association. 

Their requests were for safeguards on imports of knit fabric of Chinese origin, cotton and man-made fiber

brassieres, and cotton and man-made fiber dressing gowns. The petitions are available at

http://www.otexa.ita.doc.gov/Safeguard_intro.htm.
December/January 2005

Integration of Manufacturing Industry Trade and Technology Review

34

44. The petitioning groups in this instance were the Domestic Manufactures Committee (DMC) of the Hosiery

Association, the American Manufacturing Trade Action Coalition, the National Council of Textile

Organizations, and the National Textile Organization.

45. The referenced petitions were all filed within 1 week of each other in mid-Oct. 2004 by The American

Manufacturing Trade Action Coalition, the National Council of Textile Organizations, The National Textile

Association, SEAMS, and UNITE HERE! Each petition was granted consideration by CITA on

Nov. 3, 2004. Links to source documents are at http://www.otexa.ita.doc.gov/Safeguard_intro.htm.

46. This petition was filed on Oct. 12, 2004. See Robert Stang and Donald Stein, “United States Focuses on

Textiles and Apparel from China: Safeguards and Penalties,” Greenberg Traurig Global Trade Practice

Group, Oct./Nov. 2004, p. 11.
DECEMBER/JANUARY 2005 

Industry Trade and Technology Review Key Performance Indicators 

A-1 

APPENDIX A 

Key Performance Indicators of Selected 

Industries and Regions1

Title Author1 Page

Steel Harry Lenchitz 

(202) 205-2737 

harry.lenchitz@usitc.gov

A-2

A-3

Automobiles Laura A. Polly 

(202) 205-3408 

laura.polly@usitc.gov

A-4

Unwrought Aluminum Karl Tsuji 

Judith-Anne Webster 

(202) 205-3489 

judith-anne.webster@usitc.gov

A-5

Flat Glass Vincent DeSapio 

(202) 205-3435 

vincent.desapio@usitc.gov

A-6

Services Cynthia Payne 

(202) 205-3410 

cynthia.payne@usitc.gov

A-7

North American Trade Ruben Mata 

(202) 205-3403 

ruben.mata@usitc.gov

A-8

A-9

1 The data and views presented for the following indicators are compiled from the industry sources noted and are 

those of the authors. They are not the views of the United States International Trade Commission as a whole or of any 

individual Commissioner. Nothing contained in this information based on published sources should be construed to 

indicate how the Commission would find in an investigation conducted under any statutory authority.
DECEMBER/JANUARY 2005 

Industry Trade and Technology Review Key Performance Indicators 

A-2 

STEEL 

-30

-20

-10

0

10

20

Q1

2001

Q1

2002

Q1

2003

Q1

2004

Percent

Integrated Minimill Specialty

Figure A-1

Integrated and minimill producers' operating income1

 increases for third consecutive 

quarter in 2004

 1 Operating income (loss) as a percent of sales. Integrated group comprises 4 firms. Minimill group 

comprises 7 firms. Specialty group comprises 4 firms.

Note.--Beginning in first quarter 2004 integrated group includes l previously untracked firm, and no longer 

includes l previously tracked firm, reflecting ownership changes in the industry.

Source: Individual company financial statements.

 

$ International Steel Group (ISG) Inc. started its hot briquetted iron (HBI) facility in Trinidad on December 12, 2004. 

ISG purchased the facility in July 2004 from Cliffs and Associates Limited, and plans to reach capacity production 

of 550,000 tons per year by summer 2005. The facility is the first to use the Circored® fluidized bed direct reduction 

process, which uses natural gas to reduce iron ore fines. HBI is a substitute for scrap in electric arc and blast 

furnaces. The process was developed by the former Lurgi Metallurgie GmbH of Germany, which is now part of 

Outokumpu Technology. See www.intlsteel.com and www.outokumpu.com

 

$ Ispat International N.V. completed its acquisition of LNM Holdings N.V. and changed its name to Mittal Steel 

Co. N.V. on December 17, 2004. On the same day, the U.S. Federal Trade Commission granted 

early termination of the waiting period for the proposed merger between Mittal Steel and ISG. Subject to approval 

by the shareholders of both Mittal and ISG, the merger is expected to be completed by the end of first quarter 2005. 

 See www.mittalsteel.com and www.intlsteel.com

$ Wheeling-Pittsburgh Steel Corp. and Severstal North America Inc. signed a non-binding letter of intent on 

December 23, 2004 to enter into a joint coke-producing venture. Wheeling-Pitt would contribute the assets of its 

Follansbee, WV coke plant and Severstal would contribute $140 million for capital improvements and pay an 

additional $20 million directly to Wheeling-Pitt. Each firm would own 50 percent of the proposed venture and each 

would receive one-half of the coke output for its steelmaking operations. See www.wpsc.com and 

www.severstal.ru

Table AB1 

Finished imports increase by 20 percent during third quarter 2004 compared with second quarter 

2004, and by more than 89 percent compared with third quarter 2003 reflecting strong domestic 

demand 

Item Q2 2004

Percentage 

change, Q3 2004

from Q2 2004 Q3 20041

Percentage 

change, Q3 2004

from Q3 2003

Producers= shipments (1,000 short tons)........................ 29,308 -5.0 27,840 -0.5

Finished imports (1,000 short tons)................................ 6,974 20.2 8,382 89.1

Semifinished imports (1,000 short tons)......................... 1,843 6.7 1,966 61.3

Exports (1,000 short tons).............................................. 1,942 -4.2 1,861 7.5

Apparent supply, finished (1,000 short tons).................. 34,340 0.1 34,361 12.0

Ratio of finished imports to apparent supply (percent) ... 20.3 24.1 24.4 210.0 1

 Preliminary. 

2

 Percentage-point change. 

Note.BBecause of rounding, figures may not add to the totals shown. 

Source: American Iron and Steel Institute. 
DECEMBER/JANUARY 2005 

Industry Trade and Technology Review Key Performance Indicators 

A-3 

STEEL

Table AB2 

Steel Service Centers: Third quarter 2004 shipments increase by 13 percent compared with third 

quarter 2003

Item June 2004 Sept. 2004

Percentage 

change, Sept.

2004 from

Jun. 2003 Q3 2003 Q3 2004

Percentage 

change, Q3

2004 from

 Q3 2003

Shipments (1,000 short tons) .................. 4,605 4,617 0.3 12,428 14,102 13.5

Ending inventories (1,000 short tons)...... 13,809 14,891 7.8 13,251 14,891 12.4

Inventories on hand (months).................. 3.0 3.2 (

1

) 3.1 3.2 (

1

)

 1

 Not applicable. 

Source: Metals Service Center Institute. 

• U.S. steel service centers maintained year-to-date record shipment levels during third quarter 2004 (table A-2). 

Monthly shipments during 2004 have exceeded year-earlier monthly shipments by double digits according to the 

Metals Service Center Institute. See http://www.msci.org

• The American Institute for International Steel import market survey (November 2004) predicts increased imports of 

cut-to-length plate and decreased imports of hot- and cold-rolled sheet, merchant bar, and structural products during 

the next 3 to 5 months. The survey predicts no significant changes in imports of semi-finished, corrosion resistant, 

wire rod, and stainless sheet. See http://www.aiis.org 

• The 62 countries reporting to the International Iron and Steel Institute produced 1.04 billion tons of crude steel during 

the first 11 months of 2004, a 9 percent increase compared with the same period in 2003. The leading producers 

during this period were China, United States, Japan, and Russia, with China=s steel production approximately equal 

to the next three countries combined. See http://www.worldsteel.org

• Strong domestic demand drove capability utilization and import penetration to new highs during third quarter 2004 

(figure A-2). See http://www.steel.org

0

20

40

60

80

100

120

Q1 2003 Q1 2004

Percent

0

2

4

6

8

10

short tons (millions)

Capability utilization (left scale) Import penetration (left scale)

Finished imports (right scale) Exports (right scale)

Figure A-2

Steel mill products, all grades: Capability utilization continues upward trend for fourth 

consecutive quarter

Note.--Capability utilization is the raw steel tonnage produced divided by the tonnage capability to produce raw steel 

for a sustained full order book

Source: American Iron and Steel Institute. 
DECEMBER/JANUARY 2005 

Industry Trade and Technology Review Key Performance Indicators 

A-4 

AUTOMOBILES 

Table A-3 

U.S. sales of new passenger vehicles (cars and light trucks), domestic and imported, and share of U.S. market 

accounted for by sales of total imports and Japanese imports, by specified periods, January 2003-September 2004 

 Percentage change 

Item 

Jul.-Sept. 

2004 

Jan.-Sept. 

2004 

Jul.-Sept. 2004 

from 

Apr.-June 2004 

Jan.-Sept. 

2004 from 

Jan.-Sept. 2003 

U.S. sales of domestic passenger vehicles (1,000 units) ..... 2,811 9,567 -22.0 -5.8 

U.S. sales of imported passenger vehicles (1,000 units)...... 753 2,410 -15.9 -4.5 

Total U.S. sales (1,000 units) ............................................. 3,564 11,976 -20.8 -5.5 

Ratio of U.S. sales of imported passenger vehicles to 

 total U.S. sales ................................................................. 21.1 20.1 1 1.2 1

0.2 

U.S. sales of Japanese imports as a share of the total 

 U.S. sales.......................................................................... 11.8 10.4 1

2.2 1 -0.1 1

 Percentage point change. 

Note.—Domestic passenger vehicles include U.S.-, Canadian-, and Mexican-built cars and light trucks sold in the United 

States. Imported passenger vehicles do not include cars and light trucks supplied by Canada and Mexico. 

• Total U.S. sales of passenger vehicles declined by nearly 21 percent in the third quarter 2004; sales of domestically produced 

vehicles took a larger percentage hit, at 22 percent, than sales of imports, which declined by almost 16 percent. Domestically 

produced passenger vehicles accounted for almost 79 percent of total U.S. vehicle sales in the third quarter, as compared to 80

percent in the second quarter 2004. 

• Consumer incentives offered by the Big Three U.S. automakers - GM, Ford, and the Chrysler Division of DaimlerChrysler – broke 

a record in July, reaching an average of over $4,000 per vehicle. By contrast, Japanese automakers offer an average of $1,024 

per vehicle in July. 

• Consumers have come to expect large incentives on Big Three vehicles; a recent study by JD Power and Associates reported that 

approximately 18 percent of consumers will not purchase a vehicle if they do not perceive the incentive package as sufficient. 

Further, despite their much larger average incentive offerings, 20 percent of Big Three models are passed over because of the 

incentive package, compared to 17 percent of import models. 

• Inventory levels continued to be a problem for Big Three automakers in third quarter 2004, despite reduced production levels. 

Inventory of pickup trucks and SUVs was particularly high. 

0

1000

2000

3000

4000

5000

Q1

2000

Q3 Q1

2001

Q3 Q1

2002

Q3 Q1

2003

Q3 Q1

2004

Q3

2004

1,000 units

Total sales--cars Total sales--cars/light trucks

Domestic sales--cars Domestic sales--cars/light trucks

Import sales--cars Import sales--cars/light trucks

Figure A-3

U.S. sales of new passenger vehicles (cars and light trucks) declined steeply in the third quarter 2004

Note.—Domestic sales include U.S.- and Mexican-built vehicles sold in the United States; these same units are not 

included in import sales.

Source: Automotive News ; prepared by the Office of Industries. 

2,811,316

3,564,196

551,827

752,880

1,972,930

1,421,103

Dollars
DECEMBER/JANUARY 2005 

Industry Trade and Technology Review Key Performance Indicators 

A-5 

UNWROUGHT ALUMINUM1 

•

0

200

400

600

800

1000

Q3 Q4 Q1

2002

Q2 Q3 Q4 Q1

2003

Q2 Q3 Q4 Q1

2004

Q2

l,000 metric tons

0

20

40

60

80

100

Cents per pound

Imports (Y1) Exports(Y1) Price (Y2)

Figure A-4

Robust prices for primary aluminum in third quarter 2004 reflect supply concerns about partial 

capacity cutbacks and prolonged labor negotiations at several North American smelters

1 1 2

 1 Unwrought aluminum and aluminum alloys.

 2 Quarterly average of the monthly U.S. market price of primary aluminum ingots.

Source: Compiled by USITC staff based on data obtained from the U.S. Geological Survey. 

Prices for both unwrought and mill-product forms of aluminum rose throughout third quarter 2004 due to partial-idling of smelting 

capacity as a result of labor issues. Prolonged labor contract negotiations caused sporadic production disruptions at several North 

American smelters and rolling mills, including facilities of Alcoa in Becancour, Quebec, and of Ormet Corp. in Hannibal, Ohio. In 

South Africa, workers went on strike for 4 weeks during July-August, after failing to reach a wage agreement, at Hulett Aluminum=s 

Pietermaritzburg rolling mill. 

• Alumina prices also increased in response to the damage inflicted by Hurricane Ivan in mid-September on refinery and port 

facilities in the Caribbean Basin. In contrast, downstream aluminum sectors were less affected by the tropical storms that hit the 

U.S. Gulf Coast during third quarter 2004. Rather, aluminum extrusion billet suppliers benefitted from increased demand for 

extruded aluminum to replace damaged building components. 

• The Bonneville Power Administration announced in mid-September a 7.5-percent rate reduction for wholesale electric power as 

a result of cost-cutting and favorable surplus-power sales revenue. However, Alcoa claimed that it was not feasible to restart some 

of its previously idled smelter capacity in the Pacific Northwest because long-term rate cuts and adequate alumina supplies could 

not be assured. 

Table A-4 

Drawdown of London Metal Exchange (LME) inventories and increased prices for primary aluminum

ingots in third quarter 2003 reflect cutback of primary production and sustained robust worldwide 

demand over the past 12 months

 Percentage change

Item 

Q3

2003

Q2

2004

Q3 

2004 

Q3 2004 

from 

 Q3 2003 

Q3 2004

from 

Q2 2004

Primary production (1,000 metric tons) ....................... 668 630 622 -6.9 -1.3

Secondary recovery (1,000 metric tons) ..................... 738 755r 772r 4.6 2.3

Imports (1,000 metric tons) ......................................... 666 864 823 23.6 -4.7

Import penetration (percent)........................................ 33.1 39.9 38.5 1

5.4 1-1.4

Exports (1,000 metric tons)......................................... 60 84 82 36.7 -2.4

Average nominal price (cents/lb)................................. 67.1 82.5 83.8 24.8 1.5

LME inventory level (1,000 metric tons)...................... 1,372 940 681 -50.4 -27.6

 1 Percent-point change. 

Note.BRevised data indicated by Ar.@

Sources: Compiled from data obtained from U.S. Geological Survey and World Bureau of Metal Statistics. 

 

1

Product coverage includes only unwrought aluminum and certain aluminum alloys for improved data comparability. 
DECEMBER/JANUARY 2005 

Industry Trade and Technology Review Key Performance Indicators 

A-6 

FLAT GLASS

0

500

1000

1500

2000

2500

3000

1999 2000 2001 2002 2003 2004

1,000 square meters

0

5

10

15

20

25

30

Million dollars

United States (quantity) All countries (quantity)

United States (value) All countries (value)

Figure A-5

Japanese monthly average imports from U.S. and World increased during first 10 months of 

2004

 1 Data for Jan-July (Latest available data).

Source: Compiled from "World Trade Atlas: Japan" at http://www.globaltradeatlas.com, using official statistics 

provided by the Government of Japan. 

1

Background 

• Although the U.S.-Japanese agreement on Japanese market access for imports of flat glass, which sought to 

increase access and sales of foreign flat glass in Japan, expired on December 31, 1999,1

 the U.S. Government 

continues to engage the Japanese Government in discussions over access to the Japanese market. Most recently, 

in the 2003 Trade Forum discussion held in July 2003 under the U.S.-Japan Partnership for Economic Growth, the 

U.S. Government “highlighted the continuing problems that prevent market entry, including the need for tighter 

enforcement of rules against anticompetitive behavior.”2

 The U.S. Government also urged Japan to modify 

regulations to facilitate use of energy-efficient glass in Japan 

• U.S. and Japanese negotiators have agreed that Japan’s Ministry of Economy, Trade, and Industry (METI), in 

conjunction with the Japan Fair Trade Commission (JFTC), should monitor Japanese flat-glass manufacturers and 

the glass distribution system in Japan to promote competition in the sector.3

 

Current

• As a result of increased Japanese economic growth in 2004, Japanese average monthly demand for imported flat 

glass from all countries increased 20 percent for the first 10 months of 2004, to 3.0 million square meters, compared 

with the same period in 2003. The average monthly value of total Japanese flat glass imports for the first 10 months 

of 2004 increased 49 percent, to $25.4 million, compared with the same period in 2003. In full-year 2003, the 

quantity of average monthly Japanese imports increased 8 percent compared with the same imports in 2002, and 

increased 7 percent in value during the same period. 

• Average monthly Japanese imports from the United States increased by quantity and value during the first 10 

months of 2004 compared with the same period in 2003 (up 68 percent to 481,000 square meters and up 110 

percent to $11.7 million, respectively) due largely to increased demand in Japan for higher-value, architecturalgrade coated and ultra-clear flat glass products from the United States, for use in construction-related applications. 

In full-year 2003, average monthly imports from the United States increased 10 percent in quantity and 16 percent 

in value compared with the same imports for 2002. 

 1

Office of the United States Trade Representative (USTR), The President’s 1999 Annual Report on the Trade 

Agreements Program, p. 227, found at http://www.ustr.gov/reports/tpa/2000index.html retrieved Mar. 3, 2004. 

2

USTR, 2004 Trade Policy Agenda and 2003 Annual Report of the President of the United States on the Trade 

Agreements Program (final draft), 2003, pp. 21-22. 

3

USTR, Fourth Annual Submission by the Government of the United States to the Government of Japan on 

Deregulation and Competition Policy, Oct. 12, 2000, p. 32.
DECEMBER/JANUARY 2005 

Industry Trade and Technology Review Key Performance Indicators 

A-7 

SERVICES

Business 

Education 

Insurance

Finance 

Other

Royalties 

and 

license 

fees

Tourism 

Transportation

-8

-6

-4

-2

0

2

4

6

8

Billion dollars

Third quarter 2003 Fourth quarter 2003 First quarter 2004 Second quarter 2004

 1 Data for telecommunication services are to small to be revealed graphically. 

 2 Includes passenger fares, freight, and port services.

Source: U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current Business, Oct. 2004,

p. 91. 

Figure A-6

Balance on U.S. service trade accounts,1

 by select quarters, 2003-04 2

0

2

4

6

8

10

Q3-2002 Q4-2002 Q1-2003 Q-2-2003 Q-3-2003 Q4-2003 Q1-2004 Q2-2004

Billion dollars

European Union Japan Canada

Figure A-7

Surpluses on cross-border U.S. services transactions with selected partners, by select 

quarters, 2002-041

 1 Private-sector transactions only; military shipments and other public-sector transactions have been 

excluded. 

Source: U.S. Department of Commerce, Bueau of Economic Analysis, Survey of Current Business , Oct. 2004, 

pp. 100-103.
DECEMBER/JANUARY 2005 

Industry Trade and Technology Review Key Performance Indicators 

A-8 

NORTH AMERICAN TRADE HIGHLIGHTS

U.S. trade with its North American partners is highlighted in table A-5. The following is a summary of key developments 

during January-September 2004 compared with the same period of 2003. 

• Continued robust U.S. economic growth (3.9-percent annual rate in the third quarter of 20041) and higher petroleum 

prices contributed to a 13-percent ($36-billion) increase in U.S. imports from its NAFTA partners during 

January-September 2004. By contrast, imports from China, the second-leading supplier of U.S. imports (between 

Canada and Mexico), climbed by 28 percent ($31 billion) and continued to erode the NAFTA partners= share of 

non-petroleum U.S. imports. The NAFTA partners supplied 28 percent of all U.S. imports in January-September 

2004, and China, 13 percent. 

• High petroleum prices (which averaged about $44 per barrel in the third quarter of 2004) were attributed to higher 

demand in China and other newly industrialized countries in Asia; continued expansion in the housing and 

automobile markets in North America, which increased demand for gasoline and heating oil; and uncertainty in the 

supply of crude petroleum from Russia, Nigeria, and Venezuela.2

• The growth rate of television and video monitor imports from China slowed from 76 percent in 2003 to 61 percent 

($561 million) in the first 9 months of 2004 (see figure A-8). Although such imports from China continued to increase 

at a faster rate than imports from Mexico (by 47 percent in 2004 after just 7 percent in 2003), the value of the rise in 

imports from Mexico ($1.6 billion) was nearly 3 times as large as that from China ($561 million).3

0

1000

2000

3000

4000

5000

6000

2003 2004

Year

Million dollars

China Mexico

Figure A-8

U.S. imports for consumption of television receivers and video monitors from China and Mexico, 

Jan-Sept. 2003 and Jan-Sept. 2004

Source: USITC dataweb.

• The pace of U.S. imports of televisions from Mexico accelerated after initiation of an antidumping investigation in 

2003 to determine whether China was selling its color sets with a video display diagonal exceeding 52 centimeters 

at less-than-fair value into the U.S. market and materially injuring the U.S. industry.4

 Coincident with the institution 

 1

 See Haseeb Ahmed, AUnited States GDP-First Take,@ Economy.com, found at 

http://www.dismalscientist.com/economy/releases/gdp/html, retrieved Dec. 17, 2004. 

 2

 Industry Canada, ASpecial Report: Canada=s Oil and Gas Sector,@ Monthly Economic Indicators, Nov. 2004, p. 15. 

 3

 Virtually all of the increase in U.S. imports from China in the first 9 months of 2004 was in video monitors, whereas 

color televisions accounted for most of the increased imports from Mexico in this category. 

 4

 In May 2004, the U.S. International Trade Commission (USITC) determined that the U.S. television industry was 

materially injured by imports from China of certain color television receivers that were sold at less than their fair value. 

See USITC, Certain Television Receivers from China, Investigation No. 731-TA-1034, pub. 3695, May 2004. The U.S. 

International Trade Administration reported on May 27, 2004, that effective June 3, 2004, antidumping duties would be 

assessed on television receivers from China ranging from 5.22 percent to 26.37 percent for individual Chinese exporting 

firms listed in the investigation, and 78.45 percent for all other Chinese firms. The rate applicable to televisions 

produced by the leading supplier, TCL, is 21.25 percent. U.S. Government Printing Office, Federal Register, vol. 69, No. 

107, June 3, 2004, pp. 31347f. 
DECEMBER/JANUARY 2005 

Industry Trade and Technology Review Key Performance Indicators 

A-9 

NORTH AMERICAN TRADE HIGHLIGHTS 

Table A-5 

North American trade, 1999-2003, January-September 2003, and January-September 2004 

 

January-September

Percent

change

Item 1999 2000 2001 2002 2003 2003 2004 2003/04

 ——————————Value (million dollars)——————————

U.S.-Mexico trade: 

 Total imports from Mexico.....................109,018 134,734 130,509 134,121 137,199 101,321 114,268 13

 U.S. imports under NAFTA: 

 Total value........................................ 71,317 83,995 81,162 84,747 87,750 65,003 70,554 9

 Percent of total imports..................... 65 62 62 63 64 64 62 1

-2

 Total exports to Mexico........................ 81,381 100,442 90,537 86,076 83,108 61,013 68,263 12

 U.S. merchandise trade balance 

 With Mexico2 .................................. -27,637 -34,292 -39,971 -48,045 -54,091 -40,309 -46,005 -14

 

U.S. -Canada trade: 

 Total imports from Canada...................198,242 229,060 216,836 210,518 224,016 166,524 189,484 14

 U.S. imports under NAFTA: 

 Total value........................................115,715 123,052 113,179 115,807 119,416 88,128 97,444 11

 Percent of total imports..................... 58 54 52 55 53 53 51 1

-2

 Total exports to Canada.......................145,731 155,601 144,621 142,543 148,749 110,759 121,219 9

 U.S. merchandise trade balance 

 with Canada3 .................................. -52,511 -73,459 -72,215 -67,975 -75,267 -55,766 -68,265 -22

1

 Percentage-point change. 

2

 The negative (-) symbol indicates a loss or trade deficit. The $54.1-billion deficit in U.S. merchandise trade with 

Mexico in 2003 was partially offset by a $4.7-billion U.S. surplus in bilateral services trade, not seasonally adjusted. 

During the first 3 quarters of 2004, the U.S. surplus in bilateral services trade totaled $4.1 billion, not seasonally 

adjusted. 

 3 The $75.3-billion deficit in U.S. merchandise trade with Canada in 2003 was partially offset by a $7.6-billion U.S. 

surplus in bilateral services trade. During the first 3 quarters of 2004, the U.S. surplus in bilateral services trade totaled

approximately $6.7 billion, not seasonally adjusted. 

Source: Compiled by USITC staff from official statistics of the U.S. Department of Commerce. Statistics on U.S. 

services trade with Canada and Mexico are based on preliminary data provided in U.S. Department of Commerce, 

Bureau of Economic Analysis, U.S. International Transactions Accounts Data, table 11, found at 

http://www.BEA.DOC.GOV/BEA/International/BP_web/list.CFM?ANON=92. 

of the investigation, TCL, the largest television manufacturer in China (and the world) announced it would build a 

plant in Mexico to supply the North American market. 

• U.S. imports of passenger vehicles (primarily full-sized sedans) from Canada exhibited strong growth during the 

period, rising by $4.3 billion (19 percent) and reflecting sustained incentives and low financing rates. Imports of 

certain motor vehicle parts and internal combustion engines rose by $1.0 billion (11 percent). 

• In contrast to Canada, U.S. imports of passenger vehicles from Mexico fell by $713 million (8 percent) in the first 9 

months of 2004, largely attributable to waning popularity of smaller-sized passenger models, but were offset by a 

$1.1-billion (21-percent) increase in imports of certain motor vehicle parts and internal combustion engines. In 

addition, imports of trucks used in tractor-trailer rigs more than doubled, climbing by $327 million as Freightliner, a 

subsidiary of Daimler Chrysler, expanded Mexico=s capacity in late 2003. 

• Intermediate goods used in manufacturing industries dominate U.S. exports to its NAFTA partners, which grew by 

11 percent ($18 billion) in January-September 2004. Although U.S. exports to China rose by 36 percent ($6 billion) 

in the first 3 quarters of 2004, the NAFTA partners continued to take the largest shares of U.S. exports, accounting 

for 35 percent compared with just 4 percent for China. 
DECEMBER/JANUARY 2005 

Industry Trade and Technology Review Key Performance Indicators 

A-10 

NORTH AMERICAN TRADE HIGHLIGHTS 

• Canada=s GDP grew by 3.2 percent in the third quarter of 2004,5 reflecting increased consumer and government 

spending and business investment. Canada=s economy also continued to benefit from record-high oil and 

natural-gas prices boosted exports. 

• U.S. exports of engines, seats, and other parts to auto assembly plants in Canada grew by $1.6 billion (12 

percent) in the first 9 months of 2004, and exports of trucks, tractors, and trailers to service the transport 

industry in Canada rose by $1.1 billion (18 percent). These categories accounted for 26 percent of the 

total $10.5 billion expansion in U.S. exports to Canada in January-September 2004. 

• Mexico=s GDP grew by 4.4 percent in the third quarter of 2004, its fastest quarterly growth rate in 4 years.6 GDP 

growth for the year was forecast at 3.8 percent.7

 The expansion in the Mexican economy is attributed to continued 

higher-than-expected prices for petroleum and strong retail sales.8

 After significant gains in the first 2 quarters, 

manufacturing contracted by 3.4 percent in the third quarter. Increases in automotive electronics, steel, and furniture 

were offset by production declines in electrical machinery and equipment, cigarettes, and metallic structures.9

 

• Expanding availability of consumer credit contributed to increased auto sales in Mexico in 2004 as U.S. 

exports of passenger vehicles and trucks to Mexico in January-September 2004 rose by $478 million (21 

percent) and certain motor vehicle parts and internal combustion engines, by $603 million (12 percent). 

• The purchase of 6 Boeing passenger jets by Mexican airlines led to a $336-million (290-percent) boost in 

U.S. aircraft exports during the period. 

• To supply expanded production at television assembly plants in Mexico, U.S. exports of television parts 

rose by $205 million (46 percent). 

 5

 Terry Weber, AEconomy Expands,@ Globe and Mail, Nov. 30, 2004. 

 6

 Emerging Markets Online, AReal GDP Grew Around 4 Percent in Quarter 3, 2004,@ Business Monitor International, 

Jan. 6, 2005. 

 7 AQuarterly Economic Forecast,@ Mexico Watch, Jan. 1, 2005, p. 4. 

 8

 The increased availability of credit has been a boost to retail sales specifically and the Mexican economy in 

general. The expansion in retail sales was limited to companies such as furniture stores, automobile dealerships, 

supermarkets, and department stores that accept credit cards or provide in-store credit. By contrast, there was a decline 

in sales in Jan.-Sept. 2004 by categories of retailers that do not accept credit cards. AEconomic Summary: Q3 Data 

Points to Slowdown,@ Mexico Watch, Dec. 1, 2004, p. 1. 

 9 AEconomic Summary: Q3 Data Points to Slowdown,@ Mexico Watch, Dec. 1, 2004, p. 3. 
DECEMBER/JANUARY 2005

Industry Trade and Technology Review Production Sharing Tables (Mexican Data)

B-1

APPENDIX B

SELECTED STATISTICAL TABLES (B-1

TO B-7) FOR TRADE UNDER MEXICO’S

PRODUCTION-SHARING PROVISIONS

(TEMPORARY IMPORT PROGRAMS)
DECEMBER/JANUARY 2005

Production Sharing Tables (Mexican Data) Industry Trade and Technology Review

B-2

Table B-1

Mexico's exports to the United States1

 under Temporary Import Programs (TIPs) (Maquiladora and

Program for Temporary Importation to Manufacture Exported Products (PITEX) by leading product

sectors, 2000-03

Exports under TIPs

Total

exports

 to the

 U.S.

in 2003

TIP

 share

of total

exports

to the

Products sectors (HS range) 2000 2001 2002 2003 U.S.

———————— Million dollars ——————— Percent

Motor Vehicles2 . . . . . . . . . . . . . . . . . . . . . . . . . . 19,344 19,427 18,761 17,730 17,752 100

Certain motor-vehicle parts3 . . . . . . . . . . . . . . . . 11,933 11,795 12,832 13,229 14,194 93

Apparel and other textile articles (61-63,65) . . . . 8,648 7,962 7,888 7,514 7,776 97

Color television receivers and parts (8528.12,

8529.90, 8540.11, 8540.91) . . . . . . . . . . . . . . 7,859 7,756 7,977 7,422 7,429 100

Telecommunications equipment

(8525, 8527, and 8529 (part)) . . . . . . . . . . . . 7,749 7,728 6,521 5,455 5,507 99

Computers4

 (8471) . . . . . . . . . . . . . . . . . . . . . . . 7,186 8,685 8,294 9,254 9,337 99

Electrical circuit apparatus (8534, 8535, 8536,

8537, 8538) . . . . . . . . . . . . . . . . . . . . . . . . . . 4,898 4,235 4,861 4,778 4,853 98

Measuring testing, and controlling instruments

(9024, 9025, 9027, 9028, 9029, 9030, 9031,

9032, 9033 (part)) . . . . . . . . . . . . . . . . . . . . . 1,588 1,833 1,871 1,690 1,744 97

Major household appliances (8418, 8422.11,

8422.19, 8450, 8451) . . . . . . . . . . . . . . . . . . . 454 769 916 715 848 84

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,135 51,096 50,014 50,089 76,895 65

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126,794 121,286 119,935 117,877 146,335 81

 1

 Official Mexican statistics on Mexico’s exports to the United States in 2003 were valued 7-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

 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.

 3

 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. 4

 Includes related computer equipment, such as monitors and other display units, keyboards, printers, magnetic and

optical readers, and disk drives and other storage units.

Source: Compiled from “World Trade Atlas: Mexico Edition, December 2003,” which used data provided by INEGI, the

statistical agency of the Government of Mexico.
DECEMBER/JANUARY 2005

Industry Trade and Technology Review Production Sharing Tables (Mexican Data)

B-3

Table B-2

Mexico’s imports (Maquiladora Program and Program for Temporary Importation to Manufacture

Exported Products (PITEX), and other) from the United States in 2003

(Million U.S. dollars)

Mexico’s imports from the

 United States

U.S.

exports to

Mexico:

HS no. HS categories general

Maquiladora PITEX Other Total

01 Live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 84 84 71

02 Meat and edible offal . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 35 1,544 1,580 1,192

03 Fish and seafood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 0 32 34 47

04 Dairy produce; eggs; honey; edible animal products . . . 1 2 303 305 226

05 Other products of animal origin . . . . . . . . . . . . . . . . . . . . 2 0 99 101 253

06 Live trees & plants; cut flowers & ornamental foliage . . . 1 0 31 33 22

07 Edible vegetables and certain roots and tubers . . . . . . . 1 2 154 158 118

08 Edible fruit and nuts; peel of citrus fruit or melons . . . . . 14 3 342 359 257

09 Coffee, tea, mate and spices . . . . . . . . . . . . . . . . . . . . . 0 0 15 16 11

10 Cereals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 1 1,697 1,697 1,587

11 Milling products; malt; starches; inulin; wheat gluten . . . 13 4 388 406 369

12 Oil seeds & oleaginous fruits; misc. grains, seeds, & 

fruits; industrial or medicinal plants; straw & fodder . . . 0 0 1,264 1,264 1,211

13 Lac; gums; resins & other vegetable saps & extracts . . . 0 0 35 36 31

14 Vegetable plaiting materials & veg. products, nesoi .... 0 0 1 1 4

15 Animal or vegetable fats, oils, & waxes; edible fats . . . . 9 4 402 415 377

16 Edible preparations of meat, fish, or seafood . . . . . . . . . 0 0 124 125 93

17 Sugars and sugar confectionery . . . . . . . . . . . . . . . . . . . 34 4 75 112 79

18 Cocoa and cocoa preparations . . . . . . . . . . . . . . . . . . . . 2 1 117 121 99

19 Preparations of cereals, flour, starch, or milk . . . . . . . . . 0 0 243 243 157

20 Preparations of vegetables, fruit, nuts, parts of plants . . 3 0 253 256 161

21 Miscellaneous edible preparations . . . . . . . . . . . . . . . . . 10 4 610 624 504

22 Beverages, spirits, and vinegar . . . . . . . . . . . . . . . . . . . . 0 0 159 159 145

23 Residues, waste of the food industries; animal feed . . . . 0 0 501 501 376

24 Tobacco and manufactured tobacco substitutes ....... 1 0 5 6 7

25 Salt; sulfur; earths & stone; plaster, lime, and cement . . 34 12 126 173 98

26 Ores, slag and ash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 77 16 93 83

27 Mineral fuels, oils, waxes; bituminous substances . . . . . 94 489 4,008 4,592 2,830

28 Inorganic chemicals; compounds of precious metals,

 rare-earth metals, or radioactive elements

or isotopes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 123 346 509 388

29 Organic chemicals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 687 1,578 2,311 2,348

30 Pharmaceutical products . . . . . . . . . . . . . . . . . . . . . . . . 68 5 354 426 413

31 Fertilizers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 3 249 252 225

32 Tanning or dyeing extracts; tannins; dyes, pigments, 

other coloring matter; paints & varnishes; 

putty; inks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 46 426 711 505

33 Essential oils; perfume; cosmetic/ toilet preparations . . . 13 17 364 394 318

34 Soap; lubricating products; waxes; polishing/scouring 

products; candles; modeling pastes; dental plaster . . . 59 12 266 337 220

35 Albumoidal substances; starches; glues; enzymes . . . . . 68 28 150 247 201

36 Explosives; fireworks; matches; combustible prep . . . . . 106 0 24 130 135

37 Photographic or cinematographic goods . . . . . . . . . . . . . 32 228 218 477 455

38 Miscellaneous chemical products . . . . . . . . . . . . . . . . . . 319 147 812 1,278 790

39 Plastics and articles thereof . . . . . . . . . . . . . . . . . . . . . . 5,187 1,068 3,303 9,558 6,694

40 Rubber and articles thereof . . . . . . . . . . . . . . . . . . . . . . . 561 386 778 1,725 1,062

41 Raw hides and skins (other than furskins) and leather . . 229 176 163 568 342
DECEMBER/JANUARY 2005

Production Sharing Tables (Mexican Data) Industry Trade and Technology Review

B-4

Table B-2––Continued

Mexico’s imports (Maquiladora Program and Program for Temporary Importation to Manufacture

Exported Products (PITEX), and other) from the United States in 2003

(Million U.S. dollars)

Mexico’s imports from the

 United States

U.S.

exports to

Mexico:

HS no. HS categories general

Maquiladora PITEX Other Total

42 Leather articles; saddlery; travel goods; handbags . . . . . 179 24 20 223 63

43 Furskins and artificial fur; manufactures thereof ....... 1 0 1 2 2

44 Wood and articles of wood; wood charcoal . . . . . . . . . . . 249 46 194 489 394

45 Cork and articles of cork ......................... 2 0 1 4 1

46 Manufactures of straw; basketware and wickerwork .... 0 0 1 1 5

47 Wood pulp; waste and scrap paper and paperboard . . . 9 4 485 498 447

48 Paper & paperboard; articles of pulp, paper, paperbd . . 1,154 353 1,156 2,663 2,078

49 Printed products, including books, newspapers, plans . . 181 17 206 404 290

50 Silk, including yarns and woven fabrics thereof ....... 0 0 1 1 2

51 Wool & animal hair, yarns & woven fabrics thereof . . . . . 15 13 2 30 18

52 Cotton, including yarns and woven fabrics thereof . . . . . 529 104 602 1,235 1,058

53 Other vegetable textile fibers; yarns and fabrics of such

 vegetable fibers and paper ..................... 0 0 1 2 1

54 Manmade filaments, including yarns & woven fabrics . . . 512 113 198 823 507

55 Manmade staple fibers, incl. yarns & woven fabrics . . . . 259 66 158 484 312

56 Wadding, felt and nonwovens; special yarns; twine, 

cordage, ropes and cables and articles thereof . . . . . . 200 22 114 335 290

57 Carpets and other textile floor coverings . . . . . . . . . . . . . 63 48 36 148 97

58 Special woven fabrics; tufted textile fabrics; ace; 

tapestries; trimmings; embroidery . . . . . . . . . . . . . . . . 469 38 20 527 241

59 Impregnated, coated, covered or laminated textile

fabrics; textile articles suitable for industrial use . . . . . 480 38 80 598 591

60 Knitted or crocheted fabrics . . . . . . . . . . . . . . . . . . . . . . 332 102 39 473 351

61 Knitted or crocheted apparel . . . . . . . . . . . . . . . . . . . . . . 892 136 118 1,146 877

62 Woven apparel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523 85 111 718 593

63 Other textile articles; needlecraft; used clothing . . . . . . . 92 4 53 150 80

64 Footwear and parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 2 13 45 90

65 Headgear and parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 7 10 8

66 Umbrellas, walking sticks, whips, and riding crops ..... 0 0 1 1 1

67 Articles of feathers and down; artificial flowers; articles 

of human hair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 2 2 4

68 Articles of stone, plaster, cement, asbestos, or mica . . . 76 11 119 206 139

69 Ceramic products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 36 58 125 92

70 Glass and glassware . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372 144 170 687 502

71 Natural or cultured pearls; precious or semiprecious 

stones; precious-metal and imitation jewelry; coin . . . . 162 9 285 456 410

72 Iron and steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517 383 788 1,688 1,137

73 Articles of iron or steel . . . . . . . . . . . . . . . . . . . . . . . . . . 1,933 457 670 3,060 1,630

74 Copper and articles thereof . . . . . . . . . . . . . . . . . . . . . . . 647 102 147 896 572

75 Nickel and articles thereof . . . . . . . . . . . . . . . . . . . . . . . . 19 30 10 60 74

76 Aluminum and articles thereof . . . . . . . . . . . . . . . . . . . . 835 141 576 1,552 981

78 Lead and articles thereof . . . . . . . . . . . . . . . . . . . . . . . . 8 2 15 24 25

79 Zinc and articles thereof . . . . . . . . . . . . . . . . . . . . . . . . . 28 0 6 35 31

80 Tin and articles thereof . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3 11 23 13

81 Other articles of base metals; cermets; 

articles thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221 9 13 244 40
DECEMBER/JANUARY 2005

Industry Trade and Technology Review Production Sharing Tables (Mexican Data)

B-5

Table B-2––Continued

Mexico’s imports (Maquiladora Program and Program for Temporary Importation to Manufacture

Exported Products (PITEX), and other) from the United States in 2003

(Million U.S. dollars)

Mexico’s imports from the

 United States

U.S.

exports to

Mexico:

HS no. HS categories general

Maquiladora PITEX Other Total

82 Tools, implements, cutlery, spoons and forks, of base 

metal; parts thereof of base metal . . . . . . . . . . . . . . . . 58 14 346 417 275

83 Miscellaneous articles of base metal . . . . . . . . . . . . . . . 532 274 190 995 650

84 Machinery and mechanical appliances, including 

nuclear reactors, boilers, computer hardware, & parts . . 2,987 4,040 7,492 14,519 11,223

85 Electrical machinery & equipment; sound recorders & 

reproducers; television equip.; parts & accessories . . . 15,553 2,052 3,625 21,230 14,903

86 Railway locomotives, rolling stock, track fixtures and 

parts; traffic signaling equipment . . . . . . . . . . . . . . . . . 8 105 103 216 164

87 Other vehicles, incl. automobiles, trucks, buses, parts . . 1,211 4,387 4,450 10,048 9,010

88 Aircraft, spacecraft, and parts thereof . . . . . . . . . . . . . . . 5 10 155 169 601

89 Ships, boats and floating structures . . . . . . . . . . . . . . . . 0 1 35 36 81

90 Optical, photographic, cinematographic, measuring,

checking, precision, or medical instruments, 

& parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,489 582 1,267 3,338 2,855

91 Clocks and watches and parts thereof . . . . . . . . . . . . . . 111 0 18 129 23

92 Musical instruments; parts and accessories thereof . . . . 12 0 6 18 5

93 Arms and ammunition; parts and accessories thereof . . 0 0 6 6 4

94 Furniture; bedding, mattresses, & cushions; lamps & 

lighting fittings; illuminated signs; prefab buildings . . . 225 338 391 953 845

95 Toys, games & sports equip.; parts & accessories . . . . . 56 22 131 209 163

96 Miscellaneous manufactured articles . . . . . . . . . . . . . . . 195 17 101 313 201

97 Works of art, collectors’ pieces and antiques . . . . . . . . . 0 0 3 3 17

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,669 17,951 46,463 105,083 79,571

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 50 116 280 3,541

Grand total . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,782 18,002 46,579 105,363 83,108

Source: Compiled from “World Trade Atlas: Mexico Edition, December 2003,” which used data provided by INEGI,

the statistical agency of the Government of Mexico.
DECEMBER/JANUARY 2005

Production Sharing Tables (Mexican Data) Industry Trade and Technology Review

B-6

Table B-3

Mexico’s imports (Maquiladora Program and Program for Temporary Importation to Manufacture

Exported Products (PITEX), and other) from all countries except the United States in 2003

(Million U.S. dollars)

HS no. HS categories

Maquiladora PITEX Other Total

1 Live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 25 25

2 Meat and edible offal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 10 300 310

3 Fish and seafood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0 124 125

4 Dairy produce; eggs; honey; edible animal products . . . . . . . . . 17 23 387 426

5 Other products of animal origin . . . . . . . . . . . . . . . . . . . . . . . . . . 0 1 12 13

6 Live trees & plants; cut flowers & ornamental foliage . . . . . . . . . 1 0 24 24

7 Edible vegetables and certain roots and tubers . . . . . . . . . . . . . 0 3 42 46

8 Edible fruit and nuts; peel of citrus fruit or melons . . . . . . . . . . . 0 7 157 164

9 Coffee, tea, mate and spices . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 5 58 63

10 Cereals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 173 173

11 Milling products; malt; starches; inulin; wheat gluten . . . . . . . . . 1 0 56 57

12 Oil seeds & oleaginous fruits; misc. grains, seeds, & fruits; 

industrial or medicinal plants; straw & fodder . . . . . . . . . . . . . . 0 1 415 416

13 Lac; gums; resins & other vegetable saps & extracts . . . . . . . . 0 1 35 36

14 Vegetable plaiting materials & veg. products, nesoi . . . . . . . . . . 0 1 14 15

15 Animal or vegetable fats, oils, & waxes; edible fats . . . . . . . . . . 0 2 205 208

16 Edible preparations of meat, fish, or seafood . . . . . . . . . . . . . . . 0 0 39 39

17 Sugars and sugar confectionery . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 65 67

18 Cocoa and cocoa preparations . . . . . . . . . . . . . . . . . . . . . . . . . . 0 2 98 101

19 Preparations of cereals, flour, starch, or milk . . . . . . . . . . . . . . . 0 0 194 194

20 Preparations of vegetables, fruit, nuts, parts of plants . . . . . . . . 1 0 125 127

21 Miscellaneous edible preparations . . . . . . . . . . . . . . . . . . . . . . . 0 8 89 97

22 Beverages, spirits, and vinegar . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 226 226

23 Residues, waste of the food industries; animal feed . . . . . . . . . . 0 0 38 38

24 Tobacco and manufactured tobacco substitutes . . . . . . . . . . . . . 0 2 61 64

25 Salt; sulfur; earths & stone; plaster, lime, and cement . . . . . . . . 3 29 72 104

26 Ores, slag and ash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 341 34 375

27 Mineral fuels, oils, waxes; bituminous substances . . . . . . . . . . . 4 119 974 1,096

28 Inorganic chemicals; compounds of precious metals, rare-earth 

metals, or radioactive elements or isotopes . . . . . . . . . . . . . . . 28 33 121 182

29 Organic chemicals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 284 1,653 1,943

30 Pharmaceutical products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 17 1,334 1,352

31 Fertilizers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 4 281 285

32 Tanning or dyeing extracts; tannins; dyes, pigments, other

 coloring matter; paints & varnishes; putty; inks . . . . . . . . . . . . 68 21 271 361

33 Essential oils; perfume; cosmetic/ toilet preparations . . . . . . . . . 2 3 548 553

34 Soap; lubricating products; waxes; polishing/scouring products;

 candles; modeling pastes; dental plaster . . . . . . . . . . . . . . . . . 3 6 105 114

35 Albumoidal substances; starches; glues; enzymes . . . . . . . . . . . 9 3 122 133

36 Explosives; fireworks; matches; combustible prep . . . . . . . . . . . 8 7 6 21

37 Photographic or cinematographic goods . . . . . . . . . . . . . . . . . . . 28 41 96 165

38 Miscellaneous chemical products . . . . . . . . . . . . . . . . . . . . . . . . 18 41 445 504

39 Plastics and articles thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . 666 276 1,076 2,018

40 Rubber and articles thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 102 612 787

41 Raw hides and skins (other than furskins) and leather . . . . . . . . 179 38 63 279

42 Leather articles; saddlery; travel goods; handbags . . . . . . . . . . . 21 11 202 233
DECEMBER/JANUARY 2005

Industry Trade and Technology Review Production Sharing Tables (Mexican Data)

B-7

Table B–3––Continued

Mexico’s imports (Maquiladora Program and Program for Temporary Importation to Manufacture

Exported Products (PITEX), and other) from all countries except the United States in 2003

(Million U.S. dollars)

HS no. HS categories

Maquiladora PITEX Other Total

43 Furskins and artificial fur; manufactures thereof ............. 0 0 2 2

44 Wood and articles of wood; wood charcoal . . . . . . . . . . . . . . . . . 39 43 419 501

45 Cork and articles of cork ............................... 1 1 5 8

46 Manufactures of straw; basketware and wickerwork .......... 0 0 4 4

47 Wood pulp; waste and scrap paper and paperboard . . . . . . . . . 0 0 94 94

48 Paper & paperboard; articles of pulp, paper, paperbd . . . . . . . . 113 13 548 675

49 Printed products, including books, newspapers, plans . . . . . . . . 42 4 332 379

50 Silk, including yarns and woven fabrics thereof ............. 0 2 6 8

51 Wool & animal hair, yarns & woven fabrics thereof . . . . . . . . . . . 3 44 47 94

52 Cotton, including yarns and woven fabrics thereof . . . . . . . . . . . 109 86 94 290

53 Other vegetable textile fibers; yarns and fabrics of such 

vegetable fibers and paper . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 5 9 15

54 Manmade filaments, including yarns & woven fabrics . . . . . . . . . 41 133 133 307

55 Manmade staple fibers, incl. yarns & woven fabrics . . . . . . . . . . 36 68 96 201

56 Wadding, felt and nonwovens; special yarns; twine, cordage, 

ropes and cables and articles thereof . . . . . . . . . . . . . . . . . . . 6 7 50 62

57 Carpets and other textile floor coverings . . . . . . . . . . . . . . . . . . . 0 3 18 21

58 Special woven fabrics; tufted textile fabrics; ace; tapestries; 

trimmings; embroidery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 17 39 86

59 Impregnated, coated, covered or laminated textile fabrics; 

textile articles suitable for industrial use . . . . . . . . . . . . . . . . . 18 16 61 95

60 Knitted or crocheted fabrics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 34 71 148

61 Knitted or crocheted apparel . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 18 399 443

62 Woven apparel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 28 519 582

63 Other textile articles; needlecraft; used clothing . . . . . . . . . . . . . 9 2 50 61

64 Footwear and parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 1 335 355

65 Headgear and parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 1 31 33

66 Umbrellas, walking sticks, whips, and riding crops . . . . . . . . . . . 0 0 12 12

67 Articles of feathers and down; artificial flowers; articles of 

human hair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0 23 24

68 Articles of stone, plaster, cement, asbestos, or mica . . . . . . . . . 8 9 80 97

69 Ceramic products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 32 196 233

70 Glass and glassware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 29 169 403

71 Natural or cultured pearls; precious or semiprecious stones; 

precious-metal and imitation jewelry; coin . . . . . . . . . . . . . . . . 91 89 108 289

72 Iron and steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 666 977 1,716

73 Articles of iron or steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296 136 565 997

74 Copper and articles thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 32 248 331

75 Nickel and articles thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 20 30

76 Aluminum and articles thereof . . . . . . . . . . . . . . . . . . . . . . . . . . 58 163 407 628

78 Lead and articles thereof .............................. 2 0 3 6

79 Zinc and articles thereof ............................... 2 0 4 6

80 Tin and articles thereof ................................ 3 1 4 8

81 Other articles of base metals; cermets; articles thereof . . . . . . . 5 3 12 20

82 Tools, implements, cutlery, spoons and forks, of base metal; 

parts thereof of base metal . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 9 327 339

83 Miscellaneous articles of base metal . . . . . . . . . . . . . . . . . . . . . 71 64 200 335
DECEMBER/JANUARY 2005

Production Sharing Tables (Mexican Data) Industry Trade and Technology Review

B-8

Table B-3––Continued

Mexico’s imports (Maquiladora Program and Program for Temporary Importation to Manufacture

Exported Products (PITEX), and other) from all countries except the United States in 2003

(Million U.S. dollars)

HS no. HS categories

Maquiladora PITEX Other Total

84 Machinery and mechanical appliances, including nuclear 

reactors, boilers, computer hardware, & parts . . . . . . . . . . . . . 5,836 1,554 7,260 14,650

85 Electrical machinery & equipment; sound recorders & 

reproducers; television equip.; parts & accessories . . . . . . . . . 8,918 2,133 4,909 15,959

86 Railway locomotives, rolling stock, track fixtures and parts; 

traffic signaling equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 14 12 27

87 Other vehicles, incl. automobiles, trucks, buses, parts . . . . . . . . 99 1,121 5,699 6,918

88 Aircraft, spacecraft, and parts thereof . . . . . . . . . . . . . . . . . . . . . 0 1 83 84

89 Ships, boats and floating structures . . . . . . . . . . . . . . . . . . . . . . 0 0 15 16

90 Optical, photographic, cinematographic, measuring, checking, 

precision, or medical instruments, & parts . . . . . . . . . . . . . . . . . 425 220 1,154 1,799

91 Clocks and watches and parts thereof . . . . . . . . . . . . . . . . . . . . 6 3 158 167

92 Musical instruments; parts and accessories 

thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 0 34 36

93 Arms and ammunition; parts and accessories thereof . . . . . . . . 0 0 20 20

94 Furniture; bedding, mattresses, & cushions; lamps & lighting 

fittings; illuminated signs; prefab buildings . . . . . . . . . . . . . . . . 71 24 427 521

95 Toys, games & sports equip.; parts & accessories . . . . . . . . . . . 32 20 511 563

96 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . . . . 40 7 171 217

97 Works of art, collectors’ pieces and antiques ............... 0 0 6 6

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,019 8,305 38,147 64,472

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369 249 378 996

Grand total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,389 8,554 38,525 65,468

Source: Compiled from “World Trade Atlas: Mexico Edition, December 2003,” which used data provided by INEGI,

the statistical agency of the Government of Mexico.
DECEMBER/JANUARY 2005

Industry Trade and Technology Review Production Sharing Tables (Mexican Data)

B-9

Table B-4

Total imports into Mexico under Temporary Import Programs (Maquiladora and Program for

Temporary Importation to Manufacture Exported Products), by leading sources, 2000-03

Source 2000 2001 2002 2003

 Percentage of

total in 2003

–––––––––––––––––– Million dollars –––––––––––––––

United States . . . . . . . . . . . . . . . . . . 78,933 65,511 60,854 58,784 69 

China . . . . . . . . . . . . . . . . . . . . . . . . 1,085 1,743 3,192 5,644 7 

Japan . . . . . . . . . . . . . . . . . . . . . . . . 3,581 5,214 6,065 4,624 5 

Korea, South . . . . . . . . . . . . . . . . . . . 2,671 2,320 2,464 2,723 3 

Malaysia . . . . . . . . . . . . . . . . . . . . . . 950 1,559 1,546 2,225 3 

Taiwan . . . . . . . . . . . . . . . . . . . . . . . 1,116 2,069 3,282 1,525 2 

Singapore ..................... 341 812 1,161 942 1 

Thailand . . . . . . . . . . . . . . . . . . . . . . 344 416 593 737 1 

Philippines . . . . . . . . . . . . . . . . . . . . 523 731 815 667 1 

Malta . . . . . . . . . . . . . . . . . . . . . . . . . 22 146 154 293 (1

) 

All other . . . . . . . . . . . . . . . . . . . . . . 8,114 7,368 7,288 7,401 9 

Total . . . . . . . . . . . . . . . . . . . . . . . 97,679 87,889 87,414 85,563 100 

 1

 Less than 0.5 percent.

Source: Compiled from “World Trade Atlas: Mexico Edition, December 2003,” which used data provided by INEGI,

the statistical agency of the Government of Mexico.
DECEMBER/JANUARY 2005

Production Sharing Tables (Mexican Data) Industry Trade and Technology Review

B-10

Table B-5

Mexico’s exports (Maquiladora Program and Program for Temporary Importation to Manufacture

Exported Products (PITEX), and other) to the United States in 2003

(Million U.S. dollars)

Mexico’s exports to the

 United States U.S. imports 

from Mexico:

HS no. HS categories general

Maquiladora PITEX Other Total

01 Live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 475 475 472

02 Meat and edible offal . . . . . . . . . . . . . . . . . . . . . . . . . . 0 56 107 164 27

03 Fish and seafood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 27 434 471 368

04 Dairy produce; eggs; honey; edible animal products . . 0 11 23 33 43

05 Other products of animal origin . . . . . . . . . . . . . . . . . . . 1 2 2 5 20

06 Live trees & plants; cut flowers & ornamental foliage . . 0 6 28 34 37

07 Edible vegetables and certain roots and tubers . . . . . . 44 1,374 1,098 2,516 2,119

08 Edible fruit and nuts; peel of citrus fruit or melons . . . . 0 367 562 930 907

09 Coffee, tea, mate and spices . . . . . . . . . . . . . . . . . . . . 0 21 97 118 149

10 Cereals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 35 35 8

11 Milling products; malt; starches; inulin; wheat gluten . . 0 1 9 11 12

12 Oil seeds & oleaginous fruits; misc. grains, seeds, & 

fruits; industrial or medicinal plants; straw & fodder . . 0 5 43 48 25

13 Lac; gums; resins & other vegetable saps & extracts . . 0 14 13 27 35

14 Vegetable plaiting materials & veg. products, nesoi . . . 0 0 13 13 21

15 Animal or vegetable fats, oils, & waxes; edible fats . . . 2 0 45 47 27

16 Edible preparations of meat, fish, or seafood . . . . . . . . 11 14 55 81 42

17 Sugars and sugar confectionery . . . . . . . . . . . . . . . . . . 98 76 67 241 247

18 Cocoa and cocoa preparations . . . . . . . . . . . . . . . . . . . 28 34 28 90 78

19 Preparations of cereals, flour, starch, or milk . . . . . . . . 8 51 202 261 240

20 Preparations of vegetables, fruit, nuts, parts of plants . 75 55 173 302 313

21 Miscellaneous edible preparations . . . . . . . . . . . . . . . . 18 38 213 270 211

22 Beverages, spirits, and vinegar . . . . . . . . . . . . . . . . . . . 75 1,073 526 1,674 1,717

23 Residues, waste of the food industries; animal feed . . . 0 0 20 20 14

24 Tobacco and manufactured tobacco substitutes . . . . . . 5 0 26 31 23

25 Salt; sulfur; earths & stone; plaster, lime, and cement . 0 8 215 223 172

26 Ores, slag and ash . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 21 37 59 44

27 Mineral fuels, oils, waxes; bituminous substances . . . . 20 34 14,472 14,527 14,772

28 Inorganic chemicals; compounds of precious metals, 

rare-earth metals, or radioactive elements

or isotopes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 94 107 259 246

29 Organic chemicals . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 128 210 347 415

30 Pharmaceutical products . . . . . . . . . . . . . . . . . . . . . . . 99 34 50 184 242

31 Fertilizers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 6 6 12

32 Tanning or dyeing extracts; tannins; dyes, pigments, 

other coloring matter; paints & varnishes; 

putty; inks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 30 93 157 130

33 Essential oils; perfume; cosmetic/ toilet preparations . . 25 36 137 199 127

34 Soap; lubricating products; waxes; polishing/scouring

products; candles; modeling pastes; dental plaster . . 22 30 262 314 210

35 Albumoidal substances; starches; glues; enzymes . . . . 13 3 22 38 17

36 Explosives; fireworks; matches; combustible prep . . . . 22 0 11 33 23

37 Photographic or cinematographic goods . . . . . . . . . . . . 26 127 4 157 110

38 Miscellaneous chemical products . . . . . . . . . . . . . . . . . 72 82 109 263 198

39 Plastics and articles thereof . . . . . . . . . . . . . . . . . . . . . 1,528 543 535 2,607 1,465

40 Rubber and articles thereof . . . . . . . . . . . . . . . . . . . . . . 208 204 268 679 690

41 Raw hides and skins (other than furskins) 

and leather . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 31 32 191 67
DECEMBER/JANUARY 2005

Industry Trade and Technology Review Production Sharing Tables (Mexican Data)

B-11

Table B-5––Continued

Mexico’s exports (Maquiladora Program and Program for Temporary Importation to Manufacture

Exported Products (PITEX), and other) to the United States in 2003

(Million U.S. dollars)

Mexico’s exports to the

 United States U.S. imports 

from Mexico:

HS no. HS categories general

Maquiladora PITEX Other Total

42 Leather articles; saddlery; travel goods; handbags . . . . 105 55 26 186 129

43 Furskins and artificial fur; manufactures thereof ...... 0 0 0 1 0

44 Wood and articles of wood; wood charcoal . . . . . . . . . . 184 70 68 322 265

45 Cork and articles of cork ........................ 7 0 0 7 0

46 Manufactures of straw; basketware and wickerwork . . . 1 0 2 3 3

47 Wood pulp; waste and scrap paper and paperboard . . 21 0 3 25 5

48 Paper & paperboard; articles of pulp, paper, paperbd . 434 64 310 809 631

49 Printed products, including books, newspapers, 

plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 12 45 213 171

50 Silk, including yarns and woven fabrics thereof ...... 0 0 0 0 0

51 Wool & animal hair, yarns & woven fabrics thereof . . . . 13 3 20 36 31

52 Cotton, including yarns and woven fabrics thereof . . . . 37 20 99 155 151

53 Other vegetable textile fibers; yarns and fabrics of such 

vegetable fibers and paper .................... 0 1 1 1 1

54 Manmade filaments, including yarns & woven fabrics . . 57 135 135 326 247

55 Manmade staple fibers, incl. yarns & woven fabrics . . . 26 42 87 156 130

56 Wadding, felt and nonwovens; special yarns; twine,

cordage, ropes and cables and articles thereof . . . . . 51 26 79 155 106

57 Carpets and other textile floor coverings . . . . . . . . . . . . 11 12 7 30 13

58 Special woven fabrics; tufted textile fabrics; ace; 

tapestries; trimmings; embroidery . . . . . . . . . . . . . . . 109 3 29 141 53

59 Impregnated, coated, covered or laminated textile 

fabrics; textile articles suitable for industrial use . . . . 45 5 29 79 83

60 Knitted or crocheted fabrics . . . . . . . . . . . . . . . . . . . . . 29 45 11 85 77

61 Knitted or crocheted apparel . . . . . . . . . . . . . . . . . . . . . 2,050 764 73 2,887 2,928

62 Woven apparel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,976 940 119 4,035 4,170

63 Other textile articles; needlecraft; used clothing . . . . . . 611 134 56 801 712

64 Footwear and parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 70 105 296 275

65 Headgear and parts . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 8 15 55 52

66 Umbrellas, walking sticks, whips, and riding crops .... 2 0 0 3 2

67 Articles of feathers and down; artificial flowers; articles

of human hair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 0 1 3 1

68 Articles of stone, plaster, cement, asbestos, or mica . . 124 56 177 356 329

69 Ceramic products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 193 248 535 470

70 Glass and glassware . . . . . . . . . . . . . . . . . . . . . . . . . . . 241 512 123 876 825

71 Natural or cultured pearls; precious or semiprecious 

stones; precious-metal and imitation jewelry; coin . . . 226 139 609 973 706

72 Iron and steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 868 296 1,261 1,058

73 Articles of iron or steel . . . . . . . . . . . . . . . . . . . . . . . . . 848 699 440 1,987 1,742

74 Copper and articles thereof . . . . . . . . . . . . . . . . . . . . . . 113 120 216 449 333

75 Nickel and articles thereof . . . . . . . . . . . . . . . . . . . . . . . 10 28 1 40 36

76 Aluminum and articles thereof . . . . . . . . . . . . . . . . . . . 304 90 126 520 380

78 Lead and articles thereof ....................... 0 4 1 5 4

79 Zinc and articles thereof . . . . . . . . . . . . . . . . . . . . . . . . 22 111 28 161 165

80 Tin and articles thereof ......................... 0 0 1 1 2

81 Other articles of base metals; cermets; articles 

thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 6 5 40 10
DECEMBER/JANUARY 2005

Production Sharing Tables (Mexican Data) Industry Trade and Technology Review

B-12

Table B-5––Continued

Mexico’s exports (Maquiladora Program and Program for Temporary Importation to Manufacture

Exported Products (PITEX), and other) to the United States in 2003

(Million U.S. dollars)

Mexico’s exports to the

 United States U.S. imports 

from Mexico:

HS no. HS categories general

Maquiladora PITEX Other Total

82 Tools, implements, cutlery, spoons and forks, of base 

metal; parts thereof of base metal . . . . . . . . . . . . . . . 95 104 36 235 175

83 Miscellaneous articles of base metal . . . . . . . . . . . . . . 874 209 109 1,192 971

84 Machinery and mechanical appliances, including 

nuclear reactors, boilers, computer hardware, 

& parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,989 6,546 1,496 23,031 17,389

85 Electrical machinery & equipment; sound recorders & 

reproducers; television equip.; parts & accessories . . 34,958 3,563 957 39,478 32,844

86 Railway locomotives, rolling stock, track fixtures and 

parts; traffic signaling equipment . . . . . . . . . . . . . . . . 67 131 27 225 90

87 Other vehicles, incl. automobiles, trucks, buses, 

parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,454 19,668 680 24,801 25,229

88 Aircraft, spacecraft, and parts thereof . . . . . . . . . . . . . . 18 92 94 204 67

89 Ships, boats and floating structures . . . . . . . . . . . . . . . 53 16 1 70 44

90 Optical, photographic, cinematographic, measuring, 

checking, precision, or medical instruments, 

& parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,037 974 140 5,151 5,966

91 Clocks and watches and parts thereof . . . . . . . . . . . . . 123 5 2 130 90

92 Musical instruments; parts and accessories thereof . . . 49 0 1 50 35

93 Arms and ammunition; parts and accessories thereof . 5 5 2 12 15

94 Furniture; bedding, mattresses, & cushions; lamps & 

lighting fittings; illuminated signs; prefab buildings . . 3,735 659 289 4,683 5,058

95 Toys, games & sports equip.; parts & accessories . . . . 273 49 36 359 597

96 Miscellaneous manufactured articles . . . . . . . . . . . . . . 373 58 85 516 363

97 Works of art, collectors’ pieces and antiques . . . . . . . . 0 0 4 4 21

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,928 41,947 28,416 146,291 5,855

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 43 44 1

Grand total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,929 41,948 28,459 146,335 137,199

Source: Compiled from “World Trade Atlas: Mexico Edition, December 2003,” which used data provided by INEGI,

the statistical agency of the Government of Mexico.
DECEMBER/JANUARY 2005

Industry Trade and Technology Review Production Sharing Tables (Mexican Data)

B-13

Table B-6

Mexico’s exports (Maquiladora Program and Program for Temporary Importation to Manufacture Exported Products (PITEX), and other) to all countries except the United States in 2003

(Million U.S. dollars)

HS no. HS categories

Maquiladora PITEX Other Total

01 Live animals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 1 1

02 Meat and edible offal .............................. 0 6 3 9

03 Fish and seafood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 8 76 84

04 Dairy produce; eggs; honey; edible animal products . . . . . . 0 29 54 83

05 Other products of animal origin ....................... 0 0 1 1

06 Live trees & plants; cut flowers & ornamental foliage . . . . . . 0 1 9 9

07 Edible vegetables and certain roots and tubers . . . . . . . . . . 1 12 85 97

08 Edible fruit and nuts; peel of citrus fruit or melons . . . . . . . . 0 12 116 127

09 Coffee, tea, mate and spices . . . . . . . . . . . . . . . . . . . . . . . . 0 34 63 97

10 Cereals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 74 74

11 Milling products; malt; starches; inulin; wheat gluten . . . . . . 0 0 21 21

12 Oil seeds & oleaginous fruits; misc. grains, seeds, & 

fruits; industrial or medicinal plants; straw & fodder . . . . . . 0 0 12 12

13 Lac; gums; resins & other vegetable saps & extracts . . . . . . 0 19 11 30

14 Vegetable plaiting materials & veg. products, nesoi ....... 0 0 6 6

15 Animal or vegetable fats, oils, & waxes; edible fats . . . . . . . 0 4 11 14

16 Edible preparations of meat, fish, or seafood . . . . . . . . . . . . 0 1 9 10

17 Sugars and sugar confectionery . . . . . . . . . . . . . . . . . . . . . . 0 25 24 49

18 Cocoa and cocoa preparations ....................... 0 3 4 7

19 Preparations of cereals, flour, starch, or milk . . . . . . . . . . . . 0 48 41 89

20 Preparations of vegetables, fruit, nuts, parts of plants . . . . . 0 12 34 46

21 Miscellaneous edible preparations . . . . . . . . . . . . . . . . . . . . 0 36 67 104

22 Beverages, spirits, and vinegar . . . . . . . . . . . . . . . . . . . . . . . 0 185 119 304

23 Residues, waste of the food industries; animal feed . . . . . . . 0 0 16 16

24 Tobacco and manufactured tobacco substitutes . . . . . . . . . . 0 15 5 20

25 Salt; sulfur; earths & stone; plaster, lime, and cement . . . . . 0 0 63 63

26 Ores, slag and ash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 74 120 194

27 Mineral fuels, oils, waxes; bituminous substances . . . . . . . . 0 20 3,977 3,997

28 Inorganic chemicals; compounds of precious metals, 

rare-earth metals, or radioactive elements or isotopes . . . 1 56 68 125

29 Organic chemicals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 584 336 920

30 Pharmaceutical products . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 119 730 849

31 Fertilizers ....................................... 0 0 6 6

32 Tanning or dyeing extracts; tannins; dyes, pigments, 

other coloring matter; paints & varnishes; putty; inks . . . . . 0 178 81 259

33 Essential oils; perfume; cosmetic/ toilet preparations . . . . . . 6 9 285 300

34 Soap; lubricating products; waxes; polishing/scouring 

products; candles; modeling pastes; dental plaster . . . . . . 2 10 101 112

35 Albumoidal substances; starches; glues; enzymes . . . . . . . . 1 1 24 26

36 Explosives; fireworks; matches; combustible prep . . . . . . . . 0 0 7 7

37 Photographic or cinematographic goods . . . . . . . . . . . . . . . . 3 102 29 134

38 Miscellaneous chemical products . . . . . . . . . . . . . . . . . . . . . 0 38 84 122

39 Plastics and articles thereof . . . . . . . . . . . . . . . . . . . . . . . . . 10 205 388 603

40 Rubber and articles thereof . . . . . . . . . . . . . . . . . . . . . . . . . . 0 32 43 75

41 Raw hides and skins (other than furskins) and leather . . . . . 6 30 15 51
DECEMBER/JANUARY 2005

Production Sharing Tables (Mexican Data) Industry Trade and Technology Review

B-14

Table B-6––Continued

Mexico’s exports (Maquiladora Program and Program for Temporary Importation to Manufacture Exported Products (PITEX), and other) to all countries except the United States in 2003

(Million U.S. dollars)

HS no. HS categories

Maquiladora PITEX Other Total

42 Leather articles; saddlery; travel goods; handbags ........ 0 1 7 9

43 Furskins and artificial fur; manufactures thereof .......... 0 0 0 0

44 Wood and articles of wood; wood charcoal .............. 0 1 8 9

45 Cork and articles of cork ............................ 0 0 0 0

46 Manufactures of straw; basketware and wickerwork ....... 0 0 0 0

47 Wood pulp; waste and scrap paper and paperboard ...... 0 0 0 0

48 Paper & paperboard; articles of pulp, paper, paperbd . . . . . 0 26 127 152

49 Printed products, including books, newspapers, plans . . . . . 0 0 81 81

50 Silk, including yarns and woven fabrics thereof .......... 0 0 0 0

51 Wool & animal hair, yarns & woven fabrics thereof . . . . . . . . 0 5 10 15

52 Cotton, including yarns and woven fabrics thereof . . . . . . . . 5 2 29 35

53 Other vegetable textile fibers; yarns and fabrics of such 

vegetable fibers and paper ........................ 0 0 0 0

54 Manmade filaments, including yarns & woven fabrics . . . . . . 0 6 55 61

55 Manmade staple fibers, incl. yarns & woven fabrics . . . . . . . 0 70 47 117

56 Wadding, felt and nonwovens; special yarns; twine, 

cordage, ropes and cables and articles thereof . . . . . . . . . 0 2 23 24

57 Carpets and other textile floor coverings . . . . . . . . . . . . . . . . 0 27 1 27

58 Special woven fabrics; tufted textile fabrics; ace; 

tapestries; trimmings; embroidery . . . . . . . . . . . . . . . . . . . 1 2 16 18

59 Impregnated, coated, covered or laminated textile 

fabrics; textile articles suitable for industrial use . . . . . . . . 0 3 21 24

60 Knitted or crocheted fabrics . . . . . . . . . . . . . . . . . . . . . . . . . 0 1 4 5

61 Knitted or crocheted apparel . . . . . . . . . . . . . . . . . . . . . . . . . 61 33 18 112

62 Woven apparel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 23 43 155

63 Other textile articles; needlecraft; used clothing . . . . . . . . . . 1 12 9 23

64 Footwear and parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 4 19 22

65 Headgear and parts ............................... 0 0 3 3

66 Umbrellas, walking sticks, whips, and riding crops ........ 0 0 0 0

67 Articles of feathers and down; artificial flowers; articles 

of human hair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 0 0 0

68 Articles of stone, plaster, cement, asbestos, or mica . . . . . . 0 2 31 33

69 Ceramic products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 7 36 43

70 Glass and glassware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 45 47 93

71 Natural or cultured pearls; precious or semiprecious 

stones; precious-metal and imitation jewelry; coin . . . . . . . 1 33 75 109

72 Iron and steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 269 83 352

73 Articles of iron or steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 87 147 234

74 Copper and articles thereof . . . . . . . . . . . . . . . . . . . . . . . . . . 0 2 45 47

75 Nickel and articles thereof........................... 0 0 0 0

76 Aluminum and articles thereof . . . . . . . . . . . . . . . . . . . . . . . 0 20 74 94

78 Lead and articles thereof ........................... 0 2 1 3

79 Zinc and articles thereof . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 20 11 30

80 Tin and articles thereof ............................. 0 0 0 0

81 Other articles of base metals; cermets; articles thereof . . . . 0 4 2 6
DECEMBER/JANUARY 2005

Industry Trade and Technology Review Production Sharing Tables (Mexican Data)

B-15

Table B-6––Continued

Mexico’s exports (Maquiladora Program and Program for Temporary Importation to Manufacture Exported Products (PITEX), and other) to all countries except the United States in 2003

(Million U.S. dollars)

HS no. HS categories

Maquiladora PITEX Other Total

82 Tools, implements, cutlery, spoons and forks, of base 

metal; parts thereof of base metal . . . . . . . . . . . . . . . . . . . 2 20 54 76

83 Miscellaneous articles of base metal . . . . . . . . . . . . . . . . . . 0 14 55 70

84 Machinery and mechanical appliances, including 

nuclear reactors, boilers, computer hardware, & parts . . . 220 1,865 392 2,477

85 Electrical machinery & equipment; sound recorders & 

reproducers; television equip.; parts & accessories . . . . . . 581 475 301 1,357

86 Railway locomotives, rolling stock, track fixtures and 

parts; traffic signaling equipment . . . . . . . . . . . . . . . . . . . . 0 8 4 12

87 Other vehicles, incl. automobiles, trucks, buses, parts . . . . . 59 2,320 100 2,480

88 Aircraft, spacecraft, and parts thereof . . . . . . . . . . . . . . . . . . 0 10 11 21

89 Ships, boats and floating structures . . . . . . . . . . . . . . . . . . . 0 39 0 39

90 Optical, photographic, cinematographic, measuring, 

checking, precision, or medical instruments, & parts . . . . . 154 223 71 448

91 Clocks and watches and parts thereof ................. 0 3 4 7

92 Musical instruments; parts and accessories thereof ....... 0 0 0 0

93 Arms and ammunition; parts and accessories thereof ..... 0 0 2 2

94 Furniture; bedding, mattresses, & cushions; lamps & 

lighting fittings; illuminated signs; prefab buildings . . . . . . 10 29 44 84

95 Toys, games & sports equip.; parts & accessories . . . . . . . . 256 25 10 292

96 Miscellaneous manufactured articles . . . . . . . . . . . . . . . . . . 0 2 35 37

97 Works of art, collectors’ pieces and antiques ............ 0 0 1 1

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,476 7,653 9,367 18,497

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 71 72

Grand total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,477 7,654 9,438 18,569

Source: Compiled from “World Trade Atlas: Mexico Edition, December 2003,” which used data provided by INEGI,

the statistical agency of the Government of Mexico.
DECEMBER/JANUARY 2005

Production Sharing Tables (Mexican Data) Industry Trade and Technology Review

B-16

Table B-7

Total exports from Mexico under Temporary Import Programs (Maquiladora and Program for

Temporary Importation to Manufacture Exported Products), by leading markets, 2000-03

Market 2000 2001 2002 2003

Percentage of

total in 2003

 –––––––––––––– Million dollars –––––––––––––

 United States . . . . . . . . . . . . . . . 126,795 121,285 119,934 117,877 93

 Canada . . . . . . . . . . . . . . . . . . . 2,840 2,610 2,429 2,231 2

 Netherlands . . . . . . . . . . . . . . . . 348 425 473 510 (1

)

 Japan . . . . . . . . . . . . . . . . . . . . . 456 297 387 349 (1

)

 Brazil . . . . . . . . . . . . . . . . . . . . . 379 423 334 280 (1

)

 Colombia . . . . . . . . . . . . . . . . . . 196 208 276 252 (1

)

 Hong Kong . . . . . . . . . . . . . . . . . 164 95 156 209 (1

)

 France . . . . . . . . . . . . . . . . . . . . 252 266 236 206 (1

)

 Italy . . . . . . . . . . . . . . . . . . . . . . 141 169 106 192 (1

)

 Honduras . . . . . . . . . . . . . . . . . . 121 96 111 97 (1

)

All other . . . . . . . . . . . . . . . . . . . 5,560 5,536 5,306 4,803 4

Total . . . . . . . . . . . . . . . . . . . . 137,251 131,410 129,747 127,007 100

1

 Less than 0.5 percent.

Source: Compiled from “World Trade Atlas: Mexico Edition, December 2003,” which used data provided by

INEGI, the statistical agency of the Government of Mexico.