MARKETS loss, others at barely above t h e breakeven point. Despite a billion-dollar export business in chemicals t h e dye industry has had a n e t loss of some $60 Rate for first t w o months this y e a r w a s close to $1 million in annual sales for export over billion v o l u m e ; t r a d e a g r e e m e n t s r u n n i n g into obstacles t h e past six years. Pesticide Exports. T h e difficulties T^XPOTTS of chemicals a n d related maintermediates production is widely experienced in the world market for " terials continued to do well during used by the military a n d by industry, American dyes probably is n o t shared the first quarter this year after having and that their tariff rates were already by insecticides and related materials. The Bureau of the Census has just set a record of more than $1 billion in cut sharply (in 1 9 5 1 ) . 1954. In t h e first two months this The intermediate rates were cut from shown that pesticide exports increased year they were $163.7 million. Many 7 cents per p o u n d plus 4 0 % ad valorem from 243,403,000 pounds in 1953 to types of products are sharing in move- to 3Vo cents plus 2 5 % . As a result, 275,063,000 pounds in 1954. From a ment overseas, particularly insecticides, their imports increased from $2 mil- poundage standpoint copper sulfate other farm chemicals, and pharma- lion in 1952 to $4.7 million in 1953, was t h e largest single item among these ceuticals. and further last year to an annual rate shipments although its volume continLatin America is figuring conspicu- of $5.7 million. Larger imports of in- ued to fall off. T h e largest increase ously in this trade upturn, as might b e termediates came not only from Japan, was shown by D D T , exports of which expected in view of the drive cf private but also from Germany, Great Britain, last year increased some 4 5 % to 42,695,000 pounds. That Latin America and government agencies to step u p and elsewhere. and other nations are learning the use financial and technical assistance to of the newer products will b e seen in those countries. Shipments of American goods to Venezuela alone last year Exports, Chemicals & A l l i e d Products the 4 2 % increase recorded in the exports of miscellaneous agricultural inattained a total of $900 million, and (Thousands of dollars) secticides. petroleum interests here look for this 1954 1953 Canadian Tariffs. Hopes of t h e figure to go to $1 billion soon. $ 63,208 $ 57,393 new chemical industry in Canada for Petroleum has made Venezuela a Jan. 56,273 high tariff rates t o protect their markets 73,216 major export market- for American Feb. 66,601 were rudely shaken last week when t h e 66,613 goods, chemicals included, a n d t h e p e - March 68,459 Canadian finance minister announced 103,184 troleum people here naturally are o p - April 71,700 that rate concessions on chemicals 86,590 posed to what they term restrictive May 70,433 would b e less than those recommended 90,425 curbs on Venezuelan oil. For the same June 65,670 b y the Tariff Board. Some other in87,314 July reason b u t involving different prod- Aug. 62,260 85,387 dustries, notably woolens and woructs, certain political and industrial Sept. 77,504 steds, were denied increases altogether 81,626 proponents of greater trade are sup- Oct. 70,508 93,035 porting further cuts in American tariff Nov. 69,931 in protective tariffs. 86,120 Board had recommended that t h e rates which they hope can be achieved Dec. 82,305 85,995 free entry of polyethylene resins a n d $819,037 $1,002,713 through t h e Reciprocal T r a d e Agree- Total phenol aldehyde be ended a n d a tariff ments. T h e bill to extend these agreeimposed. The finance minister instead ments (H.R. 1) is an administration measure and has passed t h e House. Current Production. Through its reduced the Canadian rate on polyIt has yet to b e approved by t h e association the organic chemical indus- ethylene from 10 to 7.5%, t h e latter Senate. try asserts that its production of inter- t h e maximum charged on other resins. The Tariff Board h a d asked for a Tariff Cuts Opposed. T h e Trade mediates is far below t h e level neces10% tariff rate on ethylene glycol Agreements extension bill was a p - sary to meet defense needs, although proved by t h e Senate Finance Com- the capacity is there. T h e same situa- which is now admitted free b y t h e mittee. Should the Senate n o w make tion prevails in dyes, Lenher told the Dominion. The government has not it effective May 1 instead of July 1, a reciprocity group on April 1. Domes- acted on this request. If it agrees, new agreement with Japan on tariffs tic production of one important class, however, to the 10% rate then it will would b e made impossible. These the anthraquinone vats, is said to be have to be renegotiated under proordinarily would be subject to slashes far below t h e mobilization goal of 48 visions of the General Agreement on Tariffs and Trade with the principal under tariff cutting authority granted million pounds. to President Eisenhower. Chemical United States production of phenol, supplying nation. Bulk of Canada's and textile manufacturers are opposing carbon tetrachloride, a n d methanol is ethylene glycol imports have come from deep tariff cuts to Japan, where wage considered to b e materially below the t h e United States. rates in the textile industry are reported level supposed t o b e necessary for deAccording to proposed tariff changes to average 12 cents an hour against fense. Our output of phenol last year as published in the Financial Post, a $1.40 in t h e United States. 7.5% rate placed on phenol-aldehyde was 408.3 million pounds. That of Coal tar chemicals are considered methanol was 1112 million pounds, and represents the first straight increase in any tariff item proposed b y Canada among other things in the proposed carbon tet, 233.7 million pounds. trade agreement with Japan, and t h e SOCMA contends that the dye in- since t h e war. I t results from the fact Synthetic Organic Chemical Manufac- dustry finds itself in a critical situation that phenol was placed on a "made in turers Association contends that these as t h e result of severe foreign competi- C a n a d a " basis, making imports autoare essential to defense production. tion, the burden of expanded capacity matically dutiable a t 20%. T h e antiThe association president, Samuel to meet defense needs, and reduced dumping could also b e placed on their Lenher, informed the committee for profit margins. Some manufacturers in imports if sold in Canada below t h e reciprocity information that coal tar this field are said to have operated at a selling price in the United States.
Export Volume Maintained
1916
CHEMICAL
AND ENGINEERING
NEWS
