Shipments leap to Japan, lifting exports broadly.

Shipments leap to Japan, lifting exports broadly

Despite widespread complaints about Japan's trade barriers, exports to that country from Los Angeles grew sharply from 1989 to 1990, by 11 percent to $11.0 billion, according to statistics made public this month by TradeWatch.

The local data service, which compiles customs figures from the U.S. Census Bureau, reported that $1.1 billion hike was the largest dollar-value increase to any nation for L.A. exports. Meanwhile, imports from Japan fell about $980 million to $24.1 billion.

The trends reversed for China and were far steeper, exacerbating the L.A. trade deficit with that nation. Exports to China fell $133 million to $808 million, while imports soared $1.1 billion to $4.8 billion.

In the broad picture, imports from all nations climbed just 3 percent to $64.6 billion. Meanwhile, exports swelled by 9 percent to $42.1 billion.

"Because of the softening of the economy in California, we aren't purchasing imports in quite the volume we did," said Irene L. Fisher, director of the Los Angeles branch of the California Export Finance Office. "But we're becoming more aggressive and experienced in exporting."

"This is an encouraging trend for the Los Angeles business community," said Merry Tuten, president of the Greater Los Angeles World Trade Center Association. "It demonstrates that the companies in this region are seizing international business opportunities."

A host of workers in the Southland make their living from trade, from customs brokers and lawyers to truck drivers and stevedores. They number about 282,600 and work mostly in L.A. County, according to the L.A. Area Chamber of Commerce.

"International trade is now truly a keystone industry for Southern California, just as much as aerospace," said Jack Kyser, chamber economist. Kyser had reports from the first two months of 1991. He said they indicate import and export levels are growing roughly on par with last year.

"China's been sort of a building story," commented Bill Work, president of TradeWatch. "About six months ago, the reports began to pick up that China was our fastest-growing import partner."

But Work, who publishes the Tradewatch magazine, said one reason imports from China may have registered a surge is owing to the U.S. government's "aggressive campaign" to stop China from trans-shipping through Macao and other ports. Such moves were allegedly an attempt to skirt U.S. import quotas.

As for Japan, that country's increasing use of manufacturing plants in Indonesia and Thailand may partly account for the falloff in "Made in Japan" imports, Work speculated.

The TradeWatch report provides a snapshot of trade activity through the Los Angeles Customs District. It tracks destinations of exports from L.A., as well as the origins of imports to L.A., and their respective dollar values. The customs district is made up of the Southland's major ports and airports, including the L.A. and Long Beach ports and L.A. International Airport.

Many trends emerged from the report, comparing 1990 to 1989. When ranked by dollar value:

* The fastest growing product imported to L.A. was machinery. Its value rose 5 percent to $10.6 billion. No. 2 was apparel, up 7 percent to $2.7 billion. In third place was oil and mineral fuel, up 25 percent to $908 million.

* The fastest growing export from L.A. was aircraft, up 17 percent to $4.6 billion. Next was electronics, which climbed 8 percent to $6.4 billion, followed by a 32 percent rise in vehicles to $1.8 billion.

* The steepest climb by an import partner was China, followed by Singapore's 25 percent rise to $2.9 billion. No. 3 was Thailand, up 40 percent to $1.7 billion.

* The most dramatic declines among import partners were with Japan, followed by imports from Taiwan, falling 10 percent to $7.2 billion, and South Korea, down 9 percent to $6.1 billion.

* As for export partners, Japan's $11.0 billion purchases of L.A.-origin goods outstripped all -- up 11 percent. No. 2 was Spain, up 88 percent to $815 million; then came Singapore's 14 percent surge to $2.0 billion.

Falling export destinations were led by Australia, down 7 percent to $3.1 billion, then China, and finally Sweden, off 20 percent to $451 million.

Among L.A.'s smaller trading partners, trends were more dramatic, although a single big deal can easily skew such figures. Imports from the U.S.S.R. rose from $19 million to $52 million. Exports to Iran grew from $2 million to $20 million. And exports to Iraq fell from $12 million to $4 million.

Some trade sources speculated on the outlook for individual categories. Commissioner Quintin Villanueva of the U.S. Customs Service Pacific region said he estimates imports this year will hit a 5 percent growth rate, versus 3 percent last year. He declined to estimate exports.

Bill Work of TradeWatch said Japan's trade deficit with L.A. will likely close further this year.

Despite Japan-bashing among trade protectionists and others worried about trade deficits, the Office of the U.S. Trade Representative pointed to some liberalizing by Tokyo in the office's 1991 "National Trade Estimate on Foreign Trade Barriers."

The report identified Japanese "progress" in opening up infrastructure investment and accelerating import-clearance procedures. It nevertheless pointed to continuing "exclusionary business practices" and barriers to direct foreign investment.

Accounting for China's surging exports to America, the Trade Office's report noted that China "has had phenomenal success in pushing export growth by increasing state allocations of credit and raw materials to the export sector." Exports are considered crucial to the success of that nation's "economic retrenchment policy" pursued since 1988, the U.S. report said.

While customs data may be a good barometer of international trade, conclusions must be drawn cautiously. Foreign-currency exchange rates account for some changes. And only about 50 percent of goods through the L.A. Customs District is either consumed or produced in the L.A. area, according to an L.A. port official's estimate. [Tabular Data Omitted]

PHOTO : Air cargo: |International trade is now truly a keystone industry for Southern California'