Shifts in U.S. Merchandise Trade in 1999

Investigation No. 332-345

Publication 3353 September 2000
U.S. International Trade Commission

Director of Industries

Vern Simpson

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Shifts in U.S. Merchandise Trade in 1999
U.S. International Trade Commission

Washington, DC 20436

Publication 3353 September 2000

Shifts in U.S. Merchandise Trade in 1999
This report was prepared principally by the Office of Industries

Project Team

Karl Tsuji, Project Leader

tsuji@usitc.gov

(202) 205-3434

Linda White, Assistant Project Leader

Primary Reviewers

William Greene, Office of Industries

Michael Youssef, Office of Economics

with assistance from:

Dianne Bennett, Judith Bryant, Sharon Greenfield, Vincent Honnold, Lawrence Johnson,

John Kitzmiller, James Lukes, David Lundy, Wanda Tolson, Zema Tucker, Janice Wayne,

Brenda Young, and authors from the Office of Industries as noted throughout the report

Peg MacKnight, Office of Operations

Barbara Bobbitt, Harold Patrick Clifford Brown, Barbara Bryan,

Kenneth R. Kozel, and Peggy Verdine, Office of Information Services

Under the direction of:

Mark Paulson, Chief

Iron and Steel Products Branch

Larry Brookhart, Chief

Minerals, Metals, Machinery, and Miscellaneous Manufactures Division
i

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about the agency and to download this and other reports

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,,,,,,,,,,,,,,,,

PREFACE

On August 27, 1993, on its own motion and pursuant to section 332(b) of the Tariff Act of 1930

(19 U.S.C. 1332(b)), the U.S. International Trade Commission (USITC or the Commission) instituted

investigation No. 332-345, Annual Reports on U.S. Trade Shifts in Selected Industries. The report format

was developed by the USITC in response to Congressional interest in establishing a systematic means of

examining and reporting on the significance of major trade shifts, by product and with leading U.S. trade

partners in all natural-resource, agricultural, and manufacturing industries.

On December 20, 1994, the Commission on its own motion expanded the scope of this study to

include selected service industries. Under the expanded scope, the Commission publishes two separate

reports annually: Shifts in U.S. Merchandise Trade and Recent Trends in U.S. Services Trade. A separate

report covering services trade was instituted in order to provide more comprehensive coverage of U.S. trade

performance and overall economic competitiveness.

A significant amount of the work in this recurring report is basic research required to maintain a

proficient level of trade expertise that the Commission has found essential in its statutory investigations and

in apprising its varied customers of global industry trends and competition issues. The information

compiled in this report, such as export, import, trade balance, and industry profile data (establishments,

employees, capacity utilization, and production or shipments) for over 250 major industry/commodity

groups, is not replicated elsewhere in the U.S. Government.

The information and analysis in this report 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

other statutory authority.

iii

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CONTENTS

Preface ............................................ i

Glossary of frequently used abbreviations ................. xi

Chapter 1. Introduction ............................... 1-1

Chapter 2. U.S. merchandise trade performance ............ 2-1

U.S. trade by industry/commodity groups and sectors ..... 2-3

U.S. trade balance ........................... 2-3

U.S. exports ................................ 2-3

U.S. imports ................................ 2-4

U.S. bilateral/multilateral trade ...................... 2-4

Significant bilateral/multilateral shifts ............. 2-4

Significance of international trade in the gross

domestic product ......................... 2-6

Chapter 3. Significant global trade developments

and shifts with leading partners ................ 3-1

Regional financial and economic crises ................ 3-1

Selected economic and financial indicators ......... 3-1

U.S. trade flows ............................. 3-6

Recent trends: Brazil .......................... 3-6

Recent trends: Indonesia ....................... 3-8

Recent trends: Korea .......................... 3-9

Recent trends: Malaysia ....................... 3-10

Recent trends: Philippines ...................... 3-12

Recent trends: Russia ......................... 3-13

Recent trends: Thailand ....................... 3-16

Significant shifts with leading partners ................ 3-18

Canada .................................... 3-18

China ..................................... 3-22

European Union ............................. 3-25

Japan ..................................... 3-28

Mexico .................................... 3-31

Chapter 4. Factors affecting trends in selected 

industries/commodities ....................... 4-1

Flat glass ...................................... 4-1

U.S.-Japan agreement on autos and auto parts ........... 4-3

Textiles and apparel .............................. 4-4

Agreement on Textiles and Clothing .............. 4-4

U.S. quota actions in 1999 ..................... 4-5

Market access agreement with China .............. 4-7

Outward Processing Program for Macedonia

and Romania ............................ 4-7

Trade and Development Act of 2000 .............. 4-7

Five-year (sunset) reviews of antidumping and

countervailing duty orders ...................... 4-11

The WTO Dispute Settlement Understanding ........... 4-14
CONTENTS--Continued

iv

Chapter 5. Agricultural products ....................... 5-1

U.S. bilateral trade ............................... 5-3

Commodity analysis of cotton, not carded or combed ..... 5-4

Chapter 6. Forest products ............................ 6-1

U.S. bilateral trade ............................... 6-1

Commodity analysis of lumber ...................... 6-4

Chapter 7. Chemicals and related products ................ 7-1

U.S. bilateral trade ............................... 7-3

Commodity analysis of medicinal chemicals ............ 7-5

Chapter 8. Energy-related products ..................... 8-1

U.S. bilateral trade ............................... 8-1

Commodity analysis .............................. 8-3

Crude petroleum and petroleum products .......... 8-3

Natural gas and components .................... 8-4

Coal, coke, and related chemical products .......... 8-4

Chapter 9. Textiles and apparel, and footwear ............. 9-1

Chapter 10. Minerals and metals ........................ 10-1

U.S. bilateral trade ............................... 10-4

Commodity analysis .............................. 10-5

Steel mill products ........................... 10-5

Natural and synthetic gemstones ................. 10-8

Chapter 11. Machinery ............................... 11-1

U.S. bilateral trade ............................... 11-4

Commodity analysis .............................. 11-5

Electric motors, generators, and related equipment ... 11-5

Household appliances, including commercial

applications ............................. 11-7

Farm and garden machinery and equipment ......... 11-8

Chapter 12. Transportation equipment ................... 12-1

U.S. bilateral trade ............................... 12-1

Commodity analysis .............................. 12-3

Motor vehicles .............................. 12-3

Aircraft, spacecraft, and related equipment ......... 12-5

Certain motor-vehicle parts ..................... 12-6

Internal combustion piston engines, other than

for aircraft .............................. 12-8

Construction and mining equipment ............... 12-9

Aircraft engines and gas turbines ................ 12-11

Chapter 13. Electronic products ........................ 13-1

U.S. bilateral trade ............................... 13-3

Commodity analysis .............................. 13-4

Computers, peripherals, and parts ................ 13-4

Semiconductors and integrated circuits ............ 13-5

Telephone and telegraph apparatus ............... 13-6

Consumer electronics (except televisions) .......... 13-7

Radio and television broadcasting equipment ........ 13-8
CONTENTS--Continued

v

Chapter 14. Miscellaneous manufactures .................. 14-1

U.S. bilateral trade ............................... 14-3

Commodity analysis of furniture ..................... 14-4

Appendixes

A. Industry/commodity groups in this report ................. A-1

B. Profile of U.S. industry and market, by industry/commodity

groups, 1995-99 ................................. B-1

C. Industry/commodity groups with most significant shifts,

1998 and 1999 .................................. C-1

D. Definitions of selected country groups ................... D-1

E. Status of antidumping and countervailing duty order

5-year (sunset) reviews ............................ E-1

F. Status of WTO cases involving the United States ........... F-1

G. Background on exchange rate shifts ..................... G-1

Introduction .................................... G-3

Exchange rate determinants and trade ................. G-3

Changes in the nominal and real value of the dollar ....... G-4

Yen appreciation ............................. G-7

Euro depreciation ............................ G-8

Exchange rate stability and convertibility .............. G-10

Figure

4-1. Japanese imports of flat glass, by quantity and value,

from the United States and all countries, 1994-99 .... 4-2

Tables

2-1. U.S. exports of domestic merchandise, imports for

consumption, and merchandise trade balance, by

industry/commodity sectors, 1998 and 1999 ........ 2-2

2-2. All merchandise sectors: U.S. exports of domestic

merchandise, imports for consumption, and

merchandise trade balance, by selected countries

and country groups, 1998 and 1999 .............. 2-5

2-3. U.S. bilateral merchandise trade balances with major

partners, in dollars and as a ratio to nominal U.S.

gross domestic product (GDP), 1999 .............. 2-6

2-4. Components of U.S. gross domestic product (GDP) and

trade as a share of GDP, 1995-99 ................ 2-7

2-5. Merchandise trade as a share of gross domestic product

(GDP) for the United States and major trading

partners, 1995-99 ............................ 2-8
CONTENTS--Continued

vi

Tables--continued

3-1. Regional financial crises countries: Real GDP, consumer

prices, unemployment, goods trade balance,

goods exports, goods imports, average nominal 

exchange rates, interest rates, and international

reserves (excluding gold), 1998 and 1999 .......... 3-2

3-2. Regional financial crises countries: Current account

balance as a share of gross national product (GDP)

and in billions of dollars, and foreign direct

investment (FDI) inflows, 1998 and 1999 .......... 3-3

3-3. Regional financial crises countries: U.S. exports of 

domestic merchandise, imports for consumption, 

and merchandise trade balance, 1998 and 1999 ...... 3-5

3-4. Leading changes in U.S. exports to and U.S. imports

from Canada, 1998 and 1999 ................... 3-21

3-5. Leading changes in U.S. exports to and U.S. imports

from China, 1998 and 1999 .................... 3-24

3-6. Leading changes in U.S. exports to and U.S. imports

from the European Union, 1998 and 1999 .......... 3-27

3-7. Leading changes in U.S. exports to and U.S. imports

from Japan, 1998 and 1999 ..................... 3-30

3-8. Leading changes in U.S. exports to and U.S. imports

from Mexico, 1998 and 1999 ................... 3-34

4-1. Five-year (sunset) review status ..................... 4-12

4-2. Simplified process of 5-year (sunset) review cases ........ 4-13

4-3. Simplified overview of the WTO Dispute Settlement

Understanding (DSU) procedure ................. 4-16

5-1. Agricultural products: U.S. exports of domestic

merchandise, imports for consumption, and

merchandise trade balance, by selected countries

and country groups, 1998 and 1999 .............. 5-2

5-2. Leading decreases in U.S. exports of agricultural 

products, 1998 and 1999 ....................... 5-3

5-3. Leading changes in U.S. imports of agricultural products,

1998 and 1999 .............................. 5-3

5-4. Agricultural products sector: U.S. trade for selected

industry/commodity groups, 1998 and 1999 ........ 5-6

6-1. Forest products: U.S. exports of domestic merchandise,

imports for consumption, and merchandise trade

balance, by selected countries and country groups,

1998 and 1999 .............................. 6-2

6-2. Leading increases in U.S. exports of forest products, 

1998 and 1999 .............................. 6-3

6-3. Leading increases in U.S. imports of forest products,

1998 and 1999 .............................. 6-3

6-4. Forest products sector: U.S. trade for selected industry/

commodity groups, 1998 and 1999 ............... 6-5
CONTENTS--Continued

vii

Tables--continued

7-1. Chemicals and related products: U.S. exports of

domestic merchandise, imports for consumption,

and merchandise trade balance, by selected

countries and country groups, 1998 and 1999 ....... 7-2

7-2. Chemicals and related products: U.S. exports of

domestic merchandise, imports for consumption,

and merchandise trade balance, by major types,

1998 and 1999 .............................. 7-3

7-3. Chemicals and related products sector: U.S. trade for

selected industry/commodity groups, 1998 and

1999 ...................................... 7-7

8-1. Energy-related products: U.S. exports of domestic

merchandise, imports for consumption, and

merchandise trade balance, by selected countries

and country groups, 1998 and 1999 .............. 8-2

8-2. Energy-related products sector: U.S. trade for selected

industry/commodity groups, 1998 and 1999 ........ 8-5

9-1. Textiles and apparel: U.S. exports of domestic

merchandise, imports for consumption, and

merchandise trade balance, by selected countries

and country groups, 1998 and 1999 .............. 9-2

9-2. Footwear: U.S. exports of domestic merchandise,

imports for consumption, and merchandise trade

balance, by selected countries and country groups,

1998 and 1999 .............................. 9-4

9-3. Textiles, apparel, and footwear sector: U.S. trade for

selected industry/commodity groups, 1998 and

1999 ...................................... 9-7

10-1. Minerals and metals: U.S. exports of domestic

merchandise, imports for consumption, and

merchandise trade balance, by selected countries

and country groups, 1998 and 1999 .............. 10-2

10-2. Leading changes in U.S. exports of minerals and metals,

1998 and 1999 .............................. 10-3

10-3. Leading changes in U.S. imports of minerals and metals,

1998 and 1999 .............................. 10-3

10-4. Changes in U.S. imports of steel mill products, 1998 and

1999 ...................................... 10-7

10-5. Changes in U.S. imports of natural and synthetic

gemstones, 1998 and 1999 ..................... 10-9

10-6. Minerals and metals sector: U.S. trade for selected

industry/commodity groups, 1998 and 1999 ........ 10-10

11-1. Machinery: U.S. exports of domestic merchandise,

imports for consumption, and merchandise trade

balance, by selected countries and country groups,

1998 and 1999 .............................. 11-2
CONTENTS--Continued

viii

Tables--continued

11-2. Leading changes in U.S. exports of machinery, 1998 and

1999 ...................................... 11-3

11-3. Leading changes in U.S. imports of machinery, 1998 and

1999 ...................................... 11-3

11-4. Increases in U.S. imports of electric motors, generators,

and related equipment, 1998 and 1999 ............ 11-6

11-5. Machinery sector: U.S. trade for selected industry/

commodity groups, 1998 and 1999 ............... 11-11

12-1. Transportation equipment: U.S. exports of domestic 

merchandise, imports for consumption, and

merchandise trade balance, by selected countries

and country groups, 1998 and 1999 .............. 12-2

12-2. Leading increases in U.S. imports of transportation

equipment, 1998 and 1999 ..................... 12-3

12-3. Transportation equipment sector: U.S. trade for selected

industry/commodity groups, 1998 and 1999 ........ 12-13

13-1. Electronic products: U.S. exports of domestic

merchandise, imports for consumption, and

merchandise trade balance, by selected countries

and country groups, 1998 and 1999 .............. 13-2

13-2. Electronic products sector: U.S. trade for selected

industry/commodity groups, 1998 and 1999 ........ 13-10

14-1. Miscellaneous manufactures: U.S. exports of domestic

merchandise, imports for consumption, and

merchandise trade balance, by selected countries

and country groups, 1998 and 1999 .............. 14-2

14-2. Leading changes in U.S. imports of miscellaneous 

manufactures, 1998 and 1999 ................... 14-3

14-3. Miscellaneous manufactures sector: U.S. trade for

selected industry/commodity groups, 1998

and 1999 .................................. 14-6

B-1. Agricultural products sector: Profile of U.S. industry and

market, by industry/commodity groups, 1995-99 ..... B-3

B-2. Forest products sector: Profile of U.S. industry and

market, by industry/commodity groups, 1995-99 ..... B-13

B-3. Chemicals and related products sector: Profile of U.S.

industry and market, by industry/commodity

groups, 1995-99 ............................. B-17

B-4. Energy-related products sector: Profile of U.S. industry

and market, by industry/commodity groups,

1995-99 ................................... B-25

B-5. Textiles, apparel, and footwear sector: Profile of U.S. 

industry and market, by industry/commodity 

1995-99 ................................... B-27

B-6. Minerals and metals sector: Profile of U.S. industry and

market, by industry/commodity groups, 1995-99 ..... B-29
CONTENTS--Continued

ix

Tables--continued

B-7. Machinery sector: Profile of U.S. industry and market,

by industry/commodity groups, 1995-99 ........... B-39

B-8. Transportation equipment sector: Profile of U.S.

industry and market, by industry/commodity

groups, 1995-99 ............................. B-46

B-9. Electronic products sector: Profile of U.S. industry and

market, by industry/commodity groups, 1995-99 ..... B-49

B-10. Miscellaneous manufactures sector: Profile of U.S.

industry and market, by industry/commodity

groups, 1995-99 ............................. B-55

C-1. Domestic export increases: Ranking of top 20 industry/

commodity groups, 1998 and 1999 ............... C-3

C-2. Domestic export declines: Ranking of top 20 industry/

commodity groups, 1998 and 1999 ............... C-4

C-3. Domestic import increases: Ranking of top 20 industry/

commodity groups, 1998 and 1999 ............... C-5

C-4. Domestic import declines: Ranking of top 20 industry/

commodity groups, 1998 and 1999 ............... C-6

C-5. U.S. trade position increases: Ranking of top 30

industry/commodity groups, 1998 and 1999 ........ C-7

C-6. U.S. trade position declines: Ranking of top 30

industry/commodity groups, 1998 and 1999 ........ C-8

E-1. Status of antidumping and countervailing duty order

5-year (sunset) reviews (as of August 2000) ........ E-3

F-1. Status of World Trade Organization (WTO) dispute

settlement cases involving the United States

(as of June 2000) ............................ F-3

G-1. Nominal exchange rates for selected trade partners,

annual averages ............................. G-5

G-2. Nominal and real weighted average indexes of foreign

exchange value of the U.S. dollar versus currencies

of groups of trade partners, annual averages ........ G-6

G-3. Some countries and territories that officially adopted

other currencies as of January 2000 .............. G-11

xi

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GLOSSARY

of Frequently Used

 Abbreviations

AD ............. antidumping

AGOA .......... Africa Growth and Opportunity Act

ADB ............ Asian Development Bank

ASEAN ......... Association of Southeast Asian Nations

ATC ............ Agreement on Textiles and Clothing

BEA ............ Bureau of Economic Analysis

BOP ............ balance of payments

CBERA ......... Caribbean Basin Economic Recovery Act

cc .............. cubic centimeters

CD ............. compact disc

CEMs ........... contract electronic manufacturers

CFTA ........... U.S.-Canada Free Trade Agreement

CITA ........... Committee for the Implementation of Textile Agreements

CVD ............ countervailing duty

DSB ............ WTO Dispute Settlement Body

DSU ............ WTO Understanding on Rules and Procedures Governing

Settlement of Disputes (or Dispute Settlement Understanding)

DVD ........... digital versatile disk

EIU ............ Economist Intelligence Unit

EMU ........... European Economic and Monetary Union

EU or EU-15 ..... European Union

FACT ........... Food, Agriculture, Conservation, and Trade (Act)

FAIR ........... Federal Agriculture Improvement and Reform (Act)

FAS ............ Foreign Agriculture Service

FDI ............ foreign direct investment

F.R. ............ Federal Register

GAO ........... U.S. General Accounting Office

GATS ........... General Agreement on Trade in Services

GATT .......... General Agreement on Tariffs and Trade

GDP ............ gross domestic product

HTS ............ Harmonized Tariff Schedule

ICs ............. integrated circuits

IMF ............ International Monetary Fund

ITA ............ International Trade Administration

ITC ............ U.S. International Trade Commission

IER ............. International Economic Review

ITTR ............ Industry Trade and Technology Review

kg .............. kilograms

kN ............. kilonewtons

LCA ............ large civil aircraft

MFA ........... Multifiber Arrangement
GLOSSARY

of Frequently Used

 Abbreviations--Continued

xii

mmt ............ million metric tons

NAFTA ......... North American Free Trade Agreement

OE ............. original equipment

OECD .......... Organization for Economic Co-operation and Development

OPEC ........... Organization of Petroleum Exporting Countries

PC ............. personal computer

PL ............. Public Law

SMEs ........... square meter equivalents

SPS ............ Sanitary-Phytosanitary

SSA ............ sub-Saharan Africa

TBT ............ Technical Barriers to Trade

TMB ........... Textiles Monitoring Body

TRIMS .......... Trade-Related Investment Measures

TRIPS .......... Trade-Related Aspects of Intellectual Property Rights

TRQs ........... tariff-rate quotas

UN ............. United Nations

UNCTAD ........ United Nations Conference on Trade and Development

URA ............ Uruguay Round Agreements

U.S.C. .......... U.S. Code

USDA .......... U.S. Department of Agriculture

USDOC ......... U.S. Department of Commerce

USITC .......... U.S. International Trade Commission

USTR ........... Office of the U.S. Trade Representative

WTO ........... World Trade Organization

Y2K ............ Year-2000
 

1

 Major roles include determining whether U.S. industries are materially injured or threatened with material

injury by unfair imports, conducting studies on the international competitiveness of U.S. industries, and advising

the President and the Congress on the likely effects of trade-policy changes and proposals.

 

2

 This report analyzes changes in U.S. merchandise trade on a value basis. A principal reason is that aggregate

trade data by quantity are generally not available. Consequently, it is possible (if prices change significantly) for

the value of trade to change considerably, but for the quantity of trade to remain the same. Where appropriate, this

report also provides trade data on a quantity basis.

 

3

 For more details about specific changes in coverage of the industry/commodity groups, consult the respective

industry/commodity sector coordinators listed at the beginning of chapters 5-14.

 

4

 Basic information and trade flow data for industry/commodity groups in app. B are described in further detail

in the final paragraph of this chapter.

 

5

 See USITC, Recent Trends in U.S. Services Trade, investigation No. 332-345, USITC publication 3306,

May 2000.

1-1

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CHAPTER 1

Introduction

The international trade analysts of the U.S. International Trade Commission (USITC or the

Commission), Office of Industries, routinely monitor trade developments in all natural-resource,

agricultural, and manufacturing industries, and in the services sector. Trade monitoring at the

industry/commodity sector and subsector levels (the latter referred to as industry/commodity groups in this

report) is a facet of the research and analysis undertaken by the Office of Industries as part of its

responsibility to provide advice and technical information on industry and trade issues. Trade monitoring

enables the USITC to better anticipate and address the issues of concern in its various roles under U.S.

trade statutes.1 This annual report analyzes significant merchandise trade shifts on an aggregate basis, on a

bilateral basis, and at the industry/commodity-group level.2 This series is part of the Commission’s

recurring reports that facilitate the development of core competencies and expertise, and which enable the

Commission to provide objective and in-depth analysis to the Congress, other Federal agencies, and the

general public related to emerging and complex international trade and economic issues.

For trade-monitoring purposes, the USITC assigns U.S. Harmonized Tariff Schedule (HTS)

import headings/subheadings, and the corresponding Schedule B export categories, to industry/commodity

groups. These groups are aggregated into sectors. Appendix A shows the industry/commodity sectors, the

industry/commodity groups in the sector, and HTS coverage by chapter, for each sector. Certain

industry/commodity groups appearing in this year’s report have been extensively revised into new groups,

combined groups, or split-off groups, or by shifting HTS subheadings among groups to provide more

pertinent product coverage.3 Hence, production, consumption, and other basic information about the

affected industry/commodity groups in Appendix B have been re-estimated for the full 5-year period (1995-

99); likewise, trade data in that appendix have been adjusted over the full period to reflect these revised

industry/commodity groups.4 Moreover, titles of many industry/commodity groups have been modified to

be more succinct and more descriptive of the product coverage.

U.S. trade shifts in services are the subject of a separate USITC annual report.5 Thus, throughout

this report, unless otherwise specified, references to trade balances represent U.S. merchandise trade only.

In assessing the U.S. merchandise trade deficit in 1999, it is important to note that the United States
 

6

 Official statistics of the U.S. Department of Commerce (USDOC), revised estimate for Jan.-Dec. 1999,

reported in USDOC, Bureau of Economic Analysis, Survey of Current Business, Table 1.1, Gross Domestic

Product, Apr. 2000, p. 41.

 

7

 See ch. 3 of the 1993 annual report for long-range assessments of common factors affecting trends in selected

industry/commodity sectors. USITC, U.S. Trade Shifts in Selected Industries: 1993 Annual Report, investigation

No. 332-345, USITC publication 2805, Sept. 1994.

1-2

recorded a trade surplus in services of $96.2 billion,6 which, when added to the $375.2-billion merchandise

trade deficit, reduced the combined trade deficit (merchandise plus services) to $279.0 billion.

Chapter 1 of the report is the general introduction. Chapter 2 summarizes U.S. merchandise trade

for 1999, in comparison with such trade for 1998. Coverage of the individual merchandise sectors include

data showing U.S. export, import, and trade balance shifts by industry/commodity groups and sectors,7 and

shifts in trade with U.S. trade partners. In addition, the chapter also discusses the significance of

international trade in the gross domestic product of the United States compared with its major trade

partners.

TRADE DATA NOTE

Although all import and export figures presented in this report are official statistics of the U.S.

Department of Commerce (Commerce), these figures may be substantially different from the

figures presented by other government agencies and private institutions that cite Commerce as the

source for trade data. Possible reasons for these discrepancies are as follows:

C Figures in this report include merchandise trade only; other reported figures may include

services.

C Figures are not seasonally adjusted; the values of other reported figures may be so

adjusted.

C Figures are not adjusted on a balance of payments (BOP) basis; the values of other

reported figures may be so adjusted in line with the concepts and definitions used

to prepare national and international accounts.

C Exports are on a domestic export/f.a.s. basis; other reported export figures may be on a

total export/f.a.s. basis, which include re-exports of foreign merchandise.

C Imports are on an imports-for-consumption/customs value basis; other reported import

figures may be on a general imports/customs value basis.

C Exports and imports may not include all errata because certain errors may not be

corrected by Commerce in time to be included in this report.

C Figures in this report may be adjusted for errors that are not of sufficient magnitude to

be changed in Commerce data.

C There are no adjustments for carryover (exports and imports received late or not

processed for any reason and then subsequently included in a later month's figures

are reassigned to the month of exportation/entry), and trade is reported as originally

released by Commerce. Other reported figures may adjust export/import trade for

carryover.

C The industry/commodity groups contained in this report are developed by the USITC

and may differ from similarly labeled groups of other sources.
 

8

 Textiles and apparel are presented separately from footwear in ch. 9.

1-3

Chapter 3 analyzes noteworthy economic and trade developments in 1999 involving specific

countries or country groups. This year’s report considers the progress in overcoming the financial crises

affecting East/Southeast Asia, Russia, and Brazil, and the implications for U.S. trade. Analysis of shifts in

U.S. bilateral trade chiefly considers the top five U.S. trade partners--Canada, China, the European Union,

Japan, and Mexico. Summary tables detail the important shifts in U.S. bilateral trade and highlight leading

changes in industry/commodity groups for each of the five major trade partners.

Chapter 4 analyzes factors affecting trends in selected industries/commodities that have been

subject to specific monitoring requirements or recent bilateral agreements. In addition to describing the

ongoing 5-year (sunset) review process for outstanding antidumping (AD) and countervailing duty (CVD)

orders, this chapter also describes the World Trade Organization’s (WTO’s) dispute settlement process for

adjudicating trade disputes among its members.

Chapters 5 through 14 address specific industry/commodity sectors, with each chapter providing a

general sector overview and identifying significant shifts in merchandise trade within the sector.8 In most

cases, these chapters identify significant shifts in specific industry/commodity groups, and in this year’s

report, the review has focused on trade flows (exports, imports, or trade balance) exhibiting shifts

exceeding $1.0 billion. Finally, a statistical summary table of industry/commodity groups, showing

absolute and percent changes in a year-to-year comparison for 1998 and 1999, concludes each sector

analysis chapter.

The report has seven appendixes. Appendix A lists the revised, specific industry/commodity sectors

and groups that the Commission monitors. Appendix B provides official and estimated data (1995-99) for

domestic consumption, production, employment, trade, and import penetration for the revised set of over

250 industry/commodity groups covered in this report. USITC international trade analysts have estimated

certain components of these data, based on primary and secondary government and industry sources. The

estimated data are subject to change either from future secondary sources, or from the detailed surveys the

USITC often conducts in the course of statutory investigations or other work. Given the significant changes

reflected in certain industry/commodity groups, basic information on establishments, employees, capacity

utilization, and shipments or production have been re-estimated for the full 5-year period for the affected

industry/commodity groups. Likewise, export and import flows were also adjusted over the full period to

reflect trade in the revised industry/commodity groups. Appendix C ranks the industry/commodity groups

exhibiting the most significant annual growth and decline in U.S. exports, imports, and trade balances in

1999. Appendix D lists the political entities included in the country groups shown in this report. Appendix

E lists the current status of existing AD and CVD orders in the sunset review process. Appendix F lists the

current status of existing WTO dispute settlement cases involving the United States. Finally, appendix G

discusses the effect of exchange rate shifts on trade flows, summarizes the major shifts in exchange rates

that occurred during 1999, highlighting the appreciation of the Japanese yen and depreciation of the

European Monetary Union’s euro, and examines the trend in certain countries that adopt the U.S. dollar as

their official currency (“dollarization”).

 

1

 Total U.S. combined trade grew by $149.1 billion (7 percent) during 1999 to nearly $2.2 trillion. Official

statistics of the U.S. Department of Commerce (USDOC).

 

2

 Information on the macroeconomic background for U.S. merchandise trade performance in 1999 was

principally derived from Christopher L. Bach, “The Year 1999,” Survey of Current Business, USDOC, Apr. 2000,

pp. 154-192; Council of Economic Advisors, Economic Report of the President, together with the Annual Report

of the Council of Economic Advisers, “The Macroeconomic Policy and Performance,” Feb. 2000, pp. 49-95;

Federal Reserve Board of Governors, Monetary Policy Report Submitted to Congress, Feb. 17, 2000; and

Organization for Economic Cooperation and Development (OECD), “United States,” OECD Economic Outlook,

vol. 66 (Paris: OECD, Dec. 1999), pp. 39-43.

2-1

,,,,,,,,,,,,,,,,

CHAPTER 2

U.S. Merchandise Trade Performance

Karl Tsuji

(202) 205-3434

tsuji@usitc.gov

Linda White

(202) 205-3427

white@usitc.gov

Highlights of U.S. merchandise trade performance in 1999 are presented first in this chapter, along

with a survey of wider U.S. macroeconomic conditions. Next are analyses of key trade shifts in

industry/commodity groups and sectors, and among bilateral and multilateral trade partners. Material in

this chapter is compiled from more detailed analyses presented in subsequent chapters, including important

bilateral trade and multilateral economic developments (chapter 3), and product-specific developments in

the industry/commodity sectors (chapters 4-14) affecting U.S. merchandise trade.

During 1999, U.S. total merchandise trade (exports plus imports) grew by $117.3 billion

(8 percent) to nearly $1.7 trillion, representing 77 percent of total U.S. combined trade (exports plus

imports of merchandise plus services)1 and 18 percent of U.S. gross domestic product. However, the U.S.

merchandise trade deficit widened by $102.3 billion (38 percent) to $375.2 billion in 1999, up from the

$272.9-billion deficit recorded the previous year (table 2-1). This rise in the merchandise trade deficit

resulted from an increase in exports of $7.5 billion (1 percent) to $642.2 billion, that failed to keep pace

with an increase in imports of $109.8 billion (12 percent) to just over $1.0 trillion.

At the macroeconomic level, continued strong U.S. and generally improving worldwide economic

activity both exerted a noteworthy influence on U.S. merchandise trade performance in 1999.2 Expansion

of the U.S. economy for the ninth consecutive year in 1999 continued to buoy confidence of and spending

by both consumers and businesses (albeit incremental increases in interest rates), which in turn spurred

growing U.S. demand for both domestic and imported goods. Given low levels of unemployment, enhanced

investment returns from the stock market, and rising real (inflation-adjusted) personal incomes, consumers

were more willing to spend a higher portion of disposable incomes with a resulting decline in rates of

personal savings. Likewise, business investment and expenditures were 
 

3

 See app. G for a more detailed discussion about how exchange rate shifts and other macroeconomic factors

affect trade flows.

2-2

Table 2-1

U.S. exports of domestic merchandise, imports for consumption, and merchandise trade balance, by major

industry/commodity sectors, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,

Item 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––– Million dollars ––––––––

U.S. exports of domestic merchandise:

Agricultural products ........................... 59,494 55,569 -3,924 -6.6

Forest products ............................... 23,901 24,070 169 0.7

Chemicals and related products ................... 77,994 81,240 3,246 4.2

Energy-related products ......................... 12,346 11,957 -389 -3.2

Textiles and apparel ............................ 19,137 18,723 -415 -2.2

Footwear .................................... 720 693 -27 -3.7

Minerals and metals ............................ 40,559 39,890 -669 -1.6

Machinery ................................... 68,010 66,886 -1,124 -1.7

Transportation equipment ........................ 147,639 145,937 -1,702 -1.2

Electronic products ............................. 150,534 162,240 11,706 7.8

Miscellaneous manufactures ..................... 15,350 15,270 -81 -0.5

Special provisions ............................. 19,021 19,714 693 3.6

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 634,705 642,189 7,484 1.2

U.S. imports for consumption:

Agricultural products ........................... 47,328 49,469 2,141 4.5

Forest products ............................... 31,998 35,798 3,799 11.9

Chemicals and related products ................... 70,715 80,172 9,457 13.4

Energy-related products ......................... 56,254 69,473 13,219 23.5

Textiles and apparel ............................ 67,809 71,269 3,461 5.1

Footwear .................................... 13,879 14,074 194 1.4

Minerals and metals ............................ 80,739 81,717 978 1.2

Machinery ................................... 74,929 79,143 4,214 5.6

Transportation equipment ........................ 173,941 203,661 29,720 17.1

Electronic products ............................. 200,924 228,469 27,545 13.7

Miscellaneous manufactures ..................... 54,219 60,312 6,093 11.2

Special provisions ............................. 34,913 43,879 8,966 25.7

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 907,647 1,017,435 109,788 12.1

U.S. merchandise trade balance:

Agricultural products ........................... 12,166 6,100 -6,065 -49.9

Forest products ............................... -8,097 -11,727 -3,630 -44.8

Chemicals and related products ................... 7,279 1,068 -6,211 -85.3

Energy-related products ......................... -43,908 -57,516 -13,609 -31.0

Textiles and apparel ............................ -48,671 -52,547 -3,875 -8.0

Footwear .................................... -13,159 -13,380 -221 -1.7

Minerals and metals ............................ -40,181 -41,827 -1,646 -4.1

Machinery ................................... -6,919 -12,257 -5,338 -77.2

Transportation equipment ........................ -26,302 -57,724 -31,422 -119.5

Electronic products ............................. -50,390 -66,230 -15,840 -31.4

Miscellaneous manufactures ..................... -38,869 -45,042 -6,173 -15.9

Special provisions ............................. -15,892 -24,165 -8,273 -52.1

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... -272,942 -375,246 -102,305 -37.5

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

Note.--Calculations based on unrounded data.

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

further encouraged by robust corporate-sector performance, technological advances, and productivity

gains. However, continued strength of the U.S. dollar against the currencies of its major trade partners (the

Japanese yen being a notable exception) tended to lessen the competitiveness of U.S. merchandise in both

domestic and foreign markets.3 External economic factors such as differing growth rates among global

economies, structural impediments to trade in key foreign markets, price shifts for certain widely traded

products (e.g., crude petroleum), and technological change (e.g., increased demand for more advanced
 

4

 See ch. 3 for a discussion about the progress towards recovery in 1999 from financial conditions of the affected

East/Southeast Asian countries, Russia, and Brazil.

 

5

 Discussion of U.S. merchandise trade by industry/commodity sectors excludes products covered by special

provisions of the HTS in chs. 98-99.

2-3

computers and peripherals) likely had a greater direct influence on trade shifts in certain

industry/commodity sectors as well as on U.S. bilateral trade flows with specific partners. Trade impacts

were also evident in 1999 from recoveries in key regions of the world affected by financial crises in the

recent past as domestic consumption began to rebound and as firms in these nations continued to seek

outside markets for their output.4

U.S. TRADE BY INDUSTRY/COMMODITY GROUPS AND SECTORS

U.S. Trade Balance

Widening of the U.S. merchandise trade deficit during 1999 primarily reflects significant shifts in

key industry/commodity groups shown in tables C-1 through C-6 in appendix C. Trade shifts contributing

to a wider deficit were decreased exports (table C-2) of aircraft, spacecraft, and related equipment

(hereafter aircraft) and construction and mining equipment. Also contributing to a wider deficit were

substantial growth in imports (table C-3) of motor vehicles; computers, peripherals, and parts (hereafter

computer hardware); crude petroleum; medicinal chemicals (hereafter pharmaceuticals); and telephone and

telegraph apparatus. In contrast, notable counter-shifts somewhat tempered the deficit growth during this

period, particularly increased exports (table C-1) of semiconductors and integrated circuits (hereafter

semiconductors) and decreased imports (table C-4) of steel mill products.

Overall, the predominant industry/commodity groups contributing to the 1999 deficit were motor

vehicles, apparel, computer hardware, and crude petroleum (table C-6). Trade deficits in these four groups

together accounted for $219.5 billion, or about 58 percent of the U.S. merchandise trade deficit in 1999, a

decrease from the previous year when they accounted for a roughly 66-percent share. In contrast, the

largest surplus was again recorded for aircraft at $33.2 billion (table C-6). These five groups were not only

a large component of the 1999 U.S. trade position, but also exhibited significant shifts in exports, imports,

or both during 1999.

All major industry/commodity sectors, with the exceptions of agricultural products and chemicals

and related products, continued to register trade deficits in 1999 (table 2-1).5 However, trade surpluses in

these two sectors shrank, by almost $6.1 billion (50 percent) to $6.1 billion for agricultural products, and

by $6.2 billion (85 percent) to $1.1 billion for chemicals and related products. Further, all sectors

experienced erosion of their trade balances in 1999; the largest occurred in transportation equipment in

which the deficit widened by $31.4 billion (120 percent) to $57.7 billion, accelerating the trend in the

previous year. Other sectors exhibiting significant widening of their deficits were electronic products, which

grew by $15.8 billion (31 percent) to $66.2 billion, and energy-related products, which grew by $13.6

billion (31 percent) to $57.5 billion in 1999.

U.S. Exports

U.S. merchandise exports declined in 1999 for most all industry/commodity sectors, except

electronic products, chemicals and related products, and forest products (table 2-1). However, the overall

beneficial impact of export increases by these sectors on the merchandise deficit was somewhat mitigated
2-4

by decreased exports of agricultural products, transportation equipment, and machinery. The most

significant export shifts (exceeding $1.0 billion) in 1999 (in descending order of shifts) were:

Export sector Change, 1999 from 1998 1999 export level

(billion dollars) (percent) (billion dollars)

Increases:

Electronic products ............ 11.7 8 162.2

Chemicals and related products ... 3.2 4 81.2

Decreases:

Agricultural products .......... -3.9 -7 55.6

Transportation equipment ....... -1.7 -1 145.9

Machinery .................. -1.1 -1 66.9

Together, these five sectors recorded a net export gain totaling $8.2 billion, which slightly exceeded the net

increase of all U.S. merchandise exports of $7.5 billion in 1999. Further analyses of the underlying factors

and the leading products responsible for export shifts in these and other industry/commodity sectors are

provided in chapters 4-14.

U.S. Imports

U.S. merchandise imports rose in 1999 for every industry/commodity sector (table 2-1). A

substantial portion of the $109.8-billion increase in merchandise imports was accounted for by import

shifts exceeding $5.0 billion in five sectors (in descending order of shifts):

Import sector Change, 1999 from 1998 1999 import level

(billion dollars) (percent) (billion dollars)

Transportation equipment ........ 29.7 17 203.7

Electronic products ............. 27.5 14 228.5

Energy-related products .......... 13.2 24 69.5

Chemicals and related products .... 9.5 13 80.2

Miscellaneous manufactures ...... 6.1 11 60.3

Together, these five sectors accounted for $86.0 billion (78 percent) of the net increase in merchandise

imports in 1999. Further analyses of the underlying factors and the leading products responsible for import

shifts in these and other industry/commodity sectors are provided in chapters 4-14.

U.S. BILATERAL/MULTILATERAL TRADE

Significant Bilateral/Multilateral Shifts

Growth of the U.S. merchandise trade deficit during 1999 also reflected significant shifts with

certain key trade partners. Table 2-2 shows U.S. bilateral merchandise trade with its 10 largest partners 
2-5

Table 2-2

All merchandise sectors: U.S. exports of domestic merchandise, imports for consumption, and

merchandise trade balance, by selected countries and country groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,

Item 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––– Million dollars ––––––––

U.S. exports of domestic merchandise:

Canada ..................................... 137,768 145,731 7,964 5.8

Mexico ...................................... 75,369 81,381 6,011 8.0

Japan ....................................... 54,846 54,310 -535 -1.0

China ....................................... 13,908 12,585 -1,324 -9.5

Germany .................................... 25,026 25,151 126 0.5

United Kingdom ............................... 36,714 35,815 -899 -2.4

Korea ....................................... 15,979 22,038 6,059 37.9

Taiwan ...................................... 16,923 17,640 716 4.2

France ...................................... 16,676 17,654 978 5.9

Singapore .................................... 14,218 14,842 624 4.4

All Other ..................................... 227,277 215,041 -12,236 -5.4

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 634,705 642,189 7,484 1.2

EU-15 ...................................... 140,217 142,029 1,812 1.3

OPEC ...................................... 24,212 19,397 -4,814 -19.9

Latin America ................................. 135,852 133,944 -1,909 -1.4

CBERA ..................................... 19,200 19,030 -171 -0.9

Asia ........................................ 154,902 159,371 4,469 2.9

Sub-Saharan Africa ............................ 6,521 5,332 -1,190 -18.2

Central and Eastern Europe ...................... 2,787 2,650 -138 -4.9

U.S. imports for consumption:

Canada ..................................... 174,685 198,242 23,557 13.5

Mexico ...................................... 93,017 109,018 16,001 17.2

Japan ....................................... 121,313 130,951 9,638 7.9

China ....................................... 70,815 81,522 10,707 15.1

Germany .................................... 49,796 55,386 5,591 11.2

United Kingdom ............................... 34,617 38,773 4,156 12.0

Korea ....................................... 23,701 31,152 7,451 31.4

Taiwan ...................................... 32,985 35,057 2,072 6.3

France ...................................... 23,371 25,400 2,029 8.7

Singapore .................................... 18,216 18,120 -96 -0.5

All Other ..................................... 265,130 293,813 28,682 10.8

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 907,647 1,017,435 109,788 12.1

EU-15 ...................................... 174,881 194,409 19,528 11.2

OPEC ...................................... 34,336 38,892 4,557 13.3

Latin America ................................. 142,351 165,686 23,335 16.4

CBERA ..................................... 17,124 19,365 2,240 13.1

Asia ........................................ 346,893 382,342 35,449 10.2

Sub-Saharan Africa ............................ 13,359 13,750 391 2.9

Central and Eastern Europe ...................... 4,368 4,803 436 10.0

U.S. merchandise trade balance:

Canada ..................................... -36,918 -52,511 -15,593 -42.2

Mexico ...................................... -17,648 -27,637 -9,989 -56.6

Japan ....................................... -66,467 -76,641 -10,173 -15.3

China ....................................... -56,907 -68,937 -12,031 -21.1

Germany .................................... -24,770 -30,235 -5,465 -22.1

United Kingdom ............................... 2,097 -2,958 -5,055 (

2

)

Korea ....................................... -7,722 -9,115 -1,393 -18.0

Taiwan ...................................... -16,061 -17,417 -1,356 -8.4

France ...................................... -6,695 -7,747 -1,052 -15.7

Singapore .................................... -3,997 -3,277 720 18.0

All Other ..................................... -37,853 -78,771 -40,918 -108.1

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... -272,942 -375,246 -102,305 -37.5

EU-15 ...................................... -34,664 -52,380 -17,716 -51.1

OPEC ...................................... -10,124 -19,495 -9,371 -92.6

Latin America ................................. -6,499 -31,742 -25,243 -388.4

CBERA ..................................... 2,076 -335 -2,411 (

2

)

Asia ........................................ -191,991 -222,971 -30,980 -16.1

Sub-Saharan Africa ............................ -6,838 -8,418 -1,580 -23.1

Central and Eastern Europe ...................... -1,580 -2,154 -574 -36.3

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

 

2

 Not meaningful for purposes of comparison.

Note.--Calculations based on unrounded data. The countries shown are those with the largest total U.S. trade (U.S.

imports plus exports) in these products in 1999.

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

6

 See app. D for a list of countries/political entities included in selected country groupings of table 2-2.

 

7

 In recent years, these countries consistently appeared as the top five U.S. partners in terms of total trade. The

15 member countries of the EU are considered together as a single U.S. trade partner, for no individual EU country

was consistently ranked among the top five U.S. trade partners from year to year.

2-6

(ranked by total trade) and U.S. multilateral merchandise trade with selected country groups6 during 1999.

The U.S. trade deficit widened by $10.0 billion or more with each of its five major partners--Canada,

China, the European Union (EU), Japan, and Mexico7. Further analyses of the underlying factors and the

leading products responsible for trade shifts for each of these five major partners are provided in chapter 3.

Significance of International Trade in the Gross Domestic Product

To provide perspective about the significance of international trade in the U.S. economy,

merchandise trade values are compared with various macroeconomic measures. For the United States and

its five major trade partners, the relative sizes of their economies, U.S. bilateral merchandise trade flows,

and the ratios of such balances to U.S. gross domestic product (GDP) are compared in table 2-3. The U.S.

merchandise trade deficit with all worldwide trade partners combined was significantly higher in 1999--4.1

percent of the nominal U.S. GDP in that year--compared to ratios of 3.2 percent in 1998 and 2.7 percent in

1997. In 1999, U.S. merchandise trade deficits with its five major trade partners accounted for 3.0 percent

of nominal U.S. GDP. Over the 5-year period 1995-99, imports of merchandise (goods) became a larger

component of the U.S. economy, whereas exports of U.S. goods represented a smaller share of GDP in the

past couple of years (table 2-4). Merchandise exports increased by $95.7 billion (18 percent) to $642.2

billion and imports grew by $277.7 billion (38 percent) during 1995-99 to $1.0 trillion, whereas nominal

U.S. GDP rose $1.9 trillion (25 percent) over the same period to $9.3 trillion in 1999.

Table 2-3

U.S. bilateral merchandise trade balances with major partners, in dollars and as a ratio to nominal U.S.

gross domestic product (GDP), 1999

Partner

 Nominal

 GDP

 U.S. 

 exports

 U.S. 

 imports

U.S.

merchandise

trade balance

Ratio of the

merchandise

trade balance

to U.S. GDP

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

European Union (EU) ........... 8,182.5 142,029 194,409 -52,380 0.6

Japan ...................... 4,205.0 54,310 130,951 -76,641 0.8

China ....................... 1,016.8 12,585 81,522 -68,937 0.7

Canada ..................... 617.6 145,731 198,242 -52,511 0.6

Mexico ...................... 448.0 81,381 109,018 -27,637 0.3

United States ................. 9,256.1 642,189 1,017,435 -375,246 4.1

Note.--Calculations based on unrounded data.

Source: U.S. trade data compiled from official statistics of the U.S. Department of Commerce (USDOC). GDP data

for the United States are from USDOC, Bureau of Economic Analysis, Survey of Current Business, Table 1.1,

Gross Domestic Product, Apr. 2000, p. 41. Estimated GDP data for Canada, Japan, Mexico, EU, and China are

from U.S. Department of State, Country Reports on Economic Policy and Trade Practices, 1999, found at Internet

address http://www.state.gov/www/issues/economic/trade_reports/, retrieved June 6, 2000.
 

8

 The noticeable percentage-point decline in China’s merchandise trade as a share of its GDP during 1995-99

reflects the relatively high growth of its developing economy which outpaced the growth of its merchandise trade

(continued...)

2-7

Table 2-4

Components of U.S. gross domestic product (GDP) and trade as a share of GDP, 1995-99

Component 1995 1996 1997 1998 1999

Billion current dollars

Personal consumption expenditures:

Goods ............................. 2,087.0 2,190.6 2,284.6 2,407.1 2,601.7

Services ............................ 2,882.0 3,047.0 3,239.8 3,441.5 3,655.6

Gross private domestic investment ......... 1,143.8 1,242.7 1,383.7 1,531.2 1,622.7

Exports:

Goods ............................. 546.5 582.1 643.2 634.7 642.2

Services ............................ 234.7 255.8 279.0 285.1 299.3

Imports:

Goods ............................. 739.7 790.5 862.4 907.6 1,017.4

Services ............................ 145.2 154.8 171.2 185.5 203.1

Government consumption expenditures and

gross investment ..................... 1,372.0 1,421.9 1,481.0 1,529.7 1,630.1

 Gross Domestic Product ............ 7,400.5 7,813.2 8,300.8 8,759.9 9,256.1

Percent

Exports as a share of GDP:

Goods ............................. 7.4 7.5 7.7 7.2 6.9

Services ............................ 3.2 3.3 3.4 3.3 3.2

Imports as a share of GDP:

Goods ............................. 10.0 10.1 10.4 10.4 11.0

Services ............................ 2.0 2.0 2.1 2.1 2.2

Note.--Calculations based on unrounded data. Components of U.S. GDP may not sum to total, as merchandise

(goods) trade data are consistent with other trade statistics cited in this report.

Source: Merchandise trade data are compiled from official statistics of the U.S. Department of Commerce

(USDOC). All other data (balance-of-payments basis) are from USDOC, Bureau of Economic Analysis, Survey of

Current Business, Table 1.1, Gross Domestic Product, Apr. 2000, p. 41.

However, comparing U.S. global merchandise imports and exports as shares of GDP with similar

ratios for its major trade partners (table 2-5, with Germany in place of the EU, due to data availability)

indicates that, during 1995-99, global merchandise trade accounted for a smaller portion of GDP for the

United States and Japan (the world’s two largest economies), than for other major partners. In terms of

exports as a share of GDP in 1999, the United States (7 percent) lagged significantly behind China

(20 percent), Mexico and Germany (29 percent each), and Canada (37 percent). These U.S. trade partners

continued to benefit from sustained growth in the U.S. economy that provided a strong market for their

exports in recent years. Whereas the ratio of merchandise imports to GDP was slightly higher for the

United States than for Japan in 1999 (11 percent compared with 6 percent), it was roughly one-third of the

comparable ratio for Canada (34 percent) and Mexico (30 percent) and two-fifths the ratio for Germany

(28 percent). Cumulative percentage-point growth in the share of each country’s global merchandise export

and import trade to its nominal GDP during 1995-99 (table 2-5) indicates that the economies of most

leading trade partners are becoming increasingly more reliant on international merchandise trade than is

that of the United States.8
 

8

 (...continued)

the yen.

2-8

Table 2-5

Merchandise trade as a share of gross domestic product (GDP) for the United States and major trade

partners, 1995-99

(Percent)

Country 1995 1996 1997 1998 1999

Increase

 1995-99

Exports as a share of GDP:

United States ........... 7.4 7.5 7.7 7.2 6.9 -0.5

Japan ................. 8.6 8.9 9.8 9.9 9.4 0.8

China ................. 21.2 18.5 20.2 19.1 19.5 -1.7

Canada ............... 34.1 34.1 34.5 36.0 37.4 3.3

Mexico ................ 27.8 28.7 27.5 28.3 29.2 1.5

Germany .............. 21.7 22.4 24.5 25.8 28.9 7.3

Imports as a share of GDP:

United States ........... 10.0 10.1 10.4 10.4 11.0 1.0

Japan ................. 6.5 7.6 7.3 6.7 6.3 -0.2

China ................. 18.8 17.0 15.8 14.6 15.3 -3.5

Canada ............... 29.8 29.0 31.8 33.9 34.4 4.7

Mexico ................ 25.3 26.7 27.3 30.2 30.4 5.0

Germany .............. 19.2 19.6 21.3 22.0 27.8 8.6

Note.--Calculations based on unrounded data.

Source: U.S. trade data compiled from official statistics of the U.S. Department of Commerce (USDOC). GDP data

for the United States are from USDOC, Bureau of Economic Analysis, Survey of Current Business, Table 1.1,

Gross Domestic Product, Apr. 2000, p. 41. Estimated trade and GDP data for Japan, China, Canada, Mexico, and

Germany are from U.S. Department of State, Country Reports on Economic Policy and Trade Practices, 1999,

found at Internet address http://www.state.gov/www/issues/economic/trade_reports/, retrieved June 6, 2000.
 

1

 A review of the economic literature and government publications on this topic provided extensive references to

document recent developments in each of the countries recovering from financial and economic crises. Selected

references are cited herein to provide more detailed explanation.

 

2

 For more details about prior developments regarding the global financial crisis and trade developments for

these countries, see Carl F. Seastrum, “East/Southeast Asia,” Shifts in U.S. Merchandise Trade in 1998,

investigation No. 332-245, USITC publication 3220, Aug. 1999, pp. 3-1 through 3-11, Linda White, “Russia,”

Shifts in U.S. Merchandise Trade in 1998, pp. 3-12 through 3-18, and Tracy Quilter, “Brazil,” Shifts in U.S.

Merchandise Trade in 1998, pp. 3-19 through 3-25. For additional detailed treatment of background to the

financial crises by the USITC, see William L. Greene, “Korea’s Foreign Exchange Crisis and Its Implications for

U.S.-Korean Trade,” Industry Trade and Technology Review (ITTR), USITC publication 3182, Mar. 1999, pp. 1-

15; Diane Manifold, “Japan’s Financial Assistance to Asia,” International Economic Review (IER), USITC

publication 3254, Sept./Oct./Nov. 1999, p. 5; Karl Tsuji, “Thailand’s Financial Crisis and Progress Towards

Recovery--Implications for U.S. Trade,” ITTR, USITC publication 3253, Oct. 1999, pp. 15-38; Michael P. Barry,

The Russian Financial Crises (sic): A Look Back, Office of Economics working paper No. 2000-02-A, Feb. 2000;

and Michael P. Barry, Event Study of Russian Foreign Exchange Market, Office of Economics working paper No.

2000-02-B, Feb. 2000.

3-1

,,,,,,,,,,,,,,,,

CHAPTER 3

Significant Global Trade Developments

and Shifts with Leading Partners

This chapter examines noteworthy economic and trade developments among selected U.S. trade

partners during 1999. First, trade patterns with countries affected by recent financial crises have shifted

noticeably with these partners’ recoveries; the focus of the following section is on an assessment of

progress towards recovery in the seven affected countries. Second, significant shifts in U.S. trade are noted

with the top five U.S. trade partners; highlights of trade-related developments, analyses of trade trends, and

tabulation of significant shifts in trade for each of the top five U.S. trade partners are presented in the latter

section of this chapter.

REGIONAL FINANCIAL AND ECONOMIC CRISES1

Selected Economic and Financial Indicators

In 1999, Brazil, Indonesia, Korea, Malaysia, the Philippines, Russia, and Thailand2 exhibited

varying degrees of recovery from the economic and financial crises that engulfed their economies during

1997-98. Favorable indicators include positive economic growth, mostly stabilized or decreased rates of

unemployment, generally stabilized or increased nominal exchange rates against the U.S. dollar, mostly

increased world trade, and certain countries have had restored investor confidence (tables 3-1 and 3-2). The

annual rate of change in real gross domestic product (GDP) for these countries in 1999 ranged from 0.2

percent in Indonesia to 10.7 percent in Korea, which contrasted significantly with the declines that each

country registered in 1998 (table 3-1).

The Asian countries, with the exception of Indonesia, that experienced the financial “contagion”

that swept through the region starting in Thailand in July 1997 had reportedly stabilized their economies

and financial systems sufficiently by late 1999 for one observer to declare that the crisis appeared to be
3-2

Table 3-1

Regional financial crises countries: Real GDP, consumer prices, unemployment, goods trade balance,

goods exports, goods imports, average nominal exchange rates, interest rates, and international reserves

(excluding gold), 1998 and 1999

Country 1998 1999 1998 1999 1998 1999

Real GDP Consumer prices Unemployment

–––––––––––––––––Percentage change ––––––––––––––––– ––Percentage of labor force –– 

Brazil ........ -0.1 10.8 3.2 4.9 17.6 17.6

Indonesia ..... -13.2 0.2 58.4 20.5 210.0 210.0

Korea ....... -6.7 10.7 7.5 0.8 6.8 6.3

Malaysia ..... -7.5 5.4 5.3 2.7 33.4 33.4

Philippines .... -0.5 3.2 9.7 6.7 210.0 29.5

Russia ....... -4.5 3.2 27.7 85.9 11.9 413.2

Thailand ..... -10.4 4.2 8.1 0.3 54.4 54.2

Goods trade balance Goods exports Goods imports

–––––––––––––––––––––––––––––––––Billion dollars ––––––––––––––––––––––––––––––––

Brazil ........ -6.6 -1.2 51.1 48.0 57.7 49.2

Indonesia ..... 21.5 224.7 48.8 248.7 27.3 223.9

Korea ....... 39.0 25.0 132.3 144.7 93.3 119.8

Malaysia ..... 14.9 19.5 73.1 84.5 58.2 65.0

Philippines .... -0.2 5.9 29.5 36.7 29.7 30.7

Russia ....... 15.1 33.2 74.2 74.1 59.1 40.9

Thailand ..... 11.4 16.9 54.3 58.5 42.9 41.6

Average nominal

exchange rates6Interest rates7

International reserves

(excluding gold)

–Local currency per U.S. dollar– –––––––Percent –––––––– –––––––Billion dollars––––––– 

Brazil ........ 1.161 1.815 29.50 26.26 42.6 34.8

Indonesia ..... 10,013.6 7,855.2 62.79 23.58 22.7 26.4

Korea ....... 1,401.4 1,188.8 15.0 5.0 52.0 74.0

Malaysia ..... 3.9244 3.8000 8.46 3.38 25.6 30.6

Philippines .... 40.893 39.089 15.004 9.996 9.2 13.2

Russia ....... 9.7051 24.6199 50.6 14.8 7.8 8.5

Thailand ..... 41.359 37.844 13.02 1.77 28.8 34.1

 

1

 Bank of Brazil, “Statistical Tables,” Boletim do Banco Central do Brasil, Mar. 2000, found at Internet address

http://www.bcb.gov.br/ingles/hiie3040.htm, retrieved May 12, 2000.

 

2

 Economic Intelligence Unit (EIU), “Foreign Trade & Payments: Trade Surplus Increases Again,” Country

Reports Indonesia, Mar. 10, 2000, EIU CD-ROM Asia-Pacific Business Intelligence, Vol. II, 1993-May 2000.

 

3

 Department of Statistics Malaysia, Key Statistics - Malaysia, May 17, 2000, found at Internet address

http://www.statistics.gov.my/English/keystats.html, retrieved May 22, 2000. Data for 1999 estimated based on the

average of the percentages reported for Mar., June, Sept., and Dec.

 

4

 Jan.-June.

 

5

 Bank of Thailand, Population, Labour Force and Wage, found at Internet address

http://www.bot.or.th/bothomepage/databank/EconData/KeyEcon/tab17_e.htm, retrieved May 18, 2000.

 

6

 Brazilian real (principal rate), Indonesian rupiah (market rate), Korean won (market rate), Malaysian ringgit

(official rate), Philippines peso (market rate), Russian ruble (official rate), and Thai baht (official rate) for Brazil,

Indonesia, Korea, Malaysia, Philippines, Russia, and Thailand, respectively. Each country’s currency is displayed to

the number of decimal places as reported in the reference source, rather than being rounded to a common decimal

place, to avoid any loss of significant digits for particular currencies.

 

7

 Money market rate (the rate at which short-term borrowing is effected between financial institutions), except for

the Philippines, which is a treasury bill rate. Each country’s interest rate is displayed to the number of decimal

places as reported in the reference source, rather than being rounded to a common decimal place, to avoid any loss

of significant digits for particular interest rates.

Note.--Because of rounding, figures may not add to totals shown.

Source: International Monetary Fund (IMF), World Economic Outlook (Washington, DC: IMF, Apr. 2000, pp. 10, and

21, and “Statistical Appendix,” pp. 114, 117, 121-3, 129-131, and 138; and IMF, International Financial Statistics,

vol. 53, No. 4 (Washington, DC: IMF, Apr. 2000), various pages; except as noted above.
3-3

Table 3-2

Regional financial crises countries: Current account balance as a share of gross domestic product (GDP)

and in billions of dollars, and foreign direct investment (FDI), inflows 1998 and 1999

Country

Current account balance Foreign direct investment inflows

1998 1999 1998 1999 1998 1999

 ––Percentage of GDP–– ––––––––––––––––Billion dollars –––––––––––––––––

Brazil ................ -4.3 -4.1 1-33.6 1-24.4 428.5 431.0

Indonesia ............. 4.2 3.6 4.1 23.9 5-0.36 51.4

Korea ............... 12.7 6.1 40.2 25.0 65.5 68.5

Malaysia ............. 12.9 18.4 39.4 39.2 63.7 63.8

Philippines ............ 2.0 9.1 1.3 24.6 61.7 60.9

Russia ............... 0.9 10.8 2.1 214.6 72.2 81.5

Thailand ............. 12.7 9.1 14.0 11.1 66.9 65.8

 

1

 Bank of Brazil, “Statistical Tables,” Boletim do Banco Central do Brasil, Mar. 2000, found at Internet address

http://www.bcb.gov.br/ingles/hiie3040.htm, retrieved May 12, 2000.

 

2

 Jan.-Sept.

 

3

 Department of Statistics Malaysia, Malaysia’s Quarterly Balance of Payments Performance, July-Sept., 1999,

found at Internet address http://www.statistics.gov.my/English/BOP3QT-99e.htm, retrieved May 22, 2000. Data for

1999 are for Jan.-Sept.

 

4

 United Nations Conference on Trade and Development (UNCTAD), “Latin America and the Caribbean Attract

Largest Share of FDI in the Developing World in 1999,” UNCTAD press release TAD/INF/2835, Feb. 1, 2000, found

at Internet address http://www.unctad.org/en/press/pr2835en.htm, retrieved May 24, 2000. Data for 1999 are

estimated.

 

5

 Economist Intelligence Unit (EIU), “Data Summary,” Country Forecasts, Nov. 22, 1999, EIU CD-ROM AsiaPacific Business Intelligence, Vol. II, 1993-May 2000. Data for 1999 are estimated.

 

6

 UNCTAD, “Foreign Direct Investment Holds Steady in Developing Asia as a Whole in 1999--But With

Significant Variation Among Countries,” UNCTAD press release TAD/INF/2834, Jan. 25, 2000, found at Internet

address http://www.unctad.org/en/press/pr2834en.htm, retrieved May 24, 2000. Data for 1999 are estimated.

 

7

 EIU, “Foreign Direct Investment in Eastern Europe,” Crossborder Monitor, Oct. 20, 1999, EIU CD-ROM

Western European Business Intelligence 1993-May 2000.

 

8

 Institute for International Finance, Inc., Capital Flows to Emerging Market Economies, Apr. 13, 2000, p. 8,

found at Internet address http://www.iif.com, retrieved May 24, 2000.

Source: International Monetary Fund (IMF), World Economic Outlook (Washington, DC: IMF, Apr. 2000), p. 5, and

“Statistical Appendix,” p. 150; and IMF, International Financial Statistics, vol. 53, No. 4 (Washington, DC: IMF,

Apr. 2000, various pages; except as noted above.
 

3

 Timothy Lane, “The Asian Financial Crisis: What Have We Learned?” Finance & Development, Sept. 1999,

p. 44. 

 

4

 The Manila Framework Group when it referred to “better-than-expected improvement in the economic outlook

of most Asian economies” accompanied by a need to continue to restructure financial and corporate sectors,

building on “progress on bank and corporate sector restructuring, strengthening of regulatory infrastructure, and

improve (sic) merits in insolvency procedures and corporate governance.” Manila Framework Group, “Sixth

Meeting of the Manila Framework Group, 10-21 March 2000,” press release, found at Internet address

http://www.treasury.gov.my/org/ekonomi/Manila_Framework.htm, retrieved May 18, 2000. The group has 14

members, including the 5 countries affected by the Asian financial crisis, and the United States.

 

5

 Aaron Tornell, Common Fundamentals in the Tequila and Asian Crises, National Bureau of Economic

Research working paper No. W7139, May 1999, found at Internet address http://papers.nber.org, retrieved

May 12, 2000.

 

6

 For further details see East Asia: Regional Economic Integration and Implications for the United States,

USITC publication 2621, May 1993, various pages; Diane Manifold, Japanese Corporate Activities in Asia:

Implications for U.S.-Japan Relations, Office of Economics working paper No. 96-04-A, revised Feb. 1997, pp. 3

and 21-23; and Manifold, “Japan’s Financial Assistance to Asia,” p. 5.

 

7

 Akiko Kashiwagi and Kathryn Tolbert, “Japan Says Economy Grew 0.5% in 1999: Positive Annual Report is

First Since ‘96,” Washington Post, June 9, 2000, p. E3; and Stephanie Strom, “Japanese Economy Rose 2.4% in

Quarter: But No One is Proclaiming That Its ‘Severe Situation’ Has Ended,” New York Times, June 10, 2000,

p. B2.

 

8

 International Monetary Fund (IMF), World Economic Outlook 2000 (Washington, DC: IMF, Apr. 2000),

pp. 51-52, found at Internet address http://www.imf.org, retrieved Apr. 13, 2000, stated that “priorities include

initiatives to assist further financial sector and corporate restructuring, as well as broader institutional, legal, and

regulatory reforms aimed at strengthening the environment for market-based activities;” and “Let the Good Times

Roll: Emerging Economies Are Enjoying a New Boom. Might it lead to Another Future Bust?” Economist,

Apr. 15, 2000, pp. 76-78.

3-4

over.3 However, it was also noted that much structural reform, particularly to repair the underlying

financial fragility exposed by the Asian crisis, remained to be completed.4 Another analyst identified three

flaws that could indicate countries that would be vulnerable to a future crisis: “...little in the way of cash

reserves to defend their currency, weak banks, and a recent history of sharp currency appreciation.”5 The

financial crises forced the affected countries, except Malaysia, to abandon managed, fixed exchange rate

policies and allow varying degrees of flexible exchange rates, as the cost to these economies of high interest

rates and of expending hard currency reserves to defend their currencies proved to be too great.

Continued strong economic growth (i.e., in the United States) or significant turn-around in the

major economies (i.e., Western Europe and Japan) could prove very important to sustaining the recovery of

these countries, at least in the short term. Recovery of the Japanese economy would be especially important

for the affected Asian countries because of the complex interconnection of foreign direct investment (FDI)

and international trade, in which Japan is a leading supplier and trade partner.6 However, Japan’s economy

has been stagnant or decreasing throughout the 1990s.7

The pace of economic recovery of the seven countries is related to the degree of success that each

achieved in solving structural problems in the financial and corporate sectors, in providing the appropriate

mix of restraint or stimulation in monetary and fiscal policy while maintaining relatively stable exchange

rates and restoring confidence in the value of the country’s currency, and in renewing general investor

confidence. Data for certain indicators often used by analysts to assess the economic and financial health of

countries are shown in tables 3-2 and 3-3. However, some observers have expressed concerns that the rapid

turnaround in economic growth experienced by these countries may lead them to be complaisant in

continuing to reform their economies, particularly in the financial and corporate sectors.8 The degree to

which each country has recovered from its crisis and how well it has addressed such issues as structural

problems are explored below.
3-5

Table 3-3

Regional financial crises countries: U.S. exports of domestic merchandise, imports for consumption, and

merchandise trade balance, 1998 and 19991

Change, 1999 from 1998

Type of trade/country 1998 1999 Absolute Percent

––––––––Million dollars ––––––––– 

U.S. exports of domestic merchandise:

Brazil ........................................ 14,293 12,331 -1,962 -13.7

Indonesia ..................................... 2,225 1,890 -335 -15.1

Korea ........................................ 15,979 22,038 6,059 37.9

Malaysia ..................................... 8,526 8,558 32 0.4

Philippines .................................... 6,537 7,019 482 7.4

Russia ....................................... 3,543 1,823 -1,719 -48.5

Thailand ...................................... 5,029 4,745 -284 -5.6

Total ....................................... 56,132 58,403 2,272 4.0

U.S. imports for consumption:

Brazil ........................................ 9,953 11,273 1,320 13.3

Indonesia ..................................... 9,262 9,389 127 1.4

Korea ........................................ 23,701 31,152 7,451 31.4

Malaysia ..................................... 18,817 21,391 2,575 13.7

Philippines .................................... 11,875 12,379 504 4.2

Russia ....................................... 5,675 5,706 31 0.5

Thailand ...................................... 13,366 14,296 930 7.0

Total ....................................... 92,649 105,586 12,937 14.0

U.S. merchandise trade balance:

Brazil ........................................ 4,340 1,058 -3,282 -75.6

Indonesia ..................................... -7,037 -7,499 -462 -6.6

Korea ........................................ -7,722 -9,115 -1,393 -18.0

Malaysia ..................................... -10,290 -12,833 -2,543 -24.7

Philippines .................................... -5,337 -5,360 -22 -0.4

Russia ....................................... -2,133 -3,882 -1,750 -82.1

Thailand ...................................... -8,337 -9,551 -1,214 -14.6

Total ....................................... -36,517 -47,182 -10,665 -29.2

 

1

 Import values are based on Customs value; export values are based on f.a.s. value, U.S. port of export.

Note.--Calculations based on unrounded data.

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

9

 Unless indicated otherwise, trade data are compiled from official statistics of the U.S. Department of

Commerce (USDOC).

 

10 See table G-1 for the exchange rate shift of the Brazilian real compared to the U.S. dollar during 1999.

 

11 On the one hand, high interest rates in Brazil and public anxiety about layoffs discouraged consumer

purchases of big ticket items such as computers and automobiles. On the other hand, privatization in the

telecommunications sector and pent-up consumer demand for telephone service drove related growth in U.S.

exports.

 

12 U.S. Department of State (State Dept.), 1999 Country Reports on Economic Policy and Trade Practices:

Brazil, Mar. 2000, found at Internet address http://www.state.gov/www, retrieved Mar. 24, 2000.

3-6

U.S. Trade Flows

During 1999, after most economies had been stabilized and began to grow again, these countries,

with the exceptions of Indonesia and Russia, experienced a rebound in trade with the United States (table 3-

3). The U.S. trade deficit with these countries expanded in 1999 by $10.7 billion (29 percent) to

$47.2 billion. This deficit accounted for 13 percent of the U.S. global merchandise trade deficit in 1999.

U.S. exports to the seven countries rose during 1999 by $2.3 billion (4 percent) to $58.4 billion. Such

exports of semiconductors and integrated circuits (hereafter semiconductors) grew sharply, by $4.2 billion

(37 percent) to $15.7 billion.9 In contrast, U.S. exports of aircraft, spacecraft, and related equipment

(hereafter aircraft) decreased significantly, by $1.9 billion (33 percent) to $3.8 billion. Whereas U.S.

exports to Korea rebounded during 1999, by $6.1 billion (38 percent) to $22.0 billion, those to Brazil

continued to fall, dropping by $2.0 billion (14 percent) to $12.3 billion and those to Russia reversed course

and decreased by $1.7 billion (49 percent) to $1.8 billion.

U.S. imports from the seven countries also increased during 1999 by $12.9 billion (14 percent) to

$105.6 billion. Computers, peripherals, and parts (hereafter computer hardware); semiconductors; motor

vehicles; and telephone and telegraph apparatus (hereafter telecommunications equipment) all registered

increases ranging from $3.7 billion to $1.1 billion. U.S. imports of steel mill products from the seven

countries decreased by $1.2 billion. Although each country contributed to increased U.S. imports during

1999, such imports from Russia remained virtually unchanged at $5.7 billion whereas those from Korea

climbed sharply, by $7.5 billion (31 percent) to $31.2 billion.

Recent Trends: Brazil

• The United States experienced the greatest absolute decline in its trade position with Brazil, among

the seven countries in 1999. The U.S. trade surplus with Brazil continued to decrease, falling by

$3.3 billion (76 percent) to $1.1 billion, as U.S. exports dropped by $2.0 billion and imports rose

by $1.3 billion, consistent with the significant decrease in the value of the Brazilian real compared

to the U.S. dollar.10 U.S. exports to Brazil fell across a broad range of products led by computer

hardware and by certain motor-vehicle parts (vehicle parts). However, exports of electronic

products such as semiconductors, radio and television broadcasting equipment, and

telecommunications equipment all posted notable increases.11 Increased U.S. imports from Brazil

were led by aircraft and by coffee. Brazil reportedly instituted certain measures to discourage

imports and encourage exports during 1999.12
 

13 Ibid.; IMF, Letter of Intent of the Government of Brazil, Apr. 20, 2000, and attachments, found at Internet

address http://www.inf.org, retrieved June 6, 2000 contain a comprehensive discussion of economic conditions in

1999 and benchmark projections for the future, and progress made on financial and economic structural reforms

and goals for further reforms; Economist Intelligence Unit (EIU), “Summary--Brazil 1st Quarter 2000,” Country

Reports Brazil, Feb. 25, 2000, EIU CD-ROM Western Hemisphere Business Intelligence, 1993-May 2000; and

IMF, World Economic Outlook, 2000, pp. 18-21 and 67-77.

 

14 Airman Raga, Governor of the Central Bank of Brazil, “Monetary Policy During the Transition to a Floating

Exchange Rate: Brazil’s Recent Experience,” Finance & Development, vol. 37, No. 1, Mar. 2000, pp. 16-18.

 

15 IMF, Memorandum of Economic Policies, Nov. 12, 1999, found at Internet address http://www.imf.org,

retrieved May 11, 2000; and Stephen Buckley, “Brazilian Economy Back From the Brink: Tough New Policies

Helped Rescue the Nation,” Washington Post, Apr. 1, 2000, p. A13.

 

16 IMF, World Economic Outlook, 2000, p. 20. The Governor of the Central Bank of Brazil saw this inflation

targeting commitment as being very important to restoring confidence in Brazil’s resoluteness in meeting its policy

goals. The idea of targets was introduced in Mar. 1999, when a goal of reducing inflation to a single-digit

annualized rate was established. In June 1999, the Central Bank was given the responsibility to carry out a formal

annual inflation targeting framework using monetary policy aimed at the broad-based consumer price index known

as the IPCA. It met the goal for 1999. Fraga, “Monetary Policy,” pp. 17-18.

 

17 IMF, Memorandum of Economic Policies; Buckley, “Brazilian Economy Back From the Brink,” p. A13; and

Fraga, “Monetary Policy,” pp. 17-18.

 

18 IMF, World Economic Outlook, 2000, p. 18; IMF, Memorandum of Economic Policies; and Michael Mussa,

IMF Economic Counselor and Director, IMF Research Department, “Press Conference on Exchange Rate Regimes

in an Increasingly Integrated World Economy,” Apr. 14, 2000, found at Internet address http://www.imf.org,

retrieved May 11, 2000.

 

19 “Progress and Pitfalls in Brazil’s Public Finances,” Economist, May 6, 2000, p. 37.

3-7

• Both outside observers13 and Brazilian authorities14 agree that Brazil has made a better than

expected recovery from its financial and economic crisis. Brazilian real GDP growth was up by 0.8

percent in 1999, after having decreased slightly in 1998 and by much less than the declines

experienced in the Asia countries and in Russia.

• In late 1998 the Brazilian real, which was tied to the dollar by a managed peg and was perceived to

be overvalued, came under severe pressure, in the aftermath of international investors’ loss of

confidence in emerging markets after Russia’s bond default, and was sharply devalued and

subsequently allowed to float freely against the dollar in January 1999. The average annual

nominal exchange rate in 1999 increased by 0.654 reals per U.S. dollar (56 percent) to 1.815 reals

per U.S. dollar.

• Brazilian interest rates were raised significantly to preserve foreign exchange reserves needed to

finance the overall merchandise trade deficit and to stabilize the currency, with rates on loans to

commercial banks reportedly reaching as high as 45 percent before falling to 18.5 percent during

the last week of March 2000.15

• Brazilian policy measures credited for improved economic indicators included tight monetary

policy by the Central Bank, with inflation targeting;16 restrained fiscal spending by the central

government; and legislative progress in trimming social security spending and bringing regional

and local government spending under control.17 The International Monetary Fund (IMF) identifying

Brazil’s fiscal deficit as the key measure to correct, characterized these steps as being sufficient to

satisfy conditions attached to a $41.5 billion aid package.18 However, some observers have

expressed concern that success so far and renewed growth will lead to complaisance in continuing

to address further necessary reforms.19
 

20 Fraga, “Monetary Policy,” p. 18; and United Nations Conference on Trade and Development (UNCTAD)

“Latin America and the Caribbean Attract Largest Share of FDI in the Developing World in 1999,” UNCTAD

Press Release TAD/INF/2835, Feb. 1, 2000, found at Internet address http://www.unctad.org, retrieved May 24,

2000. The latter source reported that the share of privatization-related FDI in Brazil rose from 22 percent in 1998

to 28 percent in 1999.

 

21 IMF, World Economic Outlook, 2000, pp. 70 and 72.

 

22 U.S. State Dept., 1999 Country Reports: Indonesia, Mar. 2000. This report commented that “Indonesia still

faces daunting economic problems;” EIU, “Outlook for 2000-01: Economic Stability Looks Well Established”

Country Reports Indonesia, Mar. 10, 2000, EIU CD-ROM Asia-Pacific Business Intelligence, vol. II, 1993-

May 2000; and IMF, World Economic Outlook, 2000, pp. 22-24 and 81-83, which stated on page 24, “Indonesia

faces the most severe challenges regarding economic restructuring, and full implementation of the new

government’s ambitious and wide-ranging program of reforms is needed. Policy priorities are to complete the bank

recapitalization program and to step up the recovery and restructuring of corporate debt, including strengthening

the state institutions involved in the reform process.”

 

23 IMF, World Economic Outlook, 2000, pp. 24 and 85; EIU, “Foreign Trade & Payments: Trade Finance

Remains a Serious Bottleneck,” Country Reports Indonesia, Dec. 8, 1999, EIU CD-ROM Asia-Pacific Business

Intelligence, vol. II, 1993-May 2000, reported that the supply bottlenecks continue to exist because of problems in

the banking and corporate sector. Letters of credit are not being honored because of lack of confidence in

Indonesian banks, and local banks had little credit available to provide working capital to exporters. International

trade finance schemes worked out in 1998 had expired and the Ministry of Finance was not yet guaranteeing loans,

as it was required to do by a new law. The full range of problems was outlined in IMF, Indonesia Letter of Intent,

January 20, 2000, and the attached Memorandum of Economic and Financial Policies (MEFP), found at Internet

address http://www.imf.ogr, retrieved May 11, 2000. An IMF official characterized the commitments made in this

letter as “a bold and comprehensive program.” The IMF approved a 3-year, Extended Fund Facility of about

$5 billion, with about $349 billion available immediately. Future disbursements were to depend upon Indonesia

meeting performance targets and program reviews, although additional financing reportedly was coming from the

World Bank, the Asian Development Bank, the Consultative Group for Indonesia, and bilateral official

contributions (especially Japan). “IMF Approves US$5 Billion Extended Arrangement for Indonesia,” Press

Release No. 00/4, Feb. 4, 2000, found at Internet address http://www.imf.org, retrieved May 11, 2000.

3-8

• Overall policy measures restored investor confidence in Brazil’s improving economic and financial

health that an estimated record FDI inflow of $31.0 billion in 1999 (up from the actual $28.5

billion in 1998) totally financed the current account deficit.20 Because the corporate and financial

sectors had largely hedged against the risk of devaluation, Brazil avoided the widespread financial

stresses in the banking and corporate sectors experienced by the Asian countries and Russia.21

Recent Trends: Indonesia

• The U.S. trade deficit with Indonesia increased in 1999 by $462 million (7 percent) to $7.5 billion

as U.S. exports decreased by $335 million and U.S. imports increased by $127 million. A decrease

in shipments of aircraft to Indonesia accounted for most of the export decline. Computer hardware

accounted for all the growth in U.S. imports, which was partially offset by a decrease in imports of

natural rubber.

• Many observers have noted that economic recovery was better than expected in Indonesia, the

hardest hit country in Asia, but albeit still weak.22 Further, many reforms remain to be undertaken

especially, but not limited to, banking and corporate financial restructuring.23

• A series of banking crises exacerbated the Indonesian financial and economic crisis that began

when Indonesia unpegged the rupiah from the dollar, subsequent to Thailand unpegging its
 

24 Charles Enoch, Interventions in Banks During Banking Crises: The Experience of Indonesia, IMF policy

discussion paper PDP/00/2 (Washington, DC: IMF, Mar. 2000), pp. 1, 3, 5, 7, 24-25, and 27; and IMF, “Banking

Crises: Indonesia’s Experience, In Some Crises, Bank Closures May Be More Effective Than Resolution Efforts,”

IMF Survey, vol. 29, No. 10, May 22, 2000, pp. 166-167. The author notes that four major sets of bank closures

occurred between Nov. 1997 and Mar. 1999, and that failure to properly implement the Nov. 1997 closures and the

promised macroeconomic programs resulted in both a flight from the banking system and from the currency.

 

25 “Indonesia Financial Problems,” world business briefs, New York Times, Mar. 29, 2000, found at Internet

address http://www.nytimes.com, retrieved Mar. 29, 2000.

 

26 IMF, “IMF Completes First Review of Indonesia Under Its Extended Agreement,” news brief No. 00/38,

June 2, 2000, found at Internet address http://www.imf.org, retrieved June 5, 2000; and IMF, Indonesia Letter of

Intent, and attached MEFP, May 17, 2000, found at Internet address http://www.imf.org, retrieved June 5, 2000.

The MEFP states that the government remains committed to the promises made in the Jan. 20, 2000, MEFP and

“at this first Review, the focus has been on elaborating aspects of the approved FY2000 budget, and carrying

forward banking and corporate sector reforms.”

3-9

currency, leading to an almost 40-percent depreciation by October 1998.24 According to the IMF,

implementation by Indonesian authorities of the March 1999 bank closures was comprehensive in

nature and based on transparent, uniform, simple, and defensible criteria, with no exceptions to the

specified rule, and was “well-received by the markets” and even by observers who had been critical

of earlier efforts. IMF reports indicate that because bank restructuring was perceived to be at the

heart of economic revival, market interest rates began to fall rapidly and expectations for the

economy and the banking system “dramatically improved.”

• Although the IMF suspended further distributions of funds in February 2000 because Indonesia did

not meet reform conditions,25 by May 2000, Indonesia and the IMF reportedly had reached a new

agreement that would allow resumption of lending in exchange for renewed efforts to implement

needed policies and reforms.26

Recent Trends: Korea

• Total U.S. trade (exports plus imports) with Korea increased sharply in 1999 as the Korean

economy rebounded the strongest, among the seven countries. Although U.S. exports rose by $6.1

billion (38 percent) to $22.0 billion, the trade deficit with Korea grew by $1.4 billion (18 percent)

to $9.1 billion. A major explanation of this trend is the extensive two-way trade in electronic

goods, in which significant growth in U.S. imports of computer hardware, semiconductors, motor

vehicles, telecommunications equipment, and consumer electronics (except televisions) comprised

the largest share of the $7.5 billion (31 percent) growth in U.S. imports to $31.2 billion. The

overall rise in imports was tempered by a decrease in steel mill products which was influenced by

U.S. antidumping measures. Demand in Korea, particularly among export-oriented manufacturers,

fueled U.S. exports of semiconductors; computer hardware; semiconductor manufacturing

equipment and robotics; telecommunications equipment; and scales and weighing machinery. U.S.

exports of cotton, not carded or combed, registered a large decline as the Korean textile and

apparel industries continued to contract out production in the face of losing competitive position to

Asian sources with lower labor costs.

• Although certain financial and corporate reforms remain to be addressed, Korea’s movement

toward economic recovery is reflected by 10.7 percent real GDP growth (about twice that of

Malaysia with the next-fastest growth), only an 0.8-percent increase in consumer prices, decreased

unemployment, a surge in both exports and imports (the latter reflecting increased domestic

demand and demand for inputs used in export-oriented products), an appreciation in the nominal
 

27 Ministry of Finance and Economy, G-20 Report: Korea’s Crisis Resolution and Its Policy Implications, The

Republic of Korea, final draft, Dec. 12, 1999, pp. 43-52, found at Internet address http://www.mofe.go.kr, retrieved

Mar. 31, 2000; EIU, “Output & Demand: Private Consumption Growth Continues to Quicken,” “Output &

Demand: Mfg (sic) Investment Grows Strongly But Is Patchy,” and “Output & Demand: Export Volume Growth

Remains Robust,” Country Reports South Korea, Jan. 21, 2000, EIU CD-ROM Asia-Pacific Intelligence, vol. I,

1993-May 2000; Kalpana Kochhar and others, Republic of Korea: Economic and Policy Developments

(Washington, DC: IMF, Feb. 2000), IMF staff country report No. 00/11, esp. pp. 9-11 and 16-19; U.S. State Dept.,

1999 Country Reports: Korea, Mar. 2000; IMF, World Economic Outlook 2000, pp. 22-24 and 77-86.

 

28 Dhaneshwar Ghura, “Building Financial Stability: Korea’s Crisis,” Mar. 6, 2000, pp. 77-80; IMF, World

Economic Outlook, 2000, pp. 24 and 84-85; and Stanley Fischer, “Press Conference of Stanley Fischer,”

Apr. 13, 2000.

 

29 Chaebol are conglomerates of many companies clustered around one holding company and unlike many of

Japan’s keiretsu (which integrate vertically in the same industry), tend to spread across industries and have a

centralized control structure. Four “superchaebol” (Samsung, Daewoo, Lucky Goldstar Electronics (LG Group),

and Hyundai) reportedly have sales which account for about 40 percent to 45 percent of Korea’s GDP. “South

Korea: The Chaebol Economy,” found at Internet address http://www.megastories.com/seasia/skorea/chaebol,

retrieved June 16, 2000.

 

30 Samuel Len, “Korean Conglomerates Remain Entrenched: Stock Exchange Says Efforts to Unravel

Ownership Fall Short,” New York Times, Sept. 21, 1999, p. C8; EIU, “Money & Finance: IMF Bows Out,”

“Outlook for 2000-01: Reforms May Pause,” “Economic Policy: Opposition to Foreign Ownership of So (sic)

Korean Cos (sic),” and “Economic Policy: Chaebol Still Dominate the Economy,” Country Reports Korea,

Jan. 21, 2000; Moon Ihlwan, “South Korea: Can Reform Survive the Next Election?” Business Week, Mar. 13,

2000, p. 60; Moon Ihlwan, “The Next Frontier in Remaking the Chaebol,” Business Week, Apr. 24, 2000, p. 66E8;

and IMF, World Economic Outlook 2000, pp. 84-85.

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value of the won, a sharp fall in interest rates, a significant increase in international reserves

(excluding gold), and a notable increase in FDI inflows.27

• Korea (and Malaysia) reportedly experienced more progress in corporate and financial sector

reform than other Asian crisis countries.28 However, the transitional problems of shifting from a

state-directed economic system based on the Japanese model to a more market-oriented economy,

of certain remaining weaknesses in the financial system, and of uncertain stability of the chaebol

system29 have not been fully resolved.

• Although the IMF is scheduled to discontinue its oversight of the Korean economy at the end of

2000, some observers are concerned that the initial robust recovery of Korea’s economy will

reduce pressure to sustain necessary reforms of corporate and financial sectors.30

Recent Trends: Malaysia

• The U.S. trade deficit with Malaysia registered the second-largest increase among the seven

countries, up by $2.5 billion (25 percent) to $12.8 billion. U.S. imports accounted for all of this

growth, increasing by $2.6 billion (14 percent) to $21.4 billion, whereas exports remained flat at

$8.6 billion. Two-way trade increased in certain electronic products. U.S. exports of

semiconductors, and printed circuits increased in 1999, whereas imports of computer hardware,

semiconductors, telecommunication equipment, and television receivers and video monitors

accounted for the bulk of the import growth. Aircraft exported to Malaysia dropped sharply, down

by $857 million (67 percent) to $420 million in 1999.
 

31 “Malaysian External Trade Statistics (METS), Mar. & Jan.-Mar. 2000,” Department of Statistics Malaysia

(DSM), May 17, 2000, found at Internet address http://www.statistics.gov.my, retrieved May 22, 2000, and

“METS, 1999,” DSM, May 17, 2000, found at Internet address http://www.statistics/gov.my, retrieved

May 22, 2000.

 

32 Ibid.

 

33 Malaysia instituted selective capital controls on Sept. 1, 1998, and pegged the ringgit at 3.8 per U.S. dollar

the next day. U.S. State Dept., 1999 Country Reports: Malaysia, Mar. 2000; and EIU, “Outlook for 2000-01: Slow

Pace of Bank Lending Is a Potential Risk,” Country Reports Malaysia, Feb. 8, 2000. See Seastrum,

“East/Southeast Asia,” p. 3-6, for detailed descriptions of measures taken to control capital movements and the

exchange rate. The IMF indicated that properly designed macroeconomic policies are particularly important to

effectively use capital controls; for an explanation of the difficulties, see IMF staff report, “While Short-Term

Controls May Be Useful, Free Capital Flows Provide Long-term Benefits,” IMF Survey, vol. 29, No. 2,

Jan. 24, 2000, pp. 31-32. 

 

34 EIU, “Domestic Economy: Economic Trends,” Country Reports Malaysia, Feb. 8, 2000, and EIU CD-ROM

Asia-Pacific Intelligence, vol. I, 1993-May 2000.

 

35 Organization for Economic Cooperation and Development (OECD), “Developments in Selected Non-Member

Economies,” OECD Economic Outlook 66 (Paris: OECD, Dec. 1999), p. 129.

 

36 Ibid., pp. 127-129; EIU, “Summary--Malaysia 1st Quarter 2000,” “Economic Structure: Annual Indicators,”

“Domestic Economy: Economic Trends,” “Industry: Manufacturing Output and Sales Rise Ever Higher,” and

“Industry: More Surplus Capacity Comes on Stream,” Country Reports Malaysia, Feb. 8, 2000; U.S. State Dept.,

1999 Country Reports: Malaysia, Mar. 2000; and IMF, World Economic Outlook 2000, Apr. 2000, pp. 22-24 and

77-86.

3-11

• According to Malaysian official statistics, the country recorded its twenty-ninth consecutive

monthly merchandise trade surplus in March 2000.31 The trade surplus for 1999 expanded by

24 percent compared to the 1998 level because of faster growth of exports (up by 12 percent) than

of imports (up by 9 percent). Electrical and electronic products accounted for 58 percent of the

value of all Malaysian exports in 1999, and growth of these products was 22 percent in that year.

Electronic integrated circuits accounted for the largest share (27 percent) of these products in

1999, and recorded 24 percent growth. The United States, Japan, and Singapore were the three

principal trade partners in 1999, accounting for 51 percent of Malaysia’s total trade.32

• Malaysia followed a unique path among the seven countries toward solving its financial crisis

(starting in 1998) by departing from guidance of the IMF, imposing selective capital controls on

movements of capital, and temporarily freezing certain financial assets to maintain a fixed

exchange rate against the U.S. dollar.33 The purpose of these policies was to stabilize the currency

while pursuing expansive monetary and fiscal policy to stimulate the economy. These measures

allowed Malaysia to implement less restrictive monetary and fiscal policies than those implemented

by other afflicted countries while pursuing structural reforms in the financial and corporate

sectors.34 The Malaysian Government reportedly exercised more extensive intervention in the

financial reform process than did governments of other Asian countries.35

• The Malaysian economy rebounded strongly in 1999.36 Although the real GDP rate of change

recorded in 1998 was the third-largest decrease among the seven countries, it recovered to be the

second-best increase, 5.4 percent, in 1999. Strong growth in Malaysian exports led GDP growth

and contributed to a notable increase in international reserves (excluding gold), a stable current

account balance, and steady levels of FDI inflows. Concurrently, Malaysia had the lowest interest

rates among the seven countries, the lowest unemployment rate, and among the smallest increases

in consumer prices.
 

37 Fischer, “Press Conference of Stanley Fischer,” characterized Malaysia and Korea as having “made more

progress on banking sector reform than other crisis countries.” IMF, World Economic Outlook 2000, pp. 84-85

states that “Korea and Malaysia have achieved the most progress in restructuring and strengthening the financial

sector,” and “This corporate reform process has advanced the most in Korea and Malaysia.” However, the OECD

warned that the government of Malaysia had assumed a higher risk for itself by the most direct intervention in the

financial and corporate sector of these Asian countries. Even with government-established lending goals, banks

reportedly had not met their goals. OECD, “Developments in Selected Non-Member Economies,” p. 129. See also,

EIU, “Financial Services: Slow Pick-up (sic) in Lending,” and “Outlook for 2000-01: Slow Pace of Bank Lending

Is a Potential Risk,” and “Domestic Economy: Economic Trends,” Country Reports Malaysia, Feb. 8, 2000. The

latter article also warns of large debt levels of corporations and excess production capacity.

 

38 U.S. State Dept., 1999 Country Reports: Philippines, Mar. 2000, reported that “significant progress” had

been made during the Aquino and Ramos administrations in “economic liberalization and deregulation.” See also

IMF, World Economic Outlook 2000, Apr. 2000, p. 84; and Asian Development Bank (ADB), “Bank and

Corporate Restructuring,” Asia Recovery Report 2000, Mar. 2000, p. 62. For a detailed analysis of reforms made

and of those still needed, see especially Piyabha Kongsamut, “Philippines: Growth and Reform Agenda,” IMF

Survey, vol. 29, No. 9, May 8, 2000, pp. 158-160; and M. Rodlauer and others, Philippines: Toward Sustainable

and Rapid Growth, Recent Developments and the Agenda Ahead, IMF occasional paper No. 187 (Washington,

DC: IMF, Mar. 2000), found at Internet address http://www.imf.org, retrieved May 10, 2000.

 

39 U.S. State Dept., 1999 Country Reports: Philippines, Mar. 2000, discusses the “long-standing problem” of

public finances as being particularly important, especially the inability of the government to collect sufficient

revenues because of “weak tax administration and collection,” which has caused higher domestic interest rates and

led “the government to rely more heavily on foreign borrowings.”

 

40 Jun Nagayasu, “Currency Crisis and Contagion: Evidence from Exchange Rates and Sectoral Stock Indices of

the Philippines and Thailand,” IMF working paper No. WP/00/39 (Washington, DC: IMF, Mar. 2000), pp. 1 and

4, found at Internet address http://www.imf.org, retrieved May 10, 2000.

3-12

• Malaysia has taken significant steps to structurally reform its financial sector, but reportedly needs

to continue these efforts and to speed up structural reforms in the corporate sector to improve the

competitiveness of its firms in the global economy.37

Recent Trends: Philippines

• The U.S. trade deficit with the Philippines remained virtually unchanged at $5.4 billion in 1999

because both U.S. exports and imports increased by a similar absolute amount, about $500 million.

Major changes in this trade were also dominated by two-way trade in electronic products. Both

U.S. exports and imports of semiconductors increased significantly in 1999. In addition, U.S.

imports of computer hardware increased notably.

• The Philippines reportedly weathered the Asian financial crisis relatively unscathed compared with

other affected countries in the region because it had undertaken certain reforms to its economy

prior to the beginning of the crisis in mid-1997.38 However, government efforts to continue and

expand financial and corporate reforms purportedly faced “obstacles” from “nationalist and vested

interests.”39

• Despite its economic resilience during the Asian financial crisis, the Philippines did experience

“contagion-like” pressure on its exchange rates, banking, and other financial sectors through

market and trade linkages that eroded investor confidence in emerging markets worldwide,

including the Philippines, from which it has not fully recovered.40

• After only a small decrease in real GDP in 1998, the Philippines achieved a modest 3.2-percent

increase in 1999, led by exports that were stimulated by increased world demand for electronic
 

41 OECD, “Developments in Selected Non-Member Economies,” p. 127; EIU, “Summary--Philippines,”

“Outlook for 2000-01: Stability Is Assured,” and “Domestic Economy: Economic Trends,” Country Reports

Philippines, Jan. 17, 2000, EIU CD-ROM Asia-Pacific Intelligence, vol. II, 1993-May 2000; U.S. State Dept.,

1999 Country Reports: Philippines, Mar. 2000; ADB, Asia Recovery Report 2000, Mar. 2000, pp. 44-52; and

IMF, World Economic Outlook, 2000, pp. 22-24 and 77-86.

 

42 U.S. State Dept., 1999 Country Reports: Philippines, Mar. 2000; and Office of the U.S. Trade Representative

(USTR), 2000 National Trade Estimate Report, Apr. 2000, pp. 339-340.

 

43 For details of these restraints, see White, “Russia.”

 

44 See Ibid., for details of events and policies during 1997-98; and Gerard Belanger and others, Russian

Federation: Recent Economic Developments, IMF staff country report No. 99/100 (Washington, DC: IMF,

Sept. 2000) found at Internet address http://www.imf.org, retrieved June 6, 2000. The latter article covers the

1990s, but focuses on recent years. Stanley Fischer and Ratna Sahay, The Transition Economies After Ten Years,

IMF working paper No. WP/00/30 (Washington, DC: IMF, Feb. 2000), p. 34, reported that the level of real GDP in

1998 was about 60 percent of that in 1989; U.S. State Dept., 1999 Country Reports: Russia, Mar. 2000; IMF,

World Economic Outlook, 2000, pp. 26-28 and 52; EIU, “Russia: Solid Growth,” Crossborder Monitor, May 10,

2000, DIALOG File 629:EIU:BUS. Newsletters. Patrick E. Tyler, “Clinton and Putin Meet at Kremlin With Wide

Agenda,” New York Times, June 4, 2000, sec. 1, p. 6, illustrated the apparent depth of the descent of the Russian

economy during the 1990s, reporting President Vladimir V. Putin’s statement when he became acting president on

Dec. 31, 1999: “‘To reach the production level of Portugal and Spain, two countries that are not known as leaders

of the world economy,’...‘it will take Russia approximately 15 years,’ even under optimistic growth assumptions of

8 percent a year.”

3-13

products.41 This increase in real GDP was accompanied by decreases in consumer prices, interest

rates, unemployment, and the average nominal exchange rate. Although international investment

reserves (excluding gold), the merchandise trade balance, and the current account all increased in

1999, already small FDI inflows decreased further, by $800 million (47 percent) to an estimated

$900 million. Barriers to such investment include limitations on foreign-ownership shares of firms

in certain economic sectors, restrictions on foreign ownership of land, and export performance

requirements.42

Recent Trends: Russia

• The increase in the U.S. trade deficit with Russia, by $1.8 billion (82 percent) to $3.9 billion,

occurred in 1999 almost entirely because U.S. exports decreased sharply, by $1.7 billion

(49 percent) to $1.8 billion, led by large decreases in aircraft, poultry, and cigarettes. These

reductions were partially offset by a large increase in exports of cereals. In contrast, 1999 U.S.

imports from Russia were relatively flat, growing by $30 million (less than 1 percent) to

$5.7 billion. Otherwise significant growth in imports of precious metals and non-numismatic coins,

crude petroleum, petroleum products, nuclear materials, and unwrought aluminum was more than

offset by very large decreases in imports of steel mill products, which were influenced by

antidumping measures,43 and notable declines in imports of certain base metals and chemical

elements.

• Although Russia experienced much greater than expected 1999 growth in real GDP (3.2 percent,

compared with a decrease of 4.5 percent in 1998 during the financial crisis), real GDP declined in

9 out of the previous 10 years.44 However, despite the sharp upturn of consumer prices, rising

unemployment, and deterioration in the nominal value of the ruble in 1999, the economy appears to

have stabilized and begun to grow. Illustrative of this situation were declining interest rates in

1999; a sharply improving Russian merchandise trade balance, mostly because of decreased

imports; a rising current account balance; and a slightly improving level of international reserves

(excluding gold).
 

45 U.S. State Dept., 1999 Country Reports: Country, Mar. 2000; USTR, 2000 National Trade Estimate Report,

pp. 352-360; EIU, “Russia’s Economy: Is Growth Sustainable?” Crossborder Monitor, May 24, 2000, DIALOG

File 629:EIU:BUS. Newsletters; and EIU, “Russia: Wish List,” Business Eastern Europe, May 29, 2000, DIALOG

File 629:EIU:BUS. Newsletters.

 

46 EIU, “Russia’s Economy: Is Growth Sustainable?” predicts that the Russian economy will experience capacity

restraints by the end of 2000 because of lack of investment, asserts only investment and restructuring can prevent

this, and rates the chances of President Vladimir V. Putin being able to implement his “impressive reform

programme” (sic) as “slim.”

 

47 IMF, John Odling-Smee, Director of the IMF’s European II Department, “Why Resume Lending?: Russia’s

Current Economic Policies Are Deserving of IMF Support,” IMF Survey, vol. 28, No. 17, Aug. 30, 1999, p. 273,

found at Internet address http://www.imf.org, retrieved June 6, 2000, stated Russia faces “a reform effort whose

scale and ambition have few parallels,” adding that “even when the (July 13, 1999) program is implemented, there

will...remain the need for radical reforms, including additional steps to overcome nonpayment and corruption,

impose the rule of law, create a favorable climate for private business, and reform key sectors such as agriculture,

energy, and social services.” He noted the special complexity of the transition problems in Russia because of “the

economic and political dimensions are intertwined,” and pointed out that transition economies like Russia’s must

develop “institutions and changes in governance that are needed to support institutions.” Stanley Fischer, “Russian

Economic Policy at the Start of the New Administration,” remarks prepared for conference on the “Investment

Climate and Russia’s Economic Strategy,” State University: Higher School of Economics, Moscow, Apr. 6, 2000,

found at Internet address http://www.imf.org, retrieved May 25, 2000, said the new Russian administration had an

opportunity to apply the clear lessons learned from 10 years of experience with over 25 transition economies

moving from non-market to market economies.

 

48 IMF, “IMF Approves Stand-By Credit for Russia,” press release No. 99/35, July 28, 1999, found at Internet

address http://www.imf.org, retrieved June 7, 2000; and IMF, “Statement of the Government of the Russian

Federation and Central Bank of Russia on Economic Policies,” July 13, 1999, found at Internet address

http://www.imf.org, retrieved June 6, 2000. The 17-month stand-by credit amounted to about US$4.5 billion, with

about US$640 million released immediately. Future installments were to depend on successful implementation of

the goals and completion of quarterly reviews. IMF, “IMF’s Camdessus Reviews Status of Russian Program,” news

brief No. 99/81, Dec. 7, 1999, found at Internet address http://www.imf.org, retrieved June 6, 2000, noted that

(continued...)

3-14

• Real GDP growth was led by sustained exports for the year, that increased rapidly by late 1999

and in early 2000; higher prices for petroleum; and import-substitution policies that favored

Russian producers, partly driven by the lower value of the ruble against the U.S. dollar and partly

by restrictive measures imposed to dissuade imports.45

• The extent of the challenges confronting Russia in its efforts to recover from its 1998 economic

and financial crisis can be seen in the reportedly sustained lack of domestic investment in the

Russian economy, namely, “1999 was the first year in a decade with positive investment growth.”46

In addition, the already low value of FDI inflows decreased by $700 million (32 percent) to $1.5

billion in 1999. These conditions indicate limited progress in upgrading Russia’s industrial base

and other parts of its economy to be competitive in international markets, and that Russia has only

halted its economic downturn by trying to insulate its economy from world markets.

• The IMF has tried to emphasize progress made by Russia in trying to structurally reform its

governance, and its economic, financial, and business sectors, as well as the need to continue

engagement when progress is slow.47 Thus, despite criticism, the IMF approved Russia’s plans for

reforms in its July 13, 1999, economic policy statement.48 IMF officials understood the large scope
 

48 (...continued)

Russia still had not met 5 out of the 10 structural benchmarks it was to have met on Sept. 30, 1999. IMF, “Press

Briefing by Thomas Dawson, Director, IMF External Relations Department, May 4, 2000, Washington, DC, found

at Internet address http://www.imf.org, retrieved June 6, 2000, suggested that loans would not be resumed until

economic policies had been formulated by the new government and the IMF had reviewed these policies with

Russian authorities.

 

49 IMF, “Facts About IMF Lending to Russia,” Sept. 13, 1999, found at Internet address http://www.imf.org,

retrieved June 6, 2000.

 

50 EIU, “Russia: Revolving Door,” Crossborder Monitor, Aug. 11, 1999, DIALOG File 629:EIU:BUS.

Newsletters, reported that Russia’s fifth prime minister in 18 months made difficult the formulation and

implementation of economic policy and structural reforms. IMF, “Press Briefing by Thomas Dawson,” May 4,

2000.

 

51 Michael Camdessus, then Managing Director of the IMF, “Russia: Long Climb Out of a Black Hole,” a

commentary, Washington Post, Sept. 13, 1999, found at Internet address http://www.imf.org, retrieved June 6,

2000; EIU, “Shadow Boxing,” Business Russia, Apr. 10, 2000, DIALOG File 629:EIU:BUS: Newsletters; and

Vladimir Isachenkov, “Kasyvanov Confirmed as Russian Premier,” Washington Post, May 17, 2000, found at

Internet address http://www.washingtonpost.com, retrieved May 17, 2000.

 

52 “Russian Debt: Orient Express,” Economist, May 13, 2000, p. 77, reported that the London Club wrote “down

more than a third of Russia’s Soviet-era debt to them, swapping the rest for long-dated, low-interest bonds.” The

article reported that Russia sought to achieve a similar write down of $42 billion in state-to-state debt held by the

Paris Club of official creditors to enable Russia to reenter the world capital markets. The government’s goal is to

have one-half of this debt written off by western governments. Isachenkov, “Kasyvanov Confirmed.”

 

53 David Hoffman, “Putin Moves To Bolster Central Rule,” Washington Post, May 18, 2000, p. A1; “Russia’s

Regions: Beyond the Kremlin’s Walls,” Economist, May 20, 2000, p. 65; and Michael Wines, “Putin’s Move on

Governors Would Bolster His Role,” New York Times, May 22, 2000, found at Internet address,

http://www.nytimes.com, retrieved May 22, 2000, reported that President Putin alleged “a fifth of provincial laws

run counter to federal legislation.”

 

54 Ibid.

3-15

of problems confronting Russia in its transition from a non-market to a market economy, but urged

the need for Russia to take gradual attainable reform steps and to admit that the process could take

many years. As a precaution against misuse of the funds disbursed from this package, the funds

were held in an account at the IMF to be used only for debt service payments owed to the Fund.49

• According to the EIU, market reform of the Russian economy has been hampered by numerous

problems, such as political instability,50 inability of the government to collect tax revenues, an

industrial sector mired in the centrally planned system from the communist era, poorly executed

privatization of certain state companies, organized crime, and widespread corruption.51 In contrast,

Russia’s foreign debt service problems reportedly were eased in 1999 when then-Finance Minister,

Mikhail Kasyvanov, reportedly a market reformer, negotiated the write-off of billions of dollars of

Soviet era debt with the London Club of private-sector international creditors.52 Kasyvanov was

elevated to Prime Minister in May 2000 and pledged to continue measured market reforms that

would show concern for those whose standard of living had declined during the last decade.

• The loose structure of the Russian federation that consists of 89 separate republics and regions

spread across 11 time zones further complicates efforts to reform the economy.53 Reportedly, these

regions often ignore laws and directives of the central government, have erected trade barriers

(including border posts) that prevent imports and treat other regions like foreign countries, and

have employed trade practices not in agreement with the policies of the central government.54 The

new President of Russia took steps to try to consolidated more power in the central government in

May 2000.
 

55 EIU, “Output & Demand: Business Conf. (sic) Returns as Consumption Picks Up,” “Output & Demand:

Manufacturers Lead the Way,” and “Industry: Rising Export Demand Fuels Higher Output,” Country Reports

Thailand, Feb. 11, 2000, EIU CD-ROM Asia-Pacific Intelligence, vol. II, 1993-May 2000; U.S. State Dept., 1999

Country Reports: Thailand, Mar. 2000; IMF, World Economic Outlook 2000, Apr. 2000, pp. 22-24 and 77-86;

Tsuji, “Thailand’s Financial Crisis and Recovery;” Toshihide Endo and others, Thailand: Selected Issues, IMF

staff country report No. 00/21 (Washington, DC: IMF, Feb. 2000); and Stephen Schwartz and others, Thailand:

Statistical Appendix, IMF staff country report No. 00/20 (Washington, DC: IMF, Feb. 2000), both found at Internet

address http://www.imf.org, retrieved Mar. 9, 2000.

 

56 Second only to Indonesia for the largest decrease among the seven countries.

 

57 IMF, World Economic Outlook, 2000, pp. 78.

 

58 Thailand has relied mainly on a private-sector, market-based approach to financial and corporate

restructuring that analysts agree has resulted in slow-paced processes. OECD, “Developments in Selected NonMember Economies,” pp. 128-129; EIU, “Output & Demand: Manufacturers Lead the Way,” and “Factory

Utilisation (sic) Continues to Rise,” Country Reports Thailand, Feb. 11, 2000; and Frederik Balfour,

“Restructuring: Thailand’s Recovery Is Only Skin-deep, Pump-priming and Cosmetic Reform Won’t Work for

Long,” Business Week, May 8, 2000, p. 74E6.

 

59 IMF, “IMF Completes Final Review of Thai Program,” news brief No. 00/27, May 8, 2000, found at Internet

address http://www.imf.org, retrieved May 12, 2000. See also, IMF, “IMF Concludes Article IV Consultation With

Thailand,” public information notice No. 00/5, Feb. 10, 2000, found at Internet address http://www.imf.org,

retrieved May 12, 2000.

3-16

Recent Trends: Thailand

• The U.S. trade deficit with Thailand increased by $1.2 billion (15 percent) to $9.6 billion in 1999,

reflecting a $930-million growth in imports and a $284-million rise in exports. Although expanded

two-way trade in semiconductors nearly offset each other, additional U.S. import articles that

increased in 1999 by notable amounts were cement, stone, and related products; precious jewelry

and related articles; and shellfish. Aircraft accounted for most of the overall U.S. export decline.

• By most measures, Thailand’s economy performed better than expected in 1999.55 Real GDP

growth swung sharply upward from a decrease of 10.4 percent in 199856 to an increase of

4.2 percent in 1999 (third-best behind Korea and Malaysia). This strong turnaround, according to

official statistics of the IMF, was accompanied by almost no inflation in consumer prices, a sharp

fall in average interest rates (from 13 percent to 2 percent), stable unemployment, a modest

improvement in the trade balance (exports up slightly and imports nearly at the same level), a small

appreciation in the average nominal exchange rate, and a slight increase in international reserves

(excluding gold). Perhaps reflecting the pickup in Thailand’s economy, its current account position

worsened slightly.57 However, more troubling for future growth was a decrease in FDI inflows,

down by $1.1 billion (16 percent) to $5.8 billion in 1999, reportedly reflecting unease among

foreign investors about the progress in financial and corporate reform, a legal structure that favors

debtors over creditors, and existing manufacturing overcapacity.58

• In completing the ninth and final review of the Thai economy under the $17.2-billion Stand-By

Credit Arrangement, the IMF viewed Thailand as making “impressive” progress in addressing

problems exposed by its financial crisis, but warned that it must persevere in properly managing its

macroeconomic problems and pursuing policies for restructuring corporate debt and the financial

sector.59 The IMF also approved Thailand’s proposed policy shift to inflation targeting to give a

“clearer sense of direction” to monetary policy, and urged allowing the central bank greater

independence and accountability. However, the IMF reported that the “heavily indebted corporate

sector and continued weaknesses in Thailand’s financial system” presented a challenge, and

recommended the improvement in the financial system whereby nearly all banks would be able to
 

60 Such as “international best practice” capital adequacy standards, and loan classification and provisioning

rules.

 

61 IMF, “IMF Completes Final Review of Thai Program.”

 

62 IMF, “IMF Concludes Article IV Consultation With Thailand;” EIU, “Output & Demand: Manufacturers

Lead the Way,” “Financial Indicators: Lending Activity Is Still Static,” and “Financial Indicators: More Bad Loans

May Have to be Written Off,” Country Reports Thailand, Feb. 11, 2000; and IMF, World Economic Outlook, 2000,

p. 84.

 

63 EIU, “Financial Indicators: Lending Activity Is Still Static,” and “Financial Indicators: More Bad Loans May

Have to be Written Off,” Country Reports Thailand, Feb. 11, 2000.

 

64 U.S. State Dept., 1999 Country Reports: Thailand, Mar. 2000, stated that “Thailand’s financial crisis resulted

in part from significant increases in private sector external debt.” Debt data in text compiled from IMF; Schwartz

and others, Thailand: Statistical Appendix, Feb. 2000, p. 81; and ADB, Asia Recovery Report 2000, Mar. 2000,

p. 61.

 

65 Short-term, private-sector debt is highly vulnerable to capital flight during a financial crisis.

3-17

“comply with the stronger prudential norms,60 well ahead of the yearend-2000 deadline. Finally, the

IMF characterized the “commitment to complete reforms in the financial sector, and to speed up

the process of corporate debt restructuring” as “an ambitious reform agenda” that “the authorities

have begun to put in place,” which are “necessary to underpin continued strong economic

performance.”61

• Financial and corporate sector restructuring are closely connected because of the high level of

nonperforming loans, of which the ratio to total loans reportedly stood at a “relatively high”

39 percent at yearend 1999, which concerned many analysts, including the IMF.62 Reportedly, lack

of credit availability is already affecting a large share of Thai businesses.63

• The total level of Thailand’s external debt at yearend 1999 decreased significantly from its 1997

peak, down by $18.8 billion (20 percent) to $74.6 billion.64 Moreover the composition had changed

too, with the share of short-term debt (virtually all private rather than public),65 decreasing from 50

percent at yearend 1995 to 20 percent at the end of September 1999 (the most current figure

available). Private-sector external debt also decreased as a share of total external debt, from 81

percent at yearend 1996 to 42 percent at end of June 1999 (the latest available). In contrast,

virtually all public-sector external debt is medium- to long-term.

Carl F. Seastrum

(202) 205-3493

seastrum@usitc.gov
 

66 See ch. 2 for a general discussion about U.S. and international macroeconomic conditions that influenced

U.S. merchandise trade performance in 1999.

 

67 USDOC, Bureau of Economic Analysis (BEA), “U.S. Direct Investment Abroad, International Data, Country

Detail for Position, Capital Flow, and Income,” found at internet address http://www.bea.doc.gov/bea/di/diactry.htm retrieved May 17, 2000.

 

68 USDOC, BEA, “Foreign Direct Investment in the United States, International Data, Country Detail for

Position, Capital Flow, and Income,” found at internet address http://www.bea.doc.gov/bea/di/fdi-ctry.htm

retrieved May 18, 2000.

 

69 The Scotia Bank, Global Economic Outlook, (Halifax, NS: The Scotia Bank, Jan. 2000), p. 3.

 

70 OECD, OECD Economic Outlook, Dec. 1999, p. 67.

 

71 See “Motor Vehicles” and “Certain Motor Vehicle Parts” in ch. 12.

 

72 The U.S. agricultural price index decreased 13.6 percent in 1999, the most substantial decline among major

commodity groups. See “Farm and Garden Machinery and Equipment” in ch. 11.

3-18

SIGNIFICANT SHIFTS WITH LEADING PARTNERS

The following summarizes key shifts in U.S. merchandise trade with each of its top five trade

partners in terms of U.S. total trade (exports plus imports)--Canada, China, the European Union, Japan,

and Mexico. For each partner, U.S. trade flows are discussed for the relevant industry/commodity groups.

A tabulation of significant shifts in trade is included at the end of the discussions for each partner.

Canada

• The U.S. trade deficit with Canada expanded by $15.6 billion (42 percent) during 1999 to

$52.5 billion (table 3-4).66 Concurrently, total U.S. merchandise trade with Canada increased by

$31.5 billion (10 percent) to $344.0 billion. The increased trade deficit with Canada was greater

than that with any other single-country partner, but slightly less than the growth in the deficit with

the EU. Bilateral trade with Canada is strongly influenced by the highly integrated nature of North

American manufacturing, as evidenced by high levels of U.S. FDI between these two countries.

Canada was the second-leading destination for U.S. in FDI 1998 at $103.9 billion (latest data

available).67 Canadian direct investment in the United States, including investment from Canadian

holding companies in the Netherlands, was $74.8 billion in 1998.68

• Over one-half of private sector activity in Canada is export-oriented, with 85 percent of such

exports destined for U.S. markets.69 The Canadian economy grew by 3.5 percent in 1999, and is

expected to grow another 3 percent in 2000, supported by buoyant domestic demand and sustained

growth in the United States.70

• Transportation equipment accounted for a major share of the overall shift in U.S. bilateral trade

with Canada. General Motors, Ford, and the Chrysler Division of DaimlerChrysler consider the

United States and Canada as a single unit for production planning purposes and these “Big Three”

dominate Canadian motor vehicle production.71 Expansion of U.S.-Canada trade in the

transportation sector reflects the cross-border integration of the sector’s manufacturing activities

and growth in markets for motor vehicles in both countries.

• Decreased U.S.-Canada trade in farm and garden machinery and equipment (hereafter farm

equipment) reflects lower demand for farm equipment in response to the decline in agricultural

commodity prices.72 U.S. exports of farm equipment to Canada declined by $415 million

(23-percent) to $1.4 billion in 1999, whereas U.S. imports of farm equipment from Canada
 

73 “Long-thin” routes have a small but consistent customer base separated by a great distance. Such a market

can be profitable with smaller, rather than larger, long-range aircraft. As these markets are not the predominant

ones served by major airlines, airframe manufacturers have not given them equal attention with the more

established airline markets.

 

74 The United States did not produce regional jet aircraft in 1999; all such aircraft were of foreign manufacture. 

 

75 The Scotia Bank, Global Economic Outlook, p. 10.

 

76 Ibid.

3-19

declined by $331 million (36 percent) to $594 million. Highlights of the leading increases and

decreases in the U.S. exports and imports are identified in table 3-4.

U.S. exports

• Growth in U.S. exports to Canada of vehicle parts; motor vehicles; internal combustion piston

engines, other than for aircraft (hereafter internal combustion piston engines); and seats for motor

vehicles and aircraft, by $4.2 billion (12 percent) in 1999 to $39.4 billion, accounted for over onehalf of the overall growth in U.S. exports to Canada that year. Meanwhile, U.S. exports of aircraft,

and aircraft engines and gas turbines, rose by $432 million (14 percent) to $3.5 billion.

Bombardier of Canada is a world leader in the production of regional/commuter jets and an

important customer for U.S.-made aircraft engines and other parts. Regional jets are increasingly

being used for new service on “long-thin” routes,73 or to increase a carrier’s departure frequency

between airports.74

• Exports of scales and weighing machinery (hereafter measuring instruments) from the United

States to Canada climbed by $321 million (12 percent) to $3.0 billion, reflecting the relative

competitiveness of U.S. producers in the global market. A significant portion of measuring

instruments exported to Canada consisted of instruments and apparatus specially designed for

telecommunications equipment. The international telecommunications market is expected to grow

by 50 percent per annum through 2001.75

• U.S. medicinal chemicals (hereafter pharmaceuticals) exports rose by $313 million (20 percent) to

$1.9 billion. The combination of increased drug prices, rising demand by an aging population, and

an industry environment conducive to trade (e.g., similar economies, regional integration of

industries and markets, and the establishment of mutually favorable tariff rates under the NAFTA)

led to the continued rise in U.S. exports.

U.S. imports

• U.S. imports of motor vehicles from Canada rose by $8.9 billion (24 percent) in 1999 to

$46.6 billion. Some Canadian motor vehicle assembly plants have a productivity and cost

advantage over U.S. facilities. Canadian plants account for 19 percent of North American

production, up from 15 percent a decade ago.76 Imports of internal combustion piston engines and

vehicle parts from Canada grew by $2.1 billion (20 percent) to $13.0 billion. Together, motor

vehicles and vehicle parts accounted for nearly one-half of the expansion of all U.S. imports from

Canada in 1999.

• Forest products and furniture imports from Canada rose by $2.4 billion (20 percent) to

$14.3 billion. Relatively low interest rates and high consumer confidence levels encouraged strong

home construction markets and purchases of lumber and home furnishings from Canada, a

traditional supplier.
 

77 Ibid.

3-20

• Imports from Canada of telecommunications equipment consist of a wide variety of these products

of which parts for telecommunications equipment comprised the largest share. Imports of such

equipment grew by $1.5 billion (51 percent) in 1999 to $4.6 billion. Canada has emerged as a

global leader in designing optical Internet networks and fiber-optic equipment--an international

market expected to grow by 50 percent per annum through 2001.77

• Much of the $1.9 billion (17 percent) increase in value of U.S. imports of crude petroleum and of

natural gas and components from Canada to $13.5 billion was the result of increased oil and gas

prices.

Josephine Spalding

(202) 205-3498

spalding@usitc.gov
3-21

Table 3-4

Leading changes in U.S. exports to and U.S. imports from Canada, 1998 and 1999

Change, 1999 from 1998

Sector/commodity 1998 1999 Absolute Percent

–––––––––– Million dollars –––––––––

U.S. EXPORTS:

Increases:

Transportation equipment:

Certain motor vehicle parts (ET010) .......... 14,308 16,218 1,910 13

Motor vehicles (ET009) .................... 13,369 14,425 1,056 8

 Internal combustion piston engines, other than

for aircraft (ET002) ...................... 6,703 7,723 1,020 15

Seats for motor vehicles and

aircraft (MM067) ....................... 776 1,020 244 32

Aircraft, spacecraft, and related 

equipment (ET013) ..................... 1,667 1,883 216 13

Aircraft engines and gas turbines (ET001) ...... 1,412 1,628 216 15

Other:

Measuring, testing and controlling 

instruments (ET043) .................... 2,629 2,950 321 12

Medicinal chemicals (CH025) ............... 1,598 1,912 313 20

Decreases:

Farm and garden machinery and 

equipment (MM078) ....................... 1,839 1,425 -415 -23

Rail locomotive and rolling stock (ET008) ........ 1,010 718 -292 -29

Semiconductor manufacturing equipment and

robotics (MM087) ........................ 710 451 -259 -36

All other .................................. 91,747 95,378 3,631 3

TOTAL ............................. 137,768 145,731 7,964 6

U.S. IMPORTS:

Increases:

Transportation equipment:

Motor vehicles (ET009) .................... 37,670 46,563 8,893 24

Certain motor vehicle parts (ET010) .......... 7,576 9,009 1,433 19

Internal combustion piston engines, other than

for aircraft (ET002) ...................... 3,303 4,001 697 21

Aircraft, spacecraft, and related 

equipment (ET013) ..................... 3,473 3,801 327 9

Energy related products: 

Crude petroleum (CH004) .................. 5,560 6,552 991 18

Natural gas and components (CH006) ......... 6,004 6,933 929 16

Forest products:

Lumber (AG052) ......................... 6,134 7,041 907 15

Wood veneer and wood panels (AG054) ....... 1,794 2,437 643 36

Moldings, millwork, and joinery (AG053) ....... 880 1,200 320 36

Other:

Telephone and telegraph apparatus (ET017) .... 3,015 4,564 1,549 51

Furniture (MM054) ........................ 3,101 3,607 506 16

Decreases:

Computers, peripherals, and parts (ET035) ....... 3,625 3,213 -412 -11

Farm and garden machinery and

equipment (MM078) ....................... 926 594 -331 -36

Semiconductors and integrated circuits (ET033) ... 2,253 1,945 -307 -14

All other .................................. 89,371 96,782 7,411 8

TOTAL ............................. 174,685 198,242 23,557 14

Note.--Calculations based on unrounded data.

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

78 State Statistics Bureau, People’s Republic of China (SSB), “China’s Top Ten Trade Partners in 1999,”

Feb. 21, 2000, found at Internet address http://www.ce.cei.gov.cn/enew/e41dob89.htm, retrieved May 8, 2000.

 

79 SSB, “U.S. Becomes China’s Largest Export Destination,” Feb. 19, 2000, found at Internet address

http://www.ce.cei.gov.cn/enew/e41dob78.htm, retrieved May 8, 2000.

 

80 EIU, “Market Watch, Financing Foreign Operations,” June 30, 1999.

 

81 U.S. State Dept., telegram No. 6859, “China Country Commercial Guide Executive Summary,” prepared by

U.S. Embassy, Beijing, July 20, 1999.

 

82 “China’s Economy,” The United States-China Business Council: China Operations ‘99, Mar. 4, 1999, found

at Internet address http://www.uschina.org/press/econmay99chops.html, retrieved May 8, 2000.

 

83 USTR, “U.S.-China Sign Historic Trade Agreement,” press release No. 99-95, Nov. 15, 1999.

 

84 Representative of the China, Hong Kong, Mongolia, and Taiwan Office of the USTR, telephone interview

with USITC staff, Sept. 12, 2000.

3-22

China

• The U.S. trade deficit with China grew by $12.0 billion (21 percent) during 1999 to $68.9 billion,

as growth of imports from China outpaced that of exports to China. Total U.S. trade with China

increased by $9.3 billion (11 percent) to $94.1 billion and accounted for 6 percent of total U.S.

merchandise trade with all trade partners. In 1999, the United States was China’s second-largest

trade partner, accounting for 19 percent of China’s total trade.78 The United States also replaced

Japan as China’s largest export market. China’s State Statistics Bureau reported that exports to the

United States during 1999 consisted primarily of textile products, home appliances, and

inexpensive commodities, whereas imports from the United States consisted of high-tech products

such as telecommunications equipment, electronic products, and other equipment.79

• After nearly 20 years of continuous expansion, the pace of China’s economic growth began to slow

during the end of the 1990s. Despite the government’s efforts to boost the economy through fixedasset investments in infrastructure development, housing construction, and technology up-grades,

China’s GDP growth rate declined somewhat in 1999.80 China’s National Bureau of Statistics

estimated that the economy grew 7.1 percent in real terms during 1999, compared with 7.8 percent

in 1998.81 This was due to the Asian slowdown, weak domestic consumer demand due to fears of

job losses, surplus consumer goods, poorly performing state-owned enterprises, and declining

exports.82

• In 1999, China continued its efforts to join the World Trade Organization (WTO). On

November 15, 1999, the United States and China announced the completion of a bilateral talks on

China’s accession to the WTO.83 The agreement provides significant access for U.S. agriculture,

industrial products, and services. China will reduce both tariffs and non-tariff barriers to industrial

goods and farm products. The agreement contains provisions to address import surges and unfair

trade practices. The agreement calls for China (generally by 200484) to cut import duties on

agricultural goods from an average rate of 22.1 percent to 17 percent; establish large and

increasing tariff-rate quotas for wheat, corn, rice, and cotton; phase-out state trading in soy oil;

eliminate export subsidies; and improve market access for foreign banks, insurance companies,

telecommunications companies, computer services, business consulting, accounting, advertising,

and financial information services.

U.S. exports

• U.S. exports to China decreased by $1.3 billion (10 percent) to $12.6 billion in 1999. The decline

was led primarily by aircraft and parts, which declined by $1.1 billion (32 percent) to $2.3 billion.
 

85 “Business: The Economy China’ Economy Slowing Down,” BBC News, July 16, 1999, found at Internet

address http://www.news.bbc.co.uk/hi/english/b...e_economy/newsid_395000/395986.htm, retrieved Apr. 5, 2000.

 

86 U.S. State Dept., telegram No. 167, “China’s Economy Spins (Slowly) Into the Millennium,” prepared by

U.S. Embassy, Beijing, Jan. 7, 2000.

3-23

In addition, competing aircraft from the EU’s Airbus Industrie G.I.E., (Airbus) have reduced

Boeing’s share of the Chinese market. Highlights of the leading increases and decreases in U.S.

exports are identified in table 3-5.

• Other products experiencing declines include animal or vegetable fats and oils ($245 million);

telecommunications equipment ($240 million); and animal feeds ($170 million). Chinese demand

for U.S. exports was also adversely affected by the fear of unemployment caused by the impact of

structural reforms to state-owned enterprises, banks, social security safety net programs, and

housing on the economy.85

U.S. imports

• U.S. imports from China increased by $10.7 billion (15 percent) in 1999 to $81.5 billion.

Highlights of the leading increases and decreases in U.S. imports are identified in table 3-5. 

• Electronic products (principally computer hardware, radio and television transmission and

reception apparatus, and telecommunications equipment); furniture; and lamps and lighting fittings

(lighting fixtures) accounted for 19 percent of all U.S. imports. The strong U.S. economy and

lower demand for Chinese products in other Asian countries contributed to the growth in U.S.

imports from China. China’s shipments to the United States increased despite a dramatic increase

in shipments to recovering South Asian markets.86

• The increase in imports of computer hardware ($2.1 billion) accounted for one-fifth of the overall

rise in U.S. imports from China. Imports from China have been fueled by intense price competition

in the U.S. market.

• Chinese producers of knocked-down furniture, lamps and small appliances have benefitted from

relatively low interest rates in the United States that have encouraged home purchases, as well as

sales of products associated with these purchases. Collectively, U.S. imports of furniture, lighting

fixtures, and household appliances, including commercial applications (household appliances) from

China grew by $1.9 billion (36 percent) to $7.2 billion.

William Greene

(202) 205-3405

greene@usitc.gov
3-24

Table 3-5

Leading changes in U.S. exports to and U.S. imports from China, 1998 and 1999

Change, 1999 from 1998

Sector/commodity 1998 1999 Absolute Percent

–––––––– Million dollars ––––––––

U.S. EXPORTS:

Increases: 

Semiconductors and integrated circuits (ET033) ... 441 642 201 46

Oilseeds (AG032) .......................... 279 354 75 27

Medical goods (ET040) ...................... 113 180 67 60

Photographic cameras and equipment (ET039) .... 24 81 57 241

Aircraft engines and gas turbines (E001) ......... 142 196 54 39

Certain organic chemicals (CH012) ............. 83 130 47 56

Cathode-ray tubes (ET031) ................... 20 60 42 212

Decreases:

Aircraft, spacecraft, and related

 equipment (ET013) ....................... 3,392 2,294 -1,099 -32

Animal or vegetable fats and oils (AG033) ....... 319 74 -246 -77

Telephone and telegraph apparatus (ET017) ...... 683 443 -240 -35

Animal feeds (AG013) ....................... 205 35 -170 -83

Computers, peripherals, and parts (ET035) ....... 826 691 -135 -16

Fertilizers (CH016) ......................... 1,065 933 -132 -12

All other .................................. 6,316 6,472 156 2

TOTAL ................. 13,908 12,585 -1,324 -10

U.S. IMPORTS:

Increases:

Computers, peripherals, and parts (ET035) ....... 5,652 7,761 2,110 37

Furniture (MM054) ......................... 2,009 3,001 992 49

Lamps and lighting fittings (MM056) ............ 1,761 2,280 520 30

Telephone and telegraph apparatus (ET017) ...... 1,717 2,172 456 27

Footwear (CH051) ......................... 8,016 8,438 422 5

Household appliances, including commercial 

applications (MM073) ..................... 1,489 1,899 410 28

Decreases:

Photographic cameras and equipment (ET039) .... 1,158 1,077 -81 -7

Miscellaneous inorganic chemicals (CH013) ...... 361 287 -74 -21

Dolls (MM058) ............................ 1,253 1,199 -54 -4

Coal, coke, and related chemical

products (CH003) ........................ 121 70 -51 -42

Crude petroleum (CH004.) ................... 60 11 -50 -82

Inorganic acids (CH014) ..................... 51 10 -41 -81

All other .................................. 47,167 53,317 6,150 13

TOTAL ................. 70,815 81,522 10,707 15

Note.--Calculations based on unrounded data.

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

87 Eurostat, European Commission, found at Internet address http//europa.eu.int, retrieved Apr. 11, 2000. 

 

88 Ibid.

 

89 At the beginning of 1999, the euro began trading at slightly less than 1.170 per U.S. dollar but fell to 1.007

per U.S. dollar by the end of the year. Board of Governors of the Federal Reserve System, Federal Reserve

Bulletin, (various months), 1999-2000. See app. G for more details about depreciation of the euro during 1999.

 

90 Patricia L. Layman, “Irish Firms Find Their Niche,” Chemical Market Reporter, Feb. 22, 1999, pp. 18-20.

3-25

European Union

• A rise in U.S. imports in 1999, stimulated by sustained rapid U.S. economic growth, was the

principal factor responsible for the $17.7-billion (51 percent) expansion in the U.S. trade deficit to

$52.4 billion with the 15 nations of the European Union (EU). The 1999 deficit followed a

$10.6-billion (44-percent) rise in the 1998 trade deficit that reached $34.7 billion, and was larger

than the increase in the trade deficit with any other country or region in 1999. 

• The EU economy grew a modest 2.9 percent in 1998 and 2.3 percent in 1999, although GDP

expanded by more than 3 percent in Finland, Greece, Luxembourg, Netherlands, Portugal, Spain,

and Sweden in 1999.87 Expansion of EU exports represented a major factor in the growth of EU

economies in 1999, contributing to a fall in the EU unemployment rate, from 9.9 percent at the end

of 1998 to 9.6 percent in 1999. Investment and private consumption in the EU increased by an

estimated 4.1 percent and 2.6 percent, respectively, in 1999.88

• EU export growth was driven by strong foreign demand for EU goods as a result of strong

economic growth in major EU markets (e.g., the United States), economic recovery in Asia, and a

depreciation of the euro versus the U.S. dollar of 14 percent in 1999.89 Growth in U.S. import

demand was principally focused in pharmaceuticals, motor vehicles, and aircraft. Highlights of the

leading increases and decreases in the U.S. exports and imports are identified in table 3-6.

U.S. exports

• U.S. exports to the EU grew by $1.8 billion (1 percent) to $142.0 billion in 1999. Highlights of the

leading increases and decreases in these U.S. exports are identified in table 3-6. The leading EU

market for U.S. manufacturers was the United Kingdom, accounting for 25 percent of all U.S.

exports to the EU, followed by Germany, with 18 percent.

• Leading U.S. export sectors included aircraft, and aircraft engines and gas turbines, which together

increased by $4.3 billion (20 percent) in 1999 to $26.0 billion. U.S. exports of these items

continued the pattern of significant growth since 1996 as airlines added to their aircraft fleets,

following increased demand for air-transport services by the general public and continued need to

replace aging aircraft.

• U.S. exports of pharmaceuticals to EU nations rose by 12 percent, reflecting the combination of

increased drug prices, benefits derived from the release of newly approved products, and increasing

pharmaceutical demand by aging populations. In addition, U.S. multinational pharmaceutical

companies have increasingly taken advantage of tax differentials between nations by shipping

intermediate products to production facilities abroad, such as Ireland, where tax policy favors

value-added manufacturing.90

• Lower U.S. exports to EU nations were registered among precious metals and non-numismatic

coins (down by 34 percent) due to lower gold and silver prices, and a significant decline due to
 

91 Pierre Sparaco, "A340-500/600 To Exacerbate Airbus-Boeing Rivalry,” Aviation Week & Space Technology,

Apr. 10, 2000, p. 55.

 

92 For a more detailed discussion, see Elizabeth Howlett, “Outsourcing by the Pharmaceutical Industry Provides

Opportunities for Fine Chemical Producers Worldwide,” ITTR, USITC publication 3253, Oct. 1999, pp. 7-13.

 

93 Clay Boswell and Feliza Mirasol, “Sourcing Pharmaceutical Manufacturing from Offshore Facilities,”

Chemical Market Reporter, Oct. 25, 1999, p. A28.

 

94 Howlett, “Outsourcing by the Pharmaceutical Industry,” p. 13; and Boswell and Mirasol, “Sourcing

Pharmaceutical Manufacturing,” p. A28.

3-26

dramatic changes in investment-related shipments of precious metals to the EU. Also, U.S. exports

of cigarettes declined 60 percent due to increasing EU cigarette production and reduced demand for

tobacco products in the EU. 

U.S. imports

• U.S. imports from the EU in 1999 rose by $19.5 billion (11 percent) to $194.4 billion. Highlights

of the leading increases and decreases in these U.S. imports are identified in table 3-6. Germany

was the leading EU supplier of U.S. imports in 1999, accounting for 28 percent of imports from

the EU, followed by the United Kingdom, with 20 percent of the total.

• The transportation sector accounted for 30 percent of the increased U.S. imports from the EU,

comprised of motor vehicles which rose by $3.9 billion (21 percent) to $22.1 billion; aircraft,

which climbed by $1.1 billion (19 percent) to $7.3 billion; and internal combustion piston engines

and vehicle parts, which together grew by $633 million (15 percent) to $4.9 billion.

• The significant rise in U.S. imports of motor vehicles and vehicle parts reflected strong U.S. sales

of motor vehicles which rose 9 percent in 1999 due to the sustained strength of the U.S. economy,

low interest rates, strong buying incentives, and stable vehicle prices. U.S. domestic sales of

imported German luxury automobiles have been particularly robust despite rapid growth in North

American production of Mercedes, BMW, and Volkswagen vehicles. 

• U.S. imports of aircraft from the EU increased due to the strong market for civil passenger

transport aircraft and parts, largely attributable to rising passenger air miles and the growing

presence of European manufacturers in the U.S. market. Airbus has increased its global market

share relative to Boeing, its sole competitor in the large commercial aircraft segment of the

industry, from one-third of the global market in the early 1990s to nearly 57 percent in 1999, with

several deliveries of aircraft to U.S. airlines.91

• U.S. imports of pharmaceuticals rose $4.6 billion (35 percent) to $17.8 billion due to the

increasing tendency of U.S. pharmaceutical firms to source chemical raw materials and finished

products from Ireland, Germany, and the United Kingdom. This trend is due to significant global

outsourcing capacity,92 the prominence of multinational pharmaceutical companies, and the highlytrained workforce in these nations.93 Ireland, in particular, has attracted foreign investment to the

country through the use of tax incentives for U.S. and other foreign pharmaceutical firms.94

Vincent DeSapio

(202) 205-3435

desapio@usitc.gov
3-27

Table 3-6

Leading changes in U.S. exports to and U.S. imports from the European Union, 1998 and 1999

Change, 1999 from 1998

Sector/commodity 1998 1999 Absolute Percent

–––––––– Million dollars –––––––––

U.S. EXPORTS:

Increases:

Transportation equipment: 

Aircraft, spacecraft, and related 

equipment (ET013) ..................... 15,388 19,107 3,719 24

Aircraft engines and gas turbines (ET001) ...... 6,343 6,886 543 9

Internal combustion piston engines, other than

for aircraft (ET002) ...................... 1,283 1,504 221 17

Electronic products:

Telephone and telegraph apparatus (ET017) .... 3,489 3,868 379 11

Computers, peripherals, and parts (ET035) ..... 14,253 14,467 214 2

Measuring, testing, and controlling

instruments (ET043) .................... 3,954 4,165 211 5

Navigational instruments (ET021) ............ 843 1,024 181 22

Machinery:

Construction and mining equipment (ET004) .... 1,686 1,867 181 11

Miscellaneous machinery (MM098) ........... 1,152 1,492 340 30

Other:

Medicinal chemicals (CH025) ............... 6,312 7,072 761 12

Decreases:

Precious metals and non-numismatic 

coins (MM020) ........................... 3,261 2,145 -1,116 -34

Cigarettes (AG045) ......................... 1,028 408 -620 -60

Oilseeds (AG032) .......................... 1,706 1,146 -560 -33

All other .................................. 79,519 76,878 2,641 3

TOTAL ............................. 140,217 142,029 1,812 1

U.S. IMPORTS:

Increases:

Transportation equipment:

Motor vehicles (ET009) .................... 18,201 22,056 3,855 21

Aircraft, spacecraft, and related

equipment (ET013) ..................... 6,141 7,288 1,147 19

Certain motor-vehicle parts (ET010) .......... 2,391 2,853 462 19

Internal combustion piston engines, other than 

for aircraft (ET002) ...................... 1,872 2,043 171 9

Other:

Medicinal chemicals (CH025) ............... 13,157 17,803 4,645 35

Works of art and miscellaneous manufactured 

goods (MM064) ........................ 3,519 4,374 855 24

Telephone and telegraph apparatus (ET017) .... 1,191 1,862 672 56

Medical goods (ET040) .................... 2,754 3,328 575 21

Petroleum products (CH005) ................ 2,343 2,871 527 23

Electric motors, generators, and related

equipment (MM091) ..................... 990 1,471 481 49

Decreases:

Steel mill products (MM025) .................. 4,054 3,417 -637 -16

Farm and garden machinery and

equipment (MM078) ....................... 1,988 1,464 -525 -26

Textile machinery (MM082) ................... 1,337 999 -338 -25

All other .................................. 114,943 122,580 7,637 7

TOTAL ............................. 174,881 194,409 19,528 11

Note.--Calculations based on unrounded data.

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

95 See app. G for more details about appreciation of the yen during 1999.

 

96 U.S. State Dept., telegram No. 001847, “Japan’s Real GDP Down 1.4% in Fourth Quarter,” prepared by U.S.

Embassy, Tokyo, Mar. 13, 2000.

 

97 Ibid.

 

98 Ibid.

 

99 Ann Saphir, “Seniors in Japan Access New Services,” Modern Healthcare, Apr. 24, 2000, found at Internet

address http://proquest.umi.com, retrieved Apr. 27, 2000. 

 

100 USDOC, Country Commercial Guide: Japan, July 15, 1999, p. 97.

 

101 See supply and demand of fishery products. Minister’s Secretariat, Ministry of Agriculture, Forestry and

Fisheries, Abstract of Statistics on Agriculture Forestry and Fisheries, found at Internet address

http://www.maff.go.jp/abst/from1/11ab/52a.html, retrieved Apr. 28, 2000.

3-28

Japan

• The U.S. trade deficit with Japan rose by $10.2 billion (15 percent) during 1999 to $76.6 billion,

as U.S. imports increased by $9.6 billion (8 percent) and U.S. exports declined slightly.

Appreciation of the Japanese yen against the U.S. dollar in 1999 (13 percent) moderated the

growth in the U.S. trade deficit with Japan.95

• Japan’s economy returned to recession in the second half of 1999, contracting during the last

2 quarters of the year.96 Declines in personal consumption and private housing investment

contributed to the contraction in domestic demand and GDP during the second half.97 The decline

in consumption reflected small winter bonuses and concerns about Year-2000 (Y2K) which

reduced durable goods expenditures and postponed winter travel.98 In the public sector, government

spending and consumption fell in real terms in the fourth quarter.

U.S. exports

• U.S. exports to Japan declined by $536 million (less than 1 percent) in 1999 to $54.3 billion.

Highlights of the leading increases and decreases in these U.S. exports are identified in table 3-7.

• Monolithic digital integrated circuits led U.S. export growth in semiconductors and integrated

circuits. Integrated circuits are key components of electronic products, and U.S. demand for

Japanese electronic products expanded in 1999.

• The growth of U.S. exports of pharmaceuticals was centered on antibiotics and was likely aided by

the continued aging of the Japanese population. Japan has about 18 million individuals of 65 years

and older99 out of a population of 126 million.100

• The increase in U.S. exports of internal combustion piston engines was concentrated in engines

above 2000 cubic centimeters displacement, engine sizes typical of U.S. production.

• Data of the Japanese Ministry of Agriculture, Forestry, and Fisheries indicate that declining

domestic fish production has increased Japanese dependence on imported products.101 The United

States contributed to the growing import presence in the Japanese market through increased

shipments of frozen pacific salmon and frozen fish livers and roes.

• New large civilian transport aircraft over 15,000 kilograms (kg) led the decrease in U.S. exports to

Japan, as the number of aircraft over 15,000 kg imported into Japan from all countries declined by

25 percent.
 

102 USTR, The President’s 1999 Annual Report on the Trade Agreements Program, p. 227, found at Internet

address http://www.ustr.gov/reports/tpa/2000/index.html, retrieved Mar. 3, 2000.

 

103 Laura A. Polly, “Key Performance Indicators, Automobiles,” ITTR, USITC publication 3293, Mar. 2000,

p. A-4.

 

104 Several U.S. steel producers and two unions filed an antidumping trade complaint against imports of certain

hot-rolled, flat-rolled carbon steel products from Japan in late Sept. 1998. On June 11, 1999, the USITC found that

the U.S. industry producing such products was materially injured by these imports. For more information, see

“Steel Mill Products” in ch. 10.

3-29

• U.S. exports of motor vehicles and vehicle parts declined as the automotive market in Japan

remained weak. Overall vehicle sales in Japan fell for the 35th month in December 1999.102

• The decline in exports of television receivers and video monitors is attributable to reduced exports

of related parts, specifically printed circuit boards and ceramic substrates that returned to more

historic levels in 1999 after strong growth in 1998.

U.S. imports

• U.S. imports from Japan increased by $9.6 billion (8 percent) in 1999 to $131.0 billion. Highlights

of leading increases and decreases in these U.S. imports are identified in table 3-7.

• Motor vehicles, engines, and certain other parts accounted for 59 percent of the growth of all

imports from Japan, as Japanese suppliers responded to expanding demand in the United States.103

• Large import increases were registered for a broad spectrum of electronic products, including

printed circuit assemblies for telephonic apparatus; video recording apparatus and still image video

cameras; computer displays, laser printers, and parts; and light-emitting diodes and integrated

circuits. Telephone equipment led the expansion in U.S. imports of electronic products from Japan

in 1999.

• Steel mill products led the decline in U.S. imports from Japan. The 50-percent reduction was

concentrated in hot-rolled, flat-rolled carbon steel products that were the subject of an antidumping

order issued by the U.S. Department of Commerce on June 29, 1999.104

• The downturn in imports of photographic cameras and equipment is largely attributable to a 

50-percent decline in imports of electrostatic photocopying apparatus.

• Imports of metal cutting machine tools and machine tool accessories from Japan declined as

imports of machine centers and horizontal lathes returned to more historic levels in 1999 after

strong growth in 1998.

James J. Lukes

(202) 205-3426

lukes@usitc.gov
3-30

Table 3-7

Leading changes in U.S. exports to and U.S. imports from Japan, 1998 and 1999

Change, 1999 from 1998

Sector/commodity 1998 1999 Absolute Percent

––––––– Million dollars –––––––––

U.S. EXPORTS:

Increases:

Semiconductors and integrated circuits (ET033) ... 2,283 2,801 518 23

Medicinal chemicals (CH025) ................. 1,064 1,320 256 24

Internal combustion piston engines, other than for 

aircraft (ET002) .......................... 295 510 215 73

Fresh or frozen fish (AG006) .................. 684 899 215 31

Decreases:

Transportation equipment:

Aircraft, spacecraft, and related

equipment (ET013) ..................... 5,138 4,557 -581 -11

Motor vehicles (ET009) .................... 1,118 807 -311 -28

Certain motor-vehicle parts (ET010) .......... 1,253 997 -256 -20

Other:

Television receivers and video

monitors (ET022) ....................... 399 22 -376 -94

All other .................................. 42,612 42,397 -215 -1

TOTAL ............................. 54,846 54,310 -535 -1

U.S. IMPORTS:

Increases:

Transportation equipment:

Motor vehicles (ET009) .................... 28,864 32,115 3,252 11

Internal combustion piston engines, other than for 

aircraft (ET002) ........................ 3,275 4,682 1,407 43

Certain motor-vehicle parts (ET010) .......... 3,491 4,562 1,070 31

Electronic products:

Telephone and telegraph apparatus (ET017) .... 2,361 3,210 850 36

Consumer electronics (except

televisions) (ET018) ..................... 4,612 5,322 711 15

Computers, peripherals, and parts (ET035) ..... 13,130 13,645 514 4

Semiconductors and integrated circuits (ET033) . 5,891 6,401 509 9

Decreases:

Steel mill products (MM025) .................. 2,914 1,461 -1,453 -50

Photographic cameras and equipment (ET039) .... 3,122 2,646 -477 -15

Metal cutting machine tools and machine tool

accessories (MM084) ...................... 2,206 1,891 -314 -14

All other .................................. 51,447 55,016 3,569 7

TOTAL ............................. 121,313 130,951 9,638 8

Note.--Calculations based on unrounded data.

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

105 Mexico’s average import duty on U.S. goods has been reduced from 10 percent prior to the NAFTA to below

2 percent. Furthermore, approximately 80 percent of U.S. manufactured goods now enter Mexico free of duty.

USTR, “Mexico,” 2000 National Trade Estimate Report, p. 284.

 

106 U.S. State Dept., telegram No. 01964, “Mexico’s Trade by Country in 1999,” prepared by U.S. Embassy,

Mexico City, Mar. 22, 2000.

 

107 Fluctuations in electric capacitor trade tend to be linked with semiconductors, as the two components are

often used on the same circuit-boards. 

3-31

Mexico

• The U.S. trade deficit with Mexico expanded by $10.0 billion (57 percent) in 1999, to

$27.6 billion. Total U.S. merchandise trade with Mexico increased by $22 billion (13 percent)

during this same period to $190.4 billion.

• The bulk of U.S.-Mexico trade is accounted for by the export of U.S. components and materials

and the import of goods assembled in Mexico. The value added by Mexican labor in the assembly

process makes up much of the U.S. trade deficit with Mexico. The industries making the most use

of assembly in Mexico, electronic products, automotive, and apparel, were also responsible for

most of the growth in the U.S. trade deficit with Mexico. 

• Use of the assembly industry in Mexico is spurred by the relatively low cost of Mexican labor,

reduced trade barriers between the two countries under the North American Free Trade Agreement

(NAFTA),105 growing demand in the United States, and proximity to the U.S. market that lowers

transportation costs and shortens delivery times relative to competing goods imported from Asia.

U.S. exports

• U.S. exports to Mexico reached record levels in 1999, rising $6.0 billion (8 percent) to

$81.3 billion. Highlights of the leading increases and decreases in these U.S. exports are identified

in table 3-8.

• U.S. exports of electronic products, machinery, plastics, and fabric, mainly destined for use in

Mexico’s maquiladora industry or for Mexican domestic manufacturing and commercial sectors,

drove overall U.S. exports to Mexico to their highest level in 1999. The strong performance of the

Mexican economy, which boosted overall Mexican imports by 13 percent in 1999 also contributed

to the rise of U.S. exports to Mexico and of even faster-growing exports from Europe and Asia to

Mexico.106

• The growth of electronic assembly operations in Mexico has resulted in a steady upward trend in

U.S. exports of many electrical components, such as semiconductors, circuit apparatus, electrical

capacitors,107 and parts of radio and television equipment. In particular, 1999 was a very good year

for both the U.S. and the global semiconductor industries as worldwide prices, notably for memory

products, stabilized at the same time that demand for products that incorporate semiconductors,

such as telecommunications equipment and personal computers, substantially increased.

• Despite recent foreign investment in integrated textile mills in Mexico, U.S. exports of fabric rose

sharply in 1999 to supply the rapidly growing apparel assembly industry. Most of the apparel was
 

108 Two-thirds of apparel imported from Mexico into the United States incorporates U.S.-produced fabric and

yarn. “North American Textiles and Apparel Industry Gains Competitive Advantage Under NAFTA,” NAFTA

Works, Aug. 1999, p. 3.

 

109 A trade shift of at least $200 million was required for the inclusion of industry/commodity groups in 

table 3-8. The largest decrease in U.S. imports from Mexico in 1999 was for vegetables which fell by $142 million

(9 percent) to $1.5 billion.

 

110 USDOC, BEA, Overview of the Economy, found at Internet address http://www.bea.doc.gov/bea/glance.htm,

retrieved Apr. 25, 2000. 

 

111 Exports from companies operating under the Maquiladora Decree accounted for 86 percent of Mexico’s

overall exports to the United States in 1998. See USITC, Production Sharing: Use of U.S. Components and

Materials in Foreign Assembly Operations, 1995-1998, USITC publication No. 3265, Dec. 1999, table C-2, p. C-5.

 

112 “A Booming North American Electronics Industry Ensues Five Years of NAFTA,” NAFTA Works,

Oct. 1999, p. 3.

 

113 For example, growth in imports of television equipment and computer monitors continues to be led by

Korean-, Taiwan-, and Japanese-owned firms with investments in Baja California Norte and Sonora; and many

U.S.-based computer hardware companies have also shifted assembly of products for the North American market

from Asia to subsidiaries or contract assemblers in Guadalajara, while maintaining assembly in Southeast Asia to

supply markets in that region. Elizabeth Malkin and Geeri Smith, “Mexican Makeover: NAFTA Creates the

World’s Newest Industrial Power,” Business Week, Dec. 21, 1998.

3-32

re-exported back to the United States.108 The steepest increase in U.S. fabric exports to Mexico

was in woven fabrics of cotton and of artificial filaments.

U.S. imports

• U.S. imports from Mexico recorded a $16.0-billion (17-percent) increase during 1999 to

$109.0 billion. Highlights of the leading increases in these imports are identified in table 3-8.109

• Once again, record U.S. imports from Mexico in 1999 were driven by a significant expansion in

U.S. GDP--7.3 percent in the last quarter of the year.110 Higher world prices for crude petroleum,

one of Mexico’s major exports, combined with rising U.S. domestic demand for motor vehicles,

computer hardware, and apparel helped to spur this increase. 

• The growth in U.S. imports, particularly in electronic products, demonstrates the continued shift of

labor-intensive electronic assembly operations to facilities operating under Mexico’s Maquiladora

Decree.111 Mexico is a leading supplier to the United States of several types of electric products,

such as electric motors, internal combustion engines, and meters, as well as semiconductors and

other electronic assemblies that are key components in numerous finished electronic goods, such as

computers, telecommunications equipment, consumer electronics, and appliances.112 Previously, a

higher proportion of these electronic inputs and finished goods was imported for the North

American market from Asia.113 Collectively, U.S. imports of computer hardware,

telecommunications, radio and television broadcasting equipment, and television receivers and

video monitors from Mexico rose by $3.8 billion (30 percent) to $16.5 billion and accounted for 24

percent of the overall increase in U.S. imports from Mexico.
 

114 These manufacturers of generic personal computers typically started as sub-contractors to major

manufacturers, but have begun to operate independently in recent years. Derek Reveron, “White Box Rising,”

Latin Trade, Feb. 1, 2000, p. 50.

3-33

• Mexico also has become a top destination for contract equipment providers (also known as

contract electronic manufacturers--or CEMs), including manufacturers of generic personal

computers, further enhancing the increase in U.S. imports of computers from Mexico in 1999.114

• As in 1998, U.S. imports of motor vehicles increased markedly, reflecting (1) the high degree to

which General Motors, Ford, and the Chrysler Division of DaimlerChrysler have integrated their

manufacturing operations in North America; (2) increased motor vehicle production in Mexico,

which was up by 5 percent in 1999 to 1.5 million units; and (3) continued strong demand in the

United States. Mexico’s motor vehicle exports to the United States largely consist of small and

medium-sized cars, light trucks, and auto parts. Motor vehicles and certain parts, including seats,

accounted for 22 percent of the overall increase in U.S. imports from Mexico in 1999 with imports

of these products rising by $3.5 billion (20 percent) to $21.3 billion.

• The increase in world prices for crude petroleum, particularly in the second half of 1999, caused

U.S. imports to expand sharply and accounted for 9 percent of the rise in overall U.S. imports from

Mexico in 1999.

Jennifer Rorke

Ralph Watkins

(202) 205-3492

watkins@usitc.gov
3-34

Table 3-8

Leading changes in U.S. exports to and U.S. imports from Mexico, 1998 and 1999

Change, 1999 from 1998

Sector/commodity 1998 1999 Absolute Percent

––––––– Million dollars ––––––––

U.S. EXPORTS:

Increases:

Electronic products:

Semiconductors and integrated circuits (ET033) . 2,386 3,178 791 33

Computers, peripherals, and parts (ET035) ..... 2,459 2,804 345 14

Circuit apparatus not exceeding 1000V (ET028) . . 1,298 1,642 344 27

Electrical capacitors and resistors (ET025) ..... 1,097 1,372 275 25

Radio and television broadcasting

equipment (ET023) ..................... 106 308 202 191

Parts of circuit apparatus (ET030) ............ 866 1,066 200 23

Chemicals:

Miscellaneous plastic products (CH041) ....... 2,967 3,635 667 23

Petroleum products (CH005) ................ 1,447 1,847 399 28

Other: 

Fabrics (CH046) ......................... 1,264 1,972 708 56

Miscellaneous products of base metal (MM031) . . 1,401 1,643 242 17

Miscellaneous machinery (MM098) ........... 645 874 228 35

Decreases:

Transportation equipment:

Wiring harnesses for motor vehicles (MM068) ... 691 258 -433 -63

Seats for motor vehicles and aircraft (MM067) ... 705 493 -211 -30

Other:

Cotton, not carded or combed (AG049) ........ 616 285 -330 -54

All other .................................. 57,421 60,004 2,584 5

TOTAL ............................... 75,369 81,381 6,011 8

U.S. IMPORTS:

Increases:

Transportation equipment:

Motor vehicles (ET009) .................... 13,225 15,813 2,589 20

Certain motor-vehicle parts (ET010) .......... 3,184 3,687 503 16

Seats for motor vehicles and aircraft (MM067) ... 1,426 1,817 391 27

Electronic products:

Computers, peripherals, and parts (ET035) ..... 5,448 7,239 1,791 33

Telephone and telegraph apparatus (ET017) .... 1,677 2,668 991 59

Radio and television broadcasting

equipment (ET023) ..................... 1,313 1,974 661 50

Television receivers and video monitors (ET022) . 4,218 4,609 391 9

Other:

Crude petroleum (CH004) .................. 3,819 5,265 1,447 38

Apparel (CH049) ......................... 6,812 7,846 1,034 15

All other .................................. 51,895 58,100 6,202 12

TOTAL ........................ 93,017 109,018 16,000 17

Note.--Calculations based on unrounded data.

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

1

 Office of the U.S. Trade Representative (USTR), “The President’s 1999 Annual Report on the Trade

Agreements Program,” p. 227, found at Internet address http://www.ustr.gov/reports/tpa/2000/index.html,

retrieved on Mar. 3, 2000.

 

2

 James J. Lukes, “Flat Glass,” Shifts in U.S. Merchandise Trade in 1998, investigation No. 332-345, USITC

publication 3220, Aug. 1999, p. 4-2.

 

3

 U.S. Department of State (State Dept.,) telegram, “Embassy Update of National Trade Estimate,” prepared by

U.S. Embassy Tokyo, Feb. 4, 1998, retrieved from NewsEdge/Web June 4, 1998, and “Glass: Update on

Developments in Hokkaido,” prepared by U.S. Consul in Sapporo, May 21, 1998, retrieved from NewsEdge/Web

June 4, 1998.

4-1

,,,,,,,,,,,,,,,,

CHAPTER 4

Factors Affecting Trends in Selected

Industries/Commodities

This chapter focuses on products that have been the subject either of recent trade negotiations or

agreements. The analyses highlight trade shifts or other developments in these product areas. They give

updates for certain products discussed in last year’s report--flat glass, and automobiles and automobile

parts, that are subject to special bilateral market access agreements for imports negotiated by the United

States with Japan; and the textile and apparel sector, parts of which have been affected by the phase-out of

import quotas as a result of U.S. obligations under the Uruguay Round of Agreements. Other topics

addressed in this chapter include summaries of the 5-year (sunset) review process for outstanding

antidumping or countervailing orders in the U.S. market, and the World Trade Organization’s dispute

settlement process for adjudicating trade disputes among member countries.

FLAT GLASS

Under the U.S.-Japanese agreement on market access for imports of flat glass, Japan agreed to

provide increased access to its home market for foreign flat glass. As part of the agreement, Japan agreed

to remove discriminatory standards and to promote the sale of safety and insulating glass. The agreement

covered the 1995-99 period and expired on December 31, 1999.1

The quantity of Japanese imports of flat glass from all countries more than doubled during 1994-

97, the first 3 years of the agreement, but declined by 16 percent in 1998 (figure 4-1) as a likely result of

reduced Asian demand during the region’s financial crisis,2 the weak Japanese economy, and an increase in

the Japanese consumption tax from 3 percent to 5 percent.3 The trend in Japanese imports from the United

States was similar, but more pronounced, inasmuch as such imports more than tripled during the 1994-97

period and then declined by 41 percent in 1998 to just over 5 million square meters valued at $72 million.

Japanese demand for imported flat glass improved in 1999 as such imports increased by 25 percent

to $164 million, although the quantity of imports from all countries (up by 18 percent to 22 million square

meters) remained slightly below the amount for 1997, and the U.S. share of the market declined. Imports

from the United States in 1999 decreased by 2 percent to 5 million square meters but increased in value 
 

4

 U.S. State Dept., telegram No. 09447, “Tokyo Press Reaction to Flat Glass Talks,” prepared by U.S. Embassy,

Tokyo, Nov. 16, 1999.

 

5

 USTR, “The President’s 1999 Annual Report on the Trade Agreements Program,” p. 227.

 

6

 Ibid.

4-2

Figure 4-1

Japanese imports of flat glass, by quantity and value, from the United States and all countries, 1994-99

by 18 percent to $85 million. Imports from the United States lost market share to less expensive imports

from Korea, Indonesia, and Thailand.

The Government of Japan declined to negotiate a new bilateral agreement with the United States on

flat glass, maintaining that a new agreement was not needed because Japan’s flat glass market was already

fully open to foreign glass products.4 Although the agreement achieved some important successes in

boosting demand for insulating glass and featuring American glass in public works projects, important U.S.

goals remain unfulfilled.5 U.S. and other foreign suppliers have limited access to the distribution system

controlled by the three major Japanese glass producers and the foreign share of the Japanese market

remains small.6 The U.S. and Japanese Governments held government-to-government discussions in March

2000 to address the remaining market access barriers and are contemplating a joint government/industry

meeting later in the year.

James J. Lukes

(202) 205-3426

lukes@usitc.gov
 

7

 For more information, see U.S. Department of Commerce (USDOC) and USTR, Report to President William

Jefferson Clinton of the Interagency Enforcement Team Regarding the U.S.-Japan Agreement on Autos and Auto

Parts, Apr. 12, 1996 and Oct. 21, 1996.

 

8

 The Agreement includes 15 quantitative and qualitative criteria specific to motor vehicles, original equipment

(OE) parts, and aftermarket parts, as well as two general qualitative criteria, all of which are designed to measure

progress in reaching joint goals in these sectors. 

 

9

 The Compliance Group was established on Sept. 6, 1995 by the USTR and the USDOC.

 

10 The most recent report was submitted on June 3, 1999.

 

11 Measured by the number of import vehicle registrations in Japan, by make and model, as compiled by the

Japan Automobile Manufacturers Association from data sources of the Japan Automobile Dealers Association and

the Japan Automobile Importers’ Association.

 

12 “New Import Vehicle Registrations 1999 YTD & December," Japan Automotive News, Feb. 1, 2000, p. 7.

 

13 Exports of passenger cars from the United States to Japan were sustained by a 78-percent increase in

shipments from Honda to 15,596 units and a 3-fold increase in shipments from Mercedes-Benz to 2,239 units.

 

14 Although not a measurement criteria specified in the Agreement, U.S. imports of auto parts from Japan rose

by 28 percent from the 1998 level to $10.5 billion in 1999.

 

15 USDOC and USTR, Report to President William Jefferson Clinton of the Interagency Enforcement Team,

Regarding the U.S.-Japan Agreement on Autos and Auto Parts, June 3, 1999.

4-3

U.S.-JAPAN AGREEMENT ON AUTOS AND AUTO PARTS7

The auto and auto parts industry was designated a priority sector in the 1993 U.S.-Japan

Framework Agreement, leading to extensive discussions between the two countries focusing on efforts to

liberalize access to the Japanese auto market for U.S. auto and auto parts manufacturers. The United States

and Japan concluded their negotiations on June 28, 1995 with the signing of the U.S.-Japan Agreement on

Autos and Auto Parts (Agreement). As part of the Agreement, the Government of Japan made

commitments in three important areas: improving market access for foreign motor vehicles; eliminating

regulations that limit U.S. auto parts sales in Japan; and enhancing sales opportunities for U.S. original

equipment parts producers with Japanese automakers in the United States and Japan.8 The ten-member

Compliance Group,9 which evaluates Agreement achievements, presents its findings every 6 months in a

report to the President.10

The June 1999 status report to the President highlighted continuing U.S. concerns about Japan’s

economic recession and reluctance to deregulate its economy, with resulting adverse effects on the

automotive sector, including foreign automakers. The report noted a 29-percent decline in sales of North

American-produced “Big Three” (General Motors, Ford, and DaimlerChrysler) motor vehicles in Japan

during January-March 1999 compared to the same period the previous year11 and a 7-percent decline in

U.S. exports of auto parts to Japan in 1998. Since that reporting period, new import vehicle registrations of

U.S. passenger cars and trucks in Japan recorded an overall decline of 4 percent from the 1998 level of

62,644 units to 59,876 units in 1999.12 Registrations for U.S. trucks fell by 32 percent during the period,

whereas registrations of U.S. passenger cars remained relatively unchanged.13 The value of U.S. auto parts

exported to Japan continued to decline in 1999, falling by 12 percent to nearly $1.9 billion from the 1998

level.14

The Governments of Japan and the United States held bilateral consultations on the Agreement in

October 1999. Although Japan has agreed to streamline new car registration procedures and create a new

class of certified mechanics,15 the United States continues to push for further Japanese industry

deregulation by supporting transparent standards for aftermarket parts, removal of parts from the “critical
 

16 Those automotive parts subject to disassembly repair that must be completed by a certified mechanic at a

certified or designated garage, or be inspected at a Ministry of Transportation Land Office. 

 

17 Corbett B. Daly, “Japan: With Imports Falling, U.S. Urges Japan to Deregulate Auto, Auto Parts Industries,”

BNA, and “U.S., Japan Auto Agreement Talks Focus on Improving, Not Renewing Deal,” Oct. 15, 1999, found at

Internet address http://www.insidetrade.com, retrieved Oct. 15, 1999.

 

18 “U.S., Japan Informally Explore Future After Expiry of Auto Deal,” Apr. 28, 2000, found at Internet address

http://www.insidetrade.com, retrieved Apr. 28, 2000.

 

19 The MFA governed most world trade in textiles and apparel during 1974-94 and provided a general

framework and guiding principles for negotiation of bilateral agreements between textile importing and exporting

countries for the purpose of setting quotas, or for unilateral action by an importing country if an agreement could

not be reached. The MFA was established to deal with problems of market disruption in sector trade in developed

countries, while permitting developing countries to share in expanded export opportunities. 

4-4

parts” list,16 relaxation of the shaken or vehicle inspection system, and financial incentives for U.S.

automakers in Japan.17

In April 2000, the U.S. and Japanese Governments discussed the future of the Agreement, which

expires at the end of 2000. Neither government has formally declared a position on the renewal of the

Agreement. The Japanese Government, however, reportedly highlighted the globalization of the automotive

industry and issues other than market access that will determine the success of the automotive industry in

Japan. With respect to the United States, the automotive parts industry reportedly supports a follow-on

agreement, whereas vehicle manufacturers are interested in a government-to-government consultative

framework.18

Deborah A. McNay

(202) 205-3425

mcnay@usitc.gov

TEXTILES AND APPAREL

In recent decades, multilateral and bilateral agreements have had a significant influence on U.S.

trade in textiles and apparel. These agreements have limited U.S. textiles and apparel imports while

guaranteeing a certain level of access to the U.S. market. The North American Free Trade Agreement

(NAFTA) phased out barriers to most textile and apparel trade between the United States and Mexico by

January 1, 1999. The Uruguay Round Agreement on Textiles and Clothing (ATC) requires the United

States and other textiles and apparel-importing countries to integrate textiles and apparel into the General

Agreement on Tariffs and Trade (GATT) regime by 2005. In November 1999, the United States and China

signed a market access agreement that would phase out U.S. import quotas on Chinese textiles and apparel

by January 1, 2005, and commit China to open its markets to U.S. goods. In May 2000, the President

signed into law legislation that will grant expanded trade benefits to eligible sub-Saharan African and

Caribbean Basin countries. These and other developments affecting U.S. trade in this sector are highlighted

in the following discussion.

Agreement On Textiles and Clothing

On January 1, 1995, the ATC replaced the 1974 Multifiber Arrangement (MFA), a multilateral

agreement negotiated under GATT auspices that permitted the use of quotas without compensation, and

created special interim rules for world trade in textiles and apparel.19 Under the ATC, World Trade

Organization (WTO) member countries with MFA quotas in place--the United States, the European Union
 

20 The WTO reported that almost none of the articles integrated by the developed countries in 1995 were subject

to quota and that the articles integrated in 1995 and 1998 were mostly relatively less value-added items such as

yarn and fabric, rather than finished goods such as apparel. WTO, Comprehensive Report of the Textiles

Monitoring Body to the Council for Trade in Goods on the Implementation of the Agreement on Textiles and

Clothing During the First Stage of the Integration Process, document G/L/179 (97-3288), July 31, 1997, paras. 15

and 70, found at Internet address http://www.wto.org/wto/ddf, retrieved Jan. 28, 1998.

 

21 The acceleration of quota growth rates is based on rates specified in the bilateral MFA agreements in place on

Dec. 31, 1994. The “base” growth rates vary by country and article, but ranged from less than 1 percent to 6 and

7 percent. Assuming a 6-percent base rate for a major supplier, the annual quota growth rate would be 6.96 percent

during 1995-97, 8.7 percent during 1998-2001, and 11.05 percent during 2002-04.

 

22 Sector imports from non-WTO suppliers are subject to quotas imposed by the President under section 204 of

the Agricultural Act of 1956 (7 U.S.C. 1854), which provides the President with the basic statutory authority to

enter into agreements with foreign governments to limit their exports of these products to the United States.

4-5

(EU), Canada, and Norway--are to eliminate the quotas on these goods from other WTO countries and

integrate the products into the GATT regime over a 10-year transition period ending on January 1, 2005.

As trade in this sector is integrated into the GATT regime, it becomes subject to the same GATT rules as

trade in other sectors.

Quota elimination under the ATC involves the integration of articles into the GATT regime

(including the removal of quotas on those goods) and the acceleration of growth rates for quotas on articles

not yet integrated into the GATT regime during the transition period (the “growth-on-growth” provision).

WTO countries were to integrate at least 16 percent of their sector trade into the GATT regime in 1995 and

an additional 17 percent in 1998 (based on their respective 1990 import volumes); they are to integrate at

least another 18 percent in 2002 and the remainder on January 1, 2005.20 Under the growth-on-growth

provision, importing countries were to increase existing quota growth rates for major WTO suppliers by 16

percent in 1995 and by another 25 percent in 1998; they are to increase the growth rates by another 27

percent in 2002.21 For the 22 small WTO suppliers (countries accounting for 1.2 percent or less of an

importing country’s total quotas in 1991), quota growth rates were advanced by one stage--that is, they

were increased by 25 percent in 1995 and by 27 percent in 1998.

The ATC also allows WTO countries during the 10-year transition period to set new quotas on

imports of textiles and apparel not yet integrated into the GATT regime by applying a “transitional

safeguard” when imports cause or threaten serious damage to a domestic industry. These quotas may

remain in place for up to 3 years or until the article is integrated into the GATT regime.

U.S. Quota Actions in 1999

There are currently U.S. quotas on textiles and apparel from 48 countries, which together

accounted for 84 percent of the total value of U.S. sector imports in 1999. U.S. quotas are being phased

out for Mexico under NAFTA and the other 37 WTO countries under the ATC. The 10 non-WTO

suppliers subject to quotas, led by China and Taiwan, are ineligible for ATC benefits.22

U.S. quota actions under the ATC in 1999 involved Pakistan and Turkey. The Committee for the

Implementation of Textile Agreements (CITA), which administers the U.S. textile trade agreements

program, established a quota on combed cotton yarn from Pakistan of 5,262,665 kilograms (kg) for the 12-
 

23 Quota information on Pakistan is from Federal Register notices of CITA, “Establishment of an Import Limit

for Certain Cotton Textile Products Produced or Manufactured in Pakistan” (64 F.R. 12290), Mar. 12, 1999; and

“Establishment of an Import Limit for Certain Cotton Textile Products Produced or Manufactured in Pakistan”

(65 F.R. 14544), Mar. 14, 2000. 

 

24 WTO, TMB, “Fifty-Sixth Meeting of the TMB, Note by the Chairman,” document G/TMB/19 (99-2684),

June 29, 1999, found at Internet address http://www.wto.org, retrieved Mar. 22, 2000.

 

25 WTO, TMB, “Overview of the State of Play of WTO Disputes,” found at Internet address

http://www.wto.org/wto/dispute/bulletin.htm# Toc472401424, retrieved May 9, 2000. 

 

26 CITA, “Establishing and Increasing Import Limits for Certain Cotton, Wool, and Man-Made Fiber Textile

Products Produced or Manufactured in Turkey,” Federal Register (63 F.R. 27923), May 21, 1998, p. 27923.

 

27 WTO, TMB, “Report of the Sixty-First Meeting,” document G/TMB/R/60 (00-0349), Jan. 28, 2000, found at

Internet address http://www.wto.org, retrieved Mar. 23, 2000.

 

28 According to USTR, “[i]n December 1999, the U.S. Government found that Cambodia was not in substantial

compliance with its labor laws and internationally recognized core labor standards... However, the U.S.

Government sought to acknowledge that progress had been made... and offered a 5 percent increase...” USTR,

“USTR Announces Apparel Quota Increase for Cambodia,” press release No. 00-39, May 18, 2000.

 

29 Information on Belarus is from Federal Register notices of CITA, “Request for Public Comments on Bilateral

Textile Consultations with the Government of Belarus” (64 F.R. 51962), Sept. 21, 1999; “Establishment of an

Import Limit for Certain Man-Made Fiber Textile Products Produced or Manufactured in Belarus” (64 F.R.

(continued...)

4-6

month period beginning on March 17, 1999.23 The quota was subsequently extended for another year and

increased by 6 percent to 5,578,425 kg. In April 1999, the WTO Textiles Monitoring Body (TMB), which

supervises the implementation of the ATC provisions, recommended that the United States rescind its quota

on Pakistani yarn. However, in May 1999, the United States notified the TMB that it was unable to comply

with the recommendation.24 In April 2000, Pakistan asked the WTO Dispute Settlement Body to set up a

panel to rule on the U.S. quota.25

The United States reached agreement with Turkey in April 1998 to set a new quota on cotton and

manmade-fiber underwear from Turkey for the period from June 1, 1998, through December 31, 2002, and

to increase its existing quotas on certain knit shirts and wool fabrics.26 In March 2000, the TMB announced

that the new underwear quota for Turkey “had not been demonstrated to be in conformity with the

provisions of the ATC.”27

U.S. quota actions with non-WTO suppliers in 1999 included the completion of negotiations on the

first bilateral textile agreement with Cambodia, a fairly new but rapidly growing supplier of apparel, and

the establishment of a new quota on glass fiber fabrics from Belarus. The agreement with Cambodia, which

will be in effect for 3 years beginning on January 1, 1999, establishes 12 quotas on its shipments of

apparel. Cambodia agreed to improve cooperation and information sharing to prevent illegal textile

transshipments and to increase market access in Cambodia for U.S. exporters. For the first time in a U.S.

bilateral textile agreement, the United States obtained a commitment from Cambodia to improve labor

conditions in its textile and apparel sector. If the United States determines that Cambodia’s labor conditions

comply with international labor standards by December 1 of each agreement year, U.S. quotas could be

increased by 14 percent for the following agreement year, in addition to the annual quota growth rate of 6

percent. In May 2000, the United States granted Cambodia a 5-percent increase in quotas for the year

2000, following agreement by Cambodia and the International Labor Organization to establish a new

program that provides for independent monitoring of labor conditions in the Cambodian apparel industry.28

The United States requested consultations with Belarus in September 1999 for the purpose of

negotiating a quota on its shipments of glass fiber fabrics, which rose from 456,093 square meters in the

12-month period ending May 1998 to 6,480,552 square meters in the succeeding 12-month period.29
 

29 (...continued)

71982), Dec. 22, 1999; and “Settlement of a Call and Establishment of an Import Limit for Certain Man-Made

Fiber Textile Products Produced or Manufactured in Belarus” (65 F.R. 15315), Mar. 22, 2000.

 

30 Memorandum of Understanding, The Government of the People’s Republic of China and the Government of

the United States of America, Feb. 1, 1997, p. 10.

 

31 Agreement on Market Access Between the People’s Republic of China and the United States of America,

Nov. 15, 1999.

 

32 USTR, “United States Signs Textile Agreements with Macedonia and Romania,” press release No. 99-75,

Sept. 17, 1999. For detailed information on the agreements, see CITA, “Implementation and Enforcement of the

Outward Processing Program for Textiles and Apparel,” Federal Register (64 F.R. 69746), Dec. 14, 1999,

p. 69746.

4-7

Because the two countries were unable to agree on a limit, the United States established a quota on such

fabrics from Belarus of 6,480,552 square meters for the 12-month period beginning on September 17,

1999. In February 2000, the two countries agreed on a new limit of 11,500,000 square meters for the

calendar year 2000.

Market Access Agreement with China 

In November 1999, the United States and China signed a market access agreement that

incorporates textile provisions from a 1997 Memorandum of Understanding between the two countries.

Should China accede to the WTO, the agreement requires the United States to phase out quotas on imports

of Chinese textiles and apparel as of January 1, 2005, the same date as that for other WTO members.

However, the agreement allows the United States to apply selective safeguards (quotas) on imports of these

goods from China for 4 additional years beyond the termination of textile quotas for WTO members (i.e.,

through December 31, 2008). The agreement states that no safeguards established during the 4-year period

will remain in effect beyond a year, without re-application, unless both countries agree.30 In addition to the

textile-specific safeguard, the agreement provides for a “product-specific” safeguard that would allow the

United States to apply a safeguard measure on imports of Chinese goods for 12 years following China’s

accession to the WTO. The agreement also commits China to open its domestic market to U.S.-made

textiles and apparel.31

Outward Processing Program for Macedonia and Romania

The United States signed textile agreements with Macedonia and Romania under an Outward

Processing Program for Textiles and Apparel in September 1999, marking the first time that the program

has been extended to countries outside the Western Hemisphere. Under the agreements, which took effect

on January 1, 2000, U.S. imports of wool apparel from Macedonia and Romania will be eligible to enter

free of quota, provided that the garments are assembled from fabrics made in the United States. The

agreements with these countries were intended to promote “economic development in two countries whose

economies were adversely affected by the conflict in Kosovo, while enhancing export 

growth of (U.S.) domestic wool fabric producers.”32 In 1999, U.S. imports of wool apparel totaled

$29 million for Macedonia and $17 million for Romania.

Trade and Development Act of 2000

On May 18, 2000, the President signed into law the Trade and Development Act of 2000, which

grants expanded trade benefits to 48 eligible countries in sub-Saharan Africa (SSA) under Title I, the

African Growth and Opportunity Act, and 24 Caribbean Basin Economic Recovery Act (CBERA)

beneficiary countries under Title II, the United States-Caribbean Basin Trade Partnership Act. Chief
 

33 As noted earlier, the United States will eliminate quotas on textiles and apparel from all WTO countries as of

Jan. 1, 2005. Imports of textiles and apparel from non-WTO countries will continue to be subject to control under

section 204 of the Agricultural Act of 1956.

 

34 Apparel articles assembled from fabric or yarn not available in commercial quantities in the United States are

identified in Annex 401 of NAFTA (e.g., apparel of silk or linen fabric, velveteen or fine-wale corduroy cotton

fabric, and hand-woven Harris Tweed wool fabric).

 

35 Assuming that all U.S. imports of SSA apparel would have entered under the cap in calendar year 1999, the

SSA countries would have filled 60 percent of the cap of 212 million square meter equivalents (SMEs), based on

overall apparel imports of 14.1 billion SMEs and those from SSA countries of 128.2 million SMEs. 

 

36 The AGOA defines a lesser-developed SSA country as one that had a per-capita gross national product of less

than $1,500 in 1998, as measured by the World Bank. All but six SSA countries (Botswana, Gabon, Mauritius,

Namibia, Seychelles, and South Africa) meet the definition of a lesser-developed country.

4-8

among the trade benefits in this legislation is preferential treatment for certain textiles and apparel from

SSA and CBERA countries. The legislation also suspends or reduces U.S. tariffs on imports of worsted

wool fabrics and their inputs in an effort to improve the competitiveness of the U.S. tailored clothing

industry and, as part of an accord with the EU, changes the rules of origin for certain textile articles. The

key textile and apparel provisions of the Trade and Development Act of 2000 are discussed below.

African Growth and Opportunity Act

The Africa Growth and Opportunity Act (AGOA) grants duty-free benefits under the Generalized

System of Preferences program to imports of qualifying apparel from eligible SSA countries for 8 years

beginning on October 1, 2000. It also eliminates existing U.S. quotas on imports of textiles and apparel

from SSA countries, and allows imports of such goods from all SSA countries to enter free of quota during

the 8-year period.33 The only SSA countries currently subject to such quotas are Kenya and Mauritius.

However, the AGOA grants preferential treatment (duty- and quota-free benefits) to SSA countries

contingent upon their adoption of enforcement measures to prevent unlawful transshipments of textiles and

apparel from third countries.

Unlimited preferential treatment is granted under the AGOA to apparel from SSA countries made

of fabrics produced in the United States of U.S. yarns. If the U.S. fabrics used in the production of such

apparel are cut into garment parts in SSA countries rather than the United States, the garments must also

be sewn together with U.S. thread. Unlimited preferential treatment is also granted to (1) knit-to-shape

sweaters in chief weight of cashmere or containing 50 percent or more by weight of wool measuring 18.5

microns in diameter or finer (merino wool); (2) apparel wholly assembled from fabric or yarn not available

in commercial quantities in the United States;34 and (3) handloomed, handmade, and folklore articles.

Preferential treatment is also granted to a specified amount of imports of SSA apparel made from

fabrics that are produced in SSA countries of U.S. or SSA yarns (regional fabrics). Imports of SSA

apparel made of regional fabrics will be subject to an annual cap beginning on October 1, 2000, equal to

1.5 percent of the overall quantity of U.S. apparel imports in the preceding 12-month period, and rising in

each of the seven succeeding 1-year periods in equal increments, to 3.5 percent in the final 1-year period

beginning on October 1, 2007.35 A special rule allows apparel entered under the cap from “lesserdeveloped” SSA countries to be made of third-country fabrics (other than U.S. or SSA fabrics) for the first

4 years, through September 30, 2004.36 Apparel of regional or third-country fabrics covered by the cap are

subject to a “surge mechanism,” under which the U.S. Secretary of Commerce may suspend duty-free

treatment on any such article whenever the Secretary determines that the article is being imported in such

increased quantities as to threaten or cause serious damage to the U.S. industry.
 

37 The United States requires visas for textiles and apparel from a number of countries. Issued by the quota

regulatory authority of the country in which the goods originate, a visa is an endorsement that certifies the origin of

the goods, specifies the product types and quantity, and authorizes the shipment.

 

38 Knit apparel made of regional knit fabrics includes garments cut and assembled from knit fabrics or those

knit-to-shape directly from yarns (sweaters).

4-9

The AGOA eliminates existing U.S. quotas on textiles and apparel from Kenya and Mauritius

within 30 days after these countries adopt an effective visa system to prevent the transshipment of textiles

and apparel from third countries and to prevent the use of counterfeit documents relating to importation of

the articles into the United States.37 This requirement for an effective visa system also applies to other SSA

countries if they are to receive the preferential treatment. Sub-Saharan African countries are also required

to enact legislation or promulgate regulations that would permit the U.S. Customs Service verification

teams the access necessary to investigate alleged transshipments. There are also criteria for production and

export record-keeping requirements, country-of-origin documentation, and penalties for exporters who

transship.

U. S.-Caribbean Basin Trade Partnership Act

The U.S.-Caribbean Basin Trade Partnership Act (the Act) allows imports of qualifying apparel

from CBERA beneficiary countries to enter free of duty and quota during a transition period beginning on

October 1, 2000, and ending on the earlier of September 30, 2008, or the date on which the Free Trade

Area of the Americas or a similar free-trade agreement between the United States and CBERA beneficiary

countries enters into force. The preferential treatment (duty- and quota-free benefits) is essentially

equivalent to that provided under NAFTA for similar goods from Mexico, which competes with CBERA

countries for apparel assembly work from U.S. firms.

Unlimited preferential treatment under the Act is granted to apparel assembled from fabrics made

in the United States of U.S. yarns. If the U.S. fabric used in the production of such apparel is cut into

garment parts in CBERA countries rather than in the United States, the apparel must also be sewn together

with U.S. thread. Unlimited preferential treatment is also granted to textile luggage assembled from U.S.

fabrics made of U.S. yarns; apparel assembled from fabrics deemed to be in “short supply” in the United

States under NAFTA (e.g., silk or linen fabric, velveteen or fine-wale corduroy cotton fabric, and handwoven Harris tweed wool fabric); and handloomed, handmade, and folklore articles.

The Act grants preferential treatment for limited amounts of knit apparel, except socks, made of

fabrics knitted in CBERA countries (regional knit fabrics), provided that the fabrics are produced of U.S.

yarns.38 This preferential treatment is limited to 4.2 million dozen outerwear T-shirts and 250 million

square meter equivalents (SMEs) of other knit apparel, for the 1-year period beginning on October 1, 2000.

Both caps are to be increased by 16 percent in each succeeding 1-year period through September 30, 2004,

and remain at those levels through September 30, 2008.

Preferential treatment is also granted to brassieres from CBERA countries cut and sewn or

otherwise assembled in the United States, CBERA countries, or both. For the 1-year period beginning on

October 1, 2001, and in each of the six succeeding 1-year periods, preferential treatment is only granted to

producers whose total costs of the U.S. fabric components during the previous 1-year period is at least 75

percent of the aggregate declared customs value of the fabric contained in all of their brassieres entered

during that period. In general, preferential treatment is only granted to producers who use mostly U.S.

fabric components.
 

39 Also in response to EU concerns about section 334 rules, statistical provisions were created in the

Harmonized Tariff Schedule of the United States in 1999 for “discharge printed fabrics” in order to exempt the

fabrics from visa and quota requirements applicable to selected countries in which the base fabric was made.

 

40 NAFTA contains a tariff preference level that permits specified amounts of wool apparel from Canada to

enter the United States free of duty even though the garments do not meet the NAFTA rules of origin (e.g., the

suits are made of European fabric). 

 

41 The fabrics are classifiable under U.S. Harmonized Tariff Schedule (HTS) subheadings 5111.11.70,

5111.19.60, 5112.11.20, and 5112.19.90.

 

42 The duty reductions temporarily and partially eliminate the “tariff inversion” that exists for the fabrics, where

the tariff is higher on the fabric than on the finished garment made of such fabric.

4-10

Rules of origin

Section 405 of the Trade and Development Act of 2000 changes the rules of origin for certain dyed

and printed fabrics and “flat goods” (e.g., bed sheets and scarves). Under the current rules of origin, which

were implemented on July 1, 1996, as required by section 334 of the Uruguay Round Agreements Act, the

country of origin for fabrics and flat goods is the country in which the base fabric was made, regardless of

any further finishing operations performed in other countries. For nonwool fabrics and flat goods made

with nonwool and noncotton fabrics (containing less than 16 percent by weight of cotton), the legislation

restores the rules of origin in effect before July 1996, which permitted the processes of dyeing and printing

to confer origin, when accompanied by two or more finishing operations.

The Clinton Administration requested this change to implement the terms of an August 1999

agreement with the EU. In May 1997, the EU filed a request with the WTO for consultations with the

United States, claiming that the rules adversely affected its exports of dyed and printed fabrics and flat

goods to the U.S. market. The EU stated that as a result of the U.S. rules change in 1996, EU exports of

these articles had lost their quota-free access to the U.S. market and EU exporters had to comply with any

U.S. quota or visa requirements applicable to the country of origin of the base fabric. In addition, EU silk

accessories, such as scarves, had to be marked as a product of the country in which the base fabric was

formed (mainly in China), rather than as a product of the EU country in which the fabric was printed, dyed,

and otherwise finished (e.g., Italy or France), as was the usual case under the previous rules. On June 25,

1999, the President signed the Miscellaneous Trade and Technical Corrections Act of 1999 (PL-106-36),

which exempts woven silk fabrics and scarves from country-of-origin marking requirements under section

304 of the Tariff Act of 1930.39

Fine wool fabrics 

Title V of the Trade and Development Act of 2000 reduces U.S. tariffs on worsted wool fabrics for

tailored clothing and suspends the tariffs on fine wool yarns and fine raw wool for 3 years beginning on

January 1, 2001. These tariff changes are intended to improve the competitiveness of the U.S. tailored

clothing industry relative to its counterpart in Canada, whose lower fabric duties have enabled the

Canadian industry to greatly expand its exports of men’s suits to the U.S. market under NAFTA.40 Since

implementation of the United States-Canada Free Trade Agreement in 1989, which was suspended in 1994

and its duty phaseout schedules incorporated into NAFTA, U.S. imports of men’s and boys’ wool suits

from Canada grew sixfold, to 1.3 million suits valued at $157 million in 1999.

Title V creates two tariff-rate quotas (TRQs) for the purpose of granting duty reductions on

worsted wool fabrics41 certified by the importer as suitable for use in making men’s or boys’ suits, suit-type

jackets, and trousers.42 One TRQ will permit 2.5 million SMEs of wool fabrics having average fiber

diameters greater than 18.5 microns to enter each year at 19.3 percent, the same rate as that for men’s and
 

43 The 19.3 percent rate will be subject to the same staged duty reductions as those agreed to by the United

States in the Uruguay Round of multilateral trade negotiations for men’s and boys’ wool suit-type jackets (HTS

subheading 6203.31.00). The tariff on these items will be reduced to 18.8 percent in 2001, 18.4 percent in 2002,

and 18 percent in 2003 (the last year of the temporary duty reductions for the fabrics). 

 

44 The President is authorized to reduce the 6 percent rate, as necessary, to equalize the rate with that of

Canada.

 

45 The duty suspension applies to wool yarns under HTS subheading 5107.10.00 (normal trade relations rate of

6.9 percent in 2001) and to wool fibers and tops under headings 5101.11 - 5101.30, 5103.10, 5103.20, 5104.00,

5105.21, and 5105.29. Wool tops are used in the manufacture of worsted yarn and are a loose, untwisted rope of

fibers that have been combed to straighten the fibers and remove the short fibers.

 

46 Section 751(c)(1) of the Act (19 U.S.C. § 1675 (c)(1)).

 

47 A complete schedule for these “transition” reviews (321 in total) was published in the Federal Register on

May 29, 1998, and can be found at Internet address http://205.197.120.60/oinv/sunset.nsf, as well as, at

Commerce's Internet address http://www.ita.doc.gov/import_admin/records/sunset. 

4-11

boys’ suit-type jackets of worsted wool fabrics.43 The other TRQ will allow 1.5 million SMEs of wool

fabrics (having average fiber diameters of 18.5 microns or less) to enter each year at 6 percent, the same as

Canada’s rate on the finer wool fabrics.44 Imports in excess of the TRQ limits will be subject to the normal

trade relations rate (28.3 percent in 2001). Title V also suspends the tariffs on wool yarns, fibers, and tops

having average fiber diameters of 18.5 microns or less.45

Title V authorizes the President to take action to ensure that the TRQs are allocated fairly to firms

that make men’s and boys’ worsted wool tailored clothing in the United States and that apply for an

allocation based on the amount of worsted wool suits made during the prior calendar year. The President

has the authority to modify the TRQ limits in response to requests from U.S. producers of men’s and boys’

worsted wool tailored clothing, subject to a review of U.S. market conditions, but by not more than 1.0

million SMEs in any of the 3 years. Title V also provides for the establishment of a trust fund for wool

research, development, and promotion and for a partial refund of duties paid by specified U.S.

manufacturers on imports of the wool fabrics, yarns, fibers, and tops (without regard to micron level) in

each of the years 2000, 2001, and 2002.

Laura Rodriguez-Archila

(202) 205-3499

lrodriguez@usitc.gov

FIVE-YEAR (SUNSET) REVIEWS OF ANTIDUMPING

AND COUNTERVAILING DUTY ORDERS

The Uruguay Round Agreements Act, approved in late 1994, amended the U.S. antidumping (AD)

and countervailing duty (CVD) laws in several respects. One of the most significant changes is the

provision requiring U.S. Department of Commerce (Commerce) and the U.S. International Trade

Commission (Commission) to conduct reviews (sunset reviews), no later than 5 years after an AD or CVD

order is issued, to determine whether revoking the order would be likely to lead to continuation or

recurrence of dumping or subsidies (determined by Commerce) and of material injury (determined by the

Commission) within a reasonably foreseeable time.46 This requirement resulted in the institution of reviews

of all outstanding AD and CVD orders in existence as of January 1, 1995, over a 3-year “transition period”

that began in July 1998 and ends in June 2001.47 Five-year reviews of all AD and CVD orders that have

been issued since January 1, 1995, must be initiated by Commerce by no later than 30 days prior to their

5-year anniversary. The Commission institutes its reviews on the same day as Commerce. A summary of
 

48 For additional information on sunset review cases, see USITC, “5-Year Sunset Review” at Internet address

http://www.ita.doc.gov/import_admin/records/sunset/ss-home.htm.

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the outcomes of the review cases to date is provided in table 4-1. Major deadlines in the sunset review

process are highlighted in table 4-2. Appendix E displays the status of sunset reviews that have been

instituted through August 2000.48

Tracy Quilter

(202) 205-3437

tquilter@usitc.gov

Table 4-1

Five-year (sunset) review status1

Review/Institution period

Number

instituted

No responses:

Revoked by Commerce2

Commission decision3

Expedited Full

Transition/July 1998-Dec. 1999 ............ 309 (105) 75 (36) 451 (28) 5183 (41)

Normal/Jan. 2000-Aug. 2000 .............. 24 (10) 2 (1) 63 (3) 76 (2)

1

 As of Aug. 22, 2000. Numbers shown in parentheses are on a grouped basis, meaning that reviews on the

same or similar products from different countries that were instituted simultaneously and/or reviews of

antidumping and countervailing duty orders on the same or similar products that were instituted simultaneously

are counted as one. Grouped numbers for revocations mean that all orders in a group were revoked; if at least

one order in a group was not revoked, the group is treated as “not revoked.” See the Commission’s Web site at

http://www.usitc.gov for details on each review.

2

 Revoked because of no domestic response to the notice of institution.

3

 For Jan.-Aug. 2000, this decision is pending for 13 (4) reviews.

4

 The current status of these reviews is as follows:

Commission determination to revoke orders .......... 3

Commission determination to not revoke orders ....... 48

Pending Commission determination ................. 0

5

 The current status of these reviews is as follows:

Commission determination to revoke orders .......... 51

Commission determination to not revoke orders ....... 73

Negative Commerce determination ................. 3

Pending Commission determination ................. 56

6

 The current status of these reviews is as follows:

Commission determination to revoke orders .......... 0

Commission determination to not revoke orders ....... 3

Pending Commission determination ................. 0

7

 The current status of these reviews is as follows:

Commission determination to revoke orders .......... 0

Commission determination to not revoke orders ....... 0

Pending Commission determination ................. 6

Source: Compiled by USITC staff from “5. Five-Year Review Status,” at Internet address

http://205.197.120.60/oinv/sunset.nsf/, retrieved Aug. 28, 2000.
4-13

Table 4-2

Simplified process of 5-year (sunset) review cases

U.S. Department of Commerce

(Commerce) Day

U.S. International Trade Commission

(Commission)

Initiates investigation 0 Institutes investigation

Deadline for domestic industry response to notice of

initiation

15

Notify Commission regarding domestic response 20

50 Submission of requested information

for inclusion in review

No domestic response--final determination - revoking

order or termination of suspended investigation

90

95 Determination on adequacy of response

from interested parties

Expedited review--final determination on

margins/subsidy

120

150 Expedited review--final determination

on injury (can be extended 90 days for

extraordinarily complicated case)

Full review--final determination on margins/subsidy 240

Extraordinary complicated case--full review--

final determination on margins/subsidy

330

360 Full review--final determination on

injury

450 Extraordinary complicated case--

full review--final determination on injury

Source: Compiled by USITC staff.
 

49 WTO, “Settling Disputes, the WTO’s Most Individual Contribution,” Feb. 6, 1998, found at Internet address

http://www.wto.org/wto/about/dispute1.htm, retrieved June 8, 2000.

 

50 USTR, “What is the World Trade Organization (WTO)?,” Apr. 12, 2000, found at Internet address

http://www.ustr.gov/new/wtofact3.pdf, retrieved June 8, 2000.

 

51 Article 3 (General Provisions), Annex 2 (Understanding on Rules and Procedures Governing the Settlement

of Disputes), Final Act of the Uruguay Round, Agreement Establishing the World Trade Organization.

 

52 In addition to merchandise trade, among the agreements covered under the DSU include those on services,

intellectual property, government procurement, and non-tariff barriers that include health, safety, labor,

environmental standards, and product safety issues. Appendix 1 (Agreements Covered by the Understanding) and

Appendix 2 (Special or Additional Rules and procedures Contained in the Covered Agreements), Annex 2.

 

53 The GATT provided no fixed timetables for dispute settlement. WTO, “Settling Disputes.”

 

54 Under the GATT, parties could unilaterally veto unfavorable findings. Ibid.

 

55 WTO Secretariat, “WTO’s Unique System of Settling Disputes Nears 200 Cases in 2000,” June 2000, found

at Internet address http://www.wto.org/wto/new/Press180.htm, retrieved June 14, 2000.

4-14

THE WTO DISPUTE SETTLEMENT UNDERSTANDING

The 1994 Uruguay Round Agreements (URA) provided a more structured and clearly defined49 (and

more effective50) mechanism than had existed under the predecessor General Agreement on Trade and

Tariffs (GATT) for resolving trade-policy disputes among members of the World Trade Organization

(WTO). Some specific aims of the WTO’s Understanding on Rules and Procedures Governing the

Settlement of Disputes (Dispute Settlement Understanding or DSU), found under Article 3 (General

Provisions), are to:51

• provide security and predictability to the rules-based multilateral trading system;

• achieve prompt settlement of disputes;

• secure positive solutions to disputes;

• secure the withdrawal of so-determined offending measures;

• resort to compensation only if the withdrawal of a measure is impracticable; and,

• allow for suspension by the aggrieved party of trade benefits granted to the responding party,

but only as a last resort.

Unlike the previous GATT dispute-settlement mechanism, the WTO DSU is an integral part of the

operation of the URA (“integrative”) providing for a single, unified dispute-settlement procedure reaching

across essentially all categories under the URA.52 Recourse to the DSU process is compulsory for all WTO

members. Specific but flexible timetables are prescribed for each step of the DSU process, to correct the

tendency for cases to drag on inconclusively for an extended period of time as happened under the previous

GATT regime.53 Rulings of Dispute Settlement Body (DSB) panels are binding, being automatically

adopted unless opposed by all WTO members.54 Moreover, panel decisions are enforceable, as the

prevailing party can seek permission from the DSB to “retaliate” by suspending trade concessions to the

other party, should the other party fail to abide by the decision and compensation negotiations fail. The

WTO’s dispute settlement procedures prescribe a series of formal consultations among the parties,

examinations of the evidence by an impartial dispute-settlement panel, possibility for appeals of panel

rulings, and compliance negotiations. These various steps and their approximate timing are summarized in

table 4-3. However, at all times, parties in a dispute are encouraged to consult with each other to reach a

mutually agreeable settlement outside the formal dispute settlement process. 

According to the WTO Secretariat, involvement of selected members in WTO proceedings, as well

as WTO agreements cited in the disputes, during January 1995 through May 2000, are as follows:55
 

56 U.S. General Accounting Office (GAO), World Trade Organization, U.S. Experience to Date in Dispute

Settlement System, Briefing Report to the Chairman Committee on Ways and Means, House of Representatives,

National Security and International Affairs Division, GAO/NSIAD/OGC-00-196BR, June 2000, p. 29.

 

57 Ibid.

 

58 Ibid., p. 28.

4-15

Selected members as Complainant as Respondent

United States ................. 60 42

European Community countries ... 50 28

Japan ...................... 8 12

Number

Agreement cited of cases

Sanitary-Phytosanitary (SPS)/Technical Barriers to Trade (TBT) .... 26

Agriculture ............................................. 25

Textiles ................................................ 13

Trade Related Investment Measures (TRIMS) ................... 15

Trade-Related Aspects of Intellectual Property Rights (TRIPS) ...... 21

General Agreement on Trade in Services (GATS) ................ 9

In a recent assessment of DSU cases involving the United States, the U.S. General Accounting

Office (GAO) concluded that “...the United States has gained more than it has lost in the WTO dispute

settlement system to date.”56 Reasons cited for this conclusion include (1) the U.S. ability to effect changes

to several foreign laws, regulations, and practices that it considered to restrict trade, (2) several cases in

which the United States prevailed that provided commercial benefits to U.S. exporters or investors, and (3)

several WTO rulings that have upheld trade principles that are important to the United States.57 Moreover,

other conclusions reached by the GAO in this assessment were that:58

• the impact on the United States should not be judged merely by wins and losses, or commercial

value, alone;

• there are not enough cases to fully evaluate the system; and

• some high-profile cases involving the United States are in progress.

 Appendix F displays the status of cases involving the United States. Preliminary observations,

based on issues entering the formal dispute settlement process in the first 5 years, are that the WTO’s DSU

has become a frequently used tool of the major traders in the world economy and increasingly used by

developing countries as well. The United States reportedly has allayed the concerns of some nations that its

dominant economic position would hamper observance of panel decisions and, instead, has developed a

record of complying with DSU rulings; when called for, the United States has brought its regulations into

conformity. In contrast, so far the European Union has resisted implementing compliance following adverse

decisions. In two prominent cases, the EU has resisted compliance and, for the first time under the DSU,

the DSB authorized WTO members (Canada and the United States) to retaliate against the EU by

suspending concessions in compensation for the EU failure to implement panel and Appellate Body

recommendations.

Michelle Vaca-Senecal

(202) 205-3356

mvaca-senec@usitc.gov
4-16

Table 4-3

Simplified overview of the World Trade Organization (WTO) Dispute Settlement Understanding (DSU)

procedure

Approximate time period1 Event2

----- Problem identification

WTO-member country identifies alleged violations of WTO rules by another

member/other members and brings a case forward before the Dispute Settlement

Body (DSB).

60 days Consultations

The parties are required to discuss and attempt to settle a dispute by themselves.

This stage may include mediation.

45 days Panel establishment

Panelists are appointed by the DSB and the panel is formed.

6 months Panel examination

There are normally two meetings with parties, with any third parties participating

at the first meeting. The panel may consult outside experts or appoint an expert

review group to prepare an advisory report. The panel issues an interim report,

which is circulated to the parties for review. Following this, the panel issues its

final report, which is circulated to all WTO members.

3 weeks Final panel report to DSB.

60 days Adoption of panel report recommendations by DSB (unless rejected by

consensus).

 Total of 1 year (if no appeal)3

60-90 days Appeal to Appellate Body and the appeals report is sent to the DSB.

30 days Adoption of the appeals report recommendations by the DSB (unless rejected

by consensus).

 Total of 1 year and 3 months (including appeal)3

30 days or “reasonable

 period of time” to comply

Compliance

The losing party reports to DSB its intent to comply with recommendations or

enter into compensation negotiations.

20 days Compensation negotiations between parties takes place.

Suspension of concessions (retaliation) may be implemented under DSB

authorization if compliance does not take place or if compensation negotiations

fail.

 Total of 1 year, 1 month, and 20 days (if no appeal, including time for compliance and compensation

 negotiations); or 1 year, 4 months, and 20 days (including appeal)3

 

1

 Approximate time periods for each stage are target figures, for the agreement is flexible.

 

2

 Eight basic steps (underlined) may be identified among the numerous procedures in the DSU process.

 

3

 Totals are also approximate.

Source: Annex (Understanding on Rules and Procedures Governing the Settlement of Disputes), Final Act of the

Uruguay Round, Agreement Establishing the World Trade Organization. See also John Jackson, “The Role and

Effectiveness of the WTO Dispute Settlement Mechanism,” Brookings Trade Forum on Policy Challenges for the

New Millennium, Brookings Institute, Washington, DC, Apr. 27-28, 2000, p. 6; World Trade Organization (WTO),

“Settling Disputes, the WTO’s Most Individual Contribution,” Feb. 6, 1998, found at Internet address

http://www.wto.org/wto/about/dispute1.htm, retrieved June 8, 2000;” and Jean Heilman Grier, “Dispute Settlement

and the World Trade Organization,” U.S. Department of Commerce, International Trade Administration, Feb. 1995,

found at Internet address http://www.ita.doc.gov/legal/dsuwto.html, retrieved June 8, 2000.
 

1

 See “Commodity Analysis of Cotton, Not Carded or Combed,” in this chapter.

 

2

 China imposes 13-percent value-added tax on most agricultural products, but soybean meal had previously

been granted a special exemption.

 

3

 See ch. 2 for a general discussion about U.S. and international macroeconomic conditions that influenced U.S.

merchandise trade performance in 1999.

5-1

,,,,,,,,,,,,,,,,

CHAPTER 5

Agricultural Products

Alfred L. Dennis, Coordinator

(202) 205-3316

dennis@usitc.gov

The U.S. trade surplus in agricultural products fell by $6.1 billion (50 percent) to $6.1 billion in

1999 (table 5-1). This decline follows a 38-percent decline from the previous year, which was already the

smallest surplus in more than a decade. The agricultural products sector typically maintains the largest

U.S. trade surplus among industry/commodity sectors. However, a 7-percent reduction in the value of U.S.

agricultural products exports, combined with 5-percent growth in the value of U.S. imports led to the

erosion of the 1999 trade surplus. Many important U.S. agricultural markets are in Asia, but exports

overall to the region declined slightly (by less than 1 percent), despite notable increased exports to Korea

and Japan. 

U.S. exports of agricultural products declined by $3.9 billion (7 percent) to $55.6 billion in 1999

(table 5-2), following a $5.9 billion drop in 1998. About 41 percent of the decline in 1999 exports was

accounted for by cotton, not carded or combed, after funding for the Step 2 export program1 was exhausted

for most of 1999. The second-largest decline was for exports of cigarettes, which fell primarily because of

declining cigarette consumption in some of the major export markets such as the European Union (EU) and

Russia, and as increased competition in those markets with domestic cigarette producers, prompted U.S.

cigarette manufacturers to shift some production from facilities in the United States to the EU countries.

Exports of fats and oils shrank as world prices declined by 22 percent and as increased exports of palm oil

from Malaysia displaced U.S. oil exports in third-country markets. Another important agricultural export,

animal feeds, fell as a result of lower prices for soybean meal, an important ingredient in many animal

feeds, and the expiration of the waiver of a 13-percent value-added tax on soybean meal exported after

January 1, 1999 to China, a primary destination for U.S. soybean meal.2

U.S. imports of agricultural products rose by $2.1 billion (5 percent) to $49.5 billion in 1999

(table 5-3). Many of the imports exhibiting the largest increases included income-sensitive products, such

as shellfish and wine and certain other fermented beverages, and occurred during a period of rising income

levels in the United States.3 In contrast, there were significant import declines for coffee and tea, and sugar.

Low world prices for coffee resulted in a decline in the value of U.S. imports even though the volume of

U.S. green coffee imports actually increased by 8 percent. Trade statistics for all product groups in the

agricultural products sector are presented in table 5-4 at the end of this chapter.
5-2

Table 5-1

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

balance, by selected countries and country groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,

Item 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––– Million dollars ––––––––

U.S. exports of domestic merchandise:

Canada ..................................... 7,458 7,608 151 2.0

Japan ....................................... 11,747 11,984 237 2.0

Mexico ...................................... 6,362 5,850 -512 -8.1

Netherlands .................................. 1,701 1,618 -83 -4.9

Korea ....................................... 2,398 2,763 365 15.2

France ...................................... 570 437 -133 -23.3

Thailand ..................................... 447 445 -2 -0.3

Taiwan ...................................... 1,961 2,093 132 6.8

United Kingdom ............................... 1,294 1,182 -112 -8.6

Italy ........................................ 777 586 -190 -24.5

All other ..................................... 24,779 21,002 -3,777 -15.2

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 59,494 55,569 -3,924 -6.6

EU-15 ...................................... 9,530 7,508 -2,022 -21.2

OPEC ...................................... 2,521 2,449 -72 -2.9

Latin America ................................. 11,779 10,436 -1,344 -11.4

CBERA ..................................... 2,693 2,605 -88 -3.3

Asia ........................................ 22,175 22,135 -39 -0.2

Sub-Saharan Africa ............................ 781 728 -53 -6.8

Central and Eastern Europe ...................... 378 272 -106 -28.1

U.S. imports for consumption:

Canada ..................................... 9,785 10,349 564 5.8

Japan ....................................... 445 482 37 8.4

Mexico ...................................... 5,396 5,631 235 4.4

Netherlands .................................. 1,365 1,443 78 5.7

Korea ....................................... 160 184 24 15.1

France ...................................... 1,845 2,176 332 18.0

Thailand ..................................... 1,922 2,117 195 10.1

Taiwan ...................................... 390 412 22 5.6

United Kingdom ............................... 1,134 1,264 131 11.5

Italy ........................................ 1,683 1,756 73 4.3

All other ..................................... 23,204 23,656 451 1.9

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 47,328 49,469 2,141 4.5

EU-15 ...................................... 9,206 9,930 724 7.9

OPEC ...................................... 1,291 1,282 -9 -0.7

Latin America ................................. 15,481 15,727 246 1.6

CBERA ..................................... 3,503 3,189 -315 -9.0

Asia ........................................ 7,608 8,010 402 5.3

Sub-Saharan Africa ............................ 919 833 -87 -9.4

Central and Eastern Europe ...................... 260 254 -5 -2.1

U.S. merchandise trade balance:

Canada ..................................... -2,327 -2,740 -413 -17.8

Japan ....................................... 11,302 11,502 199 1.8

Mexico ...................................... 967 219 -748 -77.4

Netherlands .................................. 336 176 -161 -47.8

Korea ....................................... 2,238 2,579 341 15.2

France ...................................... -1,274 -1,739 -465 -36.5

Thailand ..................................... -1,475 -1,671 -196 -13.3

Taiwan ...................................... 1,571 1,682 111 7.1

United Kingdom ............................... 160 -82 -242 (

2

)

Italy ........................................ -906 -1,169 -263 -29.0

All other ..................................... 1,575 -2,654 -4,229 (

2

)

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 12,166 6,100 -6,065 -49.9

EU-15 ...................................... 324 -2,422 -2,746 (

2

)

OPEC ...................................... 1,231 1,168 -63 -5.1

Latin America ................................. -3,702 -5,292 -1,590 -42.9

CBERA ..................................... -810 -584 226 27.9

Asia ........................................ 14,566 14,125 -441 -3.0

Sub-Saharan Africa ............................ -138 -105 33 24.0

Central and Eastern Europe ...................... 118 17 -101 -85.4

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

 

2

 Not meaningful for purposes of comparison.

Note.--Calculations based on unrounded data. The countries shown are those with the largest total U.S. trade (U.S.

imports plus exports) in these products in 1999.

Source: Compiled from official statistics of the U.S. Department of Commerce.
5-3

Table 5-2

Leading decreases in U.S. exports of agricultural products, 1998 and 1999

Change, 1999 from 1998

Sector/commodity 1998 1999 Absolute Percent

–––––––––– Million dollars ––––––––––

Cotton, not carded or combed (AG049) ............ 2,545 968 -1,577 -62

Cigarettes (AG045) . .......................... 4,166 3,232 -934 -22

Animal or vegetable fats and oils (AG033) . ......... 2,763 1,947 -816 -29

Animal feeds (AG013) ......................... 4,307 3,621 -686 -16

Oilseeds (AG032) ............................ 5,166 4,776 -390 -7

Poultry (AG005) .............................. 2,255 1,878 -377 -17

All other ................................... 38,292 39,147 855 2

 Total .................................... 59,494 55,569 -3,924 -7

Note.--Calculations based on unrounded data.

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

Table 5-3

Leading changes in U.S. imports of agricultural products, 1998 and 1999

Change, 1999 from 1998

Sector/commodity 1998 1999 Absolute Percent

–––––––––– Million dollars –––––––––

Increases:

 Shellfish (AG009). ............................ 4,654 5,072 418 9

 Wine and certain other fermented

 beverages (AG041) ......................... 1,881 2,210 329 17

 Fresh or frozen fish (AG006) .................... 2,641 2,945 303 11

 Distilled spirits (AG042) ........................ 2,086 2,383 297 14

Decreases: 

 Coffee and tea (AG028) ........................ 3,656 3,114 -542 -15

 Sugar and other sweeteners (AG012) ............. 1,068 879 -188 -18

 Miscellaneous vegetable substances (AG017) ....... 993 839 -154 -15

 Animal or vegetable fats and oils (AG033). ......... 1,475 1,348 -126 -9

All other ..................................... 28,874 30,679 1,805 6

 Total .................................... 47,328 49,469 2,141 5

Note.--Calculations based on unrounded data.

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

U.S. BILATERAL TRADE

The principal U.S. trade partners for agricultural products in 1999 were Canada, Japan, Mexico,

Netherlands, Korea, and France. Compared with 1998, the only shift in the ranking of U.S. agricultural

products trade partners was that France replaced China as the sixth-leading partner and Netherlands moved

ahead of Korea as the fourth-leading partner.

In 1999, the largest absolute decline in the U.S. trade position for agricultural products among the

top 10 single-country suppliers occurred with Mexico, as the U.S. surplus fell by $748 million (77 percent)

to $219 million in 1999 (table 5-1). Exports to Mexico dropped by $512 million (8 percent) to $5.9 billion,

led by cotton and soybeans, whereas imports from Mexico increased by $235 million (4 percent) to $5.6
 

4

 See app. G for a more detailed discussion about how exchange rate shifts and other macroeconomic factors

affect trade flows, particularly “Euro depreciation.” 

 

5

 U.S. Department of Agriculture (USDA), Foreign Agricultural Service (FAS), “World Agricultural

Production,” USDA/FAS Circular Series WAP 02-99, Feb. 1999, p. 10.

 

6

 National Cotton Council of America, “The Economic Impacts of Step 2,” Feb. 2000, found at Internet address

http:// www.cotton.org/step2%20Impact.htm, retrieved Apr. 20, 2000.

 

7

 Ibid.

5-4

billion, led by beer and other alcoholic beverages, and fresh melons. Increased U.S. consumption of

Mexican beer was promoted by increased advertising in the United States.

U.S. trade in agricultural products with the EU changed significantly from 1998 to 1999, from a

surplus of $324 million to a deficit of $2.4 billion. This is a major turnabout from the U.S. trade surplus

with the EU of $2.8 billion as recently as 1996. U.S. agricultural exports to the EU fell by $2.0 billion (21

percent), whereas imports increased by $724 million (8 percent). Over one-half of the decline in U.S.

exports to the EU was attributable to reduced exports of cigarettes and soybeans. EU cigarette production

capacity increased in 1999 as Philip Morris and other cigarette manufacturers added capacity to their

European production facilities and reduced exports to Europe from their U.S. plants. The value of U.S.

soybean exports to Europe declined in 1999 as world prices fell more than 20 percent as compared with

1998 levels, and as the EU purchased more soybeans from Argentina and Brazil following bumper harvests

in those countries. The strong U.S. dollar relative to the currencies of the EU for most of 1999 further

discouraged exports and encouraged imports.4 U.S. agricultural exports to Korea increased by $365 million

(15 percent) to $2.8 billion, led by corn, frozen beef, and soybean oil. U.S. exports to Korea were

depressed in 1998 owing to the Asian financial crisis, but bounced back in 1999 to nearly the same levels

as in 1997. In contrast, U.S. agricultural imports from Canada rose by $564 million (6 percent) to $10.3

billion in 1999, led by chilled beef and seafood, particularly crab and lobster. U.S. agricultural imports

from France increased by $332 million (18 percent) to $2.2 billion in 1999, mainly in the form of higherpriced wine, brandy, and liqueur to meet increased demand for luxury items in the United States.

COMMODITY ANALYSIS OF COTTON, NOT CARDED OR COMBED

The U.S. trade surplus in uncarded cotton, not carded or combed (hereafter cotton) declined by

$1.7 billion (67 percent) in 1999 to $832 million, as exports fell by $1.6 billion (62 percent) to

$968 million but imports climbed to $136 million. Moreover on a volume basis, exports declined

56 percent, from 1.62 million metric tons in 1998 to 708,000 metric tons in 1999, whereas imports

increased from 7,413 metric tons to 103,892 metric tons. U.S. cotton imports, although small compared

with exports, increased substantially from all the major suppliers. Both of these effects can be attributed to

a 27-percent decline in U.S. cotton production in 1998/99 compared to 1997/98,5 the expiration of funding

under the Step 2 Federal agricultural support program,6 the financial crisis in Asia where some of the most

important buyers of U.S. cotton are located, and to low world prices for cotton in 1999.

The Step 2 program offers certificates to encourage domestic textile mills and raw cotton exporters

to purchase U.S.-grown cotton. According to the National Cotton Council, “Step 2 encourages domestic

mills to purchase and use the last feasible bale of U.S. cotton before turning to imports.”7 Step 2 is part of

the 3-Step competitiveness program which was written into law under the 1990 Food, Agriculture,

Conservation, and Trade (FACT) Act (PL 101-624) and continued under the 1996 Federal Agriculture

Improvement and Reform (FAIR) Act (PL 104-127). Funding for Step 2 was capped at $701 million for

the life of the FAIR Act.
 

8

 USDA, FAS, “World Agricultural Production.”

 

9

 USDA, FAS, “Cotton: World Markets and Trade,” Apr. 2000, found at Internet address

http://www.fas.usda.gov/cotton/circular/2000/2004/toc.htm, retrieved Apr, 20, 2000.

 

10 See “U.S. Bilateral Trade, and Commodity Analysis of Textiles and Apparel” in ch. 9.

 

11 World Agricultural Production, USDA/FAS, Circular series WAP 12-99, Dec. 1999, p. 1.

 

12 As of June 8, 2000, the A-Index (a principal measure of international cotton prices) had risen 60 cents per

pound. USDA, FAS, “World Cotton Outlook,” found at Internet address

http://www.da.gov/cotton/circular/2000/2006/master2.htm#cotton.prices, retrieved July 7, 2000.

5-5

U.S. exports

U.S. cotton exports in 1999 fell to all leading markets when compared with the previous year.

Exports to Mexico fell by $330 million (54 percent), to Korea by $201 million (76 percent), to Japan by

$156 million (62 percent), to Turkey by $125 million (73 percent), to China by $101 million (86 percent),

and to Indonesia by $71 million (47 percent).

The United States is second only to China as a world producer of cotton. However, part of the

reason for the trade shift is that U.S. cotton production fell by 27 percent in 1998/99, when compared to

1997/98, to only 16 percent of world production.8 Perhaps a more important reason for the decline in U.S.

cotton exports, was the termination of funding for the Step 2 program. This funding was exhausted by

December 14, 1998, but on October 22, 1999, an emergency assistance package was signed by the

President which made Step 2 certificates available retroactive to October 1, 1999. Another reason for the

decline in the value of U.S. cotton exports was low world prices for cotton,9 partly reflecting domestic price

deregulation by China.10 The price of upland cotton fell from over 65 cents per pound in late 1998 to less

than 45 cents a pound in late 1999.11 As a result, the value of U.S. cotton exports exceeded the decline in

volume. However, higher U.S. production, improved world prices,12 and the resumption of the Step 2

program are expected to result in a recovery of U.S. cotton exports in 2000.

Alfred L. Dennis

(202) 205-3316

dennis@usitc.gov
Table 5-4

Agricultural products sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

See footnote(s) at end of table.

5-6

AG001 Certain miscellaneous animals and meats:

Exports .............................. 1,859 1,754 -105 -5.6

Imports .............................. 1,373 1,513 140 10.2

Trade balance ......................... 485 241 -244 -50.4

AG002 Cattle and beef:

Exports .............................. 2,382 2,753 371 15.6

Imports .............................. 2,752 2,905 152 5.5

Trade balance ......................... -370 -152 218 58.9

AG003 Swine and pork:

Exports .............................. 934 932 -2 -0.2

Imports .............................. 714 717 3 0.4

Trade balance ......................... 220 215 -5 -2.3

AG004 Sheep and meat of sheep:

Exports .............................. 35 25 -10 -29.3

Imports .............................. 166 179 14 8.1

Trade balance ......................... -131 -155 -24 -18.2

AG005 Poultry:

Exports .............................. 2,255 1,878 -377 -16.7

Imports .............................. 46 57 12 25.9

Trade balance ......................... 2,210 1,821 -389 -17.6

AG006 Fresh or frozen fish:

Exports .............................. 1,289 1,634 346 26.8

Imports .............................. 2,641 2,945 303 11.5

Trade balance ......................... -1,353 -1,310 42 3.1

AG007 Canned fish:

Exports .............................. 170 222 52 30.4

Imports .............................. 530 611 81 15.2

Trade balance ......................... -360 -389 -29 -8.1

AG008 Cured and other fish:

Exports .............................. 146 166 20 13.4

Imports .............................. 252 277 25 9.9

Trade balance ......................... -106 -111 -5 -4.9

AG009 Shellfish:

Exports .............................. 589 752 163 27.7

Imports .............................. 4,654 5,072 418 9.0

Trade balance ......................... -4,065 -4,319 -254 -6.3

AG010 Dairy produce:

Exports .............................. 592 591 -1 -0.2

Imports .............................. 1,325 1,387 62 4.7

Trade balance ......................... -733 -796 -64 -8.7

AG011 Eggs:

Exports .............................. 207 155 -52 -25.3

Imports .............................. 14 20 7 49.4

Trade balance ......................... 193 134 -59 -30.5

AG012 Sugar and other sweeteners:

Exports .............................. 381 357 -24 -6.3

Imports .............................. 1,068 879 -188 -17.7

Trade balance ......................... -687 -522 164 23.9

AG013 Animal feeds:

Exports .............................. 4,307 3,621 -686 -15.9

Imports .............................. 661 604 -57 -8.6

Trade balance ......................... 3,646 3,017 -629 -17.3

AG014 Live plants:

Exports .............................. 142 144 1 1.0
Table 5-4--Continued

Agricultural products sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

See footnote(s) at end of table.

5-7

Imports .............................. 387 428 41 10.6

Trade balance ......................... -245 -285 -40 -16.2

AG015 Seeds:

Exports .............................. 706 697 -9 -1.3

Imports .............................. 400 428 28 7.1

Trade balance ......................... 306 269 -38 -12.2

AG016 Cut flowers:

Exports .............................. 45 41 -3 -7.2

Imports .............................. 614 592 -23 -3.7

Trade balance ......................... -570 -550 20 3.4

AG017 Miscellaneous vegetable substances:

Exports .............................. 462 453 -9 -1.9

Imports .............................. 993 839 -154 -15.5

Trade balance ......................... -531 -386 145 27.3

AG018 Fresh, chilled, or frozen vegetables:

Exports .............................. 1,199 1,201 2 0.2

Imports .............................. 2,313 2,236 -76 -3.3

Trade balance ......................... -1,114 -1,035 78 7.0

AG019 Prepared or preserved vegetables, mushrooms,

 and olives:

Exports .............................. 1,617 1,565 -52 -3.2

Imports .............................. 1,218 1,384 167 13.7

Trade balance ......................... 399 180 -219 -54.9

AG020 Edible nuts:

Exports .............................. 1,392 1,212 -179 -12.9

Imports .............................. 660 794 134 20.4

Trade balance ......................... 732 418 -313 -42.8

AG021 Tropical fruit:

Exports .............................. 60 64 4 6.0

Imports .............................. 1,495 1,574 80 5.3

Trade balance ......................... -1,434 -1,510 -76 -5.3

AG022 Citrus fruit:

Exports .............................. 672 498 -174 -25.9

Imports .............................. 211 331 119 56.5

Trade balance ......................... 461 167 -293 -63.7

AG023 Deciduous fruit:

Exports .............................. 665 743 78 11.7

Imports .............................. 177 268 91 51.4

Trade balance ......................... 488 475 -13 -2.7

AG024 Other fresh fruit:

Exports .............................. 484 562 77 15.9

Imports .............................. 890 1,031 140 15.8

Trade balance ......................... -406 -469 -63 -15.5

AG025 Dried fruit other than tropical:

Exports .............................. 385 379 -6 -1.6

Imports .............................. 60 78 17 28.9

Trade balance ......................... 325 301 -24 -7.3
Table 5-4--Continued

Agricultural products sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

See footnote(s) at end of table.

5-8

AG026 Frozen fruit:

Exports .............................. 92 89 -3 -3.4

Imports .............................. 89 125 37 41.4

Trade balance ......................... 3 -37 -40 (

3

)

AG027 Prepared or preserved fruit:

Exports .............................. 185 180 -5 -2.7

Imports .............................. 484 576 92 19.1

Trade balance ......................... -299 -396 -97 -32.6

AG028 Coffee and tea:

Exports .............................. 263 284 21 7.9

Imports .............................. 3,656 3,114 -542 -14.8

Trade balance ......................... -3,393 -2,830 563 16.6

AG029 Spices:

Exports .............................. 66 72 6 8.7

Imports .............................. 455 530 74 16.3

Trade balance ......................... -389 -458 -69 -17.6

AG030 Cereals:

Exports .............................. 9,991 10,129 138 1.4

Imports .............................. 773 732 -41 -5.3

Trade balance ......................... 9,218 9,398 179 1.9

AG031 Milled grains, malts, and starches:

Exports .............................. 417 439 22 5.4

Imports .............................. 258 261 3 1.3

Trade balance ......................... 159 178 19 12.1

AG032 Oilseeds:

Exports .............................. 5,166 4,776 -390 -7.5

Imports .............................. 315 263 -51 -16.3

Trade balance ......................... 4,851 4,513 -339 -7.0

AG033 Animal or vegetable fats and oils:

Exports .............................. 2,763 1,947 -816 -29.5

Imports .............................. 1,475 1,348 -126 -8.6

Trade balance ......................... 1,289 599 -690 -53.5

AG034 Pasta, cereals, and other bakery goods:

Exports .............................. 1,051 1,044 -7 -0.7

Imports .............................. 1,461 1,637 175 12.0

Trade balance ......................... -410 -593 -183 -44.5

AG035 Sauces, condiments, and soups:

Exports .............................. 529 587 57 10.9

Imports .............................. 396 457 60 15.2

Trade balance ......................... 133 130 -3 -2.0

AG036 Infant formulas, malt extracts, and other edible

 preparations:

Exports .............................. 2,097 2,458 361 17.2

Imports .............................. 560 670 111 19.8

Trade balance ......................... 1,537 1,788 251 16.3

AG037 Cocoa, chocolate, and confectionery:

Exports .............................. 602 651 49 8.1

Imports .............................. 2,183 2,123 -60 -2.8

Trade balance ......................... -1,581 -1,472 109 6.9
Table 5-4--Continued

Agricultural products sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

See footnote(s) at end of table.

5-9

AG038 Fruit and vegetable juices:

Exports .............................. 668 748 80 12.0

Imports .............................. 677 796 119 17.6

Trade balance ......................... -9 -48 -39 -461.3

AG039 Nonalcoholic beverages, excluding fruit and

 vegetable juices:

Exports .............................. 302 328 26 8.6

Imports .............................. 568 625 57 10.1

Trade balance ......................... -266 -298 -31 -11.8

AG040 Malt beverages:

Exports .............................. 254 201 -53 -20.8

Imports .............................. 1,699 1,881 182 10.7

Trade balance ......................... -1,445 -1,680 -235 -16.2

AG041 Wine and certain other fermented beverages:

Exports .............................. 532 541 9 1.7

Imports .............................. 1,881 2,210 329 17.5

Trade balance ......................... -1,349 -1,669 -320 -23.7

AG042 Distilled spirits:

Exports .............................. 506 480 -26 -5.1

Imports .............................. 2,086 2,383 297 14.2

Trade balance ......................... -1,580 -1,902 -323 -20.4

AG043 Unmanufactured tobacco:

Exports .............................. 1,459 1,294 -164 -11.3

Imports .............................. 771 711 -60 -7.7

Trade balance ......................... 688 583 -105 -15.2

AG044 Cigars and certain other manufactured tobacco:

Exports .............................. 661 651 -10 -1.6

Imports .............................. 377 301 -76 -20.2

Trade balance ......................... 284 350 66 23.2

AG045 Cigarettes:

Exports .............................. 4,166 3,232 -934 -22.4

Imports .............................. 59 112 52 87.8

Trade balance ......................... 4,106 3,120 -987 -24.0

AG046 Hides, skins, and leather:

Exports .............................. 1,934 1,850 -84 -4.3

Imports .............................. 1,124 1,052 -72 -6.4

Trade balance ......................... 809 798 -12 -1.4

AG047 Furskins:

Exports .............................. 196 141 -55 -28.2

Imports .............................. 86 73 -13 -15.2

Trade balance ......................... 109 67 -42 -38.4

AG048 Wool and other animal hair:

Exports .............................. 13 22 10 77.4

Imports .............................. 141 70 -71 -50.2

Trade balance ......................... -128 -48 80 62.7

AG049 Cotton, not carded or combed:

Exports .............................. 2,545 968 -1,577 -62.0

Imports .............................. 14 136 123 905.6

Trade balance ......................... 2,532 832 -1,700 -67.1
Table 5-4--Continued

Agricultural products sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

5-10

AG050 Ethyl alcohol for nonbeverage purposes:

Exports .............................. 58 58 (

4

) -0.4

Imports .............................. 124 130 6 4.9

Trade balance ......................... -66 -73 -6 -9.6

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

2

 This coding system is used by the U.S. International Trade Commission to identify major groupings of HTS

import and export items for trade monitoring purposes.

3

 Not meaningful for purposes of comparison.

4

 Less than $500,000.

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
6-1

,,,,,,,,,,,,,,,,

CHAPTER 6

Forest Products

Vincent Honnold, Coordinator

(202) 205-3314

vhonnold@usitc.gov

The U.S. trade deficit in forest products increased by $3.6 billion (45 percent) in 1999 to

$11.7 billion (table 6-1). A small increase in exports of forest products of $169 million (1 percent) to $24.1

billion was overshadowed by the $3.8-billion (12-percent) rise in imports to $35.8 billion. Product groups

registering the largest increases in exports between 1998 and 1999 included lumber, up by $182 million (9

percent), and printing and writing papers, up by $140 million (10 percent) (table 6-2). Most of the growth

in U.S. imports of forest products in 1999 occurred in the wood products area as a vibrant construction

sector increased demand for building materials (table 6-3). Imports of lumber rose by $1.1 billion (16

percent), imports of wood veneer and wood panels were up by $807 million (29 percent), and imports of

moldings, millwork, and joinery climbed by $597 million (31 percent). Trade statistics for all product

groups in the forest products sector are presented in table 6-4 at the end of this chapter.

U.S. BILATERAL TRADE

In 1999, the United States had a trade surplus in forest products with 5 of its top 10 trade partners

and a trade deficit with the remainder (table 6-1). Canada is by far the largest trade partner of the United

States, accounting for 52 percent of total U.S. trade (exports plus imports) in forest products in 1999.

Other principal sectoral trade partners include Mexico, Japan, China, the United Kingdom, Germany, and

Brazil. The percentage of total U.S. trade in forest products accounted for by each of these countries,

however, is well below 10 percent.

The United States posted a $16.6 billion trade deficit with Canada in 1999, an increase of

$2.2 billion (15 percent) from 1998 (table 6-1). Although U.S. exports of forest products to Canada grew

by $397 million (6 percent) in 1999, U.S. imports rose by $2.6 billion (12 percent). Almost three-quarters

of this growth in imports was accounted for by lumber; wood veneer and wood panels; and moldings,

millwork, and joinery. Robust construction activity in the United States during 1999 increased demand for

these wood products from Canada, a traditional supplier.

The United States enjoyed a $2.0 billion trade surplus in forest products with Mexico in 1999, an

increase of $221 million (12 percent) from the surplus recorded in 1998 (table 6-1). U.S. exports rose by

$262 million (9 percent) in 1999, while U.S. imports from Mexico grew by only $41 million (4 percent).

Mexico is the second-largest trade partner of the United States in forest products. A strengthening Mexican

economy and a thriving maquiladora sector in 1999 led to increased demand for a variety of 
6-2

Table 6-1

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

balance, by selected countries and country groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,

Item 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––– Million dollars ––––––––

U.S. exports of domestic merchandise:

Canada ..................................... 6,833 7,231 397 5.8

Mexico ...................................... 2,828 3,091 262 9.3

Japan ....................................... 2,946 2,847 -99 -3.3

China ....................................... 611 637 25 4.2

United Kingdom ............................... 1,169 1,090 -79 -6.8

Germany .................................... 867 740 -128 -14.7

Brazil ....................................... 359 274 -85 -23.8

Italy ........................................ 678 614 -64 -9.4

Korea ....................................... 489 724 235 48.0

Indonesia .................................... 137 184 47 34.6

All other ..................................... 6,984 6,640 -344 -4.9

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 23,901 24,070 169 0.7

EU-15 ...................................... 4,724 4,272 -452 -9.6

OPEC ...................................... 499 510 11 2.2

Latin America ................................. 5,052 5,178 126 2.5

CBERA ..................................... 1,025 1,070 45 4.4

Asia ........................................ 5,752 5,998 245 4.3

Sub-Saharan Africa ............................ 194 155 -39 -20.1

Central and Eastern Europe ...................... 60 66 6 10.5

U.S. imports for consumption:

Canada ..................................... 21,234 23,829 2,596 12.2

Mexico ...................................... 1,003 1,044 41 4.1

Japan ....................................... 515 610 95 18.5

China ....................................... 1,244 1,526 283 22.7

United Kingdom ............................... 789 807 18 2.3

Germany .................................... 696 760 64 9.2

Brazil ....................................... 797 972 175 22.0

Italy ........................................ 364 409 45 12.2

Korea ....................................... 280 295 15 5.4

Indonesia .................................... 582 721 140 24.0

All other ..................................... 4,496 4,824 328 7.3

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 31,998 35,798 3,799 11.9

EU-15 ...................................... 3,846 3,955 110 2.8

OPEC ...................................... 610 755 145 23.7

Latin America ................................. 2,399 2,774 375 15.6

CBERA ..................................... 97 107 11 10.9

Asia ........................................ 3,864 4,488 623 16.1

Sub-Saharan Africa ............................ 106 110 4 3.6

Central and Eastern Europe ...................... 21 23 2 9.1

U.S. merchandise trade balance:

Canada ..................................... -14,400 -16,599 -2,198 -15.3

Mexico ...................................... 1,825 2,046 221 12.1

Japan ....................................... 2,431 2,237 -194 -8.0

China ....................................... -633 -890 -257 -40.6

United Kingdom ............................... 380 283 -97 -25.5

Germany .................................... 171 -20 -192 (

2

)

Brazil ....................................... -438 -698 -261 -59.5

Italy ........................................ 313 205 -108 -34.6

Korea ....................................... 209 429 220 105.0

Indonesia .................................... -445 -537 -92 -20.8

All other ..................................... 2,488 1,816 -671 -27.0

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... -8,097 -11,727 -3,630 -44.8

EU-15 ...................................... 878 316 -562 -64.0

OPEC ...................................... -111 -245 -134 -120.7

Latin America ................................. 2,653 2,404 -249 -9.4

CBERA ..................................... 928 963 35 3.7

Asia ........................................ 1,888 1,510 -378 -20.0

Sub-Saharan Africa ............................ 88 45 -43 -48.5

Central and Eastern Europe ...................... 39 43 4 11.2

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

 

2

 Not meaningful for purposes of comparison.

Note.--Calculations based on unrounded data. The countries shown are those with the largest total U.S. trade (U.S.

imports plus exports) in these products in 1999.

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

1

 U.S. Department of Agriculture (USDA), Foreign Agricultural Service (FAS), Mexico Solid Wood Products

Revised: Forest Products Annual Report 2000 (Part II, Market Report) 2000, Mexico City, AGR No. MX0027,

Feb. 18, 2000.

 

2

 USDA, FAS, Japan Solid Wood Products New Pent-Up Housing Demand on Hold as New House Mortgage

Loan Applications Diminish, Tokyo, AGR No. JA0045, Apr. 18, 2000.

 

3

 American Forest & Paper Association, Paper, Paperboard & Wood Pulp, Mar. 2000.

6-3

Table 6-2

Leading increases in U.S. exports of forest products, 1998 and 1999

Change, 1999 from 1998

Sector/commodity 1998 1999 Absolute Percent

–––––––––– Million dollars ––––––––– 

Increases: 

 Lumber (AG052) ............................. 2,002 2,184 182 9

 Printing and writing papers (AG063) .............. 1,350 1,490 140 10

 Wood pulp and wastepaper (AG059) .............. 3,452 3,540 88 3

 Paper boxes and bags (AG060) .................. 1,345 1,416 72 5

All other ..................................... 15,753 15,439 -314 -2

 Total .................................... 23,901 24,070 169 1

Note.--Calculations based on unrounded data.

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

Table 6-3

Leading increases in U.S. imports of forest products, 1998 and 1999

Change, 1999 from 1998

Sector/commodity 1998 1999 Absolute Percent

–––––––––– Million dollars –––––––––– 

Increases: 

 Lumber (AG052) ............................. 6,743 7,820 1,077 16

 Wood veneer and wood panels (AG054) ........... 2,767 3,574 807 29

 Moldings, millwork, and joinery (AG053) ........... 1,924 2,521 597 31

 Industrial papers and paperboards (AG061) ......... 2,267 2,596 329 15

All other ..................................... 18,296 19,286 990 5

 Total .................................... 31,998 35,798 3,799 12

Note.--Calculations based on unrounded data.

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

forest products from the United States, including paper boxes and bags, industrial papers and paperboard,

wood pulp and wastepaper, books and magazines, and printing and writing papers.1

The U.S. trade surplus in forest products with Japan declined by $194 million (8 percent) in 1999

to $2.2 billion as U.S. exports fell by $99 million (3 percent) and U.S. imports rose by $95 million

(19 percent) (table 6-1). Japan is the third-largest trade partner of the United States in forest products; in

the past few years, the United States’ largest bilateral trade surplus in forest products has been with Japan.

Sector exports to Japan in 1999 declined because the continued sluggishness of the Japanese economy

constrained demand for forest products.2 The rise in U.S. imports of forest products from Japan during

1999 occurred primarily in the paper products area as a result of growing U.S. demand.3
 

4

 See ch. 2 for a general discussion about U.S. and international macroeconomic conditions that influenced U.S.

merchandise trade performance in 1999.

 

5

 Lumber is classified into two principal types, softwood (coniferous) and hardwood (broad-leaved). Softwood is

primarily used as structural components in residential and industrial construction, and hardwood is primarily used

in flooring, decorative trim, and for the manufacture of furniture. 

 

6

 “U.S. Housing Market Profile,” Weekly Market Report of Lumber & Panel Products, (Portland, OR:

C.C. Crow’s Publications, Inc., Jan. 21, 2000).

 

7

 The average composite framing lumber price was $402 per thousand board-feet in 1999, compared with $349

per thousand board-feet in 1998. Random Lengths Yearbook, 1999, (Eugene, OR: Random Lengths, 2000), p. 208. 

 

8

 Imports from Canada are constrained by a duty-free quota on lumber originating in the Provinces of Alberta,

British Columbia, Ontario, and Quebec.

6-4

The U.S. trade deficit in forest products with China widened by $257 million (41 percent) in 1999.

Although exports rose by $25 million (4 percent) to $637 million, imports grew by $283 million (23

percent) to $1.5 billion (table 6-1). Increases in imports occurred among a variety of forest products,

including miscellaneous paper products; miscellaneous articles of wood; printed materials; and moldings,

millwork, and joinery. A strong U.S. economy in 1999 and concurrent high levels of consumer spending

fueled demand for imports of these items.4

COMMODITY ANALYSIS OF LUMBER5

The U.S. trade deficit in lumber increased by $895 million (19 percent) in 1999 as robust housing

and industrial construction in the United States stimulated domestic and import demand for building

materials. U.S. housing starts totaled an estimated 1.7 million in 1999, up from 1.6 million in 19986 and

amounted to the highest number of starts in the 1990s. Prices for softwood lumber generally increased in

1999.7 Imports of lumber grew by $1.1 billion (16 percent) in 1999 to $7.8 billion. Exports increased by

$182 million (9 percent) to $2.2 billion. Canada was the principal export market for U.S. lumber,

accounting for 23 percent of the export value.

U.S. imports

U.S. imports of lumber from most major suppliers increased in 1999. Much of the import value

increase was due to higher prices. The average unit value for imported lumber from all sources was

$169 per cubic meter (about $398 per thousand board-feet) in 1999, compared to $147 per cubic meter

(about $353 per thousand board-feet) in 1998. On a quantity basis, imports rose by 3 percent, from

45 million cubic meters in 1998 to 46 million cubic meters in 1999. Softwood lumber accounted for

97 percent and 94 percent of the quantity and value, respectively, of lumber imports. Canada accounted for

90 percent of the value of U.S. lumber imports, and imports from Canada grew by 15 percent in value

during 1999, but only by 1 percent in quantity.8 Imports from other countries increased by higher

percentages but still accounted for small shares of overall U.S. lumber imports. Imports from Brazil, the

second-leading supplier, were up by 27 percent but accounted for only 3 percent of U.S. lumber imports.

William J. Hoffmeier

(202) 205-3321

hoffmeier@usitc.gov
Table 6-4

Forest products sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

See footnote(s) at end of table.

6-5

AG051 Logs and rough wood products:

Exports .............................. 1,927 1,885 -41 -2.1

Imports .............................. 423 495 72 17.0

Trade balance ......................... 1,503 1,390 -113 -7.5

AG052 Lumber: 

Exports .............................. 2,002 2,184 182 9.1

Imports .............................. 6,743 7,820 1,077 16.0

Trade balance ......................... -4,741 -5,636 -895 -18.9

AG053 Moldings, millwork, and joinery:

Exports .............................. 548 545 -3 -0.5

Imports .............................. 1,924 2,521 597 31.0

Trade balance ......................... -1,376 -1,976 -600 -43.6

AG054 Wood veneer and wood panels:

Exports .............................. 929 958 29 3.1

Imports .............................. 2,767 3,574 807 29.2

Trade balance ......................... -1,838 -2,615 -778 -42.3

AG055 Wooden containers:

Exports .............................. 138 172 34 24.5

Imports .............................. 419 471 52 12.4

Trade balance ......................... -281 -299 -18 -6.4

AG056 Tools and tool handles of wood:

Exports .............................. 36 44 8 21.1

Imports .............................. 117 120 2 1.9

Trade balance ......................... -81 -75 5 6.7

AG057 Miscellaneous articles of wood:

Exports .............................. 202 187 -15 -7.5

Imports .............................. 846 1,007 161 19.1

Trade balance ......................... -644 -821 -177 -27.4

AG058 Cork and rattan:

Exports .............................. 85 90 6 6.6

Imports .............................. 447 450 3 0.7

Trade balance ......................... -362 -359 3 0.7

AG059 Wood pulp and wastepaper:

Exports .............................. 3,452 3,540 88 2.5

Imports .............................. 2,447 2,604 157 6.4

Trade balance ......................... 1,005 936 -70 -6.9

AG060 Paper boxes and bags:

Exports .............................. 1,345 1,416 72 5.3

Imports .............................. 745 802 57 7.7

Trade balance ......................... 600 615 15 2.4

AG061 Industrial papers and paperboards:

Exports .............................. 5,185 5,018 -167 -3.2

Imports .............................. 2,267 2,596 329 14.5

Trade balance ......................... 2,918 2,421 -496 -17.0

AG062 Newsprint:

Exports .............................. 460 423 -37 -8.0

Imports .............................. 3,766 3,517 -248 -6.6

Trade balance ......................... -3,305 -3,094 211 6.4

AG063 Printing and writing papers:

Exports .............................. 1,350 1,490 140 10.4

Imports .............................. 4,289 4,538 249 5.8

Trade balance ......................... -2,939 -3,048 -108 -3.7
Table 6-4--Continued

Forest products sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

6-6

AG064 Certain specialty papers:

Exports .............................. 701 641 -60 -8.5

Imports .............................. 845 971 126 14.9

Trade balance ......................... -144 -330 -186 -128.7

AG065 Miscellaneous paper products:

Exports .............................. 1,234 1,281 47 3.8

Imports .............................. 1,029 1,150 120 11.7

Trade balance ......................... 204 131 -73 -35.7

AG066 Printed matter:

Exports .............................. 4,308 4,195 -112 -2.6

Imports .............................. 2,923 3,161 238 8.1

Trade balance ......................... 1,385 1,034 -351 -25.3

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

2

 This coding system is used by the U.S. International Trade Commission to identify major groupings of HTS

import and export items for trade monitoring purposes.

Note.--Calculations based on unrounded data.

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

1

 See ch. 2 for a general discussion about U.S. and international macroeconomic conditions that influenced U.S.

merchandise trade performance in 1999.

7-1

,,,,,,,,,,,,,,,,

CHAPTER 7

Chemicals and Related Products

Stephen Wanser, Coordinator

(202) 205-3363

swanser@usitc.gov

During 1999, the U.S. trade surplus for chemicals and related products decreased by $6.2 billion

(85 percent) to $1.1 billion (table 7-1) as the growth of exports was overshadowed by the growth of

imports. U.S. exports of these products increased by $3.2 billion (4 percent) to $81.2 billion, whereas U.S.

imports rose by $9.5 billion (13 percent) to $80.2 billion. Since this sector comprises many products (e.g.

coatings, adhesives, plastics, and pigments), used in the production of manufactured goods, the

performance of the sector is strongly influenced by the level of economic activity. Hence, shifts in U.S.

sector exports and imports reflect, in part, the relative strength of the U.S. economy compared with other

trade partners’ economies in 1999.1

The U.S. trade position fluctuated significantly across the spectrum from commodity to specialty

chemical products (table 7-2). The largest trade deficit was in the pharmaceutical industry, where the trade

deficit increased by $4.1 billion (69 percent) to $10.1 billion in 1999, owing to increased sourcing of

pharmaceuticals, bulk active ingredients, and chemical intermediates abroad where manufacturing costs are

lower. The largest trade surplus was in plastics, rubber, and products thereof, which decreased by $1.0

billion (19 percent) to $4.4 billion. The U.S. plastics industry was adversely affected by the conditions in

Asia, which resulted in diminished demand abroad for U.S. resins and finished products, and lower prices

for plastics resins worldwide.

Among major types of chemicals and related products, U.S. export and import performance varied

widely during 1999 (table 7-2). Exports of medicinal chemicals (hereafter pharmaceuticals) exhibited the

largest increase, rising by $1.7 billion (14 percent) to $13.7 billion. This increase continues the trend

exhibited the previous year, and continues to reflect the introduction of several innovative products, which

command high market prices. In addition, exports of plastics, rubber, and products thereof also exhibited

significant gains, increasing by $1.0 billion (4 percent) to $29.1 billion. 

Pharmaceuticals also exhibited the largest increase in U.S. imports of chemicals and related

products, rising by $5.8 billion (33 percent) to $23.8 billion, followed by plastics, rubber, and products

thereof (especially new pneumatic tires and tubes), which grew by $2.0 billion (9 percent) to $24.7 billion.

Both the strong U.S. economy and increased automobile and truck traffic led to greater demand for new

tires and tubing for vehicles, requiring foreign products to supplement domestic supply. These import flows

continued the trend exhibited in 1998. Trade statistics for all commodity/industry groups in the chemicals

and related products sector are presented in table 7-3 at the end of this chapter.
7-2

Table 7-1

Chemicals and related products: U.S. exports of domestic merchandise, imports for consumption, and

merchandise trade balance, by selected countries and country groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,

Item 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––– Million dollars ––––––––

U.S. exports of domestic merchandise:

Canada ..................................... 17,302 18,783 1,481 8.6

Japan ....................................... 5,328 5,575 247 4.6

Mexico ...................................... 9,882 10,731 849 8.6

Germany .................................... 2,836 2,947 110 3.9

United Kingdom ............................... 3,288 3,566 278 8.5

Ireland ...................................... 918 755 -163 -17.7

China ....................................... 2,017 2,149 132 6.5

France ...................................... 2,308 2,509 201 8.7

Belgium ..................................... 3,898 3,732 -167 -4.3

Netherlands .................................. 4,005 3,717 -288 -7.2

All other ..................................... 26,211 26,776 565 2.2

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 77,994 81,240 3,246 4.2

EU-15 ...................................... 20,123 20,336 213 1.1

OPEC ...................................... 1,714 1,711 -4 -0.2

Latin America ................................. 18,685 18,634 -51 -0.3

CBERA ..................................... 1,818 1,821 3 0.2

Asia ........................................ 15,969 17,704 1,734 10.9

Sub-Saharan Africa ............................ 678 610 -68 -10.0

Central and Eastern Europe ...................... 239 243 4 1.7

U.S. imports for consumption:

Canada ..................................... 12,768 13,708 940 7.4

Japan ....................................... 8,288 8,869 581 7.0

Mexico ...................................... 2,767 3,124 358 12.9

Germany .................................... 7,814 8,267 454 5.8

United Kingdom ............................... 5,433 6,834 1,401 25.8

Ireland ...................................... 4,125 6,326 2,201 53.4

China ....................................... 3,706 4,242 537 14.5

France ...................................... 3,289 3,576 287 8.7

Belgium ..................................... 1,405 1,889 483 34.4

Netherlands .................................. 1,217 1,306 89 7.3

All other ..................................... 19,903 22,030 2,127 10.7

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 70,715 80,172 9,457 13.4

EU-15 ...................................... 27,753 33,537 5,784 20.8

OPEC ...................................... 3,044 3,245 201 6.6

Latin America ................................. 5,625 6,613 988 17.6

CBERA ..................................... 757 892 135 17.9

Asia ........................................ 17,678 18,815 1,136 6.4

Sub-Saharan Africa ............................ 762 849 87 11.5

Central and Eastern Europe ...................... 338 340 2 0.4

U.S. merchandise trade balance:

Canada ..................................... 4,534 5,075 541 11.9

Japan ....................................... -2,960 -3,294 -334 -11.3

Mexico ...................................... 7,115 7,607 492 6.9

Germany .................................... -4,977 -5,321 -343 -6.9

United Kingdom ............................... -2,145 -3,268 -1,123 -52.3

Ireland ...................................... -3,207 -5,571 -2,364 -73.7

China ....................................... -1,688 -2,093 -405 -24.0

France ...................................... -981 -1,067 -86 -8.7

Belgium ..................................... 2,493 1,843 -650 -26.1

Netherlands .................................. 2,788 2,411 -377 -13.5

All other ..................................... 6,308 4,746 -1,562 -24.8

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 7,279 1,068 -6,211 -85.3

EU-15 ...................................... -7,631 -13,201 -5,571 -73.0

OPEC ...................................... -1,330 -1,535 -205 -15.4

Latin America ................................. 13,060 12,021 -1,039 -8.0

CBERA ..................................... 1,061 929 -132 -12.4

Asia ........................................ -1,709 -1,111 598 35.0

Sub-Saharan Africa ............................ -84 -239 -155 -184.8

Central and Eastern Europe ...................... -99 -97 3 2.6

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

Note.--Calculations based on unrounded data. The countries shown are those with the largest total U.S. trade (U.S.

imports plus exports) in these products in 1999.

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

2

 Pablo Figueroa, “Canada Looks For a Lift,” Chemical Week, Jan. 5, 1999, p. 35.

7-3

Table 7-2

Chemicals and related products: U.S. exports of domestic merchandise, imports for consumption, and

merchandise trade balance, by major types, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,

Item 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––– Million dollars ––––––––

U.S. exports of domestic merchandise:

Plastics, rubber, and products thereof ............... 28,073 29,084 1,011 3.6

General organic chemicals ....................... 15,073 15,817 743 4.9

General inorganic chemicals ..................... 5,831 5,730 -102 -1.7

Pharmaceuticals ............................... 11,956 13,681 1,725 14.4

Consumer and industrial products ................. 7,372 7,560 188 2.6

Fertilizers and pesticides ........................ 5,735 5,244 -491 -8.6

Dyes, pigments, paints, and inks .................. 3,953 4,125 172 4.3

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 77,994 81,240 3,246 4.2

U.S. imports for consumption:

Plastics, rubber, and products thereof ............... 22,620 24,653 2,033 9.0

General organic chemicals ....................... 13,200 14,697 1,497 11.3

General inorganic chemicals ..................... 5,475 5,273 -203 -3.7

Pharmaceuticals ............................... 17,952 23,781 5,829 32.5

Consumer and industrial products ................. 4,920 5,132 213 4.3

Fertilizers and pesticides ........................ 3,764 3,669 -95 -2.5

Dyes, pigments, paints, and inks .................. 2,784 2,967 184 6.6

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 70,715 80,172 9,457 13.4

U.S. merchandise trade balance:

Plastics, rubber, and products thereof ............... 5,452 4,431 -1,021 -18.7

General organic chemicals ....................... 1,873 1,120 -754 -40.2

General inorganic chemicals ..................... 356 457 101 28.4

Pharmaceuticals ............................... -5,996 -10,100 -4,105 -68.5

Consumer and industrial products ................. 2,453 2,428 -24 -1.0

Fertilizers and pesticides ........................ 1,971 1,575 -396 -20.1

Dyes, pigments, paints, and inks .................. 1,170 1,158 -12 -1.0

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 7,279 1,068 -6,211 -85.3

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

Note.--Calculations based on unrounded data.

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

U.S. BILATERAL TRADE

The primary U.S. trade partner in chemicals and related products is Canada (table 7-1), largely due

to physical proximity, similar economies, regional integration of the industries and markets, and

establishment of mutually favorable tariff rates under the U.S.-Canada Free Trade Agreement (CFTA) and

North American Free Trade Agreement (NAFTA). In 1999, Canada was both the leading source of sector

products imported by the United States as well as the leading market for U.S. exports in this sector. The

U.S. bilateral trade surplus with Canada, which also exhibited the largest improvement in the bilateral trade

balance with top 10 trade partners, increased by $541 million (12 percent) to $5.1 billion. Exports to

Canada increased by $1.5 billion (9 percent) to $18.8 billion, and imports rose by $940 million (7 percent)

to $13.7 billion. The president of the Canadian Chemical Producers Association noted that the increase in

U.S. chemical exports to Canada, primarily specialty and industrial chemicals, was partly the result of the

surging Canadian economy.2

The second-largest U.S. trade balance improvement was with Mexico, the third-largest U.S. trade

partner, in this sector as the U.S. trade surplus increased by $492 million (7 percent) to $7.6 billion.
 

3

 Kara Sissell, “Industry Renews Pleas for Action,” Chemical Week, Nov. 10, 1999, p. 46.

 

4

 Kara Sissell, “Mexico’s Year of Transition,” Chemical Week, Jan. 3, 2000, p. 35.

7-4

Exports to Mexico increased by $849 million (9 percent) to $10.7 billion, whereas imports grew by

$358 million (13 percent) to $3.1 billion. Growth in U.S.-Mexican sector trade can be attributed to the

development of Mexico’s downstream manufacturing industries that utilize chemicals and related products

as well as the strengthening of Mexican markets for the finished products. U.S. chemical exports also

benefit from the Mexican industry’s limited capacity to process crude oil and gas into basic chemicals. This

relationship was noted by the president of Mexico’s chemical industry association who stated, “...We

cannot continue exporting jobs to other countries where they process our crude petroleum and natural gas

only for us to import it back as petrochemicals.” This official further noted that chemicals accounted for 55

percent of Mexico’s overall trade deficit.3 The Mexican economy grew about 5 percent in 1999, and

although increased Mexican demand for finished chemicals could be met in-part by local production, the

country’s inability to manufacture basic chemicals caused U.S. exports to increase more than imports.4

Total trade (exports plus imports) in chemicals and related products between the European Union

(EU) and the United States grew in 1999, reflecting a small increase in both U.S. exports by $213 million

(1 percent) to $20.3 billion, but a significantly larger increase in U.S. imports by $5.8 billion (21 percent)

to $33.5 billion; the U.S. trade deficit with the EU in these products increased by $5.6 billion (73 percent)

to $13.2 billion. For most chemical industry sub-sectors, the strong U. S. economy absorbed many of the

EU products that might normally have been exported to Asian markets. The two leading U.S. trade partners

in the EU were the United Kingdom and Germany. For both countries, the primary types of product traded

were pharmaceuticals. This industry benefitted from a rise in new medicines, which command higher

market prices, and increased reliance on British and German custom manufacturing facilities for

pharmaceutical products. Overall, U.S. bilateral trade declined among individual EU countries included

among the top10 trade partners for chemicals and related products, but the size of the decline varied greatly

among these countries. For example, the U.S. trade position declined significantly with Ireland (74 percent)

and the United Kingdom (52 percent), whereas it declined to a lesser extent with France (9 percent) and

Germany (7 percent). 

The U.S. trade deficit with Japan, the second-leading sector trade partner, grew by $334 million

(11 percent) to $3.3 billion in 1999. U.S. exports increased by $247 million (5 percent) to $5.6 billion,

whereas imports from Japan increased by $581 million (7 percent) to $8.9 billion. Increased U.S. imports

were largely due to the strong U.S. economy and the sluggish Japanese economy, as Japanese companies,

confronted with limited domestic demand, cut production or sought foreign markets for their products.

Japanese demand for U.S. sector exports was stagnant, except in specialized categories such as

pharmaceuticals.

The U.S. bilateral trade deficit with Ireland increased dramatically for this sector, growing by

$2.4 billion (74 percent) to $5.6 billion. U.S. imports were led by pharmaceuticals and intermediate

chemicals, which amounted to $5.3 billion (84 percent) of the $6.3 billion overall sector imports. The

largest categories for U.S. chemical exports to Ireland in 1999 were also pharmaceuticals and intermediate

chemicals, totaling $362 million, which amounted to 48 percent of all U.S. chemicals exports of $755

million to that country. Since 1995, U.S. imports of pharmaceuticals from Ireland have grown eightfold,

increasing from $634 million in 1995 to $5.2 billion in 1999. The Irish Government, through its Industrial

Development Agency, has sought to attract foreign investment in high-technology, high value-added

speciality industries. An able work force and a 10-percent corporate tax rate (working in conjunction with
 

5

 Clay Boswel and Feliza Mirasol, “Sourcing Pharmaceuticals from Offshore Facilities,” Chemical Marketing 

Reporter, Oct. 25, 1999, p. FR 28.

 

6

 Elizabeth Howlett, “Outsourcing by the Pharmaceutical Industry Provides Opportunities for Fine Chemical

Producers Worldwide,” Industry Trade and Technology Review, USITC publication 3253, Oct. 1999, pp. 1-14.

 

7

 Charles W. Thurston, “Branded Offshore Manufacturing Finds a Home in Ireland and Singapore,” Chemical

Marketing Reporter, June 8, 1998, p. FR 12.

 

8

 European Federation of Pharmaceutical Industries and Associations (EFPIA), The Pharmaceutical Industry in

Figures, 2000 Edition, (Brussels: EFPIA, 2000), p. 23.

7-5

transfer pricing) made Ireland an ideal location for foreign companies desiring to locate in Europe and sell

throughout the world.5

COMMODITY ANALYSIS OF MEDICINAL CHEMICALS

The U.S. trade deficit in medicinal chemicals (hereafter pharmaceuticals) increased by $4.1 billion

(69 percent) to $10.1 billion in 1999. Although U.S. exports continued to increase (by $1.7 billion), the

growing deficit reflected a larger rise in imports (of $5.8 billion), particularly from Western Europe. Global

trade in the pharmaceutical industry has generally increased since January 1, 1995, following the

elimination of duties on most pharmaceutical products under the Uruguay Round Agreements. The United

States, United Kingdom, Germany, Ireland, Japan, and several other large pharmaceutical producing

countries participated in this agreement. Because the global pharmaceutical industry is dominated by

multinational corporations, there is substantial intracompany trade throughout the world.

In addition, there is a continuing trend in the pharmaceutical industry toward outsourcing the

production of bulk active ingredients and chemical intermediates used in the production of dosage-form

drugs.6 Such chemicals are often produced in highly specialized processes that only a limited number of

facilities are equipped to perform. Outsourcing benefits pharmaceutical companies that need a timely and

flexible source of these chemicals, which is often the situation for firms looking to push their products

through clinical trials and, after regulatory approval, to benefit as long as possible from patent protection.

Because of the importance of bringing new pharmaceutical products to market as quickly as possible,

companies are typically willing to use either domestic or foreign production facilities. However, the

location of the outsourcing country is determined by a number of factors, including taxes, work force,

infrastructure, environmental regulation, and wage rates.7

As in the previous year, a number of large multinational firms introduced several new and

innovative medicines into the U.S. market in 1999.8 Such products command high sales prices, which may

also account for the increase in total U.S. trade in the pharmaceutical industry. 

U.S. exports

U.S. exports increased by $1.7 billion (14 percent) to $13.7 billion in 1999. Overall, the

combination of higher drug prices, increasing demand by aging populations, and the trend of shipping

abroad the active ingredients to be processed for U.S. and foreign markets led to the continued rise in U.S.

exports. The top three markets for U.S. pharmaceuticals were Canada, Japan, and Germany, which

together accounted for approximately 33 percent of all such U.S. exports. However, U.S. exports to the

United Kingdom and France rose more in absolute value in 1999 than did those to Canada, Japan, or

Germany, increasing by $343 million (30 percent) to $1.2 billion in France and by $341 million

(41 percent) to $1.2 billion in the United Kingdom. U.S. exports to Germany increased by $256 million (9

percent) to $1.2 billion, in part reflecting increased investment in the German contract manufacturing
 

9

 Sean Milmo, “Europe in Contract Mode,” Chemical Market Reporter, Jan. 18, 1999, p. FR 11.

 

10 Ibid.

 

11 Thurston, “Branded Offshore Manufacturing.”

 

12 Dyan Machan, “Irish Tiger,” Forbes, Mar. 9, 1998, p. 86.

7-6

facilities that support the U.S. pharmaceutical industry and require U.S. shipments of bulk medicinal and

medicinal intermediate products.9

U.S. imports

U.S. imports of pharmaceuticals increased by $5.8 billion (32 percent) to $23.8 billion in 1999.

Imports from the top three suppliers to the United States in 1999, increased by $2.0 billion (61 percent) to

$5.2 billion from Ireland, $1.0 billion (35 percent) to $4.0 billion from the United Kingdom, and

$315 million (9 percent) to $3.8 billion from Germany, and together accounted for 55 percent of all U.S.

imports of these products. An increasing amount of U.S. imports from Germany and the United Kingdom

can be attributed to outsourced production by U.S. firms, in addition to intracompany trade of active

ingredients and dosage-form drugs. Because of the large number of prominent multinational pharmaceutical

companies that are active in these three countries (e.g., Glaxo Wellcome, SmithKline Beecham, and

Hoechst Marion Roussell), and their reputations for well-trained organic chemists, both the United

Kingdom and Germany are attractive sites for contract manufacturing.10 Reportedly, 13 of the 15 leading

multinational drug companies worldwide have established manufacturing facilities in Ireland.11 Because its

production costs are relatively low and because foreign multinational companies can take advantage of

transfer pricing, Ireland’s medicinal chemicals are highly price competitive in the U.S. market,12 which has

led to a rise in imports that continued from 1995 through 1999.

Stephen Wanser

(202) 205-3363

swanser@usitc.gov
Table 7-3

Chemicals and related products sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

See footnote(s) at end of table.

7-7

CH007 Major primary olefins:

Exports .............................. 169 181 12 7.4

Imports .............................. 1,360 1,798 438 32.2

Trade balance ......................... -1,191 -1,617 -426 -35.7

CH008 Other olefins:

Exports .............................. 211 208 -2 -1.1

Imports .............................. 82 91 9 11.1

Trade balance ......................... 129 117 -11 -8.8

CH009 Primary aromatics:

Exports .............................. 56 91 34 60.8

Imports .............................. 704 815 111 15.8

Trade balance ......................... -647 -724 -77 -11.9

CH010 Organic commodity chemicals:

Exports .............................. 1,266 1,474 207 16.4

Imports .............................. 741 778 37 5.0

Trade balance ......................... 526 696 170 32.4

CH011 Organic specialty chemicals:

Exports .............................. 6,616 6,940 324 4.9

Imports .............................. 5,965 6,546 581 9.7

Trade balance ......................... 651 394 -257 -39.5

CH012 Certain organic chemicals:

Exports .............................. 5,184 5,401 217 4.2

Imports .............................. 3,348 3,595 247 7.4

Trade balance ......................... 1,836 1,806 -30 -1.6

CH013 Miscellaneous inorganic chemicals:

Exports .............................. 4,419 4,365 -54 -1.2

Imports .............................. 4,752 4,641 -111 -2.3

Trade balance ......................... -334 -276 58 17.2

CH014 Inorganic acids:

Exports .............................. 186 204 17 9.3

Imports .............................. 282 238 -44 -15.6

Trade balance ......................... -95 -34 61 64.4

CH015 Chlor-alkali chemicals:

Exports .............................. 834 781 -53 -6.3

Imports .............................. 191 126 -66 -34.3

Trade balance ......................... 642 655 13 2.0

CH016 Fertilizers:

Exports .............................. 3,339 3,032 -307 -9.2

Imports .............................. 2,472 2,486 14 0.6

Trade balance ......................... 867 546 -321 -37.0

CH017 Paints, inks, and related items, and certain

 components thereof:

Exports .............................. 3,112 3,327 215 6.9

Imports .............................. 1,755 1,959 204 11.6

Trade balance ......................... 1,357 1,368 11 0.8

CH018 Synthetic organic pigments:

Exports .............................. 349 360 11 3.1

Imports .............................. 402 404 2 0.4

Trade balance ......................... -53 -43 9 17.7
Table 7-3--Continued

Chemicals and related products sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

See footnote(s) at end of table.

7-8

CH019 Synthetic dyes and azoic couplers:

Exports .............................. 453 404 -49 -10.9

Imports .............................. 555 527 -28 -5.1

Trade balance ......................... -102 -123 -21 -20.7

CH020 Synthetic tanning agents:

Exports .............................. 19 13 -5 -28.6

Imports .............................. 6 7 1 18.0

Trade balance ......................... 13 6 -6 -51.3

CH021 Natural tanning and dyeing materials:

Exports .............................. 21 21 (

3

) 0.1

Imports .............................. 66 71 5 7.3

Trade balance ......................... -45 -50 -5 -10.7

CH022 Photographic chemicals and preparations:

Exports .............................. 449 433 -16 -3.5

Imports .............................. 633 564 -69 -10.9

Trade balance ......................... -184 -131 53 29.0

CH023 Pesticide products and formulations:

Exports .............................. 2,396 2,211 -184 -7.7

Imports .............................. 1,292 1,183 -109 -8.5

Trade balance ......................... 1,104 1,029 -75 -6.8

CH024 Adhesives and glues:

Exports .............................. 477 502 25 5.3

Imports .............................. 159 181 22 13.7

Trade balance ......................... 318 321 4 1.1

CH025 Medicinal chemicals:

Exports .............................. 11,956 13,681 1,725 14.4

Imports .............................. 17,952 23,781 5,829 32.5

Trade balance ......................... -5,996 -10,100 -4,105 -68.5

CH026 Essential oils and other flavoring materials:

Exports .............................. 916 948 32 3.5

Imports .............................. 836 754 -82 -9.8

Trade balance ......................... 80 194 113 141.1

CH027 Perfumes, cosmetics, and toiletries:

Exports .............................. 2,572 2,578 6 0.2

Imports .............................. 1,629 1,864 235 14.4

Trade balance ......................... 943 714 -229 -24.3

CH028 Soaps, detergents, and surface-active agents:

Exports .............................. 1,961 2,138 177 9.0

Imports .............................. 875 948 73 8.3

Trade balance ......................... 1,086 1,190 104 9.6

CH029 Miscellaneous chemicals and specialties:

Exports .............................. 2,619 2,536 -83 -3.2

Imports .............................. 1,667 1,790 122 7.3

Trade balance ......................... 951 746 -205 -21.6

CH030 Explosives, propellant powders, and related

 items:

Exports .............................. 292 264 -28 -9.7

Imports .............................. 248 267 18 7.4

Trade balance ......................... 44 -3 -47 (

4

)
Table 7-3--Continued

Chemicals and related products sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

See footnote(s) at end of table.

7-9

CH031 Polyethylene resins in primary forms:

Exports .............................. 2,134 2,249 115 5.4

Imports .............................. 1,150 1,329 179 15.5

Trade balance ......................... 984 920 -64 -6.5

CH032 Polypropylene resins in primary forms:

Exports .............................. 760 863 102 13.5

Imports .............................. 220 232 12 5.4

Trade balance ......................... 540 630 90 16.8

CH033 Polyvinyl chloride resins in primary forms:

Exports .............................. 767 626 -141 -18.3

Imports .............................. 248 235 -13 -5.4

Trade balance ......................... 518 391 -127 -24.6

CH034 Styrene polymers in primary forms:

Exports .............................. 779 753 -26 -3.4

Imports .............................. 418 427 8 2.0

Trade balance ......................... 361 326 -35 -9.6

CH035 Saturated polyester resins:

Exports .............................. 626 566 -59 -9.4

Imports .............................. 451 448 -2 -0.5

Trade balance ......................... 175 118 -57 -32.5

CH036 Other plastics in primary forms:

Exports .............................. 6,124 6,323 199 3.3

Imports .............................. 2,295 2,455 161 7.0

Trade balance ......................... 3,829 3,868 39 1.0

CH037 Styrene-butadiene rubber in primary forms:

Exports .............................. 322 309 -13 -3.9

Imports .............................. 175 173 -3 -1.6

Trade balance ......................... 146 137 -10 -6.6

CH038 Other synthetic rubber:

Exports .............................. 1,064 1,079 16 1.5

Imports .............................. 669 697 28 4.2

Trade balance ......................... 395 382 -12 -3.1

CH039 Pneumatic tires and tubes (new):

Exports .............................. 2,532 2,366 -166 -6.6

Imports .............................. 4,011 4,559 547 13.6

Trade balance ......................... -1,479 -2,193 -713 -48.2

CH040 Other tires:

Exports .............................. 93 111 18 19.3

Imports .............................. 143 129 -14 -9.5

Trade balance ......................... -50 -18 32 63.7

CH041 Miscellaneous plastic products:

Exports .............................. 10,882 11,816 933 8.6

Imports .............................. 9,709 10,988 1,279 13.2

Trade balance ......................... 1,174 828 -346 -29.5

CH042 Miscellaneous rubber products:

Exports .............................. 1,954 1,982 28 1.4

Imports .............................. 2,154 2,277 123 5.7

Trade balance ......................... -200 -295 -95 -47.8
Table 7-3--Continued

Chemicals and related products sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

7-10

CH043 Gelatin:

Exports .............................. 51 63 13 25.0

Imports .............................. 122 107 -15 -12.2

Trade balance ......................... -71 -44 28 38.7

CH044 Natural rubber:

Exports .............................. 36 41 5 13.1

Imports .............................. 977 704 -272 -27.9

Trade balance ......................... -941 -664 277 29.5

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

2

 This coding system is used by the U.S. International Trade Commission to identify major groupings of HTS

import and export items for trade monitoring purposes.

3

 Less than $500,000.

4

 Not meaningful for purposes of comparison.

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
1

 Joseph M. Duckert, “Natural Gas: The New Leading Actor,” in Duckert, The Evolution of the North

American Energy Market, Center for Strategic and International Studies, Policy Papers on the Americas, vol. X,

study 6, Oct. 19, 1999, pp. 6-19.

8-1

,,,,,,,,,,,,,,,,

CHAPTER 8

Energy-Related Products

Cynthia B. Foreso, Coordinator

(202) 205-3348

foreso@usitc.gov

The overall U.S. trade deficit in energy-related products increased by $13.6 billion (31 percent) to

$57.5 billion in 1999, primarily because of an increase in the world price of crude petroleum coupled with

a slight increase in imports of petroleum products (table 8-1). The price of crude petroleum increased by

about $6 per barrel (an average of nearly 60 percent) during 1999 with the average for the year at $17.23

per barrel. In December 1999, prices reached a high for the year of $22.70 per barrel. Such price levels had

not been reached since the mid-1980s, and resulted from a combination of tight global supply of crude

petroleum and increased demand. Historically, the United States has maintained a trade deficit in the

energy-related products sector primarily because of an increased reliance on imported crude petroleum. 

U.S. imports of energy-related products increased by $13.2 billion (24 percent) to $69.5 billion in

1999. Among the principal suppliers and the countries showing the largest changes in sector trade with the

United States in 1999 were Canada, Venezuela, Saudi Arabia, Mexico, Nigeria, Iraq, and Colombia. U.S.

exports of energy-related products decreased by $389 million (3 percent) to $12.0 billion in 1999. The

primary markets for U.S. exports of energy-related products were Canada and Mexico, which experienced

the largest bilateral trade changes in 1999.

Overall shifts in trade volume for the products in this sector in 1999 included decreased imports of

crude petroleum coupled with increased imports of both distillate fuel oils and natural gas due to relatively

cold winter conditions in the Northeast. This trend has been reinforced as power plants, particularly in the

Northeastern United States, move toward cleaner-burning natural gas rather than fuel oil to generate

electricity. Many of these power plants are fueled by gas originating in Canada.1 Trade statistics for all

commodity/industry groups in the energy-related products sector are presented in table 8-2 at the end of

this chapter.

U.S. BILATERAL TRADE

Canada remained the leading U.S. trade partner for energy-related products in 1999. The United

States and Canadian energy sectors are integrated by a sophisticated and intricate system of pipelines that

carry natural gas, crude petroleum, and refined petroleum products between the two countries. Also, the

United States and Canada share interconnected grids used to transmit electricity across the border. The

U.S. trade deficit with Canada increased by $2.8 billion (22 percent) to $15.4 billion in 1999, primarily 
8-2

Table 8-1

Energy-related products: U.S. exports of domestic merchandise, imports for consumption, and

merchandise trade balance, by selected countries and country groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,

Item 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––– Million dollars ––––––––

U.S. exports of domestic merchandise:

Canada ..................................... 2,565 2,370 -195 -7.6

Mexico ...................................... 1,845 2,311 465 25.2

Venezuela ................................... 131 79 -51 -39.1

Saudi Arabia ................................. 30 33 2 8.1

Nigeria ...................................... 36 26 -9 -26.3

Colombia .................................... 48 38 -10 -20.5

Iraq ........................................ 0 0 0 0.0

United Kingdom ............................... 355 257 -98 -27.6

Angola ...................................... 1 1 (

2

) 4.2

Norway ...................................... 20 41 21 107.2

All other ..................................... 7,315 6,801 -514 -7.0

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 12,346 11,957 -389 -3.2

EU-15 ...................................... 2,286 1,912 -374 -16.4

OPEC ...................................... 287 245 -42 -14.6

Latin America ................................. 3,690 3,746 55 1.5

CBERA ..................................... 806 704 -102 -12.7

Asia ........................................ 2,791 3,096 305 10.9

Sub-Saharan Africa ............................ 203 150 -53 -26.0

Central and Eastern Europe ...................... 99 42 -57 -57.6

U.S. imports for consumption:

Canada ..................................... 15,207 17,766 2,558 16.8

Mexico ...................................... 4,903 6,280 1,377 28.1

Venezuela ................................... 7,167 8,480 1,313 18.3

Saudi Arabia ................................. 5,919 6,679 759 12.8

Nigeria ...................................... 4,213 3,720 -492 -11.7

Colombia .................................... 1,745 2,807 1,062 60.9

Iraq ........................................ 727 2,721 1,994 274.3

United Kingdom ............................... 1,516 2,278 762 50.3

Angola ...................................... 2,166 2,320 154 7.1

Norway ...................................... 1,173 2,085 912 77.7

All other ..................................... 11,518 14,338 2,820 24.5

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 56,254 69,473 13,219 23.5

EU-15 ...................................... 3,456 4,444 989 28.6

OPEC ...................................... 21,064 24,856 3,792 18.0

Latin America ................................. 16,230 20,816 4,585 28.3

CBERA ..................................... 985 1,479 493 50.0

Asia ........................................ 1,485 2,055 570 38.4

Sub-Saharan Africa ............................ 7,964 8,001 37 0.5

Central and Eastern Europe ...................... 20 44 24 124.8

U.S. merchandise trade balance:

Canada ..................................... -12,642 -15,396 -2,753 -21.8

Mexico ...................................... -3,057 -3,970 -912 -29.8

Venezuela ................................... -7,036 -8,401 -1,364 -19.4

Saudi Arabia ................................. -5,889 -6,646 -757 -12.9

Nigeria ...................................... -4,177 -3,694 483 11.6

Colombia .................................... -1,697 -2,769 -1,072 -63.2

Iraq ........................................ -727 -2,721 -1,994 -274.3

United Kingdom ............................... -1,161 -2,021 -860 -74.1

Angola ...................................... -2,165 -2,318 -154 -7.1

Norway ...................................... -1,154 -2,044 -891 -77.2

All other ..................................... -4,203 -7,538 -3,334 -79.3

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... -43,908 -57,516 -13,609 -31.0

EU-15 ...................................... -1,170 -2,532 -1,362 -116.4

OPEC ...................................... -20,777 -24,611 -3,834 -18.5

Latin America ................................. -12,540 -17,070 -4,530 -36.1

CBERA ..................................... -180 -775 -595 -330.8

Asia ........................................ 1,306 1,041 -265 -20.3

Sub-Saharan Africa ............................ -7,761 -7,850 -90 -1.2

Central and Eastern Europe ...................... 79 -2 -81 (

3

)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

 

2

 Less than $500,000.

 

3

 Not meaningful for purposes of comparison.

Note.--Calculations based on unrounded data. The countries shown are those with the largest total U.S. trade (U.S.

imports plus exports) in these products in 1999.

Source: Compiled from official statistics of the U.S. Department of Commerce.
8-3

as a result of the increases in the per-barrel price of crude petroleum and the wellhead price of natural 

gas. 

The increased U.S. trade deficits on a regional basis also reflect these rising energy prices. The

trade deficit with OPEC (accounting for more than 37 percent of all U.S. imports of crude petroleum)

increased by $3.8 billion (19 percent) to $24.6 billion in 1999. Venezuela, historically a major supplier of

petroleum products to U.S. markets, accounted for $8.4 billion (34 percent) of this deficit, whereas Saudi

Arabia’s share increased by $757 million (13 percent) to $6.6 billion. The U.S. energy-related products

trade deficit with Latin America increased by $4.5 billion (36 percent) to $17.1 billion in 1999; Mexico’s

share of the deficit increased by $912 million (30 percent) to $4.0 billion. The U.S. trade deficit with the

European Union (EU) in energy-related products increased by $1.4 billion in 1999 (116 percent) to

$2.5 billion.

COMMODITY ANALYSIS 

Crude Petroleum

and Petroleum Products

The U.S. trade deficit in crude petroleum increased by $6.1 billion (25 percent) to $30.9 billion in

1999. Strong world demand, tight global supplies, and the recovery of the Asian economies have

contributed to the rising world price of crude petroleum which resulted in the value of imports increasing

by $6.2 billion (24 percent) to $31.6 billion in 1999. U.S. exports of crude petroleum have been largely

prohibited since 1973, except as approved by the Secretary of Energy as part of a commercial exchange

agreement between U.S. and Canadian refiners, and following a Presidential determination in May 1996

that it was in the national interest to allow exports of Alaskan North Slope crude. U.S. export volume of

crude petroleum increased by only 3 million barrels (7 percent) to 42.4 million barrels in 1999 although

rising prices caused the value of crude petroleum exports to increase by $102 million (15 percent) to $772

million.

U.S. imports

Although imports of crude petroleum decreased slightly by 119 million barrels (5.6 percent) to 2.1

billion barrels in 1999, these imports still accounted for over 60 percent of domestic consumption. A

drawdown of crude petroleum stocks at refineries (declining nearly 7 percent in average levels during

1999), together with a small decline in domestic consumption (less than 2 percent) for petroleum products,

such as gasoline and certain heating fuels, reduced the level of 1999 imports in the face of rising prices and

despite historic low U.S. production of 2.1 billion barrels in 1999. U.S. production declines began in 1985

when declining world crude petroleum prices resulted in reduced profitability and increased import

competition for higher cost U.S. stripper wells which have continued to shut down.

Consistent with the higher price of crude petroleum faced by refineries, the value of U.S. imports

of petroleum products also increased by $4.5 billion (26 percent) to $22.1 billion in 1999. In addition, U.S.

imports of distillate fuel oils (used as heating fuels) increased slightly as a result of a relatively cold winter

in the Northeast. These factors combined to increase the U.S. trade deficit in petroleum products by $4.1

billion (36 percent) to $15.5 billion in 1999.
8-4

Natural Gas and Components

The U.S. trade deficit in natural gas and components increased by $1.7 billion (19 percent) to

$10.3 billion in 1999, representing an increase of 388 billion cubic feet (13 percent). The average wellhead

price of natural gas increased by 7 percent during 1999, reaching $2.07 per thousand cubic feet in 1999.

The United States is a major world producer of natural gas. The value of U.S. exports of natural gas and

components increased by $178 million (31 percent) to $759 million, principally accounted for by increased

demand in Mexico.

U.S. imports

U.S. imports of natural gas and components increased by $1.8 billion (20 percent) to $11.0 billion

in 1999. Most of the 396-billion cubic feet (13-percent) increase in natural gas imports was due to a

relatively harsh winter in the Northeast, resulting in increased imports from Canada which accounted for

95 percent of the overall quantity of imports.

Coal, Coke, and Related Chemical Products

The U.S. trade surplus in coal, coke, and related chemical products decreased by $1.1 billion

(55 percent) to $930 million in 1999. The United States is a major world producer and consumer of these

products, as well as a net exporter based on abundant reserves of high-quality coals. Most of the

$964 million (27 percent) decline in exports to $2.7 billion was due to decreased demand in Japan for U.S.

coal and coke, as Japan increased its imports from China. The $171 million (11 percent) increase in U.S.

imports of this product group is largely attributable to higher imports of coke, coupled with increased

prices for coal that generally follow the price trend of crude petroleum. Canada, Colombia, and Saudi

Arabia were the leading import sources.

Cynthia B. Foreso

(202) 205-3348

foreso@usitc.gov
Table 8-2

Energy-related products sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

8-5

CH001 Electrical energy:

Exports .............................. 185 206 22 11.7

Imports .............................. 1,039 1,334 295 28.4

Trade balance ......................... -854 -1,127 -273 -32.0

CH002 Nuclear materials:

Exports .............................. 1,041 950 -92 -8.8

Imports .............................. 1,382 1,636 254 18.4

Trade balance ......................... -340 -686 -346 -101.7

CH003 Coal, coke, and related chemical products:

Exports .............................. 3,635 2,671 -964 -26.5

Imports .............................. 1,570 1,741 171 10.9

Trade balance ......................... 2,065 930 -1,135 -55.0

CH004 Crude petroleum:

Exports .............................. 670 772 102 15.2

Imports .............................. 25,467 31,642 6,175 24.2

Trade balance ......................... -24,797 -30,870 -6,074 -24.5

CH005 Petroleum products:

Exports .............................. 6,233 6,599 366 5.9

Imports .............................. 17,584 22,079 4,495 25.6

Trade balance ......................... -11,351 -15,480 -4,129 -36.4

CH006 Natural gas and components:

Exports .............................. 581 759 178 30.6

Imports .............................. 9,212 11,042 1,830 19.9

Trade balance ......................... -8,630 -10,282 -1,652 -19.1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

2

 This coding system is used by the U.S. International Trade Commission to identify major groupings of HTS

import and export items for trade monitoring purposes.

Note.--Calculations based on unrounded data.

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

 

1

 The apparel articles covered here include those of textile and nontextile (e.g., leather) materials.

 

2

 U.S. Department of Commerce, Bureau of Economic Analysis, facsimile to USITC staff, Apr. 19, 2000.

 

3

 Board of Governors of the Federal Reserve System, “Industrial Production and Capacity Utilization: Recent

Developments and the 1999 Revision,” Federal Reserve Bulletin, Feb. 2000, p. 201.

 

4

 See the textile and apparel section of ch. 4 for information on these developments.

 

5

 American Textile Manufacturers Institute (ATMI), ATMI HiLights, Mar. 2000, p. vi.

9-1

,,,,,,,,,,,,,,,,

CHAPTER 9

Textiles, Apparel, and Footwear

Laura Rodriguez-Archila, Coordinator

(202) 205-3499

lrodriguez@usitc.gov

The U.S. trade deficit in textiles and apparel in 1999 widened by $3.9 billion (8 percent) over the

1998 level to $52.5 billion (table 9-1), after increasing by a much greater amount of $6.5 billion in 1998.1

The smaller increase in 1999 reflected a slowdown in the growth of U.S. imports, which rose by

$3.5 billion (5 percent) to $71.3 billion, down from the $6.5 billion gain in 1998, whereas U.S. exports fell

for the second-straight year by $415 million (2 percent) to $18.7 billion.

The growth in U.S. imports of textiles and apparel in 1999 largely reflected strong consumer

demand for apparel, which accounted for 79 percent of the value of U.S. sector imports in 1999. U.S.

consumer spending on apparel and footwear that year rose by 8.8 percent over the 1998 level.2 The import

growth contributed significantly to the decline in U.S. production of apparel, which fell for the fifth-straight

year, by 6.2 percent.3 U.S. imports of textile and apparel likely will continue to grow as a result of the

ongoing trade liberalization under the North American Free Trade Agreement (NAFTA) and the Uruguay

Round Agreement on Textiles and Clothing, and the upcoming expansion of trade benefits for eligible

countries in sub-Saharan Africa and beneficiary countries under the Caribbean Basin Economic Recovery

Act (CBERA) following enactment of the Trade and Development Act of 2000 in May 2000.4

The decline in U.S. exports of textile and apparel in 1999 mainly resulted from smaller shipments

to the European Union (EU), CBERA countries, and Asia. The export decline to the EU of $407 million

(18 percent) was attributed to a strong U.S. dollar and competition from Asia.5 The export decline to the

CBERA countries of $216 million (5 percent) in 1999 followed an increase of about the same magnitude in

1998. Slightly more than one-half of U.S. exports of these products consisted of shipments of cut garment

parts to Mexico and the CBERA countries for assembly and subsequent return to the United States as

finished apparel. The decline in exports to Asia of $130 million (7 percent), to $1.8 billion, partly reflected

the lingering effects of the Asian financial crisis of 1997-98.

The U.S. trade deficit in footwear widened by $221 million (2 percent) to $13.4 billion in 1999, as

imports rose by $194 million (1 percent), to $14.1 billion, and exports fell by $27 million (4 percent), 
9-2

Table 9-1

Textiles and apparel: U.S. exports of domestic merchandise, imports for consumption, and merchandise

trade balance, by selected countries and country groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,

Item 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––– Million dollars ––––––––

U.S. exports of domestic merchandise:

Mexico ...................................... 4,727 5,550 823 17.4

China ....................................... 155 166 11 7.2

Canada ..................................... 3,642 3,545 -97 -2.7

Hong Kong ................................... 378 295 -82 -21.8

Dominican Rep ................................ 1,328 1,259 -69 -5.2

Honduras .................................... 1,213 1,233 20 1.7

Korea ....................................... 166 180 14 8.6

Taiwan ...................................... 124 108 -15 -12.3

India ........................................ 28 36 9 31.6

Italy ........................................ 168 163 -6 -3.4

All other ..................................... 7,210 6,187 -1,023 -14.2

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 19,137 18,723 -415 -2.2

EU-15 ...................................... 2,243 1,836 -407 -18.1

OPEC ...................................... 413 312 -101 -24.4

Latin America ................................. 10,206 10,607 400 3.9

CBERA ..................................... 4,605 4,389 -216 -4.7

Asia ........................................ 1,975 1,845 -130 -6.6

Sub-Saharan Africa ............................ 178 146 -32 -17.7

Central and Eastern Europe ...................... 58 62 4 7.4

U.S. imports for consumption:

Mexico ...................................... 8,225 9,413 1,188 14.4

China ....................................... 8,784 9,234 450 5.1

Canada ..................................... 3,360 3,640 280 8.3

Hong Kong ................................... 4,688 4,559 -129 -2.7

Dominican Rep ................................ 2,398 2,388 -10 -0.4

Honduras .................................... 1,911 2,205 294 15.4

Korea ....................................... 2,966 3,189 222 7.5

Taiwan ...................................... 3,018 2,916 -102 -3.4

India ........................................ 2,536 2,666 130 5.1

Italy ........................................ 2,333 2,314 -19 -0.8

All other ..................................... 27,589 28,745 1,155 4.2

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 67,809 71,269 3,461 5.1

EU-15 ...................................... 5,078 5,019 -59 -1.2

OPEC ...................................... 2,523 2,526 3 0.1

Latin America ................................. 17,624 19,439 1,815 10.3

CBERA ..................................... 8,462 8,999 537 6.3

Asia ........................................ 36,969 38,102 1,134 3.1

Sub-Saharan Africa ............................ 568 622 54 9.4

Central and Eastern Europe ...................... 532 438 -94 -17.6

U.S. merchandise trade balance:

Mexico ...................................... -3,498 -3,863 -366 -10.5

China ....................................... -8,629 -9,068 -438 -5.1

Canada ..................................... 281 -96 -377 (

2

)

Hong Kong ................................... -4,310 -4,264 46 1.1

Dominican Rep ................................ -1,070 -1,129 -59 -5.5

Honduras .................................... -698 -971 -274 -39.2

Korea ....................................... -2,801 -3,009 -208 -7.4

Taiwan ...................................... -2,894 -2,807 87 3.0

India ........................................ -2,508 -2,630 -121 -4.8

Italy ........................................ -2,165 -2,152 13 0.6

All other ..................................... -20,379 -22,558 -2,179 -10.7

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... -48,671 -52,547 -3,875 -8.0

EU-15 ...................................... -2,835 -3,183 -348 -12.3

OPEC ...................................... -2,110 -2,214 -104 -4.9

Latin America ................................. -7,418 -8,832 -1,414 -19.1

CBERA ..................................... -3,857 -4,610 -753 -19.5

Asia ........................................ -34,993 -36,257 -1,263 -3.6

Sub-Saharan Africa ............................ -391 -476 -85 -21.8

Central and Eastern Europe ...................... -474 -376 98 20.6

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

 

2

 Not meaningful for purposes of comparison.

Note.--Calculations based on unrounded data. The countries shown are those with the largest total U.S. trade (U.S.

imports plus exports) in these products in 1999.

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

6

 No further analysis is provided because the change in U.S. footwear trade in 1999 was relatively small

(table 9-2).

 

7

 The average prices of U.S. imports of apparel from Asia fell again in 1999; however, trade sources report that

Asian apparel prices have been increasing in recent months. See “Apparel Imports Decelerated in 1999; Prices Fell

Sharply Before Turning Up,” Pacific Trade Winds (Santa Barbara, CA), Mar. 2000, p. 1.

 

8

 In 1994, the CFTA was suspended and its duty phaseout schedules were incorporated into NAFTA.

 

9

 See the textile and apparel section of ch. 4 regarding recent developments in U.S. imports of men’s and boys’

wool suits from Canada.

9-3

to $693 million (table 9-2).6 U.S. output and shipments of footwear both fell in 1999, by 31 million pairs

(19 percent) to 134 million pairs and by $74 million (2 percent) to $3.3 billion, respectively. As a result,

the share of the U.S. footwear market supplied by imports in 1999 rose slightly to 94 percent by quantity

and 83 percent by value. Footwear imports from China rose by $422 million (5 percent) to $8.4 billion.

China’s dominance in footwear, for which it accounted for 76 percent of the U.S. import quantity in 1999,

is attributed to its price competitiveness due to low wages and established production infrastructure. Trade

statistics for all industry/commodity groups in the textile, apparel, and footwear sector are presented in

table 9-3 at the end of this chapter.

U.S. BILATERAL TRADE

AND COMMODITY ANALYSIS OF TEXTILES AND APPAREL

About one-half of the increase in U.S. imports of textiles and apparel in 1999 was accounted for by

countries benefitting from preferential market access, namely NAFTA partners Mexico and Canada, and

the CBERA countries. The NAFTA and CBERA countries together accounted for 72 percent of U.S.

exports and 31 percent of U.S. imports in 1999. The U.S. trade balance with these countries deteriorated

significantly in 1999, as U.S. imports from Mexico rose faster than U.S. exports there in absolute terms,

whereas U.S. exports to the CBERA countries and Canada fell for the first time in at least 10 years. The

trade deficit with Mexico, which displaced China as the largest source of textiles and apparel imports in

1999, widened by $366 million (11 percent) to $3.9 billion, as imports grew by $1.2 billion (14 percent) to

$9.4 billion and exports rose by $823 million (17 percent) to $5.6 billion. The trade deficit with the

CBERA countries rose by $753 million (20 percent) to $4.6 billion, as imports grew by $537 million

(6 percent) to $9.0 billion and exports fell by $216 million (5 percent) to $4.4 billion. Nevertheless, the

percentage increase in imports of these products from Mexico and the CBERA countries in 1999

represented a slowdown from their respective growth rates of 1998, when their shipments rose by 23 and 9

percent, respectively. Trade sources attributed this slowdown in import growth to intense price competition

from Asia.7 The U.S. trade balance with Canada in 1999 was marked by a deficit for the first time since at

least 1989, when the U.S.-Canada Free Trade Agreement (CFTA) entered into force.8 U.S. exports to

Canada fell by $97 million (3 percent), to $3.5 billion, while U.S. imports from Canada rose by $280

million (8 percent), to $3.6 billion. U.S. imports of apparel from Canada grew by $180 million (12 percent)

to $1.7 billion and over the past 4 years have almost doubled.9

The CBERA countries and Mexico compete mainly with one another for assembly work from U.S.

apparel firms. By assembling apparel in these countries, whose proximity to suppliers and markets in the

United States enables U.S. firms to maintain greater management control over production, U.S. firms save

on labor costs and obtain quicker turnaround than importing from Asia. In 1999, apparel accounted for 83

percent ($7.8 billion) of U.S. textiles and apparel imports from Mexico and almost all ($8.9 billion) of

those from the CBERA countries, led by the Dominican Republic, Honduras, and El Salvador. Most of

these imported garments were assembled from U.S.-cut fabric components and entered under the

production-sharing provisions of chapter 98 of the Harmonized Tariff Schedule of the United
9-4

Table 9-2

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

balance, by selected countries and country groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,

Item 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––– Million dollars ––––––––

U.S. exports of domestic merchandise:

China ....................................... 29 41 11 38.3

Italy ........................................ 5 5 1 19.2

Brazil ....................................... 4 2 -2 -53.0

Indonesia .................................... 12 14 2 17.0

Mexico ...................................... 96 94 -2 -2.1

Thailand ..................................... 4 5 2 47.2

Spain ....................................... 5 4 -1 -27.0

Dominican Rep ................................ 78 57 -20 -26.1

United Kingdom ............................... 15 18 3 20.9

Vietnam ..................................... 17 30 12 71.7

All other ..................................... 457 424 -33 -7.1

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 720 693 -27 -3.7

EU-15 ...................................... 82 82 (

2

) (

3

)

OPEC ...................................... 33 30 -3 -9.6

Latin America ................................. 255 216 -39 -15.4

CBERA ..................................... 124 98 -26 -21.2

Asian Pacific Rim .............................. 256 267 11 4.3

ASEAN ...................................... 41 59 17 41.7

Central and Eastern Europe ...................... 4 2 -1 -38.1

U.S. imports for consumption:

China ....................................... 8,016 8,438 422 5.3

Italy ........................................ 1,170 1,185 15 1.3

Brazil ....................................... 1,025 960 -65 -6.3

Indonesia .................................... 746 751 5 0.7

Mexico ...................................... 349 354 5 1.4

Thailand ..................................... 343 325 -18 -5.3

Spain ....................................... 391 327 -64 -16.4

Dominican Rep ................................ 284 237 -47 -16.6

United Kingdom ............................... 234 239 5 2.3

Vietnam ..................................... 115 146 31 26.8

All other ..................................... 1,206 1,111 -95 -7.9

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 13,879 14,074 194 1.4

EU-15 ...................................... 2,047 2,038 -9 -0.4

OPEC ...................................... 747 752 5 0.6

Latin America ................................. 1,726 1,593 -133 -7.7

CBERA ..................................... 325 259 -66 -20.3

Asian Pacific Rim .............................. 9,712 10,031 319 3.3

ASEAN ...................................... 1,291 1,246 -45 -3.5

Central and Eastern Europe ...................... 122 148 26 21.4

U.S. merchandise trade balance:

China ....................................... -7,986 -8,397 -411 -5.1

Italy ........................................ -1,166 -1,180 -14 -1.2

Brazil ....................................... -1,021 -958 63 6.1

Indonesia .................................... -735 -738 -3 -0.4

Mexico ...................................... -254 -260 -7 -2.7

Thailand ..................................... -340 -320 20 5.8

Spain ....................................... -385 -323 63 16.2

Dominican Rep ................................ -207 -180 27 13.0

United Kingdom ............................... -219 -221 -2 -1.0

Vietnam ..................................... -98 -116 -18 -18.8

All other ..................................... -749 -687 62 8.3

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... -13,159 -13,380 -221 -1.7

EU-15 ...................................... -1,965 -1,956 9 0.4

OPEC ...................................... -714 -722 -8 -1.1

Latin America ................................. -1,471 -1,377 94 6.4

CBERA ..................................... -201 -161 40 19.7

Asian Pacific Rim .............................. -9,456 -9,764 -308 -3.3

ASEAN ...................................... -1,250 -1,187 62 5.0

Central and Eastern Europe ...................... -118 -146 -27 -23.2

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

 

2

 Less than $500,000.

 

3

 Less than 0.05 percent.

Note.--Calculations based on unrounded data. The countries shown are those with the largest total U.S. trade (U.S.

imports plus exports) in these products in 1999.

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

10 The production-sharing provisions provide a duty exemption for U.S. apparel parts returned to the United

States in the form of finished apparel. In general, the duty is assessed only on the value-added abroad. The fabric

for making the apparel parts can be of either U.S. or foreign origin as long as the fabric is cut to shape in the

United States and exported ready for assembly. Apparel from Mexico assembled from U.S.-made and -cut fabric

has been eligible to enter free of duty since the implementation of NAFTA in 1994.

 

11 The vast majority of textiles and apparel maquiladoras are apparel producers. The number of textile and

apparel maquiladoras grew from 912 in 1998 to 1,035 in 1999 and the number of workers in these plants rose from

224,023 to 263,475 during the same period. See “Maquila Scoreboard,” Twin Plant News, June 1999, p. 63, and

May 2000, p. 55.

 

12 For further information on these developments, see USITC, Production Sharing: Use of U.S. Components

and Materials in Foreign Assembly Operations, 1995-1998, investigation No. 332-237, USITC publication 3265,

Dec. 1999, pp. 3-23 to 3-27.

 

13 The restructuring of the Chinese textile industry involved plant closings, managerial reorganizations, and the

elimination of 1.2 million jobs and 9.6 million antiquated cotton spindles. See, for example, U.S. Department of

State (State Dept.,) telegram, “SOE Reform: China Textile Industry Leads the Way,” message reference

No. 002711, prepared by U.S. Embassy, Beijing, Mar. 24, 2000.

9-5

States.10 With the complete elimination of almost all U.S. tariffs on qualifying apparel articles from Mexico

under NAFTA as of January 1, 1999, Mexico has a significant competitive advantage over the CBERA

countries in the production of apparel for export to the United States. However, as discussed in chapter 4 of

this report, newly signed legislation will provide the CBERA countries with similar NAFTA-equivalent

tariff treatment for apparel articles.

NAFTA trade preferences have encouraged not only U.S. apparel producers to begin or expand

operations in Mexico, but also U.S. producers of apparel fabrics to do likewise, in order to be closer to

their apparel manufacturing customers.11 Some of these facilities (not starting operation until late 1999 or

still under construction) will be vertically integrated, producing thread and yarn, weaving and finishing

fabric, and assembling apparel, whereas other facilities are being developed in coordination with partner

firms that will specialize in fabric processing, apparel assembly, or both, thus forming an integrated

manufacturing network.12

The U.S. trade deficit with Asia for textiles and apparel widened by $1.3 billion in 1999, to

$36.3 billion, as U.S. imports rose by $1.1 billion (3 percent), to $38.1 billion, and U.S. exports fell by

$130 million (7 percent), to $1.8 billion. Nevertheless, the share of U.S. imports of these goods accounted

for by Asia, the largest regional source of such imports, continued to decline in 1999, by about 1

percentage point, to 53 percent.

China continued to be the trade partner with which the United States has its largest bilateral trade

deficit in textiles and apparel, which reached $9.1 billion in 1999, or more than double the second-largest

deficit of $4.3 billion with Hong Kong. The deficit with China rose by $438 million (5 percent) in 1999, as

U.S. imports rebounded by $450 million (5 percent) to $9.2 billion and U.S. exports rose by $11 million (7

percent) to $166 million. The rise in imports from China reportedly is attributable to the massive

restructuring of the Chinese textile industry and the resulting cost reductions. In addition, the Chinese

textile industry benefitted from lower cotton costs following deregulation of cotton prices by the Chinese

Government.13

U.S. imports of textiles and apparel from Korea, which along with Hong Kong and Taiwan were

the “Big Three” suppliers of these goods during the 1980s, increased for the third-straight year in 1999, by

$222 million (8 percent), to $3.2 billion. Korea’s shipments had grown by a much larger $386 million (15

percent) in 1998. The recovery in imports from Korea reportedly reflected the sharp depreciation of its

currency during the Asian financial crisis of 1997 and 1998, which effectively reduced dollar prices of its
 

14 Market Profile - Republic of Korea, Nov. 24, 1999, found at Internet address http://www.tdctrade.com/

mktprof/asia/mpsko.htm, retrieved Apr. 26, 2000; “South Korea: Export Recovery,” Textile Asia, Nov. 1999, p. 89;

and “Going for Value Added - South Korea,” Textile Asia, Jan. 2000, p. 57.

 

15 U.S. State Dept., telegram No. 000093, “A Resilient Taiwan’s ‘Economic Miracle’ Still in Place After a

Tough Year,” prepared by AIT, Taipei, Jan. 10, 2000; and “Taiwan--Sharp Rebound,” Textile Asia, Jan. 2000,

p. 55.

 

16 “Hong Kong’s Clothing Industry,” Profiles of Hong Kong Major Manufacturing Industries, July 26, 1999,

found at Internet address http://www.tdctrade.com/main/industries/ipclot.htm, retrieved Apr. 26, 2000, p. 4.

 

17 “Focus on Thailand: A Stable Society Draws Foreign Investments, Financial Crisis Boosts Apparel Industry,”

Pacific Trade Winds (Santa Barbara, CA), July 1999, pp. 1-2.

 

18 “Indonesia: Economic Recovery Progressing,” JTN Monthly, Feb. 2000, p. 18. An Indonesian textile trade

association reportedly has petitioned the Indonesian Government for $5 billion to fund the industry’s

modernization. See “Indonesia’s Textile Industry Looking for Governmental Help,” Emerging Textiles, found at

Internet address http://www.emergingtextiles.com/cgi-bin/more.cgi/latest300300.html, retrieved Apr. 3, 2000.

 

19 The number of apparel factories in Cambodia reportedly rose from 70 in 1997 to 178 in 1999. See “Racing

Ahead--Cambodia,” Textile Asia, Nov. 1999, p. 96.

9-6

goods in the United States, as well as a shift toward higher valued-added textile products.14 The import

growth from Korea offset a decline in imports from Hong Kong of $129 million (3 percent) and Taiwan of

$102 million (3 percent). Taiwan’s competitiveness reportedly declined as a result of the major currency

devaluations of competing countries in East Asia.15 Imports from Hong Kong likely fell for similar reasons,

although Hong Kong suppliers have reportedly been losing sales to China, Mexico, Indonesia, and other

countries with lower cost structures.16

U.S. imports of textiles and apparel from the Association of Southeast Asian Nations (ASEAN)

rose by $383 million (5 percent) to $8.7 billion in 1999, compared with a $1.0 billion increase in 1998. The

smaller increase in 1999 likely resulted from a strengthening of the currencies of several ASEAN countries

as their economies began recovering from the Asian financial crisis. Thailand replaced Indonesia as the

largest ASEAN source of these goods, with shipments rising by $82 million (4 percent) to $2.1 billion,

whereas those from Indonesia fell by $56 million (3 percent) to $2.0 billion. The import increase from

Thailand reportedly reflected the country’s political stability and reputation as a reliable supplier, the

infusion of substantial foreign direct investment in the apparel industry in 1998, and the Thai Government’s

offers of low interest-rate loans to the local textile and apparel industry to upgrade equipment and

facilities.17 A trade source reported that the decline in imports from Indonesia may be attributed to obsolete

apparel and textile facilities and equipment and to the country’s political instability that prompted concerns

about transportation problems and delivery disruptions.18 Substantial growth occurred again in imports

from the newest ASEAN member, Cambodia, whose shipments rose by $226 million (63 percent) to $587

million in 1999. Industry sources attribute this growth to increased foreign investment in apparel

production, which has enabled apparel to become one of the biggest growth industries in Cambodia.19 As

discussed in the textile and apparel section of chapter 4 of this report, the United States recently granted

Cambodia a 5-percent quota increase for calendar year 2000.

Laura Rodriguez-Archila

(202) 205-3499

lrodriguez@usitc.gov
Table 9-3

Textiles, apparel, and footwear sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

9-7

CH045 Fibers and yarns, except raw cotton and raw

 wool:

Exports .............................. 2,969 2,830 -139 -4.7

Imports .............................. 2,498 2,547 50 2.0

Trade balance ......................... 471 282 -189 -40.1

CH046 Fabrics:

Exports .............................. 4,886 5,170 283 5.8

Imports .............................. 5,662 5,563 -99 -1.8

Trade balance ......................... -776 -393 383 49.4

CH047 Carpets and rugs:

Exports .............................. 826 772 -54 -6.6

Imports .............................. 1,109 1,248 139 12.5

Trade balance ......................... -283 -475 -193 -68.2

CH048 Home furnishings:

Exports .............................. 442 398 -44 -10.0

Imports .............................. 2,271 2,652 380 16.7

Trade balance ......................... -1,829 -2,254 -424 -23.2

CH049 Apparel:

Exports .............................. 8,514 7,964 -549 -6.5

Imports .............................. 53,874 56,565 2,691 5.0

Trade balance ......................... -45,361 -48,601 -3,240 -7.1

CH050 Miscellaneous textile products:

Exports .............................. 1,500 1,589 89 5.9

Imports .............................. 2,395 2,696 301 12.6

Trade balance ......................... -894 -1,106 -212 -23.7

CH051 Footwear:

Exports .............................. 720 693 -27 -3.7

Imports .............................. 13,879 14,074 194 1.4

Trade balance ......................... -13,159 -13,380 -221 -1.7

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

2

 This coding system is used by the U.S. International Trade Commission to identify major groupings of HTS

import and export items for trade monitoring purposes.

Note.--Calculations based on unrounded data.

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

 

1

 See ch. 2 for a general discussion about U.S. and international macroeconomic conditions that influenced U.S.

merchandise trade performance in 1999.

 

2

 See app. G for a more detailed discussion about how exchange rate shifts and other macroeconomic factors

affect trade flows.

10-1

,,,,,,,,,,,,,,,,

CHAPTER 10

Minerals and Metals

Vincent DeSapio, Coordinator

(202) 205-3435

desapio@usitc.gov

The U.S. trade deficit in the minerals and metals sector widened slightly by $1.6 billion (4 percent)

in 1999 to $41.8 billion, as U.S. exports of minerals and metals declined by $669 million (2 percent) to

$39.9 billion (table 10-1) and imports rose by $978 million (1 percent) to $81.7 billion. The rise in U.S.

imports reflected continued strong U.S. economic growth, whereas the decline in U.S. exports reflected

more modest economic growth abroad1 and a strengthening of the U.S. dollar relative to currencies of major

trade partners.2 The increasing trade deficit in minerals and metals in 1999 continues the trend of 1998,

when the deficit for the sector expanded by $10.1 billion (34 percent) to $30.1 billion.

The decline in U.S. exports of minerals and metals in 1999 was caused by declines in a number of

key industry/commodity groups (table 10-2). U.S. exports of steel mill products and of iron and steel waste

and scrap, together, fell by $413 million (8 percent) to $5 billion, reflecting declines in the price of finished

steel products and scrap in 1999, and stronger U.S. domestic demand relative to foreign demand for steel

mill products. U.S. exports of precious metals and non-numismatic coins declined by $343 million (5

percent) to $6.5 billion due largely to declining prices of gold and silver and wide swings in shipments of

silver bullion to the United Kingdom, a major global precious-metals trading center.

The increase in U.S. imports of minerals and metals in 1999 was lead by natural and synthetic

gemstones (table 10-3), which rose by $1.6 billion (17 percent) to $11.0 billion, largely due to increases in

diamond imports from Israel, India, and Belgium--major diamond cutting and trading centers--as lowerpriced diamonds continued to spur consumer interest. U.S. imports of cement, stone, and related products

increased by $676 million (20 percent) to $4.1 billion in 1999, due to continued strong residential and

commercial construction markets in the United States and increased imports of cement and other

construction-related materials from Canada and emerging non-traditional suppliers such as China,

Thailand, and South Korea. At the same time, imports of miscellaneous products of base metal increased

by $653 million (11 percent) to $6.6 billion in 1999, due largely to the significant trade in certain

automotive-related parts between automotive plants in the United States and Canada.

The widening of the U.S. trade deficit for minerals and metals also was partially offset by

increased U.S. exports of miscellaneous products of base metal and declining imports of steel mill

products. Reflecting the significant integration of the automotive manufacturing sector in North America,

U.S. exports of these miscellaneous products increased by $477 million (10 percent) in 1999 to $5.4

billion, largely due to extensive trade in certain automotive-related parts between plants in the United States

and Canada. Imports of steel mill products declined by $3.7 billion (22 percent) in 1999 to 
10-2

Table 10-1

Minerals and metals: U.S. exports of domestic merchandise, imports for consumption, and merchandise

trade balance, by selected countries and country groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,

Item 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––– Million dollars ––––––––

U.S. exports of domestic merchandise:

Canada ..................................... 13,129 13,578 449 3.4

Mexico ...................................... 6,063 6,528 465 7.7

Japan ....................................... 1,993 1,890 -103 -5.2

China ....................................... 592 713 121 20.5

United Kingdom ............................... 4,272 3,079 -1,193 -27.9

Israel ....................................... 196 225 29 14.9

Germany .................................... 1,169 1,194 25 2.2

Taiwan ...................................... 669 590 -79 -11.9

Switzerland .................................. 1,565 2,787 1,223 78.1

Russia ...................................... 64 31 -33 -52.1

All other ..................................... 10,849 9,276 -1,573 -14.5

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 40,559 39,890 -669 -1.6

EU-15 ...................................... 8,601 7,135 -1,466 -17.0

OPEC ...................................... 994 728 -266 -26.7

Latin America ................................. 8,722 8,619 -103 -1.2

CBERA ..................................... 821 708 -114 -13.8

Asia ........................................ 6,149 5,783 -365 -5.9

Sub-Saharan Africa ............................ 258 222 -36 -14.1

Central and Eastern Europe ...................... 87 87 (

2

) -0.5

U.S. imports for consumption:

Canada ..................................... 16,994 17,285 292 1.7

Mexico ...................................... 5,720 5,997 276 4.8

Japan ....................................... 6,630 5,159 -1,471 -22.2

China ....................................... 4,615 5,520 906 19.6

United Kingdom ............................... 2,624 2,584 -40 -1.5

Israel ....................................... 3,807 4,588 781 20.5

Germany .................................... 3,425 3,444 20 0.6

Taiwan ...................................... 3,076 3,264 189 6.1

Switzerland .................................. 884 992 108 12.2

Russia ...................................... 3,953 3,397 -556 -14.1

All other ..................................... 29,011 29,486 475 1.6

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 80,739 81,717 978 1.2

EU-15 ...................................... 16,333 16,248 -85 -0.5

OPEC ...................................... 1,347 1,306 -41 -3.0

Latin America ................................. 10,948 11,629 680 6.2

CBERA ..................................... 468 536 68 14.6

Asia ........................................ 21,309 21,447 137 0.6

Sub-Saharan Africa ............................ 2,600 2,637 37 1.4

Central and Eastern Europe ...................... 652 693 41 6.3

U.S. merchandise trade balance:

Canada ..................................... -3,865 -3,708 157 4.1

Mexico ...................................... 342 531 189 55.2

Japan ....................................... -4,638 -3,270 1,368 29.5

China ....................................... -4,023 -4,807 -784 -19.5

United Kingdom ............................... 1,648 495 -1,153 -69.9

Israel ....................................... -3,612 -4,363 -752 -20.8

Germany .................................... -2,256 -2,250 6 0.3

Taiwan ...................................... -2,407 -2,675 -268 -11.1

Switzerland .................................. 681 1,795 1,115 163.7

Russia ...................................... -3,889 -3,366 523 13.4

All other ..................................... -18,162 -20,210 -2,047 -11.3

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... -40,181 -41,827 -1,646 -4.1

EU-15 ...................................... -7,732 -9,113 -1,381 -17.9

OPEC ...................................... -353 -578 -225 -63.8

Latin America ................................. -2,226 -3,010 -784 -35.2

CBERA ..................................... 354 172 -182 -51.4

Asia ........................................ -15,160 -15,663 -503 -3.3

Sub-Saharan Africa ............................ -2,342 -2,416 -73 -3.1

Central and Eastern Europe ...................... -565 -606 -41 -7.3

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

 

2

 Less than $500,000.

Note.--Calculations based on unrounded data. The countries shown are those with the largest total U.S. trade (U.S.

imports plus exports) in these products in 1999.

Source: Compiled from official statistics of the U.S. Department of Commerce.
10-3

Table 10-2

Leading changes in U.S. exports of minerals and metals, 1998 and 1999

Change, 1999 from 1998

Sector/commodity 1998 1999 Absolute Percent

 –––––––—Million dollars——––––—

Increases:

Miscellaneous products of base metal (MM031) ......... 4,892 5,369 477 10

Natural and synthetic gemstones (MM019) ............. 217 447 230 106

Flat glass (MM014) ............................... 1,416 1,506 90 6

Certain cutlery, sewing implements, and related

products (MM043) .............................. 511 583 72 14

Industrial fasteners of base metal (MM032) ............ 1,470 1,535 65 4

Unwrought aluminum (MM037) ...................... 917 980 64 7

Decreases:

Steel mill products (MM025) ........................ 4,636 4,291 -346 -8

Precious metals and non-numismatic

coins (MM020) ................................ 6,853 6,510 -343 -5

Steel pipe and tube fittings, and certain cast

products (MM026) .............................. 809 662 -147 -18

Copper and related articles (MM036) ................. 1,813 1,668 -144 -8

Metallic containers (MM029) ........................ 819 690 -129 -16

Certain base metals and chemical

elements (MM041) ............................. 1,398 1,272 -126 -9

Certain ores, concentrates, ash, and

residues (MM007) .............................. 350 237 -114 -32

All other ........................................ 14,458 14,140 -318 -2

Total ...................................... 40,559 39,890 -669 2

Note.--Calculations based on unrounded data.

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

Table 10-3

Leading changes in U.S. imports of minerals and metals, 1998 and 1999

Change, 1999 from 1998

Sector/commodity 1998 1999 Absolute Percent

––––––––– Million dollars –––––––––

Increases:

Natural and synthetic gemstones (MM019). ............ 9,449 11,021 1,572 17

Cement, stone, and related products (MM009). .......... 3,426 4,103 676 20

Miscellaneous products of base metal (MM031) ......... 5,985 6,639 653 11

Copper and related articles (MM036) ................. 3,359 3,726 367 11

Cooking and kitchen ware (MM033) .................. 1,393 1,585 191 14

Unwrought aluminum (MM037) ...................... 4,558 4,744 186 4

Certain builders’ hardware (MM045). . . ............... 1,531 1,696 165 11

Ceramic floor and wall tiles (MM012) ................. 860 1,019 159 19

Flat glass (MM014) ............................... 1,120 1,268 148 13

Decreases:

Steel mill products (MM025) ........................ 16,434 12,749 -3,685 -22

Primary iron products (MM021) ..................... 856 643 -213 -25

Certain base metals and chemical

elements (MM041) ............................. 2,424 2,226 -197 -8

Copper ores and concentrates (MM004) ............... 228 82 -146 -64

Iron ores and concentrates (MM003) ................. 527 399 -129 -24

All other ........................................ 28,589 29,817 1,228 4

Total ...................................... 80,739 81,717 978 1

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
10-4

$12.7 billion, led by lower Japanese imports which declined by $1.5 billion (38 percent) to $2.4 billion.

The decline in U.S. imports of steel mill products largely reflected economic recovery in Asia and the

dampening effects of trade actions against foreign producers by U.S. steel producers. Trade statistics for all

commodity/industry groups in the minerals and metals sector are presented in table 10-6 at the end of this

chapter.

U.S. BILATERAL TRADE

The largest U.S. trade partners in the minerals and metals products sector in 1999 were Canada,

Mexico, and Japan. Canada was the leading destination for U.S. exports in 1999, accounting for 34 percent

($13.6 billion) of all sector exports, and the leading source of imports, accounting for 21 percent ($17.3

billion) of all sector imports. The U.S. trade deficit in minerals and metals with Canada decreased by $157

million (4 percent) to $3.7 billion in 1999, as U.S. exports to Canada, which rose by $449 million (3

percent), outpaced U.S. imports from Canada, which rose by $292 million (2 percent). Principal product

groups experiencing export increases were miscellaneous articles of base metal, up by $294 million (15

percent) to $2.3 billion; flat glass, up by $130 million (19 percent) to $829 million; and steel mill products

which rose by $28 million (1 percent) to $2.3 billion. The principal product groups registering an increase

in 1999 U.S. imports from Canada were aluminum mill products, which increased by $133 million (12

percent) to $1.2 billion; and miscellaneous products of base metal, which increased by $142 million (9

percent) to $1.8 billion. Both industry segments experienced import growth due largely to continued strong

demand for certain automotive parts by U.S. automotive plants and for appliances due to consumer

confidence and the growth in housing starts. Imports from Canada of steel mill products declined by $137

million (6 percent) to $2.4 billion, largely reflecting shifts in automotive-related demand for steel by endusers. Imports from Canada of copper and related articles declined by $78 million (7 percent) to $1.1

billion, largely resulting from the continuing decline in copper prices.

Various ferrous and nonferrous metal-consuming sectors, such as the steel, automotive, and

appliances industries, are highly integrated between the United States and Canada, resulting in extensive

trade flows of raw materials, intermediate products, and finished products between the two nations. The

lowering of trade restrictions between North American Free Trade Agreement (NAFTA) countries has

encouraged metals producers and consumers to integrate their North American production and distribution

operations to more efficiently serve regional end-use markets in North America.

Mexico was the second-leading market for U.S. sector exports and the third-leading supplier of

U.S. imports of minerals and metals in 1999. U.S. exports to Mexico of minerals and metals in 1999

registered a $465-million (8-percent) increase to $6.5 billion, which accounted for 16 percent of overall

sector exports. The increase was accounted for largely by miscellaneous products of base metal, which rose

by $242 million (17 percent) to $1.6 billion; and copper and related articles, which rose by $22 million (6

percent) to $383 million; reflecting growing demand for construction-related materials in Mexico. U.S.

imports of minerals and metals from Mexico increased $276 million (5 percent) to $6 billion, accounting

for 7 percent of all sector imports. Most of the increase was accounted for by miscellaneous products of

base metal which increased by $167 million (16 percent) to $1.2 billion, due to automotive-related demand.

Other increases included flat glass, which rose by $52 million (16 percent) to $389 million, reflecting

strong automotive and construction demand; and cement, stone, and related products, which rose by $52

million (20 percent) to $306 million, reflecting strong construction markets in the United States.

U.S. exports of minerals and metals to Japan registered a $103-million (5-percent) decline in 1999

to $1.9 billion (representing 5 percent of all sector exports). The decline was principally concentrated in

aluminum mill products, down by $44 million (31 percent) to $101 million; certain base metals and
 

3

 Includes semifinished, flat-rolled (plate and sheet), bars, rods, angles and sections, wire, rails, pipes, and

tubes.

 

4

 These mill included Bayou Steel, SMI Steel, North Star, and Chaparral. Norman L. Samways, “Developments

in the North American Iron and Steel Industry-1999,” American Iron and Steel Engineer, Feb. 2000, pp. 27-46.

 

5

 Weirton Steel chose not to operate its No. 4 blast furnace during 1999 due to reduced demand. Bethlehem

Steel relined the blast furnace at the Sparrow’s Point mill. LTV experienced equipment outages at both the

Cleveland and Indiana Harbor plants. An explosion and fire at Rouge Steel idled steelmaking operations from Feb.

to May 1999.

10-5

chemical elements, down by $26 million (18 percent) to $120 million; and copper and related articles which

declined by $29 million (23 percent) to $96 million--all largely attributable to lingering weakness in

Japan’s industrial sector. U.S. imports of minerals and metals from Japan decreased by $1.5 billion (22

percent) to $5.2 billion (representing 6 percent of sector imports), almost entirely as a result of resumed

shipments of steel and related products by Japanese producers to traditional Asian markets and the effect of

U.S. trade actions on Japanese producers.

U.S. exports of minerals and metals to Asian and Latin American nations totaled 14 percent and 22

percent, respectively, of sector exports to all destinations in 1999, with European Union (EU) nations

representing 18 percent of U.S. sector exports. The trade deficit in this sector with Latin America increased

by $784 million (35 percent) to $3 billion whereas the U.S. trade deficit with Asia increased by $503

million (3 percent) to $15.7 billion. The largest trade balance change in this sector occurred with the EU as

the deficit grew by $1.4 billion (18 percent) to $9.1 billion in 1999, largely influenced by dramatic swings

in diamond exports to major trading centers in Belgium, as U.S. sector exports to EU nations decreased by

$1.5 billion (17 percent) to $7.1 billion.

COMMODITY ANALYSIS

Steel Mill Products3

U.S. total trade (exports plus imports) in steel mill products declined by $4.0 billion (19 percent)

during 1999 to $17.0 billion. U.S. imports of $12.7 billion were at the lowest since 1995. U.S. exports of

steel mill products made up 13 percent of the volume of total trade, but accounted for only 5 percent of

U.S. mill shipments in 1999. Exports continued to decline in 1999 by $346 million (8 percent) to

$4.3 billion, following a 4-percent decrease in 1998; Canada and Mexico are the leading U.S. export

markets. Overall, the United States was a net importer of steel mill products, with exports playing a

relatively minor role in the market.

U.S. shipments of steel mill products rose by 2 million metric tons (mmt) (3 percent) in 1999 to 

95 mmt, however, apparent supply of finished steel products fell by 4 percent. Service centers and

distributors continued to be the leading market for steel mill products, despite a 1-percent decrease in

service center shipments during 1999, followed by the automotive industry and construction products

market. The United States was the second-largest steel producer in the world, after China, despite domestic

raw steel production falling slightly to 97 mmt. Capacity utilization declined from an average of 86.8

percent in 1998 to an average of 83.7 percent in 1999. Some steelmakers increased steelmaking

capabilities,4 but others reported planned and unplanned outages.5

Other factors affecting the condition of the U.S. steel industry included lower average selling

prices. The U.S. Bureau of Labor Statistics’ producer price index for steel mill products registered lower
 

6

 The U.S. Department of Commerce (USDOC) negotiated suspension agreements with Russia and Brazil to

limit exports of hot-rolled steel products to the United States. Russia also concluded a comprehensive steel

agreement in July 1999 to limit steel exports to the United States for several product categories. See USDOC

International Trade Administration (ITA), “Fact Sheet-Comprehensive Agreement on Steel Imports from the

Russian Federation,” July 12, 1999, found at Internet address http://www.ita.doc.gov/media/0713steelfs.htm,

retrieved Apr. 21, 2000. U.S. imports of steel mill products from Russia declined by 4 mmt (72 percent) in 1999 to

1 mmt.

 

7

 Cases initiated or completed during the year under Title VII of the Tariff Act of 1930, in addition to 5-year

review cases (see app. E), covered cut-to-length steel plate; stainless steel plate, other than cold-rolled; stainless

steel round wire; hot-rolled steel products; stainless steel sheet and strip; cold-rolled steel products; seamless

carbon and alloy steel standard, line, and pressure pipe; structural steel beams; circular seamless stainless steel

hollow products; and tin- and chromium-coated steel sheet. In addition, two cases completed under Section 202(b)

(continued...)

10-6

prices for 1999 compared with 1998 and 1997, and the average unit value for U.S. steel imports and

exports declined 10 percent and 6 percent, respectively.

U.S. imports

U.S. imports of steel mill products fell by $3.7 billion (22 percent) during 1999 to $12.7 billion,

while the quantity of imports decreased by 5 mmt (14 percent) to 33 mmt. However, 1998 was a record

year for steel imports of $16.4 billion, compared to import levels in 1997 of $13.6 billion or 28.6 mmt.

Canada, Japan, and Mexico were the leading sources of imports in 1999, with $2.3 billion (19 percent of

imports), $1.5 billion (11 percent), and $1.1 billion (9 percent), respectively. In terms of import tonnage,

Canada accounted for 5 mmt, Mexico accounted for 3 mmt, and Japan accounted for 3 mmt. 

Reflecting shifts in market prices, the magnitude of the shift in the value of imports from many

countries was not proportional to the shift in quantity, as the average unit value of the products from these

countries fell, along with prices of steel mill products in 1999. The following tabulation highlights some of

these differences:

Country Percentage change in imports:

Value Quantity

Russia ............ -76 -72

Japan ............. -50 -54

United Kingdom ..... -28 -34

Korea ............. -22 -14

Germany .......... -16 -1

France ............ -9 6

Canada ............ -6 1

Mexico ............ -4 15

Brazil ............. 2 39

Taiwan ............ 43 88

Imports of finished steel products decreased by $3.7 billion (25 percent) to $11.0 billion or by

7 mmt (21 percent) to 25 mmt. The product groups that contributed the most to the decline included hotrolled sheet, cold-rolled sheet, cut-to-length plate, and heavy structural shapes (table 10-4), despite

relatively strong demand in the U.S. market. Hot-rolled flat products alone accounted for the majority of

the import decline, falling by 5 mmt (48 percent) to 6 mmt.6 Several steel mill products were subject to

antidumping investigations throughout 1999.7 Steel industry officials attributed the reduced quantity of
 

7

 (...continued)

of the Trade Act of 1974 covered steel wire rod and welded line pipe.

 

8

 American Iron and Steel Institute, press release “Full Year 1999: Steel Imports Exceed 35 Million Tons Total

and Finished Steel Imports Second Highest Ever and Prices Not Yet Restored,” Jan. 31, 2000, found at Internet

address http://www.steel.org/news/pr/2000/pr0001_import.htm, retrieved Apr. 10, 2000.

 

9

 Douglas Preston Yadon, Preston Pipe and Tube Report-TubeNet Issue 2/2000, vol. 18, No. 1, Jan. 2000,

found at Internet address http://www.tubenet.org, retrieved Apr. 21, 2000.

 

10 Tom Stundza, “How Long Will Tight Supply Last?” Purchasing, Mar. 9, 2000 found at Internet address

http://www.manufacturing.net/magazine/purchasing, retrieved Apr. 14, 2000.

 

11 Baher Hughes, Inc., “Baher Hughes Investor Relations: Rig Counts,” found at Internet address

http://www.baherhughes.com/investor/rig/index.htm, retrieved Apr. 26, 2000.

 

12 U.S. imports of oil country tubular goods and line pipe together decreased by 456,345 metric tons (31 percent)

to 996,928 metric tons in 1999.

10-7

imports in 1999 to these trade cases.8 In general, products subject to antidumping investigations did

experience a reduction in both the value and quantity of imports, contributing to the overall decline in U.S.

imports of steel mill products.

Table 10-4 

Changes in U.S. imports of steel mill products, 1998 and 1999

Change, 1999 from 1998

Commodity 1998 1999 Absolute Percent

 –––––––––– Million dollars –––––––––

Carbon steel finished products:

 Hot-rolled flat products ......................... 3,312 1,562 -1,750 -53

 Angles, shapes, and sections .................... 967 477 -490 -51

 Cold-rolled flat products ........................ 1,243 866 -377 -30

 Coated flat products ........................... 1,071 1,273 202 19

Alloy steel finished products ....................... 2,006 1,632 -374 -19

Stainless steel finished products ................... 1,370 1,105 -266 -19

Seamless pipe and tube, all grades ................. 921 595 -326 -35

Large diameter welded pipe and tube, all grades ....... 406 234 -171 -42

Semifinished products, all grades .................. 1,663 1,709 47 3

All other ..................................... 3,475 3,296 -179 -5

 Total .................................... 16,434 12,749 -3,685 -22

 Note.--Calculations based on unrounded data.

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

U.S. imports of pipe and tube products declined by 569,282 metric tons during 1999 after rising by

590,230 metric tons during 1998. Total domestic shipments of pipe and tube products were down

11 percent from 1998 levels, along with a reduction in most pipe and tube imports.9 Overall, domestic

demand for pipe and tube products fell by almost 8.5 percent, after 6 years of continuous growth, as

drilling activity in the energy sector slowed.10 U.S. rig counts, a key indicator of oil and gas drilling

activity, averaged 608 in 1999, compared with 829 in 1998, and 944 in 1997.11 Oil country tubular goods

and line pipe together accounted for 80 percent of the drop in the quantity of pipe and tube imports during

1999.12
 

13 On Feb. 16, 2000, the President issued Proclamation 7273, which imposed a safeguard action in the form of a

tariff-rate quota on imports of certain steel wire for a period of 3 years and 1 day. The action followed receipt of a

report from the USITC under section 202 of the Trade Act of 1974 containing what the President considered to be

an affirmative determination.

 

14 On Aug. 28, 2000, the USDOC published a notice in the Federal Register (65 F.R. 52067) that it will direct

the U.S. Customs Service to impose antidumping duties on imports of tin- and chromium-coated steel sheet from

Japan. The action followed a finding by the USDOC that such coated steel sheet from Japan was being sold in the

United States at less than fair value (dumped) and a determination by the USITC that an industry in the United

States was materially injured or threatened with material injury by reason of such imports.

 

15 Tom Bagsarian, “Mills Bring in the Slabs,” New Steel, June 1999, pp. 42-44.

 

16 As the import value of diamonds increased, the quantity increased by 5.6 million carats (31 percent) to

23.5 million carats, thereby decreasing the trade weighted average unit import price by $53 to $422 per carat. 

10-8

Within major product categories, some steel products experienced import growth, including

concrete reinforcing bars, wire rod,13 galvanized sheet and strip, and tin plate.14 In addition, the U.S. steel

industry imported semifinished products to complement domestic steelmaking capabilities. Such imports

rose by 2 mmt (27 percent) during 1999 to 8 mmt, accounting for 24 percent of all steel imports by

tonnage. In contrast, semifinished products comprised 16 percent of the quantity of all steel imports in

1998. The average unit value for imports of semifinished steel products fell by 18 percent during 1999.

However, this situation arose despite a capacity utilization level of only 83.7 percent for 1999, as

steelmakers attempted to take advantage of lower import prices.15

Tracy Quilter

(202) 205-3437

tquilter@usitc.gov

Natural and Synthetic Gemstones

The U.S. trade deficit for natural and synthetic gemstones (hereafter gemstones) expanded by

approximately $1.3 billion (15 percent) during 1999 to $10.6 billion, primarily as a result of a large

increase in imported gemstones, particularly diamonds. The United States is the world’s largest consumer

market of gemstones, but with no significant natural-gemstone resources, generally relies on imports to

supply nearly all of its requirements. U.S. exports also increased, by $230 million (106 percent) to $447

million, because of higher foreign demand for processed diamonds, although not nearly enough to counter

the rise in imports.

U.S. imports

The sustained strength of the U.S. economy and greater consumer interest in lower priced

diamonds caused a $1.6 billion (17 percent) growth in imports of gemstones to $11.0 billion. Although the

value of all gemstone commodities increased, the value of diamonds alone rose by $1.4 billion (17 percent)

to $9.9 billion (table 10-5).16 The combined value of U.S. diamond imports from Israel, India, and

Belgium--major diamond cutting and trading centers--increased by $1.3 billion (17 percent) to $8.7 billion.

These countries continued to represent the bulk of U.S. diamond imports, and 79 percent of imported

gemstones in 1999.

Pearl imports increased by $105 million (38 percent) to $385 million, of which Japan--the global

trade center for pearls--supplied nearly one-half. China is also a growing import source for pearls, trading

its product directly with the United States as well as through Japan, reflecting Japanese 
 

17 Gary Roskin, “Chinese Pearls a Hit in Tucson,” Jewelers’ Circular Keystone, Apr. 1999, pp. 28-32.

10-9

Table 10-5

Changes in U.S. imports of natural and synthetic gemstones, 1998 and 1999

Change, 1999 from 1998

Commodity 1998 1999 Absolute Percent

 ––––––––– Million dollars ––––––––

Diamonds ....................................... 8,489 9,901 1,413 17

Natural colored gemstones .......................... 615 667 52 8

Pearls .......................................... 280 385 105 38

Synthetic and reconstructed gemstones ................. 66 68 3 4

 Total ......................................... 9,449 11,021 1,572 17

Note.--Calculations based on unrounded data.

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

investments in China’s pearl industry. U.S. imports of pearls directly from China increased by $9.8 million

(40 percent) to nearly $35 million. Industry sources report that since last year, China’s freshwater pearl

production has improved in terms of size, roundness, and luster to more closely compete with Japan’s

akoya production (the benchmark in pearl quality). With more favorable growing conditions in China

(Japan continues to experience pollution problems in its growing water-beds) and longer growing periods of

4-7 years, some in the industry predict China may dominate the freshwater pearl production market in the

distant future.17

Linda White

(202) 205-3427

white@usitc.gov
Table 10-6

Minerals and metals sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

See footnote(s) at end of table.

10-10

MM001 Clays and related mineral products:

Exports .............................. 993 952 -41 -4.1

Imports .............................. 190 168 -21 -11.3

Trade balance ......................... 803 783 -20 -2.4

MM002 Fluorspar and miscellaneous mineral substances:

Exports .............................. 53 74 21 39.5

Imports .............................. 132 146 14 10.3

Trade balance ......................... -80 -72 7 9.2

MM003 Iron ores and concentrates:

Exports .............................. 244 243 -2 -0.6

Imports .............................. 527 399 -129 -24.4

Trade balance ......................... -283 -156 127 44.9

MM004 Copper ores and concentrates:

Exports .............................. 63 81 18 28.0

Imports .............................. 228 82 -146 -64.0

Trade balance ......................... -165 -2 163 99.1

MM005 Lead ores, concentrates, and residues:

Exports .............................. 65 43 -22 -33.7

Imports .............................. 8 3 -4 -55.8

Trade balance ......................... 57 40 -18 -30.7

MM006 Zinc ores, concentrates, and residues:

Exports .............................. 304 352 48 16.0

Imports .............................. 37 53 16 42.9

Trade balance ......................... 267 299 33 12.3

MM007 Certain ores, concentrates, ash, and residues:

Exports .............................. 350 237 -114 -32.4

Imports .............................. 710 732 22 3.1

Trade balance ......................... -360 -495 -135 -37.6

MM008 Precious metal ores and concentrates:

Exports .............................. 11 40 30 278.3

Imports .............................. 45 4 -42 -92.0

Trade balance ......................... -35 37 71 (

3

)

MM009 Cement, stone, and related products:

Exports .............................. 1,201 1,184 -17 -1.4

Imports .............................. 3,426 4,103 676 19.7

Trade balance ......................... -2,226 -2,919 -693 -31.2

MM010 Industrial ceramics:

Exports .............................. 668 663 -5 -0.8

Imports .............................. 545 648 104 19.0

Trade balance ......................... 123 14 -109 -88.5

MM011 Ceramic bricks and similar articles:

Exports .............................. 26 20 -7 -24.8

Imports .............................. 20 24 5 24.7

Trade balance ......................... 7 -5 -11 (

3

)

MM012 Ceramic floor and wall tiles:

Exports .............................. 27 24 -3 -10.4

Imports .............................. 860 1,019 159 18.5

Trade balance ......................... -834 -995 -162 -19.4

MM013 Ceramic household articles:

Exports .............................. 103 109 6 5.5

Imports .............................. 1,716 1,671 -44 -2.6

Trade balance ......................... -1,613 -1,563 50 3.1

MM014 Flat glass:
Table 10-6--Continued

Minerals and metals sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

See footnote(s) at end of table.

10-11

Exports .............................. 1,416 1,506 90 6.3

Imports .............................. 1,120 1,268 148 13.2

Trade balance ......................... 296 238 -58 -19.7

MM015 Glass containers:

Exports .............................. 173 173 (

4

) (

5

)

Imports .............................. 452 526 74 16.5

Trade balance ......................... -279 -353 -74 -26.7

MM016 Household glassware:

Exports .............................. 179 183 4 2.2

Imports .............................. 864 937 73 8.5

Trade balance ......................... -685 -754 -69 -10.1

MM017 Miscellaneous glass products:

Exports .............................. 662 674 12 1.8

Imports .............................. 702 805 103 14.6

Trade balance ......................... -41 -131 -91 -222.2

MM018 Fiberglass insulation products:

Exports .............................. 74 71 -3 -4.4

Imports .............................. 71 139 68 95.2

Trade balance ......................... 3 -69 -71 (

3

)

MM019 Natural and synthetic gemstones:

Exports .............................. 217 447 230 106.3

Imports .............................. 9,449 11,021 1,572 16.6

Trade balance ......................... -9,233 -10,575 -1,342 -14.5

MM020 Precious metals and non-numismatic coins:

Exports .............................. 6,853 6,510 -343 -5.0

Imports .............................. 7,735 7,708 -27 -0.4

Trade balance ......................... -883 -1,198 -316 -35.8

MM021 Primary iron products:

Exports .............................. 17 14 -3 -17.8

Imports .............................. 856 643 -213 -24.8

Trade balance ......................... -838 -629 209 25.0

MM022 Ferroalloys:

Exports .............................. 103 80 -23 -22.3

Imports .............................. 1,018 960 -57 -5.6

Trade balance ......................... -914 -880 34 3.8

MM023 Iron and steel waste and scrap:

Exports .............................. 817 750 -67 -8.2

Imports .............................. 418 390 -27 -6.6

Trade balance ......................... 399 360 -39 -9.8

MM024 Abrasive and ferrous products:

Exports .............................. 531 518 -13 -2.5

Imports .............................. 735 765 30 4.1

Trade balance ......................... -204 -247 -43 -21.0

MM025 Steel mill products:

Exports .............................. 4,636 4,291 -346 -7.5

Imports .............................. 16,434 12,749 -3,685 -22.4

Trade balance ......................... -11,798 -8,458 3,339 28.3

MM026 Steel pipe and tube fittings and certain cast

 products:

Exports .............................. 809 662 -147 -18.2

Imports .............................. 591 584 -6 -1.1

Trade balance ......................... 219 78 -141 -64.5

MM027 Fabricated structurals:
Table 10-6--Continued

Minerals and metals sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

See footnote(s) at end of table.

10-12

Exports .............................. 151 186 35 23.4

Imports .............................. 328 432 103 31.5

Trade balance ......................... -177 -245 -68 -38.4

MM028 Metal construction components:

Exports .............................. 611 579 -32 -5.3

Imports .............................. 562 693 132 23.4

Trade balance ......................... 49 -115 -164 (

3

)

MM029 Metallic containers:

Exports .............................. 819 690 -129 -15.8

Imports .............................. 463 527 64 13.8

Trade balance ......................... 356 162 -193 -54.4

MM030 Wire products of base metal:

Exports .............................. 756 674 -83 -10.9

Imports .............................. 1,231 1,354 123 10.0

Trade balance ......................... -475 -681 -206 -43.3

MM031 Miscellaneous products of base metal:

Exports .............................. 4,892 5,369 477 9.8

Imports .............................. 5,985 6,639 653 10.9

Trade balance ......................... -1,094 -1,270 -176 -16.1

MM032 Industrial fasteners of base metal:

Exports .............................. 1,470 1,535 65 4.4

Imports .............................. 2,020 2,019 -1 -0.1

Trade balance ......................... -550 -484 66 12.1

MM033 Cooking and kitchen ware:

Exports .............................. 244 214 -30 -12.5

Imports .............................. 1,393 1,585 191 13.7

Trade balance ......................... -1,149 -1,371 -222 -19.3

MM034 Metal and ceramic sanitary ware:

Exports .............................. 147 132 -15 -10.2

Imports .............................. 403 473 70 17.3

Trade balance ......................... -257 -341 -85 -33.1

MM035 Construction castings and other cast-iron

 articles:

Exports .............................. 37 27 -9 -25.1

Imports .............................. 110 120 10 8.6

Trade balance ......................... -73 -92 -19 -25.5

MM036 Copper and related articles:

Exports .............................. 1,813 1,668 -144 -8.0

Imports .............................. 3,359 3,726 367 10.9

Trade balance ......................... -1,546 -2,058 -512 -33.1

MM037 Unwrought aluminum:

Exports .............................. 917 980 64 6.9

Imports .............................. 4,558 4,744 186 4.1

Trade balance ......................... -3,641 -3,764 -123 -3.4

MM038 Aluminum mill products:

Exports .............................. 3,046 2,943 -103 -3.4

Imports .............................. 2,181 2,283 103 4.7

Trade balance ......................... 866 660 -206 -23.8

MM039 Lead and related articles:

Exports .............................. 160 154 -5 -3.3

Imports .............................. 190 201 11 5.8

Trade balance ......................... -30 -46 -16 -53.4

MM040 Zinc and related articles:
Table 10-6--Continued

Minerals and metals sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

10-13

Exports .............................. 102 107 5 4.7

Imports .............................. 1,119 1,252 133 11.9

Trade balance ......................... -1,017 -1,145 -128 -12.6

MM041 Certain base metals and chemical elements:

Exports .............................. 1,398 1,272 -126 -9.0

Imports .............................. 2,424 2,226 -197 -8.1

Trade balance ......................... -1,025 -955 71 6.9

MM042 Nonpowered handtools:

Exports .............................. 2,060 2,031 -30 -1.4

Imports .............................. 2,885 2,917 32 1.1

Trade balance ......................... -825 -887 -62 -7.5

MM043 Certain cutlery, sewing implements, and related

 products:

Exports .............................. 511 583 72 14.2

Imports .............................. 781 856 74 9.5

Trade balance ......................... -271 -273 -2 -0.8

MM044 Table flatware and related products:

Exports .............................. 24 26 2 7.1

Imports .............................. 327 425 98 29.9

Trade balance ......................... -303 -399 -96 -31.7

MM045 Certain builders' hardware:

Exports .............................. 807 823 16 1.9

Imports .............................. 1,531 1,696 165 10.8

Trade balance ......................... -723 -873 -149 -20.7

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

2

 This coding system is used by the U.S. International Trade Commission to identify major groupings of HTS

import and export items for trade monitoring purposes.

3

 Not meaningful for purposes of comparison.

4

 Less than $500,000.

5

 Less than 0.05 percent.

Note.--Calculations based on unrounded data.

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

 

1

 See app. G for a more detailed discussion about how exchange rate shifts and other macroeconomic factors

affect trade flows.

 

2

 This extensive product grouping covers a wide and heterogeneous range of products such as: producer gas or

water gas generators; calendering and similar rolling machines; pulley tackle and hoists; winches; jacks; elevators,

moving stairways, and conveyors; ski lifts and draglines; lifting, handling, and unloading equipment; casting

machines; hand-held blow torches; evaporative air coolers; trash compactors; and additional categories of

industrial and commercial equipment not specifically provided for elsewhere in the tariff schedule.

 

3

 See ch. 2 for a general discussion about U.S. and international macroeconomic conditions that influenced U.S.

merchandise trade performance in 1999.

11-1

,,,,,,,,,,,,,,,,

CHAPTER 11

Machinery

William Greene, Coordinator

(202) 205-3405

greene@usitc.gov

In 1999, the U.S. trade deficit in the machinery sector widened by $5.3 billion (77 percent) to

$12.3 billion (table 11-1). The most significant deficit increases occurred in electric motors, generators, and

related equipment (hereafter electric motors and generators), which rose by $1.6 billion (198 percent) to

$2.4 billion; household appliances, including commercial applications (hereafter household appliances), by

$1.1 billion (149 percent) to $1.8 billion; and wiring harnesses for motor vehicles (hereafter wiring

harnesses), by $782 million (25 percent) to $3.9 billion.

The trade deficit in these products was due to a substantial downturn in the demand for U.S.

machinery in most regions of the world (table 11-1). During the first half of 1999, the European Union

(EU) and Latin America were still recovering from the effects of the 1998 global slow down. A decline in

the value of Western Europe’s major currencies and the Brazilian real, relative to the value of the U.S.

dollar, also placed U.S. exports at a competitive price disadvantage.1 Although the United States

experienced a trade deficit of $11.2 billion with the countries of Asia, U.S. exports increased by

$958 million and reached $5.7 billion following a rebound in the “Tiger” economies of Korea, Singapore,

Taiwan, and Hong Kong. Overall, U.S. exports of machinery products decreased by $1.1 billion (2

percent) to $66.9 billion in 1999 compared with 1998 (table 11-2). Farm and garden machinery and

equipment, household appliances, wiring harnesses, and electric motors and generators together accounted

for approximately $2.0 billion of the decreased U.S. exports in the machinery sector in 1999. However, a

significant offsetting increase in machinery exports was registered in miscellaneous machinery,2 which

grew by $1.1 billion (19 percent) in 1999 to $6.8 billion.

In 1999, U.S. imports of machinery increased by $4.2 billion (6 percent) to $79.1 billion. The top

five industry/commodity groups (table 11-3) that accounted for $3.6 billion or 68 percent of the overall

increase in the value of U.S. sector imports during 1999 were affected by continued expansion of the U.S.

economy,3 which created additional demand for capital equipment, housing, commercial activity, and motor

vehicles. In addition, concern over the possibility of power failures during the Year-2000 (Y2K) conversion

led to a surge in U.S. imports of power generators in late 1999. Among the industry/commodity groups 
11-2

Table 11-1

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

balance, by selected countries and country groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,

Item 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––– Million dollars ––––––––

U.S. exports of domestic merchandise:

Canada ..................................... 16,140 16,274 135 0.8

Mexico ...................................... 10,052 10,558 505 5.0

Japan ....................................... 3,517 3,591 74 2.1

Germany .................................... 2,716 2,675 -41 -1.5

China ....................................... 1,687 1,623 -64 -3.8

Taiwan ...................................... 2,654 3,503 849 32.0

United Kingdom ............................... 3,244 3,039 -205 -6.3

Italy ........................................ 939 1,006 67 7.2

Korea ....................................... 1,440 2,225 785 54.5

France ...................................... 1,812 1,893 81 4.5

All other ..................................... 23,809 20,499 -3,310 -13.9

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 68,010 66,886 -1,124 -1.7

EU-15 ...................................... 13,198 12,907 -291 -2.2

OPEC ...................................... 3,063 2,346 -717 -23.4

Latin America ................................. 17,110 16,016 -1,095 -6.4

CBERA ..................................... 1,893 1,730 -163 -8.6

Asia ........................................ 14,718 15,676 958 6.5

Sub-Saharan Africa ............................ 801 522 -279 -34.8

Central and Eastern Europe ...................... 368 363 -4 -1.2

U.S. imports for consumption:

Canada ..................................... 9,118 9,633 515 5.7

Mexico ...................................... 12,521 13,875 1,354 10.8

Japan ....................................... 13,235 13,219 -16 -0.1

Germany .................................... 9,514 9,670 156 1.6

China ....................................... 5,013 6,283 1,271 25.4

Taiwan ...................................... 2,837 3,028 190 6.7

United Kingdom ............................... 3,601 3,443 -158 -4.4

Italy ........................................ 3,534 3,551 17 0.5

Korea ....................................... 1,520 1,967 447 29.4

France ...................................... 2,319 2,100 -219 -9.5

All other ..................................... 11,717 12,374 657 5.6

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 74,929 79,143 4,214 5.6

EU-15 ...................................... 24,069 24,376 307 1.3

OPEC ...................................... 209 211 2 0.8

Latin America ................................. 13,379 14,805 1,426 10.7

CBERA ..................................... 154 190 37 23.9

Asia ........................................ 25,036 26,925 1,889 7.5

Sub-Saharan Africa ............................ 79 128 48 61.1

Central and Eastern Europe ...................... 575 543 -32 -5.6

U.S. merchandise trade balance:

Canada ..................................... 7,022 6,642 -381 -5.4

Mexico ...................................... -2,469 -3,318 -849 -34.4

Japan ....................................... -9,718 -9,628 89 0.9

Germany .................................... -6,798 -6,995 -197 -2.9

China ....................................... -3,326 -4,660 -1,335 -40.1

Taiwan ...................................... -183 476 659 (

2

)

United Kingdom ............................... -358 -404 -47 -13.1

Italy ........................................ -2,595 -2,545 50 1.9

Korea ....................................... -80 258 338 (

2

)

France ...................................... -507 -207 301 59.3

All other ..................................... 12,092 8,125 -3,967 -32.8

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... -6,919 -12,257 -5,338 -77.2

EU-15 ...................................... -10,871 -11,470 -598 -5.5

OPEC ...................................... 2,854 2,135 -719 -25.2

Latin America ................................. 3,731 1,210 -2,521 -67.6

CBERA ..................................... 1,740 1,540 -200 -11.5

Asia ........................................ -10,317 -11,249 -931 -9.0

Sub-Saharan Africa ............................ 722 394 -327 -45.4

Central and Eastern Europe ...................... -208 -180 28 13.5

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

 

2

 Not meaningful for purposes of comparison.

Note.--Calculations based on unrounded data. The countries shown are those with the largest total U.S. trade (U.S.

imports plus exports) in these products in 1999.

Source: Compiled from official statistics of the U.S. Department of Commerce.
11-3

Table 11-2

Leading changes in U.S. exports of machinery, 1998 and 1999

Change, 1999 from 1998

Sector/commodity 1998 1999 Absolute Percent

––––––––– Million dollars –––––––––

Increases: 

 Miscellaneous machinery (MM098) ................ 5,750 6,843 1,093 19

 Welding and soldering equipment (MM096) .......... 810 989 180 22

 Non-metalworking machine tools (MM086) .......... 617 792 175 28

 Air-conditioning equipments and parts (MM071) ....... 5,471 5,641 170 3

Decreases:

 Farm and garden machinery and

 equipment (MM078) .......................... 5,581 4,536 -1,045 -19

 Household appliances, including commercial

 applications (MM073) ........................ 5,895 5,524 -371 -6

 Wiring harnesses for motor vehicles (MM068) ........ 1,315 993 -322 -25

 Electric motors, generators, and related

 equipment (MM091) .......................... 3,955 3,728 -227 -6

All other ...................................... 38,616 37,841 -775 -2

 Total ................................... 68,010 66,886 -1,124 2

Note.--Calculations based on unrounded data.

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

Table 11-3

Leading changes in U.S. imports of machinery, 1998 and 1999

Change, 1999 from 1998

Sector/commodity 1998 1999 Absolute Percent

–––––––––– Million dollars –––––––––

Increases: 

 Electric motors, generators, and related

 equipment (MM091) .......................... 4,748 6,089 1,341 28

 Household appliances, including commercial

 applications (MM073) ........................ 6,608 7,302 694 11

 Air-conditioning equipment and parts (MM071) ....... 4,945 5,604 659 13

 Electric transformers, static converters, and

 inductors (MM092) ........................... 4,485 4,950 465 10

 Wire harnesses for motor vehicles (MM068) ......... 4,408 4,868 460 10

Decreases:

 Farm and garden machinery and

 equipment (MM078) .......................... 4,171 3,294 -877 -21

 Metal cutting machine tools and machine tool

 accessories (MM084) ......................... 4,590 3,921 -669 -15

 Textile machinery (MM082) ...................... 1,958 1,490 -468 -24

 Metal rolling mills (MM083) ...................... 514 321 -193 -38

All other ...................................... 38,502 41,304 -2,802 -7

 Total ................................... 74,929 79,143 4,214 6

Note.--Calculations based on unrounded data.

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

4

 “Permanent establishments” that ship products directly to customers in Mexico are taxed at a higher rate than

“maquiladora” operations that export assembled products to the United States for distribution.

 

5

 Lawrence W. Amrich, Government Relations Director for Mexico, Delphi Automotive Systems, interview

with USTIC staff, May 8, 2000.

 

6

 U.S. State Department (State Dept.,) telegram No. 00384, “Canadian Economy Prospects Good, Though

Productivity remains a Concern,” prepared by U.S. Embassy, Ottawa, Jan. 28, 2000.

 

7

 U.S. State Dept., FY2000 Country Commercial Guide: Canada, found at Internet address:

http://www.state.gov/www/about_state/business/com_guides/2000/wha/index.html, retrieved May 8, 2000.

11-4

accounting for the principal decreases in imports (table 11-3), which together generated 18 percent of the

machinery trade deficit in 1999, metal rolling mills completed several new greenfield steel plants in 1999.

Two key factors contributed to the $794 million (27 percent) expansion of the U.S. trade deficit

with Mexico in wiring harnesses. With the elimination of the Customs Merchandise Processing fee on July

1, 1999, U.S. companies with plants in Mexico assembling wire harnesses no longer had the incentive to

export “wiring set” components from the United States in more-expensive kit form. As a result, U.S.

exports of wiring harnesses dropped by $433 million (63 percent) in 1999 to $258 million when firms

began exporting separately uncut rolls of insulated wire, connectors, and components in other product

classifications. In contrast, imports from Mexico of wiring harnesses rose by $309 million (8 percent) in

1999 to $4.0 billion reflecting a sizable portion of re-exports to vehicle assembly plants in Mexico to

minimize the Mexican corporate income tax obligations of the auto parts companies that assemble wiring

harnesses in Mexico.4 Were it not for the possibility of being taxed as a “permanent establishment,” a

company reportedly would ship wiring harnesses and other motor vehicle parts directly to vehicle assembly

plants in Mexico from its parts assembly facilities in Mexico.5 The current practice inflates the value of

U.S. imports from Mexico, adds to the value of the U.S. sector trade deficit with Mexico, and raises

manufacturing costs for companies that assemble vehicles in Mexico. Trade statistics for all

commodity/industry groups in the machinery sector are presented in table 11-5 at the end of this chapter.

U.S. BILATERAL TRADE

In 1999, Canada and Mexico were the leading U.S. export markets for machinery exports

accounting for 40 percent ($26.8 billion) of all U.S. machinery exports (table 11-1). Likewise, Mexico,

Japan, Germany, and Canada accounted for 59 percent ($46.4 billion) of all U.S. machinery imports in that

year. The largest sector trade deficit shift was with China, which widened by $1.3 billion (40 percent) to

$4.7 billion.

During 1999, the U.S. trade deficit with Canada in machinery products grew by $381 million

(5 percent) to $6.6 billion, reflecting the ongoing strength of the U.S. economy and Canada’s weak dollar.

Continued strong U.S. motor vehicle and consumer electronic products markets in 1999 along with the

extensive interrelationships of U.S. companies and their Canadian subsidiaries, particularly those involving

motor-vehicle assembly operations, are a major factor in U.S. trade with Canada.6 The extent of

manufacturing integration between the countries is reflected by the similarity of two-way trade. The most

significant increases in U.S. machinery imports from Canada occurred in centrifuges and filtering and

purifying equipment, up by $130 million (36 percent ) to $494 million; household appliances, up by $99

million (13 percent) to $847 million; and miscellaneous machinery, up by $106 million (9 percent) to $1.3

billion. U.S. exports of machinery to Canada (the largest U.S. market) in 1999 recorded a modest increase,

rising by $135 million (1 percent) to $16.3 billion. Canadian companies exhibited a high level of demand

for U.S. machinery products to upgrade their plant and equipment, and to construct new facilities7 led by
 

8

 This product grouping covers electric motors and generators; electrical generating sets driven by gasoline or

diesel engines, natural gas turbines, or wind energy; parts of the foregoing; permanent and electromagnets and

magnetic devices; carbon electrodes and brushes; and electrical insulators of other than glass or ceramics.

11-5

exports of air-conditioning equipment and parts (hereafter AC equipment), up by $123 million (7 percent)

to $1.9 billion; household appliances, up by $34 million (2 percent) to $1.5 billion; and miscellaneous

machinery, up by $332 million (32 percent) to $1.3 billion. 

U.S. exports of machinery to Mexico increased by $505 million (5 percent) to $10.6 billion

whereas machinery imports from Mexico grew by $1.4 billion (11 percent) to $13.9 billion in 1999. A

significant portion of U.S. sector trade with Mexico consists of exported parts and subassemblies, and

imports of assembled or substantially advanced finished goods and components. Expanding U.S.

automotive, construction, and consumer electrical and electronic products markets are major driving forces

in U.S.-Mexico trade in machinery. The increase in U.S. exports of sector products to Mexico was led by

miscellaneous machinery, up by $228 million (35 percent) to $873 million; electric motors and generators,

up by $175 million (20 percent) to $1.1 billion; and AC equipment, up $161 million (20 percent) to $965

million. Among products experiencing the largest growth in U.S. imports from Mexico were wiring

harnesses, up by $309 million (8 percent ) to $4 billion; electric motors and generators, up by $274 million

(18 percent) to $1.8 billion; and AC equipment, up by $234 million (27 percent) to $1.1 billion.

COMMODITY ANALYSIS

Electric Motors, Generators, and Related Equipment8

The U.S. trade deficit in electric motors, generators, and related equipment (hereafter electric

motors and generators) nearly tripled for a second consecutive year, growing by $1.6 billion (198 percent)

to $2.4 billion. Rising trade deficits with the EU (up by $562 million, or 142 percent) and Japan (up by

$434 million, or 70 percent) accounted for nearly two-thirds of the overall expansion in the U.S. trade

deficit for these products in 1999. Growth in the bilateral deficits with Germany, the United Kingdom, and

Denmark accounted for nearly two-thirds of the increase in the U.S. deficit with the EU. Although imports

from each of these partners were up sharply in 1999, reflecting the strong growth in the U.S. economy,

U.S. exports to these markets were either flat or down slightly, as growth in these economies lagged behind

that in the United States.

U.S. imports 

U.S. imports of electric motors and generators increased by $1.3 billion (28 percent) in 1999 to

$6.1 billion (table 11-4). The vast majority of this increase ($1.1 billion or 75 percent) was accounted for

by Japan, Mexico, Germany, Denmark, and the United Kingdom. Imports rose substantially during 1999

due largely to the continued strength of the U.S. consumer electrical and electronic products markets, and

to concerns about potential wide-spread power outages associated with the Y2K transition of the computer

systems of U.S. electrical energy generators. Over two-thirds of the import rise was concentrated in six

product categories (table 11-4):
 

9

 U.S. exports to Mexico of electric motors, generators, and related equipment (including parts) rose by

$176 million (20 percent) in 1999 to $1.1 billion. The growth in exports of these products was 64 percent as large

as the expansion in U.S. imports of products in this category. Parts shipped to export processing plants accounted

for a significant share of U.S. exports to Mexico.

11-6

Table 11-4

Increases in U.S. imports of electric motors, generators, and related equipment, 1998 and 1999

Change, 1999 from 1998

Commodity 1998 1999 Absolute Percent

 ––––––––– Million dollars –––––––––

Electric generating sets with spark ignition engines ....... 89 373 284 317

AC single-phase motors over 37.5 watts but under 

 735 watts ..................................... 580 733 153 26

Electric generating sets, not elsewhere specified

 or identified ................................... 54 198 144 269

Miscellaneous parts for use in motors, generators,

 or power generation sets ........................ 536 677 141 26

AC generators rated over 750 kVA .................... 46 153 107 231

Wind-powered electric generating sets ................. 42 133 91 220

All other ........................................ 3,401 3,822 421 12

 Total ...................................... 4,748 6,089 1,341 28

Note.--Calculations based on unrounded data.

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

Japan paced the growth of U.S. imports in this product group as its shipments rose by $407 million

(53 percent) to $1.2 billion in 1999. Increased entries of electric generating sets with spark-ignition engines,

which were up by $252 million (310 percent) to $333 million, accounted for most of the growth of imports

from Japan. These generating sets are predominately portable gasoline engine-driven generators that are

frequently used on construction sites as well as sources of emergency power for residential households.

Anticipated Y2K-related computer problems potentially causing extensive blackouts stimulated widespread

consumer purchases of these generators, especially towards the end of 1999. Japanese producers, notably

Honda, were the major suppliers of this equipment.

U.S. imports of electric motors and generators from Mexico during 1999 increased by $274 million

(18 percent) to $1.8 billion. The largest single product increase was in AC single-phase motors exceeding

74.6 watts (approximately one-tenth horsepower) but not exceeding 735 watts (just under 1 horsepower),

which rose by $117 million (22 percent) to $642 million. These motors are used in a wide range of small

household appliances and consumer electronics, which benefitted from sustained demand due to the strong

U.S. economy. U.S. electric motor and generator manufacturers have shifted a substantial portion of the

labor-intensive final assembly processes for high volume categories to Mexico to take advantage of lower

Mexican labor costs and to compete more effectively with low cost foreign producers.9 Motors and

generators assembled in Mexico are used as components in a wide range of consumer electrical and

electronic products made in North America.

The increase in entries of motors and generators from Germany in 1999 amounted to $114 million

(33 percent) for a total of $464 million. Most of this growth was accounted for by shipments of

miscellaneous generating sets that increased by $82 million (422 percent) to $101 million, largely gas

turbine generating sets purchased by major industrial and commercial customers as sources of standby or

emergency power. Denmark exhibited the fastest growth rate among leading suppliers to the U.S. market.
 

10 See Soren Krohn, “Danish Wind Turbines: An Industrial Success Story,” found at Internet address

http://www.windpower.dk/articles/success.htm, retrieved May 12, 2000. 

 

11 These appliances are of the type found in home residences, but may also include similar appliances for

commercial applications. Included are small (portable) electric appliances, laundry equipment, refrigerators,

dishwashers, washing machines, electric and gas cooking stoves and ranges, vacuum cleaners, ceiling fans,

window air-conditioners, floor polishers, cooking equipment, microwave ovens, and appliances not elsewhere

classified, such as water heaters, and food waste disposal units.

 

12 See ch. 2 for a general discussion about U.S. and international macroeconomic conditions that influenced

U.S. merchandise trade performance in 1999.

11-7

Imports from Denmark rose by $112 million (162 percent) to $181 million in 1999, largely due to

substantial growth in wind-powered generating sets and associated parts. Danish wind turbine companies

have established themselves as “world class” designers of small-to medium-sized turbines due in part to

support provided by the Danish Government to companies that develop non-carbon-dioxide-generating,

“renewable energy” technologies.10

John Cutchin

(202) 205-3396

cutchin@usitc.gov

Household Appliances, Including Commercial Applications11

The U.S. merchandise trade deficit in household appliances, including commercial applications

(hereafter household appliances), more than doubled in 1999, widening by $1.1 billion (149 percent) to

$1.8 billion, as exports declined but imports rose. Relatively unchanged or declining shipments to major

export markets caused an overall decline in U.S. exports by $371 million (6 percent) to $5.5 billion. In

contrast, strong domestic demand for household appliances, due to continued expansion of the U.S.

economy and strong growth in housing starts throughout 1999,12 was an important factor accounting for

the $694 million (11 percent) rise in U.S. imports, which reached $7.3 billion.

A sizeable portion of U.S. household appliance trade reflects continued cross-border integration of

manufacturing, and U.S.-based manufacturers’ foreign direct investment through subsidiaries and joint

ventures. These trends in the North American major household appliance industry resulted in higher 1999

levels of U.S. imports of household appliances from Mexico and Canada (the second- and third-largest

U.S. trade partners, respectively, for these products in 1999), which together rose by $226 million (12

percent) to $2.2 billion. However, exports to these destinations remained relatively unchanged from the

previous year, increasing by $17 million (less than 1 percent) to $2.4 billion. More specifically,

intercompany transfers between U.S. manufacturers (e.g., Whirlpool Corp., and General Electric) and their

partners or subsidiaries (Vitromatic and MABE, respectively, in Mexico; and Inglis and Camco,

respectively, in Canada) were an important reason for the growth of U.S. household appliance trade in

North America. Suppliers with facilities in Mexico and Canada also benefit from lower transportation costs

than competitors exporting from Asia. U.S. exports of household appliances to these North American

partners largely consisted of parts and components for the production of appliances re-exported back to the

United States. Mexico is a particularly important source of small-sized refrigerators (less than 19 cubic feet

in capacity) and gas stoves and ranges; whereas Canada is an important source for laundry products (e.g.,

washers and dryers), refrigerators, and vacuum cleaners.

Reduced sales to South America were primarily responsible for the overall decline in U.S. exports

of household appliances in 1999, as exports to Latin America fell by $184 million (11 percent) to $1.6
 

13 For example, U.S.-based Whirlpool Corp., supplies the bulk of the South American market from its

manufacturing subsidiary in Brazil (Multibras S.A).

 

14 Labor accounts for a larger share of the total cost of producing and shipping the electrothermic-type small

appliances than for larger appliances where capital equipment, raw materials, and transportation have a greater

impact on overall costs.

 

15 The agricultural price index decreased 13.6 percent, the most substantial decline among major commodity

groups in 1999. See, World Bank, “Summary,” Global Commodity Markets, Jan. 2000, found at Internet address,

http://www.worldbank.org/prospects/gcmonline/index.htm, retrieved May 5, 2000.

 

16 Deere & Company, 1999 Annual Report, p. 11.

11-8

billion. Traditional South American household appliance markets for regional subsidiaries of U.S.-based

firms13 contracted as a result of the various economic crises caused or exacerbated by currency

devaluations (Brazil), foreign-investor uncertainty following elections (Venezuela), and political instability

(Colombia, Ecuador, and Paraguay).

Rising imports from the three leading suppliers (China, Mexico, and Canada), up by $636 million,

accounted for 92 percent of the entire overall increase in U.S. household appliance imports in 1999. The

largest growth in such imports was for electrothermic cookers, plates, grills, and roasters, which increased

by $114 million (97 percent) to $233 million. Approximately 26 percent of all 1999 U.S. imports of

appliances were from China (the largest U.S. supplier), as such imports increased by $410 million (28

percent) to $1.9 billion. Joint ventures by affiliates of U.S.,- Japan-, and Taiwan-based small electricappliance (e.g., microwave ovens and cooking stoves) producers facilitated import growth as they sought to

take advantage of lower Chinese labor costs.14 Microwave ovens supplied by Korean producers (Samsung,

LG Electronics, and Daewoo) accounted for nearly 44 percent of the U.S. market for microwaves and for

about three-quarters of all imports of household appliances from Korea, which increased by $103 million

(19 percent) in 1999 to $634 million. U.S. consumers are attracted by newer microwave models providing

advanced features and lower prices.

Ruben Mata

(202) 205-3403

mata@usitc.gov

Farm and Garden Machinery and Equipment

The U.S. trade surplus in farm and garden machinery and equipment (hereafter farm equipment)

was reduced by $168 million (12 percent) during 1999 to $1.2 billion, the lowest level since 1995. Both

U.S. imports and exports of the products declined in 1999, as world demand for farm equipment contracted

in response to lower agriculture commodity prices15 and the reluctance of farmers to purchase new

machinery.16 U.S. imports decreased by $877 million (21 percent) to $3.3 billion, tracking reduced

domestic retail sales by leading manufacturers of farm equipment. U.S. imports from Canada exhibited the

greatest absolute decline ($331 million or 36 percent), followed by France ($263 million or 52 percent) and

the United Kingdom ($210 million or 40 percent). The most significant trade surpluses were recorded with

Canada, Mexico, and Australia, all principal markets for U.S. exports. The U.S. trade balance with France

in farm equipment shifted from significant deficit to surplus for the first time in 3 years. Conversely, trade

deficits persisted with Japan, Italy, Germany, and the United Kingdom; however, the trade deficit with the

EU as a whole decreased by $501 million (69 percent) to $1.2 billion.

The global farm equipment industry in 1999 experienced restructuring as two leading producers

merged, while other companies consolidated production or announced greenfield projects. U.S.-based Case
 

17 AGCO Corp., “AGCO Reports Third Quarter Results,” Oct. 28, 1999, found at Internet address

http://www.agcocorp.com, retrieved Apr. 27, 2000.

 

18 For example, Deere indicated that product lines most significantly impacted by weak demand for agricultural

equipment, due to depressed grain and oilseed prices and lower proceeds from exports of agricultural products,

included high-horsepower, high-margin tractors and combines. Deere & Company, press release “Weak Farm

Conditions Lead to Lower Results at Deere,” Aug. 17, 1999, found at Internet address

http://www.deere.com/deerecom/_Newsroom/3rdqtr99.htm, retrieved May 1, 2000. See also AGCO Corp., press

release, “AGCO Reports Third Quarter Results,” Oct. 28, 1999 found at Internet address

http://www.agcocorp.com/news/NewsDetail.asp?CategoryID=37&NewsID=21, retrieved Apr. 27, 2000; and CNH

Global NV, press release “CNH Reports 1999 Full Year and Fourth Quarter Results,” Feb, 1, 2000, found at

Internet address http://today.newscast.com, retrieved Apr. 27, 2000.

 

19 CNH Global NV, press release “CNH Reports 1999 Full Year and Fourth Quarter Results,” Feb, 1, 2000,

found at Internet address http://today.newscast.com, retrieved Apr. 27, 2000.

 

20 Case has a joint venture in Uzbekistan with Tashselmash, a local farm equipment manufacturer, and

Uzselkhozmash Holdings, a state farm equipment association, for the production of combine grain headers and

cotton pickers. 

11-9

Corp. (Case), and Netherlands-based New Holland finalized their merger in November 1999 to become

CNH Global NV. Although major producers of farm equipment maintained production facilities throughout

the world, changes in worldwide demand prompted shifts in both U.S. and foreign production to

accommodate current market weakness and anticipated growth opportunities. Case closed its Ontario and

Minnesota manufacturing plants and moved operations to Kansas, Illinois, and North Dakota. Deere & Co.

(Deere), sought to limit production through an early retirement program and summertime shutdown of its

manufacturing facilities. However, Deere increased its investment in a Brazilian manufacturer (SLC-John

Deere) of combines, tractors, and planters and continued plans for a joint venture in India for the

production of tractors. AGCO Corp. (AGCO), closed factories in Ohio and Texas and relocated production

to Kansas, Iowa, and France. German producer Claas and U.S.-owned Caterpillar are jointly building a

combine harvester factory in Nebraska; production is scheduled to begin by the end of 2001.

U.S. exports

U.S. exports of farm equipment decreased by $1.0 billion (19 percent) in 1999 to $4.5 billion. The

reduction in exports to the five leading markets, Canada, Australia, Argentina, Brazil, and Ukraine,

accounted for 76 percent of the overall decline in U.S. exports of farm equipment. Major U.S. producers

cited weakness in agricultural commodity prices and lingering effects from financial crisis in some markets,

such as the devaluation of the Brazilian real in January 1999, as factors that contributed to decreased

demand. For example, AGCO reported declining retail activity in Latin American markets largely due to

inflationary pressures and increased input costs for farmers in Brazil, and to economic recession, lower

commodity prices, and tightening credit in Argentina.17

Products such as tractors and combines led the decline of U.S. exports of farm equipment. U.S.

exports of tractors decreased by $593 million (34 percent) to $1.2 billion, while exports of combines fell by

$262 million (48 percent) to $289 million. AGCO, CNH, and Deere all reported decreased tractor and

combine sales worldwide, consistent with ongoing market weakness.18 Generally, markets in North

America, Europe, and Latin America experienced growth in tractors under 40 horsepower, which was more

than offset by lower sales of higher-priced row-crop tractors and combines.19 Despite recording export

declines during 1999, leading markets for U.S.-manufactured tractors continued to be Canada, Germany,

and Australia; however the United Kingdom, Japan, China, and India all recorded significant increases in

tractor imports from the United States. Canada, Australia, and Uzbekistan20 together accounted for 66

percent of U.S. exports of combines.
11-10

Of the top ten leading markets for U.S. exports of farm equipment, the Netherlands, the United

Kingdom, Japan, and France registered export growth of $37.1 million (59 percent), $19.3 million

(10 percent), $8.6 million (9 percent), and $743,000 (less than 1 percent), respectively. Exports to these

countries largely consisted of mowers and tractors. Industry reports indicated that Europe and Asia were

relatively stronger markets for agricultural equipment in 1999 than were North America and Latin

America.

Tracy Quilter

(202) 205-3437

tquilter@usitc.gov

Dennis Fravel

(202) 205-3404

fravel@usitc.gov
Table 11-5

Machinery sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from

1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

See footnote(s) at end of table.

11-11

MM068 Wiring harnesses for motor vehicles:

Exports .............................. 1,315 993 -322 -24.5

Imports .............................. 4,408 4,868 460 10.4

Trade balance ......................... -3,092 -3,875 -782 -25.3

MM069 Pumps for motor vehicles:

Exports .............................. 556 546 -11 -1.9

Imports .............................. 780 776 -4 -0.5

Trade balance ......................... -223 -230 -7 -3.1

MM070 Pumps for liquids:

Exports .............................. 2,340 2,325 -14 -0.6

Imports .............................. 1,587 1,643 56 3.5

Trade balance ......................... 753 683 -70 -9.3

MM071 Air-conditioning equipment and parts:

Exports .............................. 5,471 5,641 170 3.1

Imports .............................. 4,945 5,604 659 13.3

Trade balance ......................... 526 37 -488 -92.9

MM072 Industrial thermal-processing equipment and

 furnaces:

Exports .............................. 2,352 2,292 -60 -2.6

Imports .............................. 1,351 1,483 132 9.8

Trade balance ......................... 1,001 809 -192 -19.2

MM073 Household appliances, including commercial

 applications:

Exports .............................. 5,895 5,524 -371 -6.3

Imports .............................. 6,608 7,302 694 10.5

Trade balance ......................... -713 -1,778 -1,065 -149.3

MM074 Centrifuges and filtering and purifying equipment:

Exports .............................. 2,431 2,564 133 5.5

Imports .............................. 1,442 1,783 341 23.7

Trade balance ......................... 988 781 -208 -21.0

MM075 Wrapping, packaging, and can-sealing

 machinery:

Exports .............................. 791 766 -25 -3.2

Imports .............................. 1,072 1,117 45 4.2

Trade balance ......................... -281 -351 -71 -25.2

MM076 Scales and weighing machinery:

Exports .............................. 147 145 -2 -1.4

Imports .............................. 223 265 43 19.1

Trade balance ......................... -76 -121 -45 -59.0

MM077 Mineral processing machinery:

Exports .............................. 764 590 -174 -22.8

Imports .............................. 574 667 93 16.2

Trade balance ......................... 189 -78 -267 (

3

)

MM078 Farm and garden machinery and equipment:

Exports .............................. 5,581 4,536 -1,045 -18.7

Imports .............................. 4,171 3,294 -877 -21.0

Trade balance ......................... 1,410 1,242 -168 -11.9

MM079 Industrial food-processing and related machinery:

Exports .............................. 688 611 -77 -11.2

Imports .............................. 619 621 2 0.3

Trade balance ......................... 70 -9 -79 (

3

)
Table 11-5

Machinery sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from

1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

See footnote(s) at end of table.

11-12

MM080 Pulp, paper, and paperboard machinery:

Exports .............................. 809 738 -71 -8.8

Imports .............................. 1,037 1,003 -34 -3.3

Trade balance ......................... -227 -264 -37 -16.2

MM081 Printing and related machinery:

Exports .............................. 1,455 1,347 -108 -7.4

Imports .............................. 2,231 2,304 73 3.3

Trade balance ......................... -776 -958 -181 -23.3

MM082 Textile machinery:

Exports .............................. 760 682 -78 -10.3

Imports .............................. 1,958 1,490 -468 -23.9

Trade balance ......................... -1,198 -808 390 32.6

MM083 Metal rolling mills:

Exports .............................. 252 153 -98 -39.1

Imports .............................. 514 321 -193 -37.5

Trade balance ......................... -262 -168 94 35.9

MM084 Metal cutting machine tools and machine tool

 accessories:

Exports .............................. 1,985 1,773 -212 -10.7

Imports .............................. 4,590 3,921 -669 -14.6

Trade balance ......................... -2,605 -2,148 457 17.5

MM085 Metal forming machine tools:

Exports .............................. 996 947 -49 -4.9

Imports .............................. 1,409 1,312 -97 -6.9

Trade balance ......................... -413 -365 49 11.7

MM086 Non-metalworking machine tools:

Exports .............................. 617 792 175 28.4

Imports .............................. 1,229 1,318 89 7.2

Trade balance ......................... -612 -526 86 14.0

MM087 Semiconductor manufacturing equipment and

 robotics:

Exports .............................. 7,965 7,986 20 0.3

Imports .............................. 2,809 3,123 315 11.2

Trade balance ......................... 5,157 4,862 -294 -5.7

MM088 Taps, cocks, valves, and similar devices:

Exports .............................. 2,836 2,959 123 4.4

Imports .............................. 3,974 4,335 361 9.1

Trade balance ......................... -1,138 -1,376 -237 -20.8

MM089 Mechanical power transmission equipment:

Exports .............................. 1,011 942 -69 -6.8

Imports .............................. 1,843 2,008 165 8.9

Trade balance ......................... -832 -1,066 -234 -28.1

MM090 Boilers, turbines, and related machinery:

Exports .............................. 1,495 1,290 -205 -13.7

Imports .............................. 370 484 114 30.7

Trade balance ......................... 1,125 806 -319 -28.4

MM091 Electric motors, generators, and related

 equipment:

Exports .............................. 3,955 3,728 -227 -5.7

Imports .............................. 4,748 6,089 1,341 28.2

Trade balance ......................... -793 -2,362 -1,569 -197.8
Table 11-5

Machinery sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from

1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

11-13

MM092 Electrical transformers, static converters, and

 inductors:

Exports .............................. 2,304 2,379 75 3.2

Imports .............................. 4,485 4,950 465 10.4

Trade balance ......................... -2,181 -2,571 -391 -17.9

MM093 Portable electric handtools:

Exports .............................. 383 392 9 2.4

Imports .............................. 834 992 158 19.0

Trade balance ......................... -451 -600 -149 -33.1

MM094 Nonelectrically powered handtools and parts

 thereof:

Exports .............................. 553 537 -15 -2.8

Imports .............................. 782 890 108 13.8

Trade balance ......................... -230 -353 -123 -53.6

MM095 Electric lamps (bulbs) and portable electric lights:

Exports .............................. 896 894 -2 -0.3

Imports .............................. 1,287 1,454 168 13.0

Trade balance ......................... -391 -561 -170 -43.5

MM096 Welding and soldering equipment:

Exports .............................. 810 989 180 22.2

Imports .............................. 781 702 -79 -10.1

Trade balance ......................... 29 287 258 884.7

MM097 Nonautomotive insulated electrical wire and

 related products:

Exports .............................. 2,950 3,102 152 5.2

Imports .............................. 2,814 3,078 264 9.4

Trade balance ......................... 135 24 -111 -82.4

MM098 Miscellaneous machinery:

Exports .............................. 5,750 6,843 1,093 19.0

Imports .............................. 5,941 6,220 280 4.7

Trade balance ......................... -190 623 814 (

3

)

MM099 Molds and molding machinery:

Exports .............................. 1,896 1,879 -17 -0.9

Imports .............................. 3,512 3,723 210 6.0

Trade balance ......................... -1,617 -1,844 -227 -14.1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

2

 This coding system is used by the U.S. International Trade Commission to identify major groupings of HTS

import and export items for trade monitoring purposes.

3

 Not meaningful for purposes of comparison.

Note.--Calculations based on unrounded data.

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

12-1

,,,,,,,,,,,,,,,,

CHAPTER 12

Transportation Equipment

James M. Brandon, Coordinator

(202) 205-3433

brandon@usitc.gov

The U.S. trade deficit in the transportation equipment sector expanded significantly in 1999, rising

by $31.4 billion (120 percent) to $57.7 billion (table 12-1). The industry/commodity groups largely

responsible for the widening deficit were motor vehicles, whose trade deficit increased by $20.3 billion (26

percent) to $97.6 billion, and internal combustion piston engines, other than for aircraft (hereafter internal

combustion piston engines), whose deficit rose by $1.1 billion (231 percent) to $1.5 billion. Also

contributing to the sector deficit was a $2.7-billion (37-percent) decline in the trade surplus of certain

motor-vehicle parts (hereafter vehicle parts), which fell to $4.6 billion during the period.

The expanding trade deficit in transportation equipment reflected substantial growth in sector

imports, which rose by $29.7 billion (17 percent) to $203.7 billion in 1999. The industry/commodity

groups with the leading import increases are shown in table 12-2. The aggregate import value of the top

three product groups accounted for 77 percent of all transportation equipment imported into the United

States during the period. U.S. exports of transportation equipment fell sightly in 1999, declining by

$1.7 billion (1 percent) to $145.9 billion. The largest export declines were recorded in aircraft, spacecraft,

and related equipment (hereafter aircraft), which dropped by $2.5 billion (5 percent) to $47.8 billion, and

construction and mining equipment, which declined by $2.3 billion (21 percent) to $8.6 billion. In the

aggregate, these exports represented almost 39 percent of all sector exports during the period. The drop in

exports of aircraft, occurred during a period when the bulk of U.S. production was being delivered to

domestic consumers. The decline in U.S. exports of construction and mining equipment was largely a

reflection of recessionary conditions in Venezuela and the postponement and downsizing of construction

and mining projects in Canada. Trade statistics for all commodity/industry groups in the transportation

equipment sector are presented in table 12-3 at the end of this chapter.

U.S. BILATERAL TRADE

The principal U.S. trade partners in the transportation equipment sector during 1999 continued to

be Canada, Japan, Mexico, Germany, the United Kingdom, and France. U.S. exports to Canada, the largest

export market, accounted for $48.1 billion (33 percent) of U.S. transportation equipment exports in 1999,

followed by Mexico, which received $11.6 billion (8 percent) of sector exports. The United Kingdom,

Japan, Germany, and Saudi Arabia were the leading markets for U.S. exports of aircraft. Together, those

countries accounted for 35 percent of all exports. With respect to construction and mining equipment,

Canada remained the principal U.S. export market, representing 15 percent of sector exports. 
12-2

Table 12-1

Transportation equipment: U.S. exports of domestic merchandise, imports for consumption, and

merchandise trade balance, by selected countries and country groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,

Item 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––– Million dollars ––––––––

U.S. exports of domestic merchandise:

Canada ..................................... 44,046 48,147 4,101 9.3

Japan ....................................... 9,319 8,469 -851 -9.1

Mexico ...................................... 11,422 11,574 152 1.3

Germany .................................... 6,688 6,553 -136 -2.0

United Kingdom ............................... 9,842 10,313 471 4.8

France ...................................... 4,833 5,740 907 18.8

Korea ....................................... 2,564 2,666 101 3.9

Brazil ....................................... 2,869 2,510 -358 -12.5

Sweden ..................................... 1,047 1,639 592 56.6

China ....................................... 3,991 2,889 -1,102 -27.6

All other ..................................... 51,016 45,438 -5,579 -10.9

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 147,639 145,937 -1,702 -1.2

EU-15 ...................................... 32,639 36,909 4,270 13.1

OPEC ...................................... 10,815 7,516 -3,299 -30.5

Latin America ................................. 21,991 20,012 -1,979 -9.0

CBERA ..................................... 1,864 1,715 -149 -8.0

Asia ........................................ 27,607 22,956 -4,651 -16.8

Sub-Saharan Africa ............................ 2,186 1,700 -485 -22.2

Central and Eastern Europe ...................... 452 434 -17 -3.8

U.S. imports for consumption:

Canada ..................................... 57,174 68,522 11,348 19.8

Japan ....................................... 43,333 49,436 6,103 14.1

Mexico ...................................... 20,820 24,822 4,003 19.2

Germany .................................... 17,594 21,234 3,640 20.7

United Kingdom ............................... 9,020 9,687 667 7.4

France ...................................... 6,867 7,801 934 13.6

Korea ....................................... 2,694 4,094 1,401 52.0

Brazil ....................................... 2,049 2,477 428 20.9

Sweden ..................................... 3,098 2,928 -169 -5.5

China ....................................... 942 1,222 280 29.8

All other ..................................... 10,351 11,437 1,087 10.5

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 173,941 203,661 29,720 17.1

EU-15 ...................................... 42,207 47,913 5,707 13.5

OPEC ...................................... 318 351 32 10.1

Latin America ................................. 23,161 27,629 4,467 19.3

CBERA ..................................... 42 50 8 18.3

Asia ........................................ 49,185 57,115 7,931 16.1

Sub-Saharan Africa ............................ 105 201 96 92.0

Central and Eastern Europe ...................... 351 397 46 13.2

U.S. merchandise trade balance:

Canada ..................................... -13,128 -20,375 -7,247 -55.2

Japan ....................................... -34,014 -40,967 -6,953 -20.4

Mexico ...................................... -9,397 -13,248 -3,851 -41.0

Germany .................................... -10,905 -14,682 -3,776 -34.6

United Kingdom ............................... 822 626 -196 -23.9

France ...................................... -2,034 -2,061 -27 -1.3

Korea ....................................... -129 -1,429 -1,299 -1,003.6

Brazil ....................................... 820 33 -786 -95.9

Sweden ..................................... -2,051 -1,289 762 37.1

China ....................................... 3,049 1,667 -1,382 -45.3

All other ..................................... 40,666 34,000 -6,665 -16.4

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... -26,302 -57,724 -31,422 -119.5

EU-15 ...................................... -9,567 -11,004 -1,437 -15.0

OPEC ...................................... 10,496 7,165 -3,331 -31.7

Latin America ................................. -1,170 -7,617 -6,447 -550.9

CBERA ..................................... 1,822 1,665 -156 -8.6

Asia ........................................ -21,578 -34,159 -12,582 -58.3

Sub-Saharan Africa ............................ 2,081 1,500 -581 -27.9

Central and Eastern Europe ...................... 101 37 -63 -63.0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

Note.--Calculations based on unrounded data. The countries shown are those with the largest total U.S. trade (U.S.

imports plus exports) in these products in 1999.

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

1

 This product grouping includes automobiles, trucks, buses, and bodies and chassis of the foregoing.

12-3

Table 12-2

Leading increases in U.S. imports of transportation equipment, 1998 and 1999

Change, 1999 from 1998

Sector/commodity 1998 1999 Absolute Percent

––––––––––– Million dollars –––––––––

Motor vehicles (ET009) ......................... 99,826 119,663 19,837 20

Certain motor-vehicles parts (ET010) ............... 18,767 22,725 3,958 21

Internal combustion piston engines, other than for 

 aircraft (ET002) ............................. 11,478 14,052 2,584 22

Aircraft, spacecraft, related equipment (ET013) ....... 12,748 14,592 1,843 15

All other .................................... 31,122 32,629 1,507 5

 Total ................................... 173,941 203,661 29,720 17

Note.--Calculations based on unrounded data.

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

Of the principal U.S. trade partners, Canada was also the largest recipient of all U.S. exports of

transportation equipment. Those exports rose by $4.1 billion (9 percent) to $48.1 billion in 1999. The other

noteworthy trade shift reflected exports to France, which increased by $907 million (19 percent) to $5.7

billion during the period. Declines were recorded in U.S. exports to both Japan and Germany. Exports to

those countries fell by $851 million (9 percent) to $8.5 billion and $136 million (2 percent) to $6.6 billion,

respectively.

With respect to U.S. imports of transportation equipment, Canada and Japan remained the leading

foreign suppliers of transportation equipment, accounting for $68.5 billion (34 percent) and $49.4 billion

(24 percent) of sector imports, respectively. Imports from Canada rose by $11.3 billion (20 percent) to

$68.5 billion, whereas imports from Japan rose by $6.1 billion (14 percent) to $49.4 billion in 1999. In the

aggregate, motor vehicles, aircraft, and vehicle parts represented $97.1 billion (67 percent) of sector

exports and $157.0 billion (77 percent) of sector imports in 1999. Canada and Japan were the leading

sources of motor vehicles, and accounted for 40 percent and 27 percent, respectively, of these imports.

Increasing integration and rationalization of U.S. automotive production under the North American Free

Trade Agreement (NAFTA) and the growing popularity of foreign automotive models, both by consumers

and U.S. producers who rely on them to supplement U.S. automotive production, contributed to the

significant rise in U.S. imports of motor vehicles in 1999. The prevailing strength of the U.S. automotive

industry also enhanced the value of imports of vehicle parts and internal combustion piston engines.

COMMODITY ANALYSIS

Motor vehicles1

The U.S. trade deficit for motor vehicles grew by $20.3 billion (26 percent) to $97.6 billion in

1999. The growth in this deficit was almost entirely attributable to an increase in imports. The U.S. deficit

with Canada, Japan, and Mexico accounted for 33 percent, 32 percent, and 14 percent, respectively, of the

overall U.S. trade deficit for this product group. Despite the fact that the United States maintains a trade

deficit in motor vehicles, traditional U.S. producers General Motors (GM), Ford, and the Chrysler Division
 

2

 David C. Smith, “The Race for First Place,” Ward’s Auto World, Mar. 2000, p. 73.

 

3

 Ralph W. Morris, “Motor Vehicles, 1999,” Survey of Current Business, Feb. 2000, p. 7.

 

4

 See ch. 2 for a general discussion about U.S. and international macroeconomic conditions that influence U.S.

merchandise trade performance in 1999.

 

5

 Bill Vlasic and Mark Truby, “1999 Car Sales Hit All-Time High: Economy, Rebates Drive Historic Year,”

The Detroit News via Proquest, Jan. 6, 2000.

 

6

 “World Vehicle Output Tops 52 Million in 1999,” Ward’s Automotive Reports, Apr. 3, 2000, p. 2.

12-4

of DaimlerChrysler (DC) are among the leading producers in the world. Vehicles produced almost entirely

in North America by GM, Ford, and Chrysler accounted for nearly 70 percent of the U.S. market for cars

and trucks in 1999.2 The persistent trade deficit can be attributed to the strategies of GM and Ford to

produce in foreign markets instead of relying on exports from the United States; the increasing integration

and rationalization of automotive production in the NAFTA region; and the popularity of foreign models

that are produced overseas, or whose U.S. production is supplemented by imports.

U.S. imports

U.S. motor vehicle imports increased by $19.8 billion (20 percent) to $119.7 billion in 1999.

Canada continued to be the largest import source, accounting for 39 percent of all such U.S. imports, while

Japan accounted for 27 percent of these imports, and Mexico for 13 percent. U.S. retail sales of new motor

vehicles reached an unprecedented 17.4 million units in 1999; the previous record was set in 1986 at 16.3

million. This was a 9-percent increase over sales in 1998.3 The continuing strength of the U.S. economy4

contributed to record vehicle sales, along with low interest rates, cut-rate incentives, and strong competition

among vehicle makers that kept prices in check.5

From Canada, U.S. imports rose by $8.9 billion (24 percent) to $46.6 billion in 1999. The U.S.-

Canadian automobile industry is fully integrated. GM, Ford, and DC consider the United States and

Canada as a single unit for production planning purposes, and dominate Canadian motor vehicle

production. Owing to booming markets in the United States and Canada, vehicle production in Canada

increased over 18 percent in 1999 to a record 3 million units.6

U.S. imports from Japan increased by $3.3 billion (11 percent) to $32.1 billion in 1999. The weak

market in Japan for motor vehicles combined with a robust U.S. market and sustained popularity of certain

Japanese makes in the U.S. market contributed to the surge in Japanese exports to the United States.

From Mexico, U.S. imports increased by $2.6 billion (20 percent) to $15.8 billion. Similarly U.S.

motor vehicle imports from Germany increased $2.6 billion (21 percent) to $15.1 billion in 1999. Rising

imports from Mexico can be attributed to the increasing integration, interdependence, and rationalization of

the U.S. and Mexican automotive industries; increased motor vehicle production in Mexico, which was up

by 5 percent in 1999 to 1.5 million units; and continued strong motor vehicle demand in the United States.

The trend in increased imports from Germany in recent years results from robust demand in the United

States for motor vehicles in general, and German luxury makes in particular.

Laura Polly

(202) 205-3408

polly@usitc.gov
 

7

 Parts for civil aircraft and parts for military aircraft do not include propellers, rotors, undercarriages, and parts

thereof.

 

8

 This category of aircraft includes LCA, which typically have more than 100 seats and are used for passenger

transport.

12-5

Aircraft, Spacecraft, and Related Equipment

The U.S. trade surplus for aircraft, spacecraft, and related equipment (hereafter aircraft) decreased

by $4.3 billion (12 percent) to $33.2 billion in 1999. U.S. exports of these products declined by $2.5

billion, while U.S. imports grew by $1.8 billion. The United States remained the world’s largest producer

of aircraft in 1999; however, this is the first decline in the U.S. balance of trade in aircraft in 4 years. The

global need to replace aging large civil aircraft (LCA), the world airlines’ need to bolster a second

producer, and a strong demand for additional passenger service in the United States and Western Europe

have driven shipments of LCA to record highs. At the same time, new types of smaller turbofan aircraft

have created new market niches and made inroads on routes dominated by turbopropeller aircraft.

U.S. exports

U.S. exports of aircraft fell by $2.5 billion (5 percent) during 1999 to $47.8 billion. The majority

of this decrease came from U.S. exports of new nonmilitary passenger transports over 15,000 kilograms

(kg), which declined by $4.0 billion (14 percent) to $23.7 billion. Both Boeing and Airbus Industrie, G.I.E.,

(Airbus) delivered record numbers of LCA in 1999. However, Boeing’s deliveries were primarily to the

domestic U.S. market, a change from past years’ sales patterns.

U.S. exports of parts for civil aircraft7 grew by $407 million (3 percent) to $13.2 billion. The rise

in such exports reflected the increased demand of foreign aircraft manufacturers to meet their increased

production demands and increased utilization of existing aircraft which led to the need for additional

maintenance on these aircraft. Other parts exports also increased, including propellers and rotors, which

grew by $26 million (4 percent) to $623 million, and undercarriages and parts thereof, which grew by $254

million (57 percent) to $698 million.

The United Kingdom, France, and Japan were the top three export markets for aircraft. Principal

exports to the United Kingdom included new large civil transport aircraft over 15,000 kg ($3.5 billion, a 5-

percent decline from 1998), parts for civil aircraft ($1.1 billion, an 11-percent increase over 1998), and

new military cargo transport aircraft over 15,000 kg ($453 million, a 9-percent decline from 1998). U.S.

exports of aircraft to France primarily consisted of new large civil transport aircraft over 15,000 kg

($1.1 billion, a 68 percent rise over 1998), parts for civil aircraft ($909 million, a 16-percent rise), and

parts for military aircraft ($129 million, a 74-percent rise). Principal U.S. exports to Japan included new

large civil transport aircraft over 15,000 kg ($2.2 billion, a 24 percent decline over 1998), parts for civil

aircraft ($1.2 billion, a 12-percent rise), and parts for military aircraft ($585 million, a 6-percent decline).

U.S. imports

U.S. imports of aircraft increased by $1.8 billion (14 percent) during 1999 to $14.6 billion.

Significant increases in U.S. imports in two areas accounted for the majority of this growth. These areas

included new nonmilitary passenger transport aircraft exceeding 15,000 kg ($3.0 billion, or 51 percent),8

and new nonmilitary turbofan aircraft exceeding 4,356 kg but less than 15,000 kg ($3.9 billion, or

36 percent). The growth in these imports was a direct result of the need to modernize the aging U.S. fleet of

LCA and the strong demand for regional jet versus turboprop aircraft service.
 

9

 Routes which have a small but consistent customer base separated by a great distance. Such a market will not

support the use of large, long-range aircraft, but can be profitable with smaller, long-range aircraft. As these

markets are not the predominant ones served by airlines, airframe manufacturers have not given them equal

attention with the more established airline markets.

 

10 Products contained in this group include body stampings, bumpers, brakes and parts, gear boxes, axles,

wheels, shock absorbers, radiators, exhaust systems, clutches, steering wheels, and miscellaneous parts and

accessories.

 

11 “Light Vehicle Production (Millions), Plant Capacity Use (PCU), SIC 3711 Tot. Employment (1000s),” U.S.

Department of Commerce (USDOC), Office of Automotive Affairs, found at Internet address

http://www.ita.doc.gov/td/auto/qfact.html, retrieved May 2, 2000.

12-6

The Boeing-McDonnell Douglas merger in 1997 cast uncertainty over the future of both

production and support of McDonnell Douglas aircraft. Additionally, airlines indicated a desire to maintain

two healthy large civil aircraft manufacturers. Both of these developments augured well for increased

purchases of West European-made Airbus aircraft, the only other large civil aircraft manufacturer in the

world that competes with Boeing.

The regional jet phenomenon continued to gain momentum in 1999. Originally conceived by the

manufacturers as a marketing tool to lure passengers from airlines using turboprop aircraft, regional jets

are increasingly being used for new service on “long-thin” routes,9 or to increase a carriers’ departure

frequency between two airports, thus increasing service. The United States did not produce regional jet

aircraft in 1999; hence, all such aircraft were of foreign manufacture.

The United Kingdom, France, and Japan were the principal U.S. trade partners in 1999. Shipments

from the United Kingdom totaled $1.4 billion, and consisted primarily of parts for civil aircraft ($610

million, an increase of 15 percent over the 1998 level) and new civil transport aircraft over 15,000 kg

($239 million, an increase of 13 percent over the 1998 level). U.S. imports from France amounted to $3.5

billion (21-percent increase) in 1999. Principal imports were new large civil transport aircraft over 15,000

kg ($1.2 billion, a 21-percent rise over 1998) and new nonmilitary turbofan-powered aircraft exceeding

4,536 kg but not exceeding 15,000 kg. These aircraft are primarily business jet aircraft. Ninety-eight

percent of all U.S. imports from Japan were accounted for by the imports of parts for civil aircraft. This

amounted to $1.3 billion in 1999, an increase of less than 0.5 percent over the 1998 level.

Peder Andersen

(202) 205-3388

anderson@usitc.gov

Certain Motor-Vehicle Parts10

The U.S. trade surplus in certain motor-vehicle parts (hereafter vehicle parts) continued its decline,

falling by nearly $2.7 billion (37 percent) to $4.6 billion in 1999. The growth in the value of U.S. imports

outperformed that of U.S. exports, driving the surplus decline. The strong U.S. motor vehicle market

continued to support automotive components demand, as production of passenger cars and light trucks

exceeded 11.5 million units for the sixth consecutive year.11 As part of the larger automotive industry, trade

shifts in vehicle parts generally reflect global production/sourcing strategies, intracompany shipments, and

increased globalization of U.S. and foreign automotive firms.
 

12 Peter Homola, “Steyr Plant Starts Cherokee Production,” Ward’s Automotive International, Mar. 1999, pp. 1,

and 12.

 

13 Information from Scotia Economics Canadian Auto Report (dated Feb. 25, 1999) as reported in “Canadian

Auto Part Suppliers See Large Gains,” The Autoparts Report, Mar. 12, 1999.

 

14 Investment in the Mexican automotive sector has been estimated at roughly $4 billion during 1994-97. An

additional $10 billion was expected to be invested through 2000. Joel Millman, “Mexico Becomes a Leader in Car

Parts,” The Wall Street Journal, Mar. 30, 1999, p. A21.

 

15 Ibid.

12-7

U.S. exports

The value of U.S. exports of vehicle parts rose by $1.3 billion (5 percent) to $27.3 billion in 1999.

NAFTA partners Canada and Mexico accounted for 78 percent of all U.S. exports of these parts. Canada

remained the leading U.S. export market for vehicle parts, accounting for 59 percent of such exports in

1999. U.S. exports to Canada rose by $1.9 billion (13 percent) to $16.2 billion. Principal exports included

miscellaneous parts and accessories for motor vehicles ($4.2 billion), miscellaneous parts and accessories

of vehicle bodies ($3.9 billion), and gearboxes and parts thereof ($1.9 billion). Exports to Mexico increased

by $185 million (4 percent) to $5.1 billion, and represented 19 percent of U.S. exports of motor vehicle

parts in 1999. Leading export categories included miscellaneous parts and accessories for motor vehicles

($2.2 billion) and miscellaneous parts and accessories of vehicle bodies ($1.5 billion).

Austria emerged as the third-leading export market in 1999, accounting for $1.1 billion 

(4 percent) of all U.S. exports. Austria is the European assembly base for the new Jeep Grand Cherokee

and Mercedes M-Class, both of which began production in the first half of 1999. The M-Class, in

particular, incorporates a large share of U.S. vehicle parts, many of which are produced at Mercedes’s MClass plant in Alabama.12

U.S. imports

The value of U.S. imports of vehicle parts rose by nearly $4.0 billion (21 percent) to $22.7 billion

in 1999, with 76 percent ($17.3 billion) of these imports supplied by Canada, Japan, and Mexico. U.S.

imports from Canada, the leading U.S. supplier, grew by $1.4 billion (19 percent) to 

$9.0 billion in 1999. Canadian suppliers’ greater competitiveness, increased outsourcing by motor vehicle

manufacturers, and the shift to higher valued modules and automotive systems have benefitted the

Canadian components industry.13 Leading components imported from Canada include miscellaneous vehicle

body parts and accessories, such as truck caps and sunroofs (up 24 percent to $2.3 billion); other

miscellaneous parts and accessories of motor vehicles (up 18 percent to $1.7 billion), and gear boxes for

passenger vehicles (up 50 percent to $935 million).

Japan remained the second-leading source of U.S. automotive parts imports, as the value of

imports increased by $1.1 billion (31 percent) to $4.6 billion in 1999. Japan’s recent economic downturn

and weakened currency contributed to the growth in U.S. imports of automotive parts from Japan. The

leading import categories are gear boxes for passenger vehicles (up 76 percent to $792 million);

miscellaneous vehicle parts (e.g., brake hoses, double flanged wheel hub units, radiator cores), up 

2 percent to $628 million; and miscellaneous power train components, up 25 percent to $567 million.

Imports from Mexico, the third-leading import source, increased by $503 million (16 percent) to

$3.7 billion, in response to its continued integration into the North American motor vehicle community and

extensive investment in the Mexican industry.14 The Mexican automotive parts industry is becoming

increasingly sophisticated, taking on such responsibilities as component design and engineering.15 Leading
 

16 USDOC, Office of Automotive Affairs, “Light Vehicle Production (Millions).”

 

17 Output of the Odyssey at Honda’s Alliston, Ontario plant rose from 12,460 units in 1998 to 100,623 units in

1999, and production of the Chevrolet Silverado at General Motors’s Oshawa, Ontario facility increased from

79,960 units to 231,489 units in the same period. “Ward’s U.S. and Canada Production by Vehicle Line,” Ward’s

Automotive Reports, Jan. 10, 2000, pp. 6-7.

12-8

import categories included miscellaneous vehicle body parts and accessories, such as truck caps and

sunroofs (up 6 percent to $820 million) and safety seat belts (relatively unchanged at $670 million), which

together accounted for 40 percent of U.S. auto parts imports from Mexico in 1999.

Deborah A. McNay

(202) 205-3425

mcnay@usitc.gov

Internal Combustion Piston Engines, Other Than for Aircraft

The U.S. trade deficit in internal combustion piston engines (hereafter internal combustion piston

engines) grew by $1.1 billion (230 percent) to $1.5 billion in 1999. Although U.S. exports increased by 13

percent in 1999, imports of these products increased by a larger margin, particularly from Canada and

Japan. The strength of the U.S. automotive market, which has supported U.S. production in excess of 11.5

million units for 6 consecutive years,16 has generated comparable demand for engines and components. As

part of the larger automotive industry, trade shifts in internal combustion piston engines often reflect U.S.

and foreign automotive firms’ global production/sourcing strategies, intracompany shipments, and

increased internationalization of the industry.

U.S. exports

The value of U.S. exports of internal combustion piston engines rose by $1.5 billion (14 percent) in

1999 to $12.5 billion. Canada was by far the leading U.S. market, accounting for 62 percent of these

exports. Such exports rose by $1.0 billion (15 percent) to $7.7 billion in 1999. The most significant growth

occurred in spark-ignition engines with a capacity greater than 2000 cubic centimeters (cc), which rose by

$748 million (23 percent) to $3.9 billion and accounted for 51 percent of U.S. engine exports to Canada in

1999. Increased Canadian production of certain vehicle models equipped with U.S.-produced engines of

this size, such as the Honda Odyssey and Chevrolet Silverado,17 contributed to this export growth.

Mexico and Japan were leading secondary export markets, accounting for 11 and 4 percent,

respectively, of U.S. piston engine exports in 1999. Exports to Mexico increased by $116 million

(9 percent) to $1.4 billion, and exports to Japan rose by $215 million (73 percent) to $510 million.

U.S. imports

The value of U.S. imports of internal combustion piston engines rose by $2.6 billion (22 percent)

to $14.1 billion in 1999. Japan emerged as the largest U.S. import source, accounting for 33 percent of all

U.S. imports of this product. Imports of internal combustion piston engines from Japan rose by $1.4 billion

(43 percent) to $4.7 billion in 1999. Spark-ignition engines over 2000cc (up 69 percent to $890 million) led

imports from Japan in 1999, as many U.S.-based vehicle manufacturers install Japanese engines of this size
 

18 Canadian Auto Industry--Big Winner Under Free Trade, Scotiabank Economic Report, Mar. 31, 1998; and

Carlos Gomes, “Auto Parts Suppliers--Outsourcing Drives Surge in Canadian Content,” Canadian Auto Report,

Scotia Economics, Feb. 25, 1999.

 

19 “Ford’s Canadian Engine Plant to Expand,” The Autoparts Report, Apr. 19, 1999, pp. 4-5; and “Ford to

Boost Engine Output in Windsor,” Automotive News, Apr. 19, 1999.

 

20 USDOC, International Trade Administration (ITA), “Automotive Original Eq. Manufacturers,” Market

Research Reports, Aug. 1, 1997. 

12-9

in certain motor vehicle models. Imports of spark-ignition engines for machinery and equipment rose by 53

percent ($186 million) to $537 million in 1999.

NAFTA partners Canada and Mexico accounted for 46 percent ($6.5 billion) of the value of all

piston engine imports, in large part reflecting the integration of the North American automotive industry.

Imports from Canada, the second-leading U.S. supplier, increased by $697 million (21 percent) to

$4.0 billion. The improved competitiveness of the Canadian auto parts industry and greater outsourcing by

automakers have contributed to increased Canadian parts purchases.18 The leading import category was

spark-ignition engines over 2000cc, which accounted for 69 percent of engine and parts imports from

Canada in 1999. Imports of these engines rose by 21 percent to $2.8 billion in 1999, in part because of

increased output at Ford’s Windsor, Ontario engine plant to satisfy demand for V8 engines installed in

certain Ford sport utility, truck, and van models assembled in the United States.19

The value of imports of internal combustion piston engines from Mexico grew by $255 million (11

percent) to $2.5 billion in 1999. The Mexican engine and engine parts sector has received significant

investments from foreign automakers and parts producers, and is considered to be a globally competitive

sector.20 Imports of spark-ignition engines over 2000cc, the leading import category, remained relatively

unchanged at $1.2 billion and accounted for nearly one-half of sector imports from Mexico.

Deborah A. McNay

(202) 205-3425

mcnay@usitc.gov

Construction and Mining Equipment

The U.S. trade surplus in construction and mining equipment declined for the second straight year,

falling by over $1.9 billion (41 percent) to $2.7 billion in 1999. The continued decline in the trade surplus

was wholly caused by a sharp decrease in U.S. exports, as U.S. imports of these products declined by $380

million (6 percent) to $5.9 billion in 1999. Japan and the United Kingdom remained the top suppliers to the

United States, accounting for 40 percent of all U.S. imports in this product group.

U.S. exports

Globally, U.S. exports of construction and mining equipment fell by nearly $2.3 billion

(21 percent) to $8.6 billion in 1999, primarily due to a $1.9-billion decrease (40 percent) in exports of parts

for boring and sinking machinery, the primary U.S. export product. Canada remained the largest market,

accounting for over 15 percent of such exports in 1999. Belgium, accounting for almost 8 percent of all

exports, replaced Venezuela as the second-largest market for U.S. exports of construction and mining
 

21 USDOC, ITA, “Venezuela--Macroeconomic Update, August 1999,” Market Research Reports, Sept. 23,

1999, found at Internet address http://www.stat-usa.gov/, retrieved Apr. 28, 2000; and USDOC, ITA“Venezuela--

Oil and Gas Field Machinery/Equipment,” Market Research Reports, July 1, 1999, found at Internet address

http://www.stat-usa.gov/, retrieved Apr. 28, 2000.

 

22 USDOC, ITA, “Venezuela--Macroeconomic Update.” 

 

23 USDOC, ITA, “Venezuela--Mining Equipment,” Market Research Reports, June 1, 1997, found at Internet

address http://www.stat-usa.gov/, retrieved Apr. 28, 2000; and USDOC, ITA, “Venezuela--Construction

Machinery and Equipment,” Market Research Reports, Apr. 1, 1999, found at Internet address http://www.statusa.gov/, retrieved Apr. 28, 2000.

 

24 Ibid.

 

25 Ibid.

 

26 Canadian Construction Association, Construction Fact Sheet, found at Internet address

http://www.cca-acc.com/, retrieved May 2, 2000.

 

27 USDOC, ITA, “Canada--Construction Sector Growth,” Market Research Reports, Mar. 4, 1999, found at

Internet address http://www.stat-usa.gov/, retrieved May 2, 2000.

 

28 USDOC, ITA, “Canada--Underground Mining Equipment,”Market Research Reports, June 1, 1999, found at

Internet address http://www.stat-usa.gov/, retrieved Apr. 28, 2000; and “Canada--Coal Mining on the Rebound,”

Market Research Reports, USDOC, International Trade Administration, Sept. 21, 1999, found at Internet address

http://www.stat-usa.gov/, retrieved Apr. 28, 2000.

12-10

equipment in 1999--the result of a near 50-percent decline in exports to that country and a $179-million

(38-percent) gain in exports to Belgium. Despite the decline, Venezuela absorbed close to 5 percent of U.S.

exports and was the fourth-leading market behind Mexico, which accounted for slightly more than 5

percent of U.S. exports of construction and mining machinery in 1999.

U.S. exports to Venezuela decreased by $394 million (48 percent) to $426 million in 1999. The

majority of U.S. exports to Venezuela are of certain parts for oil and gas field machinery. Exports of such

products, which accounted for over two-thirds of all exports to Venezuela, fell by $314 million (53 percent)

to $284 million in 1999. The decline in exports is largely the result of recessionary conditions in the

Venezuelan oil sector and the economy as a whole. The state-owned oil holding company, Petroleos de

Venezuela S.A., reportedly reduced industry expenditures, and Venezuela has curbed petroleum output to

fulfill commitments made with OPEC producers to cut production in order to increase oil prices.21 In

addition, construction activity has wavered, declining by 22 percent alone in the first half of 1999.22

However, despite the large decline in U.S. exports in these products in 1999, U.S. manufacturers are

dominate in the Venezuelan market for construction and mining equipment. The geographical proximity of

the United States allows for favorable delivery times and freight costs, as well as ease in communications

and service.23 Further, the United States enjoys a reputation for quality and innovation, and Venezuelan

engineers and managers reportedly are familiar with, and prefer, U.S.-produced machines.24 As a result, the

U.S. share of the Venezuelan import market for such products is high--over 90 percent for construction

machinery and roughly 80 percent for mining equipment.25

U.S. exports of construction and mining equipment to Canada decreased by $219 million

(14 percent) to $1.3 billion in 1999. While the Canadian construction market remained relatively strong

during the year, with total 1999 construction expenditures up 6 percent from 1998,26 a number of

construction projects were postponed or downsized during the period.27 Further, depressed world metal and

mineral prices, combined with economic slowdown in key markets for Canadian-mined commodities, had a

negative effect on demand for mining equipment as firms curtailed expansion, cut production, or closed

high-cost mining operations.28 Overall, Canadian imports of construction and mining equipment from all

sources declined in 1999. Nonetheless, the United States remained Canada’s top supplier in this product
 

29 According to Canadian import statistics accessed through Strategis Canada, found at Internet address

http://strategis.ic.gc.ca/sc_mrkti/tdst/engdoc/tr_homep.html, retrieved May 2, 2000.

 

30 Airbus Industrie, G.I.E., deliveries for 1998, 1999, found at Internet address http://www.airbus.com/,

retrieved Apr. 27, 2000.

12-11

sector, accounting for approximately one-half of Canadian imports of construction and mining equipment

in 1999.29

The largest increase in U.S. exports occurred with respect to construction and mining equipment

shipments to Belgium. Such exports grew by $179 million (38 percent) to $654 million in 1999. The

greatest growth occurred in U.S. shipments to Belgium of certain buckets, shovels, grabs, and grips for

various construction and mining machines. Such exports rose by $260 million (513 percent) to

$311 million in 1999, making it the primary export to Belgium among all construction and mining

equipment products. While an improved housing construction market may have contributed to greater

demand for earthmoving equipment in Belgium in 1999, the large increase in exports is most likely the

result of greater shipments of inputs and replacement parts from U.S. construction equipment

manufacturers to their production and distribution facilities in Belgium.

Heidi Colby

(202) 205-3391

hcolby@usitc.gov

Aircraft Engines and Gas Turbines

In 1999, the trade surplus for aircraft engines and gas turbines (hereafter aircraft engines)

improved by $1.2 billion (43 percent) to $3.9 billion in 1999. U.S. exports of these products rose to

$14.2 billion, whereas U.S. imports declined by $76 million (less than 1 percent) during 1999 to

$10.3 billion. Record shipments of foreign aircraft accounted for this growth.

U.S. exports

U.S. exports of aircraft engines grew by $1.1 billion (8 percent) during 1999 to $14.2 billion. The

majority of this increase came from U.S. exports of turbojet engines of a thrust exceeding 25 kilonewtons

(kN), or those used on LCA. Exports of these engines grew by $631 million (24 percent) to $3.3 billion,

reflecting the increased demand of foreign aircraft manufacturers for U.S. engines. Record shipments of

LCA by Airbus Industrie,30 the consortium of West European aerospace companies, likely accounted for

the majority of the increase, as shipments of these engines to France increased by $31.6 million (5 percent)

to $699 million in 1999. 

Gains were also made in U.S. exports of turbine engine parts, which rose by $489 million

(6 percent) to approximately $8.8 billion. These parts accounted for over 61 percent of all U.S. exports of

aircraft engines in 1999. Certain parts specifically for aircraft turbine engines rose by $337 million

(25 percent) to $1.7 billion.

The United Kingdom, France, and Canada were the top three export markets for aircraft engines.

Together, they accounted for nearly $6 billion (42 percent) of all U.S. exports. Each of these nations 
12-12

has a thriving aircraft engine industry, which would be expected to prosper accordingly with the fortunes of

the U.S. and European aircraft manufacturing industries. The rise in U.S. exports of parts also reflects

increased usage of existing aircraft engines.

Peder Andersen

(202) 205-3388

andersen@usitc.gov
Table 12-3

Transportation equipment sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from

1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

See footnote(s) at end of table.

12-13

ET001 Aircraft engines and gas turbines:

Exports .............................. 13,115 14,218 1,103 8.4

Imports .............................. 10,404 10,328 -75 -0.7

Trade balance ......................... 2,711 3,889 1,178 43.5

ET002 Internal combustion piston engines, other than

 for aircraft:

Exports .............................. 11,015 12,522 1,507 13.7

Imports .............................. 11,478 14,052 2,574 22.4

Trade balance ......................... -463 -1,530 -1,067 -230.5

ET003 Forklift trucks and similar industrial vehicles:

Exports .............................. 1,188 1,243 55 4.6

Imports .............................. 1,456 1,527 71 4.9

Trade balance ......................... -268 -284 -16 -5.9

ET004 Construction and mining equipment:

Exports .............................. 10,944 8,646 -2,299 -21.0

Imports .............................. 6,299 5,919 -380 -6.0

Trade balance ......................... 4,645 2,727 -1,919 -41.3

ET005 Ball and rollers bearings:

Exports .............................. 1,141 1,098 -43 -3.8

Imports .............................. 1,719 1,622 -97 -5.7

Trade balance ......................... -578 -524 54 9.4

ET006 Primary cells and batteries and electric storage

 batteries:

Exports .............................. 2,309 2,307 -2 -0.1

Imports .............................. 2,056 2,392 336 16.3

Trade balance ......................... 253 -84 -338 (

3

)

ET007 Ignition, starting, lighting, and other electrical

 equipment:

Exports .............................. 1,725 1,947 222 12.8

Imports .............................. 2,363 2,817 454 19.2

Trade balance ......................... -637 -870 -233 -36.5

ET008 Rail locomotive and rolling stock:

Exports .............................. 1,694 1,558 -136 -8.0

Imports .............................. 2,156 2,307 151 7.0

Trade balance ......................... -462 -749 -287 -62.1

ET009 Motor vehicles:

Exports .............................. 22,522 22,049 -472 -2.1

Imports .............................. 99,826 119,663 19,837 19.9

Trade balance ......................... -77,305 -97,614 -20,309 -26.3

ET010 Certain motor-vehicle parts:

Exports .............................. 25,988 27,281 1,294 5.0

Imports .............................. 18,767 22,725 3,958 21.1

Trade balance ......................... 7,221 4,557 -2,664 -36.9

ET011 Motorcycles, mopeds, and parts:

Exports .............................. 626 468 -158 -25.3

Imports .............................. 1,293 1,755 462 35.7

Trade balance ......................... -667 -1,287 -620 -93.0

ET012 Miscellaneous vehicles and transportation-related

 equipment:

Exports .............................. 2,962 2,762 -200 -6.7

Imports .............................. 1,666 2,060 394 23.6

Trade balance ......................... 1,296 702 -593 -45.8
Table 12-3--Continued 

Transportation equipment sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from

1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

12-14

ET013 Aircraft, spacecraft, and related equipment:

Exports .............................. 50,248 47,762 -2,486 -4.9

Imports .............................. 12,748 14,592 1,843 14.5

Trade balance ......................... 37,500 33,171 -4,329 -11.5

ET014 Ships, tugs, pleasure boats, and similar vessels:

Exports .............................. 1,765 1,682 -83 -4.7

Imports .............................. 1,090 1,246 156 14.3

Trade balance ......................... 675 437 -239 -35.3

ET015 Motors and engines, except internal combustion,

 aircraft, or electric:

Exports .............................. 397 394 -3 -0.8

Imports .............................. 621 658 38 6.0

Trade balance ......................... -223 -264 -41 -18.2

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

2

 This coding system is used by the U.S. International Trade Commission to identify major groupings of HTS

import and export items for trade monitoring purposes.

3

 Not meaningful for purposes of comparison.

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
13-1

,,,,,,,,,,,,,,,,

CHAPTER 13

Electronic Products

John Kitzmiller, Coordinator

(202) 205-3387

kitzmiller@usitc.gov

The U.S. trade deficit in electronic products expanded by $15.8 billion (31 percent) to $66.2 billion

in 1999 as import growth outpaced that of exports (table 13-1). Electronic products continued to be the

largest items of U.S. trade in 1999. Sector imports were $228.5 billion, representing 23 percent of all U.S.

imports, which were $1.0 trillion. Sector exports were $162.2 billion and accounted for 25 percent of all

exports, which reached $642.2 billion in 1999. Within the electronics products sector, the largest items of

trade in 1999 were computers, peripherals, and parts (hereafter computer hardware) and semiconductors

and integrated circuits (hereafter semiconductors). Together, these products accounted for 52 percent of

sector imports and 47 percent of sector exports during 1999, a 1-percent increase in their share of imports

and a 2-percent increase in their share of exports from 1998. 

The trade deficit in computer hardware increased significantly in 1999, by $8.8 billion (26 percent)

to $42.4 billion, largely due to increased imports of lower-priced computers from Mexico and China.

However, the trade deficit in semiconductors decreased by $3.6 billion (87 percent) to $542 million as

exports increased significantly due to greater global demand for noncommodity type semiconductors for

which the United States is a world leader. The global expansion of downstream industries such as

telecommunications equipment and computers has also contributed to increased U.S. exports of

semiconductors. In contrast, however, the expansion of the U.S. telecommunications market has widened

the trade deficit for telephone and telegraph apparatus as strong U.S. demand for products such as parts for

telephonic apparatus and digital cellular telephones has caused rapid import growth. The most significant

shifts in U.S. imports of electronic products occurred in computer hardware, up by $9.0 billion (12

percent) to $81.7 billion; telephone and telegraph apparatus, up by $5.8 billion (40 percent) to $20.1

billion; and semiconductors, up by $4.0 billion (12 percent) to $37.2 billion.

Japan, Singapore, and Taiwan have been the major sources of U.S. computer hardware imports for

each of the last 7 years. A number of factors contributed to the growth of U.S. computer hardware imports

during 1999 including greater Internet usage, the growth of electronic commerce, and the continued

development of intranets by firms. These same factors led to an increase in U.S. imports of telephone and

telegraph apparatus from all major sources in 1999. The expansion of the Internet, electronic commerce,

and intranets have spurred telecommunications carriers to increase investments in both foreign and

domestically produced equipment that can handle the large amounts of data required for these newer

applications. Further, the wireless telecommunications system in the United States is rapidly changing from

analog to digital, causing carriers to build new telecommunications infrastructure, consumers to replace

cellular telephones, and the total number of wireless subscribers to expand as digital technology lowers

prices and creates new services. U.S. imports of semiconductors from each of its principal sources, Korea,

Japan, and Malaysia, increased during 1999. Korea surpassed Japan as the largest supplier of

semiconductors to the U.S. market in 1999 by increasing its shipments to the United States by 27 percent.

The growth of imports from Korea is largely the result of Korea’s increasing concentration on 
13-2

Table 13-1

Electronic products: U.S. exports of domestic merchandise, imports for consumption, and merchandise

trade balance, by selected countries and country groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,

Item 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––– Million dollars ––––––––

U.S. exports of domestic merchandise:

Japan ....................................... 14,752 14,921 169 1.1

Mexico ...................................... 16,917 19,564 2,647 15.6

Canada ..................................... 20,784 22,057 1,273 6.1

Korea ....................................... 5,496 9,193 3,697 67.3

China ....................................... 2,930 2,943 13 0.4

Taiwan ...................................... 4,799 5,253 454 9.5

Malaysia ..................................... 4,976 5,802 826 16.6

Singapore .................................... 6,448 6,712 264 4.1

United Kingdom ............................... 10,126 10,056 -69 -0.7

Germany .................................... 7,380 8,100 720 9.8

All other ..................................... 55,925 57,638 1,713 3.1

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 150,534 162,240 11,706 7.8

EU-15 ...................................... 38,938 40,864 1,926 4.9

OPEC ...................................... 2,431 2,209 -222 -9.1

Latin America ................................. 29,255 31,222 1,968 6.7

CBERA ..................................... 1,899 2,360 461 24.3

Asia ........................................ 50,923 57,306 6,383 12.5

Sub-Saharan Africa ............................ 843 768 -75 -8.9

Central and Eastern Europe ...................... 806 841 34 4.3

U.S. imports for consumption:

Japan ....................................... 40,809 44,018 3,210 7.9

Mexico ...................................... 23,222 28,793 5,571 24.0

Canada ..................................... 13,101 14,609 1,508 11.5

Korea ....................................... 11,154 16,100 4,946 44.3

China ....................................... 17,313 20,917 3,604 20.8

Taiwan ...................................... 17,007 18,399 1,392 8.2

Malaysia ..................................... 14,515 16,953 2,438 16.8

Singapore .................................... 15,404 14,916 -488 -3.2

United Kingdom ............................... 5,505 5,970 465 8.4

Germany .................................... 5,771 6,572 802 13.9

All other ..................................... 37,123 41,221 4,098 11.0

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 200,924 228,469 27,545 13.7

EU-15 ...................................... 22,531 24,822 2,291 10.2

OPEC ...................................... 1,950 2,094 144 7.4

Latin America ................................. 25,179 31,867 6,688 26.6

CBERA ..................................... 1,371 2,496 1,126 82.1

Asia ........................................ 134,164 150,028 15,864 11.8

Sub-Saharan Africa ............................ 35 56 21 61.1

Central and Eastern Europe ...................... 1,065 1,449 383 36.0

U.S. merchandise trade balance:

Japan ....................................... -26,056 -29,097 -3,041 -11.7

Mexico ...................................... -6,305 -9,229 -2,923 -46.4

Canada ..................................... 7,683 7,448 -235 -3.1

Korea ....................................... -5,658 -6,907 -1,249 -22.1

China ....................................... -14,383 -17,974 -3,591 -25.0

Taiwan ...................................... -12,207 -13,146 -939 -7.7

Malaysia ..................................... -9,539 -11,151 -1,612 -16.9

Singapore .................................... -8,956 -8,204 751 8.4

United Kingdom ............................... 4,620 4,086 -534 -11.6

Germany .................................... 1,609 1,528 -82 -5.1

All other ..................................... 18,802 16,417 -2,385 -12.7

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... -50,390 -66,230 -15,840 -31.4

EU-15 ...................................... 16,406 16,042 -365 -2.2

OPEC ...................................... 482 116 -366 -76.0

Latin America ................................. 4,076 -644 -4,720 (

2

)

CBERA ..................................... 528 -136 -665 (

2

)

Asia ........................................ -83,242 -92,722 -9,481 -11.4

Sub-Saharan Africa ............................ 808 712 -97 -12.0

Central and Eastern Europe ...................... -259 -608 -349 -134.7

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

 

2

 Not meaningful for purposes of comparison.

Note.--Calculations based on unrounded data. The countries shown are those with the largest total U.S. trade (U.S.

imports plus exports) in these products in 1999.

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

1

 See ch. 2 for a general discussion about U.S. and international macroeconomic conditions that influenced U.S.

merchandise trade performance in 1999.

13-3

nonmemory chips that are in great demand by the U.S. telecommunications, motor vehicle, and computer

industries. 

The largest U.S. export shifts were in semiconductors, which increased by $7.6 billion (26 percent)

to $36.6 billion, and in radio and television broadcasting equipment, which increased by $944 million (68

percent) to $2.3 billion. U.S. exports of semiconductors to each of its principal markets, Korea, Malaysia,

and the Philippines, grew significantly in 1999. Exports to Korea accounted for the largest share of this

growth, increasing by $2.4 billion (76 percent) to $5.6 billion in 1999. U.S. semiconductor exports to

Malaysia and the Philippines generally consist of unfinished products that are assembled and tested in those

countries, then returned to the United States or exported elsewhere, whereas many U.S. sector exports are

consumed in Korea. The principal markets for U.S. exports of radio and television broadcasting equipment

were Canada, Mexico, and Japan. U.S. exports to Canada increased 119 percent in 1999 while exports to

Mexico and Japan increased by 191 percent and 162 percent, respectively. Trade statistics for all

industry/commodity groups in the electronic products sector are presented in table 13-2 at the end of this

chapter.

U.S. BILATERAL TRADE

The largest sources of U.S. imports of electronic products in 1999 were Japan, Mexico, and China.

Together, these three countries accounted for 41 percent of sector imports. The largest markets for U.S.

electronics exports in 1999 were Canada, Mexico, and Japan which collectively accounted for 35 percent

of sector exports. Among the top 10 trade partners, the largest U.S. trade surplus continued to be with

Canada ($7.4 billion) and the largest U.S. trade deficit continued to be with Japan ($29.1 billion). The

largest shift in the trade balance was with China, where the trade deficit widened by $3.6 billion

(25 percent) to $18.0 billion.

The U.S. trade deficit in electronic products with Japan widened to by $3.0 billion (12 percent) to

$29.1 billion. U.S. exports to Japan increased by only 1 percent to $14.9 billion in 1999 as the Japanese

economy continued to be sluggish. The U.S. economy, on the other hand, continued its vibrant growth1 and

increased its electronics imports from Japan by 8 percent to $44.0 billion. Semiconductors, computer

hardware, and parts for office machines comprise a major share of U.S. trade with Japan.

The U.S. trade deficit with Mexico increased by $2.9 billion (46 percent) to $9.2 billion in 1999,

as U.S. exports to Mexico increased by 16 percent to $19.6 billion and U.S. imports rose by 24 percent to

$28.8 billion. Mexico exported computer hardware and television receivers to the United States, mainly

from facilities located in Mexico that are affiliated with U.S. producers. Among the leading U.S. exports to

Mexico were semiconductors, certain electrical apparatus, parts for office machines, and computer

hardware. A large share of these items were destined for maquiladora operations where labor-intensive

assembly operations were performed before they were re-imported into the United States. 

During 1999, the trade surplus in electronic products with Canada decreased by 3 percent to

$7.4 billion. U.S. exports of sector products to Canada increased by 6 percent to $22.1 billion and U.S.

imports from Canada rose by 12 percent to $14.6 billion. Computer hardware, semiconductors, and

telecommunications equipment were among the leading items of U.S. sector trade with Canada in 1999
 

2

 This industry/commodity group, also referred to as computer hardware, is composed of finished (computers

and computer peripherals) and unfinished (parts for computers and computer peripherals, such as motherboards)

products.

 

3

 U.S. Department of Commerce (USDOC), International Trade Administration (ITA), “Computer Equipment,”

U.S. Industry & Trade Outlook 2000 (New York: McGraw Hill Companies, 2000), p. 27-3.

 

4

 Ibid., p. 27-2.

13-4

and accounted for a major share of both imports and exports. These items flow across the border in both

directions as parts and components are assembled into larger subassemblies and completed units.

John Davitt

(202) 205-3407

jdavitt@usitc.gov

COMMODITY ANALYSIS

Computers, Peripherals, and Parts2

The U.S. trade deficit in computers, peripherals, and parts (hereafter computer hardware) rose by

$8.8 billion (26 percent) to $42.4 billion during 1999, continuing a trend of rising trade deficits. As in

previous years, U.S. imports of computer hardware rose as U.S. consumers purchased price-competitive

personal computers (PCS) and peripherals supplied primarily by Asian producers. U.S. exports of

computer hardware increased slightly during 1999, reversing last year's decrease that was caused in part by

the economic downturn in Asia. Exports rose by just $269 million (0.7 percent) to $39.2 billion. As the

price of PCS continued to decline and the amount of entertainment and information delivered over the PC

via the Internet continued to expand, the demand for PCS grew worldwide, contributing to the increase in

U.S. exports. Low PC penetration in many markets also contributed to this growth. South Korea showed

the largest increase in U.S. exports, $442 million (73 percent) to $1.1 billion, driven in part by the demand

for investment in an information technology infrastructure, considered critical to the country's economic

recovery and development.3

U.S. imports

U.S. imports of computer hardware rose by $9.0 billion (12 percent) to $81.7 billion during 1999.

As in previous years, this increase occurred because of intense competition among U.S. computer hardware

vendors that led to continued lowering of prices of computers and peripherals, thus fueling demand and

increasing the overall value of imports. Other factors that have increased demand include the continued

growth in Internet use, electronic commerce, and corporate investment in computer infrastructure to

implement Internet or Internet-like technologies (intranets, extranets).4

During 1999, Japan, Singapore, and Taiwan continued for the seventh consecutive year as the

three principal sources for computer hardware imported into the United States. These producers supplied

approximately 42 percent of all imports from all sources. Imports from Japan and Taiwan showed slight

increases during 1999. Japan posted the larger improvement, $514 million (4 percent) to $13.6 billion,

while imports from Taiwan grew by $84 million (0.9 percent) to $9.7 billion. Imports from Singapore fell

for the second successive year, declining $700 million (6 percent) to $11.3 billion. Excess inventory and a
 

5

 CNET News.com Staff, “PC Price Wars Taking Toll on Earnings,” CNET News.com, Jan. 27, 2000, found at

Internet address http://news.cnet.com/news/0-1006-201-1533442-0.html, retrieved May 5, 2000; and Michael

Kanellos, “Intel Cuts Pentium III Prices,” CNET News.com, Dec. 13, 1999, found at Internet address

http://news.cnet.com/news/0-1006-200-1494677.html, retrieved May 5, 2000.

 

6

 “Semis Set to Resurge in '99--Optimism in the Sector Abounds as Capacity-Driven Price Pressure Subsides

and Lead Times Begin to Stretch,” Electronic Buyers News, July 5, 1999, found at Internet site

http://www.techweb.com/se/directlink.cgi?EBN19990705S0028, retrieved Apr. 25, 2000.

13-5

surplus of computer equipment available worldwide, a decline in prices5, and the continued establishment

of production facilities in lower cost areas in Asia and Latin America all hindered growth in exports to the

United States from Japan, Taiwan, and Singapore. For example, U.S. imports from Korea, Malaysia,

China, and Mexico all increased significantly during 1999 at the expense of producers located in Japan,

Singapore, and Taiwan.

Theresa H. Canavan

(202) 205-3442

tcanavan@usitc.gov

Semiconductors and Integrated Circuits

Overall trade in semiconductors grew largely as a result of growth in the Internet and

communication sectors, particularly wireless telecommunications.6 U.S. imports of semiconductors and

integrated circuits (hereafter semiconductors) rose by $4.0 billion (12 percent) to $37.2 billion in 1999,

after declining by 8 percent the previous year. U.S. exports rose for the fourth consecutive year, by

$7.6 billion (26 percent) to $36.6 billion. As a result, the trade deficit declined for the fourth consecutive

year, by $3.6 billion (87 percent) to $542 million.

U.S. exports

The major markets for U.S. exports of semiconductors were Korea, Malaysia, the Philippines,

Mexico, Japan, and Canada; together these countries accounted for $22.8 billion or 69 percent of all U.S.

semiconductor exports in 1999. Korea became the largest market for U.S. goods in 1999. Exports to Korea

accounted for the single largest increase in exports, growing by $2.4 billion (76 percent) in 1999 to $5.6

billion. Exports to Malaysia, Mexico, the Philippines, Japan, and Taiwan also grew significantly. Exports

to Malaysia and the Philippines were primarily of unfinished semiconductors requiring assembly and

testing. Ultimately, these products are usually either returned to the United States or exported to a third

market. Exports to Korea and Canada likely were for both consumption and for assembly and testing,

whereas exports to Japan generally were for consumption.

U.S. imports

Korea, Japan, Malaysia, the Philippines, and Taiwan were the major import sources of this product

group in 1999, together accounting for 70 percent of all U.S. semiconductor imports. These same partners

also accounted for the greatest increases in imports. Imports from Korea increased by $1.4 billion

(27 percent) to $6.6 billion, from Malaysia by $738 million (17 percent) to $5.0 billion, from Taiwan by

$669 million (22 percent) to $3.7 billion, from the Philippines by $528 million (14 percent) to $4.4 billion,

and from Japan by $509 million (9 percent) to $6.4 billion. In 1999, Korea overtook Japan as the largest

supplier of semiconductors to the United States. Where Korea formerly had concentrated its production

almost exclusively in memory chips, it is now moving towards producing nonmemory devices that are in
 

7

 “ IC Export Rise Bridges South Korea Trade Gap,” EETimes, Mar. 20, 2000, found at Internet website

http://www.techweb.com/se/directlink.cgi?EET20000320S0036, retrieved Apr. 25, 2000

 

8

 USITC, Production Sharing: Use of U.S. Components and Materials in Foreign Assembly Operations, 1994-

1997, publication 3146, Dec. 1998, pp. 3-14 through 3-18.

 

9

 MultiMedia Telecommunications Association (MMTA), 2000 MultiMedia Telecommunications Market

Review and Forecast, (Arlington, VA: MMTA, 2000), p. 5.

 

10 Dennis H. Leibowitz and others, The Wireless Communications Industry, (New York: Donaldson, Lufkin, and

Jenrette Securities Corporation, Winter 1999/2000), pp. 56-57.

13-6

demand for telecommunications and computer equipment, motor vehicles, and appliance.7 In addition,

Korean exports of memory devices benefitted from stronger pricing after several years of steep declines.

Imports of monolithic digital integrated circuits (ICs) using metal oxide silicon technology (also

accounting for 68 percent of all semiconductor imports) accounted for most of the increase in

semiconductor imports, growing by $2.5 billion (11 percent) to $25.2 billion. Korea, Japan, Malaysia, and

the Philippines were the major suppliers of these IC products, accounting for 23 percent, 16 percent, 12

percent, and 12 percent, respectively, of imports of those products.

Production sharing plays an important role in the manufacture of semiconductors.8 The United

States is a major fabricator of unfinished chips, and exports significant quantities requiring assembly and

testing before they are re-imported into the United States as finished ICs. U.S. firms have extensive

production-sharing relationships with assemblers in Korea, the Philippines, Malaysia, Taiwan, Singapore,

and Canada.

John Kitzmiller

(202) 205-3387

kitzmiller@usitc.gov

Telephone and Telegraph Apparatus

U.S. trade in telephone and telegraph apparatus shifted from a surplus of $2.8 billion to a deficit of

$2.4 billion during 1999 as a strong increase in U.S. demand for these products, especially cellular

telephones, spurred imports. U.S. imports increased by $5.8 billion (40 percent) to $20.1 billion whereas

exports increased by only $551 million (3 percent) to $17.7 billion. U.S. consumption of these products

expanded by approximately 11 percent in 1999 resulting in sharp increases in U.S. imports from each of its

major trade partners.9

U.S. imports

U.S. imports consisted mostly of low end commodity-type products such as telephone sets, cellular

telephones, and parts. During 1999, U.S. imports of cellular telephones, driven by an expanding U.S.

market, replaced cordless telephone sets as the leading import within the product group. Total mobile phone

subscribership in the United States increased by 24 percent to 87 million in 1999.10 Other principal import

product categories include printed circuit assemblies for telephone apparatus, facsimile machines, and

modems. 

U.S. imports from each of its five largest sources of telephone and telegraph apparatus, Canada,

Japan, Mexico, China, and Korea, increased substantially and collectively accounted for 72 percent of U.S.

imports in 1999. Canada remained the largest source of these imports, supplying an additional $1.5 billion
 

11 Included in this group are radiobroadcast receivers, phonographs, compact disk players, audio tape recorders

and players, digital versatile disk and laserdisc players, videotape recorders and players, camcorders, audio

components, speakers, microphones, and combinations of the foregoing.

13-7

(51 percent) in 1999 over its 1998 amount. U.S. imports from Canada consisted of a wide variety of

products, of which parts for telephonic and telegraphic apparatus comprised the largest share. Canada has

a number of globally competitive firms in the telephone and telegraph apparatus product group dominated

by Nortel-Networks, that are well-positioned to respond to growing U.S. demand. U.S. imports from Japan,

the second-largest source of imports, increased by 36 percent during 1999. Japan supplied a wide variety of

finished products and parts, although these imports contained a much larger share of facsimile machines

and cellular telephones than did imports from Canada. U.S. imports from Mexico and China increased by

59 percent and 27 percent, respectively, and are largely concentrated in commodity-type products such as

telephone sets, pagers, and cellular telephones. A surge in imports of cellular telephones caused U.S.

imports from Korea to grow by 112 percent in 1999.

The increase in U.S. demand for telephone and telegraph apparatus products that is reflected in

strong import growth is driven by a number of factors affecting both wireless and wireline products. The

continued expansion and upgrade of the digital wireless infrastructure and increased use of cellular

telephones have boosted sales of both U.S.- and foreign-sourced equipment in the U.S. market. Similarly,

the need for greater data-carrying-capacity associated with greater Internet usage and new services has

prompted telecommunications carriers, the primary customers for this product group, to increase spending

on new equipment. Growing competition has also contributed to market expansion. New

telecommunications service providers are increasingly competing with established carriers and creating

alternative networks which, in turn, cause the established carriers to upgrade to prevent the loss of market

share.

John Davitt

(202) 205-3407

jdavitt@usitc.gov

Consumer Electronics (Except Televisions)11

The trade deficit for the consumer electronics (except televisions) product group (hereafter

consumer electronics) rose by $1.7 billion (13 percent) to $15.6 billion in 1999, growing for the fourth year

in a row. Imports grew for the fourth straight year, increasing by $1.8 billion (11 percent) to $18.3 billion.

Japan, China, and Mexico continued as the largest import sources, together accounting for 69 percent of all

such imports. Exports reversed a decline from 1997-98, growing by $99 million (4 percent) in 1999 to

$2.7 billion. North American Free Trade Agreement (NAFTA) partners Canada and Mexico continued as

the largest export markets for U.S. products, accounting for 54 percent of exports.

U.S. imports

The major sources of products in this group were Japan, China, and Mexico, accounting for

29 percent, 26 percent, and 14 percent, respectively, of U.S. imports in 1999. Imports from Japan, which

continued as the largest foreign supplier to the U.S. market, grew by $711 million (15 percent) to

$5.3 billion, accounting for over one-third of the overall increase.
 

12 See ch. 2 for a general discussion about U.S. and international macroeconomic conditions that influenced

U.S. merchandise trade performance in 1999.

 

13 “DVD Player Supply Grows, Line Matures,” Asian Sources Electronics, May 2000, pp. 80-102.

 

14 Consumer Electronics Association, “Strong Sales in March Round Out Stellar First Quarter for Video,” Apr.

17, 2000, found at Internet address http://www.ce.org/index.asp?area=newsroom&area2=archives, retrieved May

2, 2000.

 

15 Included in this product group are transmitters, antennae, cable television transmission equipment (except

cable), and satellite television receivers.

 

16 Representative of Satellite Broadcast and Communications Association, telephone interview with USITC

staff, May 2, 2000.

13-8

The products showing the greatest increase in imports included video reproducing apparatus other

than magnetic tape, most likely digital versatile disk (DVD) players, which grew by $684 million

(173 percent) to $1.1 billion, and digital still image video cameras, which grew by $542 million

(101 percent) to $1.1 billion. Both of these products are becoming increasingly popular in the United

States. Japan was the source for 56 percent of the DVD players and 71 percent of the digital still image

video cameras.

The chief reason for increased imports from Japan was the strength of the U.S. economy, which

has led to an increase in consumer discretionary spending.12 Also, both of the products showing the greatest

increase in imports may be used as computer peripherals, and as the household penetration rate for

computers grows, so does the market for these consumer computer peripherals. According to producers in

Southeastern Asia, orders for DVD players have been increasing significantly, with up to 50 percent per

year increases forecast for the United States.13 According to the Consumer Electronics Association, DVD

player shipments to distributors and dealers exceeded 1 million units in the first quarter of 2000,

representing a 188-percent increase over the corresponding period of 1999.14

John Kitzmiller

(202) 205-3387

kitzmiller@usitc.gov

Radio and Television Broadcasting Equipment15

The trade deficit for radio and television broadcasting equipment grew for the second year in a

row, increasing by 43 percent ($793 million) to $2.6 billion in 1999. Imports grew by $1.7 billion

(54 percent) to $4.9 billion while exports grew by $944 million (68 percent) to $2.3 billion.

U.S. imports

The major import sources in 1999 were Mexico, Taiwan, and Japan, accounting for 40 percent,

17 percent, and 15 percent, respectively, of U.S. imports in this product group. Imports from Mexico grew

by $661 million (40 percent) to $2.0 billion. The categories showing the greatest increases in imports in

1999 were set top boxes which increased by $549 million (88 percent) to $1.2 billion and miscellaneous

transmission apparatus which increased by $292 million (18 percent) to $1.9 billion. Both of these reflect a

growth in sales of digital satellite television equipment, set top boxes and miscellaneous equipment. The

number of subscribers in the United States is estimated at 13.8 million households by the end of the third

quarter of 2000.16 Each household uses at least one digital satellite receiver plus one set top box per

television receiver connected to the digital satellite system. Increasing consumer dissatisfaction with the
13-9

cost of cable television and the healthy U.S. economy have contributed to the growth in imports and sales

of satellite receivers.

John Kitzmiller

(202) 205-3387

kitzmiller@usitc.gov
Table 13-2

Electronic products sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

See footnote(s) at end of table.

13-10

ET016 Office machines:

Exports .............................. 1,098 1,037 -61 -5.6

Imports .............................. 1,856 1,784 -72 -3.9

Trade balance ......................... -758 -747 11 1.5

ET017 Telephone and telegraph apparatus:

Exports .............................. 17,167 17,717 551 3.2

Imports .............................. 14,385 20,147 5,762 40.1

Trade balance ......................... 2,782 -2,430 -5,212 (

3

)

ET018 Consumer electronics (except televisions):

Exports .............................. 2,579 2,678 99 3.8

Imports .............................. 16,444 18,282 1,838 11.2

Trade balance ......................... -13,865 -15,604 -1,739 -12.5

ET019 Blank media:

Exports .............................. 2,042 1,692 -350 -17.1

Imports .............................. 2,103 2,225 122 5.8

Trade balance ......................... -62 -533 -471 -765.4

ET020 Prerecorded media:

Exports .............................. 3,619 3,707 88 2.4

Imports .............................. 1,135 1,252 117 10.3

Trade balance ......................... 2,485 2,455 -29 -1.2

ET021 Navigational instruments and remote control

 apparatus:

Exports .............................. 2,585 2,530 -55 -2.1

Imports .............................. 1,230 1,361 131 10.6

Trade balance ......................... 1,354 1,169 -185 -13.7

ET022 Television receivers and video monitors:

Exports .............................. 2,142 1,104 -1,038 -48.5

Imports .............................. 5,878 6,652 774 13.2

Trade balance ......................... -3,736 -5,548 -1,812 -48.5

ET023 Radio and television broadcasting equipment:

Exports .............................. 1,379 2,323 944 68.4

Imports .............................. 3,211 4,948 1,736 54.1

Trade balance ......................... -1,832 -2,624 -793 -43.3

ET024 Electric sound and visual signaling apparatus:

Exports .............................. 783 858 75 9.6

Imports .............................. 2,064 2,053 -11 -0.5

Trade balance ......................... -1,281 -1,195 86 6.7

ET025 Electrical capacitors and resistors:

Exports .............................. 2,037 2,393 356 17.5

Imports .............................. 2,015 2,435 421 20.9

Trade balance ......................... 22 -42 -65 (

3

)

ET026 Printed circuits:

Exports .............................. 2,178 2,386 208 9.5

Imports .............................. 2,045 2,236 191 9.3

Trade balance ......................... 133 150 17 12.7

ET027 Circuit apparatus exceeding 1000V:

Exports .............................. 584 590 5 0.9

Imports .............................. 244 287 43 17.8

Trade balance ......................... 340 302 -38 -11.2

ET028 Circuit apparatus not exceeding 1000V:

Exports .............................. 4,258 4,991 734 17.2

Imports .............................. 5,103 5,606 503 9.9

Trade balance ......................... -845 -615 231 27.3
Table 13-2--Continued

Electronic products sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

See footnote(s) at end of table.

13-11

ET029 Circuit apparatus assemblies:

Exports .............................. 919 1,078 158 17.2

Imports .............................. 1,852 2,141 289 15.6

Trade balance ......................... -932 -1,063 -131 -14.0

ET030 Parts of circuit apparatus:

Exports .............................. 1,589 1,809 220 13.8

Imports .............................. 876 999 123 14.0

Trade balance ......................... 713 809 97 13.6

ET031 Cathode-ray tubes:

Exports .............................. 2,288 2,174 -115 -5.0

Imports .............................. 774 732 -42 -5.4

Trade balance ......................... 1,514 1,442 -73 -4.8

ET032 Electron tubes other than CRTs:

Exports .............................. 183 215 32 17.6

Imports .............................. 225 190 -34 -15.2

Trade balance ......................... -42 25 66 (

3

)

ET033 Semiconductors and integrated circuits:

Exports .............................. 29,055 36,615 7,561 26.0

Imports .............................. 33,157 37,158 4,001 12.1

Trade balance ......................... -4,102 -542 3,560 86.8

ET034 Miscellaneous electrical equipment:

Exports .............................. 1,561 1,590 29 1.8

Imports .............................. 2,161 2,358 198 9.1

Trade balance ......................... -600 -769 -169 -28.2

ET035 Computers, peripherals, and parts:

Exports .............................. 38,962 39,230 269 0.7

Imports .............................. 72,635 81,662 9,027 12.4

Trade balance ......................... -33,673 -42,432 -8,759 -26.0

ET036 Photographic film and paper:

Exports .............................. 2,108 2,154 47 2.2

Imports .............................. 1,861 2,009 148 7.9

Trade balance ......................... 247 146 -101 -41.0

ET037 Optical fibers, optical fiber bundles and cables:

Exports .............................. 807 1,081 274 33.9

Imports .............................. 398 729 330 82.9

Trade balance ......................... 409 352 -56 -13.8

ET038 Optical goods, including ophthalmic goods:

Exports .............................. 2,438 2,682 243 10.0

Imports .............................. 3,683 4,225 542 14.7

Trade balance ......................... -1,244 -1,543 -299 -24.0

ET039 Photographic cameras and equipment:

Exports .............................. 2,030 1,825 -205 -10.1

Imports .............................. 6,447 5,843 -604 -9.4

Trade balance ......................... -4,417 -4,018 399 9.0

ET040 Medical goods:

Exports .............................. 11,582 12,455 873 7.5

Imports .............................. 6,934 7,932 998 14.4

Trade balance ......................... 4,648 4,522 -125 -2.7

ET041 Watches and clocks:

Exports .............................. 311 335 24 7.6

Imports .............................. 3,100 3,136 36 1.2

Trade balance ......................... -2,789 -2,801 -12 -0.4
Table 13-2--Continued

Electronic products sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

13-12

ET042 Drawing, drafting, and calculating instruments:

Exports .............................. 425 415 -10 -2.2

Imports .............................. 427 431 3 0.8

Trade balance ......................... -2 -15 -13 -596.6

ET043 Measuring, testing, and controlling instruments:

Exports .............................. 13,825 14,575 750 5.4

Imports .............................. 8,681 9,656 975 11.2

Trade balance ......................... 5,143 4,919 -225 -4.4

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

2

 This coding system is used by the U.S. International Trade Commission to identify major groupings of HTS

import and export items for trade monitoring purposes.

3

 Not meaningful for purposes of comparison.

Note.--Calculations based on unrounded data.

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

1

 Miscellaneous manufactures include a wide range of consumer products such as luggage, handbags, musical

instruments, silverware, jewelry, bicycles, furniture, writing instruments, lamps, sporting goods, brushes, brooms,

toys, dolls, games, umbrellas, Christmas ornaments, artificial flowers, typewriter ribbons, works of art, and

antiques, among others.

 

2

 See ch. 2 for a general discussion about U.S. and international macroeconomic conditions that influenced U.S.

merchandise trade performance in 1999.

14-1

,,,,,,,,,,,,,,,,

CHAPTER 14

Miscellaneous Manufactures

Josephine Spalding, Coordinator

(202) 205-3498

spalding@usitc.gov

Led by continued expansion in U.S. imports of furniture, and works of art and miscellaneous

manufactured goods, the U.S. trade deficit in the miscellaneous manufactures sector1 expanded by

$6.2 billion (16 percent ) in 1999 to $45.0 billion (table 14-1). U.S. imports of miscellaneous

manufacturers grew by $6.1 billion (11 percent) in 1999 to $60.3 billion, a level five times as large as U.S.

exports of sector products. U.S. exports fell slightly by $81 million (0.5 percent) to $15.3 billion, despite a

sharp rise in exports of precious jewelry and related articles by $304 million (59 percent) to $822 million,

chiefly to the European Union (EU), Japan, and Mexico.

Production processes for goods classified in the miscellaneous manufactures sector tend to be

labor-intensive, and the technology is readily transferable to developing or newly industrialized countries.

Numerous sector imports are produced in Asia under license from U.S. companies, and Asian countries

were the sources of 60 percent of U.S. sector imports in 1999. Imports tend to be concentrated in products

that require sewing (e.g., luggage, automobile seat covers, and baseballs), semiskilled assembly (e.g., wood

furniture, lamps, and sporting goods), and low-technology injection molding (e.g., toys and dolls), or

products for which there is no competing U.S. industry (e.g., home video games, umbrella frames, certain

Christmas decorations, and certain works of art). The remaining less import-sensitive product groups are

characterized by products with high transportation costs (e.g., upholstered furniture and fairground

amusement rides), products with low raw material cost in the United States relative to those of foreign

producers (e.g., baseball bats and silverware), and products for which U.S. manufacturers have superior

design and production technology or copyright protection (e.g., water skis and board games).

Furniture, works of art and miscellaneous manufactured goods, and lamps and lighting fittings,

combined, accounted for 70 percent ($4.3 billion) of both the import value increase in 1999 (table 14-2)

and the expanded U.S. trade deficit in sector products. Consumer confidence in the U.S. economy and

relatively low interest rates sustained the growth in housing construction in 1999,2 boosting U.S. sales of

both domestically produced and imported furniture, as well as of lamps and light fittings, chiefly from

China. Trade statistics for all commodity/industry groups in the miscellaneous manufactures sector are

presented in table 14-3 at the end of this chapter.
14-2

Table 14-1

Miscellaneous manufactures: U.S. exports of domestic merchandise, imports for consumption, and

merchandise trade balance, by selected countries and country groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998

,,,,,,,,,,,,,,,,,,,,,,,,,,

Item 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

––––––– Million dollars ––––––––

U.S. exports of domestic merchandise:

China ....................................... 106 113 7 6.9

Canada ..................................... 3,644 3,883 239 6.6

Mexico ...................................... 1,837 1,717 -120 -6.5

Japan ....................................... 1,739 1,598 -141 -8.1

Italy ........................................ 181 251 70 38.6

Taiwan ...................................... 334 227 -107 -32.1

United Kingdom ............................... 1,214 1,382 168 13.9

France ...................................... 317 345 28 8.8

Germany .................................... 554 493 -60 -10.9

Thailand ..................................... 64 55 -9 -14.0

All other ..................................... 5,361 5,206 -155 -2.9

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 15,350 15,270 -81 -0.5

EU-15 ...................................... 3,248 3,502 255 7.8

OPEC ...................................... 601 641 39 6.5

Latin America ................................. 3,170 2,913 -258 -8.1

CBERA ..................................... 517 579 62 12.0

Asia ........................................ 3,099 2,945 -154 -5.0

Sub-Saharan Africa ............................ 94 69 -25 -26.7

Central and Eastern Europe ...................... 58 39 -19 -32.3

U.S. imports for consumption:

China ....................................... 19,042 21,733 2,691 14.1

Canada ..................................... 5,196 5,740 545 10.5

Mexico ...................................... 4,175 4,697 522 12.5

Japan ....................................... 4,030 4,179 149 3.7

Italy ........................................ 3,376 3,689 312 9.2

Taiwan ...................................... 3,106 2,969 -137 -4.4

United Kingdom ............................... 1,598 1,804 206 12.9

France ...................................... 2,120 2,446 326 15.4

Germany .................................... 1,009 1,073 64 6.3

Thailand ..................................... 1,189 1,435 246 20.7

All other ..................................... 9,377 10,547 1,171 12.5

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... 54,219 60,312 6,093 11.2

EU-15 ...................................... 9,530 10,845 1,315 13.8

OPEC ...................................... 804 952 148 18.4

Latin America ................................. 5,380 5,863 483 9.0

CBERA ..................................... 440 475 35 8.1

Asia ........................................ 32,446 35,972 3,526 10.9

Sub-Saharan Africa ............................ 90 99 9 10.2

Central and Eastern Europe ...................... 297 372 75 25.1

U.S. merchandise trade balance:

China ....................................... -18,936 -21,620 -2,684 -14.2

Canada ..................................... -1,552 -1,858 -306 -19.7

Mexico ...................................... -2,338 -2,980 -642 -27.5

Japan ....................................... -2,290 -2,581 -290 -12.7

Italy ........................................ -3,195 -3,438 -242 -7.6

Taiwan ...................................... -2,773 -2,742 30 1.1

United Kingdom ............................... -385 -422 -37 -9.7

France ...................................... -1,803 -2,101 -298 -16.5

Germany .................................... -456 -580 -124 -27.2

Thailand ..................................... -1,125 -1,380 -255 -22.6

All other ..................................... -4,016 -5,342 -1,325 -33.0

–––––––––––––––––––––––––––––––––––––––––––– Total ..................................... -38,869 -45,042 -6,173 -15.9

EU-15 ...................................... -6,282 -7,343 -1,061 -16.9

OPEC ...................................... -203 -312 -109 -53.6

Latin America ................................. -2,210 -2,950 -741 -33.5

CBERA ..................................... 77 104 27 34.8

Asia ........................................ -29,347 -33,027 -3,680 -12.5

Sub-Saharan Africa ............................ 4 -30 -34 (

2

)

Central and Eastern Europe ...................... -239 -332 -93 -39.0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

 

2

 Not meaningful for purposes of comparison.

Note.--Calculations based on unrounded data. The countries shown are those with the largest total U.S. trade (U.S.

imports plus exports) in these products in 1999.

Source: Compiled from official statistics of the U.S. Department of Commerce.
14-3

Table 14-2

Leading changes in U.S. imports of miscellaneous manufactures, 1998 and 1999

Change, 1999 from 1998

Sector/commodity 1998 1999 Absolute Percent

 –––––––––– Million dollars –––––––––

Increases: 

 Furniture (MM054) ........................... 10,417 12,775 2,358 23

 Works of art and miscellaneous manufactured

 goods (MM064) ............................ 7,230 8,463 1,233 17

 Lamps and lighting fittings (MM056) .............. 3,167 3,858 690 22

 Precious jewelry and related articles (MM051) ....... 4,592 5,063 471 10

 Seats for motor vehicles and aircraft (MM067) ...... . 2,610 3,024 415 16

 Toys (MM059) ............................... 7,588 7,978 390 5

 Brooms, brushes, and hair grooming

 articles (MM063) ........................... 698 955 258 37

All other ..................................... 17,917 18,196 279 2 

 Total .................................. 54,219 60,312 6,093 11

Note.--Calculations based on unrounded data.

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

U.S. BILATERAL TRADE

Five factors characterized bilateral trade in the miscellaneous manufactures sector: dominance of

imports of labor-intensive articles from China; consistently high level of imports of video games from

Japan; rationalized production and intercompany trade between the United States and Canada; presence of

two-way trade in high-end manufactured goods and trade in works of art between the United States and the

EU; and increased reliance on assembly plants in Mexico by foreign manufacturers, particularly for motor

vehicle seat covers. Of these five factors, the most significant development in 1999 was a $2.7 billion (14

percent) increase in U.S. imports from China to $21.7 billion (table 14-1). Among significant U.S. sector

imports from China, furniture rose by $992 million (49 percent) in 1999 to $3.0 billion, whereas lamps and

lighting fittings increased by $519 million (29 percent) to $2.5 billion. In contrast, U.S. exports to China in

the miscellaneous manufactures sector grew by $7 million (7 percent) in 1999 to $113 million.

U.S. sector imports from the EU expanded by $1.3 billion (14 percent) in 1999 to $10.8 billion,

with much of this import growth accounted for by works of art and miscellaneous manufactured goods,

which grew by $855 million (24 percent) in 1999 to $4.4 billion, and furniture, which rose by $319 million

(20 percent) to $1.9 billion. Sector imports from Canada rose by $545 million (11 percent) in 1999 to $5.7

billion, with furniture accounting for the bulk of this increase, rising by $506 million (16 percent) in 1999

to $3.6 billion. Imports from Mexico grew by $522 million (13 percent) in 1999 to $4.7 billion; motor

vehicle seats accounted for the majority of this increase, as imports of these auto parts assembled in

Mexico’s maquiladora industry rose by $391 million (27 percent) to $1.8 billion in 1999.
 

3

 The product coverage for this furniture industry/commodity group differs from previous reports on shifts in

U.S. merchandise trade because coverage for selected furnishings (pillows, quilts, and sleeping bags) under is now

included in industry/commodity group CH048 household furnishings. Further, industry/commodity group MM067

has been created for seats for motor vehicles and aircraft.

 

4

 According to United Nations (UN) trade data, the United States accounted for an estimated 28 percent of

world imports of furniture in 1998 (latest data available), followed by the EU with an estimated 16 percent. Official

statistics of the UN. 

 

5

 See ch. 2 for a general discussion about U.S. and international microeconomic conditions that influenced U.S.

merchandise trade performance in 1999. In contrast to continued U.S. economic expansion during 1999, Japan’s

recession deepened during 1998 and continued in 1999; and EU growth waned during the same time period.

International Monetary Fund (IMF) Annual Report of the Executive Board for the Financial Year Ended April 30,

1999, (Washington, DC: IMF July 30, 2000), p. 1, found at Internet address

http://www.imf.org/external/pubs/ft/ar/1999/pdf/file2.pdf, retrieved Apr. 18, 2000.

 

6

 U.S. Department of Agriculture (USDA), Foreign Agricultural Service, “China; Forest Products Annual

Report,” p. 10, found at Internet address http://www.stat-usa.gov, retrieved Apr. 24, 2000.

 

7

 Diane Shen and Merry Cao, “China Furniture Sales,” Sept. 1998, p. 3, U.S. Department of Commerce

(USDOC), International Trade Administration (ITA), found at internet address http://www.stat-usa.gov, retrieved

Apr. 24, 2000.

 

8

 Brian Carroll, “China Imports Booming,” Furniture Today, Nov. 8, 1999, p. 1.

 

9

 For more detailed information and discussion of factors affecting trends and competitiveness in the furniture

industry, see Josephine Spalding, Industry and Trade Summary: Furniture, USITC publication (forthcoming).

14-4

COMMODITY ANALYSIS OF FURNITURE3

The U.S. trade deficit in furniture expanded by $2.4 billion (31 percent) in 1999 to $10.2 billion.

Demand for imported furniture was stronger and more sustained in the United States than in other

industrialized countries,4 reflecting higher growth rates in the U.S. economy.5 Rising trade deficits with

China (up by $991 million), Canada (up by $518 million), and the EU (up by $288 million) accounted for

three-quarters of the total expansion in the U.S. trade deficit in furniture in 1999. Whereas U.S. furniture

imports from these suppliers rose sharply in 1999, exports to most partners were little changed, down by

$35 million (1 percent) to $2.6 billion.

U.S. imports

U.S. imports of furniture rose by $2.4 billion (23 percent) in 1999 to $12.8 billion (table 14-2).

The bulk of the increase in U.S. imports was accounted for by household furniture, which rose by

$1.5 billion (23 percent) to $8.0 billion. Imports of office furniture grew by $238 million (17 percent) to

$1.8 billion. China was the fastest-growing supplier of furniture to the U.S. market, as imports expanded

by $992 million (49 percent) in 1999 to $3.0 billion. According to the China National Furniture

Association, the furniture industry in China consists of over 30,000 furniture manufacturers with an

estimated 2 million employees.6 Of these firms, about 8 percent are foreign-owned firms or joint ventures.7

The production of these firms is export oriented, much of which is directed towards the U.S. market. The

principal foreign investors in the Chinese furniture industry are from Hong Kong, Taiwan, and Singapore.

Foreign producers locate manufacturing operations in China in order to take advantage of the highly

skilled, low-cost labor. Although certain U.S. producers have established production facilities in China,

many leading U.S. furniture companies have contract agreements with manufacturers in China for laborintensive furniture components, reportedly achieving cost savings of 30 to 50 percent over domestically

made furniture components.8 Unassembled furniture accounts for a significant portion of U.S. imports from

China, and greatly reduces transportation costs, allowing certain types of wood furniture from China (as

well as metal and plastic stacking chairs) to be competitive in the U.S. market.9
 

10 USDOC, ITA, “The Canadian Furniture Market Overview,” May 1999, p. 2, found at internet address

http://strategis.ic.gc.ca, retrieved Apr. 26, 2000.

 

11 Rustic style furniture has slightly uneven surfaces and a transparent finish that shows the wood grain. By

focusing on this market niche, Mexican exporters avoid the highly finished and polished segment of the U.S. wood

furniture market where U.S. producers dominate.

 

12 Reportedly, the last five collections of Rustic furniture introduced at trade shows in Mexico have been from

Indonesia. Brian Carroll, “Next Generation Rustic Expands Reach,” Furniture Today, July 19, 1999, p. 9.

 

13 Brian Carroll, “Mexico’s Role Growing as Source for U.S. Product,” Furniture Today, July 19, 1999, p. 8.

HON, a U.S. producer of office furniture has recently opened a manufacturing facility in Monterrey for metal office

chairs. See “Mexico Update, Twin Plant News, Jan. 2000, p. 1.

14-5

Canada was the largest furniture supplier, and such U.S. imports, grew by $506 million

(14 percent) to $3.6 billion. Canadian furniture producers are successful in the U.S. market owing to

geographic proximity, access to low-cost lumber, similar preferences in furniture design, comparable

methods of manufacture, and similar channels of distribution. The bulk of Canadian furniture

manufacturers are in Ontario and Quebec along the northeastern border of the United States.10 Imports of

wood household furniture from Canada grew by $270 million (21 percent) in 1999 to $1.5 billion and

accounted for 54 percent of the overall increase in furniture imports from Canada that year. Canadian

household furniture manufactures are particularly efficient in the manufacture of modified European-style

contemporary furniture, which they can offer to the U.S. market at a lower price than EU competitors

because of lower transportation costs.

U.S. furniture imports from the EU, with Italy as the leading source, rose by $288 million

(20 percent) to $1.9 billion. The Italian furniture industry has a flexible structure that allows producers to

respond quickly to changes in both domestic and international market trends. Representatives of Italian

furniture production cooperatives meet regularly to discuss market trends, furniture designs, use of

materials and technological innovation. Despite relatively high labor costs, the Italian furniture industry is

competitive because it is able to offer its customers new products with short lead times. High-quality

upholstered leather seating accounts for a significant portion of U.S. furniture imports from Italy.

Imports from Mexico increased by $152 million (19 percent) to $964 million. The Mexican

furniture industry’s competitive strength lies in its highly skilled low-cost labor force, proximity to the

United States, and access to suitable domestically milled lumber. Traditionally, U.S. imports of household

furniture from Mexico have consisted mostly of lower-priced Rustic-style furniture.11 However, greater

demand in the U.S.-Canadian market for rustic furniture has enabled certain low-cost East Asian

producers, particularly Indonesia, to more cost-effectively ship higher volumes and compete with producers

in Mexico,12 despite relatively high transportation costs. In response to competition from East Asia, some

furniture producers in Mexico are shifting production toward mid-price-range furniture influenced by

European designs. Growth in Mexico’s furniture industry is being is being augmented by U.S. and

Canadian furniture manufacturers’ investment in production facilities, in response to tight labor markets in

the United States and Canada.13

Josephine Spalding

(202) 205-3498

spalding@usitc.gov
Table 14-3

Miscellaneous manufactures sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

14-6

MM046 Luggage, handbags, and flat goods:

Exports .............................. 304 329 25 8.2

Imports .............................. 3,912 4,073 162 4.1

Trade balance ......................... -3,608 -3,744 -137 -3.8

MM047 Certain other leather goods:

Exports .............................. 106 123 16 15.5

Imports .............................. 195 209 14 7.1

Trade balance ......................... -89 -86 3 2.9

MM048 Musical instruments and accessories:

Exports .............................. 392 360 -33 -8.3

Imports .............................. 1,188 1,256 68 5.7

Trade balance ......................... -796 -896 -100 -12.6

MM049 Umbrellas, whips, riding crops, and canes:

Exports .............................. 11 11 (

3

) 3.6

Imports .............................. 250 248 -2 -0.8

Trade balance ......................... -240 -237 2 1.0

MM050 Silverware and related articles of precious metal:

Exports .............................. 114 123 9 7.6

Imports .............................. 158 57 -101 -63.9

Trade balance ......................... -44 66 110 (

4

)

MM051 Precious jewelry and related articles:

Exports .............................. 518 822 304 58.7

Imports .............................. 4,592 5,063 471 10.3

Trade balance ......................... -4,073 -4,241 -167 -4.1

MM052 Costume jewelry and related articles:

Exports .............................. 128 133 5 3.6

Imports .............................. 493 546 54 10.9

Trade balance ......................... -364 -413 -49 -13.4

MM053 Bicycles and certain parts:

Exports .............................. 292 271 -22 -7.4

Imports .............................. 1,115 1,199 84 7.5

Trade balance ......................... -823 -928 -105 -12.8

MM054 Furniture:

Exports .............................. 2,632 2,597 -35 -1.3

Imports .............................. 10,417 12,775 2,358 22.6

Trade balance ......................... -7,785 -10,178 -2,393 -30.7

MM055 Writing instruments and related articles:

Exports .............................. 373 333 -40 -10.8

Imports .............................. 842 965 123 14.6

Trade balance ......................... -468 -632 -163 -34.9

MM056 Lamps and lighting fittings:

Exports .............................. 619 585 -34 -5.5

Imports .............................. 3,167 3,858 690 21.8

Trade balance ......................... -2,548 -3,272 -725 -28.4

MM057 Prefabricated buildings:

Exports .............................. 385 327 -57 -14.9

Imports .............................. 160 221 60 37.7

Trade balance ......................... 224 107 -118 -52.5

MM058 Dolls:

Exports .............................. 28 25 -4 -12.8

Imports .............................. 1,484 1,374 -110 -7.4

Trade balance ......................... -1,455 -1,349 106 7.3

MM059 Toys:

Exports .............................. 540 497 -43 -8.0
Table 14-3--Continued

Miscellaneous manufactures sector: U.S. trade for selected industry/commodity groups, 1998 and 19991

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,,,,,,,,

code2Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

14-7

Imports .............................. 7,588 7,978 390 5.1

Trade balance ......................... -7,048 -7,481 -433 -6.1

MM060 Games:

Exports .............................. 913 936 23 2.5

Imports .............................. 4,182 4,086 -95 -2.3

Trade balance ......................... -3,269 -3,150 118 3.6

MM061 Sporting goods:

Exports .............................. 1,688 1,621 -68 -4.0

Imports .............................. 3,041 3,027 -14 -0.4

Trade balance ......................... -1,353 -1,407 -54 -4.0

MM062 Smokers' articles:

Exports .............................. 71 71 (

3

) -0.3

Imports .............................. 145 134 -11 -7.9

Trade balance ......................... -74 -63 11 15.1

MM063 Brooms, brushes, and hair grooming articles:

Exports .............................. 184 206 22 11.7

Imports .............................. 698 955 258 36.9

Trade balance ......................... -514 -750 -236 -45.9

MM064 Works of art and miscellaneous manufactured

 goods:

Exports .............................. 1,685 1,731 46 2.7

Imports .............................. 7,230 8,463 1,233 17.1

Trade balance ......................... -5,545 -6,732 -1,187 -21.4

MM065 Apparel fasteners:

Exports .............................. 136 140 4 2.9

Imports .............................. 103 89 -14 -13.6

Trade balance ......................... 33 51 18 54.0

MM066 Arms and ammunition:

Exports .............................. 2,348 2,152 -195 -8.3

Imports .............................. 649 711 61 9.4

Trade balance ......................... 1,698 1,442 -257 -15.1

MM067 Seats for motor vehicles and aircraft:

Exports .............................. 1,881 1,878 -3 -0.2

Imports .............................. 2,610 3,024 415 15.9

Trade balance ......................... -728 -1,146 -418 -57.4

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1

 Import values are based on customs value; export values are based on f.a.s. value, U.S. port of export.

2

 This coding system is used by the U.S. International Trade Commission to identify major groupings of HTS

import and export items for trade monitoring purposes.

3

 Less than $500,000.

4

 Not meaningful for purposes of comparison.

Note.--Calculations based on unrounded data.

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

,,,,,,,,,,,,,,,,

APPENDIX A

Industry/Commodity Groups

in this Report

Industry/commodity groups have been extensively revised (e.g., new groups, combined groups, split-off

groups, or shifting HTS subheadings among groups) to provide more realistic product coverage. Moreover,

titles of many industry/commodity groups have been modified to be more succinct, more descriptive of the

product coverage, or both.

A-3

Agricultural products sector1

(HTS chapters2 1-24, 35, 41, 43, 51, 52)

AG001 Certain miscellaneous animals and

meats

AG002 Cattle and beef

AG003 Swine and pork

AG004 Sheep and meat of sheep

AG005 Poultry

AG006 Fresh or frozen fish

AG007 Canned fish

AG008 Cured and other fish

AG009 Shellfish

AG010 Dairy produce

AG011 Eggs

AG012 Sugar and other sweeteners

AG013 Animal feeds

AG014 Live plants

AG015 Seeds

AG016 Cut flowers

AG017 Miscellaneous vegetable substances

AG018 Fresh, chilled, or frozen vegetables

AG019 Prepared or preserved vegetables,

mushrooms, and olives

AG020 Edible nuts

AG021 Tropical fruit

AG022 Citrus fruit

AG023 Deciduous fruit

AG024 Other fresh fruit

AG025 Dried fruit other than tropical

AG026 Frozen fruit

AG027 Prepared or preserved fruit

AG028 Coffee and tea

AG029 Spices

AG030 Cereals

AG031 Milled grains, malts, and starches

AG032 Oilseeds

AG033 Animal or vegetable fats and oils

AG034 Pasta, cereals, and other bakery goods

AG035 Sauces, condiments, and soups

AG036 Infant formulas, malt extracts, and

other edible preparations

AG037 Cocoa, chocolate, and confectionery

AG038 Fruit and vegetable juices

AG039 Nonalcoholic beverages, excluding fruit

and vegetable juices

AG040 Malt beverages

AG041 Wine and certain other fermented

beverages

AG042 Distilled spirits

AG043 Unmanufactured tobacco

AG044 Cigars and certain other manufactured

tobacco

AG045 Cigarettes

AG046 Hides, skins, and leather

AG047 Furskins

AG048 Wool and other animal hair

AG049 Cotton, not carded or combed

AG050 Ethyl alcohol for nonbeverage purposes

Forest products sector

(HTS chapters 14, 44-49)

AG051 Logs and rough wood products

AG052 Lumber

AG053 Moldings, millwork, and joinery

AG054 Wood veneer and wood panels

AG055 Wooden containers

AG056 Tools and tool handles of wood

AG057 Miscellaneous articles of wood

AG058 Cork and rattan

AG059 Wood pulp and wastepaper

AG060 Paper boxes and bags

AG061 Industrial papers and paperboards

AG062 Newsprint

AG063 Printing and writing papers

AG064 Certain specialty papers

AG065 Miscellaneous paper products

AG066 Printed matter

Chemicals and related products sector

(HTS chapters 13-15, 22, 25, 27-40)

CH007 Major primary olefins

CH008 Other olefins

CH009 Primary aromatics

CH010 Organic commodity chemicals

CH011 Organic specialty chemicals

CH012 Certain organic chemicals

CH013 Miscellaneous inorganic chemicals

CH014 Inorganic acids

CH015 Chlor-alkali chemicals

CH016 Fertilizers

CH017 Paints, inks, and related items, and

certain components thereof
A-4

Chemicals and related products

sector--Continued

CH018 Synthetic organic pigments

CH019 Synthetic dyes and azoic couplers

CH020 Synthetic tanning agents

CH021 Natural tanning and dyeing materials

CH022 Photographic chemicals and

preparations

CH023 Pesticide products and formulations

CH024 Adhesives and glues

CH025 Medicinal chemicals

CH026 Essential oils and other flavoring

materials

CH027 Perfumes, cosmetics, and toiletries

CH028 Soaps, detergents, and surface-active

agents

CH029 Miscellaneous chemicals and specialties

CH030 Explosives, propellant powders, and

related items

CH031 Polyethylene resins in primary forms

CH032 Polypropylene resins in primary forms

CH033 Polyvinyl chloride resins in primary

forms

CH034 Styrene polymers in primary forms

CH035 Saturated polyester resins

CH036 Other plastics in primary forms

CH037 Styrene-butadiene rubber in primary

forms

CH038 Other synthetic rubber

CH039 Pneumatic tires and tubes (new)

CH040 Other tires

CH041 Miscellaneous plastic products

CH042 Miscellaneous rubber products

CH043 Gelatin

CH044 Natural rubber

Energy-related products sector

(HTS chapters 27-29, 34, 36, 38)

CH001 Electrical energy

CH002 Nuclear materials

CH003 Coal, coke, and related chemical

products

CH004 Crude petroleum

CH005 Petroleum products

CH006 Natural gas and components

Textiles and apparel, and footwear sectors

(HTS chapters 39, 40, 42, 43, 50-65)

CH045 Fibers and yarns, except raw cotton and

raw wool

CH046 Fabrics

CH047 Carpets and rugs

CH048 Home furnishings

CH049 Apparel

CH050 Miscellaneous textile products

CH051 Footwear

Minerals and metals sector

(HTS chapters 25, 26, 68-76, 78-84)

MM001 Clays and related mineral products

MM002 Fluorspar and miscellaneous mineral

substances

MM003 Iron ores and concentrates

MM004 Copper ores and concentrates

MM005 Lead ores, concentrates, and residues

MM006 Zinc ores, concentrates, and residues

MM007 Certain ores, concentrates, ash, and

residues

MM008 Precious metal ores and concentrates

MM009 Cement, stone, and related products

MM010 Industrial ceramics

MM011 Ceramic bricks and similar articles

MM012 Ceramic floor and wall tiles

MM013 Ceramic household articles

MM014 Flat glass

MM015 Glass containers

MM016 Household glassware

MM017 Miscellaneous glass products

MM018 Fiberglass insulation products

MM019 Natural and synthetic gemstones

MM020 Precious metals and non-numismatic

coins

MM021 Primary iron products

MM022 Ferroalloys

MM023 Iron and steel waste and scrap

MM024 Abrasive and ferrous products

MM025 Steel mill products

MM026 Steel pipe and tube fittings and certain

cast products

MM027 Fabricated structurals

MM028 Metal construction components

MM029 Metallic containers
A-5

Minerals and metals sector--Continued

MM030 Wire products of base metal

MM031 Miscellaneous products of base metal

MM032 Industrial fasteners of base metal

MM033 Cooking and kitchen ware

MM034 Metal and ceramic sanitary ware

MM035 Construction castings and other

cast-iron articles

MM036 Copper and related articles

MM037 Unwrought aluminum

MM038 Aluminum mill products

MM039 Lead and related articles

MM040 Zinc and related articles

MM041 Certain base metals and chemical

elements

MM042 Nonpowered handtools

MM043 Certain cutlery, sewing implements, and

related products

MM044 Table flatware and related products

MM045 Certain builders' hardware

Machinery sector

(HTS chapters 84, 85, 87)

MM068 Wiring harnesses for motor vehicles

MM069 Pumps for motor vehicles

MM070 Pumps for liquids

MM071 Air-conditioning equipment and parts

MM072 Industrial thermal-processing equipment

and furnaces

MM073 Household appliances, including

commercial applications

MM074 Centrifuges and filtering and purifying

equipment

MM075 Wrapping, packaging, and can-sealing

machinery

MM076 Scales and weighing machinery

MM077 Mineral processing machinery

MM078 Farm and garden machinery and

equipment

MM079 Industrial food-processing and related

machinery

MM080 Pulp, paper, and paperboard machinery

MM081 Printing and related machinery

MM082 Textile machinery

MM083 Metal rolling mills

MM084 Metal cutting machine tools and

machine tool accessories

MM085 Metal forming machine tools

MM086 Non-metalworking machine tools

MM087 Semiconductor manufacturing

equipment and robotics

MM088 Taps, cocks, valves, and similar devices

MM089 Mechanical power transmission

equipment

MM090 Boilers, turbines, and related machinery

MM091 Electric motors, generators, and related

equipment

MM092 Electrical transformers, static

converters, and inductors

MM093 Portable electric handtools

MM094 Nonelectrically powered handtools and

parts thereof

MM095 Electric lamps (bulbs) and portable

electric lights

MM096 Welding and soldering equipment

MM097 Nonautomotive insulated electrical wire

and related products

MM098 Miscellaneous machinery

MM099 Molds and molding machinery

Transportation equipment sector

(HTS chapters 84-89)

ET001 Aircraft engines and gas turbines

ET002 Internal combustion piston engines,

other than for aircraft

ET003 Forklift trucks and similar industrial

vehicles

ET004 Construction and mining equipment

ET005 Ball and rollers bearings

ET006 Primary cells and batteries and electric

storage batteries

ET007 Ignition, starting, lighting, and other

electrical equipment

ET008 Rail locomotive and rolling stock

ET009 Motor vehicles

ET010 Certain motor-vehicle parts

ET011 Motorcycles, mopeds, and parts

ET012 Miscellaneous vehicles and

transportation-related equipment
A-6

Transportation equipment sector--

Continued

ET013 Aircraft, spacecraft, and related

equipment

ET014 Ships, tugs, pleasure boats, and similar

vessels

ET015 Motors and engines, except internal

combustion, aircraft, or electric

Electronic products sector

(HTS chapters 37, 84, 85, 88, 90, 91)

ET016 Office machines

ET017 Telephone and telegraph apparatus

ET018 Consumer electronics (except

televisions)

ET019 Blank media

ET020 Prerecorded media

ET021 Navigational instruments and remote

control apparatus

ET022 Television receivers and video monitors

ET023 Radio and television broadcasting

equipment

ET024 Electric sound and visual signaling

apparatus

ET025 Electrical capacitors and resistors

ET026 Printed circuits

ET027 Circuit apparatus exceeding 1000V

ET028 Circuit apparatus not exceeding 1000V

ET029 Circuit apparatus assemblies

ET030 Parts of circuit apparatus

ET031 Cathode-ray tubes

ET032 Electron tubes other than CRTs

ET033 Semiconductors and integrated circuits

ET034 Miscellaneous electrical equipment

ET035 Computers, peripherals, and parts

ET036 Photographic film and paper

ET037 Optical fibers, optical fiber bundles and

cables

ET038 Optical goods, including ophthalmic

goods

ET039 Photographic cameras and equipment

ET040 Medical goods

ET041 Watches and clocks

ET042 Drawing, drafting, and calculating

instruments

ET043 Measuring, testing, and controlling

instruments

Miscellaneous manufactures sector

(HTS chapters 42, 66, 67, 71, 87, 92-97)

MM046 Luggage, handbags, and flat goods

MM047 Certain other leather goods

MM048 Musical instruments and accessories

MM049 Umbrellas, whips, riding crops, and

canes

MM050 Silverware and related articles of

precious metal

MM051 Precious jewelry and related articles

MM052 Costume jewelry and related articles

MM053 Bicycles and certain parts

MM054 Furniture

MM055 Writing instruments and related articles

MM056 Lamps and lighting fittings

MM057 Prefabricated buildings

MM058 Dolls

MM059 Toys

MM060 Games

MM061 Sporting goods

MM062 Smokers' articles

MM063 Brooms, brushes, and hair grooming

articles

MM064 Works of art and miscellaneous

manufactured goods

MM065 Apparel fasteners

MM066 Arms and ammunition

MM067 Seats for motor vehicles and aircraft

 

1

 This coding system (e.g., AG001) is used by the USITC to identify major groupings of the U.S. Harmonized

Tariff Schedule (HTS) headings/subheadings and corresponding export categories for trade monitoring purposes.

See app. B for industry and trade data for each grouping.

 

2 Products in some HTS chapters are divided between sectors monitored by the Commission; however, no

products are in more than one sector. Chapter 77 of the HTS is not used and is reserved for possible future use.

Chapters 98-99 of the HTS are for special classification provisions.
,,,,,,,,,,,,,,,,

APPENDIX B

Profile of U.S. Industry and Market, by

Industry/Commodity Groups, 1995-99

Note--These data have been estimated by the Commission’s international trade analysts on the basis of

primary and secondary data sources including discussion with various Government and industry contacts.

These estimated data are subject to change either from secondary sources or from detailed surveys the

Commission often conducts in the course of statutory investigation or other work. Furthermore, these data

may undergo adjustments based on revisions in tariff nomenclature, classification practices, or redefinitions

of industry classes. Moreover, certain industry/commodity groups reflect significant changes from those in

previous years’ reports; hence, basic information on establishments, employees, capacity utilization, and

shipments or production have been re-estimated for the full 5-year period (1995-99) for the affected

industry/commodity groups. Likewise, export and import data reported over the full period reflect these

revisions to the industry/commodity groups.

Table B-1 

Agricultural products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-3

AG001 Certain miscellaneous animals and meats:

Number of establishments ............... 132,800 136,300 130,700 126,800 134,500

Employees (thousands) ................. 149 140 135 141 148

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. production (million dollars) ........... 6,700 7,450 7,600 7,150 7,650

U.S. exports (million dollars) ............. 1,783 1,895 1,848 1,859 1,754

U.S. imports (million dollars) ............. 1,071 1,146 1,262 1,373 1,513

Apparent U.S. consumption (million dollars) . . 5,987 6,702 7,014 6,665 7,409

Trade balance (million dollars) ............ 713 748 586 485 241

Ratio of imports to consumption (percent) ... 17.9 17.1 18.0 20.6 20.4

Ratio of exports to production (percent) ..... 26.6 25.4 24.3 26.0 22.9

AG002 Cattle and beef:

Number of establishments ............... 1,182,394 1,195,200 1,169,100 1,149,200 1,097,750

Employees (thousands) ................. 1,292 1,269 1,152 1,238 1,240

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. production (million dollars) ........... 41,878 40,768 40,670 35,859 37,900

U.S. exports (million dollars) ............. 2,648 2,447 2,573 2,382 2,753

U.S. imports (million dollars) ............. 2,627 2,248 2,534 2,752 2,905

Apparent U.S. consumption (million dollars) . . 41,857 40,569 40,631 36,229 38,052

Trade balance (million dollars) ............ 21 199 39 -370 -152

Ratio of imports to consumption (percent) ... 6.3 5.5 6.2 7.6 7.6

Ratio of exports to production (percent) ..... 6.3 6.0 6.3 6.6 7.3

AG003 Swine and pork:

Number of establishments ............... 206,087 158,250 138,700 115,137 99,200

Employees (thousands) ................. 277 216 201 179 105

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. production (million dollars) ........... 17,911 21,049 21,227 18,479 18,300

U.S. exports (million dollars) ............. 748 918 943 934 932

U.S. imports (million dollars) ............. 566 742 792 714 717

Apparent U.S. consumption (million dollars) . . 17,730 20,873 21,075 18,259 18,085

Trade balance (million dollars) ............ 181 176 152 220 215

Ratio of imports to consumption (percent) ... 3.2 3.6 3.8 3.9 4.0

Ratio of exports to production (percent) ..... 4.2 4.4 4.4 5.1 5.1

AG004 Sheep and meat of sheep:

Number of establishments ............... 81,070 77,010 74,710 70,020 67,940

Employees (thousands) ................. 83 77 76 70 68

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 478 477 462 373 423

U.S. exports (million dollars) ............. 19 21 65 35 25

U.S. imports (million dollars) ............. 85 119 144 166 179

Apparent U.S. consumption (million dollars) . . 544 575 540 504 578

Trade balance (million dollars) ............ -66 -98 -78 -131 -155

Ratio of imports to consumption (percent) ... 15.6 20.6 26.6 32.9 31.1

Ratio of exports to shipments (percent) ..... 4.1 4.4 14.2 9.4 5.9

AG005 Poultry:

Number of establishments ............... 450 452 450 440 430

Employees (thousands) ................. 195 190 190 185 180

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

2

)

U.S. production (million dollars) ........... 14,600 17,095 17,105 17,200 17,300

U.S. exports (million dollars) ............. 2,149 2,589 2,515 2,255 1,878

U.S. imports (million dollars) ............. 31 35 43 46 57

Apparent U.S. consumption (million dollars) . . 12,482 14,541 14,633 14,990 15,479

Trade balance (million dollars) ............ 2,118 2,554 2,472 2,210 1,821

Ratio of imports to consumption (percent) ... 0.2 0.2 0.3 0.3 0.4

Ratio of exports to production (percent) ..... 14.7 15.1 14.7 13.1 10.9
Table B-1--Continued

Agricultural products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-4

AG006 Fresh or frozen fish:

Number of establishments ............... 1,456 1,394 1,421 1,400 1,400

Employees (thousands) ................. 41 39 40 39 40

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

2

)

U.S. shipments (million dollars) ........... 5,982 5,768 5,517 6,000 6,000

U.S. exports (million dollars) ............. 1,998 1,820 1,609 1,289 1,634

U.S. imports (million dollars) ............. 2,193 2,229 2,471 2,641 2,945

Apparent U.S. consumption (million dollars) . . 6,177 6,177 6,379 7,353 7,310

Trade balance (million dollars) ............ -195 -409 -862 -1,353 -1,310

Ratio of imports to consumption (percent) ... 35.5 36.1 38.7 35.9 40.3

Ratio of exports to shipments (percent) ..... 33.4 31.5 29.2 21.5 27.2

AG007 Canned fish:

Number of establishments ............... 40 37 38 36 36

Employees (thousands) ................. 8 7 7 7 7

Capacity utilization (percent) ............. 80 70 65 60 65

U.S. shipments (million dollars) ........... 1,544 1,429 1,361 1,416 1,500

U.S. exports (million dollars) ............. 203 185 167 170 222

U.S. imports (million dollars) ............. 434 453 486 530 611

Apparent U.S. consumption (million dollars) . . 1,775 1,698 1,680 1,776 1,889

Trade balance (million dollars) ............ -231 -269 -319 -360 -389

Ratio of imports to consumption (percent) ... 24.5 26.7 28.9 29.9 32.3

Ratio of exports to shipments (percent) ..... 13.1 12.9 12.3 12.0 14.8

AG008 Cured and other fish:

Number of establishments ............... 128 117 114 114 114

Employees (thousands) ................. 8 11 9 9 9

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

2

)

U.S. shipments (million dollars) ........... 99 113 143 132 130

U.S. exports (million dollars) ............. 226 242 159 146 166

U.S. imports (million dollars) ............. 236 241 249 252 277

Apparent U.S. consumption (million dollars) . . 109 112 233 238 241

Trade balance (million dollars) ............ -10 1 -90 -106 -111

Ratio of imports to consumption (percent) ... 216.9 215.0 106.8 106.1 115.0

Ratio of exports to shipments (percent) ..... 228.3 213.8 111.1 110.9 127.8

AG009 Shellfish:

Number of establishments ............... 800 750 750 725 700

Employees (thousands) ................. 60 58 59 60 60

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. production (million dollars) ........... 1,800 1,800 1,900 2,000 2,200

U.S. exports (million dollars) ............. 788 739 720 589 752

U.S. imports (million dollars) ............. 3,885 3,742 4,473 4,654 5,072

Apparent U.S. consumption (million dollars) . . 4,897 4,803 5,653 6,065 6,519

Trade balance (million dollars) ............ -3,097 -3,003 -3,753 -4,065 -4,319

Ratio of imports to consumption (percent) ... 79.3 77.9 79.1 76.7 77.8

Ratio of exports to production (percent) ..... 43.8 41.0 37.9 29.5 34.2

AG010 Dairy produce:

Number of establishments ............... 143,000 135,000 130,000 140,000 130,000

Employees (thousands) ................. 662 650 640 630 620

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

2

)

U.S. shipments (million dollars) ........... 55,800 58,100 60,500 62,000 63,000

U.S. exports (million dollars) ............. 636 506 618 592 591

U.S. imports (million dollars) ............. 1,052 1,198 1,109 1,325 1,387

Apparent U.S. consumption (million dollars) . . 56,216 58,793 60,992 62,733 63,796

Trade balance (million dollars) ............ -416 -693 -492 -733 -796

Ratio of imports to consumption (percent) ... 1.9 2.0 1.8 2.1 2.2

Ratio of exports to shipments (percent) ..... 1.1 0.9 1.0 1.0 0.9
Table B-1--Continued

Agricultural products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-5

AG011 Eggs:

Number of establishments ............... 70 68 68 67 65

Employees (thousands) ................. 8 8 8 8 8

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

2

)

U.S. production (million dollars) ........... 6,216 6,378 6,473 6,659 6,700

U.S. exports (million dollars) ............. 164 207 207 207 155

U.S. imports (million dollars) ............. 20 24 19 14 20

Apparent U.S. consumption (million dollars) . . 6,072 6,195 6,285 6,466 6,566

Trade balance (million dollars) ............ 144 183 188 193 134

Ratio of imports to consumption (percent) ... 0.3 0.4 0.3 0.2 0.3

Ratio of exports to production (percent) ..... 2.6 3.2 3.2 3.1 2.3

AG012 Sugar and other sweeteners:

Number of establishments ............... 95 95 95 95 93

Employees (thousands) ................. 30 30 29 28 28

Capacity utilization (percent) ............. 93 94 93 89 89

U.S. shipments (million dollars) ........... 8,666 10,000 10,010 10,020 10,050

U.S. exports (million dollars) ............. 354 381 359 381 357

U.S. imports (million dollars) ............. 885 1,407 1,321 1,068 879

Apparent U.S. consumption (million dollars) . . 9,197 11,027 10,971 10,707 10,572

Trade balance (million dollars) ............ -531 -1,027 -961 -687 -522

Ratio of imports to consumption (percent) ... 9.6 12.8 12.0 10.0 8.3

Ratio of exports to shipments (percent) ..... 4.1 3.8 3.6 3.8 3.6

AG013 Animal feeds:

Number of establishments ............... 1,875 1,850 1,825 1,800 1,800

Employees (thousands) ................. 56 54 53 53 53

Capacity utilization (percent) ............. 73 74 72 72 72

U.S. production (million dollars) ........... 30,980 35,181 36,899 37,486 37,960

U.S. exports (million dollars) ............. 3,815 4,370 4,831 4,307 3,621

U.S. imports (million dollars) ............. 510 689 717 661 604

Apparent U.S. consumption (million dollars) . . 27,675 31,500 32,785 33,840 34,943

Trade balance (million dollars) ............ 3,305 3,681 4,114 3,646 3,017

Ratio of imports to consumption (percent) ... 1.8 2.2 2.2 2.0 1.7

Ratio of exports to production (percent) ..... 12.3 12.4 13.1 11.5 9.5

AG014 Live plants:

Number of establishments ............... 24,000 24,000 26,000 28,000 30,000

Employees (thousands) ................. 120 120 120 130 139

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 9,676 9,995 10,572 11,744 12,175

U.S. exports (million dollars) ............. 96 92 117 142 144

U.S. imports (million dollars) ............. 283 312 336 387 428

Apparent U.S. consumption (million dollars) . . 9,863 10,215 10,791 11,989 12,460

Trade balance (million dollars) ............ -187 -220 -219 -245 -285

Ratio of imports to consumption (percent) ... 2.9 3.1 3.1 3.2 3.4

Ratio of exports to shipments (percent) ..... 1.0 0.9 1.1 1.2 1.2

AG015 Seeds:

Number of establishments ............... 12,235 12,317 12,398 12,479 12,561

Employees (thousands) ................. 138 138 (

2

) (

2

) (

2

)

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

2

)

U.S. shipments (million dollars) ........... 2,000 2,000 (

2

) (

2

) (

2

)

U.S. exports (million dollars) ............. 587 648 720 706 697

U.S. imports (million dollars) ............. 236 298 361 400 428

Apparent U.S. consumption (million dollars) . . 1,649 1,650 (

2

) (

2

) (

2

)

Trade balance (million dollars) ............ 351 350 359 306 269

Ratio of imports to consumption (percent) ... 14.3 18.1 (

2

) (

2

) (

2

)

Ratio of exports to shipments (percent) ..... 29.4 32.4 (

2

) (

2

) (

2

)
Table B-1--Continued

Agricultural products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-6

AG016 Cut flowers:

Number of establishments ............... 2,500 2,400 2,400 2,400 (

2

)

Employees (thousands) ................. 35 34 34 34 (

2

)

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 409 447 462 437 451

U.S. exports (million dollars) ............. 40 48 49 45 41

U.S. imports (million dollars) ............. 512 573 595 614 592

Apparent U.S. consumption (million dollars) . . 880 972 1,008 1,007 1,001

Trade balance (million dollars) ............ -471 -525 -546 -570 -550

Ratio of imports to consumption (percent) ... 58.1 58.9 59.0 61.0 59.1

Ratio of exports to shipments (percent) ..... 9.9 10.6 10.6 10.2 9.2

AG017 Miscellaneous vegetable substances:

Number of establishments ............... 10,500 10,000 9,500 9,000 9,000

Employees (thousands) ................. (

2

) (

2

) (

2

) (

2

) (

2

)

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. production (million dollars) ........... 1,200 1,100 1,000 900 900

U.S. exports (million dollars) ............. 458 449 470 462 453

U.S. imports (million dollars) ............. 762 792 855 993 839

Apparent U.S. consumption (million dollars) . . 1,505 1,444 1,386 1,431 1,286

Trade balance (million dollars) ............ -305 -344 -386 -531 -386

Ratio of imports to consumption (percent) ... 50.7 54.9 61.7 69.4 65.3

Ratio of exports to production (percent) ..... 38.1 40.8 47.0 51.4 50.4

AG018 Fresh, chilled, or frozen vegetables:

Number of establishments ............... 36,100 36,000 35,500 33,500 31,000

Employees (thousands) ................. 45 46 44 43 40

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. production (million dollars) ........... 4,400 4,530 4,100 4,200 4,300

U.S. exports (million dollars) ............. 1,148 1,070 1,178 1,199 1,201

U.S. imports (million dollars) ............. 1,586 1,840 1,857 2,313 2,236

Apparent U.S. consumption (million dollars) . . 4,838 5,300 4,778 5,314 5,335

Trade balance (million dollars) ............ -438 -770 -678 -1,114 -1,035

Ratio of imports to consumption (percent) ... 32.8 34.7 38.9 43.5 41.9

Ratio of exports to production (percent) ..... 26.1 23.6 28.7 28.6 27.9

AG019 Prepared or preserved vegetables, mushrooms,

 and olives:

Number of establishments ............... 1,690 1,700 1,680 1,620 1,600

Employees (thousands) ................. 4 4 4 4 4

Capacity utilization (percent) ............. 87 88 85 87 89

U.S. production (million dollars) ........... 8,200 8,500 8,200 8,350 8,400

U.S. exports (million dollars) ............. 1,316 1,332 1,489 1,617 1,565

U.S. imports (million dollars) ............. 982 981 1,075 1,218 1,384

Apparent U.S. consumption (million dollars) . . 7,866 8,149 7,786 7,951 8,220

Trade balance (million dollars) ............ 334 351 414 399 180

Ratio of imports to consumption (percent) ... 12.5 12.0 13.8 15.3 16.8

Ratio of exports to production (percent) ..... 16.0 15.7 18.2 19.4 18.6

AG020 Edible nuts:

Number of establishments ............... 38,000 38,000 37,000 37,000 37,000

Employees (thousands) ................. 380 380 380 380 380

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 2,730 2,695 3,027 2,477 2,542

U.S. exports (million dollars) ............. 1,462 1,666 1,491 1,392 1,212

U.S. imports (million dollars) ............. 509 570 630 660 794

Apparent U.S. consumption (million dollars) . . 1,777 1,599 2,166 1,745 2,124

Trade balance (million dollars) ............ 953 1,096 861 732 418

Ratio of imports to consumption (percent) ... 28.7 35.7 29.1 37.8 37.4

Ratio of exports to shipments (percent) ..... 53.6 61.8 49.2 56.2 47.7
Table B-1--Continued

Agricultural products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-7

AG021 Tropical fruit:

Number of establishments ............... 9,000 9,000 9,000 9,000 8,500

Employees (thousands) ................. 25 25 25 25 20

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 355 403 376 387 498

U.S. exports (million dollars) ............. 76 79 70 60 64

U.S. imports (million dollars) ............. 1,337 1,391 1,466 1,495 1,574

Apparent U.S. consumption (million dollars) . . 1,617 1,715 1,772 1,821 2,008

Trade balance (million dollars) ............ -1,262 -1,312 -1,396 -1,434 -1,510

Ratio of imports to consumption (percent) ... 82.7 81.1 82.7 82.1 78.4

Ratio of exports to shipments (percent) ..... 21.3 19.5 18.7 15.6 12.8

AG022 Citrus fruit:

Number of establishments ............... 17,865 17,755 17,650 17,562 17,450

Employees (thousands) ................. 94 93 93 92 91

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. production (million dollars) ........... 2,329 2,516 2,574 2,600 2,500

U.S. exports (million dollars) ............. 740 700 735 672 498

U.S. imports (million dollars) ............. 132 177 201 211 331

Apparent U.S. consumption (million dollars) . . 1,721 1,992 2,039 2,139 2,333

Trade balance (million dollars) ............ 608 524 535 461 167

Ratio of imports to consumption (percent) ... 7.7 8.9 9.8 9.9 14.2

Ratio of exports to production (percent) ..... 31.8 27.8 28.6 25.9 19.9

AG023 Deciduous fruit:

Number of establishments ............... 82,000 82,000 82,000 82,000 81,000

Employees (thousands) ................. 160 160 160 160 155

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 2,305 3,003 2,215 1,886 2,058

U.S. exports (million dollars) ............. 718 731 780 665 743

U.S. imports (million dollars) ............. 181 197 187 177 268

Apparent U.S. consumption (million dollars) . . 1,767 2,469 1,623 1,398 1,583

Trade balance (million dollars) ............ 538 534 592 488 475

Ratio of imports to consumption (percent) ... 10.2 8.0 11.6 12.7 16.9

Ratio of exports to shipments (percent) ..... 31.2 24.3 35.2 35.3 36.1

AG024 Other fresh fruit:

Number of establishments ............... 60,000 60,000 60,000 60,000 55,000

Employees (thousands) ................. 120 120 120 120 115

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 1,859 2,380 2,309 2,222 2,383

U.S. exports (million dollars) ............. 488 507 557 484 562

U.S. imports (million dollars) ............. 615 744 717 890 1,031

Apparent U.S. consumption (million dollars) . . 1,986 2,617 2,469 2,628 2,852

Trade balance (million dollars) ............ -127 -237 -160 -406 -469

Ratio of imports to consumption (percent) ... 31.0 28.4 29.0 33.9 36.1

Ratio of exports to shipments (percent) ..... 26.3 21.3 24.1 21.8 23.6

AG025 Dried fruit other than tropical:

Number of establishments ............... 40 40 40 40 40

Employees (thousands) ................. 9 9 9 9 9

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

2

)

U.S. shipments (million dollars) ........... 748 861 806 665 649

U.S. exports (million dollars) ............. 382 388 386 385 379

U.S. imports (million dollars) ............. 47 58 61 60 78

Apparent U.S. consumption (million dollars) . . 414 531 481 340 348

Trade balance (million dollars) ............ 334 330 325 325 301

Ratio of imports to consumption (percent) ... 11.4 11.0 12.7 17.7 22.3

Ratio of exports to shipments (percent) ..... 51.0 45.1 47.8 57.9 58.4
Table B-1--Continued

Agricultural products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-8

AG026 Frozen fruit:

Number of establishments ............... 40 40 40 40 40

Employees (thousands) ................. 6 6 6 6 6

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

2

)

U.S. shipments (million dollars) ........... 650 648 568 664 701

U.S. exports (million dollars) ............. 77 79 79 92 89

U.S. imports (million dollars) ............. 68 82 88 89 125

Apparent U.S. consumption (million dollars) . . 641 651 577 661 738

Trade balance (million dollars) ............ 9 -3 -9 3 -37

Ratio of imports to consumption (percent) ... 10.7 12.6 15.3 13.4 17.0

Ratio of exports to shipments (percent) ..... 11.9 12.2 14.0 13.8 12.7

AG027 Prepared or preserved fruit:

Number of establishments ............... 200 200 200 200 200

Employees (thousands) ................. 20 20 20 20 20

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

2

)

U.S. shipments (million dollars) ........... 3,946 3,882 4,262 4,411 4,499

U.S. exports (million dollars) ............. 179 173 182 185 180

U.S. imports (million dollars) ............. 415 484 545 484 576

Apparent U.S. consumption (million dollars) . . 4,182 4,193 4,625 4,710 4,895

Trade balance (million dollars) ............ -236 -311 -363 -299 -396

Ratio of imports to consumption (percent) ... 9.9 11.5 11.8 10.3 11.8

Ratio of exports to shipments (percent) ..... 4.5 4.5 4.3 4.2 4.0

AG028 Coffee and tea:

Number of establishments ............... (

2

) (

2

) 247 247 247

Employees (thousands) ................. (

2

) (

2

) 13 13 13

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

2

)

U.S. shipments (million dollars) ........... (

2

) (

2

) (

2

) (

2

) (

2

)

U.S. exports (million dollars) ............. 229 237 254 263 284

U.S. imports (million dollars) ............. 3,427 2,958 4,071 3,656 3,114

Apparent U.S. consumption (million dollars) . . (

2

) (

2

) (

2

) (

2

) (

2

)

Trade balance (million dollars) ............ -3,198 -2,721 -3,816 -3,393 -2,830

Ratio of imports to consumption (percent) ... (

2

) (

2

) (

2

) (

2

) (

2

)

Ratio of exports to shipments (percent) ..... (

2

) (

2

) (

2

) (

2

) (

2

)

AG029 Spices:

Number of establishments ............... 74 74 105 105 105

Employees (thousands) ................. 8 8 8 8 8

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

2

)

U.S. shipments (million dollars) ........... (

2

) (

2

) 3,206 3,206 3,206

U.S. exports (million dollars) ............. 46 55 58 66 72

U.S. imports (million dollars) ............. 290 349 416 455 530

Apparent U.S. consumption (million dollars) . . (

2

) (

2

) 3,564 3,595 3,664

Trade balance (million dollars) ............ -243 -294 -358 -389 -458

Ratio of imports to consumption (percent) ... (

2

) (

2

) 11.7 12.7 14.5

Ratio of exports to shipments (percent) ..... (

2

) (

2

) 1.8 2.1 2.3

AG030 Cereals:

Number of establishments ............... 355,000 339,000 322,000 298,000 282,000

Employees (thousands) ................. (

2

) (

2

) (

2

) (

2

) (

2

)

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. production (million dollars) ........... 34,700 37,700 39,900 35,600 28,770

U.S. exports (million dollars) ............. 14,674 16,751 11,106 9,991 10,129

U.S. imports (million dollars) ............. 684 791 984 773 732

Apparent U.S. consumption (million dollars) . . 20,710 21,739 29,778 26,382 19,372

Trade balance (million dollars) ............ 13,990 15,961 10,122 9,218 9,398

Ratio of imports to consumption (percent) ... 3.3 3.6 3.3 2.9 3.8

Ratio of exports to production (percent) ..... 42.3 44.4 27.8 28.1 35.2
Table B-1--Continued

Agricultural products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-9

AG031 Milled grains, malts, and starches:

Number of establishments ............... 490 500 505 510 515

Employees (thousands) ................. 21 21 21 21 21

Capacity utilization (percent) ............. 88 89 86 83 (

2

)

U.S. production (million dollars) ........... 11,193 11,942 12,522 12,532 12,753

U.S. exports (million dollars) ............. 498 429 435 417 439

U.S. imports (million dollars) ............. 221 265 233 258 261

Apparent U.S. consumption (million dollars) . . 10,916 11,778 12,320 12,373 12,575

Trade balance (million dollars) ............ 277 164 202 159 178

Ratio of imports to consumption (percent) ... 2.0 2.3 1.9 2.1 2.1

Ratio of exports to production (percent) ..... 4.5 3.6 3.5 3.3 3.4

AG032 Oilseeds:

Number of establishments ............... 355,000 339,000 322,000 298,000 282,000

Employees (thousands) ................. (

2

) (

2

) (

2

) (

2

) (

2

)

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. production (million dollars) ........... 15,030 16,000 19,100 18,900 14,900

U.S. exports (million dollars) ............. 5,661 7,638 7,700 5,166 4,776

U.S. imports (million dollars) ............. 221 279 335 315 263

Apparent U.S. consumption (million dollars) . . 9,591 8,642 11,735 14,049 10,387

Trade balance (million dollars) ............ 5,439 7,358 7,365 4,851 4,513

Ratio of imports to consumption (percent) ... 2.3 3.2 2.9 2.2 2.5

Ratio of exports to production (percent) ..... 37.7 47.7 40.3 27.3 32.1

AG033 Animal or vegetable fats and oils:

Number of establishments ............... 527 523 519 515 510

Employees (thousands) ................. 27 27 26 26 26

Capacity utilization (percent) ............. 83 80 84 90 92

U.S. shipments (million dollars) ........... 7,780 8,220 8,660 10,040 7,900

U.S. exports (million dollars) ............. 2,529 1,826 2,173 2,763 1,947

U.S. imports (million dollars) ............. 1,265 1,480 1,517 1,475 1,348

Apparent U.S. consumption (million dollars) . . 6,516 7,874 8,004 8,751 7,301

Trade balance (million dollars) ............ 1,264 346 656 1,289 599

Ratio of imports to consumption (percent) ... 19.4 18.8 19.0 16.9 18.5

Ratio of exports to shipments (percent) ..... 32.5 22.2 25.1 27.5 24.7

AG034 Pasta, cereals, and other bakery goods:

Number of establishments ............... 4,250 4,300 4,400 4,450 4,450

Employees (thousands) ................. 295 300 300 300 300

Capacity utilization (percent) ............. 77 77 77 71 72

U.S. production (million dollars) ........... 53,961 52,691 57,181 58,799 60,470

U.S. exports (million dollars) ............. 824 901 992 1,051 1,044

U.S. imports (million dollars) ............. 1,088 1,201 1,322 1,461 1,637

Apparent U.S. consumption (million dollars) . . 54,225 52,991 57,510 59,209 61,063

Trade balance (million dollars) ............ -264 -300 -329 -410 -593

Ratio of imports to consumption (percent) ... 2.0 2.3 2.3 2.5 2.7

Ratio of exports to production (percent) ..... 1.5 1.7 1.7 1.8 1.7

AG035 Sauces, condiments, and soups:

Number of establishments ............... 240 245 250 250 255

Employees (thousands) ................. 30 30 30 30 30

Capacity utilization (percent) ............. 69 69 68 68 68

U.S. production (million dollars) ........... 14,457 14,311 15,210 15,514 15,828

U.S. exports (million dollars) ............. 419 462 530 529 587

U.S. imports (million dollars) ............. 267 313 353 396 457

Apparent U.S. consumption (million dollars) . . 14,305 14,163 15,033 15,381 15,698

Trade balance (million dollars) ............ 152 148 177 133 130

Ratio of imports to consumption (percent) ... 1.9 2.2 2.3 2.6 2.9

Ratio of exports to production (percent) ..... 2.9 3.2 3.5 3.4 3.7
Table B-1--Continued

Agricultural products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-10

AG036 Infant formulas, malt extracts, and other edible

 preparations:

Number of establishments ............... 1,325 1,350 1,375 1,400 1,400

Employees (thousands) ................. 100 100 105 105 105

Capacity utilization (percent) ............. 68 68 65 72 72

U.S. production (million dollars) ........... 29,128 30,264 31,585 32,613 33,675

U.S. exports (million dollars) ............. 1,629 1,990 2,507 2,097 2,458

U.S. imports (million dollars) ............. 391 428 464 560 670

Apparent U.S. consumption (million dollars) . . 27,890 28,702 29,542 31,076 31,887

Trade balance (million dollars) ............ 1,238 1,562 2,043 1,537 1,788

Ratio of imports to consumption (percent) ... 1.4 1.5 1.6 1.8 2.1

Ratio of exports to production (percent) ..... 5.6 6.6 7.9 6.4 7.3

AG037 Cocoa, chocolate, and confectionery:

Number of establishments ............... 970 1,000 1,000 1,010 1,200

Employees (thousands) ................. 68 72 73 74 80

Capacity utilization (percent) ............. 74 74 68 72 85

U.S. shipments (million dollars) ........... 11,700 12,500 12,700 12,800 14,000

U.S. exports (million dollars) ............. 524 586 662 602 651

U.S. imports (million dollars) ............. 1,478 1,806 1,910 2,183 2,123

Apparent U.S. consumption (million dollars) . . 12,654 13,720 13,948 14,381 15,472

Trade balance (million dollars) ............ -954 -1,220 -1,248 -1,581 -1,472

Ratio of imports to consumption (percent) ... 11.7 13.2 13.7 15.2 13.7

Ratio of exports to shipments (percent) ..... 4.5 4.7 5.2 4.7 4.7

AG038 Fruit and vegetable juices:

Number of establishments ............... 98 98 98 97 95

Employees (thousands) ................. 149 149 148 147 145

Capacity utilization (percent) ............. 90 89 83 83 83

U.S. shipments (million dollars) ........... 2,276 2,500 2,700 2,750 2,900

U.S. exports (million dollars) ............. 652 642 677 668 748

U.S. imports (million dollars) ............. 635 929 856 677 796

Apparent U.S. consumption (million dollars) . . 2,258 2,787 2,878 2,759 2,948

Trade balance (million dollars) ............ 18 -287 -178 -9 -48

Ratio of imports to consumption (percent) ... 28.1 33.3 29.7 24.5 27.0

Ratio of exports to shipments (percent) ..... 28.7 25.7 25.1 24.3 25.8

AG039 Nonalcoholic beverages, excluding fruit and

 vegetable juices:

Number of establishments ............... 3,200 3,200 3,200 3,200 3,200

Employees (thousands) ................. 110 110 110 110 110

Capacity utilization (percent) ............. 70 71 67 67 67

U.S. shipments (million dollars) ........... 57,197 58,505 59,853 61,000 62,000

U.S. exports (million dollars) ............. 332 244 299 302 328

U.S. imports (million dollars) ............. 353 430 524 568 625

Apparent U.S. consumption (million dollars) . . 57,219 58,691 60,079 61,266 62,298

Trade balance (million dollars) ............ -22 -186 -226 -266 -298

Ratio of imports to consumption (percent) ... 0.6 0.7 0.9 0.9 1.0

Ratio of exports to shipments (percent) ..... 0.6 0.4 0.5 0.5 0.5

AG040 Malt beverages:

Number of establishments ............... 879 1,504 1,504 1,504 1,350

Employees (thousands) ................. 36 36 35 34 34

Capacity utilization (percent) ............. 76 76 75 82 82

U.S. shipments (million dollars) ........... 17,108 18,195 18,203 18,400 18,400

U.S. exports (million dollars) ............. 413 362 319 254 201

U.S. imports (million dollars) ............. 1,151 1,301 1,480 1,699 1,881

Apparent U.S. consumption (million dollars) . . 17,846 19,134 19,365 19,845 20,080

Trade balance (million dollars) ............ -738 -939 -1,162 -1,445 -1,680

Ratio of imports to consumption (percent) ... 6.4 6.8 7.6 8.6 9.4

Ratio of exports to shipments (percent) ..... 2.4 2.0 1.8 1.4 1.1
Table B-1--Continued

Agricultural products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-11

AG041 Wine and certain other fermented beverages:

Number of establishments ............... 1,820 1,994 1,994 1,994 2,000

Employees (thousands) ................. 14 14 15 15 16

Capacity utilization (percent) ............. 75 73 80 79 79

U.S. shipments (million dollars) ........... 4,674 5,410 5,843 5,843 (

2

)

U.S. exports (million dollars) ............. 236 320 415 532 541

U.S. imports (million dollars) ............. 1,159 1,435 1,716 1,881 2,210

Apparent U.S. consumption (million dollars) . . 5,597 6,525 7,144 7,192 (

2

)

Trade balance (million dollars) ............ -923 -1,115 -1,301 -1,349 -1,669

Ratio of imports to consumption (percent) ... 20.7 22.0 24.0 26.2 (

2

)

Ratio of exports to shipments (percent) ..... 5.0 5.9 7.1 9.1 (

2

)

AG042 Distilled spirits:

Number of establishments ............... 66 63 60 57 57

Employees (thousands) ................. 7 6 6 6 6

Capacity utilization (percent) ............. 66 65 65 63 63

U.S. shipments (million dollars) ........... 3,371 3,187 3,187 3,187 3,187

U.S. exports (million dollars) ............. 488 574 580 506 480

U.S. imports (million dollars) ............. 1,629 1,843 1,968 2,086 2,383

Apparent U.S. consumption (million dollars) . . 4,513 4,456 4,575 4,767 5,089

Trade balance (million dollars) ............ -1,142 -1,269 -1,388 -1,580 -1,902

Ratio of imports to consumption (percent) ... 36.1 41.4 43.0 43.8 46.8

Ratio of exports to shipments (percent) ..... 14.5 18.0 18.2 15.9 15.1

AG043 Unmanufactured tobacco:

Number of establishments ............... 117,491 115,232 112,973 110,000 100,000

Employees (thousands) ................. (

2

) (

2

) (

2

) (

2

) (

2

)

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. production (million dollars) ........... 3,084 3,140 3,328 3,328 3,461

U.S. exports (million dollars) ............. 1,400 1,390 1,553 1,459 1,294

U.S. imports (million dollars) ............. 550 923 1,089 771 711

Apparent U.S. consumption (million dollars) . . 2,234 2,672 2,864 2,640 2,878

Trade balance (million dollars) ............ 850 468 464 688 583

Ratio of imports to consumption (percent) ... 24.6 34.5 38.0 29.2 24.7

Ratio of exports to production (percent) ..... 45.4 44.3 46.7 43.8 37.4

AG044 Cigars and certain other manufactured tobacco:

Number of establishments ............... 57 57 57 57 57

Employees (thousands) ................. 6 5 5 5 5

Capacity utilization (percent) ............. 87 86 86 75 75

U.S. shipments (million dollars) ........... 2,264 2,130 2,130 2,130 2,000

U.S. exports (million dollars) ............. 452 503 547 661 651

U.S. imports (million dollars) ............. 117 207 419 377 301

Apparent U.S. consumption (million dollars) . . 1,930 1,835 2,002 1,846 1,650

Trade balance (million dollars) ............ 334 295 128 284 350

Ratio of imports to consumption (percent) ... 6.1 11.3 20.9 20.4 18.2

Ratio of exports to shipments (percent) ..... 19.9 23.6 25.7 31.0 32.5

AG045 Cigarettes:

Number of establishments ............... 11 11 11 11 10

Employees (thousands) ................. 25 28 25 23 21

Capacity utilization (percent) ............. 80 77 72 71 71

U.S. shipments (million dollars) ........... 26,967 28,247 28,247 28,247 29,252

U.S. exports (million dollars) ............. 4,770 4,736 4,409 4,166 3,232

U.S. imports (million dollars) ............. 51 38 44 59 112

Apparent U.S. consumption (million dollars) . . 22,248 23,549 23,882 24,141 26,132

Trade balance (million dollars) ............ 4,719 4,698 4,365 4,106 3,120

Ratio of imports to consumption (percent) ... 0.2 0.2 0.2 0.2 0.4

Ratio of exports to shipments (percent) ..... 17.7 16.8 15.6 14.7 11.0
Table B-1--Continued

Agricultural products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-12

AG046 Hides, skins, and leather:

Number of establishments ............... 1,220 1,220 1,220 1,220 1,220

Employees (thousands) ................. 18 18 18 18 18

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

2

)

U.S. shipments (million dollars) ........... 5,170 5,573 5,187 5,041 5,228

U.S. exports (million dollars) ............. 2,319 2,216 2,310 1,934 1,850

U.S. imports (million dollars) ............. 1,095 1,054 1,133 1,124 1,052

Apparent U.S. consumption (million dollars) . . 3,946 4,411 4,010 4,232 4,430

Trade balance (million dollars) ............ 1,224 1,162 1,177 809 798

Ratio of imports to consumption (percent) ... 27.7 23.9 28.2 26.6 23.7

Ratio of exports to shipments (percent) ..... 44.9 39.8 44.5 38.4 35.4

AG047 Furskins:

Number of establishments ............... 478 449 452 439 426

Employees (thousands) ................. 3 3 3 3 2

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 153 180 237 205 134

U.S. exports (million dollars) ............. 157 224 222 196 141

U.S. imports (million dollars) ............. 87 107 115 86 73

Apparent U.S. consumption (million dollars) . . 83 63 130 96 67

Trade balance (million dollars) ............ 70 117 107 109 67

Ratio of imports to consumption (percent) ... 105.3 169.8 88.2 90.2 109.8

Ratio of exports to shipments (percent) ..... 102.9 124.4 93.5 95.4 104.9

AG048 Wool and other animal hair:

Number of establishments ............... 81,070 77,010 74,710 70,020 67,940

Employees (thousands) ................. (

2

) (

2

) (

2

) (

2

) (

2

)

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. production (million dollars) ........... 86 55 60 42 28

U.S. exports (million dollars) ............. 35 20 17 13 22

U.S. imports (million dollars) ............. 214 173 179 141 70

Apparent U.S. consumption (million dollars) . . 265 209 223 170 76

Trade balance (million dollars) ............ -179 -154 -163 -128 -48

Ratio of imports to consumption (percent) ... 80.7 83.1 80.5 82.7 92.5

Ratio of exports to production (percent) ..... 40.5 35.8 27.6 30.0 79.8

AG049 Cotton, not carded or combed:

Number of establishments ............... 32,798 32,127 31,456 30,785 30,114

Employees (thousands) ................. (

2

) (

2

) 173,446 169,752 166,051

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. production (million dollars) ........... 6,573 6,410 5,981 4,141 3,836

U.S. exports (million dollars) ............. 3,681 2,715 2,682 2,545 968

U.S. imports (million dollars) ............. 10 283 3 14 136

Apparent U.S. consumption (million dollars) . . 2,902 3,978 3,302 1,609 3,004

Trade balance (million dollars) ............ 3,671 2,432 2,679 2,532 832

Ratio of imports to consumption (percent) ... 0.4 7.1 0.1 0.8 4.5

Ratio of exports to production (percent) ..... 56.0 42.4 44.8 61.5 25.2

AG050 Ethyl alcohol for nonbeverage purposes:

Number of establishments ............... 42 45 45 47 57

Employees (thousands) ................. 7 7 7 7 7

Capacity utilization (percent) ............. 80 78 80 80 78

U.S. production (million dollars) ........... 1,408 1,500 1,550 1,600 2,000

U.S. exports (million dollars) ............. 265 128 123 58 58

U.S. imports (million dollars) ............. 164 160 119 124 130

Apparent U.S. consumption (million dollars) . . 1,306 1,532 1,546 1,666 2,073

Trade balance (million dollars) ............ 102 -32 4 -66 -73

Ratio of imports to consumption (percent) ... 12.5 10.5 7.7 7.4 6.3

Ratio of exports to production (percent) ..... 18.8 8.5 7.9 3.6 2.9

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1 Capacity utilization could not be meaningfully calculated for this industry.

2 Not available.

Note.--Calculations based on unrounded data.
Table B-2 

Forest products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-13

AG051 Logs and rough wood products:

Number of establishments ............... 13,000 13,000 13,500 13,500 13,800

Employees (thousands) ................. 85 83 85 85 85

Capacity utilization (percent) ............. 90 92 92 92 92

U.S. shipments (million dollars) ........... 16,500 15,400 13,800 15,000 15,500

U.S. exports (million dollars) ............. 3,039 2,909 2,399 1,927 1,885

U.S. imports (million dollars) ............. 400 419 420 423 495

Apparent U.S. consumption (million dollars) . . 13,861 12,910 11,820 13,497 14,110

Trade balance (million dollars) ............ 2,639 2,490 1,980 1,503 1,390

Ratio of imports to consumption (percent) ... 2.9 3.2 3.6 3.1 3.5

Ratio of exports to shipments (percent) ..... 18.4 18.9 17.4 12.8 12.2

AG052 Lumber:

Number of establishments ............... 6,000 5,500 5,400 5,400 5,400

Employees (thousands) ................. 170 160 159 160 160

Capacity utilization (percent) ............. 90 90 90 90 (

1

)

U.S. shipments (million dollars) ........... 28,000 29,600 30,700 32,000 33,000

U.S. exports (million dollars) ............. 2,472 2,430 2,553 2,002 2,184

U.S. imports (million dollars) ............. 5,519 6,829 7,368 6,743 7,820

Apparent U.S. consumption (million dollars) . . 31,047 33,999 35,515 36,741 38,636

Trade balance (million dollars) ............ -3,047 -4,399 -4,815 -4,741 -5,636

Ratio of imports to consumption (percent) ... 17.8 20.1 20.7 18.4 20.2

Ratio of exports to shipments (percent) ..... 8.8 8.2 8.3 6.3 6.6

AG053 Moldings, millwork, and joinery:

Number of establishments ............... 4,500 5,000 5,200 5,300 5,400

Employees (thousands) ................. 110 120 160 170 170

Capacity utilization (percent) ............. 69 74 85 87 87

U.S. shipments (million dollars) ........... 15,400 16,500 22,900 25,000 25,000

U.S. exports (million dollars) ............. 456 563 642 548 545

U.S. imports (million dollars) ............. 969 1,171 1,594 1,924 2,521

Apparent U.S. consumption (million dollars) . . 15,913 17,107 23,852 26,376 26,976

Trade balance (million dollars) ............ -513 -607 -952 -1,376 -1,976

Ratio of imports to consumption (percent) ... 6.1 6.8 6.7 7.3 9.3

Ratio of exports to shipments (percent) ..... 3.0 3.4 2.8 2.2 2.2

AG054 Wood veneer and wood panels:

Number of establishments ............... 730 750 800 810 810

Employees (thousands) ................. 75 74 73 74 75

Capacity utilization (percent) ............. 85 90 80 82 82

U.S. production (million dollars) ........... 13,300 14,000 13,900 14,400 14,500

U.S. exports (million dollars) ............. 1,018 994 1,166 929 958

U.S. imports (million dollars) ............. 1,986 2,152 2,249 2,767 3,574

Apparent U.S. consumption (million dollars) . . 14,268 15,158 14,983 16,238 17,115

Trade balance (million dollars) ............ -968 -1,158 -1,083 -1,838 -2,615

Ratio of imports to consumption (percent) ... 13.9 14.2 15.0 17.0 20.9

Ratio of exports to production (percent) ..... 7.7 7.1 8.4 6.5 6.6

AG055 Wooden containers:

Number of establishments ............... 2,700 2,800 2,875 2,900 2,900

Employees (thousands) ................. 42 51 51 55 55

Capacity utilization (percent) ............. 80 80 80 82 82

U.S. production (million dollars) ........... 3,680 4,400 4,500 4,500 4,500

U.S. exports (million dollars) ............. 77 85 112 138 172

U.S. imports (million dollars) ............. 224 253 348 419 471

Apparent U.S. consumption (million dollars) . . 3,827 4,568 4,736 4,781 4,799

Trade balance (million dollars) ............ -147 -168 -236 -281 -299

Ratio of imports to consumption (percent) ... 5.9 5.5 7.4 8.8 9.8

Ratio of exports to production (percent) ..... 2.1 1.9 2.5 3.1 3.8
Table B-2--Continued

Forest products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-14

AG056 Tools and tool handles of wood:

Number of establishments ............... 130 128 125 125 125

Employees (thousands) ................. 3 3 3 3 3

Capacity utilization (percent) ............. 75 75 75 78 (

1

)

U.S. production (million dollars) ........... 125 120 115 120 120

U.S. exports (million dollars) ............. 18 24 37 36 44

U.S. imports (million dollars) ............. 130 114 117 117 120

Apparent U.S. consumption (million dollars) . . 237 210 195 201 195

Trade balance (million dollars) ............ -112 -90 -80 -81 -75

Ratio of imports to consumption (percent) ... 54.9 54.2 59.9 58.4 61.2

Ratio of exports to production (percent) ..... 14.7 19.8 32.0 30.4 36.8

AG057 Miscellaneous articles of wood:

Number of establishments ............... 700 700 680 690 700

Employees (thousands) ................. 30 35 34 35 38

Capacity utilization (percent) ............. 75 80 80 80 80

U.S. production (million dollars) ........... 2,800 3,000 3,100 3,200 3,200

U.S. exports (million dollars) ............. 178 179 185 202 187

U.S. imports (million dollars) ............. 615 617 733 846 1,007

Apparent U.S. consumption (million dollars) . . 3,238 3,438 3,647 3,844 4,021

Trade balance (million dollars) ............ -438 -438 -547 -644 -821

Ratio of imports to consumption (percent) ... 19.0 17.9 20.1 22.0 25.1

Ratio of exports to production (percent) ..... 6.3 6.0 6.0 6.3 5.8

AG058 Cork and rattan:

Number of establishments ............... 35 35 30 30 30

Employees (thousands) ................. 2 2 2 2 (

1

)

Capacity utilization (percent) ............. 75 80 80 80 80

U.S. production (million dollars) ........... 90 100 112 110 110

U.S. exports (million dollars) ............. 65 82 76 85 90

U.S. imports (million dollars) ............. 408 407 407 447 450

Apparent U.S. consumption (million dollars) . . 433 425 444 472 469

Trade balance (million dollars) ............ -343 -325 -332 -362 -359

Ratio of imports to consumption (percent) ... 94.2 95.7 91.9 94.6 95.8

Ratio of exports to production (percent) ..... 71.9 81.8 67.8 77.0 82.0

AG059 Wood pulp and wastepaper:

Number of establishments ............... 76 78 76 80 79

Employees (thousands) ................. 14 (

1

) (

1

) (

1

) (

1

)

Capacity utilization (percent) ............. 96 93 93 91 89

U.S. production (million dollars) ........... 8,700 7,300 7,400 7,300 7,900

U.S. exports (million dollars) ............. 6,241 4,059 3,893 3,452 3,540

U.S. imports (million dollars) ............. 3,845 2,665 2,656 2,447 2,604

Apparent U.S. consumption (million dollars) . . 6,304 5,906 6,163 6,295 6,964

Trade balance (million dollars) ............ 2,396 1,394 1,237 1,005 936

Ratio of imports to consumption (percent) ... 61.0 45.1 43.1 38.9 37.4

Ratio of exports to production (percent) ..... 71.7 55.6 52.6 47.3 44.8

AG060 Paper boxes and bags:

Number of establishments ............... 2,650 2,700 2,700 2,700 2,700

Employees (thousands) ................. 209 211 213 216 218

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. production (million dollars) ........... 39,400 37,600 39,800 42,400 45,200

U.S. exports (million dollars) ............. 1,083 1,204 1,296 1,345 1,416

U.S. imports (million dollars) ............. 596 658 674 745 802

Apparent U.S. consumption (million dollars) . . 38,913 37,054 39,178 41,800 44,585

Trade balance (million dollars) ............ 487 546 622 600 615

Ratio of imports to consumption (percent) ... 1.5 1.8 1.7 1.8 1.8

Ratio of exports to production (percent) ..... 2.7 3.2 3.3 3.2 3.1
Table B-2--Continued

Forest products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-15

AG061 Industrial papers and paperboards:

Number of establishments ............... 377 379 378 379 367

Employees (thousands) ................. (

1

) (

1

) (

1

) (

1

) (

1

)

Capacity utilization (percent) ............. 93 91 95 92 96

U.S. production (million dollars) ........... 44,600 42,400 42,800 42,800 44,000

U.S. exports (million dollars) ............. 5,085 5,064 5,407 5,185 5,018

U.S. imports (million dollars) ............. 1,884 1,830 2,044 2,267 2,596

Apparent U.S. consumption (million dollars) . . 41,399 39,166 39,437 39,882 41,579

Trade balance (million dollars) ............ 3,201 3,234 3,363 2,918 2,421

Ratio of imports to consumption (percent) ... 4.6 4.7 5.2 5.7 6.2

Ratio of exports to production (percent) ..... 11.4 11.9 12.6 12.1 11.4

AG062 Newsprint:

Number of establishments ............... 26 26 25 25 24

Employees (thousands) ................. 9 9 9 9 9

Capacity utilization (percent) ............. 96 96 99 97 94

U.S. shipments (million dollars) ........... 4,488 4,201 3,712 3,912 3,356

U.S. exports (million dollars) ............. 591 652 522 460 423

U.S. imports (million dollars) ............. 4,418 4,063 3,590 3,766 3,517

Apparent U.S. consumption (million dollars) . . 8,315 7,612 6,780 7,217 6,450

Trade balance (million dollars) ............ -3,827 -3,411 -3,068 -3,305 -3,094

Ratio of imports to consumption (percent) ... 53.1 53.4 53.0 52.2 54.5

Ratio of exports to shipments (percent) ..... 13.2 15.5 14.1 11.8 12.6

AG063 Printing and writing papers:

Number of establishments ............... 132 (

1

) 120 120 120

Employees (thousands) ................. 78 (

1

) 71 (

1

) (

1

)

Capacity utilization (percent) ............. 92 91 94 92 (

1

)

U.S. shipments (million dollars) ........... 27,317 23,861 23,482 24,492 25,496

U.S. exports (million dollars) ............. 1,421 1,394 1,431 1,350 1,490

U.S. imports (million dollars) ............. 4,192 3,565 3,773 4,289 4,538

Apparent U.S. consumption (million dollars) . . 30,089 26,032 25,823 27,431 28,544

Trade balance (million dollars) ............ -2,772 -2,171 -2,341 -2,939 -3,048

Ratio of imports to consumption (percent) ... 13.9 13.7 14.6 15.6 15.9

Ratio of exports to shipments (percent) ..... 5.2 5.8 6.1 5.5 5.8

AG064 Certain specialty papers:

Number of establishments ............... (

1

) (

1

) (

1

) (

1

) (

1

)

Employees (thousands) ................. (

1

) (

1

) (

1

) (

1

) (

1

)

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 5,010 4,700 4,900 5,091 5,300

U.S. exports (million dollars) ............. 718 773 760 701 641

U.S. imports (million dollars) ............. 742 774 808 845 971

Apparent U.S. consumption (million dollars) . . 5,034 4,701 4,948 5,235 5,630

Trade balance (million dollars) ............ -24 -1 -48 -144 -330

Ratio of imports to consumption (percent) ... 14.7 16.5 16.3 16.1 17.2

Ratio of exports to shipments (percent) ..... 14.3 16.4 15.5 13.8 12.1

AG065 Miscellaneous paper products:

Number of establishments ............... (

1

) (

1

) (

1

) (

1

) (

1

)

Employees (thousands) ................. (

1

) (

1

) (

1

) (

1

) (

1

)

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 22,255 23,100 24,000 24,936 25,958

U.S. exports (million dollars) ............. 888 987 1,196 1,234 1,281

U.S. imports (million dollars) ............. 758 875 956 1,029 1,150

Apparent U.S. consumption (million dollars) . . 22,125 22,988 23,761 24,732 25,827

Trade balance (million dollars) ............ 130 112 239 204 131

Ratio of imports to consumption (percent) ... 3.4 3.8 4.0 4.2 4.5

Ratio of exports to shipments (percent) ..... 4.0 4.3 5.0 4.9 4.9
Table B-2--Continued

Forest products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-16

AG066 Printed matter:

Number of establishments ............... 60,000 60,000 60,000 70,000 62,000

Employees (thousands) ................. 1,500 1,500 1,500 1,500 1,500

Capacity utilization (percent) ............. 81 81 77 78 (

1

)

U.S. shipments (million dollars) ........... 180,000 187,000 206,000 217,000 229,000

U.S. exports (million dollars) ............. 4,113 4,109 4,287 4,308 4,195

U.S. imports (million dollars) ............. 2,468 2,564 2,719 2,923 3,161

Apparent U.S. consumption (million dollars) . . 178,355 185,455 204,431 215,615 227,966

Trade balance (million dollars) ............ 1,645 1,545 1,569 1,385 1,034

Ratio of imports to consumption (percent) ... 1.4 1.4 1.3 1.4 1.4

Ratio of exports to shipments (percent) ..... 2.3 2.2 2.1 2.0 1.8

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1 Not available.

Note.--Calculations based on unrounded data.
Table B-3

Chemicals and related products sector: Profile of U.S. industry and market, by industry/commodity groups,

1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-17

CH007 Major primary olefins:

Number of establishments ............... 37 37 37 37 37

Employees (thousands) ................. 5 5 5 5 5

Capacity utilization (percent) ............. 98 98 95 97 98

U.S. shipments (million dollars) ........... 13,300 13,700 14,700 15,500 17,000

U.S. exports (million dollars) ............. 145 199 306 169 181

U.S. imports (million dollars) ............. 496 897 1,520 1,360 1,798

Apparent U.S. consumption (million dollars) . . 13,652 14,398 15,914 16,691 18,617

Trade balance (million dollars) ............ -352 -698 -1,214 -1,191 -1,617

Ratio of imports to consumption (percent) ... 3.6 6.2 9.5 8.1 9.7

Ratio of exports to shipments (percent) ..... 1.1 1.5 2.1 1.1 1.1

CH008 Other olefins:

Number of establishments ............... 23 23 23 23 23

Employees (thousands) ................. 1 1 1 1 1

Capacity utilization (percent) ............. 95 95 95 97 98

U.S. shipments (million dollars) ........... 1,050 1,080 1,150 1,220 1,350

U.S. exports (million dollars) ............. 242 192 175 211 208

U.S. imports (million dollars) ............. 53 48 62 82 91

Apparent U.S. consumption (million dollars) . . 861 936 1,037 1,091 1,233

Trade balance (million dollars) ............ 189 144 113 129 117

Ratio of imports to consumption (percent) ... 6.1 5.1 6.0 7.5 7.4

Ratio of exports to shipments (percent) ..... 23.0 17.8 15.2 17.3 15.4

CH009 Primary aromatics:

Number of establishments ............... 31 31 31 31 31

Employees (thousands) ................. 2 2 2 2 2

Capacity utilization (percent) ............. 80 80 80 80 80

U.S. shipments (million dollars) ........... 4,250 4,350 4,400 4,000 4,250

U.S. exports (million dollars) ............. 208 214 255 56 91

U.S. imports (million dollars) ............. 246 588 856 704 815

Apparent U.S. consumption (million dollars) . . 4,288 4,723 5,001 4,647 4,974

Trade balance (million dollars) ............ -38 -373 -601 -647 -724

Ratio of imports to consumption (percent) ... 5.7 12.4 17.1 15.1 16.4

Ratio of exports to shipments (percent) ..... 4.9 4.9 5.8 1.4 2.1

CH010 Organic commodity chemicals:

Number of establishments ............... 53 53 53 53 53

Employees (thousands) ................. 15 15 15 15 15

Capacity utilization (percent) ............. 90 90 90 88 90

U.S. shipments (million dollars) ........... 15,581 15,815 16,450 16,240 16,500

U.S. exports (million dollars) ............. 2,258 1,487 1,283 1,266 1,474

U.S. imports (million dollars) ............. 813 808 923 741 778

Apparent U.S. consumption (million dollars) . . 14,136 15,136 16,089 15,714 15,804

Trade balance (million dollars) ............ 1,445 679 361 526 696

Ratio of imports to consumption (percent) ... 5.8 5.3 5.7 4.7 4.9

Ratio of exports to shipments (percent) ..... 14.5 9.4 7.8 7.8 8.9

CH011 Organic specialty chemicals:

Number of establishments ............... 250 250 250 250 250

Employees (thousands) ................. 95 95 95 95 95

Capacity utilization (percent) ............. 85 86 85 83 83

U.S. shipments (million dollars) ........... 8,900 9,078 9,450 9,260 9,500

U.S. exports (million dollars) ............. 5,635 5,911 6,756 6,616 6,940

U.S. imports (million dollars) ............. 4,608 5,139 5,916 5,965 6,546

Apparent U.S. consumption (million dollars) . . 7,873 8,306 8,610 8,609 9,106

Trade balance (million dollars) ............ 1,027 772 840 651 394

Ratio of imports to consumption (percent) ... 58.5 61.9 68.7 69.3 71.9

Ratio of exports to shipments (percent) ..... 63.3 65.1 71.5 71.4 73.0
Table B-3--Continued

Chemicals and related products sector: Profile of U.S. industry and market, by industry/commodity groups,

1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-18

CH012 Certain organic chemicals:

Number of establishments ............... 259 262 265 265 270

Employees (thousands) ................. 75 75 75 75 75

Capacity utilization (percent) ............. 89 86 87 87 85

U.S. shipments (million dollars) ........... 57,500 57,000 58,000 60,000 62,000

U.S. exports (million dollars) ............. 6,314 5,468 6,095 5,184 5,401

U.S. imports (million dollars) ............. 3,280 3,333 3,494 3,348 3,595

Apparent U.S. consumption (million dollars) . . 54,466 54,865 55,399 58,164 60,194

Trade balance (million dollars) ............ 3,034 2,135 2,601 1,836 1,806

Ratio of imports to consumption (percent) ... 6.0 6.1 6.3 5.8 6.0

Ratio of exports to shipments (percent) ..... 11.0 9.6 10.5 8.6 8.7

CH013 Miscellaneous inorganic chemicals:

Number of establishments ............... 640 640 (

1

) (

1

) (

1

)

Employees (thousands) ................. 54 53 (

1

) (

1

) (

1

)

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 8,694 8,863 8,860 8,809 (

1

)

U.S. exports (million dollars) ............. 4,081 4,203 4,860 4,419 4,365

U.S. imports (million dollars) ............. 4,141 4,754 5,119 4,752 4,641

Apparent U.S. consumption (million dollars) . . 8,755 9,414 9,119 9,143 (

1

)

Trade balance (million dollars) ............ -61 -551 -259 -334 -276

Ratio of imports to consumption (percent) ... 47.3 50.5 56.1 52.0 (

1

)

Ratio of exports to shipments (percent) ..... 46.9 47.4 54.9 50.2 (

1

)

CH014 Inorganic acids:

Number of establishments ............... 143 143 143 143 (

1

)

Employees (thousands) ................. 9 9 9 9 (

1

)

Capacity utilization (percent) ............. 80 80 80 82 (

1

)

U.S. shipments (million dollars) ........... 2,653 2,710 2,765 2,820 (

1

)

U.S. exports (million dollars) ............. 166 142 192 186 204

U.S. imports (million dollars) ............. 209 234 262 282 238

Apparent U.S. consumption (million dollars) . . 2,696 2,802 2,835 2,915 (

1

)

Trade balance (million dollars) ............ -43 -92 -70 -95 -34

Ratio of imports to consumption (percent) ... 7.8 8.4 9.2 9.7 (

1

)

Ratio of exports to shipments (percent) ..... 6.3 5.2 7.0 6.6 (

1

)

CH015 Chlor-alkali chemicals:

Number of establishments ............... 60 60 60 65 (

1

)

Employees (thousands) ................. 7 7 7 7 (

1

)

Capacity utilization (percent) ............. 95 95 95 95 (

1

)

U.S. shipments (million dollars) ........... 3,169 3,212 3,067 2,905 (

1

)

U.S. exports (million dollars) ............. 899 967 824 834 781

U.S. imports (million dollars) ............. 210 188 184 191 126

Apparent U.S. consumption (million dollars) . . 2,480 2,433 2,426 2,263 (

1

)

Trade balance (million dollars) ............ 689 779 641 642 655

Ratio of imports to consumption (percent) ... 8.5 7.7 7.6 8.5 (

1

)

Ratio of exports to shipments (percent) ..... 28.4 30.1 26.9 28.7 (

1

)

CH016 Fertilizers:

Number of establishments ............... 350 350 350 350 350

Employees (thousands) ................. 37 37 37 37 37

Capacity utilization (percent) ............. 83 85 85 84 85

U.S. shipments (million dollars) ........... 9,480 9,670 9,865 9,900 10,000

U.S. exports (million dollars) ............. 3,319 3,151 3,138 3,339 3,032

U.S. imports (million dollars) ............. 2,357 2,489 2,492 2,472 2,486

Apparent U.S. consumption (million dollars) . . 8,518 9,008 9,219 9,033 9,454

Trade balance (million dollars) ............ 962 662 646 867 546

Ratio of imports to consumption (percent) ... 27.7 27.6 27.0 27.4 26.3

Ratio of exports to shipments (percent) ..... 35.0 32.6 31.8 33.7 30.3
Table B-3--Continued

Chemicals and related products sector: Profile of U.S. industry and market, by industry/commodity groups,

1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-19

CH017 Paints, inks, and related items, and certain

 components thereof:

Number of establishments ............... 1,580 1,500 1,500 1,500 1,490

Employees (thousands) ................. 15 15 15 15 15

Capacity utilization (percent) ............. 84 85 85 85 85

U.S. shipments (million dollars) ........... 19,673 20,100 21,500 22,800 24,000

U.S. exports (million dollars) ............. 2,339 2,459 2,934 3,112 3,327

U.S. imports (million dollars) ............. 1,424 1,504 1,726 1,755 1,959

Apparent U.S. consumption (million dollars) . . 18,758 19,145 20,292 21,443 22,632

Trade balance (million dollars) ............ 915 955 1,208 1,357 1,368

Ratio of imports to consumption (percent) ... 7.6 7.9 8.5 8.2 8.7

Ratio of exports to shipments (percent) ..... 11.9 12.2 13.6 13.6 13.9

CH018 Synthetic organic pigments:

Number of establishments ............... 32 32 32 32 32

Employees (thousands) ................. 6 6 6 6 6

Capacity utilization (percent) ............. 85 85 85 85 85

U.S. shipments (million dollars) ........... 870 913 920 959 1,050

U.S. exports (million dollars) ............. 283 295 337 349 360

U.S. imports (million dollars) ............. 341 356 401 402 404

Apparent U.S. consumption (million dollars) . . 928 974 983 1,012 1,093

Trade balance (million dollars) ............ -58 -61 -63 -53 -43

Ratio of imports to consumption (percent) ... 36.8 36.6 40.8 39.7 36.9

Ratio of exports to shipments (percent) ..... 32.5 32.4 36.7 36.4 34.3

CH019 Synthetic dyes and azoic couplers:

Number of establishments ............... 32 32 32 32 32

Employees (thousands) ................. 8 8 8 8 8

Capacity utilization (percent) ............. 85 85 85 85 85

U.S. shipments (million dollars) ........... 1,040 1,095 1,100 1,122 1,230

U.S. exports (million dollars) ............. 272 394 489 453 404

U.S. imports (million dollars) ............. 569 573 628 555 527

Apparent U.S. consumption (million dollars) . . 1,336 1,273 1,239 1,224 1,353

Trade balance (million dollars) ............ -296 -178 -139 -102 -123

Ratio of imports to consumption (percent) ... 42.6 45.0 50.7 45.3 38.9

Ratio of exports to shipments (percent) ..... 26.2 36.0 44.4 40.3 32.8

CH020 Synthetic tanning agents:

Number of establishments ............... 5 5 5 5 5

Employees (thousands) ................. 1 1 1 1 1

Capacity utilization (percent) ............. 85 85 85 85 85

U.S. shipments (million dollars) ........... 20 20 20 20 22

U.S. exports (million dollars) ............. 14 17 17 19 13

U.S. imports (million dollars) ............. 6 7 8 6 7

Apparent U.S. consumption (million dollars) . . 12 11 11 7 16

Trade balance (million dollars) ............ 8 9 9 13 6

Ratio of imports to consumption (percent) ... 48.6 70.5 71.6 81.6 45.3

Ratio of exports to shipments (percent) ..... 68.5 84.3 84.6 93.1 60.4

CH021 Natural tanning and dyeing materials:

Number of establishments ............... 10 10 10 10 10

Employees (thousands) ................. 1 1 1 1 1

Capacity utilization (percent) ............. 85 85 85 85 85

U.S. shipments (million dollars) ........... 10 10 10 10 10

U.S. exports (million dollars) ............. 17 19 21 21 21

U.S. imports (million dollars) ............. 52 57 62 66 71

Apparent U.S. consumption (million dollars) . . 45 48 52 55 60

Trade balance (million dollars) ............ -35 -38 -42 -45 -50

Ratio of imports to consumption (percent) ... 114.5 119.3 120.8 119.8 118.2

Ratio of exports to shipments (percent) ..... 166.0 191.7 207.5 208.7 209.0
Table B-3--Continued

Chemicals and related products sector: Profile of U.S. industry and market, by industry/commodity groups,

1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-20

CH022 Photographic chemicals and preparations:

Number of establishments ............... 5 5 5 5 5

Employees (thousands) ................. 1 1 1 1 1

Capacity utilization (percent) ............. 85 85 85 85 85

U.S. shipments (million dollars) ........... (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. exports (million dollars) ............. 506 496 501 449 433

U.S. imports (million dollars) ............. 749 701 733 633 564

Apparent U.S. consumption (million dollars) . . (

1

) (

1

) (

1

) (

1

) (

1

)

Trade balance (million dollars) ............ -244 -206 -231 -184 -131

Ratio of imports to consumption (percent) ... (

1

) (

1

) (

1

) (

1

) (

1

)

Ratio of exports to shipments (percent) ..... (

1

) (

1

) (

1

) (

1

) (

1

)

CH023 Pesticide products and formulations:

Number of establishments ............... 55 55 55 55 55

Employees (thousands) ................. 20 20 20 20 20

Capacity utilization (percent) ............. 85 85 85 88 85

U.S. shipments (million dollars) ........... 4,580 4,900 5,000 5,030 5,120

U.S. exports (million dollars) ............. 1,971 2,016 2,279 2,396 2,211

U.S. imports (million dollars) ............. 1,036 1,164 1,195 1,292 1,183

Apparent U.S. consumption (million dollars) . . 3,644 4,048 3,916 3,926 4,091

Trade balance (million dollars) ............ 936 852 1,084 1,104 1,029

Ratio of imports to consumption (percent) ... 28.4 28.8 30.5 32.9 28.9

Ratio of exports to shipments (percent) ..... 43.0 41.2 45.6 47.6 43.2

CH024 Adhesives and glues:

Number of establishments ............... 490 500 500 500 500

Employees (thousands) ................. 10 10 10 10 10

Capacity utilization (percent) ............. 84 85 86 85 85

U.S. shipments (million dollars) ........... 4,500 4,700 4,800 4,888 5,000

U.S. exports (million dollars) ............. 348 394 457 477 502

U.S. imports (million dollars) ............. 138 141 150 159 181

Apparent U.S. consumption (million dollars) . . 4,289 4,447 4,493 4,570 4,679

Trade balance (million dollars) ............ 211 253 307 318 321

Ratio of imports to consumption (percent) ... 3.2 3.2 3.3 3.5 3.9

Ratio of exports to shipments (percent) ..... 7.7 8.4 9.5 9.7 10.0

CH025 Medicinal chemicals:

Number of establishments ............... 717 720 720 718 718

Employees (thousands) ................. 174 203 205 208 208

Capacity utilization (percent) ............. 85 85 85 85 85

U.S. shipments (million dollars) ........... 60,300 63,000 67,400 74,140 81,576

U.S. exports (million dollars) ............. 8,092 8,548 10,345 11,956 13,681

U.S. imports (million dollars) ............. 8,677 11,195 14,193 17,952 23,781

Apparent U.S. consumption (million dollars) . . 60,885 65,647 71,248 80,136 91,676

Trade balance (million dollars) ............ -585 -2,647 -3,848 -5,996 -10,100

Ratio of imports to consumption (percent) ... 14.3 17.1 19.9 22.4 25.9

Ratio of exports to shipments (percent) ..... 13.4 13.6 15.3 16.1 16.8

CH026 Essential oils and other flavoring materials:

Number of establishments ............... 55 53 53 53 53

Employees (thousands) ................. 52 50 50 50 51

Capacity utilization (percent) ............. 80 80 80 80 82

U.S. shipments (million dollars) ........... 3,000 3,000 3,100 3,200 3,400

U.S. exports (million dollars) ............. 914 985 1,018 916 948

U.S. imports (million dollars) ............. 812 782 812 836 754

Apparent U.S. consumption (million dollars) . . 2,898 2,797 2,894 3,120 3,206

Trade balance (million dollars) ............ 102 203 206 80 194

Ratio of imports to consumption (percent) ... 28.0 28.0 28.0 26.8 23.5

Ratio of exports to shipments (percent) ..... 30.5 32.8 32.8 28.6 27.9
Table B-3--Continued

Chemicals and related products sector: Profile of U.S. industry and market, by industry/commodity groups,

1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-21

CH027 Perfumes, cosmetics, and toiletries:

Number of establishments ............... 650 650 650 650 650

Employees (thousands) ................. 58 58 57 58 59

Capacity utilization (percent) ............. 88 85 85 87 88

U.S. shipments (million dollars) ........... 19,000 19,300 19,350 20,000 21,500

U.S. exports (million dollars) ............. 1,875 2,537 2,607 2,572 2,578

U.S. imports (million dollars) ............. 1,168 1,276 1,428 1,629 1,864

Apparent U.S. consumption (million dollars) . . 18,293 18,039 18,171 19,057 20,786

Trade balance (million dollars) ............ 707 1,261 1,179 943 714

Ratio of imports to consumption (percent) ... 6.4 7.1 7.9 8.6 9.0

Ratio of exports to shipments (percent) ..... 9.9 13.1 13.5 12.9 12.0

CH028 Soaps, detergents, and surface-active agents:

Number of establishments ............... 950 950 950 950 950

Employees (thousands) ................. 48 48 50 50 52

Capacity utilization (percent) ............. 88 85 87 87 88

U.S. shipments (million dollars) ........... 16,500 16,500 16,600 17,000 17,700

U.S. exports (million dollars) ............. 1,644 1,812 2,028 1,961 2,138

U.S. imports (million dollars) ............. 653 756 847 875 948

Apparent U.S. consumption (million dollars) . . 15,508 15,444 15,419 15,914 16,510

Trade balance (million dollars) ............ 992 1,056 1,181 1,086 1,190

Ratio of imports to consumption (percent) ... 4.2 4.9 5.5 5.5 5.7

Ratio of exports to shipments (percent) ..... 10.0 11.0 12.2 11.5 12.1

CH029 Miscellaneous chemicals and specialties:

Number of establishments ............... (

1

) (

1

) (

1

) (

1

) (

1

)

Employees (thousands) ................. (

1

) (

1

) (

1

) (

1

) (

1

)

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. exports (million dollars) ............. 2,203 2,383 2,610 2,619 2,536

U.S. imports (million dollars) ............. 1,209 1,292 1,453 1,667 1,790

Apparent U.S. consumption (million dollars) . . (

1

) (

1

) (

1

) (

1

) (

1

)

Trade balance (million dollars) ............ 994 1,092 1,157 951 746

Ratio of imports to consumption (percent) ... (

1

) (

1

) (

1

) (

1

) (

1

)

Ratio of exports to shipments (percent) ..... (

1

) (

1

) (

1

) (

1

) (

1

)

CH030 Explosives, propellant powders, and related items:

Number of establishments ............... 135 130 130 127 125

Employees (thousands) ................. 13 13 13 13 13

Capacity utilization (percent) ............. 89 90 90 88 87

U.S. shipments (million dollars) ........... 1,620 1,765 1,850 1,930 2,000

U.S. exports (million dollars) ............. 250 328 291 292 264

U.S. imports (million dollars) ............. 187 208 237 248 267

Apparent U.S. consumption (million dollars) . . 1,557 1,645 1,796 1,886 2,003

Trade balance (million dollars) ............ 63 120 54 44 -3

Ratio of imports to consumption (percent) ... 12.0 12.6 13.2 13.2 13.3

Ratio of exports to shipments (percent) ..... 15.4 18.6 15.7 15.2 13.2

CH031 Polyethylene resins in primary forms:

Number of establishments ............... 41 42 43 43 44

Employees (thousands) ................. 20 20 20 20 20

Capacity utilization (percent) ............. 88 90 90 89 90

U.S. shipments (million dollars) ........... 7,671 8,400 8,600 8,600 9,000

U.S. exports (million dollars) ............. 1,988 2,134 2,455 2,134 2,249

U.S. imports (million dollars) ............. 1,192 1,086 1,261 1,150 1,329

Apparent U.S. consumption (million dollars) . . 6,875 7,353 7,406 7,616 8,080

Trade balance (million dollars) ............ 796 1,047 1,194 984 920

Ratio of imports to consumption (percent) ... 17.3 14.8 17.0 15.1 16.4

Ratio of exports to shipments (percent) ..... 25.9 25.4 28.5 24.8 25.0
Table B-3--Continued

Chemicals and related products sector: Profile of U.S. industry and market, by industry/commodity groups,

1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-22

CH032 Polypropylene resins in primary forms:

Number of establishments ............... 23 24 25 25 25

Employees (thousands) ................. 5 5 5 5 5

Capacity utilization (percent) ............. 87 91 94 92 95

U.S. shipments (million dollars) ........... 3,119 3,550 4,400 3,800 4,400

U.S. exports (million dollars) ............. 660 742 844 760 863

U.S. imports (million dollars) ............. 190 210 212 220 232

Apparent U.S. consumption (million dollars) . . 2,649 3,018 3,768 3,260 3,770

Trade balance (million dollars) ............ 470 532 632 540 630

Ratio of imports to consumption (percent) ... 7.2 7.0 5.6 6.8 6.2

Ratio of exports to shipments (percent) ..... 21.2 20.9 19.2 20.0 19.6

CH033 Polyvinyl chloride resins in primary forms:

Number of establishments ............... 27 27 28 28 28

Employees (thousands) ................. 7 7 7 7 7

Capacity utilization (percent) ............. 97 94 95 94 94

U.S. shipments (million dollars) ........... 3,519 3,600 3,800 3,700 3,700

U.S. exports (million dollars) ............. 856 680 858 767 626

U.S. imports (million dollars) ............. 192 203 271 248 235

Apparent U.S. consumption (million dollars) . . 2,855 3,124 3,213 3,182 3,309

Trade balance (million dollars) ............ 664 476 587 518 391

Ratio of imports to consumption (percent) ... 6.7 6.5 8.4 7.8 7.1

Ratio of exports to shipments (percent) ..... 24.3 18.9 22.6 20.7 16.9

CH034 Styrene polymers in primary forms:

Number of establishments ............... 68 68 69 69 69

Employees (thousands) ................. 11 11 11 11 11

Capacity utilization (percent) ............. 94 93 92 91 92

U.S. shipments (million dollars) ........... 5,013 5,240 5,600 5,200 5,600

U.S. exports (million dollars) ............. 790 799 824 779 753

U.S. imports (million dollars) ............. 351 335 353 418 427

Apparent U.S. consumption (million dollars) . . 4,574 4,776 5,129 4,839 5,274

Trade balance (million dollars) ............ 439 464 471 361 326

Ratio of imports to consumption (percent) ... 7.7 7.0 6.9 8.6 8.1

Ratio of exports to shipments (percent) ..... 15.7 15.2 14.7 15.0 13.4

CH035 Saturated polyester resins:

Number of establishments ............... 50 50 50 50 50

Employees (thousands) ................. 6 6 6 6 6

Capacity utilization (percent) ............. 86 85 83 80 80

U.S. shipments (million dollars) ........... 4,216 4,500 4,700 4,600 4,600

U.S. exports (million dollars) ............. 640 623 696 626 566

U.S. imports (million dollars) ............. 242 230 355 451 448

Apparent U.S. consumption (million dollars) . . 3,818 4,108 4,359 4,425 4,482

Trade balance (million dollars) ............ 398 392 341 175 118

Ratio of imports to consumption (percent) ... 6.3 5.6 8.1 10.2 10.0

Ratio of exports to shipments (percent) ..... 15.2 13.8 14.8 13.6 12.3

CH036 Other plastics in primary forms:

Number of establishments ............... 278 278 280 280 280

Employees (thousands) ................. 32 32 32 32 32

Capacity utilization (percent) ............. 92 92 90 89 (

1

)

U.S. shipments (million dollars) ........... 14,958 15,700 16,000 15,700 (

1

)

U.S. exports (million dollars) ............. 5,423 5,625 6,094 6,124 6,323

U.S. imports (million dollars) ............. 1,944 2,135 2,214 2,295 2,455

Apparent U.S. consumption (million dollars) . . 11,479 12,209 12,120 11,871 (

1

)

Trade balance (million dollars) ............ 3,479 3,491 3,880 3,829 3,868

Ratio of imports to consumption (percent) ... 16.9 17.5 18.3 19.3 (

1

)

Ratio of exports to shipments (percent) ..... 36.3 35.8 38.1 39.0 (

1

)
Table B-3--Continued

Chemicals and related products sector: Profile of U.S. industry and market, by industry/commodity groups,

1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-23

CH037 Styrene-butadiene rubber in primary forms:

Number of establishments ............... 11 11 11 11 11

Employees (thousands) ................. 5 5 5 5 5

Capacity utilization (percent) ............. 91 90 90 90 90

U.S. shipments (million dollars) ........... 1,187 1,150 1,150 1,200 1,200

U.S. exports (million dollars) ............. 353 361 348 322 309

U.S. imports (million dollars) ............. 159 143 163 175 173

Apparent U.S. consumption (million dollars) . . 992 932 966 1,054 1,063

Trade balance (million dollars) ............ 195 218 184 146 137

Ratio of imports to consumption (percent) ... 16.0 15.4 16.9 16.6 16.2

Ratio of exports to shipments (percent) ..... 29.8 31.4 30.2 26.8 25.8

CH038 Other synthetic rubber:

Number of establishments ............... 34 34 34 34 34

Employees (thousands) ................. 11 11 11 11 11

Capacity utilization (percent) ............. 81 80 80 80 80

U.S. shipments (million dollars) ........... 3,111 3,100 3,100 3,200 3,300

U.S. exports (million dollars) ............. 1,011 1,090 1,111 1,064 1,079

U.S. imports (million dollars) ............. 557 565 614 669 697

Apparent U.S. consumption (million dollars) . . 2,657 2,575 2,604 2,805 2,918

Trade balance (million dollars) ............ 454 525 496 395 382

Ratio of imports to consumption (percent) ... 21.0 21.9 23.6 23.9 23.9

Ratio of exports to shipments (percent) ..... 32.5 35.1 35.8 33.2 32.7

CH039 Pneumatic tires and tubes (new):

Number of establishments ............... 40 40 42 42 42

Employees (thousands) ................. 62 62 62 62 62

Capacity utilization (percent) ............. 98 95 92 95 95

U.S. shipments (million dollars) ........... 11,000 11,400 11,800 12,100 12,400

U.S. exports (million dollars) ............. 1,869 1,960 2,403 2,532 2,366

U.S. imports (million dollars) ............. 3,073 3,011 3,343 4,011 4,559

Apparent U.S. consumption (million dollars) . . 12,204 12,451 12,739 13,579 14,593

Trade balance (million dollars) ............ -1,204 -1,051 -939 -1,479 -2,193

Ratio of imports to consumption (percent) ... 25.2 24.2 26.2 29.5 31.2

Ratio of exports to shipments (percent) ..... 17.0 17.2 20.4 20.9 19.1

CH040 Other tires:

Number of establishments ............... 1,400 1,400 1,400 1,400 1,400

Employees (thousands) ................. 5 5 5 5 5

Capacity utilization (percent) ............. 92 90 90 90 90

U.S. shipments (million dollars) ........... 1,750 1,800 1,800 1,900 2,000

U.S. exports (million dollars) ............. 73 84 86 93 111

U.S. imports (million dollars) ............. 121 116 132 143 129

Apparent U.S. consumption (million dollars) . . 1,797 1,832 1,846 1,950 2,018

Trade balance (million dollars) ............ -47 -32 -46 -50 -18

Ratio of imports to consumption (percent) ... 6.7 6.3 7.2 7.3 6.4

Ratio of exports to shipments (percent) ..... 4.2 4.7 4.8 4.9 5.6

CH041 Miscellaneous plastic products:

Number of establishments ............... (

1

) (

1

) 1,900 1,900 (

1

)

Employees (thousands) ................. (

1

) (

1

) 131 130 (

1

)

Capacity utilization (percent) ............. (

1

) (

1

) 85 85 (

1

)

U.S. shipments (million dollars) ........... (

1

) (

1

) 19,000 19,000 (

1

)

U.S. exports (million dollars) ............. 8,334 9,201 10,525 10,882 11,816

U.S. imports (million dollars) ............. 7,979 8,381 9,063 9,709 10,988

Apparent U.S. consumption (million dollars) . . (

1

) (

1

) 17,538 17,826 (

1

)

Trade balance (million dollars) ............ 356 819 1,462 1,174 828

Ratio of imports to consumption (percent) ... (

1

) (

1

) 51.7 54.5 (

1

)

Ratio of exports to shipments (percent) ..... (

1

) (

1

) 55.4 57.3 (

1

)
Table B-3--Continued

Chemicals and related products sector: Profile of U.S. industry and market, by industry/commodity groups,

1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-24

CH042 Miscellaneous rubber products:

Number of establishments ............... (

1

) (

1

) 13,900 14,000 (

1

)

Employees (thousands) ................. (

1

) (

1

) 820,000 850,000 (

1

)

Capacity utilization (percent) ............. (

1

) (

1

) 85 85 (

1

)

U.S. shipments (million dollars) ........... (

1

) (

1

) 124,700 125,000 (

1

)

U.S. exports (million dollars) ............. 1,435 1,611 1,928 1,954 1,982

U.S. imports (million dollars) ............. 1,783 1,875 2,021 2,154 2,277

Apparent U.S. consumption (million dollars) . . (

1

) (

1

) 124,793 125,200 (

1

)

Trade balance (million dollars) ............ -348 -264 -93 -200 -295

Ratio of imports to consumption (percent) ... (

1

) (

1

) 1.6 1.7 (

1

)

Ratio of exports to shipments (percent) ..... (

1

) (

1

) 1.5 1.6 (

1

)

CH043 Gelatin:

Number of establishments ............... 8 8 8 8 8

Employees (thousands) ................. 1 1 1 1 1

Capacity utilization (percent) ............. 90 90 92 90 90

U.S. shipments (million dollars) ........... 202 240 250 252 255

U.S. exports (million dollars) ............. 42 46 59 51 63

U.S. imports (million dollars) ............. 102 130 133 122 107

Apparent U.S. consumption (million dollars) . . 261 324 324 323 299

Trade balance (million dollars) ............ -59 -84 -74 -71 -44

Ratio of imports to consumption (percent) ... 38.9 40.2 41.1 37.8 35.9

Ratio of exports to shipments (percent) ..... 21.0 19.3 23.6 20.1 24.9

CH044 Natural rubber:

Number of establishments ............... (

1

) (

1

) (

1

) (

1

) (

1

)

Employees (thousands) ................. (

1

) (

1

) (

1

) (

1

) (

1

)

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 0 0 0 0 (

1

)

U.S. exports (million dollars) ............. 42 44 41 36 41

U.S. imports (million dollars) ............. 1,629 1,468 1,229 977 704

Apparent U.S. consumption (million dollars) . . 1,587 1,424 1,189 941 (

1

)

Trade balance (million dollars) ............ -1,587 -1,424 -1,189 -941 -664

Ratio of imports to consumption (percent) ... 102.6 103.1 103.4 103.8 (

1

)

Ratio of exports to shipments (percent) ..... (

2

) (

2

) (

2

) (

2

) (

1

)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1 Not available.

2 Not meaningful.

Note.--Calculations based on unrounded data.
Table B-4

Energy-related products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-

99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-25

CH001 Electrical energy:

Number of establishments ............... 3,225 3,225 3,225 3,225 3,225

Employees (thousands) ................. (

1

) (

1

) (

1

) (

1

) (

1

)

Capacity utilization (percent) ............. 100 100 100 100 100

U.S. shipments (million dollars) ........... 190,428 196,141 214,322 199,510 219,460

U.S. exports (million dollars) ............. 47 69 124 185 206

U.S. imports (million dollars) ............. 856 902 978 1,039 1,334

Apparent U.S. consumption (million dollars) . . 191,237 196,973 215,176 200,364 220,587

Trade balance (million dollars) ............ -809 -832 -854 -854 -1,127

Ratio of imports to consumption (percent) ... 0.4 0.5 0.5 0.5 0.6

Ratio of exports to shipments (percent) ..... (

2

) (

2

) 0.1 0.1 0.1

CH002 Nuclear materials:

Number of establishments ............... (

1

) (

1

) (

1

) (

1

) (

1

)

Employees (thousands) ................. (

1

) (

1

) (

1

) (

1

) (

1

)

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. exports (million dollars) ............. 965 1,047 1,444 1,041 950

U.S. imports (million dollars) ............. 1,127 1,326 1,219 1,382 1,636

Apparent U.S. consumption (million dollars) . . (

1

) (

1

) (

1

) (

1

) (

1

)

Trade balance (million dollars) ............ -162 -279 225 -340 -686

Ratio of imports to consumption (percent) ... (

1

) (

1

) (

1

) (

1

) (

1

)

Ratio of exports to shipments (percent) ..... (

1

) (

1

) (

1

) (

1

) (

1

)

CH003 Coal, coke, and related chemical products:

Number of establishments ............... 520 520 520 520 520

Employees (thousands) ................. 150 150 150 150 150

Capacity utilization (percent) ............. 85 85 85 85 90

U.S. shipments (million dollars) ........... 29,700 33,173 32,658 29,965 32,965

U.S. exports (million dollars) ............. 4,328 4,452 4,276 3,635 2,671

U.S. imports (million dollars) ............. 847 1,253 1,688 1,570 1,741

Apparent U.S. consumption (million dollars) . . 26,219 29,975 30,070 27,900 32,035

Trade balance (million dollars) ............ 3,481 3,198 2,588 2,065 930

Ratio of imports to consumption (percent) ... 3.2 4.2 5.6 5.6 5.4

Ratio of exports to shipments (percent) ..... 14.6 13.4 13.1 12.1 8.1

CH004 Crude petroleum:

Number of establishments ............... 18,000 18,000 18,000 18,000 18,000

Employees (thousands) ................. 204 204 204 204 204

Capacity utilization (percent) ............. 100 100 100 100 100

U.S. shipments (million dollars) ........... 34,846 43,601 40,342 28,344 34,602

U.S. exports (million dollars) ............. 1 460 780 670 772

U.S. imports (million dollars) ............. 42,077 44,849 38,394 25,467 31,642

Apparent U.S. consumption (million dollars) . . 76,922 87,990 77,957 53,141 65,472

Trade balance (million dollars) ............ -42,076 -44,389 -37,615 -24,797 -30,870

Ratio of imports to consumption (percent) ... 54.7 51.0 49.3 47.9 48.3

Ratio of exports to shipments (percent) ..... (

2

) 1.1 1.9 2.4 2.2

CH005 Petroleum products:

Number of establishments ............... 190 190 190 190 190

Employees (thousands) ................. 75 75 75 75 75

Capacity utilization (percent) ............. 85 90 90 90 90

U.S. shipments (million dollars) ........... 131,549 147,961 129,409 85,580 113,231

U.S. exports (million dollars) ............. 6,583 7,604 7,728 6,233 6,599

U.S. imports (million dollars) ............. 9,777 18,915 21,523 17,584 22,079

Apparent U.S. consumption (million dollars) . . 134,743 159,273 143,203 96,931 128,711

Trade balance (million dollars) ............ -3,194 -11,312 -13,794 -11,351 -15,480

Ratio of imports to consumption (percent) ... 7.3 11.9 15.0 18.1 17.2

Ratio of exports to shipments (percent) ..... 5.0 5.1 6.0 7.3 5.8
Table B-4--Continued

Energy-related products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-

99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-26

CH006 Natural gas and components:

Number of establishments ............... (

1

) (

1

) (

1

) (

1

) (

1

)

Employees (thousands) ................. 205 200 200 200 200

Capacity utilization (percent) ............. 80 80 80 80 80

U.S. shipments (million dollars) ........... 76,000 77,000 79,000 65,000 69,000

U.S. exports (million dollars) ............. 775 770 814 581 759

U.S. imports (million dollars) ............. 5,157 8,253 10,215 9,212 11,042

Apparent U.S. consumption (million dollars) . . 80,382 84,484 88,401 73,630 79,282

Trade balance (million dollars) ............ -4,382 -7,484 -9,401 -8,630 -10,282

Ratio of imports to consumption (percent) ... 6.4 9.8 11.6 12.5 13.9

Ratio of exports to shipments (percent) ..... 1.0 1.0 1.0 0.9 1.1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1 Not available.

2 Less than 0.05 percent.

Note.--Calculations based on unrounded data.
Table B-5

Textiles, apparel, and footwear sector: Profile of U.S. industry and market, by industry/commodity groups,

1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-27

CH045 Fibers and yarns, except raw cotton and raw wool:

Number of establishments ............... (

1

) (

1

) (

1

) (

1

) (

1

)

Employees (thousands) ................. (

1

) (

1

) (

1

) (

1

) (

1

)

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. exports (million dollars) ............. 2,835 2,990 3,115 2,969 2,830

U.S. imports (million dollars) ............. 2,076 2,146 2,415 2,498 2,547

Apparent U.S. consumption (million dollars) . . (

1

) (

1

) (

1

) (

1

) (

1

)

Trade balance (million dollars) ............ 759 843 699 471 282

Ratio of imports to consumption (percent) ... (

1

) (

1

) (

1

) (

1

) (

1

)

Ratio of exports to shipments (percent) ..... (

1

) (

1

) (

1

) (

1

) (

1

)

CH046 Fabrics:

Number of establishments ............... 4,037 3,834 3,774 3,735 3,695

Employees (thousands) ................. 322 305 300 291 273

Capacity utilization (percent) ............. 82 82 82 75 72

U.S. shipments (million dollars) ........... 35,012 34,460 33,920 33,910 33,680

U.S. exports (million dollars) ............. 3,911 4,241 4,835 4,886 5,170

U.S. imports (million dollars) ............. 4,602 4,751 5,547 5,662 5,563

Apparent U.S. consumption (million dollars) . . 35,704 34,970 34,633 34,686 34,073

Trade balance (million dollars) ............ -692 -510 -713 -776 -393

Ratio of imports to consumption (percent) ... 12.9 13.6 16.0 16.3 16.3

Ratio of exports to shipments (percent) ..... 11.2 12.3 14.3 14.4 15.4

CH047 Carpets and rugs:

Number of establishments ............... 579 588 608 607 606

Employees (thousands) ................. 63 62 63 64 66

Capacity utilization (percent) ............. 78 76 80 72 (

1

)

U.S. shipments (million dollars) ........... 10,405 10,806 10,263 10,853 11,211

U.S. exports (million dollars) ............. 686 757 858 826 772

U.S. imports (million dollars) ............. 858 845 961 1,109 1,248

Apparent U.S. consumption (million dollars) . . 10,576 10,893 10,366 11,136 11,686

Trade balance (million dollars) ............ -171 -87 -103 -283 -475

Ratio of imports to consumption (percent) ... 8.1 7.8 9.3 10.0 10.7

Ratio of exports to shipments (percent) ..... 6.6 7.0 8.4 7.6 6.9

CH048 Home furnishings:

Number of establishments ............... 1,767 1,720 1,675 1,640 1,604

Employees (thousands) ................. 77 76 75 74 71

Capacity utilization (percent) ............. 74 81 82 84 84

U.S. shipments (million dollars) ........... 9,148 9,205 9,573 9,382 9,964

U.S. exports (million dollars) ............. 332 347 415 442 398

U.S. imports (million dollars) ............. 1,493 1,477 1,802 2,271 2,652

Apparent U.S. consumption (million dollars) . . 10,309 10,335 10,959 11,211 12,218

Trade balance (million dollars) ............ -1,161 -1,130 -1,386 -1,829 -2,254

Ratio of imports to consumption (percent) ... 14.5 14.3 16.4 20.3 21.7

Ratio of exports to shipments (percent) ..... 3.6 3.8 4.3 4.7 4.0

CH049 Apparel:

Number of establishments ............... 18,077 17,800 17,600 17,500 17,400

Employees (thousands) ................. 936 868 824 763 685

Capacity utilization (percent) ............. 79 80 77 71 68

U.S. shipments (million dollars) ........... 55,316 54,663 54,990 58,069 58,419

U.S. exports (million dollars) ............. 6,488 7,293 8,394 8,514 7,964

U.S. imports (million dollars) ............. 39,665 41,684 48,492 53,874 56,565

Apparent U.S. consumption (million dollars) . . 88,493 89,054 95,088 103,430 107,020

Trade balance (million dollars) ............ -33,177 -34,391 -40,098 -45,361 -48,601

Ratio of imports to consumption (percent) ... 44.8 46.8 51.0 52.1 52.9

Ratio of exports to shipments (percent) ..... 11.7 13.3 15.3 14.7 13.6
Table B-5--Continued 

Textiles, apparel, and footwear sector: Profile of U.S. industry and market, by industry/commodity groups,

1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-28

CH050 Miscellaneous textile products:

Number of establishments ............... (

1

) (

1

) (

1

) (

1

) (

1

)

Employees (thousands) ................. (

1

) (

1

) (

1

) (

1

) (

1

)

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

2

)

U.S. production (million dollars) ........... (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. exports (million dollars) ............. 1,305 1,380 1,590 1,500 1,589

U.S. imports (million dollars) ............. 1,860 1,893 2,140 2,395 2,696

Apparent U.S. consumption (million dollars) . . (

1

) (

1

) (

1

) (

1

) (

1

)

Trade balance (million dollars) ............ -556 -512 -549 -894 -1,106

Ratio of imports to consumption (percent) ... (

1

) (

1

) (

1

) (

1

) (

1

)

Ratio of exports to production (percent) ..... (

1

) (

1

) (

1

) (

1

) (

1

)

CH051 Footwear:

Number of establishments ............... 660 610 589 551 480

Employees (thousands) ................. 64 54 50 44 38

Capacity utilization (percent) ............. 81 74 74 75 75

U.S. shipments (million dollars) ........... 3,880 3,710 3,643 3,342 3,267

U.S. exports (million dollars) ............. 671 761 802 720 693

U.S. imports (million dollars) ............. 12,095 12,708 13,951 13,879 14,074

Apparent U.S. consumption (million dollars) . . 15,304 15,658 16,792 16,501 16,647

Trade balance (million dollars) ............ -11,424 -11,948 -13,149 -13,159 -13,380

Ratio of imports to consumption (percent) ... 79.0 81.2 83.1 84.1 84.5

Ratio of exports to shipments (percent) ..... 17.3 20.5 22.0 21.6 21.2

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1 Not available.

Note.--Calculations based on unrounded data.
Table B-6

Minerals and metals sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-29

MM001 Clays and related mineral products:

Number of establishments ............... 320 320 320 320 310

Employees (thousands) ................. 14 14 14 14 14

Capacity utilization (percent) ............. 78 80 84 86 (

1

)

U.S. shipments (million dollars) ........... 2,700 2,780 2,840 2,925 3,020

U.S. exports (million dollars) ............. 955 973 1,036 993 952

U.S. imports (million dollars) ............. 122 144 141 190 168

Apparent U.S. consumption (million dollars) . . 1,867 1,952 1,945 2,122 2,237

Trade balance (million dollars) ............ 833 828 895 803 783

Ratio of imports to consumption (percent) ... 6.5 7.4 7.3 8.9 7.5

Ratio of exports to shipments (percent) ..... 35.4 35.0 36.5 33.9 31.5

MM002 Fluorspar and miscellaneous mineral substances:

Number of establishments ............... 8 8 6 6 6

Employees (thousands) ................. 2 2 1 1 (

1

)

Capacity utilization (percent) ............. 80 80 80 (

1

) (

1

)

U.S. shipments (million dollars) ........... 40 40 38 36 37

U.S. exports (million dollars) ............. 76 72 62 53 74

U.S. imports (million dollars) ............. 108 116 155 132 146

Apparent U.S. consumption (million dollars) . . 73 84 132 116 109

Trade balance (million dollars) ............ -33 -44 -94 -80 -72

Ratio of imports to consumption (percent) ... 149.1 137.7 117.9 114.7 133.8

Ratio of exports to shipments (percent) ..... 189.1 179.0 162.0 147.1 199.7

MM003 Iron ores and concentrates:

Number of establishments ............... 18 14 14 12 12

Employees (thousands) ................. 7 8 8 7 7

Capacity utilization (percent) ............. 97 97 98 98 89

U.S. shipments (million dollars) ........... 2,200 2,300 2,300 2,600 2,300

U.S. exports (million dollars) ............. 184 232 235 244 243

U.S. imports (million dollars) ............. 486 556 551 527 399

Apparent U.S. consumption (million dollars) . . 2,501 2,624 2,616 2,883 2,456

Trade balance (million dollars) ............ -301 -324 -316 -283 -156

Ratio of imports to consumption (percent) ... 19.4 21.2 21.1 18.3 16.2

Ratio of exports to shipments (percent) ..... 8.4 10.1 10.2 9.4 10.6

MM004 Copper ores and concentrates:

Number of establishments ............... 40 40 35 35 35

Employees (thousands) ................. 14 13 13 13 13

Capacity utilization (percent) ............. 90 90 90 88 90

U.S. shipments (million dollars) ........... 3,380 2,770 2,740 1,960 1,899

U.S. exports (million dollars) ............. 486 287 211 63 81

U.S. imports (million dollars) ............. 127 70 68 228 82

Apparent U.S. consumption (million dollars) . . 3,020 2,553 2,597 2,125 1,901

Trade balance (million dollars) ............ 360 217 143 -165 -2

Ratio of imports to consumption (percent) ... 4.2 2.8 2.6 10.7 4.3

Ratio of exports to shipments (percent) ..... 14.4 10.4 7.7 3.2 4.2

MM005 Lead ores, concentrates, and residues:

Number of establishments ............... 16 16 16 17 17

Employees (thousands) ................. 2 2 2 1 1

Capacity utilization (percent) ............. 87 87 87 87 87

U.S. shipments (million dollars) ........... 198 257 256 260 226

U.S. exports (million dollars) ............. 25 28 35 65 43

U.S. imports (million dollars) ............. 2 2 6 8 3

Apparent U.S. consumption (million dollars) . . 176 231 226 203 186

Trade balance (million dollars) ............ 22 26 30 57 40

Ratio of imports to consumption (percent) ... 1.3 1.0 2.4 3.9 1.9

Ratio of exports to shipments (percent) ..... 12.4 10.9 13.9 25.1 19.1
Table B-6--Continued

Minerals and metals sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-30

MM006 Zinc ores, concentrates, and residues:

Number of establishments ............... 26 26 26 26 26

Employees (thousands) ................. 3 3 3 3 3

Capacity utilization (percent) ............. 65 65 65 65 65

U.S. shipments (million dollars) ........... 606 543 696 631 666

U.S. exports (million dollars) ............. 242 227 379 304 352

U.S. imports (million dollars) ............. 13 18 45 37 53

Apparent U.S. consumption (million dollars) . . 377 334 363 364 367

Trade balance (million dollars) ............ 229 209 333 267 299

Ratio of imports to consumption (percent) ... 3.3 5.3 12.5 10.1 14.3

Ratio of exports to shipments (percent) ..... 39.9 41.8 54.4 48.1 52.9

MM007 Certain ores, concentrates, ash, and residues:

Number of establishments ............... 41 34 35 36 35

Employees (thousands) ................. 2 2 2 2 2

Capacity utilization (percent) ............. 51 52 51 53 52

U.S. shipments (million dollars) ........... 401 439 487 483 460

U.S. exports (million dollars) ............. 704 362 432 350 237

U.S. imports (million dollars) ............. 622 604 645 710 732

Apparent U.S. consumption (million dollars) . . 319 681 700 843 955

Trade balance (million dollars) ............ 82 -242 -213 -360 -495

Ratio of imports to consumption (percent) ... 195.0 88.7 92.2 84.2 76.6

Ratio of exports to shipments (percent) ..... 175.6 82.4 88.7 72.5 51.4

MM008 Precious metal ores and concentrates:

Number of establishments ............... 300 320 318 321 313

Employees (thousands) ................. 17 18 19 19 17

Capacity utilization (percent) ............. 87 89 89 86 82

U.S. shipments (million dollars) ........... 3,359 3,493 3,393 3,133 2,778

U.S. exports (million dollars) ............. 8 9 21 11 40

U.S. imports (million dollars) ............. 87 74 38 45 4

Apparent U.S. consumption (million dollars) . . 3,438 3,558 3,410 3,168 2,741

Trade balance (million dollars) ............ -79 -65 -17 -35 37

Ratio of imports to consumption (percent) ... 2.5 2.1 1.1 1.4 0.1

Ratio of exports to shipments (percent) ..... 0.2 0.2 0.6 0.3 1.5

MM009 Cement, stone, and related products:

Number of establishments ............... 20,000 20,000 22,000 22,000 23,000

Employees (thousands) ................. 300 300 350 350 360

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 45,000 49,000 52,000 55,000 59,000

U.S. exports (million dollars) ............. 995 1,063 1,213 1,201 1,184

U.S. imports (million dollars) ............. 2,144 2,361 2,860 3,426 4,103

Apparent U.S. consumption (million dollars) . . 46,149 50,297 53,647 57,226 61,919

Trade balance (million dollars) ............ -1,149 -1,297 -1,647 -2,226 -2,919

Ratio of imports to consumption (percent) ... 4.6 4.7 5.3 6.0 6.6

Ratio of exports to shipments (percent) ..... 2.2 2.2 2.3 2.2 2.0

MM010 Industrial ceramics:

Number of establishments ............... 220 220 220 205 200

Employees (thousands) ................. 11 11 12 12 (

1

)

Capacity utilization (percent) ............. 76 76 78 80 (

1

)

U.S. shipments (million dollars) ........... 2,700 2,750 2,830 2,950 3,040

U.S. exports (million dollars) ............. 635 620 723 668 663

U.S. imports (million dollars) ............. 425 448 550 545 648

Apparent U.S. consumption (million dollars) . . 2,490 2,578 2,656 2,827 3,026

Trade balance (million dollars) ............ 210 172 174 123 14

Ratio of imports to consumption (percent) ... 17.1 17.4 20.7 19.3 21.4

Ratio of exports to shipments (percent) ..... 23.5 22.5 25.6 22.6 21.8
Table B-6--Continued

Minerals and metals sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-31

MM011 Ceramic bricks and similar articles:

Number of establishments ............... 220 220 225 225 225

Employees (thousands) ................. 16 16 14 14 14

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 1,100 1,250 1,345 1,470 1,645

U.S. exports (million dollars) ............. 20 22 25 26 20

U.S. imports (million dollars) ............. 16 18 17 20 24

Apparent U.S. consumption (million dollars) . . 1,097 1,246 1,338 1,463 1,650

Trade balance (million dollars) ............ 3 4 7 7 -5

Ratio of imports to consumption (percent) ... 1.5 1.4 1.3 1.3 1.5

Ratio of exports to shipments (percent) ..... 1.8 1.8 1.8 1.8 1.2

MM012 Ceramic floor and wall tiles:

Number of establishments ............... 169 169 169 169 169

Employees (thousands) ................. 9 9 9 9 9

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 730 800 830 840 840

U.S. exports (million dollars) ............. 26 25 29 27 24

U.S. imports (million dollars) ............. 562 628 716 860 1,019

Apparent U.S. consumption (million dollars) . . 1,266 1,404 1,517 1,674 1,835

Trade balance (million dollars) ............ -536 -604 -687 -834 -995

Ratio of imports to consumption (percent) ... 44.4 44.8 47.2 51.4 55.5

Ratio of exports to shipments (percent) ..... 3.6 3.1 3.5 3.2 2.8

MM013 Ceramic household articles:

Number of establishments ............... 65 65 64 63 63

Employees (thousands) ................. 7 6 6 6 (

1

)

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 414 423 421 437 470

U.S. exports (million dollars) ............. 99 95 101 103 109

U.S. imports (million dollars) ............. 1,658 1,556 1,675 1,716 1,671

Apparent U.S. consumption (million dollars) . . 1,972 1,884 1,996 2,050 2,033

Trade balance (million dollars) ............ -1,558 -1,461 -1,575 -1,613 -1,563

Ratio of imports to consumption (percent) ... 84.0 82.6 83.9 83.7 82.2

Ratio of exports to shipments (percent) ..... 23.9 22.6 23.9 23.6 23.1

MM014 Flat glass:

Number of establishments ............... 900 900 900 900 900

Employees (thousands) ................. 43 45 44 45 47

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 7,900 8,600 7,800 8,200 8,400

U.S. exports (million dollars) ............. 1,135 1,278 1,488 1,416 1,506

U.S. imports (million dollars) ............. 917 1,050 1,063 1,120 1,268

Apparent U.S. consumption (million dollars) . . 7,682 8,372 7,375 7,904 8,162

Trade balance (million dollars) ............ 218 228 425 296 238

Ratio of imports to consumption (percent) ... 11.9 12.5 14.4 14.2 15.5

Ratio of exports to shipments (percent) ..... 14.4 14.9 19.1 17.3 17.9

MM015 Glass containers:

Number of establishments ............... 61 61 61 61 61

Employees (thousands) ................. 25 24 21 22 22

Capacity utilization (percent) ............. 90 90 94 95 (

1

)

U.S. shipments (million dollars) ........... 4,343 4,271 4,183 4,200 4,200

U.S. exports (million dollars) ............. 129 148 157 173 173

U.S. imports (million dollars) ............. 377 407 428 452 526

Apparent U.S. consumption (million dollars) . . 4,591 4,530 4,454 4,479 4,553

Trade balance (million dollars) ............ -248 -259 -271 -279 -353

Ratio of imports to consumption (percent) ... 8.2 9.0 9.6 10.1 11.6

Ratio of exports to shipments (percent) ..... 3.0 3.5 3.8 4.1 4.1
Table B-6--Continued

Minerals and metals sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-32

MM016 Household glassware:

Number of establishments ............... 240 240 240 240 240

Employees (thousands) ................. 13 12 12 11 12

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 1,800 1,800 1,700 1,700 1,700

U.S. exports (million dollars) ............. 198 205 250 179 183

U.S. imports (million dollars) ............. 729 746 818 864 937

Apparent U.S. consumption (million dollars) . . 2,331 2,340 2,268 2,385 2,454

Trade balance (million dollars) ............ -531 -540 -568 -685 -754

Ratio of imports to consumption (percent) ... 31.3 31.9 36.1 36.2 38.2

Ratio of exports to shipments (percent) ..... 11.0 11.4 14.7 10.5 10.8

MM017 Miscellaneous glass products:

Number of establishments ............... 510 510 510 510 510

Employees (thousands) ................. 16 17 18 18 18

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 3,200 3,400 3,800 3,700 3,800

U.S. exports (million dollars) ............. 576 604 770 662 674

U.S. imports (million dollars) ............. 583 679 767 702 805

Apparent U.S. consumption (million dollars) . . 3,207 3,475 3,797 3,741 3,931

Trade balance (million dollars) ............ -7 -75 3 -41 -131

Ratio of imports to consumption (percent) ... 18.2 19.5 20.2 18.8 20.5

Ratio of exports to shipments (percent) ..... 18.0 17.8 20.3 17.9 17.7

MM018 Fiberglass insulation products:

Number of establishments ............... 298 298 298 298 298

Employees (thousands) ................. 17 17 18 19 19

Capacity utilization (percent) ............. 90 91 91 96 (

1

)

U.S. shipments (million dollars) ........... 3,200 3,100 3,600 3,800 4,000

U.S. exports (million dollars) ............. 51 67 57 74 71

U.S. imports (million dollars) ............. 63 77 78 71 139

Apparent U.S. consumption (million dollars) . . 3,212 3,110 3,621 3,797 4,069

Trade balance (million dollars) ............ -12 -10 -21 3 -69

Ratio of imports to consumption (percent) ... 1.9 2.5 2.1 1.9 3.4

Ratio of exports to shipments (percent) ..... 1.6 2.2 1.6 1.9 1.8

MM019 Natural and synthetic gemstones:

Number of establishments ............... 330 330 235 235 235

Employees (thousands) ................. 1 1 1 1 1

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 650 700 550 475 570

U.S. exports (million dollars) ............. 268 247 231 217 447

U.S. imports (million dollars) ............. 6,666 7,412 8,564 9,449 11,021

Apparent U.S. consumption (million dollars) . . 7,048 7,865 8,883 9,708 11,145

Trade balance (million dollars) ............ -6,398 -7,165 -8,333 -9,233 -10,575

Ratio of imports to consumption (percent) ... 94.6 94.2 96.4 97.3 98.9

Ratio of exports to shipments (percent) ..... 41.2 35.3 42.0 45.6 78.4

MM020 Precious metals and non-numismatic coins:

Number of establishments ............... 57 58 57 58 58

Employees (thousands) ................. 4 4 4 4 4

Capacity utilization (percent) ............. 82 82 82 75 74

U.S. shipments (million dollars) ........... 3,304 2,848 2,527 2,395 2,428

U.S. exports (million dollars) ............. 6,475 7,886 7,149 6,853 6,510

U.S. imports (million dollars) ............. 4,676 5,330 5,869 7,735 7,708

Apparent U.S. consumption (million dollars) . . 1,506 292 1,247 3,278 3,626

Trade balance (million dollars) ............ 1,798 2,556 1,280 -883 -1,198

Ratio of imports to consumption (percent) ... 310.6 1,826.2 470.8 236.0 212.6

Ratio of exports to shipments (percent) ..... 196.0 276.9 282.9 286.1 268.1
Table B-6--Continued

Minerals and metals sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-33

MM021 Primary iron products:

Number of establishments ............... 23 22 21 23 23

Employees (thousands) ................. 23 22 21 22 22

Capacity utilization (percent) ............. 87 88 92 89 84

U.S. shipments (million dollars) ........... 8,500 8,200 8,300 8,400 7,300

U.S. exports (million dollars) ............. 13 13 19 17 14

U.S. imports (million dollars) ............. 541 552 608 856 643

Apparent U.S. consumption (million dollars) . . 9,028 8,739 8,890 9,238 7,929

Trade balance (million dollars) ............ -528 -539 -590 -838 -629

Ratio of imports to consumption (percent) ... 6.0 6.3 6.8 9.3 8.1

Ratio of exports to shipments (percent) ..... 0.2 0.2 0.2 0.2 0.2

MM022 Ferroalloys:

Number of establishments ............... 25 25 24 23 23

Employees (thousands) ................. 4 4 4 4 4

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

2

)

U.S. shipments (million dollars) ........... 1,125 1,205 1,275 1,255 1,280

U.S. exports (million dollars) ............. 114 137 153 103 80

U.S. imports (million dollars) ............. 1,245 1,217 1,044 1,018 960

Apparent U.S. consumption (million dollars) . . 2,256 2,286 2,166 2,169 2,160

Trade balance (million dollars) ............ -1,131 -1,081 -891 -914 -880

Ratio of imports to consumption (percent) ... 55.2 53.3 48.2 46.9 44.5

Ratio of exports to shipments (percent) ..... 10.1 11.3 12.0 8.2 6.3

MM023 Iron and steel waste and scrap:

Number of establishments ............... 5,000 5,000 5,000 5,000 5,000

Employees (thousands) ................. 36 36 36 36 36

Capacity utilization (percent) ............. 90 90 90 85 80

U.S. shipments (million dollars) ........... 7,700 7,200 7,200 5,800 4,500

U.S. exports (million dollars) ............. 1,703 1,347 1,356 817 750

U.S. imports (million dollars) ............. 300 355 400 418 390

Apparent U.S. consumption (million dollars) . . 6,298 6,208 6,244 5,401 4,140

Trade balance (million dollars) ............ 1,402 992 956 399 360

Ratio of imports to consumption (percent) ... 4.8 5.7 6.4 7.7 9.4

Ratio of exports to shipments (percent) ..... 22.1 18.7 18.8 14.1 16.7

MM024 Abrasive and ferrous products:

Number of establishments ............... 390 407 409 412 412

Employees (thousands) ................. 23 24 22 21 21

Capacity utilization (percent) ............. 82 80 83 85 (

1

)

U.S. shipments (million dollars) ........... 4,352 4,683 4,454 4,539 4,770

U.S. exports (million dollars) ............. 410 449 529 531 518

U.S. imports (million dollars) ............. 633 662 735 735 765

Apparent U.S. consumption (million dollars) . . 4,575 4,896 4,660 4,743 5,017

Trade balance (million dollars) ............ -223 -213 -206 -204 -247

Ratio of imports to consumption (percent) ... 13.8 13.5 15.8 15.5 15.2

Ratio of exports to shipments (percent) ..... 9.4 9.6 11.9 11.7 10.9

MM025 Steel mill products:

Number of establishments ............... 850 850 850 850 850

Employees (thousands) ................. 215 210 205 205 195

Capacity utilization (percent) ............. 93 91 89 87 84

U.S. shipments (million dollars) ........... 66,300 66,300 68,700 65,900 62,600

U.S. exports (million dollars) ............. 4,665 4,076 4,843 4,636 4,291

U.S. imports (million dollars) ............. 11,786 12,756 13,602 16,434 12,749

Apparent U.S. consumption (million dollars) . . 73,421 74,980 77,458 77,698 71,058

Trade balance (million dollars) ............ -7,121 -8,680 -8,758 -11,798 -8,458

Ratio of imports to consumption (percent) ... 16.1 17.0 17.6 21.2 17.9

Ratio of exports to shipments (percent) ..... 7.0 6.1 7.1 7.0 6.9
Table B-6--Continued

Minerals and metals sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-34

MM026 Steel pipe and tube fittings and certain cast

 products:

Number of establishments ............... 500 500 500 500 830

Employees (thousands) ................. 28 26 27 28 26

Capacity utilization (percent) ............. 82 82 83 83 75

U.S. shipments (million dollars) ........... 3,400 3,500 3,800 3,900 3,400

U.S. exports (million dollars) ............. 630 663 749 809 662

U.S. imports (million dollars) ............. 427 515 555 591 584

Apparent U.S. consumption (million dollars) . . 3,196 3,351 3,606 3,681 3,322

Trade balance (million dollars) ............ 204 149 194 219 78

Ratio of imports to consumption (percent) ... 13.3 15.4 15.4 16.0 17.6

Ratio of exports to shipments (percent) ..... 18.5 18.9 19.7 20.7 19.5

MM027 Fabricated structurals:

Number of establishments ............... 2,631 2,916 3,040 3,036 3,034

Employees (thousands) ................. 82 88 93 94 92

Capacity utilization (percent) ............. 70 78 80 75 74

U.S. shipments (million dollars) ........... 14,846 15,318 16,083 17,047 17,481

U.S. exports (million dollars) ............. 143 178 189 151 186

U.S. imports (million dollars) ............. 143 177 205 328 432

Apparent U.S. consumption (million dollars) . . 14,846 15,317 16,098 17,224 17,726

Trade balance (million dollars) ............ (

3

) 1 -15 -177 -245

Ratio of imports to consumption (percent) ... 1.0 1.2 1.3 1.9 2.4

Ratio of exports to shipments (percent) ..... 1.0 1.2 1.2 0.9 1.1

MM028 Metal construction components:

Number of establishments ............... 3,068 2,939 2,867 2,795 2,711

Employees (thousands) ................. 133 136 140 142 148

Capacity utilization (percent) ............. 71 74 67 65 65

U.S. shipments (million dollars) ........... 15,111 16,600 17,964 19,329 20,489

U.S. exports (million dollars) ............. 483 551 689 611 579

U.S. imports (million dollars) ............. 258 353 435 562 693

Apparent U.S. consumption (million dollars) . . 14,886 16,402 17,710 19,280 20,604

Trade balance (million dollars) ............ 225 198 254 49 -115

Ratio of imports to consumption (percent) ... 1.7 2.2 2.5 2.9 3.4

Ratio of exports to shipments (percent) ..... 3.2 3.3 3.8 3.2 2.8

MM029 Metallic containers:

Number of establishments ............... 521 520 520 520 520

Employees (thousands) ................. 59 60 60 58 58

Capacity utilization (percent) ............. 82 87 86 82 82

U.S. shipments (million dollars) ........... 16,760 16,925 18,340 18,340 18,285

U.S. exports (million dollars) ............. 787 796 901 819 690

U.S. imports (million dollars) ............. 380 449 458 463 527

Apparent U.S. consumption (million dollars) . . 16,353 16,578 17,897 17,984 18,123

Trade balance (million dollars) ............ 407 347 443 356 162

Ratio of imports to consumption (percent) ... 2.3 2.7 2.6 2.6 2.9

Ratio of exports to shipments (percent) ..... 4.7 4.7 4.9 4.5 3.8

MM030 Wire products of base metal:

Number of establishments ............... 1,500 1,500 1,500 1,500 1,500

Employees (thousands) ................. 86 84 92 96 103

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 15,551 15,231 16,663 17,363 18,665

U.S. exports (million dollars) ............. 573 660 781 756 674

U.S. imports (million dollars) ............. 1,097 1,145 1,217 1,231 1,354

Apparent U.S. consumption (million dollars) . . 16,075 15,715 17,099 17,838 19,346

Trade balance (million dollars) ............ -524 -484 -436 -475 -681

Ratio of imports to consumption (percent) ... 6.8 7.3 7.1 6.9 7.0

Ratio of exports to shipments (percent) ..... 3.7 4.3 4.7 4.4 3.6
Table B-6--Continued

Minerals and metals sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-35

MM031 Miscellaneous products of base metal:

Number of establishments ............... 1,370 1,460 1,480 1,490 1,510

Employees (thousands) ................. 120 120 120 130 120

Capacity utilization (percent) ............. 75 75 75 70 70

U.S. shipments (million dollars) ........... 16,500 16,900 17,900 19,000 19,500

U.S. exports (million dollars) ............. 3,490 4,112 4,469 4,892 5,369

U.S. imports (million dollars) ............. 4,291 4,729 5,437 5,985 6,639

Apparent U.S. consumption (million dollars) . . 17,301 17,516 18,868 20,094 20,770

Trade balance (million dollars) ............ -801 -616 -968 -1,094 -1,270

Ratio of imports to consumption (percent) ... 24.8 27.0 28.8 29.8 32.0

Ratio of exports to shipments (percent) ..... 21.2 24.3 25.0 25.7 27.5

MM032 Industrial fasteners of base metal:

Number of establishments ............... 893 917 920 923 925

Employees (thousands) ................. 48 49 50 52 51

Capacity utilization (percent) ............. 79 77 78 78 78

U.S. shipments (million dollars) ........... 6,400 6,500 7,200 7,200 7,200

U.S. exports (million dollars) ............. 1,061 1,366 1,333 1,470 1,535

U.S. imports (million dollars) ............. 1,894 1,847 1,907 2,020 2,019

Apparent U.S. consumption (million dollars) . . 7,233 6,982 7,774 7,750 7,684

Trade balance (million dollars) ............ -833 -482 -574 -550 -484

Ratio of imports to consumption (percent) ... 26.2 26.5 24.5 26.1 26.3

Ratio of exports to shipments (percent) ..... 16.6 21.0 18.5 20.4 21.3

MM033 Cooking and kitchen ware:

Number of establishments ............... 130 130 130 130 130

Employees (thousands) ................. 50 51 51 51 51

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) 75

U.S. shipments (million dollars) ........... 1,350 1,300 1,300 1,200 1,300

U.S. exports (million dollars) ............. 245 278 242 244 214

U.S. imports (million dollars) ............. 1,158 1,140 1,303 1,393 1,585

Apparent U.S. consumption (million dollars) . . 2,263 2,162 2,361 2,349 2,671

Trade balance (million dollars) ............ -913 -862 -1,061 -1,149 -1,371

Ratio of imports to consumption (percent) ... 51.2 52.7 55.2 59.3 59.3

Ratio of exports to shipments (percent) ..... 18.2 21.4 18.6 20.4 16.5

MM034 Metal and ceramic sanitary ware:

Number of establishments ............... 150 150 150 150 152

Employees (thousands) ................. 16 16 16 15 15

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) 75

U.S. shipments (million dollars) ........... 1,602 1,628 1,661 1,703 1,658

U.S. exports (million dollars) ............. 159 142 159 147 132

U.S. imports (million dollars) ............. 271 318 332 403 473

Apparent U.S. consumption (million dollars) . . 1,714 1,804 1,834 1,960 1,999

Trade balance (million dollars) ............ -112 -176 -173 -257 -341

Ratio of imports to consumption (percent) ... 15.8 17.6 18.1 20.6 23.7

Ratio of exports to shipments (percent) ..... 9.9 8.7 9.6 8.6 7.9

MM035 Construction castings and other cast-iron articles:

Number of establishments ............... 50 50 50 50 50

Employees (thousands) ................. 6 6 6 8 7

Capacity utilization (percent) ............. 84 85 85 85 85

U.S. shipments (million dollars) ........... 800 900 900 1,100 1,000

U.S. exports (million dollars) ............. 26 44 46 37 27

U.S. imports (million dollars) ............. 87 91 99 110 120

Apparent U.S. consumption (million dollars) . . 861 947 953 1,173 1,092

Trade balance (million dollars) ............ -61 -47 -53 -73 -92

Ratio of imports to consumption (percent) ... 10.1 9.6 10.4 9.4 11.0

Ratio of exports to shipments (percent) ..... 3.2 4.9 5.1 3.3 2.7
Table B-6--Continued

Minerals and metals sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-36

MM036 Copper and related articles:

Number of establishments ............... 680 675 676 673 637

Employees (thousands) ................. 41 40 40 41 41

Capacity utilization (percent) ............. 87 88 88 88 86

U.S. shipments (million dollars) ........... 15,000 13,200 14,000 11,700 11,600

U.S. exports (million dollars) ............. 2,708 2,370 2,228 1,813 1,668

U.S. imports (million dollars) ............. 3,401 3,472 3,743 3,359 3,726

Apparent U.S. consumption (million dollars) . . 15,694 14,302 15,516 13,246 13,658

Trade balance (million dollars) ............ -694 -1,102 -1,516 -1,546 -2,058

Ratio of imports to consumption (percent) ... 21.7 24.3 24.1 25.4 27.3

Ratio of exports to shipments (percent) ..... 18.1 18.0 15.9 15.5 14.4

MM037 Unwrought aluminum:

Number of establishments ............... 163 141 136 137 137

Employees (thousands) ................. 25 25 26 26 26

Capacity utilization (percent) ............. 88 87 86 86 85

U.S. shipments (million dollars) ........... 11,208 9,806 10,555 9,109 9,089

U.S. exports (million dollars) ............. 1,294 1,057 1,023 917 980

U.S. imports (million dollars) ............. 4,585 3,828 4,389 4,558 4,744

Apparent U.S. consumption (million dollars) . . 14,499 12,578 13,921 12,750 12,853

Trade balance (million dollars) ............ -3,291 -2,772 -3,366 -3,641 -3,764

Ratio of imports to consumption (percent) ... 31.6 30.4 31.5 35.7 36.9

Ratio of exports to shipments (percent) ..... 11.5 10.8 9.7 10.1 10.8

MM038 Aluminum mill products:

Number of establishments ............... 237 247 264 266 268

Employees (thousands) ................. 56 56 60 61 60

Capacity utilization (percent) ............. 85 87 88 85 84

U.S. shipments (million dollars) ........... 18,968 17,440 20,526 19,454 19,722

U.S. exports (million dollars) ............. 2,974 2,771 3,133 3,046 2,943

U.S. imports (million dollars) ............. 2,048 1,737 2,009 2,181 2,283

Apparent U.S. consumption (million dollars) . . 18,042 16,407 19,402 18,588 19,062

Trade balance (million dollars) ............ 926 1,033 1,124 866 660

Ratio of imports to consumption (percent) ... 11.4 10.6 10.4 11.7 12.0

Ratio of exports to shipments (percent) ..... 15.7 15.9 15.3 15.7 14.9

MM039 Lead and related articles:

Number of establishments ............... 48 53 53 51 51

Employees (thousands) ................. 6 5 5 4 4

Capacity utilization (percent) ............. 82 82 84 84 85

U.S. shipments (million dollars) ........... 1,900 2,300 2,300 2,200 2,200

U.S. exports (million dollars) ............. 86 163 181 160 154

U.S. imports (million dollars) ............. 195 240 201 190 201

Apparent U.S. consumption (million dollars) . . 2,009 2,377 2,319 2,230 2,246

Trade balance (million dollars) ............ -109 -77 -19 -30 -46

Ratio of imports to consumption (percent) ... 9.7 10.1 8.7 8.5 8.9

Ratio of exports to shipments (percent) ..... 4.5 7.1 7.9 7.3 7.0

MM040 Zinc and related articles:

Number of establishments ............... 39 39 39 39 39

Employees (thousands) ................. 4 4 4 4 4

Capacity utilization (percent) ............. 98 98 98 98 98

U.S. shipments (million dollars) ........... 665 600 815 998 999

U.S. exports (million dollars) ............. 81 98 113 102 107

U.S. imports (million dollars) ............. 952 979 1,328 1,119 1,252

Apparent U.S. consumption (million dollars) . . 1,535 1,482 2,030 2,015 2,144

Trade balance (million dollars) ............ -870 -882 -1,215 -1,017 -1,145

Ratio of imports to consumption (percent) ... 62.0 66.1 65.4 55.5 58.4

Ratio of exports to shipments (percent) ..... 12.2 16.3 13.9 10.2 10.7
Table B-6--Continued

Minerals and metals sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-37

MM041 Certain base metals and chemical elements:

Number of establishments ............... (

1

) (

1

) (

1

) (

1

) (

1

)

Employees (thousands) ................. 22 25 25 25 24

Capacity utilization (percent) ............. 82 82 82 84 74

U.S. shipments (million dollars) ........... 5,700 6,800 6,900 6,300 4,000

U.S. exports (million dollars) ............. 1,190 1,263 1,401 1,398 1,272

U.S. imports (million dollars) ............. 2,536 2,640 2,777 2,424 2,226

Apparent U.S. consumption (million dollars) . . 7,046 8,178 8,276 7,325 4,955

Trade balance (million dollars) ............ -1,346 -1,378 -1,376 -1,025 -955

Ratio of imports to consumption (percent) ... 36.0 32.3 33.6 33.1 44.9

Ratio of exports to shipments (percent) ..... 20.9 18.6 20.3 22.2 31.8

MM042 Nonpowered handtools:

Number of establishments ............... 1,250 1,220 1,200 1,150 1,100

Employees (thousands) ................. 121 120 123 122 121

Capacity utilization (percent) ............. 80 80 80 75 70

U.S. shipments (million dollars) ........... 13,400 13,840 13,829 14,520 15,246

U.S. exports (million dollars) ............. 1,639 1,732 2,188 2,060 2,031

U.S. imports (million dollars) ............. 2,230 2,280 2,725 2,885 2,917

Apparent U.S. consumption (million dollars) . . 13,991 14,388 14,366 15,345 16,133

Trade balance (million dollars) ............ -591 -548 -537 -825 -887

Ratio of imports to consumption (percent) ... 15.9 15.8 19.0 18.8 18.1

Ratio of exports to shipments (percent) ..... 12.2 12.5 15.8 14.2 13.3

MM043 Certain cutlery, sewing implements, and related

 products:

Number of establishments ............... 132 130 130 135 136

Employees (thousands) ................. 11 11 11 11 11

Capacity utilization (percent) ............. 89 90 86 88 75

U.S. shipments (million dollars) ........... 1,920 2,120 2,010 2,090 2,176

U.S. exports (million dollars) ............. 420 480 475 511 583

U.S. imports (million dollars) ............. 656 673 719 781 856

Apparent U.S. consumption (million dollars) . . 2,156 2,313 2,254 2,361 2,449

Trade balance (million dollars) ............ -236 -193 -244 -271 -273

Ratio of imports to consumption (percent) ... 30.4 29.1 31.9 33.1 35.0

Ratio of exports to shipments (percent) ..... 21.9 22.6 23.6 24.4 26.8

MM044 Table flatware and related products:

Number of establishments ............... 5 5 5 5 5

Employees (thousands) ................. 5 5 5 5 5

Capacity utilization (percent) ............. 90 90 93 95 95

U.S. shipments (million dollars) ........... 200 194 205 215 226

U.S. exports (million dollars) ............. 35 30 36 24 26

U.S. imports (million dollars) ............. 272 287 325 327 425

Apparent U.S. consumption (million dollars) . . 436 452 494 518 625

Trade balance (million dollars) ............ -236 -258 -289 -303 -399

Ratio of imports to consumption (percent) ... 62.3 63.6 65.8 63.2 68.0

Ratio of exports to shipments (percent) ..... 17.7 15.4 17.6 11.4 11.6
Table B-6--Continued

Minerals and metals sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

MM045 Certain builders' hardware:

Number of establishments ............... 338 302 298 300 302

Employees (thousands) ................. 44 42 43 43 43

Capacity utilization (percent) ............. 75 76 74 71 70

U.S. shipments (million dollars) ........... 5,067 5,533 5,780 6,127 6,283

U.S. exports (million dollars) ............. 694 696 759 807 823

U.S. imports (million dollars) ............. 1,024 1,186 1,333 1,531 1,696

Apparent U.S. consumption (million dollars) . . 5,397 6,022 6,354 6,850 7,156

Trade balance (million dollars) ............ -330 -489 -574 -723 -873

Ratio of imports to consumption (percent) ... 19.0 19.7 21.0 22.3 23.7

Ratio of exports to shipments (percent) ..... 13.7 12.6 13.1 13.2 13.1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1

 Not available.

2 Capacity utilization could not be meaningfully calculated for this industry.

3 Less than $500,000.

Note.--Calculations based on unrounded data.

B-38
Table B-7

Machinery sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-39

MM068 Wiring harnesses for motor vehicles:

Number of establishments ............... (

1

) (

1

) (

1

) (

1

) (

1

)

Employees (thousands) ................. (

1

) (

1

) (

1

) (

1

) (

1

)

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 4,620 4,755 5,110 5,460 6,150

U.S. exports (million dollars) ............. 1,302 1,366 1,453 1,315 993

U.S. imports (million dollars) ............. 3,441 3,733 4,280 4,408 4,868

Apparent U.S. consumption (million dollars) . . 6,759 7,122 7,937 8,552 10,025

Trade balance (million dollars) ............ -2,139 -2,367 -2,827 -3,092 -3,875

Ratio of imports to consumption (percent) ... 50.9 52.4 53.9 51.5 48.6

Ratio of exports to shipments (percent) ..... 28.2 28.7 28.4 24.1 16.1

MM069 Pumps for motor vehicles:

Number of establishments ............... 172 178 183 192 202

Employees (thousands) ................. 25 26 26 27 27

Capacity utilization (percent) ............. 69 70 71 72 72

U.S. shipments (million dollars) ........... 2,512 2,590 2,705 2,840 2,982

U.S. exports (million dollars) ............. 334 350 432 556 546

U.S. imports (million dollars) ............. 720 716 767 780 776

Apparent U.S. consumption (million dollars) . . 2,898 2,956 3,040 3,063 3,212

Trade balance (million dollars) ............ -386 -366 -335 -223 -230

Ratio of imports to consumption (percent) ... 24.8 24.2 25.2 25.5 24.2

Ratio of exports to shipments (percent) ..... 13.3 13.5 16.0 19.6 18.3

MM070 Pumps for liquids:

Number of establishments ............... 385 395 407 425 450

Employees (thousands) ................. 30 30 31 32 36

Capacity utilization (percent) ............. 72 73 73 68 69

U.S. shipments (million dollars) ........... 5,620 5,715 5,892 6,289 6,603

U.S. exports (million dollars) ............. 2,034 2,154 2,546 2,340 2,325

U.S. imports (million dollars) ............. 1,247 1,345 1,436 1,587 1,643

Apparent U.S. consumption (million dollars) . . 4,833 4,906 4,782 5,536 5,920

Trade balance (million dollars) ............ 787 809 1,110 753 683

Ratio of imports to consumption (percent) ... 25.8 27.4 30.0 28.7 27.7

Ratio of exports to shipments (percent) ..... 36.2 37.7 43.2 37.2 35.2

MM071 Air-conditioning equipment and parts:

Number of establishments ............... 1,275 1,300 1,222 1,205 1,225

Employees (thousands) ................. 152 155 146 140 148

Capacity utilization (percent) ............. 85 87 77 75 73

U.S. shipments (million dollars) ........... 26,946 28,293 26,595 25,528 26,500

U.S. exports (million dollars) ............. 4,538 4,988 5,726 5,471 5,641

U.S. imports (million dollars) ............. 4,129 4,576 4,433 4,945 5,604

Apparent U.S. consumption (million dollars) . . 26,537 27,881 25,301 25,002 26,463

Trade balance (million dollars) ............ 409 412 1,294 526 37

Ratio of imports to consumption (percent) ... 15.6 16.4 17.5 19.8 21.2

Ratio of exports to shipments (percent) ..... 16.8 17.6 21.5 21.4 21.3

MM072 Industrial thermal-processing equipment and

 furnaces:

Number of establishments ............... 308 315 300 290 329

Employees (thousands) ................. 35 36 34 32 33

Capacity utilization (percent) ............. 67 70 67 68 67

U.S. shipments (million dollars) ........... 3,549 3,726 3,539 3,610 3,715

U.S. exports (million dollars) ............. 2,144 2,212 2,567 2,352 2,292

U.S. imports (million dollars) ............. 1,123 1,368 1,313 1,351 1,483

Apparent U.S. consumption (million dollars) . . 2,528 2,882 2,285 2,609 2,906

Trade balance (million dollars) ............ 1,021 844 1,254 1,001 809

Ratio of imports to consumption (percent) ... 44.4 47.5 57.4 51.8 51.0

Ratio of exports to shipments (percent) ..... 60.4 59.4 72.5 65.2 61.7
Table B-7--Continued

Machinery sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-40

MM073 Household appliances, including commercial

 applications:

Number of establishments ............... 367 374 390 406 426

Employees (thousands) ................. 121 120 115 117 118

Capacity utilization (percent) ............. 79 76 73 72 73

U.S. shipments (million dollars) ........... 21,776 22,157 21,203 22,014 23,103

U.S. exports (million dollars) ............. 5,029 5,503 5,990 5,895 5,524

U.S. imports (million dollars) ............. 5,253 5,468 5,916 6,608 7,302

Apparent U.S. consumption (million dollars) . . 22,000 22,122 21,129 22,727 24,881

Trade balance (million dollars) ............ -224 35 74 -713 -1,778

Ratio of imports to consumption (percent) ... 23.9 24.7 28.0 29.1 29.3

Ratio of exports to shipments (percent) ..... 23.1 24.8 28.2 26.8 23.9

MM074 Centrifuges and filtering and purifying equipment:

Number of establishments ............... 280 280 280 280 281

Employees (thousands) ................. 29 32 32 32 33

Capacity utilization (percent) ............. 70 69 70 70 71

U.S. shipments (million dollars) ........... 4,086 4,455 4,500 4,815 5,080

U.S. exports (million dollars) ............. 2,117 2,365 2,822 2,431 2,564

U.S. imports (million dollars) ............. 1,248 1,391 1,325 1,442 1,783

Apparent U.S. consumption (million dollars) . . 3,217 3,481 3,004 3,827 4,299

Trade balance (million dollars) ............ 869 974 1,496 988 781

Ratio of imports to consumption (percent) ... 38.8 40.0 44.1 37.7 41.5

Ratio of exports to shipments (percent) ..... 51.8 53.1 62.7 50.5 50.5

MM075 Wrapping, packaging, and can-sealing machinery:

Number of establishments ............... 629 687 719 751 782

Employees (thousands) ................. 17 16 17 17 18

Capacity utilization (percent) ............. 81 77 73 71 72

U.S. shipments (million dollars) ........... 4,185 4,056 4,379 4,613 4,848

U.S. exports (million dollars) ............. 839 841 871 791 766

U.S. imports (million dollars) ............. 932 1,042 1,104 1,072 1,117

Apparent U.S. consumption (million dollars) . . 4,278 4,257 4,612 4,894 5,199

Trade balance (million dollars) ............ -93 -201 -233 -281 -351

Ratio of imports to consumption (percent) ... 21.8 24.5 23.9 21.9 21.5

Ratio of exports to shipments (percent) ..... 20.1 20.7 19.9 17.2 15.8

MM076 Scales and weighing machinery:

Number of establishments ............... 120 116 115 114 113

Employees (thousands) ................. 6 5 5 5 5

Capacity utilization (percent) ............. 71 68 62 60 60

U.S. shipments (million dollars) ........... 643 729 691 694 696

U.S. exports (million dollars) ............. 127 136 154 147 145

U.S. imports (million dollars) ............. 201 197 228 223 265

Apparent U.S. consumption (million dollars) . . 716 790 765 770 817

Trade balance (million dollars) ............ -73 -61 -74 -76 -121

Ratio of imports to consumption (percent) ... 28.0 24.9 29.8 28.9 32.5

Ratio of exports to shipments (percent) ..... 19.8 18.7 22.3 21.2 20.8

MM077 Mineral processing machinery:

Number of establishments ............... 90 90 90 90 90

Employees (thousands) ................. 7 7 7 7 7

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

1

)

U.S. shipments (million dollars) ........... 619 605 673 675 521

U.S. exports (million dollars) ............. 673 674 915 764 590

U.S. imports (million dollars) ............. 371 432 508 574 667

Apparent U.S. consumption (million dollars) . . 317 363 266 486 599

Trade balance (million dollars) ............ 302 242 407 189 -78

Ratio of imports to consumption (percent) ... 117.0 119.0 191.2 118.3 111.5

Ratio of exports to shipments (percent) ..... 108.7 111.4 136.0 113.2 113.2
Table B-7--Continued

Machinery sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-41

MM078 Farm and garden machinery and equipment:

Number of establishments ............... 1,870 1,820 1,800 1,890 1,870

Employees (thousands) ................. 100 98 101 101 96

Capacity utilization (percent) ............. 72 74 76 70 63

U.S. shipments (million dollars) ........... 16,200 16,810 17,675 18,846 17,300

U.S. exports (million dollars) ............. 4,325 4,859 5,877 5,581 4,536

U.S. imports (million dollars) ............. 3,479 3,384 3,891 4,171 3,294

Apparent U.S. consumption (million dollars) . . 15,354 15,334 15,689 17,436 16,058

Trade balance (million dollars) ............ 846 1,476 1,986 1,410 1,242

Ratio of imports to consumption (percent) ... 22.7 22.1 24.8 23.9 20.5

Ratio of exports to shipments (percent) ..... 26.7 28.9 33.2 29.6 26.2

MM079 Industrial food-processing and related machinery:

Number of establishments ............... 531 526 531 535 540

Employees (thousands) ................. 20 21 20 20 20

Capacity utilization (percent) ............. 71 71 72 68 70

U.S. shipments (million dollars) ........... 2,819 2,798 2,950 3,051 3,151

U.S. exports (million dollars) ............. 694 708 697 688 611

U.S. imports (million dollars) ............. 552 505 549 619 621

Apparent U.S. consumption (million dollars) . . 2,677 2,595 2,803 2,981 3,160

Trade balance (million dollars) ............ 142 203 147 70 -9

Ratio of imports to consumption (percent) ... 20.6 19.5 19.6 20.8 19.6

Ratio of exports to shipments (percent) ..... 24.6 25.3 23.6 22.6 19.4

MM080 Pulp, paper, and paperboard machinery:

Number of establishments ............... 337 346 355 358 366

Employees (thousands) ................. 19 20 20 20 20

Capacity utilization (percent) ............. 92 87 79 73 73

U.S. shipments (million dollars) ........... 3,424 3,419 3,461 3,619 3,777

U.S. exports (million dollars) ............. 857 851 990 809 738

U.S. imports (million dollars) ............. 978 1,178 1,105 1,037 1,003

Apparent U.S. consumption (million dollars) . . 3,545 3,746 3,576 3,846 4,041

Trade balance (million dollars) ............ -121 -327 -115 -227 -264

Ratio of imports to consumption (percent) ... 27.6 31.4 30.9 27.0 24.8

Ratio of exports to shipments (percent) ..... 25.0 24.9 28.6 22.4 19.6

MM081 Printing and related machinery:

Number of establishments ............... 500 522 533 545 556

Employees (thousands) ................. 22 22 19 18 18

Capacity utilization (percent) ............. 74 74 70 72 72

U.S. shipments (million dollars) ........... 3,498 3,654 3,299 3,309 3,320

U.S. exports (million dollars) ............. 1,297 1,421 1,486 1,455 1,347

U.S. imports (million dollars) ............. 2,009 1,796 2,048 2,231 2,304

Apparent U.S. consumption (million dollars) . . 4,210 4,029 3,861 4,085 4,278

Trade balance (million dollars) ............ -712 -375 -562 -776 -958

Ratio of imports to consumption (percent) ... 47.7 44.6 53.0 54.6 53.9

Ratio of exports to shipments (percent) ..... 37.1 38.9 45.0 44.0 40.6

MM082 Textile machinery:

Number of establishments ............... 500 500 500 500 500

Employees (thousands) ................. 17 16 17 16 16

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

1

)

U.S. shipments (million dollars) ........... 1,620 1,475 1,642 1,724 1,546

U.S. exports (million dollars) ............. 752 728 849 760 682

U.S. imports (million dollars) ............. 1,752 1,528 1,686 1,958 1,490

Apparent U.S. consumption (million dollars) . . 2,620 2,275 2,479 2,922 2,354

Trade balance (million dollars) ............ -1,000 -800 -837 -1,198 -808

Ratio of imports to consumption (percent) ... 66.9 67.2 68.0 67.0 63.3

Ratio of exports to shipments (percent) ..... 46.4 49.3 51.7 44.1 44.1
Table B-7--Continued

Machinery sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-42

MM083 Metal rolling mills:

Number of establishments ............... 15 15 15 15 15

Employees (thousands) ................. 3 3 3 3 3

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

1

)

U.S. shipments (million dollars) ........... 610 722 762 840 511

U.S. exports (million dollars) ............. 235 205 262 252 153

U.S. imports (million dollars) ............. 278 533 394 514 321

Apparent U.S. consumption (million dollars) . . 653 1,050 894 1,102 679

Trade balance (million dollars) ............ -43 -328 -132 -262 -168

Ratio of imports to consumption (percent) ... 42.6 50.7 44.1 46.6 47.3

Ratio of exports to shipments (percent) ..... 38.5 28.4 34.4 30.0 30.0

MM084 Metal cutting machine tools and machine tool

 accessories:

Number of establishments ............... 800 750 750 720 700

Employees (thousands) ................. 88 87 88 87 83

Capacity utilization (percent) ............. 76 74 73 70 70

U.S. shipments (million dollars) ........... 6,580 6,627 7,138 7,021 5,908

U.S. exports (million dollars) ............. 1,722 2,228 2,206 1,985 1,773

U.S. imports (million dollars) ............. 3,512 3,880 4,298 4,590 3,921

Apparent U.S. consumption (million dollars) . . 8,370 8,279 9,230 9,626 8,056

Trade balance (million dollars) ............ -1,790 -1,652 -2,092 -2,605 -2,148

Ratio of imports to consumption (percent) ... 42.0 46.9 46.6 47.7 48.7

Ratio of exports to shipments (percent) ..... 26.2 33.6 30.9 28.3 30.0

MM085 Metal forming machine tools:

Number of establishments ............... 340 340 310 300 (

1

)

Employees (thousands) ................. 18 18 17 16 (

1

)

Capacity utilization (percent) ............. 80 76 86 80 80

U.S. shipments (million dollars) ........... 3,050 3,052 3,204 3,089 2,994

U.S. exports (million dollars) ............. 862 1,033 1,054 996 947

U.S. imports (million dollars) ............. 1,125 1,226 1,355 1,409 1,312

Apparent U.S. consumption (million dollars) . . 3,313 3,245 3,505 3,502 3,359

Trade balance (million dollars) ............ -263 -193 -301 -413 -365

Ratio of imports to consumption (percent) ... 34.0 37.8 38.6 40.2 39.1

Ratio of exports to shipments (percent) ..... 28.3 33.9 32.9 32.2 31.6

MM086 Non-metalworking machine tools:

Number of establishments ............... 330 330 300 290 280

Employees (thousands) ................. 16 17 18 20 21

Capacity utilization (percent) ............. 85 85 85 80 80

U.S. shipments (million dollars) ........... 2,564 2,900 3,126 3,283 3,446

U.S. exports (million dollars) ............. 1,456 1,368 1,610 617 792

U.S. imports (million dollars) ............. 993 1,207 1,464 1,229 1,318

Apparent U.S. consumption (million dollars) . . 2,101 2,739 2,980 3,895 3,972

Trade balance (million dollars) ............ 463 161 146 -612 -526

Ratio of imports to consumption (percent) ... 47.3 44.1 49.1 31.5 33.2

Ratio of exports to shipments (percent) ..... 56.8 47.2 51.5 18.8 23.0

MM087 Semiconductor manufacturing equipment and

 robotics:

Number of establishments ............... 440 420 420 400 410

Employees (thousands) ................. 44 53 53 50 52

Capacity utilization (percent) ............. 100 100 98 70 75

U.S. shipments (million dollars) ........... 12,655 15,474 13,498 12,608 13,112

U.S. exports (million dollars) ............. 6,059 5,417 5,787 7,965 7,986

U.S. imports (million dollars) ............. 2,008 2,019 3,289 2,809 3,123

Apparent U.S. consumption (million dollars) . . 8,604 12,076 11,000 7,451 8,250

Trade balance (million dollars) ............ 4,051 3,398 2,498 5,157 4,862

Ratio of imports to consumption (percent) ... 23.3 16.7 29.9 37.7 37.9

Ratio of exports to shipments (percent) ..... 47.9 35.0 42.9 63.2 60.9
Table B-7--Continued

Machinery sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-43

MM088 Taps, cocks, valves, and similar devices:

Number of establishments ............... 893 890 935 825 797

Employees (thousands) ................. 74 72 74 72 70

Capacity utilization (percent) ............. 76 76 78 75 75

U.S. shipments (million dollars) ........... 10,355 10,614 11,144 11,033 11,687

U.S. exports (million dollars) ............. 2,180 2,423 2,745 2,836 2,959

U.S. imports (million dollars) ............. 2,931 3,128 3,566 3,974 4,335

Apparent U.S. consumption (million dollars) . . 11,107 11,319 11,965 12,171 13,063

Trade balance (million dollars) ............ -752 -705 -821 -1,138 -1,376

Ratio of imports to consumption (percent) ... 26.4 27.6 29.8 32.7 33.2

Ratio of exports to shipments (percent) ..... 21.0 22.8 24.6 25.7 25.3

MM089 Mechanical power transmission equipment:

Number of establishments ............... 230 210 210 210 200

Employees (thousands) ................. 40 38 39 40 38

Capacity utilization (percent) ............. 72 76 77 80 75

U.S. shipments (million dollars) ........... 4,334 4,551 4,609 4,812 4,969

U.S. exports (million dollars) ............. 818 889 1,027 1,011 942

U.S. imports (million dollars) ............. 1,607 1,607 1,650 1,843 2,008

Apparent U.S. consumption (million dollars) . . 5,123 5,269 5,232 5,644 6,035

Trade balance (million dollars) ............ -789 -718 -623 -832 -1,066

Ratio of imports to consumption (percent) ... 31.4 30.5 31.5 32.7 33.3

Ratio of exports to shipments (percent) ..... 18.9 19.5 22.3 21.0 19.0

MM090 Boilers, turbines, and related machinery:

Number of establishments ............... 30 30 30 28 28

Employees (thousands) ................. 9 9 9 8 8

Capacity utilization (percent) ............. 65 70 73 70 70

U.S. shipments (million dollars) ........... 1,589 1,721 1,577 1,594 1,610

U.S. exports (million dollars) ............. 1,540 1,560 1,864 1,495 1,290

U.S. imports (million dollars) ............. 363 499 345 370 484

Apparent U.S. consumption (million dollars) . . 412 661 58 469 804

Trade balance (million dollars) ............ 1,177 1,060 1,519 1,125 806

Ratio of imports to consumption (percent) ... 88.1 75.6 591.3 79.0 60.2

Ratio of exports to shipments (percent) ..... 96.9 90.6 118.2 93.8 80.1

MM091 Electric motors, generators, and related equipment:

Number of establishments ............... 510 510 515 515 510

Employees (thousands) ................. 96 96 94 95 95

Capacity utilization (percent) ............. 80 81 74 76 75

U.S. shipments (million dollars) ........... 17,770 17,800 18,250 19,100 19,150

U.S. exports (million dollars) ............. 3,383 3,308 3,843 3,955 3,728

U.S. imports (million dollars) ............. 3,878 3,874 4,178 4,748 6,089

Apparent U.S. consumption (million dollars) . . 18,265 18,366 18,585 19,893 21,512

Trade balance (million dollars) ............ -495 -566 -335 -793 -2,362

Ratio of imports to consumption (percent) ... 21.2 21.1 22.5 23.9 28.3

Ratio of exports to shipments (percent) ..... 19.0 18.6 21.1 20.7 19.5

MM092 Electrical transformers, static converters, and

 inductors:

Number of establishments ............... 410 415 415 415 420

Employees (thousands) ................. 56 58 59 58 57

Capacity utilization (percent) ............. 74 75 76 74 76

U.S. shipments (million dollars) ........... 7,585 7,700 8,350 8,570 8,600

U.S. exports (million dollars) ............. 2,000 1,924 2,485 2,304 2,379

U.S. imports (million dollars) ............. 3,537 3,632 4,294 4,485 4,950

Apparent U.S. consumption (million dollars) . . 9,123 9,409 10,159 10,751 11,171

Trade balance (million dollars) ............ -1,538 -1,709 -1,809 -2,181 -2,571

Ratio of imports to consumption (percent) ... 38.8 38.6 42.3 41.7 44.3

Ratio of exports to shipments (percent) ..... 26.4 25.0 29.8 26.9 27.7
Table B-7--Continued

Machinery sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-44

MM093 Portable electric handtools:

Number of establishments ............... 30 30 29 30 28

Employees (thousands) ................. 10 10 10 10 10

Capacity utilization (percent) ............. 80 78 80 82 81

U.S. shipments (million dollars) ........... 1,930 2,060 2,020 2,150 2,280

U.S. exports (million dollars) ............. 369 333 443 383 392

U.S. imports (million dollars) ............. 481 607 765 834 992

Apparent U.S. consumption (million dollars) . . 2,042 2,335 2,342 2,601 2,880

Trade balance (million dollars) ............ -112 -275 -322 -451 -600

Ratio of imports to consumption (percent) ... 23.6 26.0 32.7 32.1 34.5

Ratio of exports to shipments (percent) ..... 19.1 16.1 21.9 17.8 17.2

MM094 Nonelectrically powered handtools and parts

 thereof:

Number of establishments ............... 46 42 42 38 38

Employees (thousands) ................. 12 12 12 11 12

Capacity utilization (percent) ............. 80 77 80 77 78

U.S. shipments (million dollars) ........... 1,558 1,800 1,769 1,822 1,877

U.S. exports (million dollars) ............. 462 478 579 553 537

U.S. imports (million dollars) ............. 661 684 735 782 890

Apparent U.S. consumption (million dollars) . . 1,757 2,006 1,925 2,052 2,230

Trade balance (million dollars) ............ -199 -206 -156 -230 -353

Ratio of imports to consumption (percent) ... 37.6 34.1 38.2 38.1 39.9

Ratio of exports to shipments (percent) ..... 29.7 26.6 32.7 30.3 28.6

MM095 Electric lamps (bulbs) and portable electric lights:

Number of establishments ............... 125 127 125 120 120

Employees (thousands) ................. 25 26 27 28 27

Capacity utilization (percent) ............. 72 71 70 73 70

U.S. shipments (million dollars) ........... 3,200 3,400 3,500 3,650 3,600

U.S. exports (million dollars) ............. 786 833 955 896 894

U.S. imports (million dollars) ............. 1,097 1,153 1,215 1,287 1,454

Apparent U.S. consumption (million dollars) . . 3,511 3,720 3,760 4,041 4,161

Trade balance (million dollars) ............ -311 -320 -260 -391 -561

Ratio of imports to consumption (percent) ... 31.3 31.0 32.3 31.8 35.0

Ratio of exports to shipments (percent) ..... 24.6 24.5 27.3 24.5 24.8

MM096 Welding and soldering equipment:

Number of establishments ............... 225 250 245 245 250

Employees (thousands) ................. 16 16 17 17 18

Capacity utilization (percent) ............. 74 79 78 78 78

U.S. shipments (million dollars) ........... 3,600 3,880 4,062 4,300 4,500

U.S. exports (million dollars) ............. 695 744 982 810 989

U.S. imports (million dollars) ............. 643 731 863 781 702

Apparent U.S. consumption (million dollars) . . 3,548 3,867 3,943 4,271 4,213

Trade balance (million dollars) ............ 52 13 119 29 287

Ratio of imports to consumption (percent) ... 18.1 18.9 21.9 18.3 16.7

Ratio of exports to shipments (percent) ..... 19.3 19.2 24.2 18.8 22.0

MM097 Nonautomotive insulated electrical wire and related

 products:

Number of establishments ............... 535 535 530 530 525

Employees (thousands) ................. 87 90 91 92 91

Capacity utilization (percent) ............. 85 85 83 85 80

U.S. shipments (million dollars) ........... 16,565 17,200 18,450 19,750 19,700

U.S. exports (million dollars) ............. 2,272 2,578 3,045 2,950 3,102

U.S. imports (million dollars) ............. 1,959 2,202 2,540 2,814 3,078

Apparent U.S. consumption (million dollars) . . 16,252 16,825 17,945 19,615 19,676

Trade balance (million dollars) ............ 313 375 505 135 24

Ratio of imports to consumption (percent) ... 12.1 13.1 14.2 14.3 15.6

Ratio of exports to shipments (percent) ..... 13.7 15.0 16.5 14.9 15.7
Table B-7--Continued

Machinery sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-45

MM098 Miscellaneous machinery:

Number of establishments ............... 5,500 5,500 5,550 5,550 5,560

Employees (thousands) ................. 230 230 230 230 235

Capacity utilization (percent) ............. (

1

) (

1

) (

1

) (

1

) (

1

)

U.S. shipments (million dollars) ........... 24,000 24,000 26,712 29,000 34,510

U.S. exports (million dollars) ............. 4,998 6,828 7,624 5,750 6,843

U.S. imports (million dollars) ............. 4,523 4,969 4,890 5,941 6,220

Apparent U.S. consumption (million dollars) . . 23,525 22,141 23,978 29,190 33,887

Trade balance (million dollars) ............ 475 1,859 2,734 -190 623

Ratio of imports to consumption (percent) ... 19.2 22.4 20.4 20.4 18.4

Ratio of exports to shipments (percent) ..... 20.8 28.5 28.5 19.8 19.8

MM099 Molds and molding machinery:

Number of establishments ............... 120 120 120 120 120

Employees (thousands) ................. 8 8 8 8 8

Capacity utilization (percent) ............. (

2

) (

2

) (

2

) (

2

) (

1

)

U.S. shipments (million dollars) ........... 4,775 4,922 5,478 5,750 5,233

U.S. exports (million dollars) ............. 1,427 1,585 1,866 1,896 1,879

U.S. imports (million dollars) ............. 3,811 3,323 3,422 3,512 3,723

Apparent U.S. consumption (million dollars) . . 7,158 6,659 7,034 7,367 7,077

Trade balance (million dollars) ............ -2,383 -1,737 -1,556 -1,617 -1,844

Ratio of imports to consumption (percent) ... 53.2 49.9 48.7 47.7 52.6

Ratio of exports to shipments (percent) ..... 29.9 32.2 34.1 33.0 35.9

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1 Not available.

2 Capacity utilization could not be meaningfully calculated for this industry.

Note.--Calculations based on unrounded data.
Table B-8

Transportation equipment sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-

99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-46

ET001 Aircraft engines and gas turbines:

Number of establishments ............... 30 30 30 30 28

Employees (thousands) ................. 114 122 91 131 127

Capacity utilization (percent) ............. 80 85 90 95 95

U.S. shipments (million dollars) ........... 19,502 22,902 20,656 21,859 21,879

U.S. exports (million dollars) ............. 8,641 8,963 11,594 13,115 14,218

U.S. imports (million dollars) ............. 5,285 6,241 8,380 10,404 10,328

Apparent U.S. consumption (million dollars) . . 16,146 20,180 17,443 19,148 17,990

Trade balance (million dollars) ............ 3,356 2,722 3,213 2,711 3,889

Ratio of imports to consumption (percent) ... 32.7 30.9 48.0 54.3 57.4

Ratio of exports to shipments (percent) ..... 44.3 39.1 56.1 60.0 65.0

ET002 Internal combustion piston engines, other than for

 aircraft:

Number of establishments ............... 1,100 1,100 1,500 1,500 1,500

Employees (thousands) ................. 150 150 160 160 160

Capacity utilization (percent) ............. 82 85 85 85 88

U.S. shipments (million dollars) ........... 43,600 46,900 48,750 52,700 57,000

U.S. exports (million dollars) ............. 8,906 9,167 10,625 11,015 12,522

U.S. imports (million dollars) ............. 8,508 9,533 9,987 11,478 14,052

Apparent U.S. consumption (million dollars) . . 43,202 47,266 48,112 53,163 58,530

Trade balance (million dollars) ............ 398 -366 638 -463 -1,530

Ratio of imports to consumption (percent) ... 19.7 20.2 20.8 21.6 24.0

Ratio of exports to shipments (percent) ..... 20.4 19.5 21.8 20.9 22.0

ET003 Forklift trucks and similar industrial vehicles:

Number of establishments ............... 450 450 460 455 453

Employees (thousands) ................. 20 21 26 25 25

Capacity utilization (percent) ............. 68 70 71 78 80

U.S. shipments (million dollars) ........... 4,600 4,866 5,532 5,940 6,100

U.S. exports (million dollars) ............. 928 920 1,161 1,188 1,243

U.S. imports (million dollars) ............. 1,136 1,007 1,164 1,456 1,527

Apparent U.S. consumption (million dollars) . . 4,808 4,954 5,535 6,208 6,384

Trade balance (million dollars) ............ -208 -88 -3 -268 -284

Ratio of imports to consumption (percent) ... 23.6 20.3 21.0 23.4 23.9

Ratio of exports to shipments (percent) ..... 20.2 18.9 21.0 20.0 20.4

ET004 Construction and mining equipment:

Number of establishments ............... 1,640 1,660 1,663 1,661 1,664

Employees (thousands) ................. 103 113 117 115 118

Capacity utilization (percent) ............. 75 81 85 87 86

U.S. shipments (million dollars) ........... 22,500 28,670 30,549 38,646 36,750

U.S. exports (million dollars) ............. 8,001 9,248 10,512 10,944 8,646

U.S. imports (million dollars) ............. 3,902 4,032 4,988 6,299 5,919

Apparent U.S. consumption (million dollars) . . 18,401 23,454 25,025 34,001 34,023

Trade balance (million dollars) ............ 4,099 5,216 5,524 4,645 2,727

Ratio of imports to consumption (percent) ... 21.2 17.2 19.9 18.5 17.4

Ratio of exports to shipments (percent) ..... 35.6 32.3 34.4 28.3 23.5

ET005 Ball and rollers bearings:

Number of establishments ............... 180 182 184 183 183

Employees (thousands) ................. 35 36 37 37 37

Capacity utilization (percent) ............. 79 80 83 82 82

U.S. shipments (million dollars) ........... 5,205 5,488 6,091 5,878 5,900

U.S. exports (million dollars) ............. 967 1,008 1,140 1,141 1,098

U.S. imports (million dollars) ............. 1,520 1,526 1,615 1,719 1,622

Apparent U.S. consumption (million dollars) . . 5,758 6,006 6,566 6,456 6,424

Trade balance (million dollars) ............ -553 -518 -475 -578 -524

Ratio of imports to consumption (percent) ... 26.4 25.4 24.6 26.6 25.2

Ratio of exports to shipments (percent) ..... 18.6 18.4 18.7 19.4 18.6
Table B-8

Transportation equipment sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-

99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Table B-8--Continued

Transportation equipment sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-

99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-47

ET006 Primary cells and batteries and electric storage

 batteries:

Number of establishments ............... 222 222 180 180 180

Employees (thousands) ................. 32 32 32 32 32

Capacity utilization (percent) ............. 87 85 80 80 82

U.S. shipments (million dollars) ........... 5,900 6,075 6,700 7,000 7,400

U.S. exports (million dollars) ............. 1,208 2,309 2,527 2,309 2,307

U.S. imports (million dollars) ............. 1,637 1,826 2,017 2,056 2,392

Apparent U.S. consumption (million dollars) . . 6,329 5,592 6,189 6,747 7,484

Trade balance (million dollars) ............ -429 483 511 253 -84

Ratio of imports to consumption (percent) ... 25.9 32.7 32.6 30.5 32.0

Ratio of exports to shipments (percent) ..... 20.5 38.0 37.7 33.0 31.2

ET007 Ignition, starting, lighting, and other electrical

 equipment:

Number of establishments ............... 525 525 700 700 700

Employees (thousands) ................. 64 64 76 76 76

Capacity utilization (percent) ............. 75 75 75 78 80

U.S. shipments (million dollars) ........... 8,500 8,500 9,300 9,800 10,300

U.S. exports (million dollars) ............. 1,336 1,404 1,579 1,725 1,947

U.S. imports (million dollars) ............. 1,833 2,032 2,170 2,363 2,817

Apparent U.S. consumption (million dollars) . . 8,997 9,129 9,891 10,437 11,170

Trade balance (million dollars) ............ -497 -629 -591 -637 -870

Ratio of imports to consumption (percent) ... 20.4 22.3 21.9 22.6 25.2

Ratio of exports to shipments (percent) ..... 15.7 16.5 17.0 17.6 18.9

ET008 Rail locomotive and rolling stock:

Number of establishments ............... 140 140 142 140 145

Employees (thousands) ................. 25 25 27 27 29

Capacity utilization (percent) ............. 95 93 95 95 97

U.S. shipments (million dollars) ........... 5,623 5,305 5,700 6,000 6,800

U.S. exports (million dollars) ............. 877 851 1,229 1,694 1,558

U.S. imports (million dollars) ............. 1,292 1,312 1,372 2,156 2,307

Apparent U.S. consumption (million dollars) . . 6,037 5,766 5,843 6,462 7,549

Trade balance (million dollars) ............ -414 -461 -143 -462 -749

Ratio of imports to consumption (percent) ... 21.4 22.8 23.5 33.4 30.6

Ratio of exports to shipments (percent) ..... 15.6 16.1 21.6 28.2 22.9

ET009 Motor vehicles:

Number of establishments ............... 1,280 1,280 1,284 1,288 1,290

Employees (thousands) ................. 300 295 297 300 300

Capacity utilization (percent) ............. 85 85 87 87 90

U.S. shipments (million dollars) ........... 231,140 228,444 233,106 240,099 261,708

U.S. exports (million dollars) ............. 21,337 22,681 24,372 22,522 22,049

U.S. imports (million dollars) ............. 84,215 87,114 92,984 99,826 119,663

Apparent U.S. consumption (million dollars) . . 294,017 292,877 301,718 317,404 359,322

Trade balance (million dollars) ............ -62,877 -64,433 -68,612 -77,305 -97,614

Ratio of imports to consumption (percent) ... 28.6 29.7 30.8 31.5 33.3

Ratio of exports to shipments (percent) ..... 9.2 9.9 10.5 9.4 8.4

ET010 Certain motor-vehicle parts:

Number of establishments ............... 2,500 2,500 3,300 3,300 3,300

Employees (thousands) ................. 375 375 505 505 505

Capacity utilization (percent) ............. 81 78 78 80 83

U.S. shipments (million dollars) ........... 85,000 92,400 106,000 116,000 128,000

U.S. exports (million dollars) ............. 22,265 22,793 26,324 25,988 27,281

U.S. imports (million dollars) ............. 16,298 16,867 17,804 18,767 22,725

Apparent U.S. consumption (million dollars) . . 79,033 86,473 97,480 108,779 123,443

Trade balance (million dollars) ............ 5,967 5,927 8,520 7,221 4,557

Ratio of imports to consumption (percent) ... 20.6 19.5 18.3 17.3 18.4

Ratio of exports to shipments (percent) ..... 26.2 24.7 24.8 22.4 21.3
Table B-8

Transportation equipment sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-

99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Table B-8--Continued

Transportation equipment sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-

99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-48

ET011 Motorcycles, mopeds, and parts:

Number of establishments ............... 45 45 48 48 50

Employees (thousands) ................. 8 8 8 8 9

Capacity utilization (percent) ............. 88 89 86 90 88

U.S. shipments (million dollars) ........... 1,560 1,700 1,850 2,000 2,200

U.S. exports (million dollars) ............. 593 638 666 626 468

U.S. imports (million dollars) ............. 1,162 1,137 1,104 1,293 1,755

Apparent U.S. consumption (million dollars) . . 2,128 2,199 2,288 2,667 3,487

Trade balance (million dollars) ............ -568 -499 -438 -667 -1,287

Ratio of imports to consumption (percent) ... 54.6 51.7 48.3 48.5 50.3

Ratio of exports to shipments (percent) ..... 38.0 37.6 36.0 31.3 21.3

ET012 Miscellaneous vehicles and transportation-related

 equipment:

Number of establishments ............... 1,200 1,200 1,200 1,202 1,203

Employees (thousands) ................. 36 36 35 36 36

Capacity utilization (percent) ............. 62 64 63 63 65

U.S. shipments (million dollars) ........... 5,900 5,900 5,782 5,924 6,100

U.S. exports (million dollars) ............. 3,396 3,980 3,166 2,962 2,762

U.S. imports (million dollars) ............. 1,510 1,418 1,522 1,666 2,060

Apparent U.S. consumption (million dollars) . . 4,013 3,338 4,137 4,628 5,398

Trade balance (million dollars) ............ 1,887 2,562 1,645 1,296 702

Ratio of imports to consumption (percent) ... 37.6 42.5 36.8 36.0 38.2

Ratio of exports to shipments (percent) ..... 57.6 67.5 54.8 50.0 45.3

ET013 Aircraft, spacecraft, and related equipment:

Number of establishments ............... 275 280 260 250 230

Employees (thousands) ................. 386 473 498 464 433

Capacity utilization (percent) ............. 80 85 90 95 95

U.S. shipments (million dollars) ........... 48,716 53,555 65,962 79,265 79,126

U.S. exports (million dollars) ............. 23,839 30,754 38,698 50,248 47,762

U.S. imports (million dollars) ............. 6,135 7,353 9,459 12,748 14,592

Apparent U.S. consumption (million dollars) . . 31,012 30,154 36,723 41,765 45,955

Trade balance (million dollars) ............ 17,704 23,401 29,239 37,500 33,171

Ratio of imports to consumption (percent) ... 19.8 24.4 25.8 30.5 31.8

Ratio of exports to shipments (percent) ..... 48.9 57.4 58.7 63.4 60.4

ET014 Ships, tugs, pleasure boats, and similar vessels:

Number of establishments ............... 2,200 2,100 2,100 2,100 2,000

Employees (thousands) ................. 145 140 138 135 133

Capacity utilization (percent) ............. 75 70 70 70 72

U.S. shipments (million dollars) ........... 14,992 14,800 14,600 14,500 15,200

U.S. exports (million dollars) ............. 1,220 1,058 1,408 1,765 1,682

U.S. imports (million dollars) ............. 919 1,130 924 1,090 1,246

Apparent U.S. consumption (million dollars) . . 14,691 14,872 14,115 13,825 14,763

Trade balance (million dollars) ............ 301 -72 485 675 437

Ratio of imports to consumption (percent) ... 6.3 7.6 6.5 7.9 8.4

Ratio of exports to shipments (percent) ..... 8.1 7.1 9.6 12.2 11.1

ET015 Motors and engines, except internal combustion,

 aircraft, or electric:

Number of establishments ............... 325 325 350 350 350

Employees (thousands) ................. 31 31 30 30 30

Capacity utilization (percent) ............. 86 85 85 85 85

U.S. shipments (million dollars) ........... 4,200 4,250 4,400 4,500 4,500

U.S. exports (million dollars) ............. 315 335 402 397 394

U.S. imports (million dollars) ............. 474 511 567 621 658

Apparent U.S. consumption (million dollars) . . 4,359 4,426 4,566 4,723 4,764

Trade balance (million dollars) ............ -159 -176 -166 -223 -264

Ratio of imports to consumption (percent) ... 10.9 11.5 12.4 13.1 13.8

Ratio of exports to shipments (percent) ..... 7.5 7.9 9.1 8.8 8.8

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Note.--Calculations based on unrounded table.
Table B-9

Electronic products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-49

ET016 Office machines:

Number of establishments ............... 157 157 137 137 137

Employees (thousands) ................. 29 30 10 11 10

Capacity utilization (percent) ............. 79 76 65 56 56

U.S. shipments (million dollars) ........... 3,803 3,842 2,668 2,675 2,530

U.S. exports (million dollars) ............. 837 990 1,102 1,098 1,037

U.S. imports (million dollars) ............. 1,820 1,769 1,898 1,856 1,784

Apparent U.S. consumption (million dollars) . . 4,787 4,621 3,465 3,433 3,277

Trade balance (million dollars) ............ -984 -779 -797 -758 -747

Ratio of imports to consumption (percent) ... 38.0 38.3 54.8 54.1 54.4

Ratio of exports to shipments (percent) ..... 22.0 25.8 41.3 41.0 41.0

ET017 Telephone and telegraph apparatus:

Number of establishments ............... 944 972 1,000 1,028 1,056

Employees (thousands) ................. 235 239 246 241 241

Capacity utilization (percent) ............. 72 70 70 70 71

U.S. shipments (million dollars) ........... 47,885 56,805 63,740 67,409 75,131

U.S. exports (million dollars) ............. 14,193 14,477 17,441 17,167 17,717

U.S. imports (million dollars) ............. 10,023 10,706 12,465 14,385 20,147

Apparent U.S. consumption (million dollars) . . 43,715 53,034 58,765 64,627 77,561

Trade balance (million dollars) ............ 4,170 3,771 4,975 2,782 -2,430

Ratio of imports to consumption (percent) ... 22.9 20.2 21.2 22.3 26.0

Ratio of exports to shipments (percent) ..... 29.6 25.5 27.4 25.5 23.6

ET018 Consumer electronics (except televisions):

Number of establishments ............... 170 170 180 200 210

Employees (thousands) ................. 17 19 22 30 30

Capacity utilization (percent) ............. 69 69 65 67 68

U.S. shipments (million dollars) ........... 3,025 3,335 3,810 5,420 5,700

U.S. exports (million dollars) ............. 2,451 2,710 3,011 2,579 2,678

U.S. imports (million dollars) ............. 16,396 14,613 15,160 16,444 18,282

Apparent U.S. consumption (million dollars) . . 16,971 15,238 15,959 19,285 21,304

Trade balance (million dollars) ............ -13,946 -11,903 -12,149 -13,865 -15,604

Ratio of imports to consumption (percent) ... 96.6 95.9 95.0 85.3 85.8

Ratio of exports to shipments (percent) ..... 81.0 81.3 79.0 47.6 47.0

ET019 Blank media:

Number of establishments ............... 176 213 258 312 377

Employees (thousands) ................. 18 19 21 24 26

Capacity utilization (percent) ............. 87 87 79 78 78

U.S. shipments (million dollars) ........... 5,017 5,366 5,739 4,868 4,552

U.S. exports (million dollars) ............. 2,030 2,670 2,603 2,042 1,692

U.S. imports (million dollars) ............. 1,936 2,072 2,090 2,103 2,225

Apparent U.S. consumption (million dollars) . . 4,923 4,767 5,226 4,930 5,085

Trade balance (million dollars) ............ 94 599 513 -62 -533

Ratio of imports to consumption (percent) ... 39.3 43.5 40.0 42.7 43.8

Ratio of exports to shipments (percent) ..... 40.5 49.8 45.4 41.9 37.2

ET020 Prerecorded media:

Number of establishments ............... 12,522 12,773 13,028 13,289 13,555

Employees (thousands) ................. 243 265 291 322 368

Capacity utilization (percent) ............. 84 79 79 83 87

U.S. shipments (million dollars) ........... 30,800 55,000 58,000 64,000 73,000

U.S. exports (million dollars) ............. 3,814 3,453 3,785 3,619 3,707

U.S. imports (million dollars) ............. 916 994 981 1,135 1,252

Apparent U.S. consumption (million dollars) . . 27,902 52,541 55,196 61,515 70,545

Trade balance (million dollars) ............ 2,898 2,459 2,804 2,485 2,455

Ratio of imports to consumption (percent) ... 3.3 1.9 1.8 1.8 1.8

Ratio of exports to shipments (percent) ..... 12.4 6.3 6.5 5.7 5.1
Table B-9--Continued

Electronic products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-50

ET021 Navigational instruments and remote control

 apparatus:

Number of establishments ............... 105 105 105 105 210

Employees (thousands) ................. 115 115 115 115 230

Capacity utilization (percent) ............. 75 75 75 75 (

1

)

U.S. production (million dollars) ........... 14,000 14,050 15,000 15,100 31,000

U.S. exports (million dollars) ............. 1,958 2,025 2,493 2,585 2,530

U.S. imports (million dollars) ............. 878 946 1,169 1,230 1,361

Apparent U.S. consumption (million dollars) . . 12,920 12,971 13,676 13,746 29,831

Trade balance (million dollars) ............ 1,080 1,079 1,324 1,354 1,169

Ratio of imports to consumption (percent) ... 6.8 7.3 8.5 9.0 4.6

Ratio of exports to production (percent) ..... 14.0 14.4 16.6 17.1 8.2

ET022 Television receivers and video monitors:

Number of establishments ............... 13 13 14 12 11

Employees (thousands) ................. 10 9 8 7 6

Capacity utilization (percent) ............. 69 69 65 67 68

U.S. shipments (million dollars) ........... 5,145 4,650 4,365 3,765 3,000

U.S. exports (million dollars) ............. 1,217 1,190 1,398 2,142 1,104

U.S. imports (million dollars) ............. 4,932 4,916 4,895 5,878 6,652

Apparent U.S. consumption (million dollars) . . 8,859 8,376 7,862 7,501 8,548

Trade balance (million dollars) ............ -3,714 -3,726 -3,497 -3,736 -5,548

Ratio of imports to consumption (percent) ... 55.7 58.7 62.3 78.4 77.8

Ratio of exports to shipments (percent) ..... 23.7 25.6 32.0 56.9 36.8

ET023 Radio and television broadcasting equipment:

Number of establishments ............... 100 105 115 120 125

Employees (thousands) ................. 12 11 14 15 15

Capacity utilization (percent) ............. 71 68 70 63 65

U.S. shipments (million dollars) ........... 2,845 3,000 3,350 3,500 3,650

U.S. exports (million dollars) ............. 710 845 1,697 1,379 2,323

U.S. imports (million dollars) ............. 2,076 2,885 2,594 3,211 4,948

Apparent U.S. consumption (million dollars) . . 4,211 5,040 4,246 5,332 6,274

Trade balance (million dollars) ............ -1,366 -2,040 -896 -1,832 -2,624

Ratio of imports to consumption (percent) ... 49.3 57.2 61.1 60.2 78.9

Ratio of exports to shipments (percent) ..... 24.9 28.2 50.7 39.4 63.7

ET024 Electric sound and visual signaling apparatus:

Number of establishments ............... 517 517 499 499 499

Employees (thousands) ................. 19 21 21 22 23

Capacity utilization (percent) ............. 66 73 69 65 65

U.S. shipments (million dollars) ........... 2,951 3,706 3,553 3,820 4,185

U.S. exports (million dollars) ............. 690 786 730 783 858

U.S. imports (million dollars) ............. 1,726 1,846 1,979 2,064 2,053

Apparent U.S. consumption (million dollars) . . 3,987 4,765 4,802 5,101 5,380

Trade balance (million dollars) ............ -1,036 -1,059 -1,249 -1,281 -1,195

Ratio of imports to consumption (percent) ... 43.3 38.7 41.2 40.5 38.2

Ratio of exports to shipments (percent) ..... 23.4 21.2 20.5 20.5 20.5

ET025 Electrical capacitors and resistors:

Number of establishments ............... 170 170 175 170 170

Employees (thousands) ................. 32 29 30 28 32

Capacity utilization (percent) ............. 80 75 75 65 80

U.S. shipments (million dollars) ........... 2,738 2,565 3,092 2,838 3,100

U.S. exports (million dollars) ............. 1,591 1,840 2,212 2,037 2,393

U.S. imports (million dollars) ............. 1,894 1,729 1,971 2,015 2,435

Apparent U.S. consumption (million dollars) . . 3,041 2,454 2,851 2,816 3,142

Trade balance (million dollars) ............ -303 111 241 22 -42

Ratio of imports to consumption (percent) ... 62.3 70.4 69.1 71.6 77.5

Ratio of exports to shipments (percent) ..... 58.1 71.7 71.5 71.8 77.2
Table B-9--Continued

Electronic products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-51

ET026 Printed circuits:

Number of establishments ............... 586 575 558 600 610

Employees (thousands) ................. 79 80 81 82 84

Capacity utilization (percent) ............. 81 77 76 73 78

U.S. shipments (million dollars) ........... 8,367 8,216 8,702 9,425 10,500

U.S. exports (million dollars) ............. 1,651 1,694 2,007 2,178 2,386

U.S. imports (million dollars) ............. 1,840 1,849 2,071 2,045 2,236

Apparent U.S. consumption (million dollars) . . 8,556 8,371 8,766 9,292 10,350

Trade balance (million dollars) ............ -189 -155 -64 133 150

Ratio of imports to consumption (percent) ... 21.5 22.1 23.6 22.0 21.6

Ratio of exports to shipments (percent) ..... 19.7 20.6 23.1 23.1 22.7

ET027 Circuit apparatus exceeding 1000V:

Number of establishments ............... 200 200 200 200 200

Employees (thousands) ................. 15 15 15 15 15

Capacity utilization (percent) ............. 76 78 78 75 75

U.S. shipments (million dollars) ........... 3,500 4,000 4,300 4,700 5,000

U.S. exports (million dollars) ............. 598 601 602 584 590

U.S. imports (million dollars) ............. 222 192 223 244 287

Apparent U.S. consumption (million dollars) . . 3,124 3,591 3,921 4,360 4,698

Trade balance (million dollars) ............ 376 409 379 340 302

Ratio of imports to consumption (percent) ... 7.1 5.3 5.7 5.6 6.1

Ratio of exports to shipments (percent) ..... 17.1 15.0 14.0 12.4 11.8

ET028 Circuit apparatus not exceeding 1000V:

Number of establishments ............... 600 600 600 600 600

Employees (thousands) ................. 50 50 50 50 50

Capacity utilization (percent) ............. 76 78 78 75 75

U.S. shipments (million dollars) ........... 11,500 12,000 13,000 14,000 15,000

U.S. exports (million dollars) ............. 3,496 3,813 4,119 4,258 4,991

U.S. imports (million dollars) ............. 4,554 4,636 5,135 5,103 5,606

Apparent U.S. consumption (million dollars) . . 12,558 12,823 14,016 14,845 15,615

Trade balance (million dollars) ............ -1,058 -823 -1,016 -845 -615

Ratio of imports to consumption (percent) ... 36.3 36.2 36.6 34.4 35.9

Ratio of exports to shipments (percent) ..... 30.4 31.8 31.7 30.4 33.3

ET029 Circuit apparatus assemblies:

Number of establishments ............... 200 200 200 200 200

Employees (thousands) ................. 15 15 15 15 15

Capacity utilization (percent) ............. 76 78 78 75 75

U.S. shipments (million dollars) ........... 3,500 4,000 4,300 4,700 5,000

U.S. exports (million dollars) ............. 708 802 928 919 1,078

U.S. imports (million dollars) ............. 1,050 1,317 1,644 1,852 2,141

Apparent U.S. consumption (million dollars) . . 3,842 4,515 5,017 5,632 6,063

Trade balance (million dollars) ............ -342 -515 -717 -932 -1,063

Ratio of imports to consumption (percent) ... 27.3 29.2 32.8 32.9 35.3

Ratio of exports to shipments (percent) ..... 20.2 20.0 21.6 19.6 21.6

ET030 Parts of circuit apparatus:

Number of establishments ............... 200 200 200 200 200

Employees (thousands) ................. 15 15 15 15 15

Capacity utilization (percent) ............. 76 78 78 75 75

U.S. shipments (million dollars) ........... 3,500 4,000 4,300 4,700 5,000

U.S. exports (million dollars) ............. 1,050 1,291 1,613 1,589 1,809

U.S. imports (million dollars) ............. 862 835 891 876 999

Apparent U.S. consumption (million dollars) . . 3,312 3,544 3,578 3,987 4,191

Trade balance (million dollars) ............ 188 456 722 713 809

Ratio of imports to consumption (percent) ... 26.0 23.6 24.9 22.0 23.8

Ratio of exports to shipments (percent) ..... 30.0 32.3 37.5 33.8 36.2
Table B-9--Continued

Electronic products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-52

ET031 Cathode-ray tubes:

Number of establishments ............... 19 18 18 18 18

Employees (thousands) ................. 16 15 15 14 14

Capacity utilization (percent) ............. 85 85 85 85 88

U.S. shipments (million dollars) ........... 2,910 3,270 3,435 3,370 3,300

U.S. exports (million dollars) ............. 1,364 1,549 2,058 2,288 2,174

U.S. imports (million dollars) ............. 1,099 970 856 774 732

Apparent U.S. consumption (million dollars) . . 2,645 2,691 2,233 1,856 1,858

Trade balance (million dollars) ............ 265 579 1,202 1,514 1,442

Ratio of imports to consumption (percent) ... 41.6 36.0 38.3 41.7 39.4

Ratio of exports to shipments (percent) ..... 46.9 47.4 59.9 67.9 65.9

ET032 Electron tubes other than CRTs:

Number of establishments ............... 38 38 38 43 43

Employees (thousands) ................. 5 5 5 4 4

Capacity utilization (percent) ............. 84 86 79 72 70

U.S. shipments (million dollars) ........... 855 611 655 625 600

U.S. exports (million dollars) ............. 177 171 200 183 215

U.S. imports (million dollars) ............. 291 269 267 225 190

Apparent U.S. consumption (million dollars) . . 969 710 722 667 575

Trade balance (million dollars) ............ -114 -99 -67 -42 25

Ratio of imports to consumption (percent) ... 30.0 38.0 37.0 33.7 33.1

Ratio of exports to shipments (percent) ..... 20.7 27.9 30.6 29.3 35.9

ET033 Semiconductors and integrated circuits:

Number of establishments ............... 500 500 500 500 500

Employees (thousands) ................. 235 260 278 287 295

Capacity utilization (percent) ............. 88 86 88 84 90

U.S. shipments (million dollars) ........... 63,086 65,423 68,725 70,400 80,000

U.S. exports (million dollars) ............. 23,189 24,001 28,861 29,055 36,615

U.S. imports (million dollars) ............. 38,618 36,256 36,266 33,157 37,158

Apparent U.S. consumption (million dollars) . . 78,515 77,678 76,130 74,502 80,542

Trade balance (million dollars) ............ -15,429 -12,255 -7,405 -4,102 -542

Ratio of imports to consumption (percent) ... 49.2 46.7 47.6 44.5 46.1

Ratio of exports to shipments (percent) ..... 36.8 36.7 42.0 41.3 45.8

ET034 Miscellaneous electrical equipment:

Number of establishments ............... 640 650 650 650 1,300

Employees (thousands) ................. 23 24 24 24 48

Capacity utilization (percent) ............. 70 71 68 61 (

1

)

U.S. production (million dollars) ........... 3,800 4,000 4,200 4,400 9,600

U.S. exports (million dollars) ............. 2,656 1,662 1,882 1,561 1,590

U.S. imports (million dollars) ............. 1,955 1,782 2,001 2,161 2,358

Apparent U.S. consumption (million dollars) . . 3,099 4,120 4,320 5,000 10,369

Trade balance (million dollars) ............ 701 -120 -120 -600 -769

Ratio of imports to consumption (percent) ... 63.1 43.3 46.3 43.2 22.7

Ratio of exports to production (percent) ..... 69.9 41.6 44.8 35.5 16.6

ET035 Computers, peripherals, and parts:

Number of establishments ............... 785 795 795 760 750

Employees (thousands) ................. 210 221 230 245 230

Capacity utilization (percent) ............. 90 88 85 84 84

U.S. shipments (million dollars) ........... 73,150 82,733 92,661 106,453 115,000

U.S. exports (million dollars) ............. 34,622 38,137 42,071 38,962 39,230

U.S. imports (million dollars) ............. 56,688 61,884 70,365 72,635 81,662

Apparent U.S. consumption (million dollars) . . 95,215 106,480 120,955 140,126 157,432

Trade balance (million dollars) ............ -22,065 -23,747 -28,294 -33,673 -42,432

Ratio of imports to consumption (percent) ... 59.5 58.1 58.2 51.8 51.9

Ratio of exports to shipments (percent) ..... 47.3 46.1 45.4 36.6 34.1
Table B-9--Continued

Electronic products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnote(s) at end of table.

B-53

ET036 Photographic film and paper:

Number of establishments ............... 540 540 310 310 310

Employees (thousands) ................. 37 36 39 43 44

Capacity utilization (percent) ............. 83 82 82 83 83

U.S. shipments (million dollars) ........... 12,993 13,378 12,829 14,053 14,360

U.S. exports (million dollars) ............. 1,877 2,249 2,401 2,108 2,154

U.S. imports (million dollars) ............. 1,878 1,852 1,914 1,861 2,009

Apparent U.S. consumption (million dollars) . . 12,994 12,981 12,341 13,806 14,214

Trade balance (million dollars) ............ -1 397 488 247 146

Ratio of imports to consumption (percent) ... 14.5 14.3 15.5 13.5 14.1

Ratio of exports to shipments (percent) ..... 14.4 16.8 18.7 15.0 15.0

ET037 Optical fibers, optical fiber bundles and cables:

Number of establishments ............... 60 62 63 64 65

Employees (thousands) ................. 9 10 11 12 13

Capacity utilization (percent) ............. 90 92 93 95 95

U.S. shipments (million dollars) ........... 2,750 2,807 3,228 3,712 4,000

U.S. exports (million dollars) ............. 475 646 806 807 1,081

U.S. imports (million dollars) ............. 154 216 272 398 729

Apparent U.S. consumption (million dollars) . . 2,429 2,377 2,694 3,303 3,648

Trade balance (million dollars) ............ 321 430 534 409 352

Ratio of imports to consumption (percent) ... 6.3 9.1 10.1 12.1 20.0

Ratio of exports to shipments (percent) ..... 17.3 23.0 25.0 21.7 27.0

ET038 Optical goods, including ophthalmic goods:

Number of establishments ............... 900 905 904 905 905

Employees (thousands) ................. 58 60 60 60 61

Capacity utilization (percent) ............. 78 82 83 85 87

U.S. shipments (million dollars) ........... 4,900 5,400 5,700 5,900 6,100

U.S. exports (million dollars) ............. 1,527 1,941 2,380 2,438 2,682

U.S. imports (million dollars) ............. 2,820 3,114 3,397 3,683 4,225

Apparent U.S. consumption (million dollars) . . 6,193 6,573 6,717 7,144 7,643

Trade balance (million dollars) ............ -1,293 -1,173 -1,017 -1,244 -1,543

Ratio of imports to consumption (percent) ... 45.5 47.4 50.6 51.5 55.3

Ratio of exports to shipments (percent) ..... 31.2 35.9 41.8 41.3 44.0

ET039 Photographic cameras and equipment:

Number of establishments ............... 360 360 428 428 428

Employees (thousands) ................. 24 24 25 26 23

Capacity utilization (percent) ............. 83 82 83 79 79

U.S. shipments (million dollars) ........... 8,662 8,919 8,410 8,826 7,935

U.S. exports (million dollars) ............. 1,795 1,992 1,936 2,030 1,825

U.S. imports (million dollars) ............. 6,235 6,319 6,732 6,447 5,843

Apparent U.S. consumption (million dollars) . . 13,101 13,247 13,206 13,243 11,953

Trade balance (million dollars) ............ -4,439 -4,328 -4,796 -4,417 -4,018

Ratio of imports to consumption (percent) ... 47.6 47.7 51.0 48.7 48.9

Ratio of exports to shipments (percent) ..... 20.7 22.3 23.0 23.0 23.0

ET040 Medical goods:

Number of establishments ............... 2,325 2,338 2,340 2,338 2,340

Employees (thousands) ................. 180 181 182 182 183

Capacity utilization (percent) ............. 88 90 90 89 91

U.S. shipments (million dollars) ........... 27,000 28,900 30,200 30,800 31,500

U.S. exports (million dollars) ............. 8,966 10,217 11,226 11,582 12,455

U.S. imports (million dollars) ............. 4,951 5,368 5,895 6,934 7,932

Apparent U.S. consumption (million dollars) . . 22,985 24,050 24,869 26,152 26,978

Trade balance (million dollars) ............ 4,015 4,850 5,331 4,648 4,522

Ratio of imports to consumption (percent) ... 21.5 22.3 23.7 26.5 29.4

Ratio of exports to shipments (percent) ..... 33.2 35.4 37.2 37.6 39.5
Table B-9--Continued

Electronic products sector: Profile of U.S. industry and market, by industry/commodity groups, 1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-54

ET041 Watches and clocks:

Number of establishments ............... 180 180 145 145 145

Employees (thousands) ................. 7 6 6 6 7

Capacity utilization (percent) ............. 65 67 70 52 52

U.S. shipments (million dollars) ........... 786 785 921 927 999

U.S. exports (million dollars) ............. 247 277 309 311 335

U.S. imports (million dollars) ............. 2,673 2,715 2,758 3,100 3,136

Apparent U.S. consumption (million dollars) . . 3,212 3,223 3,370 3,716 3,800

Trade balance (million dollars) ............ -2,426 -2,438 -2,449 -2,789 -2,801

Ratio of imports to consumption (percent) ... 83.2 84.2 81.8 83.4 82.5

Ratio of exports to shipments (percent) ..... 31.4 35.3 33.6 33.6 33.5

ET042 Drawing, drafting, and calculating instruments:

Number of establishments ............... 175 175 175 175 175

Employees (thousands) ................. 6 6 7 8 10

Capacity utilization (percent) ............. 64 65 70 75 75

U.S. shipments (million dollars) ........... 545 550 578 595 605

U.S. exports (million dollars) ............. 172 275 400 425 415

U.S. imports (million dollars) ............. 401 385 428 427 431

Apparent U.S. consumption (million dollars) . . 774 660 606 597 620

Trade balance (million dollars) ............ -229 -110 -28 -2 -15

Ratio of imports to consumption (percent) ... 51.8 58.3 70.7 71.5 69.4

Ratio of exports to shipments (percent) ..... 31.5 50.0 69.2 71.4 68.7

ET043 Measuring, testing, and controlling instruments:

Number of establishments ............... 3,235 3,235 3,235 3,235 3,235

Employees (thousands) ................. 240 240 245 245 245

Capacity utilization (percent) ............. 75 75 75 75 75

U.S. shipments (million dollars) ........... 28,100 33,400 36,100 38,400 39,200

U.S. exports (million dollars) ............. 11,722 12,515 14,344 13,825 14,575

U.S. imports (million dollars) ............. 6,675 7,073 8,039 8,681 9,656

Apparent U.S. consumption (million dollars) . . 23,053 27,958 29,795 33,257 34,281

Trade balance (million dollars) ............ 5,047 5,442 6,305 5,143 4,919

Ratio of imports to consumption (percent) ... 29.0 25.3 27.0 26.1 28.2

Ratio of exports to shipments (percent) ..... 41.7 37.5 39.7 36.0 37.2

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

1 Capacity utilization could not be meaningfully calculated for this industry.

Note.--Calculations based on unrounded data.
Table B-10

Miscellaneous manufactures sector: Profile of U.S. industry and market, by industry/commodity groups,

1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-55

MM046 Luggage, handbags, and flat goods:

Number of establishments ............... 590 580 593 530 470

Employees (thousands) ................. 19 19 18 17 15

Capacity utilization (percent) ............. 67 73 66 67 65

U.S. shipments (million dollars) ........... 1,531 1,515 1,865 1,675 1,495

U.S. exports (million dollars) ............. 253 306 331 304 329

U.S. imports (million dollars) ............. 3,333 3,512 3,779 3,912 4,073

Apparent U.S. consumption (million dollars) . . 4,610 4,721 5,313 5,283 5,239

Trade balance (million dollars) ............ -3,079 -3,206 -3,448 -3,608 -3,744

Ratio of imports to consumption (percent) ... 72.3 74.4 71.1 74.0 77.7

Ratio of exports to shipments (percent) ..... 16.5 20.2 17.7 18.1 22.0

MM047 Certain other leather goods:

Number of establishments ............... 445 445 434 450 450

Employees (thousands) ................. 7 7 9 9 9

Capacity utilization (percent) ............. 76 75 67 56 60

U.S. shipments (million dollars) ........... 512 521 655 690 730

U.S. exports (million dollars) ............. 93 80 103 106 123

U.S. imports (million dollars) ............. 229 239 198 195 209

Apparent U.S. consumption (million dollars) . . 648 681 750 779 816

Trade balance (million dollars) ............ -136 -160 -95 -89 -86

Ratio of imports to consumption (percent) ... 35.4 35.2 26.4 25.1 25.6

Ratio of exports to shipments (percent) ..... 18.2 15.3 15.7 15.4 16.8

MM048 Musical instruments and accessories:

Number of establishments ............... 530 540 571 580 600

Employees (thousands) ................. 13 13 13 13 13

Capacity utilization (percent) ............. 80 79 73 75 75

U.S. shipments (million dollars) ........... 1,167 1,182 1,229 1,282 1,330

U.S. exports (million dollars) ............. 418 432 425 392 360

U.S. imports (million dollars) ............. 1,015 995 1,063 1,188 1,256

Apparent U.S. consumption (million dollars) . . 1,765 1,745 1,867 2,078 2,226

Trade balance (million dollars) ............ -598 -563 -638 -796 -896

Ratio of imports to consumption (percent) ... 57.5 57.0 57.0 57.2 56.4

Ratio of exports to shipments (percent) ..... 35.8 36.5 34.6 30.6 27.0

MM049 Umbrellas, whips, riding crops, and canes:

Number of establishments ............... 17 17 17 16 16

Employees (thousands) ................. 485 490 490 495 495

Capacity utilization (percent) ............. 76 74 73 73 73

U.S. shipments (million dollars) ........... 67 69 70 72 74

U.S. exports (million dollars) ............. 10 9 11 11 11

U.S. imports (million dollars) ............. 198 196 233 250 248

Apparent U.S. consumption (million dollars) . . 255 256 291 312 311

Trade balance (million dollars) ............ -188 -187 -221 -240 -237

Ratio of imports to consumption (percent) ... 77.8 76.4 79.9 80.3 79.8

Ratio of exports to shipments (percent) ..... 15.4 12.5 16.2 14.9 15.0

MM050 Silverware and related articles of precious metal:

Number of establishments ............... 44 42 42 41 41

Employees (thousands) ................. 3 3 3 3 3

Capacity utilization (percent) ............. 80 80 85 88 90

U.S. shipments (million dollars) ........... 185 205 215 220 235

U.S. exports (million dollars) ............. 74 103 109 114 123

U.S. imports (million dollars) ............. 139 83 78 158 57

Apparent U.S. consumption (million dollars) . . 250 186 184 264 169

Trade balance (million dollars) ............ -65 19 31 -44 66

Ratio of imports to consumption (percent) ... 55.4 44.9 42.3 59.9 33.7

Ratio of exports to shipments (percent) ..... 39.8 50.1 50.5 51.8 52.2
Table B-10--Continued

Miscellaneous manufactures sector: Profile of U.S. industry and market, by industry/commodity groups,

1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-56

MM051 Precious jewelry and related articles:

Number of establishments ............... 2,220 2,214 2,290 2,290 2,290

Employees (thousands) ................. 30 29 35 35 35

Capacity utilization (percent) ............. 80 82 78 75 74

U.S. shipments (million dollars) ........... 4,035 4,015 4,720 4,735 4,760

U.S. exports (million dollars) ............. 386 402 486 518 822

U.S. imports (million dollars) ............. 3,642 3,790 4,021 4,592 5,063

Apparent U.S. consumption (million dollars) . . 7,291 7,403 8,256 8,808 9,001

Trade balance (million dollars) ............ -3,256 -3,388 -3,536 -4,073 -4,241

Ratio of imports to consumption (percent) ... 50.0 51.2 48.7 52.1 56.2

Ratio of exports to shipments (percent) ..... 9.6 10.0 10.3 10.9 17.3

MM052 Costume jewelry and related articles:

Number of establishments ............... 900 875 840 810 780

Employees (thousands) ................. 16 15 13 12 12

Capacity utilization (percent) ............. 75 71 72 64 64

U.S. shipments (million dollars) ........... 1,770 1,665 1,230 1,200 1,180

U.S. exports (million dollars) ............. 124 113 136 128 133

U.S. imports (million dollars) ............. 493 462 464 493 546

Apparent U.S. consumption (million dollars) . . 2,139 2,013 1,558 1,564 1,593

Trade balance (million dollars) ............ -369 -348 -328 -364 -413

Ratio of imports to consumption (percent) ... 23.1 22.9 29.8 31.5 34.3

Ratio of exports to shipments (percent) ..... 7.0 6.8 11.1 10.7 11.3

MM053 Bicycles and certain parts:

Number of establishments ............... 190 205 225 200 160

Employees (thousands) ................. 7 7 8 6 5

Capacity utilization (percent) ............. 67 70 70 65 60

U.S. shipments (million dollars) ........... 1,140 1,095 1,280 1,130 920

U.S. exports (million dollars) ............. 257 268 310 292 271

U.S. imports (million dollars) ............. 968 878 979 1,115 1,199

Apparent U.S. consumption (million dollars) . . 1,852 1,705 1,949 1,953 1,848

Trade balance (million dollars) ............ -712 -610 -669 -823 -928

Ratio of imports to consumption (percent) ... 52.3 51.5 50.2 57.1 64.9

Ratio of exports to shipments (percent) ..... 22.5 24.4 24.2 25.9 29.4

MM054 Furniture:

Number of establishments ............... 18,600 18,600 18,700 18,800 18,800

Employees (thousands) ................. 470 485 500 530 535

Capacity utilization (percent) ............. 74 75 77 74 75

U.S. shipments (million dollars) ........... 51,000 53,000 56,690 61,800 66,500

U.S. exports (million dollars) ............. 2,074 2,164 2,513 2,632 2,597

U.S. imports (million dollars) ............. 6,413 7,254 8,666 10,417 12,775

Apparent U.S. consumption (million dollars) . . 55,339 58,090 62,843 69,585 76,678

Trade balance (million dollars) ............ -4,339 -5,090 -6,153 -7,785 -10,178

Ratio of imports to consumption (percent) ... 11.6 12.5 13.8 15.0 16.7

Ratio of exports to shipments (percent) ..... 4.1 4.1 4.4 4.3 3.9

MM055 Writing instruments and related articles:

Number of establishments ............... 200 200 190 190 190

Employees (thousands) ................. 12 12 12 12 12

Capacity utilization (percent) ............. 81 79 74 69 70

U.S. shipments (million dollars) ........... 1,690 1,850 2,100 2,250 2,400

U.S. exports (million dollars) ............. 264 304 400 373 333

U.S. imports (million dollars) ............. 668 719 800 842 965

Apparent U.S. consumption (million dollars) . . 2,094 2,265 2,500 2,718 3,032

Trade balance (million dollars) ............ -404 -415 -400 -468 -632

Ratio of imports to consumption (percent) ... 31.9 31.7 32.0 31.0 31.8

Ratio of exports to shipments (percent) ..... 15.6 16.4 19.1 16.6 13.9
Table B-10--Continued

Miscellaneous manufactures sector: Profile of U.S. industry and market, by industry/commodity groups,

1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-57

MM056 Lamps and lighting fittings:

Number of establishments ............... 1,560 1,550 1,550 1,550 1,550

Employees (thousands) ................. 62 60 62 62 62

Capacity utilization (percent) ............. 80 80 85 88 87

U.S. shipments (million dollars) ........... 8,400 8,650 9,515 9,990 10,090

U.S. exports (million dollars) ............. 543 529 655 619 585

U.S. imports (million dollars) ............. 2,198 2,422 2,729 3,167 3,858

Apparent U.S. consumption (million dollars) . . 10,055 10,543 11,589 12,538 13,362

Trade balance (million dollars) ............ -1,655 -1,893 -2,074 -2,548 -3,272

Ratio of imports to consumption (percent) ... 21.9 23.0 23.6 25.3 28.9

Ratio of exports to shipments (percent) ..... 6.5 6.1 6.9 6.2 5.8

MM057 Prefabricated buildings:

Number of establishments ............... 1,400 1,500 1,631 1,700 1,700

Employees (thousands) ................. 86 91 92 104 111

Capacity utilization (percent) ............. 79 75 77 73 73

U.S. shipments (million dollars) ........... 15,210 16,401 16,904 19,800 21,700

U.S. exports (million dollars) ............. 409 465 463 385 327

U.S. imports (million dollars) ............. 67 92 129 160 221

Apparent U.S. consumption (million dollars) . . 14,868 16,028 16,570 19,576 21,593

Trade balance (million dollars) ............ 342 373 334 224 107

Ratio of imports to consumption (percent) ... 0.5 0.6 0.8 0.8 1.0

Ratio of exports to shipments (percent) ..... 2.7 2.8 2.7 1.9 1.5

MM058 Dolls:

Number of establishments ............... 160 158 158 150 150

Employees (thousands) ................. 3 3 3 2 2

Capacity utilization (percent) ............. 69 63 58 47 47

U.S. shipments (million dollars) ........... 100 110 140 110 100

U.S. exports (million dollars) ............. 28 26 30 28 25

U.S. imports (million dollars) ............. 1,167 1,356 1,516 1,484 1,374

Apparent U.S. consumption (million dollars) . . 1,238 1,440 1,626 1,565 1,449

Trade balance (million dollars) ............ -1,138 -1,330 -1,486 -1,455 -1,349

Ratio of imports to consumption (percent) ... 94.2 94.2 93.2 94.8 94.8

Ratio of exports to shipments (percent) ..... 28.4 23.8 21.6 25.8 24.7

MM059 Toys:

Number of establishments ............... 342 339 333 333 330

Employees (thousands) ................. 14 13 13 12 12

Capacity utilization (percent) ............. 70 66 71 62 62

U.S. shipments (million dollars) ........... 3,150 2,900 2,980 2,940 2,910

U.S. exports (million dollars) ............. 577 585 617 540 497

U.S. imports (million dollars) ............. 4,589 5,554 6,814 7,588 7,978

Apparent U.S. consumption (million dollars) . . 7,162 7,869 9,178 9,988 10,391

Trade balance (million dollars) ............ -4,012 -4,969 -6,198 -7,048 -7,481

Ratio of imports to consumption (percent) ... 64.1 70.6 74.2 76.0 76.8

Ratio of exports to shipments (percent) ..... 18.3 20.2 20.7 18.4 17.1

MM060 Games:

Number of establishments ............... 315 310 310 300 300

Employees (thousands) ................. 45 45 45 42 42

Capacity utilization (percent) ............. 81 81 82 79 78

U.S. shipments (million dollars) ........... 2,345 2,390 2,415 2,120 2,130

U.S. exports (million dollars) ............. 1,042 1,021 1,057 913 936

U.S. imports (million dollars) ............. 2,432 2,792 3,936 4,182 4,086

Apparent U.S. consumption (million dollars) . . 3,735 4,161 5,293 5,389 5,280

Trade balance (million dollars) ............ -1,390 -1,771 -2,878 -3,269 -3,150

Ratio of imports to consumption (percent) ... 65.1 67.1 74.4 77.6 77.4

Ratio of exports to shipments (percent) ..... 44.4 42.7 43.8 43.1 43.9
Table B-10--Continued

Miscellaneous manufactures sector: Profile of U.S. industry and market, by industry/commodity groups,

1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-58

MM061 Sporting goods:

Number of establishments ............... 2,135 2,138 2,142 2,144 2,140

Employees (thousands) ................. 58 60 62 62 62

Capacity utilization (percent) ............. 73 69 70 70 68

U.S. shipments (million dollars) ........... 8,225 8,698 9,161 9,300 9,260

U.S. exports (million dollars) ............. 1,731 1,900 1,934 1,688 1,621

U.S. imports (million dollars) ............. 2,956 3,068 3,070 3,041 3,027

Apparent U.S. consumption (million dollars) . . 9,450 9,866 10,298 10,653 10,667

Trade balance (million dollars) ............ -1,225 -1,168 -1,137 -1,353 -1,407

Ratio of imports to consumption (percent) ... 31.3 31.1 29.8 28.5 28.4

Ratio of exports to shipments (percent) ..... 21.0 21.8 21.1 18.2 17.5

MM062 Smokers' articles:

Number of establishments ............... 10 10 10 11 11

Employees (thousands) ................. 1 1 1 1 1

Capacity utilization (percent) ............. 70 75 70 75 80

U.S. shipments (million dollars) ........... 170 195 190 200 210

U.S. exports (million dollars) ............. 85 97 88 71 71

U.S. imports (million dollars) ............. 153 149 139 145 134

Apparent U.S. consumption (million dollars) . . 238 247 241 274 273

Trade balance (million dollars) ............ -68 -52 -51 -74 -63

Ratio of imports to consumption (percent) ... 64.1 60.2 57.6 53.0 49.0

Ratio of exports to shipments (percent) ..... 49.7 49.5 46.3 35.6 33.8

MM063 Brooms, brushes, and hair grooming articles:

Number of establishments ............... 280 280 280 275 270

Employees (thousands) ................. 10 10 10 9 9

Capacity utilization (percent) ............. 75 75 75 75 75

U.S. shipments (million dollars) ........... 1,700 1,900 1,995 2,000 2,100

U.S. exports (million dollars) ............. 149 163 176 184 206

U.S. imports (million dollars) ............. 610 625 655 698 955

Apparent U.S. consumption (million dollars) . . 2,161 2,362 2,474 2,514 2,850

Trade balance (million dollars) ............ -461 -462 -479 -514 -750

Ratio of imports to consumption (percent) ... 28.2 26.5 26.5 27.8 33.5

Ratio of exports to shipments (percent) ..... 8.8 8.6 8.8 9.2 9.8

MM064 Works of art and miscellaneous manufactured

 goods:

Number of establishments ............... 2,880 2,900 2,950 2,950 3,000

Employees (thousands) ................. 100 105 110 110 115

Capacity utilization (percent) ............. 72 72 72 73 73

U.S. shipments (million dollars) ........... 33,010 33,990 34,430 35,270 37,000

U.S. exports (million dollars) ............. 1,555 1,369 1,655 1,685 1,731

U.S. imports (million dollars) ............. 5,303 5,366 6,390 7,230 8,463

Apparent U.S. consumption (million dollars) . . 36,758 37,987 39,164 40,815 43,732

Trade balance (million dollars) ............ -3,748 -3,997 -4,734 -5,545 -6,732

Ratio of imports to consumption (percent) ... 14.4 14.1 16.3 17.7 19.4

Ratio of exports to shipments (percent) ..... 4.7 4.0 4.8 4.8 4.7

MM065 Apparel fasteners:

Number of establishments ............... 90 90 90 90 90

Employees (thousands) ................. 5 5 5 5 5

Capacity utilization (percent) ............. 85 90 90 90 90

U.S. shipments (million dollars) ........... 500 515 541 550 570

U.S. exports (million dollars) ............. 84 98 119 136 140

U.S. imports (million dollars) ............. 127 123 126 103 89

Apparent U.S. consumption (million dollars) . . 543 541 548 517 519

Trade balance (million dollars) ............ -43 -26 -7 33 51

Ratio of imports to consumption (percent) ... 23.3 22.8 22.9 19.9 17.1

Ratio of exports to shipments (percent) ..... 16.7 19.0 21.9 24.7 24.5
Table B-10--Continued

Miscellaneous manufactures sector: Profile of U.S. industry and market, by industry/commodity groups,

1995-99

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

USITC

code Industry/commodity group 1995 1996 1997 1998 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

B-59

MM066 Arms and ammunition:

Number of establishments ............... 275 271 311 310 310

Employees (thousands) ................. 19 18 17 17 17

Capacity utilization (percent) ............. 77 69 70 77 75

U.S. shipments (million dollars) ........... 2,159 1,975 2,037 2,100 2,100

U.S. exports (million dollars) ............. 2,662 2,606 2,395 2,348 2,152

U.S. imports (million dollars) ............. 657 598 611 649 711

Apparent U.S. consumption (million dollars) . . 154 -33 253 402 658

Trade balance (million dollars) ............ 2,005 2,008 1,784 1,698 1,442

Ratio of imports to consumption (percent) ... 426.2 -1,792.1 241.7 161.7 108.0

Ratio of exports to shipments (percent) ..... 123.3 132.0 117.6 111.8 102.5

MM067 Seats for motor vehicles and aircraft:

Number of establishments ............... 190 195 195 200 200

Employees (thousands) ................. 17,000 17,500 21,000 23,000 25,000

Capacity utilization (percent) ............. 79 79 77 76 76

U.S. shipments (million dollars) ........... 4,700 4,900 5,862 6,540 7,520

U.S. exports (million dollars) ............. 1,150 1,276 1,551 1,881 1,878

U.S. imports (million dollars) ............. 1,761 1,981 2,264 2,610 3,024

Apparent U.S. consumption (million dollars) . . 5,311 5,604 6,575 7,268 8,666

Trade balance (million dollars) ............ -611 -704 -713 -728 -1,146

Ratio of imports to consumption (percent) ... 33.2 35.3 34.4 35.9 34.9

Ratio of exports to shipments (percent) ..... 24.5 26.0 26.5 28.8 25.0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Note.--Calculations based on unrounded data.

,,,,,,,,,,,,,,,,

APPENDIX C

Industry/Commodity Groups with Most

Significant Shifts, 1998 and 1999

C-3

Table C-1

Domestic export increases: Ranking of top 20 industry/commodity groups, 1998 and 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

U.S. exports Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,

code Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

Rank order based on change in absolute value growth:

ET033 Semiconductors and integrated circuits ......... 29,055 36,615 7,561 26.0

CH025 Medicinal chemicals ....................... 11,956 13,681 1,725 14.4

ET002 Internal combustion piston engines, other than

 for aircraft ............................. 11,015 12,522 1,507 13.7

ET010 Certain motor-vehicle parts .................. 25,988 27,281 1,294 5.0

ET001 Aircraft engines and gas turbines ............. 13,115 14,218 1,103 8.4

MM098 Miscellaneous machinery ................... 5,750 6,843 1,093 19.0

ET023 Radio and television broadcasting equipment .... 1,379 2,323 944 68.4

CH041 Miscellaneous plastic products ............... 10,882 11,816 933 8.6

ET040 Medical goods ........................... 11,582 12,455 873 7.5

ET043 Measuring, testing, and controlling instruments . . 13,825 14,575 750 5.4

ET028 Circuit apparatus not exceeding 1000V ......... 4,258 4,991 734 17.2

ET017 Telephone and telegraph apparatus ........... 17,167 17,717 551 3.2

MM031 Miscellaneous products of base metal ......... 4,892 5,369 477 9.8

AG002 Cattle and beef ........................... 2,382 2,753 371 15.6

CH005 Petroleum products ....................... 6,233 6,599 366 5.9

AG036 Infant formulas, malt extracts, and other edible

 preparations ........................... 2,097 2,458 361 17.2

ET025 Electrical capacitors and resistors ............. 2,037 2,393 356 17.5

AG006 Fresh or frozen fish ........................ 1,289 1,634 346 26.8

CH011 Organic specialty chemicals ................. 6,616 6,940 324 4.9

MM051 Precious jewelry and related articles ........... 518 822 304 58.7

Rank order based on change in percentage growth:

MM008 Precious metal ores and concentrates ......... 11 40 30 278.3

MM019 Natural and synthetic gemstones ............. 217 447 230 106.3

AG048 Wool and other animal hair ................. 13 22 10 77.4

ET023 Radio and television broadcasting equipment .... 1,379 2,323 944 68.4

CH009 Primary aromatics ........................ 56 91 34 60.8

MM051 Precious jewelry and related articles ........... 518 822 304 58.7

MM002 Fluorspar and miscellaneous mineral substances . 53 74 21 39.5

ET037 Optical fibers, optical fiber bundles and cables ... 807 1,081 274 33.9

CH006 Natural gas and components ................ 581 759 178 30.6

AG007 Canned fish ............................. 170 222 52 30.4

MM086 Non-metalworking machine tools ............. 617 792 175 28.4

MM004 Copper ores and concentrates ............... 63 81 18 28.0

AG009 Shellfish ................................ 589 752 163 27.7

AG006 Fresh or frozen fish ........................ 1,289 1,634 346 26.8

ET033 Semiconductors and integrated circuits ......... 29,055 36,615 7,561 26.0

CH043 Gelatin ................................. 51 63 13 25.0

AG055 Wooden containers ....................... 138 172 34 24.5

MM027 Fabricated structurals ...................... 151 186 35 23.4

MM096 Welding and soldering equipment ............. 810 989 180 22.2

AG056 Tools and tool handles of wood .............. 36 44 8 21.1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
C-4

Table C-2

Domestic export declines: Ranking of top 20 industry/commodity groups, 1998 and 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

U.S. exports Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,

code Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

Rank order based on change in absolute value decline:

ET013 Aircraft, spacecraft, and related equipment ...... 50,248 47,762 -2,486 -4.9

ET004 Construction and mining equipment ........... 10,944 8,646 -2,299 -21.0

AG049 Cotton, not carded or combed ............... 2,545 968 -1,577 -62.0

MM078 Farm and garden machinery and equipment ..... 5,581 4,536 -1,045 -18.7

ET022 Television receivers and video monitors ........ 2,142 1,104 -1,038 -48.5

CH003 Coal, coke, and related chemical products ...... 3,635 2,671 -964 -26.5

AG045 Cigarettes ............................... 4,166 3,232 -934 -22.4

AG033 Animal or vegetable fats and oils ............. 2,763 1,947 -816 -29.5

AG013 Animal feeds ............................ 4,307 3,621 -686 -15.9

CH049 Apparel ................................ 8,514 7,964 -549 -6.5

ET009 Motor vehicles ........................... 22,522 22,049 -472 -2.1

AG032 Oilseeds ................................ 5,166 4,776 -390 -7.5

AG005 Poultry ................................. 2,255 1,878 -377 -16.7

MM073 Household appliances, including commercial

 applications ............................ 5,895 5,524 -371 -6.3

ET019 Blank media ............................. 2,042 1,692 -350 -17.1

MM025 Steel mill products ........................ 4,636 4,291 -346 -7.5

MM020 Precious metals and non-numismatic coins ..... 6,853 6,510 -343 -5.0

MM068 Wiring harnesses for motor vehicles ........... 1,315 993 -322 -24.5

CH016 Fertilizers ............................... 3,339 3,032 -307 -9.2

MM091 Electric motors, generators, and related

 equipment ............................. 3,955 3,728 -227 -5.7

Rank order based on change in percentage decline:

AG049 Cotton, not carded or combed ............... 2,545 968 -1,577 -62.0

ET022 Television receivers and video monitors ........ 2,142 1,104 -1,038 -48.5

MM083 Metal rolling mills ......................... 252 153 -98 -39.1

MM005 Lead ores, concentrates, and residues ......... 65 43 -22 -33.7

MM007 Certain ores, concentrates, ash, and residues .... 350 237 -114 -32.4

AG033 Animal or vegetable fats and oils ............. 2,763 1,947 -816 -29.5

AG004 Sheep and meat of sheep ................... 35 25 -10 -29.3

CH020 Synthetic tanning agents ................... 19 13 -5 -28.6

AG047 Furskins ................................ 196 141 -55 -28.2

CH003 Coal, coke, and related chemical products ...... 3,635 2,671 -964 -26.5

AG022 Citrus fruit .............................. 672 498 -174 -25.9

ET011 Motorcycles, mopeds, and parts .............. 626 468 -158 -25.3

AG011 Eggs .................................. 207 155 -52 -25.3

MM035 Construction castings and other cast-iron articles . 37 27 -9 -25.1

MM011 Ceramic bricks and similar articles ............ 26 20 -7 -24.8

MM068 Wiring harnesses for motor vehicles ........... 1,315 993 -322 -24.5

MM077 Mineral processing machinery ............... 764 590 -174 -22.8

AG045 Cigarettes ............................... 4,166 3,232 -934 -22.4

MM022 Ferroalloys .............................. 103 80 -23 -22.3

ET004 Construction and mining equipment ........... 10,944 8,646 -2,299 -21.0

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
C-5

Table C-3

Domestic import increases: Ranking of top 20 industry/commodity groups, 1998 and 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

U.S. imports Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,

code Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

Rank order based on change in absolute value growth:

ET009 Motor vehicles ........................... 99,826 119,663 19,837 19.9

ET035 Computers, peripherals, and parts ............ 72,635 81,662 9,027 12.4

CH004 Crude petroleum .......................... 25,467 31,642 6,175 24.2

CH025 Medicinal chemicals ....................... 17,952 23,781 5,829 32.5

ET017 Telephone and telegraph apparatus ........... 14,385 20,147 5,762 40.1

CH005 Petroleum products ....................... 17,584 22,079 4,495 25.6

ET033 Semiconductors and integrated circuits ......... 33,157 37,158 4,001 12.1

ET010 Certain motor-vehicle parts .................. 18,767 22,725 3,958 21.1

CH049 Apparel ................................ 53,874 56,565 2,691 5.0

ET002 Internal combustion piston engines, other than

 for aircraft ............................. 11,478 14,052 2,574 22.4

MM054 Furniture ............................... 10,417 12,775 2,358 22.6

ET013 Aircraft, spacecraft, and related equipment ...... 12,748 14,592 1,843 14.5

ET018 Consumer electronics (except televisions) ....... 16,444 18,282 1,838 11.2

CH006 Natural gas and components ................ 9,212 11,042 1,830 19.9

ET023 Radio and television broadcasting equipment .... 3,211 4,948 1,736 54.1

MM019 Natural and synthetic gemstones ............. 9,449 11,021 1,572 16.6

MM091 Electric motors, generators, and related

 equipment ............................. 4,748 6,089 1,341 28.2

CH041 Miscellaneous plastic products ............... 9,709 10,988 1,279 13.2

MM064 Works of art and miscellaneous manufactured

 goods ................................ 7,230 8,463 1,233 17.1

AG052 Lumber ................................. 6,743 7,820 1,077 16.0

Rank order based on change in percentage growth:

AG049 Cotton, not carded or combed ............... 14 136 123 905.6

MM018 Fiberglass insulation products ............... 71 139 68 95.2

AG045 Cigarettes ............................... 59 112 52 87.8

ET037 Optical fibers, optical fiber bundles and cables ... 398 729 330 82.9

AG022 Citrus fruit .............................. 211 331 119 56.5

ET023 Radio and television broadcasting equipment .... 3,211 4,948 1,736 54.1

AG023 Deciduous fruit ........................... 177 268 91 51.4

AG011 Eggs .................................. 14 20 7 49.4

MM006 Zinc ores, concentrates, and residues .......... 37 53 16 42.9

AG026 Frozen fruit .............................. 89 125 37 41.4

ET017 Telephone and telegraph apparatus ........... 14,385 20,147 5,762 40.1

MM057 Prefabricated buildings ..................... 160 221 60 37.7

MM063 Brooms, brushes, and hair grooming articles .... 698 955 258 36.9

ET011 Motorcycles, mopeds, and parts .............. 1,293 1,755 462 35.7

CH025 Medicinal chemicals ....................... 17,952 23,781 5,829 32.5

CH007 Major primary olefins ...................... 1,360 1,798 438 32.2

MM027 Fabricated structurals ...................... 328 432 103 31.5

AG053 Moldings, millwork, and joinery ............... 1,924 2,521 597 31.0

MM090 Boilers, turbines, and related machinery ........ 370 484 114 30.7

MM044 Table flatware and related products ........... 327 425 98 29.9

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
C-6

Table C-4

Domestic import declines: Ranking of top 20 industry/commodity groups, 1998 and 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

U.S. imports Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,

code Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

Rank order based on change in absolute value decline:

MM025 Steel mill products ........................ 16,434 12,749 -3,685 -22.4

MM078 Farm and garden machinery and equipment ..... 4,171 3,294 -877 -21.0

MM084 Metal cutting machine tools and machine tool

 accessories ............................ 4,590 3,921 -669 -14.6

ET039 Photographic cameras and equipment ......... 6,447 5,843 -604 -9.4

AG028 Coffee and tea ........................... 3,656 3,114 -542 -14.8

MM082 Textile machinery ......................... 1,958 1,490 -468 -23.9

ET004 Construction and mining equipment ........... 6,299 5,919 -380 -6.0

CH044 Natural rubber ........................... 977 704 -272 -27.9

AG062 Newsprint ............................... 3,766 3,517 -248 -6.6

MM021 Primary iron products ...................... 856 643 -213 -24.8

MM041 Certain base metals and chemical elements ..... 2,424 2,226 -197 -8.1

MM083 Metal rolling mills ......................... 514 321 -193 -37.5

AG012 Sugar and other sweeteners ................. 1,068 879 -188 -17.7

AG017 Miscellaneous vegetable substances .......... 993 839 -154 -15.5

MM004 Copper ores and concentrates ............... 228 82 -146 -64.0

MM003 Iron ores and concentrates .................. 527 399 -129 -24.4

AG033 Animal or vegetable fats and oils ............. 1,475 1,348 -126 -8.6

CH013 Miscellaneous inorganic chemicals ............ 4,752 4,641 -111 -2.3

MM058 Dolls ................................... 1,484 1,374 -110 -7.4

CH023 Pesticide products and formulations ........... 1,292 1,183 -109 -8.5

Rank order based on change in percentage decline:

MM008 Precious metal ores and concentrates ......... 45 4 -42 -92.0

MM004 Copper ores and concentrates ............... 228 82 -146 -64.0

MM050 Silverware and related articles of precious metal . . 158 57 -101 -63.9

MM005 Lead ores, concentrates, and residues ......... 8 3 -4 -55.8

AG048 Wool and other animal hair ................. 141 70 -71 -50.2

MM083 Metal rolling mills ......................... 514 321 -193 -37.5

CH015 Chlor-alkali chemicals ..................... 191 126 -66 -34.3

CH044 Natural rubber ........................... 977 704 -272 -27.9

MM021 Primary iron products ...................... 856 643 -213 -24.8

MM003 Iron ores and concentrates .................. 527 399 -129 -24.4

MM082 Textile machinery ......................... 1,958 1,490 -468 -23.9

MM025 Steel mill products ........................ 16,434 12,749 -3,685 -22.4

MM078 Farm and garden machinery and equipment ..... 4,171 3,294 -877 -21.0

AG044 Cigars and certain other manufactured tobacco . . 377 301 -76 -20.2

AG012 Sugar and other sweeteners ................. 1,068 879 -188 -17.7

AG032 Oilseeds ................................ 315 263 -51 -16.3

CH014 Inorganic acids ........................... 282 238 -44 -15.6

AG017 Miscellaneous vegetable substances .......... 993 839 -154 -15.5

AG047 Furskins ................................ 86 73 -13 -15.2

ET032 Electron tubes other than CRTs .............. 225 190 -34 -15.2

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
C-7

Table C-5

U.S. trade position increases: Ranking of top 30 industry/commodity groups, 1998 and 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

U.S. balance Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,

code Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

ET033 Semiconductors and integrated circuits ......... -4,102 -542 3,560 86.8

MM025 Steel mill products ........................ -11,798 -8,458 3,339 28.3

ET001 Aircraft engines and gas turbines ............. 2,711 3,889 1,178 43.5

MM098 Miscellaneous machinery ................... -190 623 814 (

1

)

AG028 Coffee and tea ........................... -3,393 -2,830 563 16.6

MM084 Metal cutting machine tools and machine tool

 accessories ............................ -2,605 -2,148 457 17.5

ET039 Photographic cameras and equipment ......... -4,417 -4,018 399 9.0

MM082 Textile machinery ......................... -1,198 -808 390 32.6

CH046 Fabrics ................................. -776 -393 383 49.4

CH044 Natural rubber ........................... -941 -664 277 29.5

MM096 Welding and soldering equipment ............. 29 287 258 884.7

AG036 Infant formulas, malt extracts, and other edible

 preparations ........................... 1,537 1,788 251 16.3

ET028 Circuit apparatus not exceeding 1000V ......... -845 -615 231 27.3

AG002 Cattle and beef ........................... -370 -152 218 58.9

AG062 Newsprint ............................... -3,305 -3,094 211 6.4

MM021 Primary iron products ...................... -838 -629 209 25.0

AG030 Cereals ................................. 9,218 9,398 179 1.9

CH010 Organic commodity chemicals ............... 526 696 170 32.4

AG012 Sugar and other sweeteners ................. -687 -522 164 23.9

MM004 Copper ores and concentrates ............... -165 -2 163 99.1

AG017 Miscellaneous vegetable substances .......... -531 -386 145 27.3

MM003 Iron ores and concentrates .................. -283 -156 127 44.9

MM060 Games ................................. -3,269 -3,150 118 3.6

CH026 Essential oils and other flavoring materials ...... 80 194 113 141.1

MM050 Silverware and related articles of precious metal . . -44 66 110 (

1

)

AG037 Cocoa, chocolate, and confectionery .......... -1,581 -1,472 109 6.9

MM058 Dolls ................................... -1,455 -1,349 106 7.3

CH028 Soaps, detergents, and surface-active agents .... 1,086 1,190 104 9.6

ET030 Parts of circuit apparatus ................... 713 809 97 13.6

MM083 Metal rolling mills ......................... -262 -168 94 35.9

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1 Not meaningful for purposes of comparison.

Note.--Calculations based on unrounded data.

Source: Compiled from official statistics of the U.S. Department of Commerce.
C-8

Table C-6

U.S. trade position declines: Ranking of top 30 industry/commodity groups, 1998 and 1999

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

U.S. balance Change, 1999 from 1998 USITC ,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,

code Industry/commodity group 1998 1999 Absolute Percent

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

–––––––– Million Dollars –––––––

ET009 Motor vehicles ........................... -77,305 -97,614 -20,309 -26.3

ET035 Computers, peripherals, and parts ............ -33,673 -42,432 -8,759 -26.0

CH004 Crude petroleum .......................... -24,797 -30,870 -6,074 -24.5

ET017 Telephone and telegraph apparatus ........... 2,782 -2,430 -5,212 (

1

)

ET013 Aircraft, spacecraft, and related equipment ...... 37,500 33,171 -4,329 -11.5

CH005 Petroleum products ....................... -11,351 -15,480 -4,129 -36.4

CH025 Medicinal chemicals ....................... -5,996 -10,100 -4,105 -68.5

CH049 Apparel ................................ -45,361 -48,601 -3,240 -7.1

ET010 Certain motor-vehicle parts .................. 7,221 4,557 -2,664 -36.9

MM054 Furniture ............................... -7,785 -10,178 -2,393 -30.7

ET004 Construction and mining equipment ........... 4,645 2,727 -1,919 -41.3

ET022 Television receivers and video monitors ........ -3,736 -5,548 -1,812 -48.5

ET018 Consumer electronics (except televisions) ....... -13,865 -15,604 -1,739 -12.5

AG049 Cotton, not carded or combed ............... 2,532 832 -1,700 -67.1

CH006 Natural gas and components ................ -8,630 -10,282 -1,652 -19.1

MM091 Electric motors, generators, and related

 equipment ............................. -793 -2,362 -1,569 -197.8

MM019 Natural and synthetic gemstones ............. -9,233 -10,575 -1,342 -14.5

MM064 Works of art and miscellaneous manufactured

 goods ................................ -5,545 -6,732 -1,187 -21.4

CH003 Coal, coke, and related chemical products ...... 2,065 930 -1,135 -55.0

ET002 Internal combustion piston engines, other than

 for aircraft ............................. -463 -1,530 -1,067 -230.5

MM073 Household appliances, including commercial

 applications ............................ -713 -1,778 -1,065 -149.3

AG045 Cigarettes ............................... 4,106 3,120 -987 -24.0

AG052 Lumber ................................. -4,741 -5,636 -895 -18.9

ET023 Radio and television broadcasting equipment .... -1,832 -2,624 -793 -43.3

MM068 Wiring harnesses for motor vehicles ........... -3,092 -3,875 -782 -25.3

AG054 Wood veneer and wood panels ............... -1,838 -2,615 -778 -42.3

MM056 Lamps and lighting fittings .................. -2,548 -3,272 -725 -28.4

CH039 Pneumatic tires and tubes (new) .............. -1,479 -2,193 -713 -48.2

MM009 Cement, stone, and related products .......... -2,226 -2,919 -693 -31.2

AG033 Animal or vegetable fats and oils ............. 1,289 599 -690 -53.5

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Not meaningful for purposes of comparison.

Note.--Calculations based on unrounded data.

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

APPENDIX D

Definitions of Selected

Country Groups

D-3

ASEAN (ASSOCIATION OF SOUTHEAST ASIAN NATIONS)

Brunei Malaysia

Burma (Myanmar) Philippines

Cambodia Singapore

Indonesia Thailand

Laos Vietnam

ASIA

Afghanistan Macao

Bangladesh Malaysia

Bhutan Maldive Islands

Brunei Mongolia

Burma (Myanmar) Nepal

Cambodia North Korea

China Pakistan

Hong Kong Philippines

India Singapore

Indonesia Sri Lanka

Japan Taiwan

Korea Thailand

Laos Vietnam

CBERA (CARIBBEAN BASIN ECONOMIC RECOVERY ACT)

BENEFICIARIES

Antigua and Barbuda Guyana

Aruba Haiti

The Bahamas Honduras

Barbados Jamaica

Belize Montserrat

British Virgin Islands Netherlands Antilles

Costa Rica Nicaragua

Dominica Panama

Dominican Republic St. Kitts and Nevis

El Salvador St. Lucia

Grenada St. Vincent and the Grenadines

Guatemala Trinidad and Tobago
D-4

CENTRAL AND EASTERN EUROPE

Albania Macedonia

Bosnia-Hercegovina Poland

Bulgaria Romania

Croatia Slovakia

Czech Republic Slovenia

Hungary Yugoslavia (Serbia and Montenegro)

EU/EU-15 (EUROPEAN UNION)

Austria Italy

Belgium Luxembourg

Denmark Netherlands

Finland Portugal

France Spain

Germany Sweden

Greece United Kingdom

Ireland

LATIN AMERICA

Anguilla Ecuador

Antigua and Barbuda El Salvador

Argentina Falkland Islands

Aruba French Guiana

The Bahamas Grenada

Barbados Guadeloupe 

Belize Guatemala

Bermuda Guyana

Bolivia Haiti

Brazil Honduras

British Virgin Islands Jamaica

Cayman Islands Martinique

Chile Mexico

Colombia Montserrat

Costa Rica Netherlands Antilles

Cuba Nicaragua

Dominica Island Panama

Dominican Republic Paraguay
D-5

LATIN AMERICA–Continued

Peru Suriname

St. Kitts and Nevis Trinidad and Tobago

St. Lucia Turks and Caicos Islands

St. Pierre and Miquelon Uruguay

St. Vincent and the Grenadines Venezuela

NAFTA (NORTH AMERICAN FREE TRADE AGREEMENT) PARTNERS

Canada Mexico

United States

OPEC (ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES)

Algeria Nigeria

Indonesia Qatar

Iran Saudi Arabia

Iraq United Arab Emirates

Kuwait Venezuela

Libya

SUB-SAHARAN AFRICA

Angola Djibouti

Benin Equatorial Guinea

Botswana Eritrea

Burkina Faso Ethiopia

Burundi Gabon

Cameroon The Gambia

Cape Verde Ghana

Central African Republic Guinea

Chad Guinea-Bissau

Comoros Kenya

Democratic Republic of the Lesotho

 Congo (Congo-Kinshasa) Liberia

Republic of the Congo (Congo- Madagascar

 Brazzaville) Malawi

Côte d'Ivoire Mali
D-6

SUB-SAHARAN AFRICA–Continued

Mauritania Sierra Leone

Mauritius Somalia 

Mozambique South Africa

Namibia Sudan

Niger Swaziland

Nigeria Tanzania

Rwanda Togo

São Tomé and Príncipe Uganda

Senegal Zambia

Seychelles Zimbabwe
,,,,,,,,,,,,,,,,

APPENDIX E

Status of Antidumping and Countervailing

Duty Order 5-Year (Sunset) Reviews

Table E-1

Status of antidumping and countervailing duty order 5-year (sunset) reviews (as of August 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Country Product (Suspension Agreement (SA)) Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnotes at end of table.

E-3

July 1998 Canada Steel Jacks ........................................ R

July 1998 Japan Fish Netting of Manmade Fiber ......................... R

July 1998 France Large Power Transformers ............................ R

July 1998 Italy Large Power Transformers ............................ R

July 1998 Japan Large Power Transformers ............................ R

July 1998 Japan Bicycle Speedometers ............................... R

July 1998 Australia Canned Bartlett Pears ............................... R

July 1998 Japan Roller Chain ....................................... R

August 1998 Sweden Stainless Steel Plate ................................. R

August 1998 Japan Synthetic Methionine ................................ R

August 1998 Japan Polychloroprene Rubber .............................. C

August 1998 Canada Elemental Sulphur .................................. R

August 1998 Canada Racing Plates ...................................... R

August 1998 Japan Acrylic Sheet ...................................... R

August 1998 Japan Melamine ......................................... C

September 1998 Brazil Cotton Yarn ....................................... R

September 1998 Italy Pressure Sensitive Plastic Tape ........................ C

September 1998 Germany Animal Glue ....................................... R

September 1998 Austria Railway Track Maintenance Equipment .................. R

September 1998 Japan Impression Fabric ................................... R

September 1998 Japan Prestressed Concrete Steel Wire Strand .................. C

September 1998 Finland Rayon Staple Fiber .................................. R

September 1998 Sweden Rayon Staple Fiber .................................. R

October 1998 European Union Sugar ............................................ C

October 1998 Belgium Sugar ............................................ C

October 1998 France Sugar ............................................ C

October 1998 Germany Sugar ............................................ C

October 1998 Canada Sugar and Syrups ................................... R

October 1998 Japan Television Receivers ................................. R

October 1998 Korea Color Television Receivers ............................ R

October 1998 Taiwan Color Television Receivers ............................ R

October 1998 Japan Small Electric Motors (SA) ............................ R

October 1998 France Anhydrous Sodium Metasilicate ........................ C

October 1998 France Sorbitol .......................................... C

October 1998 Japan High Power Microwave Amplifiers ....................... R

October 1998 Germany Barium Carbonate .................................. R

October 1998 China Barium Chloride .................................... C

November 1998 China Griege Polyester Cotton Print Cloth ..................... C

November 1998 Argentina2 Carbon Steel Wire Rod (SA) ........................... R

November 1998 Argentina Carbon Steel Wire Rods .............................. R

November 1998 Singapore Refrigeration Compressors (SA) ........................ R

November 1998 Spain Potassium Permanganate ............................ R

November 1998 China Potassium Permanganate ............................ C

November 1998 China Chloropicrin ....................................... C

November 1998 India Iron Metal Castings ................................. R

November 1998 Canada Iron Construction Castings ............................ C

November 1998 Brazil Iron Construction Castings ............................ C

November 1998 China Iron Construction Castings ............................ C

November 1998 Brazil2 Heavy Iron Construction Castings ....................... C

November 1998 Italy Brass Fire Protection Equipment ....................... R

December 1998 Colombia Textiles and Textile Products (SA) ...................... R
Table E-1

Status of antidumping and countervailing duty order 5-year (sunset) reviews (as of August 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Country Product (Suspension Agreement (SA)) Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Table E-1--Continued

Status of antidumping and countervailing duty order 5-year (sunset) reviews (as of August 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Country Product (Suspension Agreement (SA)) Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnotes at end of table.

E-4

December 1998 Thailand Certain Textile Mill Products (SA) ....................... R

December 1998 Brazil2 Frozen Concentrated Orange Juice (SA) .................. R

December 1998 Brazil Frozen Concentrated Orange Juice ...................... C

December 1998 Japan Calcium Hypochlorite ................................ R

December 1998 Brazil Castor Oil Products ................................. R

December 1998 China Sebacic Acid ...................................... C

December 1998 Canada Red Raspberries .................................... R

December 1998 Canada Live Swine ........................................ R

December 1998 Brazil Agricultural Tillage Tools ............................. R

December 1998 Argentina Barbed Wire and Barbless Wire Strand .................. C

January 1999 New Zealand Brazing Copper Wire and Rod ......................... R

January 1999 South Africa Brazing Copper Wire and Rod ......................... R

January 1999 Japan Cellular Mobile Telephones and Subassemblies ............ R

January 1999 China Natural Bristle Paint Brushes .......................... C

January 1999 China Cotton Shop Towels ................................. C

January 1999 Pakistan Cotton Shop Towels ................................. C

January 1999 Peru Cotton Shop Towels (SA) ............................. R

January 1999 Bangladesh Cotton Shop Towels ................................. C

January 1999 China Petroleum Wax Candles .............................. C

January 1999 Japan Steel Wire Rope .................................... R

January 1999 Mexico Carbon Steel Wire Rope .............................. R

January 1999 Korea Carbon Steel Wire Rope .............................. R

January 1999 Brazil Malleable Cast Iron Pipe Fittings ....................... R

January 1999 Korea Malleable Cast Iron Pipe Fittings ....................... C

January 1999 Taiwan Malleable Cast Iron Pipe Fittings ....................... R

January 1999 Japan Malleable Cast Iron Pipe Fittings ....................... C

January 1999 Thailand Malleable Cast Iron Pipe Fittings ....................... R

February 1999 China Porcelain-on-Steel Cooking Ware ....................... C

February 1999 Mexico Porcelain-on-Steel Cooking Ware ....................... C

February 1999 Taiwan Porcelain-on-Steel Cooking Ware ....................... C

February 1999 Mexico2 Porcelain-on-Steel Cooking Ware ....................... R

February 1999 Korea2 Top-of-the-Stove Stainless Steel Cooking Ware ............ C

February 1999 Korea Top-of-the-Stove Stainless Steel Cooking Ware ............ C

February 1999 Taiwan2 Top-of-the-Stove Stainless Steel Cooking Ware ............ C

February 1999 Taiwan Top-of-the-Stove Stainless Steel Cooking Ware ............ C

February 1999 Netherlands Standard Chrysanthemums ........................... R

February 1999 Peru Pompon Chrysanthemums ............................ R

February 1999 Colombia Fresh Cut Flowers .................................. R

February 1999 Ecuador Fresh Cut Flowers .................................. R

February 1999 Mexico Fresh Cut Flowers .................................. R

February 1999 Chile2 Standard Carnations ................................ R

February 1999 Chile Standard Carnations ................................ R

February 1999 Kenya Standard Carnations ................................ R

February 1999 Brazil2 Brass Sheet and Strip ................................ C

February 1999 Brazil Brass Sheet and Strip ................................ C

February 1999 Canada Brass Sheet and Strip ................................ C

February 1999 Korea Brass Sheet and Strip ................................ R

February 1999 France2 Brass Sheet and Strip ................................ C

February 1999 France Brass Sheet and Strip ................................ C

February 1999 Germany Brass Sheet and Strip ................................ C

February 1999 Italy Brass Sheet and Strip ................................ C

February 1999 Sweden Brass Sheet and Strip ................................ R

February 1999 Japan Brass Sheet and Strip ................................ C

February 1999 Netherlands Brass Sheet and Strip ................................ R
Table E-1

Status of antidumping and countervailing duty order 5-year (sunset) reviews (as of August 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Country Product (Suspension Agreement (SA)) Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Table E-1--Continued

Status of antidumping and countervailing duty order 5-year (sunset) reviews (as of August 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Country Product (Suspension Agreement (SA)) Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnotes at end of table.

E-5

March 1999 Armenia Solid Urea ........................................ R

March 1999 Azerbaijan Solid Urea ........................................ R 

March 1999 Belarus Solid Urea ........................................ C

March 1999 Estonia Solid Urea ........................................ C

March 1999 Georgia Solid Urea ........................................ R

March 1999 Kazakstan Solid Urea ........................................ R

March 1999 Kyrgyzstan Solid Urea ........................................ R

March 1999 Latvia Solid Urea ........................................ R

March 1999 Lithuania Solid Urea ........................................ C

March 1999 Moldova Solid Urea ........................................ R

March 1999 Romania Solid Urea ........................................ C

March 1999 Russia Solid Urea ........................................ C

March 1999 Tajikistan Solid Urea ........................................ C

March 1999 Turkmenistan Solid Urea ........................................ C

March 1999 Ukraine Solid Urea ........................................ C

March 1999 Uzbekistan Solid Urea ........................................ C

March 1999 Israel Industrial Phosphoric Acid ............................ R

March 1999 Israel2Industrial Phosphoric Acid ............................ R

March 1999 Belgium Industrial Phosphoric Acid ............................ R

March 1999 Turkey Aspirin ........................................... C

March 1999 Canada Color Picture Tubes ................................. R

March 1999 Japan Color Picture Tubes ................................. R

March 1999 Korea Color Picture Tubes ................................. R

March 1999 Singapore Color Picture Tubes ................................. R

April 1999 Canada Potassium Chloride (Potash) (SA) ...................... R

April 1999 Japan Tapered Roller Bearings, 4 Inches and Under .............. R

April 1999 China Tapered Roller Bearings .............................. C

April 1999 Hungary Tapered Roller Bearings .............................. R

April 1999 Romania Tapered Roller Bearings .............................. R

April 1999 Japan Tapered Roller Bearings, Over 4 Inches .................. R

April 1999 France Ball Bearings ...................................... C

April 1999 Germany Ball Bearings ...................................... C

April 1999 Italy Ball Bearings ...................................... C

April 1999 Japan Ball Bearings ...................................... C

April 1999 Romania Ball Bearings ...................................... R

April 1999 Singapore Ball Bearings ...................................... C

April 1999 Sweden Ball Bearings ...................................... R

April 1999 United Kingdom Ball Bearings ...................................... C

April 1999 France Spherical Plain Bearings .............................. C

April 1999 Germany Spherical Plain Bearings .............................. R

April 1999 Japan Spherical Plain Bearings .............................. R

April 1999 Germany Cylindrical Roller Bearings ............................ R

April 1999 Italy Cylindrical Roller Bearings ............................ R

April 1999 Japan Cylindrical Roller Bearings ............................ R

April 1999 France Cylindrical Roller Bearings ............................ R

April 1999 Sweden Cylindrical Roller Bearings ............................ R

April 1999 United Kingdom Cylindrical Roller Bearings ............................ R

April 1999 Japan Internal Combustion Industrial Forklift Trucks .............. C

April 1999 Japan Nitrile Rubber ...................................... R

May 1999 Taiwan Small Diameter Carbon Steel Pipe and Tube .............. C

May 1999 Singapore Small Diameter Standard & Rectangular Pipe and Tube ...... R

May 1999 Turkey2 Welded Carbon Steel Standard Pipe ..................... C

May 1999 Turkey2 Welded Carbon Steel Line Pipe ........................ R
Table E-1

Status of antidumping and countervailing duty order 5-year (sunset) reviews (as of August 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Country Product (Suspension Agreement (SA)) Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Table E-1--Continued

Status of antidumping and countervailing duty order 5-year (sunset) reviews (as of August 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Country Product (Suspension Agreement (SA)) Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnotes at end of table.

E-6

May 1999 Thailand Welded Carbon Steel Pipe and Tube .................... C

May 1999 India Welded Carbon Steel Pipe and Tube .................... C

May 1999 Turkey Welded Carbon Steel Pipe and Tube .................... C

May 1999 Canada Oil Country Tubular Goods ............................ R

May 1999 Taiwan Oil Country Tubular Goods ............................ R

May 1999 Israel2 Oil Country Tubular Goods ............................ R

May 1999 Israel Oil Country Tubular Goods ............................ R

May 1999 Taiwan Light Walled Rectangular Tubing ....................... C

May 1999 Argentina Light Walled Rectangular Tubing ....................... C

May 1999 Brazil Circular-Welded Non-Alloy Steel Pipe .................... C

May 1999 Korea Circular-Welded Non-Alloy Steel Pipe .................... C

May 1999 Mexico Circular-Welded Non-Alloy Steel Pipe .................... C

May 1999 Taiwan Circular-Welded Non-Alloy Pipe ........................ C

May 1999 Venezuela Circular-Welded Non-Alloy Pipe ........................ R

May 1999 Japan Granular Polytetrafluoroetheylene Resin .................. C

May 1999 Italy Granular Polytetraflouroetheylene Resin .................. C

May 1999 Brazil Carbon Steel Butt-Weld Pipe Fittings .................... C

May 1999 Taiwan Carbon Steel Butt-Weld Pipe Fittings .................... C

May 1999 Japan Carbon Steel Butt-Weld Pipe Fittings .................... C

May 1999 China Carbon Steel Butt-Weld Pipe Fittings .................... C

May 1999 Thailand Carbon Steel Butt-Weld Pipe Fittings .................... C

May 1999 Japan 3.5 Inch Micro Disks ................................. R

May 1999 Greece Electrolytic Manganese Dioxide ........................ R

May 1999 Japan Electrolytic Manganese Dioxide ........................ R

June 1999 Germany Industrial Belts Except Synchronous and V-Belts ........... R

June 1999 Italy Industrial Synchronous and V-Belts ..................... R

June 1999 Japan Industrial Belts ..................................... R

June 1999 Singapore Industrial V-Belts ................................... R

June 1999 France Industrial Nitrocellulose .............................. C

June 1999 Brazil Industrial Nitrocellulose .............................. C

June 1999 China Industrial Nitrocellulose .............................. C

June 1999 Germany Industrial Nitrocellulose .............................. C

June 1999 Japan Industrial Nitrocellulose .............................. C

June 1999 Korea Industrial Nitrocellulose .............................. C

June 1999 United Kingdom Industrial Nitrocellulose .............................. C

June 1999 Yugoslavia Industrial Nitrocellulose .............................. R

June 1999 Canada Steel Rail ......................................... C

June 1999 Canada2 Steel Rail ......................................... C

June 1999 Japan Drafting Machines .................................. C

June 1999 Japan Small Business Telephone Systems ..................... R

June 1999 Taiwan Small Business Telephone Systems ..................... R

June 1999 Korea Small Business Telephone Systems ..................... R

June 1999 Japan Mechanical Transfer Presses .......................... C

June 1999 Japan Multiangle Laser Light Scattering Instruments .............. R

June 1999 Japan Benzyl Paraben .................................... R

July 1999 China Bars and Wedges ................................... C

July 1999 China Axes and Adzes .................................... C

July 1999 China Picks and Mattocks ................................. C

July 1999 China Hammers and Sledges ............................... C

July 1999 China Sulfur Chemicals (Sodium Thiosulfate) ................... C

July 1999 Germany Sulfur Chemicals (Sodium Thiosulfate) ................... C

July 1999 United Kingdom Sulfur Chemicals (Sodium Thiosulfate) ................... C

July 1999 Spain2 Stainless Steel Wire Rod ............................. R

July 1999 India Stainless Steel Wire Rod ............................. C
Table E-1

Status of antidumping and countervailing duty order 5-year (sunset) reviews (as of August 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Country Product (Suspension Agreement (SA)) Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Table E-1--Continued

Status of antidumping and countervailing duty order 5-year (sunset) reviews (as of August 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Country Product (Suspension Agreement (SA)) Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnotes at end of table.

E-7

July 1999 Brazil Stainless Steel Wire Rod ............................. C

July 1999 France Stainless Steel Wire Rod ............................. C

July 1999 Sweden Stainless Steel Hollow Products ........................ R

July 1999 Korea Welded ASTM A-312 Stainless Steel Pipe ................ F

July 1999 Taiwan Welded ASTM A-312 Stainless Steel Pipe ................ F

July 1999 Norway2 Fresh and Chilled Atlantic Salmon ...................... C

July 1999 Norway Fresh and Chilled Atlantic Salmon ...................... C

July 1999 Korea Polyethylene Terephthalate Film ........................ C

July 1999 China Sparklers ......................................... C

July 1999 Japan Stainless Steel Butt-Weld Pipe Fittings ................... C

July 1999 Korea Stainless Steel Butt-Weld Pipe Fittings ................... C

July 1999 Taiwan Stainless Steel Butt-Weld Pipe Fittings ................... C

August 1999 Japan Gray Portland Cement and Clinker ...................... F

August 1999 Mexico Gray Portland Cement and Clinker ...................... F

August 1999 Venezuela Gray Portland Cement and Clinker ...................... F

August 1999 Venezuela2 Gray Portland Cement and Clinker ...................... F

August 1999 Japan Electroluminescent Flat-panel Displays ................... C

August 1999 China Chrome-plated Lug Nuts .............................. F

August 1999 Taiwan Chrome-plated Lug Nuts .............................. F

August 1999 China Tungsten Ore Concentrates ........................... R

August 1999 New Zealand Fresh Kiwifruit ..................................... R

August 1999 Canada Alloy Magnesium ................................... C

August 1999 Canada Pure Magnesium ................................... C

August 1999 Canada2 Pure Magnesium ................................... C

August 1999 Malaysia Extruded Rubber Thread .............................. C

August 1999 Kyrgyzstan Uranium (SA) ...................................... R

August 1999 Russia Uranium (SA) ...................................... C

August 1999 Ukraine Uranium .......................................... R

August 1999 Uzbekistan Uranium (SA) ...................................... R

September 1999 Taiwan Carbon Steel Plate .................................. F

September 1999 Sweden Cold-rolled Carbon Steel Flat Products ................... F

September 1999 Germany2 Cold-rolled Carbon Steel Flat Products ................... F

September 1999 Germany Cold-rolled Carbon Steel Flat Products ................... F

September 1999 Korea2 Cold-rolled Carbon Steel Flat Products ................... F

September 1999 Korea Cold-rolled Carbon Steel Flat Products ................... F

September 1999 Netherlands Cold-rolled Carbon Steel Flat Products ................... F

September 1999 Australia Corrosion-resistant Carbon Steel Flat Products ............ F

September 1999 Canada Corrosion-resistant Carbon Steel Flat Products ............ F

September 1999 France2 Corrosion-resistant Carbon Steel Flat Products ............ F

September 1999 France Corrosion-resistant Carbon Steel Flat Products ............ F

September 1999 Germany2 Corrosion-resistant Carbon Steel Flat Products ............ F

September 1999 Germany Corrosion-resistant Carbon Steel Flat Products ............ F

September 1999 Japan Corrosion-resistant Carbon Steel Flat Products ............ F

September 1999 Korea2 Corrosion-resistant Carbon Steel Flat Products ............ F

September 1999 Korea Corrosion-resistant Carbon Steel Flat Products ............ F

September 1999 Belgium2 Cut-to-length Carbon Steel Plate ....................... F

September 1999 Belgium Cut-to-length Carbon Steel Plate ....................... F

September 1999 Brazil2 Cut-to-length Carbon Steel Plate ....................... F

September 1999 Brazil Cut-to-length Carbon Steel Plate ....................... F

September 1999 Canada Cut-to-length Carbon Steel Plate ....................... F

September 1999 Finland Cut-to-length Carbon Steel Plate ....................... F

September 1999 Germany2 Cut-to-length Carbon Steel Plate ....................... F

September 1999 Germany Cut-to-length Carbon Steel Plate ....................... F

September 1999 Mexico2 Cut-to-length Carbon Steel Plate ....................... F
Table E-1

Status of antidumping and countervailing duty order 5-year (sunset) reviews (as of August 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Country Product (Suspension Agreement (SA)) Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Table E-1--Continued

Status of antidumping and countervailing duty order 5-year (sunset) reviews (as of August 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Country Product (Suspension Agreement (SA)) Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See footnotes at end of table.

E-8

September 1999 Mexico Cut-to-length Carbon Steel Plate ....................... F

September 1999 Poland Cut-to-length Carbon Steel Plate ....................... F

September 1999 Romania Cut-to-length Carbon Steel Plate ....................... F

September 1999 Spain2 Cut-to-length Carbon Steel Plate ....................... F

September 1999 Spain Cut-to-length Carbon Steel Plate ....................... F

September 1999 Sweden2 Cut-to-length Carbon Steel Plate ....................... F

September 1999 Sweden Cut-to-length Carbon Steel Plate ....................... F

September 1999 United Kingdom2 Cut-to-length Carbon Steel Plate ....................... F

September 1999 United Kingdom Cut-to-length Carbon Steel Plate ....................... F

October 1999 China Sulfanilic Acid ..................................... C

October 1999 India2 Sulfanilic Acid ..................................... C

October 1999 India Sulfanilic Acid ..................................... C

October 1999 Brazil2 Hot-rolled Lead/bismuth Carbon Steel Products ............ R

October 1999 Brazil Hot-rolled Lead/bismuth Carbon Steel Products ............ R

October 1999 France2 Hot-rolled Lead/bismuth Carbon Steel Products ............ R

October 1999 France Hot-rolled Lead/bismuth Carbon Steel Products ............ R

October 1999 Germany2 Hot-rolled Lead/bismuth Carbon Steel Products ............ R

October 1999 Germany Hot-rolled Lead/bismuth Carbon Steel Products ............ R

October 1999 United Kingdom2 Hot-rolled Lead/bismuth Carbon Steel Products ............ R

October 1999 United Kingdom Hot-rolled Lead/bismuth Carbon Steel Products ............ R

November 1999 China Silicon Metal ....................................... F

November 1999 Brazil Silicon Metal ....................................... F

November 1999 Argentina Silicon Metal ....................................... F

November 1999 Korea DRAMs of 1 Megabit and Above ........................ F

November 1999 Japan Professional Electric Cutting Tools ...................... R

November 1999 Taiwan Helical Spring Lockwashers ........................... F

November 1999 China Helical Spring Lockwashers ........................... F

November 1999 China Compact Ductile Iron Waterworks Fittings ................ R

November 1999 Ukraine Silicomanganese ................................... F

November 1999 Brazil Silicomanganese ................................... F

November 1999 China Silicomanganese ................................... F

December 1999 India Forged Stainless Steel Flanges ........................ C

December 1999 Taiwan Forged Stainless Steel Flanges ........................ C

December 1999 Japan Defrost Timers ..................................... R

December 1999 Netherlands Aramid Fiber ...................................... F

December 1999 Italy2 Grain-oriented Silicon Electrical Steel .................... F

December 1999 Italy Grain-oriented Silicon Electrical Steel .................... F

December 1999 Japan Grain-oriented Silicon Electrical Steel .................... F

December 1999 Japan Color Negative Photo Paper and Chemicals (SA) ........... R

December 1999 Netherlands Color Negative Photo Paper and Chemicals (SA) ........... R

December 1999 China Fresh Garlic ....................................... F

December 1999 China Paper Clips ....................................... C

December 1999 China Cased Pencils ..................................... C

January 2000 China Coumarin ......................................... C

January 2000 Brazil Stainless Steel Bar .................................. F

January 2000 India Stainless Steel Bar .................................. F

January 2000 Japan Stainless Steel Bar .................................. F

January 2000 Spain Stainless Steel Bar .................................. F

February 2000 China Glycine ........................................... C

April 2000 China Pure Magnesium ................................... C
Table E-1

Status of antidumping and countervailing duty order 5-year (sunset) reviews (as of August 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Country Product (Suspension Agreement (SA)) Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Table E-1--Continued

Status of antidumping and countervailing duty order 5-year (sunset) reviews (as of August 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Country Product (Suspension Agreement (SA)) Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

E-9

April 2000 Russia Pure Magnesium ................................... R

May 2000 China Furfuryl Alcohol .................................... F

May 2000 Thailand Furfuryl Alcohol .................................... F

June 2000 Thailand Canned Pineapple .................................. I

June 2000 Russia Ferrovanadium and Nitrided Vanadium ................... I

July 2000 China Honey ........................................... I

July 2000 Argentina Oil Country Tubular Goods ............................ I

July 2000 Italy Oil Country Tubular Goods ............................ I

July 2000 Italy2 Oil Country Tubular Goods ............................ I

July 2000 Japan Oil Country Tubular Goods ............................ I

July 2000 Korea Oil Country Tubular Goods ............................ I

July 2000 Mexico Oil Country Tubular Goods ............................ I

July 2000 Argentina Seamless Pipe ..................................... I

July 2000 Brazil Seamless Pipe ..................................... I

July 2000 Germany Seamless Pipe ..................................... I

July 2000 Italy Seamless Pipe ..................................... I

July 2000 Italy2 Seamless Pipe ..................................... I

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Status codes:

I ...... Instituted and proceeding to the next decision point

F ..... USITC full review determination

R ..... Order revoked

C ..... Order continued

 

2

 Countervailing duty order review.

Source: Compiled by USITC staff.

,,,,,,,,,,,,,,,,

APPENDIX F

Status of WTO Cases Involving

the United States

Table F-1

Status of World Trade Organization (WTO) dispute settlement cases involving the United States (as of June 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Case No. Complaintant(s) Respondent(s) Case title Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See notes at end of table.

April 1995 WT/DS3 United States Korea Measures Concerning the Testing and Inspection of

 Agricultural Products ............................. PC

April 1995 WT/DS21 United States Australia Measures Affecting the Importation of Salmonids ........ AP

May 1995 WT/DS5 United States Korea Measures Concerning the Shelf-Life of Products ......... S/I

July 1995 WT/DS6 Japan United States Imposition of Import Duties on Automobiles from Japan

 Under Section 301 and 304 of the Trade Act of 1974 ..... S/I

July 1995 WT/DS13 United States European Community Duties on Imports of Grain ......................... S/I

September 1995 WT/DS11 Canada, Japan Taxes on Alcoholic Beverages ....................... C

European Community,

United States

January 1996 WT/DS2, DS4 Venezuela, Brazil United States Standards for Reformulated and Conventional Gasoline ... C

February 1996 WT/DS27 Ecuador, Guatemala, European Community Regime for the Importation, Sale, and Distribution of

Honduras, Mexico, Bananas ...................................... CR

United States

February 1996 WT/DS28 United States Japan Measures Concerning Sound Recordings .............. S/I

March 1996 WT/DS31 United States Canada Certain Measures Concerning Periodicals .............. C

March 1996 WT/DS32 India United States Measures Affecting Imports of Women’s and Girl’s Coats . . S/I

March 1996 WT/DS35 Argentina, Australia, Hungary Export Subsidies in Respect of Agricultural Products ...... S/I

Canada, New Zealand,

Thailand, United States

April 1996 WT/DS26 United States European Community Measures Affecting Meat and Meat Products (Hormones) . . CR

April 1996 WT/DS33 India United States Measure Affecting Imports of Woven Wool Shirts and

 Blouses ....................................... C

April 1996 WT/DS36 United States Pakistan Patent Protection for Pharmaceutical and Agricultural and

 Chemical Products .............................. S/I

April 1996 WT/DS37 United States Portugal Patent Protection Under the Industrial Property Act ....... S/I

April 1996 WT/DS39 European Community United States Tariff Increases on Products from the European

 Communities ................................... S/I

May 1996 WT/DS38 European Community United States The Cuban Liberty and Democratic Solidarity Act ........ S/I
Table F-1--Continued

Status of World Trade Organization (WTO) dispute settlement cases involving the United States (as of June 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Case No. Complaintant(s) Respondent(s) Case title Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See notes at end of table.

May 1996 WT/DS41 United States Korea Measures Concerning Inspection of Agricultural Products . . PC

June 1996 WT/DS43 United States Turkey Taxation of Foreign Film Revenues ................... S/I

June 1996 WT/DS44 United States Japan Measures Affecting Consumer Photographic Film and

 Paper ........................................ C

June 1996 WT/DS45 United States Japan Measures Affecting Distribution Services ............... PC

July 1996 WT/DS49 Mexico U.S. Anti-Dumping Investigation Regarding Imports of Fresh or 

 Chilled Tomatoes from Mexico ..................... S/I

July 1996 WT/DS50 United States India Patent Protection for Pharmaceutical and Agricultural

 Chemical Products .............................. C

August 1996 WT/DS52 United States Brazil Certain Measures Affecting Trade and Investment in the

 Automotive Sector ............................... PC

October 1996 WT/DS59 United States Indonesia Certain Measures Affecting the Automobile Industry ...... C

October 1996 WT/DS56 United States Argentina Certain Measures Affecting Imports of Footwear, Textiles,

 Apparel and Other Items .......................... C

October 1996 WT/DS57 United States Australia Textiles, Clothing and Footwear Import Credit Scheme .... S/I

October 1996 WT/DS58 India United States Import Prohibition of Certain Shrimp and Shrimp Products . C

October 1996 WT/DS61 Phillippines United States Import Prohibition of Certain Shrimp and Shrimp Products . PC

November 1996 WT/DS24 Costa Rica United States Restrictions on Imports of Cotton and Man-Made Fiber

 Underwear ..................................... C

November 1996 WT/DS63 European Community United States Anti-Dumping Measures on Imports of Solid Urea from the

 Former German Democratic Republic ................ PC

January 1997 WT/DS65 United States Brazil Certain Measures Affecting Trade and Investment in the

 Automotive Sector ............................... PC

February 1997 WT/DS62,67,68 United States European Community Customs Classification of Certain Computer Equipment ... C

April 1997 WT/DS74/1 United States Phillippines Measures Affecting Pork and Poultry .................. S/I

April 1997 WT/DS76/1 United States Japan Measures Affecting Agricultural Products ............... C
Table F-1--Continued

Status of World Trade Organization (WTO) dispute settlement cases involving the United States (as of June 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Case No. Complaintant(s) Respondent(s) Case title Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See notes at end of table.

April 1997 WT/DS78/1 Colombia United States Safeguard Measure Against Imports of Broom Corn 

 Brooms ....................................... PC

May 1997 WT/DS80 United States Belgium Measures Affecting Commercial Telephone Directory

 Services ...................................... PC

May 1997 WT/DS82/1 United States Ireland Measures Affecting the Grant of Copyright and Neighboring

 Rights ........................................ PC

May 1997 WT/DS83/1 United States Denmark Measures Affecting the Enforcement of Intellectual Property

 Rights ........................................ PC

May 1997 WT/DS84/1 United States Korea Taxes on Alcoholic Beverages ....................... C

May 1997 WT/DS85/1 European Community United States Measures Affecting Textiles and Apparel Products ........ S/I

May 1997 WT/DS86/1 United States Sweden Measures Affecting the Enforcement of Intellectual Property

 Rights ........................................ S/I

June 1997 WT/DS88/1 European Community United States Measure Affecting Government Procurement ............ S/I

July 1997 WT/DS89/1 Korea United States Anti-Dumping Duties on Imports of Colour Television

 Receivers from Korea ............................ S/I

July 1997 WT/DS90/1 United States India Quantitative Restrictions on Imports of Agricultural, Textile,

 and Industrial Products ........................... C

July 1997 WT/DS95/1 Japan United States Measure Affecting Government Procurement ............ S/I

August 1997 WT/DS97/1 Chile United States Countervailing Duty Investigation of Imports of Salmon from

 Chile ......................................... PC

August 1997 WT/DS99/1 Korea United States Anti-Dumping Duty on Dynamic Random Access Memory

 Semiconductors ................................ C

August 1997 WT/DS100/1 European Community United States Measures Affecting Imports of Poultry Products .......... PC

September 1997 WT/DS101/1 United States Mexico Anti-Dumping Investigation of High Fructose Corn Syrup ... PC

October 1997 WT/DS102/1 United States Phillippines Measures Affecting Pork and Poultry .................. S/I

October 1997 WT/DS103/1 United States Canada Measures Affecting the Importation of Milk and the

 Exportation of Dairy Products ...................... C

October 1997 WT/DS104/1 United States European Community Measures Affecting the Exportation of Processed Cheese . . PC

November 1997 WT/DS106/1 United States Australia Subsidies Provided to Producers and Exporters of

 Automotive Leather .............................. S/I
Table F-1--Continued

Status of World Trade Organization (WTO) dispute settlement cases involving the United States (as of June 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Case No. Complaintant(s) Respondent(s) Case title Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See notes at end of table.

November 1997 WT/DS108/1 European Community United States Tax Treatment for “Foreign Sales Corporations” ......... RA

December 1997 WT/DS109/1 United States Chile Taxes on Alcoholic Beverages ....................... PC

December 1997 WT/DS111/1 Argentina United States Tariff Rate Quota for Imports of Groundnuts ............ PC

January 1998 WT/DS115/1 United States European Community Measures Affecting the Grant of Copyright and Neighboring

 Rights ........................................ PC

February 1998 WT/DS118/1 European Community United States Harbour Maintenance Tax .......................... PC

April 1998 WT/DS124/1 United States European Community Enforcement of Intellectual Property Rights for Motion

 Pictures and Television Programs ................... PC

April 1998 WT/DS125/1 United States Greece Enforcement of Intellectual Property Rights for Motion

 Pictures and Television Programs ................... PC

May 1998 WT/DS126/1 United States Australia Subsidies Provided to Producers and Exporters of 

 Automotive Leather .............................. C

May 1998 WT/DS127/1 United States Belgium Certain Income Tax Measures Constituting Subsidies ..... PC

May 1998 WT/DS128/1 United States Netherlands Certain Income Tax Measures Constituting Subsidies ..... PC

May 1998 WT/DS129/1 United States Greece Certain Income Tax Measures Constituting Subsidies ..... PC

May 1998 WT/DS130/1 United States Ireland Certain Income Tax Measures Constituting Subsidies ..... PC

May 1998 WT/DS131/1 United States France Certain Income Tax Measures Constituting Subsidies ..... PC

May 1998 WT/DS132 United States Mexico Anti-Dumping Investigation of High-Fructose Corn Syrup ... RA

June 1998 WT/DS136 European Community United States Anti-Dumping Act of 1916 (1) ....................... A

June 1998 WT/DS138 European Community United States Imposition of Countervailing Duties on Certain Hot-rolled

 Lead and Bismuth Carbon Steel Products Originating in

 United Kingdom ................................. RA

September 1998 WT/DS144/1 Canada United States Certain Measures Affecting the Import of Cattle, Swine, and

 Grain from Canada .............................. PC

November 1998 WT/DS151/1 European Community United States Measures Affecting Textiles and Apparel Products ........ PC

November 1998 WT/DS152/1 European Community United States Sections 301-310 of the Trade Act of 1974 ............. RA

January 1999 WT/DS160/1 European Community United States Section 110(5) of the U.S. Copyright Act ............... RI
Table F-1--Continued

Status of World Trade Organization (WTO) dispute settlement cases involving the United States (as of June 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Case No. Complaintant(s) Respondent(s) Case title Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

See notes at end of table.

February 1999 WT/DS161/1 United States Korea Measures Affecting Imports of Fresh, Chilled, and Frozen

 Beef ......................................... AP

February 1999 WT/DS162/1 Japan United States Anti-Dumping Act of 1916 (II) ....................... A

February 1999 WT/DS163/1 United States Korea Measures Affecting Government Procurement ........... RA

March 1999 WT/DS164/1 United States Argentina Measures Affecting Imports of Footwear ............... AP

March 1999 WT/DS165/1 European Community United States Import Measure on Certain Products from the European

 Communities ................................... AP

March 1999 WT/DS166/1 European Community United States Definitive Safeguard Measure on Imports of Wheat Gluten

 from the European Communities .................... AP

March 1999 WT/DS167/1 Canada United States Countervailing Duty Investigation with respect to Live Cattle

 from Canada ................................... PC

May 1999 WT/DS170/1 United States Canada Patent Protection Term ............................ A

May 1999 WT/DS171/1 United States Argentina Patent Protection for Pharmaceuticals and Test Data

 Protection for Agricultural Chemicals ................. PC

May 1999 WT/DS172/1 United States European Community Measures Relating to the Development of a Flight

 Management System ............................. PC

May 1999 WT/DS173/1 United States France Measure Relating to the Development of a Flight

 Management System ............................. PC

May 1999 WT/DS175/1 United States India Measures Relating to Trade and Investment in the Motor

 Vehicle Sector .................................. PC

June 1999 WT/DS174/1 United States European Community Protection of Trademarks and Geographical Indications for

 Agricultural Products and Foodstuffs ................. PC

July 1999 WT/DS176/1 European Community United States Section 211 Omnibus Appropriations Act ............... PC

July 1999 WT/DS177/1 New Zealand United States Safeguard Measure on Imports of Fresh, Chilled or Frozen

 Lamb from New Zealand .......................... AP

July 1999 WT/DS178/1 Australia United States Safeguard Measure on Imports of Lamb Meat from

 Australia ...................................... AP

July 1999 WT/DS179 Korea United States Anti-Dumping Measure on Stainless Steel Plate in Coils

 and Stainless Steel Sheet and Strip from Korea ......... AP

September 1999 WT/DS180/1 Canada United States Reclassification of Certain Sugar Syrups ............... PC

November 1999 WT/DS184/1 Japan United States Anti-Dumping Measures on Certain Hot-Rolled Steel
Table F-1--Continued

Status of World Trade Organization (WTO) dispute settlement cases involving the United States (as of June 2000)

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

Month and year

of initiation Case No. Complaintant(s) Respondent(s) Case title Status1

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 Products from Japan ............................. AP

January 2000 WT/DS186/1 European Community United States Section 337 of the Tariff Act of 1930 and Amendments

 Thereto ....................................... PC

April 2000 WT/DS192/1 Pakistan United States Transitional Safeguard Measure on Combed Cotton Yarn

 from Pakistan .................................. AP

May 2000 WT/DS194/1 Canada United States Measures Treating Export Restraints As Subsidies ....... PC

May 2000 WT/DS195/1 United States Phillippines Measures Affecting Trade and Investment in the Motor

 Vehicle Sector .................................. PC

May 2000 WT/DS196/1 United States Argentina Certain Measures on the Protection of Patents and Test 

 Data ......................................... PC

May 2000 WT/DS197/1 United States Brazil Measures on Minimum Import Prices .................. PC

May 2000 WT/DS198/1 United States Romania Measures on Minimum Import Prices .................. PC

May 2000 WT/DS199/1 United States Brazil Measures Affecting Patent Protection ................. PC

June 2000 WT/DS200/1 European Community United States Section 306 of the Trade Act of 1974 and Amendments 

 Thereto ....................................... PC

June 2000 WT/DS202/1 Korea United States Definitive Safeguard Measures on Imports of Circular

 Welded Carbon Quality Line Pipe from Korea .......... PC ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

 

1

 Status codes:

RA .... Report appealed

A ...... Appellate Body reports issued/Panel reports appealed

RI ..... Panel reports issued

AP ..... Active panels

PC ..... Pending consultations

C ...... Completed cases

CR .... Completed cases--retaliation authorized, in the process of implementation

S/I ..... Settled or inactive

Source: Compiled by USITC staff from World Trade Organization (WTO) Secretariat, Overview of the State-of-Play of WTO Disputes, (Geneva: WTO Secretariat, June 22, 2000).
,,,,,,,,,,,,,,,,

APPENDIX G

Background on Exchange

Rate Shifts

 

1

 For a more detailed discussion, see Charles Yost, “Background on Exchange Rate Shifts,” Shifts in U.S.

Merchandise Trade in 1998, Investigation No. 332-340, USITC, publication 3220, Aug. 1999, pp. F-1 through 

F-20.

 

2

 The terms “revaluation” and “devaluation” often are, but should not be, used interchangeably with

“appreciation” and “depreciation,” respectively; economists apply the terms “revaluation” and “devaluation” to

fixed exchange-rate regimes and “appreciation” and “depreciation” to flexible exchange-rate regimes. 

 

3

 Nominal rates are reported on the financial pages of major newspapers and are distinguished from real

(inflation-adjusted) exchange rates discussed later.

G-3

BACKGROUND ON EXCHANGE RATE SHIFTS

Introduction

This appendix provides a general background on exchange rates, and describes their interactions

with trade flows. More specifically, it discusses the general behavior of the U.S. dollar relative to foreign

currencies during the period 1995-99, and the relationship of exchange rate changes to recent trends in U.S.

exports and imports.

The appendix is divided into three sections. The first section provides a brief overview of exchange

rates and the relationship between exchange rates and trade flows. The second section shows nominal

exchange rates against the dollar on an annual basis during 1995-99 for selected individual countries and

shows nominal and real exchange rate indexes for selected country groups. Exchange rate movements and

policy actions by monetary authorities in 1999 also are discussed in the section, with an emphasis on the

appreciation of the Japanese yen and the depreciation of the euro. The third section examines the

consideration of dollarization programs by selected countries.

Exchange Rate Determinants and Trade1

An exchange rate is simply the number of units of a country’s currency exchangeable for one unit

of another country’s currency. A country’s currency “appreciates” when its value increases relative to a

foreign currency, i.e., one unit of its currency purchases more units of the foreign currency. Likewise a

country’s currency “depreciates” when its value decreases relative to a foreign currency; i.e., one unit of its

currency purchases fewer units of the foreign currency.2 For example, if 1 U.S. dollar is worth (can

purchase) 100 Japanese yen at the beginning of a period, but can purchase 150 yen at the end of the period,

the dollar has risen in value (has appreciated) because it can purchase more yen. Alternatively, in dollar

terms, the yen is said to have depreciated from $0.0100 to $0.0067.

Under a system of flexible or floating exchange rates, market or “nominal” exchange rates3 of

freely convertible currencies are determined by the demand for, and the supply of, the domestic currency in

the foreign exchange market, derived from international transactions of goods, services, assets, and

financial instruments. The demand for foreign currencies is influenced by the same forces that influence

demand for domestic currency. Foreign demand for U.S. dollars is based on other countries’ purchases of

U.S. goods and services, investments in the United States, and the holding of dollar balances. Likewise, the

supply of U.S. dollars outside the United States is based on U.S. citizens’ purchases of foreign goods and

services, investments abroad, and the holding of balances in foreign currencies. 

Exchange rate shifts can significantly affect trade flows because they change the relative prices of

goods and services, assuming all other factors remain unchanged. A foreign currency depreciation (U.S.

dollar appreciation) would raise the relative price of U.S. goods in foreign markets, thus discouraging U.S.

exports and likewise lower the relative price of foreign goods in the U.S. market, thus encouraging U.S.
 

4

 Although this discussion has focused on merchandise trade, exchange rate changes also affect international

capital flows by affecting the present value of cash flows from capital investments and purchases of foreign

intangible assets. 

 

5

 Benefits include the convenience factor enabling exporters, importers, borrowers, and lenders to deal in their

own currency; increased business for U.S. banks and other financial institutions; and, the ability to borrow in

international capital markets in their home currency. Council of Economic Advisors (CEA), Economic Report of

the President, together with the Annual Report of the Council of Economic Advisors, Feb. 2000, pp. 299-300.

 

6

 See ch. 3 for more details about these countries’ economic recoveries.

 

7

 The broad index of the Federal Reserve Board is a weighted average of the foreign exchange values of the

U.S. dollar against the currencies of a group of 35 currencies until Jan.1, 1999, when the euro replaced the 11

euro-area countries. The index weights, which change over time, are derived from U.S. export shares and from

U.S. and foreign import shares.

 

8

 The dollar depreciated slightly on a real basis from 99.35 in 1998 to 98.87 in 1999 for this broad index on a

different base, with 1973=100.

G-4

imports. The converse also is true when the dollar depreciates.4 If the value of the U.S. dollar rises

(appreciates), the price competitiveness of U.S. merchandise falls in foreign markets and the price

competitiveness of foreign merchandise rises in the U.S. market.

A significant source of uncertainty in conducting international trade arises from exchange rate

fluctuations as the relative value between the buyer’s and the seller’s currencies may change between the

 time a transaction is concluded and the time payment is received, posing a gain to one and a loss to the

other party involved in the transaction (absent hedging by either party). There are several ways to reduce or

transfer the risk of an adverse price change. One of the simplest is for an exporter/importer to quote prices

and establish payment terms in one’s own currency, thus placing the burden and risk on the other party.

This is a practical approach when one’s own currency is freely convertible and stable. U.S. companies

derive a number of benefits from the fact that the U.S. dollar is the premier international currency for both

international trade and financial transactions.5

Changes in the Nominal and Real Value of the Dollar

Nominal exchange rates of selected foreign currencies against the U.S. dollar on an annual basis

during 1995-99 are shown in table G-1. Only the Canadian dollar, Chinese yuan, and British pound were

relatively little changed over the past 5 years. Compared to other major industrialized trade partners in

1999, the dollar appreciated significantly against the euro in its first year of operation, but depreciated

substantially against the Japanese yen. In contrast, the Korean won, Malaysian ringgit, Mexican peso, and

Thai baht all depreciated by approximately 50 percent over the 5-year period, whereas the Brazilian real

lost one-half its value in 1999 alone. Appreciation of the Thai and Korean currencies in 1999 compared to

the previous year largely reflects the progress towards economic recovery from the Asian financial crisis.6

The average foreign exchange value of the U.S. dollar against a broad group of 35 major trade

partners’ currencies was little changed in 1999 compared to the previous year (table G-2)7 as the U.S.

dollar appreciated only slightly, on a nominal basis, from 116.48 in 1998 to 116.87 in 1999.8 Offsetting

pressures on the dollar were largely responsible for this pattern; continued strong growth of the U.S.

economy relative to foreign economies supported the dollar, whereas continuing increases in U.S. 
G-5

Table G-1

Nominal exchange rates for selected trade partners, annual averages

Country (currency) 1995 1996 1997 1998 1999

 Exchange rate (foreign currency per U.S. dollar, except as noted)

1

Brazil (real) .................. 0.9162 1.0051 1.0779 1.1605 1.8207

Canada (dollar) ............... 1.3725 1.3638 1.3849 1.4836 1.4858

China (yuan) ................. 8.3700 8.3389 8.3193 8.3008 8.2781

Germany (deutsche mark) ....... 1.4321 1.5049 1.7348 1.7597 (

2

)

Japan (yen) .................. 93.96 108.78 121.06 130.99 113.73

Korea (won) .................. 772.69 805.00 947.65 1,400.40 1,189.84

Malaysia (ringgit) .............. 2.5073 2.5154 2.8173 3.9254 3.8000

Mexico (peso) ................ 6.447 7.600 7.918 9.152 9.553

Thailand (baht) ............... 24.921 25.359 31.072 41.262 37.887

United Kingdom (pound3) ........ 1.5785 1.5607 1.6376 1.6573 1.6172

 Change over the preceding period (percent)

Brazil (real) .................. (

2

) 9.7 7.2 7.7 56.9 

Canada (dollar) ............... (

4

) -0.1 1.5 7.1 (

4

)

China (yuan) ................. -3.1 (

4

) (

4

) (

4

) (

4

)

Germany (deutsche mark) ....... 6.9 1.4 -1.4 1.4 (

2

)

Japan (yen) .................. -8.0 15.8 11.3 8.2 -13.2

Korea (won) .................. -4.2 4.2 17.7 47.8 -15.0

Malaysia (ringgit) .............. -4.4 (

3

) 12.0 39.3 -3.2

Mexico (peso) ................ (

2

) 17.9 4.2 15.6 4.4

Thailand (baht) ............... -1.0 1.8 22.5 32.8 -8.2

United Kingdom (pound2) ........ 3.0 -1.1 4.9 1.2 -2.4

 

1

 Each country’s currency is displayed to the number of decimal places as reported in the reference source,

rather than being rounded to a common decimal place, to avoid any loss of significant digits for particular

currencies.

 

2

 Not available.

 

3

 U.S. dollars per pound.

 

4

 Less than 0.1 percent.

Source: Board of Governors of the Federal Reserve System, Federal Reserve Bulletin, (various months) 1999-2000.
G-6

Table G-2

Nominal and real weighted average indexes of foreign exchange value of the U.S. dollar versus currencies

of groups of trade partners, annual averages

Index (base period = 100) 1995 1996 1997 1998 1999

Nominal

Broad1 (Jan. 1997=100) ....................... 92.52 97.40 104.44 116.48 116.87

Major currencies2 (Mar. 1973=100) .............. 81.39 84.60 91.24 95.79 94.07

Other important trading partners3 (Jan. 1997=100) ... 92.51 98.26 104.67 126.03 129.94

 Nominal change over the preceding period (percent)

Broad1 (Jan. 1997=100) ....................... (

4

) 5.3 7.2 11.5 (

5

)

Major currencies2 (Mar. 1973=100) .............. (

4

) 3.9 7.8 5.0 -1.8

Other important trading partners3 (Jan. 1997=100) ... (

4

) 6.2 6.5 20.4 3.1 

Real

Broad1 (Mar. 1973=100) ....................... 83.95 86.72 91.33 99.36 98.76

Major currencies2 (Mar. 1973=100) .............. 80.78 84.95 92.25 97.25 96.75

Other important trading partners3 (Mar. 1973=100) . . 109.80 94.69 95.87 108.52 107.74

 Real change over the preceding period (percent)

Broad1 (Mar. 1973=100) ....................... (

4

) 3.3 5.3 8.8 -0.1

Major currencies2 (Mar. 1973=100) .............. (

4

) 5.2 8.6 5.4 -0.1

Other important trading partners3 (Mar. 1973=100) . . (

4

) -13.8 1.2 13.2 -0.1

 

1

 Trade-weighted average of the foreign exchange value of the U.S. dollar against the currencies of a broad

group of U.S. trade partners. The weight for each currency is computed as an average of U.S. bilateral import

shares from and export shares to the issuing partner and of a measure of the importance to U.S. exporters of that

partner’s trade in third-party markets. The broad index consists of 26 currencies (35 before the introduction of euro

on Jan. 1, 1999) of both the major currencies index and other important trading partners index.

 

2

 Trade-weighted average of the foreign exchange value of the U.S. dollar against a subset of broad index

currencies that circulate widely outside the issuing partner’s economy. The weight for each currency is its broad

index weight scaled so that the weights of the subset of currencies in the index sum to one. The major currencies

index consists of 7 currencies (16 before the introduction of the euro on Jan. 1, 1999): euro-area countries (Austria,

Belgium-Luxembourg (treated as a single currency), Finland, France, Germany, Ireland, Italy, the Netherlands,

Portugal, and Spain) and Australia, Canada, Japan, Sweden, Switzerland, and the United Kingdom.

 

3

 Trade-weighted average of the foreign exchange value of the U.S. dollar against a subset of broad index

currencies that do not circulate widely outside the issuing partner’s economy. The weight for each currency is its

broad index weight scaled so that the weights of the subset of currencies in the index sum to one. The other

important trading partners index consists of 19 currencies: Argentina, Brazil, Chile, China, Colombia, Hong Kong,

India, Indonesia, Israel, Korea, Malaysia, Mexico, the Philippines, Singapore, Taiwan, Thailand, Russia, Saudi

Arabia, and Venezuela.

 

4

 Not applicable.

 

5

 Less than 0.1 percent.

Source: Board of Governors of the Federal Reserve System, Federal Reserve Bulletin, (various months) 1999-2000.
 

9

 Board of Governors of the Federal Reserve System (Fed. Res. Board), Monetary Policy Report, Feb. 17, 2000,

p. 28. 

 

10 Ibid.

 

11 Fed. Res. Board, Federal Reserve Bulletin, (various months) 1999-2000.

 

12 Fed. Res. Bank of New York, Treasury and Federal Reserve Foreign Exchange Operations, Jan.-Mar. 1999,

p. 1.

G-7

external deficits may have held down the dollar because of investor concerns that the associated strong net

demand for dollar assets might prove unsustainable.9

Yen appreciation

The Japanese yen had depreciated significantly against the dollar during 1995-98, falling 39 percent to

¥130.99 in 1998 (table G-1). However, in 1999 the yen appreciated 13 percent on balance against the

dollar, due to a combination of more favorable than anticipated growth, trade and current account balance

reports, portfolio flows, and Bank of Japan intervention in the foreign exchange markets.10 The following

tabulation highlights the yen-dollar exchange rate in 1999:11

Time frame Exchange rate

(yen per dollar)

Beginning of year .................... 112.80

End of year ........................ 102.16

Low (May 19) ...................... 124.45

High (December 22) .................. 101.53

First quarter (average) ................ 116.48

Second quarter (average) .............. 120.83

Third quarter (average) ................ 113.15

Fourth quarter (average) ............... 104.40

At the beginning of the year, the yen traded at ¥112.80 to the dollar, but soon appreciated to a multi-year

high to date of ¥108.22 to the dollar on January 11 as Japanese investors reallocated funds from U.S. to

European and Japanese assets.12 However, the next day, the dollar gained back the previous day’s loss as

the Bank of Japan reportedly intervened in the foreign exchange market as a sign of resistance to yen

appreciation below ¥110 per dollar.

The dollar subsequently traded in the ¥110-117 range, amidst commentary from Japanese officials

against excessive strength of the yen and continued disparity between U.S. and Japanese economic growth.

The dollar began to appreciate steadily against the yen through early March 1999, attributed to a

combination of factors, including action by the Bank of Japan to guide the overnight call rate to as low as 2

basis points, growing expectation of a shift to monetary targeting in Japan, official efforts to contain the

rapid rise in Japanese bond yields, and signs of persistent strength in the U.S. economy. The dollar reached

a quarterly high of ¥123.75 on March 4, before drifting back to ¥118.80. During the second quarter 1999,

the dollar was largely unchanged against the yen.

In third quarter 1999, the dollar depreciated 12.1 percent against the yen, a reflection of more

balanced growth among the world’s major economies. Substantial appreciation of the yen was accompanied

by sizable portfolio in-flows as investors reacted to less favorable risk-adjusted returns in global capital
 

13 Ibid., July-Sept. 1999, pp. 1, and 6-7.

 

14 Ibid., p. 2.

 

15 Ibid., p. 6.

 

16 Ibid., Oct.-Dec. 1999, p. 1.

 

17 Official statistics of the Fed. Res. Board.

 

18 The 11 EU countries of the euro area are Austria, Belgium, Finland, France, Germany, Ireland, Italy,

Luxembourg, Netherlands, Portugal, and Spain.

 

19 Alan C. Shapiro, Multinational Financial Management, (Upper Saddle, NJ: Prentice-Hall, 1999), p. 100,

citing an European Commission report.

 

20 See Yost, “Background on Exchange Rate Shifts.”

 

21 Fed. Res. Board, Federal Reserve Bulletin, (various months) 1999-2000.

G-8

markets in favor of Japanese assets.13 Surprisingly strong Japanese economic growth reports also boosted

the yen. Growth of gross domestic product (GDP) in first quarter 1999 was revised upward to a rate of 2.0

percent over growth in fourth quarter 1998 and growth in the second quarter was a surprisingly positive

rate of 0.2 percent when investors and market analysts had expected a contraction.14 In its September 21

meeting the Bank of Japan’s Policy Board decided to maintain its zero interest-rate policy, and the

Governor of the Bank of Japan issued a statement that the Bank shared the Japanese Government’s concern

about yen appreciation.15 Hence, on several occasions during third quarter 1999, the Bank of Japan bought

dollars and sold yen in foreign exchange markets to restrain yen appreciation.

The yen rose steadily during fourth quarter 1999 to a 4-year high of ¥101.53 against the dollar, at

a time of continued perceptions of improvement in Japan’s economy, capital flows into Japanese assets, but

uncertainty regarding additional stimulus by the Bank of Japan. Authorities confirmed several more

Japanese interventions in the foreign exchange markets.16 Reflecting growing confidence that Japan’s

economic cycle was turning up, foreign investors increased their direct and portfolio investments in Japan.

Foreign direct investment increased to ¥1.3 trillion in the first half of 1999, twice the amount for all of

1998. As the yen’s continued appreciation reduced the value of foreign assets for Japanese investors,

hedging or liquidation of these positions was encouraged. Repatriated capital created additional demand for

yen. The value of the yen closed out the year at ¥102.16.17

Euro depreciation

The euro was formally inaugurated on January 1, 1999, as a composite of the currencies of the 11

European Union (EU) countries18 that opted to join the European Economic and Monetary Union (EMU).

The benefits of EMU are those of any single currency within a single market (and may accelerate the

development of a single market in Europe), and also include lower cross-border currency conversion costs,

estimated by the European Commission at more than $13 billion per year.19 The euro should foster new

investment opportunities because a single currency may lead to added depth, liquidity, and enhance the

financial infrastructure of a consolidated Europe.20 The following tabulation highlights the euro-dollar

exchange rate in 1999:21
 

22 European Commission, “Official ECU Exchange Rates Calculated and Published by the European

Commission,” found at Internet address, http://www.europa.eu.int/comm/economy_finance/xecud.htm, retrieved

Aug. 4, 2000.

 

23 Fed. Res. Bank of New York, Treasury and Federal Reserve Foreign Exchange Operations, Jan.-Mar. 1999,

p. 1.

 

24 Mark A. Wynne, Global Economy, “The Dollar-Euro Exchange Rate-So Far,” Fed. Res. Bank of Dallas, p. 1,

found at Internet address http://www.dallasfed.org/htm/eyi/global.html, retrieved May 10, 2000. The euro

subsequently closed below parity on Jan. 27, 2000, and on May 3, 2000, was valued at 0.8891dollars. Official

statistics of the Fed. Res. Board.

 

25 Mark A. Wynne, “EMU at 1,” Economic and Financial Review, First Quarter 2000, Fed. Res. Bank of

Dallas, p. 14. 

 

26 Wynne, “The Dollar-Euro Exchange Rate-So Far,” p. 1.

 

27 Ibid., p. 2.

 

28 Fed. Res. Board, Monetary Policy Report, Section 1, Feb. 17, 2000, p. 29

G-9

Time frame Exchange rate

(dollars per euro)

Beginning of year .................... 1.1668

End of year ........................ 1.0070

Low (December 3) ................... 1.0016

High (January 4) .................... 1.1812

First quarter (average) ................ 1.1227

Second quarter (average) .............. 1.0569

Third quarter (average) ................ 1.0491

Fourth quarter (average) ............... 1.0381

The value of the euro at its creation was just under $1.166822 and on the first day of trading its

value moved higher. However, it soon began to weaken against the dollar amidst indications of slow

economic growth in the euro-area. The dollar also strengthened as the differential between U.S. and

European interest rates moved in favor of the dollar.23 The euro approached parity with the dollar in early

July and then rebounded, partly on signs of European recovery. However, the euro weakened again in the

fall and approached parity with the dollar (and briefly below in intra-day trading) in December.24 Portfolio

outflows contributed to the continued depreciation of the euro. On balance, the dollar appreciated by 16

percent relative to the euro over full-year 1999. Although the euro’s foreign exchange value weakened, the

volume of euro-denominated transactions expanded rapidly, especially of debt securities. The volume of

international bonds denominated in euros exceeded dollar-denominated issuance during 1999.25

The depreciation of the euro surprised many commentators, who had expected rapid appreciation

of the euro because of the relative current account positions of the United States and the euro area.26

Instead, the euro area experienced a growth setback in 1999, whereas the U.S. economy experienced

continued rapid growth. GDP in the euro area had increased by 2.3 percent through third quarter 1999, but

subsequently, the European Commission forecast an increase of only 2.1 percent for the full year.27

Unemployment remained high in the euro area at 9.6 percent by the end of 1999, whereas the United States

enjoyed unemployment of less than 5 percent. Productivity growth was accelerating in the United States,

whereas there were few signs of much-needed structural reforms in Continental Europe, and political

resistance was developing to a proposed withholding tax on investment income.28
 

29 For a definition of exchange convertibility and restrictions on convertibility, by country, see International

Monetary Fund (IMF), Exchange Arrangements and Exchange Restrictions, Annual Report 1999, (Washington,

DC: IMF, Aug. 27, 2000).

 

30 Foreign exchange market intervention consists of the official purchases and sales of foreign exchange that

nations undertake through their central banks to influence the values of their currencies. Yost, “Background on

Exchange Rate Shifts.”

 

31 For a description of the five types of arrangements for exchange rates, each of which represents efforts by the

central bank to stabilize the country’s exchange rate against those of its trade partners, see IMF, Exchange

Arrangements and Exchange Restrictions, Annual Report 1999, Appendix 1. Also, for a chart of exchange rate

arrangements, see IMF, International Financial Statistics, monthly series, p. 8. 

 

32 The mark and the yen have been the only two currencies in which the United States has conducted its

intervention operations.

 

33 Fed. Res. Bank of New York, Treasury and Federal Reserve Foreign Exchange Operations, Apr.-June 1999,

p. 1.

 

34 Those allowing their currency’s exchange value to float freely include Canada, Japan, Korea, Mexico,

Singapore, and Taiwan

G-10

Exchange Rate Stability and Convertibility

Exchange rates are dependent not only on basic economic factors, but also on a wide range of

policy factors, including domestic monetary and fiscal policies, independence of the country’s central bank,

exchange controls and openness of its capital market,29 and arrangements for payments and receipts. Also

important is the government’s intervention policy, reflecting its desire to maintain exchange rate stability,30

and the country’s exchange rate arrangements, the mechanisms by which the exchange rate is established,

which range from market-determined exchange rates (freely floating exchange rates or clean float) to fixed

rate systems.31 The U.S. dollar is classified as “independently floating.”

Most governments also periodically intervene in order to stabilize disorderly foreign exchange

markets, and to ensure that their capital markets are insulated from external exchange rate crises that may

escalate into banking and general financial crises. U.S. authorities purchase dollars from time to time to

resist downward pressure on the dollar exchange rate and occasionally sell dollars to resist strong upward

pressure. The United States undertook no dollar intervention operations from mid-1995 until mid-1998.

During 1998, U.S. monetary authorities intervened in the foreign exchange markets on one occasion, on

June 17, selling a total of $833 million and buying Japanese yen.32 The U.S. monetary authorities did not

intervene in the foreign exchange markets during 1999.33

Most of the leading U.S. trade partners maintain floating exchange rates, and their central banks

intervene selectively or not at all.34 Several others do not, preferring instead to maintain an organized

floating exchange rate, or managed float. For example, the People’s Bank of China announces a reference

rate against the U.S. dollar, the Hong Kong dollar, and Japanese yen based on the weighted-average price

of foreign exchange transactions on the previous day. This reference rate is then used to establish the

current day’s maximum trading limits in the interbank foreign exchange market. The central banks of

several others have announced their intentions to intervene should they consider market conditions

disorderly or if their currency’s foreign exchange value fluctuates beyond a stated range of parity against

other currencies or a basket of currencies.
 

35 For a more detailed discussion, see also Thomas Jennings, “Dollarization: A Primer,” International

Economic Review, USITC publication 3298, Apr./May 2000.

 

36 After adoption of the euro this year, some have suggested that Canada should adopt the U.S. dollar. Andrew

Berg and Eduardo Borensztein, “The Dollarization Debate, Finance and Development, IMF, vol. 37, No. 1, p. 38,

found at Internet address http://www.imf.org/external/pubs/ft/fandd/2000/03/berg.htm, retrieved May 10, 2000.

According to the Fed. Res. Bank of Dallas, there was a very heated debate on this suggestion at this year’s

meetings of the Canadian Economics Association. See “What is Dollarization?” found at Internet address

http://www.dallasfed.org/htm/eyi/money/html, retrieved May 10, 2000.

 

37 Fed. Res. Bank of Dallas, “Dollarization: The Greenback Goes Global,” found at Internet address

http://www.dallasfed.org/htm/eyi/money.html, retrieved May 10, 2000.

 

38 Kurt Schuler, Basics of Dollarization, Joint Economic Committee Staff Report, U.S. Congress, Jan. 2000,

p. 3.

G-11

Dollarization35

The adoption of a common currency with a strong monetary regime, such as the euro, has some

interesting parallels with another monetary phenomenon--“dollarization”36 This is a program in which a

country officially or unofficially uses a foreign currency (in this case the U.S. dollar) as its domestic

currency or as a medium of account alongside a domestic currency. For example, an estimated 85 percent

of the value of all bank accounts in Peru, 75 percent in Uruguay, and 65 percent in Argentina are held in

U.S. dollars.37 More than one-half of all U.S. Federal Reserve notes, mainly $100 bills, are believed to be

held abroad by foreigners.38 There are 29 countries or dependent territories that officially use a foreign

currency (table G-3):

Table G-3

Some countries and territories that officially adopted other currencies as of January 2000

Currency adopted Country or territory

U.S. dollar .................. East Timor, Guam, Marshall Islands, Micronesia, Northern Mariana Islands,

Palau, Panama, Pitcairn Island, Puerto Rico, American Samoa, Turks and

Caicos Islands, Virgin Islands

Australian dollar .............. Cocos Islands, Kiribati, Nauru, Norfolk Island, Tuvalu

New Zealand dollar ........... Cook Islands, Niue, Pitcairn Island, Tokelau

French franc ................ Andorra, Monaco

Italian lira .................. San Marino, Vatican City

Spanish peseta .............. Andorra

Turkish lira ................. Northern Cyprus

Danish krone ................ Greenland

Swiss franc ................. Liechtenstein

British pound ................ Saint Helena

Source: Kurt Schuler, Table 2, Basics of Dollarization, Joint Economic Committee Staff Report, U.S. Congress,

Jan. 2000, p. 5.
 

39 Sidney Weintraub, “The Dollarization Debate,” Issues in International Political Economy, Center for

Strategic and International Studies, No. 2, Feb. 2000, p. 1.

 

40 Jeffrey A. Frankel, “Dollarization: Fad or Future for Latin America,” IMF Economic Forum, June 24, 1999,

p. 3.

 

41 David Hale argues that developing countries largely dependent on commodity trade should not choose the

U.S. dollar as a monetary base, but instead opt for a stable currency more in line with their own requirements, such

as the Australian dollar. David D. Hale, “Should Argentina Dollarize? No Way,” The International Economy,

May/June 1999, p. 58. 

 

42 The central bank can arrange for lines of credit from foreign sources, or branches of foreign banks can

provide this liquidity. Studies have suggested that this loss may even be a benefit as dollarized countries have on

occasion had system-wide problems that were weathered at less taxpayer expense than countries with central

banks. Schuler, Basics of Dollarization, p. 15.

 

43 Philipp Hilderrand and Klaus Regling, “Should Argentina Dollarize? Absolutely,” The International

Economy, May/June 1999, p. 56.

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In today’s modern, globalized, high-volume financial markets, currency speculation has made the

old system of managed float problematic, especially for smaller countries. Even a large country, such as

Brazil in early 1999, was forced to devalue its currency in the face of financial crisis. Moreover, Brazil’s

devaluation had a large adverse effect on neighboring Argentina, one of its largest trade partners.39

Argentina’s response was to consider dollarization, which would have imposed an even more rigid

exchange rate system than its existing currency board with a fixed exchange rate to the dollar. When

Ecuador’s economy imploded in 1999, its President also proposed official dollarization.

The primary attraction of dollarization is one of confidence. Under official dollarization, all values

are converted to a dollar basis. The entire monetary accounting system (e.g., debts, assets, contracts, etc.,)

is converted to the U.S. dollar. As the premier international monetary asset, the dollar assures currency

stability, at least more so than most other national currencies. Adoption of the dollar fixes the exchange

rate, which provides two principal advantages: the reduction of transactions costs and risks which together

discourage trade and investment, and the establishment of a credible anchor for monetary policy.40 Risk

premiums and historical tendencies toward inflation are reduced or eliminated, and fiscal policy discipline

is encouraged. The central bank can no longer print money to finance monetary policies that may lead to

inflation.

However, the loss of monetary autonomy is one of the principal down sides of dollarization

because it also means a loss of an independent monetary policy. If the U.S. dollar is the adopted foreign

currency, then the monetary policy of the United States will be the norm.41 There is also the loss of the

central bank’s function as a lender of last resort. In a monetary crisis, the central bank cannot as easily

obtain sufficient funds to rescue domestic commercial banks.42 Profits from seigniorage, the difference

between the cost of printing currency and its face value, would be lost; any such profits would be gained by

the United States, which produces more currency to satisfy currency demand in the affected country.

Moreover, there is also a potential loss of national pride or prestige as domestic currency often reflects the

national character in portraits of famous people, events, monuments, etc.

The recent public interest in dollarization arose in large part due to the economic crises confronting

Argentina and Ecuador. According to some observers, and contrary to popular perception, the dollarization

of the Argentine economy was not an opportunistic response to the financial crisis in Brazil.43 Argentine

monetary authorities had been working on their plan for over a year with the view that if market pressure

ever became too strong they would go beyond their currency board to full dollarization. According to the
 

44 IMF, “Press Conference On Exchange Rate Regimes in an Increasingly Integrated World Economy, Friday,

Apr. 14, 2000,” [Partial Transcript], IMF Research Department, found at Internet address

http://www.imf.org/external/np/tr/2000/TR000414.HTM, retrieved May 25, 2000.

 

45 IMF, “IMF Approves Stand-By Credit for Ecuador,” press release No. 00/32, Apr. 19, 2000, found at Internet

address http://www.imf.org/external/np/sec/pr/2000/PR0032.HTM, retrieved May 25, 2000.

 

46 Ibid.

 

47 IMF, “Memorandum of Economic Policies of the Government of Ecuador for 2000,” Apr. 4, 2000, found at

Internet address http://www.imf.org/external/np/loi/2000/ecu/01/index.htm, retrieved May 25, 2000.

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International Monetary Fund (IMF), currently, Argentina’s monetary and fiscal policies are successfully

maintaining the currency peg along with a well-capitalized banking system.44

Ecuador’s economic situation deteriorated in 1997-98, and it plunged into a general economic

crisis in 1999. Real GDP had stagnated, but then fell by 8 percent in 1999, the unemployment rate almost

doubled to 17 percent, and annual inflation in consumer prices was 90 percent in early 2000.45 The

President of Ecuador proposed official dollarization at 25,000 sucres per U.S. dollar, but was forced from

office. The subsequent administration has decided to continue with the dollarization program as proposed,

and along with a 12-month stand-by credit worth approximately $305 million U.S. dollars from the IMF.

The IMF indicates that it appears that confidence is returning,46 as interest rates have sharply declined, and

there has been a net inflow of deposits into banks since the dollarization announcement. However,

dollarization itself will not assure success; significant fiscal, structural, and social reforms will be

necessary for economic success.47

Robert Hughes

(202) 205-3296

rhughes@usitc.gov