U.S. Chemical Surplus Dropped Sharply In 2001

Abstract

The U.S. chemical Industry, already suffering from depressed demand in 2001, got no help from foreign trade last year. Exports rose minimally, and that growth was vastly outpaced fay the rise in imports from foreign producers, sending the chemical trade balance to its lowest level in decade. According to data from the Commerce Department, in 2001 the value of exports of chemicals and allied products rose just 0.6% to $80.2 billion. Meanwhile, imports rose 7.1% to $78.9 billion. The result was a 78.7%, or $4.70 billion, slide in the chemical trade surplus, to $1.29 billion. Two factors contributed to the decline: the strength of the dollar against foreign currencies, which shows no sign of abating, making U.S. products more expensive overseas and overseas products cheaper and more competitive in the US.*, and slowing overseas economies, which cut demand for U.S. exports. A third factor also affected two chemical sectors: inorganic ...