China becomes top market for Louisiana exports
Chris Price. New Orleans CityBusiness. Metairie: Jun 6, 2005. pg. 1
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Abstract (Document Summary)
The World Institute of Strategic Economic Research generated the report for the WTC
using U.S. Census Bureau data. It includes exports originating in Louisiana and major
co-mingled bulk commodities, especially grain and coal, produced in other states and
shipped through Louisiana ports. Those goods are recorded as Louisiana exports
because of the difficulty of identifying the actual states of origin.
The continuing low-dollar value on exchange rates clearly helped boost the foreign sales
of most products produced in Louisiana, said Larry Collins, director of International
Services with Louisiana Economic Development. However, the grain and other
commodity exports that originate mainly in the Midwestern states and are shipped
abroad from Louisiana's deepwater ports evidently did not increase much in volume
because of the ongoing slowdown in the economies of some of the largest overseas
markets in western Europe and Japan.
Many growing markets abroad offer Louisiana companies exceptional opportunities for
their goods and services, said Donald van de Werken, director of the New Orleans U.S.
Export Assistance Center. Over 2,000 small and medium-size Louisiana companies
continue to expand their exports to all parts of the world and create jobs throughout the
state.
Full Text (719 words)
(Copyright 2005 Dolan Media Newswires)
For the first time, Louisiana is looking a little farther into the Far East to export most of its
merchandise.
China became the top market for Louisiana exports in the first quarter of 2005. And the
state's port and trade leaders say China and its booming economy will hold on to that
lead for the foreseeable future.
China is a huge economy and it's growing, said Eugene Schreiber, managing director of
the World Trade Center. They've averaged 10 (percent) to 15 percent growth over the
past 10 to 15 years and that's unprecedented.
Louisiana ports exported $708 million in goods to China in the first three months of the
year, a 27.9 percent increase over the first quarter of 2004, according to the World Trade
Center of New Orleans.
Schreiber said trade between the United States and China should continue to grow as
political pressure is applied to narrow the trade gap between the two countries.
The United States had a record $162 billion trade deficit with China last year, according
to the federal Department of Commerce.
China needs to buy more (U.S. goods) to keep political relations steady. You'll see China
buying more; they already are. All of this, of course, is great for our ports, Schreiber said.
More than $517.4 million in agricultural products were exported to China in the first
quarter. Chemicals ($121.4 million), transportation equipment ($27.5 million), metal
manufacturing goods ($22.6 million) and non-electrical machinery ($4.9 million) rounded
out the top five exports.
Louisiana export sales to Japan, the traditional frontrunner, ranked second in the first
quarter with $572 million - 18.9 percent lower than the same period in 2004.
Japan's economy has been stagnant and this is just one quarter, but it is significant,
Schreiber said.
State exports declined 2.5 percent to $5.3 billion in the first quarter compared to the
same period last year. The state ranked ninth nationally in exporting among all states,
according to the WTC report.
Agricultural products, chemicals, petroleum and coal, and processed food products were
Louisiana's top four export sectors.
Agricultural shipments alone, which comprise nearly half of all state exports, were valued
at $2.3 billion, a decline of 22.3 percent compared with the first quarter of 2004.
The World Institute of Strategic Economic Research generated the report for the WTC
using U.S. Census Bureau data. It includes exports originating in Louisiana and major
co-mingled bulk commodities, especially grain and coal, produced in other states and
shipped through Louisiana ports. Those goods are recorded as Louisiana exports
because of the difficulty of identifying the actual states of origin.
The continuing low-dollar value on exchange rates clearly helped boost the foreign sales
of most products produced in Louisiana, said Larry Collins, director of International
Services with Louisiana Economic Development. However, the grain and other
commodity exports that originate mainly in the Midwestern states and are shipped
abroad from Louisiana's deepwater ports evidently did not increase much in volume
because of the ongoing slowdown in the economies of some of the largest overseas
markets in western Europe and Japan.
Among major Louisiana industries, chemical product exports increased 30.1 percent to
$1.3 billion in the first quarter. Petroleum and coal exports increased 40.5 percent to
$579 million.
The dollar exchange rate has been benefiting Louisiana producers of chemicals,
petroleum, shipbuilding, machinery, paper, primary metals, minerals and many other
products, Schreiber said.
Of Louisiana's top 10 export destinations in the first quarter, three are in Asia (China,
Japan, and South Korea); three are in the Western Hemisphere (Mexico, Canada, and
Colombia); another three are in Europe (the Netherlands, Germany and Belgium); and
one is in the Middle East (Egypt). The pattern is similar to 2004, according to the WTC.
Many growing markets abroad offer Louisiana companies exceptional opportunities for
their goods and services, said Donald van de Werken, director of the New Orleans U.S.
Export Assistance Center. Over 2,000 small and medium-size Louisiana companies
continue to expand their exports to all parts of the world and create jobs throughout the
state.
Texas is the top exporting state in the first quarter with $30.6 billion and California
ranked second with $28.3 billion. Among the other states in the Gulf South, Florida
exported $8 billion to rank No. 7 nationally), Alabama had $2.2 billion at No. 27 and
Mississippi's $902 million ranked No. 35).