L.A.'s world trade outpaces national rate, leaps by 5.6%: imports/exports rise by $6 billion; 9,000 new jobs.

Foreign trade in the Los Angeles area blossomed in 1991, creating nearly 9,000 new jobs locally, despite the U.S. recession and economic slowing in many foreign countries.

Imports and exports passing through L.A.'s harbors and airports swelled by $6 billion to a combined value of $112.7 billion, compared with 1990.

That 5.6 percent growth rate surpassed the previous year's 5.2 percent pace and was the most robust among America's top five trading cities.

Exports leaped 9.2 percent, while imports gained 3.3 percent, according to information released this spring by TradeWatch, an L.A.-based data service that tabulates import and export declarations made to the U.S. Customs Service nationwide.

The surge was good news for dockworkers, truckers, customs brokers and others who make their living directly off foreign trade in L.A., Orange and Ventura counties. They numbered 291,500 in 1991, up 8,900 from a year earlier, according to the Economic Development Corp. of L.A. County.

Some economists and foreign trade experts were surprised at L.A.'s strong figures. Local trade was bolstered primarily, they figured, by the bustling economies of Asian nations, which are Los Angeles' dominant trading partners.

While much of Europe slumped last year, the "Four Tigers" of the Far East did not: South Korea's economy grew 8.2 percent; Taiwan expanded 7 percent; while Singapore and Hong Kong grew 6.5 percent and 4 percent, respectively.

Those countries continued their historically brisk trade with the L.A. Customs District, which included ships cruising into the ports of L.A. and Long Beach, plus air-cargo flights out of L.A. International Airport. Asians favor the L.A. district for its proximity to the largest consumer market in the Western United States.

"We're in the right place here in Los Angeles, but it's not all geography," explained Steven Hess, international economist at First Interstate Bancorp. He said L.A. trade was up also because it increasingly has become "the center" of California's relatively high share of direct investment from Asia. This and L.A.'s large Asian-origin population have oriented much two-way trade towards Asian homelands, he said.

Compared with rivals, the L.A. Customs District's traffic grew at more than double the U.S. average of 2.5 percent, reported TradeWatch. L.A.'s 5.6 percent clip bested the richest customs district, New York, whose traditional forte is European trade. Two-way trade passing through New York rose 2.9 percent to $122.9 billion. No. 3 Detroit posted just 0.1 percent growth. No. 4 Seattle was up 0.7 percent. No. 5 San Francisco was up 3.9 percent.

A few smaller customs districts, however, turned in far better results. For instance, the Anchorage, Alaska, district surged 20.4 percent to $5.6 billion in combined trade.

Some of L.A.'s figures provided no surprises. Japan, again, was the dominant partner, doing $35.4 billion in two-way trade. And L.A.'s top import and export again was electronic products, at $16.1 billion and $7.1 billion, respectively.

The L.A. area, however, generates about one-half of the exports it sends abroad and also consumes roughly 50 percent of its imports. The remainder is largely carted to and from other states by railroad or truck. In fact, an economic rebound in the Southwest and Midwest helped to fuel L.A.'s strong numbers, said Port of Los Angeles Executive Director Ezunial Burts. His port's container-cargo traffic fell 3.7 percent, but movements of empty containers dropped 16.4 percent.

George Marshall, senior vice president of Mitsui OSK Lines (America) Inc., one of the biggest steamship lines using the twin ports, considered 1991 an exceptionally brisk year.

"The ships are nearly full in both directions, and that's true for most of my competitors," he said. "I haven't seen that in many years."

Mitsui OSK's steamships docked 104 times last year at L.A. and Long Beach ports. Capable of carrying 2,900 20-foot-long containers, they sailed at roughly 90 percent capacity, up from about 81 percent in 1990, he estimated.

Infrastructure changes in and around the ports helped, said Marshall, but were not crucial. "Well-run ports, highways and rail access -- those things improved (in 1991) and are all damn important, but they don't come close to the real significance of the dollar," he said.

Indeed, the dollar declined 9 percent against 15 major foreign currencies in the second half of 1991. While that made U.S. exports more attractive, it dampened Americans' demand for more costly imports. Thus, nationally, exports climbed 7.3 percent while imports fell 1.4 percent.

Yet L.A. showed import growth of 3.3 percent. That owed in part to China (Mainland), L.A.'s fastest growing import source. Chinese imports popped up by $1.5 billion to $6.3 billion. Next were Malaysian imports, up $540 million to $2.7 billion, and Taiwan's climbed $520 million to $7.76 billion.

Topping L.A.'s fastest-growing export destinations was Switzerland, up $974 million to $1.3 billion. China followed, buying $1.2 billion, up $528 million, and then Hong Kong, at $2.1 billion, up $440 million.