Citation
Quarterly report to the Congress and the East-West Foreign Trade Board on trade between the United States and the nonmarket economy countries

Material Information

Title:
Quarterly report to the Congress and the East-West Foreign Trade Board on trade between the United States and the nonmarket economy countries
Creator:
United States International Trade Commission
United States -- East-West Foreign Trade Board
United States -- Congress. -- House. -- Committee on Ways and Means
Place of Publication:
Washington, D.C.
Publisher:
U.S. G.P.O.
Publication Date:
Frequency:
Quarterly
Language:
English
Physical Description:
v. : ; 24 cm.

Subjects

Subjects / Keywords:
Commerce -- Periodicals -- United States -- Communist countries ( lcsh )
Commerce -- Periodicals -- Communist countries -- United States ( lcsh )
Genre:
statistics ( marcgt )
federal government publication ( marcgt )

Notes

Dates or Sequential Designation:
Began with Mar. 1975; ceased in 1979.
General Note:
Reuse of record except for individual research requires license from LexisNexis Academic & Library Solutions.
General Note:
CIS Microfiche Accession Numbers: CIS 79 H782-34, CIS 79 H782-12, CIS 78 H782-72, CIS 78 H782-64, CIS 78 H782-34, CIS 78 H782-8, CIS 77 H782-95, CIS 77 H782-77, CIS 77 H782-29, CIS 77 H782-27, CIS 75 H782-78, CIS 75 H782-40, CIS 75 H780-16
General Note:
Reuse of record except for individual research requires license from Congressional Information Service, Inc.
General Note:
Description based on: 16th (Dec. 1978)
General Note:
At head of title, Mar. 1975-: Committee print.
General Note:
CIS Microfiche Accession Numbers: CIS 79 H782-34, CIS 79 H782-12, CIS 78 H782-72, CIS 78 H782-64, CIS 78 H782-34, CIS 78 H782-8, CIS 77 H782-95, CIS 77 H782-77, CIS 77 H782-29, CIS 77 H782-27, CIS 75 H782-78, CIS 75 H782-40
Statement of Responsibility:
Committee on Ways and Means, U.S. House of Representatives ; submitted to the Congress by the Vice Chairman, U. S. International Trade Commission.

Record Information

Source Institution:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
021345184 ( ALEPH )
24236499 ( OCLC )
75645949 //r82 ( LCCN )
0098-910X ( ISSN )
Classification:
KF49 ( lcc )

Full Text



95th Congress COMMITTEE PRINT WMCP: 95-108
2d Session




COMMITTEE ON WAYS AND MEANS
U.S. HOUSE OF REPRESENT 6 &-,
X ;

iq

FIFTEENTH QUARTERLY REPOR THE
CONGRESS AND THE EAST-W 1B Of
FOREIGN TRADE BOARD ON
TRADE BETWEEN THE UNITED STATES AND THE
NONMARKET ECONOMY COUNTRIES
SUBMITTED TO THE CONGRESS BY THE
CHAIRMAN, U.S. INTERNATIONAL TRADE CO31M3ISSION ON
SEPTEMBER 29, 1978









NOVEMBER 7, 1978




Printed for the use of the Committee on Ways and Means

U.S. GOVERNMENT PRINTING OFFICE 35-360 0 WASHINGTON : 197S




























COMMITTEE ON WAYS AND MEANS
AL ULLMAN, Oregon, Chairman JAMES A. BURKE, Massachusetts BARBER B. CONABLE, JR., New York
DAN ROSTENKOWSKI, Illinois JOHN J. DUNCAN, Tennessce
CIIARLES A. VANIK, Ohio BILL ARCHER, Texas
OMAR BURLESON, Texas GUY VANDER JAGT, Michigan
JAMES C. CORMAN, California WILLIAM A. STEIGER, Wisconsin
SAM M. GIBBONS, Florida PHILIP M. CRANE, Illinois
JOE D. WAG( GONNER, JR., Louisiana BILL FRENZEL, Minnesota
OTIS G. PIKE, New York JAMES G. MARTIN, North Carolina
J. J. PICKLE, Texas L. A. (SKIP) BAFALIS, Florida
CHARLES B. RANGEL, New York RICIHARD T. SCHULZE, Pennsylvania
WILLIAM R. COTTER, Connecticut BILL GRADISON, Ohio
FORTNEY H. (PETE) STARK, California JOHN I. ROUSSELOT, California
JAMES R. JONES, Oklahoma ANDY JACOBS, JR., Indiana ABNER J. MIKVA, Illinois MARTHA KEYS, Kansas JOSEPH L. FISHER, Virginia HAROLD FORD, Tennessee KEN HOLLAND, South Carolina WILLIAM M. BRODHEAD, Michigan ED JENKINS, Georgia RICIHARD A. GEPIHARDT, Missouri JIM GUY TUCKER, Arkansas RAYMOND F. LEDERER, Pennsylvania JOHN M. MARTIN, Jr., Chief Counsel J. P. BAKER, Assistant Chief Counsel JOHN K. MEAGHER, Minority Counsel
(xI)












LETTER OF TRANSMITTAL


UNITED STATES INTERNATIONAL TRADE COMMISSION,
lWashington, D.C., September 2.9, 1978.
Hon. THOMAS P. O'NEILL, Jr., Speaker of the Hoase of Representatives, Washington, D.C.
DEAR MR. SPEAKER: The Unite(d States International Trade Commission is pleased to submit to the Congress its 15th quarterly report on trade between the United States and the nonmarket economy countries, as required by section 410 of the Trade Act of 1974. The report is being submitted simultaneously to the East-West Foreign Trade Board.
It is believed that this report will be of )articular interest to the Committee on Ways and Means.
Sincerely,
JOSEPH 0. PARKER, Chairman. Enclosure.
III




















Digitized by the Internet Archive
in 2013














http://archive.org/detaiIs/queporttl5unit














CONTENT S



Letter of transmittalI to the Speaker of the House of Representatives from Page the Chairman, U.S. International Trade Commiission-----------I
Introduction----------------------- -----1
Second quarter developments in trade between the United States and the nonmarket economy conre--------------------2
Analyses of imports from the nonmarket economy countries that have at growing significance in U.S. markets: Tungsten from China------------------------------------------- 14
World production and consumption---------------14
Uses----------------------------------------16
U.S. dead-----------------------16
U.S. spl---------------------- --16
Prices---------------------------------------------------- 17
Motor vehicle equipment f romn Hungary---------------17
U.S. demand stain-------------- -----18
Hungarian supply stain--------- --------19
Appendix: Leading U.S. imports andI exports in trade with the nonmarket
economy conre------------------------21
Index------------------------------------------------------------- 45
(Nv)














FIFTEENTH QUARTERLY REPORT ON TRADE BETWEEN
THE UNITED STATES AND THE NONMARKET ECONOMY COUNTRIES
INTRODUCTION
This report by the U.S. International Trade Commission is made pursuant to section 410 of the Trade Act of 1974 (19 U.S.C. 2440), which requires the Commission to monitor imports from and exports to the nonmarket economy countries (N ME's), to provide (lata on the effect (if any) of such imports on U.S. production and employment, and to publish a summary report of the data not less frequently than once each calendar quarter for Congress and the East-West Foreign Trade Board. This report covers information through the second quarter of 1978.
The nonmarket economy countries for which trade statistics are included in this series of reports are Albania, Bulgaria, People's Republic of China (China), Cuba, Czechoslovakia, German Democratic Republic (East Germany), Hungary, Mongolian People's Republic, Poland, Romania, the U.S.S.R., and Yugoslavia. At a later date, the Democratic People's Republic of Korea, Vietnam, Laos, and Democratic Kampuchea may be included in this series of reports, pending the development of trade. Most of the countries have not been accorded most-favored-nation (MEN) treatment by the United States during the last 25 years. At the present time, only Poland, Yugoslavia, Romania, and Hungary receive MFN treatment from the United States.
In the Tariff Schedules of the United States (TSUS), the unconditional MEN rates are set forth in rate-of-duty column 1. The rates applicable to products of designated Communist nations or areas are set forth in rate-of-duty column 2; for the most part these rates are the original statutory rates enacted in 1930. The rate policy involved was made effective by the President in 1951 and 1952 pursuant to section 5 of the Trade Agreements Extension Act of 1951, which directed the President as soon as practicable to take such action as was necessary to deny the benefit of trade agreement concessions to imports from certain Communist nations or areas. An examination of the individual items or rate provisions of the TSUS reveals that the rate discrimination involved varies considerably from item to item and sometimes is not present at all, as where imports from all sources have been historically free of duty or dutiable at the same rates. It is important, therefore, to look at the particular rate treatment in the TSUS when interest is to be focused on the actual or potential trade in specific imports.
This report examines the volume of U.S. imports and exports with each of the nonmarket economy countries and the commodity composition of that trade, as well as the balance of U.S. trade with these countries. Detailed data are included on the most important U.S.
(1)





2

imports and exports in trade with each of the nonmarket economy countries. One objective of the analysis of detailedl U.S. import data is to identify items prodIuced in the United States with which the importedl products compete and to assess the economic impact, if any, of such imports on the relevant U.S. industry and on employment within that industry.
This report contains analyses of two Jproducts-tungsten ore from China and motor vehicle equipment from Hungary-that have been imported in increasing~ amounts from the nonmarket economy countries. The analyses focus on the causes of the increases in imports and the probable effects of these increases on (domestic output.

SECOND QUARTER DEVELOPMENTS IN TRADE BETWEEN THE UNITED
STATES AND THE NONMTARKET ECONOMY COUNTRIES
Total trade between the United States and the nonmarket economy countries increased nearly .30 percent to a records $2.1 billion in the second quarter of 1978 (table 1). Greatly increased exports were the major factor contributing to the increased trade, as imports increased only marginally from $544 million to $550 million. The value of U.S. exports to the NME's was over $1.5 billion, or almost (double the quarterly average value of $768 million (luring 1977. Over 60 percent of the value of exports to the NMIE's during the second quarter consisted of wheat, corn, and soybeans. These three items accounted for 95 percent of the U.S. trade surplus of $992 million. This trade surplus is double that of any other quarter of 1977 or 1978 and the largest surplus the United States has had with the NME's since the fourth quarter of 1975, the last quarter in which the United States also had a trade surplus with the world. Although U.S. trade with the NMIE's is small relative to total U.S. trade, the maintenance of a trade surplus with the NME's has been relatively important in offsetting the U.S. trade deficit with the world.
The shares of U.S. exports to and imports from the NME's relative to total U.S. exports andl imports are shown in the last two rows of table 1. In spite of rising imports from the NME's, their relative share of total U.S. imports fell slightly from 1.34 percent to 1.27 p~ercent. In contrast, the share of total U.S. exports going to the NME's increased from 3.47 percent to 4.18 percent, exceeding the NME share of U.S. exports in any quarter since the beginning of 1976.
The distribution of U.S. trade with the NME's and with the world, within broad product groups, is shown in table 2. Compared with U.S. trade with the world, U.S.-NME trade is much more heavily weighted toward agricultural goods, although the distinction is lparticularly striking with regard to exports. U.S. exports of chemicals, semimanufactures, and manufactured goods to the NME's are small in comparison with total U.S. exports of these items, and are declining as a percentage of U.S. exports to the NME's. U.S. imports from the NME's in these three product categories make uip a somewhat larger percentage of total imports from these countries than is found in total U.S. imports from the world. In contrast, U.S. imports of mineral fuels and lubricants from the NME's dropped to less than 4 percent of total imports, whereas items in this product group account for almost one-fourth of U.S. imports from the world.





3

TABLE I.-U.S. TRADE WITH THE WORLD AND WITH NONMARKET ECONOMIES, BY QUARTERS, APRIL-JUNE 1977 THROUGH APRIL-JUNE 19781
[Value in millions of U.S. dollars]

1977 19782
Ap;il- July- October- January- A iliItem June September December Marchflne

U.S. world trade:
Exports ------------------------- 31,763 29,102 30,673 30,965 37,052
I mports ------------------------- 38,063 37,154 37,205 40,551 43,200
Balance ----------------------- -6, 300 -8, 052 -6, 532 -9, 586 -6,148
U.S. trade with nonmarket economies:
Exports -------------------------- 816 539 767 1,074 1,542
Imports -------------------------- 460 439 417 544 550
Balance------------------- +356 +100 +350 +530 +992
Trade turnover (exports plu imports)------------------------- 1,276 978 1,184 1,618 2,092
NME share of total U.S. trade:
Exports (percent)------------------ 2. 57 1. 85 2. 50 3. 47 4. 16
Imports (percent)------------------ 1.20 1.18 1.12 1.34 1.27

1Because of the inclusion of nonmonetary gold in the statistics for 1978, data for 1977 have been adjusted by the inclusion of nonmonetary gold to both exports and imports. Therefore, data in this table for 1977 are not comparable with data for 1977 in similar tables in earlier reports. Data on imports for 1977 are not adjusted for date of importation.
2 Preliminary.
Note: General imports are used in this table as a more accurate measure of the U.S. balance of trade for any given time period. The totals for general imports in this table will not, therefore, correspond with totals for imports for consumption listed in all other tables in the reportSource: Data for 1977 are from the U.S. Department of Commerce publication FT990. Exports are from tables 5 and E-3 and include domestic and foreign merchandise and Defense Department military assistance grant-in-aid shipments. I mports are from tables 6B and l-4B and are general imports. Both imports and exports are valued on an f.a.s. basic.

Table 3 shows the broad commodity structure of U.S. imports from the individual NME'S and from the NME's as a group in the second quarter of 1978. Exactly one-half of U.S. imports from the NME's consisted of semimanufactured items, machinery and transport equipment, and miscellaneous manufactured articles contained in Standard International Trade Classification (SITC) commodity groups 6, 7, and 8. Yugoslavia, Poland, China, and Romania supplied over 80 percent of these items, including footwear, textile products, wood furniture, steel plates, and other metal products. Food and live animals accounted for another 14 percent of U.S. imports from the NME's. Canned hams, the leading item imported from Poland, Yugoslavia, and Hungary and a significant component of U.S. imports from Romania and Czechoslovakia, accounted for over one-half of the imports in this commodity group. Commodities and transactions not elsewhere classified made up another 13 percent of U.S. imports. The vast majority of these imports consisted of gold bullion from the U.S.S.R.'

1 For a more complete listing of both U.S. imports to and exports from the NME's, consult the detailed appendix tables at the end of this report.






4

TABLE 2.-U.S. TRADE WITH THE WORLD AND WITH THE NONMARKET ECONOMY COUNTRIES, BY SCHEDULE A, B, OR E NUMBERS, JANUARY-JUNE 1977, AND JANUARY-JUNE 197812

U.S. trade with the world U.S. trade with NME's
Schedule
A, B, oi January- January- January- JanuaryE No. Description June 19773 June 19784 June 1977 3 June 19784

Exports (millions of U.S. dollars)
0,1 Food, beverages, and tobacco ------------------------ 7,930 9,714 738 1,462
2,4 Crude materials ------------------------------------ 7,827 8,391 324 524
3 Mineral fuels and lubricants ------------------------- 2,004 1,567 35 33
5 Chemicals ----------------------------------------- 5,403 5,798 75 58
6 Manufactured goods classified by chief material -------- 5,821 5,928 90 58
7,8,9 Other manufactured goods and miscellaneous ---------- 31,356 35,379 501 472
Total --------------------------------------- 60,341 66,775 1,763 2,607
Imports (millions of U.S. dollars)
0,1 Food, beverages, and tobacco ------------------------ 7,619 7,787 153 198
2,4 Crude materials ------------------------------------ 4,081 4,628 67 82
3 Mineral fuels and lubricants----------------- 22,594 20,605 98 42
5 2,776 3,214 35 67
6 Manufactured goods classified by chief material -------- 10,127 13,493 173 254
7,8,9 Other manufactured goods and miscellaneous ---------- 25,493 33,675 278 438
Total --------------------------------------- 72,690 83,402 804 1,081
Percent of total exports
0, 1 Food, beverages, and tobacco ------------------------ 13.1 14.5 41.9 56.1
2,4 Crude materials ------------------------------------ 13.0 12.6 18.4 20.1
3 Mineral fuels and lubricants ------------------------- 3.3 2.3 2.0 1.3
5 Chemicals ----------------------------------------- 9.0 8.7 4.3 2.2
6 Manufactured goods classified by chief material --------- 9.6 8.9 5.1 2.2
7,8,9 Other manufactured goods and miscellaneous ---------- 52.0 53.0 28.4 18.1
Total --------------------------------------- 100.0 100.0 100.0 100.0
Percent of total imports
0,1 Food, beverages, and tobacco ------------------------ 10.5 9.3 19.0 18.3
2,4 Crude 5.6 5.5 8.3 7.6
3 Mineral fuels and lubricants ------------------------- 31.1 24.7 12.2 3.9
5 Chemicals ----------------------------------------- 3.8 3.9 4.4 6.2
6 Manufactured goods classified by chief material -------- 13.9 16.2 21.5 23.5
7,8,9 Other manufactured goods and miscellaneous ---------- 35.1 40.4 34.6 40.5
Total --------------------------------------- 100.0 100.0 100.0 100.0

Because of extensive changes in U.S. import and export statistics effective Jan. 1, 1978, only the following comparisons of statistics are possible: (1) U.S. trade with the NME's on a 1-digit basis in 1977 with U.S. trade with the world on a Idigit basis in 1977; (2) similarly for 1978; (3) total U.S. trade with the world in 1977 with total U.S. trade with the world in 1978 (import data are not adjusted for date of importation); and (4) similarly for total U.S. trade with the NME's. Data for 1977 on a 1-digit basis should not be compared with data for 1978 on a 1-digit basis for either U.S. trade with the world or for U.S. trade with the NME's.
2 Because of the inclusion of nonmonetary gold in the statisticsfor 1978, data for 1977 have been adjusted by the inclusion of nonmonetary gold to both exports and imports. Therefore, data for this table for 1977 in this report are not comparable to data for 1977 in similar tables in easier reports. Data for 1977 are on an SITC revision I basis except for the inclusion of nonmonetary gold; data for imports are not adjusted for date of importation.
3 Data for exports from old schedule B, domestic merchandise only; data for imports from old schedule A.
4 Data for exports from new schedule E, domestic merchandise only; data for imports from revised schedule A.
Note: Because of rounding, figures may not add to the totals shown.
Source: Data on U.S. trade with the woi Id for 1977 from U.S. Department of Commerce publication FT990, tables 4 an d 313; data on U.S. trade with NME's from the Bureau of East-West Trade. Data for U.S. trade with the world for 1978 are preliminary.






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The importance of agricultural commodities in U.S. exports is shown clearly in table 4. Well over one-half of total U.S. exports to the NME's consisted of food and live animals, with the Soviet Union and Poland being the major recipients. When exports of c rude materials, which consisted mainly of soybeans, followed by woodpulp and cattle hides, are added to exports of food and live animals, the share of U.S. exports going to the NME's in these two groups amounted to 74 percent. Exports of machinery and transport equipment accounted for another 14 percent of total exports to the NME's. In large part, exports in this group consisted of tractors, certain nonmilitary trucks, and machine tools for the U.S.S.R., Yugoslavia, Poland, and Romania.
Tables 5 and 6 show U.S. trade with individual NME's in the second quarter and January-June period of 1978 along with comparative figures for other recent periods. The U.S.S.R., Poland, Yugoslavia, China, and Romania ranked as the largest NME sources of U.S. imports during both the first half and second quarter of 1978. On the export side, the U.S.S.R., Poland, China, Yugoslavia, and Romania, respectively, were the largest markets for U.S. goods during both periods. With the exception of Yugoslavia, exports to all countries increased over the same period of 1977.
Tables 5 and 6 can be considered together to determine the relative trade positions of each NME country. In the January-June 1978 period, the NME's as a group experienced a deterioration of about 60 percent in their overall trade deficit with the United States compared with their position in the corresponding 1977 period. The only major NME trading partner to sustain a positive trade balance with the United States in the January-June period was Yugoslavia, which both increased its exports to and decreased its imports from the
2
United States. The largest trade deficit sustained during the first six months of 1978 was incurred by the Soviet Union. At nearly $1.3 billion, the Soviet trade deficit has already this year exceeded the $1.2 billion trade deficit experienced during all of 1977. The second quarter deficit alone was over $800 million, as U.S. sales of com, wheat, and soybeans escalated. All of the remaining major trading partners, except Bulgaria, experienced a deterioration in their trade balance with the United States in the first half of 1978. Two countries, China and Romania, had trade surpluses during the first 6 months of 1977, but moved into deficit positions during the same period of 1978. Romania ran a small deficit during the first six months of 1978, as a positive trade balance of $18 million during the second quarter largely offset the $21 million deficit experienced during the first quarter.
2 Albania, Cuba, and 'Mongolia are not considered major NME trading partners.









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TABLE 5.-U.S. IMPORTS FOR CONSUMPTION FROM THE INDIVIDUAL NONMARKET ECONOMIES, 1976, 1977,
JANUARY-JUNE 1977, JANUARY-JUNE 1978, APRIL-JUNE 1977, AND APRIL-JUNE 1978
[In thousands of U.S. dollars]

January-June April-June
Source 1976 1977 1977 1978 1977 1978

U.S.S.R ------------------------ 225,840 421,581 167,802 254,331 112,668 122,025
People's Republic of China ------- 194,649 197,400 100,394 161,968 48,321 84,897
Poland- 314,436 326,508 157,965 221,737 83,316 113 830
Yugoslavia- 395,042 347,899 183,320 204,703 93,100 101,012
Romania- 200, 188 231,020 131,996 138,575 75,014 80,371
Czechoslovakia ----------------- 34,802 36,392 18,558 29,641 9,281 15 044
German Democratic Republic----- 13,421 16,863 8,370 19,123 4,122 8: 889
Hungary ----------------------- 47,569 46,800 25,654 30,962 11,191 13,390
Bulgaria ----------------------- 11,231 26 043 8,707 15,963 3,800 8,938
Albania ------------------------ 2,544 3,399 297 2,282 147 182
Cuba -------------------------- 27 106 105 26 (2) 26
People's Republic of Mongolia---- 2,252 2,076 800 1,869 263 1,543
Total ------------------- 1,441,932 1,656,089 803,969 1,081,180 441,223 550, 147
Total U.S. imports from all
countries ------------------- 121,451,886 149,749,366 73,945,988 83,401,700 38,091, 105 42,911,800

1 These figures do not agree exactly with the import figures in table 1 because these figures are imports for consumption, whereas the import figures in table 1 are general imports.
2 Less than $500.
Source: Bureau of East-West Trade, U.S. Department of Commerce.

TABLE 6.-U.S. EXPORTS TO THE INDIVIDUAL NONMARKET ECONOMIES, 1976,1977, JANUARY-JUNE 1977, JANUARY-JUNE 1978, APRIL-JUNE 1977, AND APRIL-JUNE 1978
[in thousands of U.S. dollars]

January-June April-June
Market 1976 1977 1977 1978 1977 1978

U.S.S.R --------------------------- 2,305,934 1,623,484 1,050,905 1,552,609 451,844 929,049
People's Republic of China ---------- 135,388 171,318 62, 130 210,542 43,065 113,068
Poland ---------------------------- 621,035 436,536 213,473 342,352 94,708 201,792
Yugoslavia ------------------------ 295,413 355,436 199,603 176,032 112,037 99,880
Romania -------------------------- 249,033 259,405 127,198 141,847 62,916 62,259
Czechoslovakia -------------------- 147,466 73,989 45,117 61,677 16,770 44,210
German Democratic Republic -------- 64,767 36,099 16,877 71,470 3,550 42,479
Hungary -------------------------- 62,960 79,717 31,458 58,049 19,380 34,852
Bulgaria -------------------------- 43,320 23,910 14,823 21,687 8,701 7,800
Albania --------------------------- 1,076 2,209 755 400 503 138
Cuba ----------------------------- 89 588 455 247 221 150
People's Republic of Mongolia ------- 31 11 4 37 2 11
Total I ---------------------- 3,926,512 3,062,701 1,762,818 2,606,951 813,645 1,535,688
Total U.S. exports to all countries 1- - 113, 670, 672 119,005,375 60,339,402 66,732,500 31,158,471 36,350,100

1 These figures do not correspond exactly to those given in table 1 because export figures in table I include U.S. exports of foreign merchandise, whereas figures in this table do not. Also, in total U.S. exports, figures in this table do not include Department of Defense military assistance shipments, whereas corresponding figures in table 1 include these figures. Exports are valued on an f.a.s. basis.
Source: Bureau of East-West Trade, U.S. Department of Commerce.

The relative shares of U.S. imports from and exports to the nonmarket economy countries in 1977 and January-June 1978 are shown
in figures 1 and 2. Figure I shows that the distribution of U.S. imports from the various NME countries has remained relatively stable
in the two periods. China, Polan(l, and "all other" countries increased
in relative importance as suppliers to the U.S. market, while the
U.S.S.R., Yugoslavia, and Romania decreased their shares. A somewhat greater shift occurred with regard to U.S. exports to the NME's.
While Poland's share of U.S. exports declined only slightly, there
were substantial decreases in the shares (),oincr to Yuooslavia and n Z_ Z-11






Romania. The Soviet Union's share of U.S. exports increased si'nificantly from 53.0 percent in 1977 to 58.4 percent in the first 6 inionths of 1978. China an(l "all other" countries also increased their shares. Consi(lered( together, the two figures show the increasing importance of China and the decreasingg importance of Yuo lavia as trading partners for the United States.
The value of U.S. exports of cereals an(i cereal preparations to the nonmarket economy countries in the second quarter of 1978 was almost three times higher than in the corresj)on(ling p)erio(l of 1977 (table 7). Moreover, exports in the first half of 1978 have already excee(led their value for all of 1977, a reflection olf the isal)pp)ointin harvests suffered( by all of the NIME countries except Czechoslovakia in 1977. Nearly 80 1)ercent of these exports went to the Soviet Union. Other important NMIE customers were Polan( and East Germany. A notable addition to the NME grain )purchasers was ('hina, which took deliveryy of almost $31 million of U.S. grains in the second quarter. This is part of a purchase of 600,000 metric tons, or 22 million l)ushels of U.S. wheat which the Chinese made in A)pril, the first such order since the 1974-75 crop) year. The Deplartment of Auricultilre announced( a subsequent. C(inese order in Augiust for 1 million metric tons of U.S. wheat. This resumption of ('hinese grain or lers after a pause of some years may be indicative of improving U.S.-('hina political relations or may simply be the result of a series of bad harvests within China and short supl)lies fromin other sources. It has also been cited that Chinese dissatisfaction with an unacceptable high level of wheat smut found in a U.S. wheat shipment in July 197:3 was the basis for their refusal to buy U.S. wheat, Wiring the past 4 years.
Several newsworthy events occurre(l (luring the second quarter, which may have an effect on U.S. commercial relations with the nonmarket economy countries. Romanian Presilent Nicolae Ceausescu visited the United States in April for talks with President ( 'arter, members of Congress, and U.S. business lead(lers. Economic issues tiscussed included credit terms, tra(le, andI investment. Durin( the visit, President Ceausescu witnessed the signing of an agreement between Control Data Corp. (CDC) and Romania's state-owned( electronics an(l computer organization to cooperate in the development, lpro(iluction, and marketing of certain CDC dlata-processing hardware, software, and( services in Romania and other markets. Under the terms of the agreement, joint ventures will be formedl to implement coop)eration in five specific areas-planning, research and development, manufacturing, marketing, and logistics. In April 1973, Control Data formed the first, and currently the only, joint venture between a U.S. company an(l Romania. The Romanian organization controls 55 percent of that venture and Control Data the remainder.







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12
TABLE 7.-U.S. EXPORTS OF CEREALS AND CEREAL PREPARATIONS TO THE NONMARKET ECONOMIES AND TO THE
WORLD, 1976, 1977, JANUARY-JUNE 1977, JANUARY-JUNE 1978, APRIL-JUNE 1977, AND APRIL-JUNE 1978 [In thousands of U.S. dollars]
January-June April-June
Source 1976 1977 1977 1978 1977 1978
9
Bulgaria --------------------------- 28,455 175 85 16,309 42 4, 07!1
Czechoslovakia --------------------- 69,630 8,936 8,903 24,029 58 24 024
German Democratic Republic --------- 48,742 20,246 11,510 60 071 ------------ 35: 176
Hungary --------------------------- 411 9,875 563 12: 280 499 12,18
People's Republic of China ----------------------------------------------- 30,874 ------------ 30,871
Poland --------------------- 346,737 197 686 65,925 116,052 33,786 69,644
Romania 74,039 36: 840 3,558 6,984 7 131
U.S.S. R ---------------------------- 1,346,938 848,629 517,857 1,010,784 233,810 561,291
Yugoslavia ------------------------- 155 129 80 577 16 371
Total ------------------------ 1,915,157 1,122,312 608,481 1,277,960 268,218 737,776
Total U.S. cereal exports to the world-- 10,910,926 8,754,798 4,477,001 2,254,113 (1) U.S. exports to cereals to the nonmarket economies as a share of
total cereal exports (percent)------- 17.6 12.8 13.6 ------------ 11.9 -----------' Not available.
Note: Data for 1976-77 are based on old schedule B, division 04; data for 1978 are based on new schedule E, division 04; data aie comparable.
Source: U.S. Department of Commerce publication FT-410 and Bureau of East-West Trade.
Also in April, the National Machine Tool Builders' Association held a trade exhibition in Moscow in cooperation with the U.S. Department of Commerce and the U.S.S.R. Chamber of Commerce and Industry. Fifty-four U.S. firms participated and sold more than $1.7 million worth of equipment. In addition, the U.S. firms reported a larcre number of inquiries and substantive meetings with potential customers from all parts of the Soviet Union. It is estimated that an additional $32.4 million worth of business will be generated in 1978 and 1979 as a direct result of the exhibition.
In May, East Germany sponsored a series of 2-day seminars in three major U.S. cities to explore possibilities for expanding trade between the two countries. Topics covered at the seminars included the relationship of East German economic planning and scientific policy to financing, licensing, and other procedures concerning trade in manufacturing processes and equipment in high technology fields. Technical seminars were also held involving specific industry sectors such as o tical instruments, printing and bookbinding machinery, machine tools, welding technology, and plasma-beam smelting.
On May 16, 1978, following receipt of a petition on May 3, 1978, filed by the Clothespin and Veneer Products Association, the U.S. International Trade Commission instituted investigations under seetion 406(a) of the Trade Act of 1974 to determine whether domestic market disruption exists with respect to imports of clothespins provided for in items 790.05 790.07 and 790.08 of the Tariff Schedules of the United States which are products of the People's Republic of China, the Polish People's Republic, and the Socialist Republic of Romania. Section 406(e)(2) of the Trade Act defines market disruption to exist within a domestic industry if "imports of an article like or directly competitive with an article produced by such domestic industry are increasing rapidly either absolutely or relatively so as to be a significant cause of material injury or threat thereof to such do-




13

mestic industry." On August 3, 1978, the Commission reported to the President its determination that, concerning clothespins from tlie People's Republic of China, market disruption exists with respect to an article produced by a domestic industry, within the meaning of section 406 of the Trade Act of 1974. Concerning clothespins that are the products of the Polish People's Republic or the Socialist Republic of Romania, the Commission determined that market disruption does
3
not exist.
The Coca-Cola Co. announced in May that it is building a plant in the Soviet Union to manufacture Samson, a fruit-flavored, highprotein drink made from NN7-bey, the liquid that remains after cheese is made from milk. Samson contains 2 percent protein, whereas milk has about 3!2 percent protein. The decision to locate the plant in the Soviet Union was apparently based on the availability of Nvhey in that country. The drink is currently produced and sold in three Latin American countries, but tber-e are no apparent plans to market it in the United States at this time.
On June 1, 1978, the U.S.-U.S.S.R. Trade and Economic Council announced that Dresser Industries had been awarded two major contracts by Soviet trade organizations for approximately $180 million worth of equipment and technology. Under one contract, the U.S. firm will supply equipment and technology for the manufacture of drill bits used in the drilling of oil and gas wells, along with a substantial quantity of machine tools. The second contract involves Dresser's Canadian subsidiary, which will supply centrifugal Coinpressors and related equipment for use by the U.S.S.R. oil ministry.
Approval for the sale of some of the items was temporarily suspended in July, as the U.S. Government considered its options in responding to the Soviet Government's convictions of political dissidents. At the same time, the President canceled the sale of a Sperry Univac computer to Tass, the Soviet news agency. Currently, it appears that the United States will not use economic sanctions in matters concerning U.S.-Soviet political relations. Export licenses have been approved for the entire Dresser contract. In particular, approval was given for export of a sophisticated electron-beam welding machine.
Finally, on July 7, the United States and Hungary exchanged Notes in Budapest which bring into force the Agreement on Trade Relations between the two countries. Negotiations began early in 1978, and the Agreement was signed on March 17. It was approved by the House of Representatives on May 22 and by the Senate on June 27. The Agreement reduces the present discriminatory tariffs applied by each country to products originating in the other to the most-favored-nation level. Bilateral trade, particularly in manufactured Lyoods 'will probably increase as a result. An analysis of the effects of MFN on one of Hungary's most important industrial export sectors, motor vehicle equipment, follows in a later section of this report.
3 With respect to imports from the Polish People's Republic, the Commfssion determine(] by a vote of 5 to I that market disruption does not exist. Chairman Parker determined that market disruption does exist within the meaning of section 406.




14

ANALYSES OF IMPORTS FROM THENONMARKETEcONOMY COUNTRIES
THATHAVE GROWING SIGNIFICANCE IN U.S. MARKETS
TUNGSTEN FROM CHINA
Tungsten was discovered in China in 1913, and the first deliveries were made to the United States in 1918. With the exception of the embargo period, China has been an important source for U.S. imports
4
of tungsten ever since. However, recent amounts are exceedingly small compared with tungsten imports from China in many of the pre-embargo years. In 1950, for example, tungsten imports from China were over 7.4 million pounds. China supplied 40 percent of total U.S. tungsten imports during the war years of 1940-44 and over 50 percent during the period 1948-50. Table 8 shows that U.S. imports of tungsten ore (TSUSA item 601.5400) from China have gradually increased from 81,000 pounds in 1973 to a postembargo high of 466,000 pounds in 1977. By pre-embargo standards, this is a relatively small amount and it accounted for only 6.5 percent of the 7.2 million pounds which the United States imported from all sources in 1977. However, because China has enormous tungsten reserves and has shown a renewed interest in international trade, it can be expected that U.S. imports will continue to increase in the future. World production and consumption
Tungsten, also called wolfram, is a semirare metallic element which has a bright gray to white color and a metallic luster. Deposits containing tungsten may also contain one or more of the following minerals: molybdenum, tin, copper, bismuth, antimony, silver, gold, lead, and zinc. Tungsten deposits are scattered throughout the world, but Bureau of Mines' estimates place the Chinese share at 53.5 percent of the 3,920 million pounds of total known world reserves. Other countries possessing tungsten include Canada with 12.1 percent of total known world reserves, the U.S.S.R. with 8.9 percent, North Korea with 6.4 percent, and the United States with 6.1 percent.' Most of the tungsten mined in the Soviet Union and the United States is recovered from tungsten-molybdenum ores, although a small amount of domestic tungsten is produced as a byproduct of copper, gold, and silver. In China, tungsten is recovered primarily from tungsten-tin ores, while in North Korea it is recovered from tungstencopper ores.
4The United States imposed a trade embargo on imports from China from December 17, 1950 to June 10, 1971.
5 U.S. Department of the Interior, Bureau of Mines, "Tungsten, A Chapter from Mineral Facts and Problems," 1975 edition, p. 4.







15

TABLE 8.-TUNGSTEN ORE: U.S. IMPORTS FROM CHINA AND LEADING SUPPLIERS, 1973-77, JANUARY-JUNE 1977, AND JANUARY-JUNE 1978

January-June
Source 1973 1974 1975 1976 1977 1977 1978

Quantity (1,000 content pounds)

China---- 81 281 310 377 466 228 310
Canada ------------------------------ 3,190 1,707 1,600 1,343 2,322 1,060 1,376
Bolivia ------------------------------- 2,182 2,041 787 550 1,581 702 1,032
Peru --------------------------------- 1,039 1,375 866 863 626 365 42
Thailand ----------------------------- 954 1,527 629 588 518 158 601
Mexico ------------------------------- 348 336 419 417 647 296 401
Total- 7,794 7,204 4 611 4,138 6,160 2,809 3,762
21758 3,966 1:959 1,163 1,034 434 602
Total, all countries -------------- 10,552 11,170 6,570 5,301 7,194 3,243 4,364
Value (thousands)
China--- $214 $1,095 $1,752 $2,256 $4,256 $1,994 $2,760
Canada ------------------------------ 7,555 6,400 7,862 7,656 18,191 6,762 10 429
4,659 7,266 3,838 2,423 12,264 4,403 8: 308
Peru --------------------------------- 2,064 5,413 4,166 4,564 5,235 3,006 363
Thailand ----------------------------- 2,050 5,114 2,901 3,073 4 498 1,184 5 046
Mexico ------------------------------- 745 1,475 1,914 2,166 3: 494 1,493 2: 106
17,287 26,763 22 433 22 138 47,938 18,842 29,012
5,750 13,933 9: 232 6: 182 7,989 3,400 4,790
Total, all countries -------------- 23,037 40,696 31,665 28,320 55,927 22,242 33,802
Unit value (per pound)
$2.64 $3,90 $5.65 $5.98 $9.14 $8.96 $8.90
Canada- 2.37 3.75 4.91 5.70 7.83 6.38 7.58
Bolivia ------------------------------- 2.14 3.56 4.87 4.40 7.76 6.27 8.05
Peru---- 1.99 3.94 4.81 5.28 8.36 8.23 8.64
Thailand ----------------------------- 2.15 3.35 4.61 5.22 8.68 7.49 8.40
Mexico ------------------------------- 2.14 4.39 4.57 5.20 5.40 5.05 5.25
Average--------------- 2.22 3.72 4.87 5.34 7.78 6.70 7.71
Other -------------------------------- 2.09 3.51 4.71 5.32 7.73 7.83 7.96
Average, all countries ------------ 2.18 3.64 4.82 5.34 7.77 6.86 7.75

Source: Compiled from official statistics of the U.S. Department of Commerce.

In addition to holding the world's largest reserves of tungsten,
China is also the world's largest producer. In 1976, China produced
an estimated 19.8 million pounds of tungsten, accounting for approximately 22 percent of total world production. Only about 20 to 35 percent of the tungsten production in China is consumed internally. The remainder is believed to be exported, primarily to the Soviet Union and Eastern Europe, and to a lesser extent to the industrialized West. The second largest producer is the Soviet Union, which produced an estimated 17.6 million pounds of tungsten in 1976, or approximately 19 percent of world output. Other nonmarket producers are Czechoslovakia and North Korea. Added together, the nonmarket economy countries account for 46 percent of total world tungsten production. The largest market economy tungsten producers in 1976 were Bolivia with 6.7 million pounds, the United States with 5.8 million pounds, and South Korea with 5.7 million pounds.
In contrast to its relatively minor position as a tungsten producer, the United States is the world's largest consumer of this mineral. In 1976, the United States consumed 16.1 million pounds, or nearly 20 percent of total world production. Other major tunVsten-consuming market economy countries are Japan, West Germany, the United





16

Kingdom, Sweden, and France. The nonmarket economy countries consumed 33.2 million pounds of tungsten in 1976, or 41 percent of total world production. The U.S.S.R. was the largest consumer in the group, with consumption very nearly equaling that of the United States. Other significant nonmarket consumers were China, Poland, North Korea, Czechoslovakia, Hungary, and East Germany.' Uses
The special physical properties which tungsten possesses have led to its use in a variety of areas. Tungsten has the highest meltingpOiDt of all metals, 3,410 degrees Centigrade, or three times that of copper and twice that or martensitic stainless steel. Moreover, tungsten outranks metals in tensile strength at temperatures above 1,650 degrees Centigrade. Tungsten also has good corrosion resistance, god electrical and thermal conductivity, and a low thermal expansion coefficient.
The major uses of tungsten are in carbides, 68 percent; in alloys, chiefly alloy steel, 15 percent; as a pure or substantially pure metal, 15 percent; and in various chemical compounds and other forms, 2 percent.' Tungsten carbide is used primarily in manufacturing machine tools, but a significant amount if also used by the mining industry in the manufacture of drill bits. Tun(rsten steel alloys are used principally in machine tools which shape metal by high-speed drilling, cutting, milling, or by hot-forming methods. In addition to the properties of tungsten mentioned above, tungsten-steel alloys possess wear and abrasion' resistance, shock resistance, and high strength at extremely high temperatures. Other tungsten alloys are used in machine tools, valves, turbine blades, and electrical contacts and welding applications. Pure or substantially pure tungsten is used in electric lighting, electronics, and electrical contact applications. Filaments of lightbulbs, distributor points of automobiles, welding electrodes, and X-ray tube components are examples of these uses. Tungsten chemicals are used in dyes, luminescent pigments, ceramics, and petroleum catalysts.
U.S. demand
The projected average annual growth rate of U.S. demand for tungsten is 4.4 percent through the year 2000 .8 This rate will result from an increased demand for numerically controlled machine tools and wear-resistant construction and mining machinery, all of which rely on tungsten. Given the unique physical properties of tungsten, it is doubtful that other materials can be found to replace it. Some possibilities for substitution are titanium carbide for tungsten carbide in metal-cutting operations, and fluorescent lights for tungstenfilament light bulbs.
U.S. sypply
U.S. production of tungsten ore varies widel from year to year, but in general accounts for about 50 to 60 percent of demand. However, the rate of U.S. production is not expected to keep up with the growth in demand, making the United States increasingly dependent on imports and sales from the Government stockpile in future years.
6 Consumption information is adjusted from data provided by the Bureau of Mines, "Mineral Trade Notes," vol. 74, No. 12, December 1977. T U.S. Department of the Interior, Bureau of Mines, "Tungsten, A Chapter from Mineral Facts and Problems," 1975 edition, p. 3.
8 Bureau of Mines' estimate in 1975.





17

The vast majority of U.S. tungsten production takes place at two mines, one in California and one in Colorado. The two companies operating these mines also operate tungsten mines in foreign countries. U.S. tungsten producers are granted a depletion allowance of 22 percent on domestic production and 14 percent on foreign production. In addition, U.S. tungsten producers are protected by Column 1 and Column 2 duty rates of 25 and 50 cents per pound, respectively.
When the trade embargo of China halted deliveries of tungsten from that country in the early 1950's, the U.S. Government began stockpiling tungsten in an effort to assure an adequate supply. At the end of 19741 the stockpile of 122 million pounds of contained tungsten was 7.5 times greater than U.S. consumption in that year. About 95 percent of the stockpile is tungsten concentrate, which requires further processing before it can be used. The stockpile is considered to be more than adequate to meet defense needs in a mobilization period, and if necessary, it could be supplemented by domestic production and imports from Canada and Mexico. The U.S. Government ceased purchasing tungsten for the stockpile in 1959. Since 1966, its official policy has been to offer surplus stocks of tungsten concentrate from Government inventories for sale after evaluation of the world tungsten market. Sales are made to both domestic and foreign customers. As a result of these activities, the United States was a net exporter of tungsten concentrates from 1969 through 1971. Prices
The world price of tungsten is highly influenced by the size of Chinese exports and sales from the U.S. Government stockpile. World exports from China have been rising in recent years, although prices as reflected by unit values appear to be in excess of international price levels. Table 8 shows that the unit value of U.S. imports of Chinese tungsten has been higher than the average unit value for imports from all countries. China makes many of its tungsten sales at its semiannual Canton Trade Fair. The price of Chinese tungsten at the October 1977 trade fair was reportedly up to 3.6 percent above international price levels, which caused some Western buyers to voice concern. However, at the most recent Canton Trade Fair in April-May 1978, the price of Chinese tungsten was reported to be more closely aligned with world price levels. The United Nations Conference on Trade and Development has recently been working on a program to stabilize world prices. No agreements have yet been reached, and previous attempts to monitor the tungsten market have been relatively ineffective, mainly because neither China nor the Soviet Union has participated.

MOTOR VEHICLE EQUIPMENT FROM HUNGARY
The United States accorded most-favored-nation status to Hungary in July 1978 and bilateral trade between the two countries is expected to increase as a result.9 One sector in which the Hungarians have invested heavily with the specific intention of producing items for export is motor vehicle equipment. Certain of these products may be expected to increase in importance in the U.S. market. The following
9 On July 7, 1978, the United States and Hungary exchanged Notes in Budapest that bring into force the Agreement on TraCe Relations between the two countries. The Agreement reduces the present discriminatory tariffs applied by each country to products originating in the other to the most-favored-nation tariff level.





18

discussion looks at the types of motor vehicle equipment which the United States has imported from Hungary in the past and some contracts which the two countries have recently concluded. U.S. demand situation
United States imports of Hungarian motor vehicle parts and tires have been increasing in recent years. This reflects both the expansion in the Hun(rarian motor vehicle industry and the development of increased economic opportunities in the United States as Hungary moved closer to receiving most-favored-nation status. U.S. imports of these items have traditionally consisted mainly of heavy rear tractor axles and pneumatic truck tires. However, during the past year, other items have appeared in the import statistics, and several contracts have been signed for products to be delivered in the future.
Heavy rear tractor axles remain the largest single industrial item imported from Hungary. Classified in the TSUS as "parts for agricultural tractors," these imports fell from $6.7 million in 1976 to $4.0 million in 1977. Imports in the first 6 months of 1978 were $3.0 million compared with $3.8 million in the corresponding period of 1977. The advent of MFN will probably have no effect on these imports, as agricultural tractor axles enter duty free under both Column 1 and Column 2.
U.S. imports from Hungary of pneumatic tires for buses and trucks fell from $1 million in 1976 to $0.7 million in 1977 (table 9). However, imports of these items in the first six months of 1978 were $1.5 million compared with $0.5 million in the corresponding period of 1977. Road vehicle tires from Hungary have faced a Column 2 duty rate of 10 percent. Although the Column 1 duty rate is 4 percent, it is not expected that imports of tires from Hungary will be significantly affected by the restoration of most-favored-nation status. A more important consideration will be domestic growth in transportation equipment, which will increase the demand for tires. The Department of Commerce estimates that the value of shipments of tires should increase by about 5.5 percent annually until 1982. Much of the expansion during the period will be due to an expected annual increase in demand for truck tires of about 5 percent. This will result from an increased use of pickup and panel trucks for primary and secondary family transportation, along with an increase in commercial truck usage arising from the need to move many commodities by highway transportation.
The bulk of U.S. tire imports from Hungary apparently consist of steel-belted radials for highway trucks. They are marketed in the United States under their Hungarian brand name, Taurus. Importers report the Hungarian tires to be of high quality and competitively priced. The Hungarian tire industry uses technology obtained through a license from the Austrian tire company, Semperit. The Semperit firm is Mi chelin-con trolled and enjoys an excellent reputatiGn.
In anticipation of being granted MFN status, Hungary recently concluded agreements to sell substantial amounts of bus and truck parts in the United States. Restoration of MFN status means that the duty on these items will drop significantly from 25 to 4 percent. One U.S. firm has already signed a 10-year agreement with Hungary involving about $300 million worth of trade in truck components. The Hungarians will provide truck axles and axle components to the U.S. firm for sale in world markets, while the U.S. firm will sell truck






19


transmissions and other components to the Hungarian enterprise. In addition, two other major U.S. firms have reported that they are in the process of negotiating with the Hungarians to import truck axles.
Zn

TABLE 9.-PNEUMATIC TIRES FOR TRUCKS AND BUSES: IMPORTS FROM NONMARKET ECONOMY COUNTRIES AND
LEADING SUPPLIERS, 1975-77, JANUARY-JUNE 1977, AND JANUARY-JUNE 1978

January-June
1975 1976 1977
1977 1978

Quantity (1,000 tires)
Hungary ----------------------------- 0 10 6 4 14
Yugoslavia --------------------------- 0 0 17 17 0
Romania ----------------------------- 0 0 1 0 0
Poland ------------------------------- 0 0 1 1 0
Czechoslovakia----------------------- 0 0 (1) (1) 1
East Germany ------------------------- 0 0 ---------------------------- 1
Total, N M E's ------------------- 0 10 25 22 15
France ------------------------------- 548 687 862 506 555
Japan -------------------------------- 290 757 1,098 532 692
Canada ------------------------------ 182 960 637 300 302
Other free world- 666 1,148 1,471 863 687
Total, free 1,686 3,552 4,068 2,201 2,236
Total, all countries-------------- 1,686 3,562 4,093 2,223 2,251
Value (thousands)
Hungary ------------------------------------------- $1,066 $717 $515 $1,482
Yugoslavia ------------------------------------------------------- 95 95 -------------Romania --------------------------------------------------------- 66 ---------------------------Poland ----------------------------------------------------------- 95 44 -------------Czechoslovakia --------------------------------------------------- 9 3 63
East Germany --------------------------------------------------------------------------------- 128
Total, NME's --------------------------------- 1,066 982 657 1,673
France ------------------------------- $50,979 71,108 92,810 53,782 61,720
Japan -------------------------------- 22,915 60,581 91,304 44,212 65,791
Canada ------------------------------ 26,535 92,996 78,357 39,411 34,935
Other free world ---------------------- 85,831 129,353 166,194 100,851 83,395
Total, free world ---------------- 186,260 354,038 428,665 238,256 245,841
Total, all countries -------------- 186,260 355,104 429,647 238,913 247,514

Less than 500.
Note: Figures may not sum to totals shown due to rounding.
Source: Compiled from official statistics of the U.S. Department of Commerce.

In early 1978, a U.S. bus manufacturer and a Hungarian foreign trade organization announced a joint effort to manufacture and market high-capacity articulated buses for U.S. urban transit systems. Articulated buses hinge at the center and can maneuver with relative ease in tight traffic and road conditions. Under t e terms of the agreement, the Huncrarian manufacturer, Ikarus, wjl produce the buses with U.S. drive components. The bus bodies will be shipped directly to the United States, where the U.S. firm will add seats, trim, sash, and paint, and act as the marketing agent. The buses will be sold with about 50 percent U.S. content and will demonstrate the compatibility of the Ikarus bus with U.S. components. Hungarian supply situation
The most important branch of Hungarian engineering production is the manufacture of highway vehicles and vehicle parts. The Fifth Five-Year Plan (1976-80) stresses the need for "the rapid increase





20

in the production of such goods that are competitive in world markets, modern, and are economically producible." '0 The development of the Hungarian motor vehicle industry has been strongly influenced by Soviet principles of specialization within the Council of Mutual Economic Assistance." As a result, Hungary produces no cars, but instead has concentrated on bus production. Hungary is also an important supplier of major mechanical components for lorries and buses and of electrical equipment and body fittings for cars built elsewhere in the Soviet bloc. Production of heavy road haulacre lorries is increasing in conjunction with the Romanian motor vehicle industry under an agreement with a West German firm. Hungary also produces tires for buses, trucks, and automobiles.
Hungarian bus production is significant even on a world scale. Expansion of bus and coach production absorbed 82 percent of all motor vehicle industry investment allocated under the 1971-75 Five-Year Plan. Bus production averaged 28-32 vehicles a day in 1975. Buses are produced under collaborative agreements with Volvo of Sweden and Steyr of Austria in which the Hungarian bus manufacturer, Ikarus, builds bus and coach bodies on chassis supplied by these two foreign firms.
Hungary's motor vehicle industry will undergo significant expansion during the current Five-Year Plan if all investment plans are fully implemented. The output of buses rose from over 10,000 units in 1975 to 11,000 in 1976. The 1980 production target is 13,000 units with 85 percent to be exported mostly to the Soviet bloc, but 10 percent will go to market economy countries. Hungarian heavy rear axles for trucks, tractors, and locomotives are well known; their output is scheduled to rise from 50,000 units in 1975 to 120,000 by 1980, with 90 percent of them to be exported. Expansion of the Taurus tire works is scheduled to be completed in 1979. Production of tires amounted to 120,000 in 1976, with 73,000 exported to the West. Output by 1980 is targeted at 500,000, with 160,000 scheduled for export. The United States is currently the major customer of these tires, followed by Holland, Denmark, Sweden, and the United Kingdom.
10 "The Fifth Five-year Plan (1976-80) of the Hungarian People's Republic, Critical Evaluation and Text," prepared for the U.S. Section of the Hungarian-U.S. Economic Council, p. 14.
11CEMA members are Bulgaria, Cuba, Czechoslovakia, East Germany, Hungary, Mongolia, Poland, Romania, and the U.S.S.R.







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45

INDEX
Each Quarterly Report to the Congress and the East-West Foreign Trade Board on Trade between the United States and the Nonmarket Economy Countries contains:
(1) Summary of developments in U.S.-NME trade for that calendar
quarter, with the summary of the fourth quarter as an annual review;
(2) Seven summary tables anti two figures describing the value, direction,
composition, anti individual country trade shares of U.S.-NME trade in that
calendar quarter;
(3) A series of appendix tables describing the leading items traded lby the
United States with each of the 12 NME countries covered, disaggregated to the 7-digit level of the respective import anti export schedules, through the
End of that calendar quarter.
Other subjects. covered periodically or on an irregular basis are listed below. All page numbers refer to the official USITC publication, with the exception of Report #4. Page numbers for that report refer to the copy published by the U.S. Government Printing Office.
Albania:~ U.S. imports anti exports, annual; No. 1, pp. 42-43 (incl. table); No. a'5,
p. 57; No. 9, p. 72; No. 13, pp. 52-53.
Aluminum: U.S. imports anti exports; No. 8, pp. 34-37 (ine. table). Aluminum waste anti scrap: U.S. imports; No. 14, pp. 26-30 (ine. table). Animal and vegetable products: U.S. imports; No. 6, pp. 17-21 (inc.. table). Antimony oxide: U.S. imports from China; No. 6, p. 34; No. 9, p. 33. Aspirin: U.S. imports; No. 6, p. 33. Bicycles: U.S. imports; No. 6, p. 50, Bulgaria: U.S. imports anti exports, annual; No. 1, pp. 39-41 (incl. table); No. 5,
pp. 53-55 (incl. table); No. 9, pp. 66-70, (incl. table); No. 13, pp. 49-52 (incl1.
table).
CJhemical products.: U.S. imports; No. 2, pp. 36-46 (incl. tables); No. 6, pp. 3 1-36
(inc. table).
Chicory roots, crude: U.S. imports; No. 6, p. 21. Chrome ore: U.S. imports from the U.S.S.R.; No. 9, p. 21. Clothespins: U.S. imports; No. 6, pp. 47-49. Clothing: U.S. imports; No. 6, p. 30; No. 8, pp. 25-27 (inc. table). Clothing, cotton: U.S. imports from China; No. 9, pp. 31-32. Coal:
U.S. exports to Romania; No. 13, p. 35.
U.S. imports from Polanti; No. 13, p. 28.
Commodity Credit Corporation (CCC).' No. 9, p. 37; No. 5, p. 32; No. 12, p. 24;
No. 13, pp. 17-18, p. 26, p. 34,
Copper conductor, insulated: U.S. imports from Yugoslavia; No. 6, p. 44; No. 7,
pp. 45-49 (inc. table).
Cropper, unwrought: U.S. imports from Yugoslavia; No. 9, p. 40; No. 13, p. 31. Cuba: U.S. imports anti exports, annual; No. 1, pp. 44-45, (incl. tablee; No. 5,
p. 56; No. 9, p. 71; No. 13, p. 53.
Czechoslovakia: U.S. imports anti exports, annual; No. 1, pp. 28-31 (incl. table);
No. 5, pp. 43-45 (incl. table); No. 9, pp. 53-56 (inci. table); No. 13, pp. 37-4 1
(ie. table).
Diamonds: U.S. imports from the U.S.S.R.; No. 9, p. 21; No. 13, p. 19.
Downs and feathers:
U.S. imports from China; No. 13, p. 22.
U.S. imports from Yugoslavia; No. 13, pp. 31-32.
Ferroalloys and nonferrous metals.' U.S. imports; No. 6, pp. 44-45; No. 7, pp. 37-44
(ine. tables).
Fibers, flax and hemp: U.S. imports; No. 6, p. 24. Fibrous vegetable materials.: U.S. imports from China; No. 6, pp. 23-24. Flax: see Fibers, flax anti hemp. Footwear:
U.S. imports; No. 2, pp. 18-25 (incl. tables); No. 6, pp. 51-52; No. 8, pID.
38-42 (incl. table).
U.S. imports from Polanti; No. 9, p. 34.
U.S. imports from Romania; No. 9, p. 4&Footwear, leather welt: U.S. imports from Romania; No. 11, pp. 17-25 (ie.
tables); No. 13, p. 36.
Foreign Trade Statistics; changes in 1978: No. 14, pp. 16-19. Gas, natural: U.S. imports from the U.S.S.R.; No. 9, p. 18. Generalized System of Preference (GSP).' No. 9, p. 41; No. 13, pp. 36-37.





46

German Democratic Republic: U.S. imports and exports, annual; No. 1, pp. 32-35
(incl. table); No. 5, pp. 49-52 (incl. table); No. 9, pp. 57-GO (incl. table); No.
13, pp. 41-46 (inc. table).
Glass, flat: U.S. imports from Romania; No. 5, p. 40. Glass, sheet:
U.S. imports; No. 6, pp. 37-39; No. 8, pp. 28-33 (incl. tables)
U.S. imports from Romania; No. 9, pp. 15, 49. Glassware: U.S. imports; No. 6, p. 39. Gloves, cotton work: U.S. imports from China; No. 13, p. 23. Gold coins: U.S. imports from Hungary; No. 1, pp. 36-37; No. 5, p. 46. Gold, nonmonetary: U.S. imports; No. 14, pp. 20-21 (incl. table). Golf cars: U.S. imports from Poland; No. 3, p. 16; No. 5, p. 32. Grain:
U.S. exports; No. 3, pp. 3-5 (inc. table); No. 4, pp. 2-4 (mnel. table); No. 5,
pp. 1-4 (inc. table); No. 6, pp. 1-5 (incl. table); No. 7, pp. 8-11 (incl.
table); No. 8, pp. 6-8 (inc. table); No. 9, pp. 11-13 (incl. tables); No. 12, pp. 11-28 (inc. tables); No. 13, p. 9 (inc. table); No. 14, p. 10 (inc. table).
U.S. exports to China; No. 9, pp. 27-29; No. 15, p. 12.
U.S. exports to Czechoslovakia, No. 9, p. 53.
U.S. exports to East Germany; No. 9,1)1p. 57-59; No. 13, p. 41.
U.S. exports to Poland; No. 5, p. 31; No. 9, p. 36; No. 13, p. 25.
U.S. exports to Romania; No. 8, pp. 12-13; No. 9, p. 50.
U.S. exports to the U.S.S.R.; No. 5, pp. 17-18; No. 9, pp. 11-13 (incl. table);
No. 13, p. 17.
Hams, canned:
U.S. imports; No. 6, p. 18; No. 7, pp. 22-28 (inc. tables).
U.S. imports from Poland; No. 9, p. 34; No. 13, p. 27. Ileaciwear: U.S. imports from China; No. 6, p. 51. Headwear, cotton: U.S. imports; No. 7, pp. 56-59 (inel. table). Hemp: see Fibers, flax and hemp. Hides and skins: U.S. exports; No. 12, pp. 28-35 (inel. tables). Hops: U.S. imports; No. 7. pp. 29-32 (incl. table). Hungary: U.S. imports and exports, annual; No. 1, pp. 36-38 (incl. table); No.
5, pp. 46-48 (incl. table); No. 9, pp. 6 1-65 (inc. table); No. 13, pp. 46-49
(incl. table).
Iridium: see Platinum group metals. Iron and steel: U.S. imports; No. 2, pp. 26-35 (inc. tables). Iron and steel, plates and sheets: U.S. imports from Poland; No. 13, p. 27. Labor content of U.S. exports to the nonmarket economy countries: No. 4, pp. 11-16
(inc. tables).
Labor content of U.S. imports from the nonmarket economy countries: No. 3, pp. 18-26
(incl. tables).
Machine tools: U.S. imports and exports; No. 10, pp. 18-54 (incl. tables). Manganese alloys: see ferroalloys. Metals and metal products: U.S. imports; No. 6, pp. 41-46 (inel. table). Metals, nonferrous, unwrought: U.S. imports from Yugoslavia; No. 13, p. 31. Motor vehicle equipment: U.S. imports from Hungary; No. 15, pp. 22-25 (incl.
table).
Mongolia: see People's Republic of Mongolia. Nickel, unwrought: U.S. imports, No. 14, pp. 22-26 (incl. table). Nonmetallic minerals and metals: U.S. imports, No. 6, pp. 37-40 (inc. table). Nuclear reactor parts: U.S. exports to Yugoslavia; No. 12, p. 5; No. 13, p. 30. Osmium: see Platinum group metals. Palladium: see Platinum group metals. Pantothenic acid: U.S. imports; No. 6, pp. 33-34. People's Republic of China: U.S. imports and exports, annual; No. 1, pp. 10-12
(incl. table); No. 5 ,pp. 24-29 (incl. table); No. 9, pp. 27-33 (incl. table); No.
13, pp. 19-23 (incl. table).
People's Republic of Montgolia: U.S. imports and exports, annual; No. 1, pp.
46-47 (incl. table); No. 5, p. 57; No. 9, p. 72; No. 13, p. 53.
Petroleum and petroleum products: U.S. imports from the U.S.S.R.; No. 4, p. 10;
No. 9, pp. 19-20; No. 13, p. 18.
Platinum, group metals: U.S. imports from the U.S.S.R.; No. 9, p. 20; No. 11,
pp. 33-45 (incl. tables); No. 13, p. 18.
Plywood, birch: U.S. imports from the U.S.S.R.; No. 6, pp. 22-23; No. 7, pp.
33-36 (incl. table).





47

Poland: U.S. imports and exports, annual; No. 1 pp. 18-20 (inch. table); No. 5,
pp. 30-33 (incl. table); No. 9, pp. 34-39 (incl. table); No. 13, pp. 23-28 (cine.
table).
Potassium chloride: U.S. imports from East Germany; No. 9, p. 59. Rabbit meat: U.S. imports from China; No. 6, p. 17; No. 9. p. 32. Rhodium: see Platinum group metals. Roman ia: U.S. imports and exports, annual; No. 1, pp. 2.5-27 (incl. table); No.
.5, pp. 38-42 (incl. table); No. 9, pp. 46-52 (incl. table); No. 13, pp. 32-37
(inci. table).
Ruthenium: see Platinum group metals. Silicon alloys: see ferroalloys. Soybeans:
U.S. exports to Romania; No. 9, p. 50.
U.S. exports to Yugoslavia; No. 13, p. 31.
Specified products: miscellaneous and nontenumerated products: U.S. imports; No.
6, pp. 47-52 (mcI. table).
Suits, men's and boyss: U.S. imports from Rormania; No. 9, p. 48. Sulfonamides: U.S. imports; No. 6, p. 31. Textile fibers and textile fabrics: U.S. imports; No. 6, pp. 26-30 (cine. table). Textile products: U.S. imports from Poland; No. 13, p. 27 (incl. table). Textiles: U.S. imports; No. 2, pp. 53-60 (incl. tables). Textiles, cotton:
U.S. imports; No. 8, pp. 18-24 (ie. tables).
U.S. imports from China; No. 6, pp. 26-29 (cine. table); No. 9. pp. 31-32.
Tin: U.S. imports from China; No. 2, pp. 47-52 (inel. table); No. 4, p. 10 (cine.
table); No. 5, pp. 2.5-26; No. 9, p. 31. Tobacco, oriental cigarette leaf:
U.S. imports; No. 11, pp. 46-54 (ie. tablEs).
U.S. imports from Bulgaria; No. 9, p. 66; No. 13, pp. 49-51. Tools:~ U.S. imports; No. 6, pp. 41-44. Tractors, agricultural:
U.S. imports; No. 7, pp. 50-55 (cine. tables).
U.S. imports from the U.S.S.R.; No. 13, p. 9.
Tungsten: U.S. imports from China; No. 5, p. 26; No. 15, pp. 18-22 (cine. table). Union of Soviet Socialist Republics: U.S. imports and exports, annual; No. 1,
pp. 13-17 (cine. table); No. .5, pp. 17-23 (cine. table); No. 9. pp. 18-26 (cine.
table); No. 13, pp. 9-19 (cine. table).
Wood and paper: printed matter:~ U.S. imports; No. 6, pp. 22-25 (incI. table). Wood furniture: U.S. imports; No. 11. pp. 26-32 (ie. tables). Woodpulp: U.S. exports; No. 12, pp. 35-44 (imd. tables). Yugoslavia: U.S. imports and exports, annual; No. 1, pp. 21-24 (incl. table);
No. 50, pp. 34-37 (incI. table); No. 9, pp. 40-45 (mnel. table); No. 13, pp. 28-32
(incl. table).
0




UNIVERSITY OF FLORIDA 3 1262 09121 1838




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