Export sales rise $5 billion in 1990 on strength of tri-country demand.

California producers sold $5 billion more to foreign buyers in 1990 than they did in 1989 thanks primarily to gains in trade with Japan, Canada and Mexico.

The total value of foreign sales of goods produced in California rose from $53.55 billion in 1989 to $58.43 billion in 1990, according to data supplied by University of Massachusetts at Amherst's Massachusetts Institute for Social and Economic Research. The boost helped drive down the trade deficit of goods that moved through World Port Los Angeles from $24.18 billion to 1989 to $22.52 billion in 1990, according to data supplied by the Los Angeles Area Chamber of Commerce.

Of the top 35 countries that buy California products, 27 bought more in 1990 than in 1989 while only eight, including the United Kingdom, Australia and China (mainland), bought less.

According to the University of Massachusetts, the total value of California products exported to Japan rose from $9.74 billion in 1989 to $10.27 billion in 1990, a 5.1 percent increase.

The value of California products exported to Canada rose 22.18 percent, from $4.75 billion in 1989 to $5.8 billion in 1990. Much of the increase was due to new reporting methods used by Canada last year, said Linda Downs, foreign trade data analyst for the university program.

Mexico's appetite for electronics equipment, computers and industrial machinery pushed its consumption of California-made exports up 22.18 percent from $4.17 billion in 1989 to $4.67 billion in 1990, according to the University of Massachusetts interpretation of the U.S. Census Bureau data.

Leslie K. Browne-Cazas, a principal in the International Trade and Customer Services division of accounting giant Arthur Andersen & Co., said maquiladora programs which let U.S. or other foreign firms build components, process food or refine materials in Mexico, have been responsible for the U.S./Mexico trade numbers. She warned that the numbers are potentially misleading because components are counted as imports when they are shipped back into the U.S.

With the qualification of the maquiladora factor, Browne-Cazas said Los Angeles needs to target the growing Mexican consumer market and boost exports further.

Trade unions have complained that U.S. firms take jobs out of the country when they participate in the maquiladora programs. However, Arthur Andersen research shows that 50 percent of the wages paid to workers in the program are spent to buy goods that are produced in California and the rest of the United States, Browne-Cazas said.

"Los Angeles exporters need to be more sophisticated and be willing to accept foreign currency if they want to sell more of their goods overseas. There are lots of small companies that can sell to foreign markets if they just take advantage of the services that state, federal and private trade experts can offer," Browne-Cazas said.

Though the increase in trade with Japan provided the largest dollar increase ($526.49 million), Spain posted the biggest percentage jump, importing goods worth $1.21 billion through California ports in 1990, a 74.95 percent increase from $689.21 million in 1989. Mexico followed closely with an increase of $500 million.

Spanish importers bought $661.39 million of transportation equipment, up from $210.81 million in 1989. They also bought $126.05 million in industrial machinery and computer equipment, up from $112.13 million in 1989, according to the report.

The value of California products sold to Egypt showed the highest percentage increase of the top 35 countries that bought California products last year. The 104.15 percent jump from $144.92 million to $295.84 million was driven primarily by the $83.9 million in agricultural goods shipped in 1990, which was 54.48 times the $1.54 million shipped to Egypt in 1989, according to the report. California's industrial equipment and computer makers sold goods worth $68.63 million in Egypt in 1990, or 4.72 times the $14.52 million sold in 1989.

Electronic equipment sales in 1990 to Egypt, not counting computers, totaled $25.75 million, or 4.72 times the $5.46 million sold in 1989, according to data supplied by the U.S. Census Bureau and analyzed in the university study.

Neighboring Israel posted a 72.44 percent boost in imports from California in 1990. The country's purchases jumped from $291.26 million in 1989 to $502.25 million in 1990. Sales of transportation equipment, industrial machinery and computer equipment accounted for $137.34 million of the gain.

Some foreign countries pared back their purchases of California goods in 1990. United Kingdom importers bought 1.69 percent less in 1990 than in 1989, a drop from $3.42 billion to $3.36 billion. The decline was due to fewer purchases of California-produced industrial machinery, computers and transportation equipment.

After rising from $559.64 million in 1988 to $798.34 million in 1989, China's purchases of California products dropped 17.85 percent to $655.86 million in 1990. It didn't buy as much machinery, computer equipment and agricultural products in 1990 as it did in 1989. For instance, procurement of agricultural products dove from $188.12 million in 1989 to only $9.87 million in 1990. At the same time, China bought $192.73 million in transportation equipment in 1990 compared to $167.26 million in 1989, according to the U.S. Census Bureau Foreign Trade Division and the university.