1997 data show record U.S. exports, large increase in imports.

Longer-term figures reveal steady worldwide growth for U.S. producers.

According to data supplied to INDA, Association of the Nonwoven Fabrics Industry by the U.S. Customs Service, U.S. exports of nonwoven roll goods increased by nearly 17% in 1997, reaching a record 123 million kilograms (kg) shipped in a single year. Over the past five years, in fact, U.S. exports have grown by more than 56% (from 78.5 million kg in 1993) and have been sent to more and more destinations (Table 1). In 1993, for instance, U.S. exports were shipped to 75 different countries. But last year, 98 different countries received U.S.-produced roll goods - a 31% increase in destinations over the past five years. This clearly shows growing worldwide demand for U.S.-produced nonwovens.

Table 1

U.S. TRADE IN NONWOVEN ROLL GOODS, 1993-1997 (millions, kg)

              1993       1994       1995        1996        1997

Exports       78.5       81.1       89.4       105.5       123.0
Imports      39.96       39.8       35.7        40.6        59.6

Yet as good as the export news is, it must be tempered with the realization that imports to the U.S. made a tremendous jump in 1997, increasing from 40.1 million kg in 1996 to 59.6 million kg last year, a growth rate of nearly 47%. This is particularly dramatic when compared to longer-term trends that reveal much lower increases in U.S. imports on a year-to-year basis from 1993-1997. In 1993, for instance, 39.96 million kg of foreign-produced roll goods were sent to the U.S. This dropped slightly in 1994 to 39.8 million kg, then dropped again in 1995 to 35.7 million kg. Imports to the U.S. rebounded somewhat in 1996, climbing to 40.1 million kg (about the same as they were in 1993) before the big boost in 1997.

Foreign Markets

In 1993, nearly 60% of all U.S.exported nonwoven roll goods remained in North America. Canada received about 31% (24.5 million kg), and Mexico took about 26% (20.1 million kg). While Canada and Mexico continue to be the largest markets for U.S.-exported roll goods, their percentage shares have been declining on a steady course, more or less, over the past five years, falling from 57.6% of the total U.S. export market in 1993 to 45.5% in 1997.

Indeed, the percentage of U.S. roll goods shipped to countries throughout the entire Western Hemisphere has been shrinking. In 1993, for example, 61.3% (48.1 million kg) of all exported nonwovens from the U.S. went to various countries within the Western Hemisphere. But by 1997, this fell to 52.5% (64.6 million kg) despite large increases in U.S. exports to Brazil (from 0.2 million kg in 1993 to 1.7 million in 1997), Colombia (0.4 million in 1993 to 1.4 million in 1997) and Honduras (1.4 million in 1997 versus a mere 57,000 kg in 1993).

So where are U.S. exports going these days? Table 2 details those countries to which U.S-produced exports are being shipped in 1997 compared to 1993. Those shipped to Asian countries and Australia/New Zealand have increased from 10.2% of total exports (8 million kg) in 1993 to 14.6% (18 million kg) in 1997. Exports to Australia went from 0.7 million kg in 1993 to 2.8 million in 1997, while those to South Korea grew from 0.5 million to 2.1 million. Exports to China climbed from 0.3 million to 1.1 million over the same period. Also recording large gains over the past five years are Thailand (from 0.2 million kg in 1993 to 2.1 million kg in 1997), the Philippines (0.2 million kg in 1993 versus 1 million kg in 1997) and New Zealand (from 95,000 kg in 1993 to about 600,000 kg in 1997). Exports to Pakistan have been especially strong over the past five years, climbing from zero in 1993 to 1.4 million kg in 1997.

Table 2

TOP 10 FOREIGN FOR U.S.-PRODUCED NONWOVEN ROLL GOODS (millions, kg)

          Country           1993      1997

1)        Canada            25.5      32.0
2)        Mexico            20.7      23.9
3)        U.K.               6.0      13.5
4)        Japan              2.6       5.2
5)        Germany            3.4       4.9
6)        Netherlands        1.4       3.9
7)        Belgium            2.0       3.5
8)        Australia          0.7       2.8
9)        Taiwan             0.9       2.7
10)       Saudi Arabia       1.1       2.5

Total:                      63.3      94.8

% of Total

Exports                     80.6      77.1

U.S. exports to Western Europe also increased over the past five years, from 22.7% of the world total (17.8 million kg) in 1993 to 25.2% (31 million kg) in 1997. This is primarily due to larger shipments to the U.K. (6 million kg in 1993 versus 13.5 million in 1997) and The Netherlands (3.9 million kg in 1997 up from 1.4 million in 1993). Moreover, while the total number of kilograms shipped is fairly modest, U.S. exports to the Middle East have nearly tripled (from 1.5 million kg in 1993 to 2.7 million in 1997). The bulk of this increase comes from shipments to Saudi Arabia, which more than doubled from 1.1 million kg in 1993 to 2.5 kg in 1997.

New, but very small, markets for U.S. nonwovens have also developed over the past five years in several African and Eastern European countries. In 1993, for instance, the only African countries to receive U.S. roll goods were the Ivory Coast and Ghana (1,293 kg and 604 kg respectively). By 1997, however, the following exports were reported: Tunisia (50,632 kg), Zimbabwe (23,502 kg), Benin (23,294 kg), Cameroon (23,267 kg), Guinea (22,226 kg), Congo (20,160 kg), the Central African Republic (16,732 kg) and Zambia (9,110 kg). New destinations in Eastern Europe included Romania (3,432 kg) and Ukraine (2,420 kg). But exports to Russia, Poland and the Czech Republic actually declined somewhat over the past five years.

Other countries that did not receive U.S.-exported roll goods in 1993, but did take shipments in 1997, include Vietnam (92,597 kg), Bangladesh (57,950 kg), Lebanon (27,973 kg), Nicaragua {22,019 kg), Uzbekistan (21,543 kg), Haiti (16,732 kg), Papua New Guinea (13,960 kg), Macao (7,270 kg), the Turks and Caicos Islands (7,140), and Micronesia (2,844). Even the Vatican became a new customer for U.S.-produced nonwoven roll goods, taking 4,899 kg in 1997!

U.S. Imports

While U.S. exports have gone to more destinations over the past five years, those shipped to the U.S. from 1993-1997 consistently came from the same 10 countries - Canada, Mexico, Israel, Italy, Japan, Germany, the UK, Luxembourg, Finland and The Netherlands - albeit in larger numbers (Table 3). Mexican exports to the U.S. more than doubled last year (from 5.4 million kg in 1996 to 11.8 million in 1997), as did those from Italy (4.8 million kg in 1997 versus 2.1 million in 1996), and from the U.K. (0.8 million in 1996 versus 1.63 million in 1997). Shipments from Israel increased dramatically (from 5.9 million kg in 1996 to 10.5 million in 1997), as did those from Canada (up 22% from 13.3 million kg in 1996 to 16.2 million in 1997) and Finland (up 57% from 0.7 million kg in 1996 to 1.1 million in 1997). Argentine exports to the U.S. have been growing steadily over the past five years as well, climbing from 1955 kg in 1993 to 404,220 kg in 1997.

Table 3

TOP 10 COUNTRIES EXPORTING ROLL GOODS TO THE U.S. (millions, kg)

          Country           1993      1997

1)        Canada             7.7      16.2
2)        Mexico             2.8      11.8
3)        Israel             3.9      10.5
4)        Italy              1.4       4.8
5)        Japan              3.0       3.4
6)        Germany            2.9       3.1
7)        U.K.               0.8       1.6
8)        Luxembourg        11.3       1.4
9)        Finland           0.08       1.1
10)       Netherlands        0.6       0.9

Total:                      34.6      54.9

% of Total

Exports:                    86.5      92.1

Exports of nonwoven roll goods to the U.S. from Luxembourg have continued to drop over the past five years (falling from 11.3 million kg in 1993 to about 1.4 million kg in 1997) and 22 different countries that shipped nonwovens to the U.S. at some point between 1993 and 1996 sent nothing during 1997. New suppliers to the U.S. market in 1997 included the Czech Republic (273,902 kg), the Anegada Islands (9497 kg) and Sierra Leone (5144 kg).

Conclusions

All in all, despite the tremendous increase in imports recorded last year, the U.S. is still exporting more than twice as many nonwoven roll goods as it is importing and this positive trade balance of about 2:1 has been consistent over at least the past five years. This is despite the fact that the U.S. has been phasing out duties it charges on imported nonwovens since 1995 (they will be eliminated altogether on January 1, 1999), while most of our trading partners continue to place tariffs - in many cases very large tariffs - on U.S. exports.

These consistently positive U.S. trade balances also underscore the need for international trade agreements that will reduce duties charged by other countries. With nascent markets developing in African, Asian and East European countries, many of which tend to have protectionist tariff policies, such negotiations could be crucial to future growth for U.S. producers.

Peter Mayberry is the director of government affairs for INDA, Association of the Nonwoven Fabrics Industry. He works out of the law offices of Kutak Rock in Washington D.C. This Capital Comments column appears monthly in NONWOVENS INDUSTRY.