Significance of Trade Between The United States and Hong Kong, Singapore, Taiwan

and South Korea

United States

Sou rea

Hon ng

Taiwan

Singapore

Jeff BeckPisit KhumonJohn LeporeDavid Wright

Top 20 Partners in Total U.S. Trade

*Values are in millions of dollars

Country 19911992 1993 1994 1995 1996 1997

Canada 176,214189,224 211,661 242,844 271,596 290,103 319,968Japan 139,636145,227 155,138 172,643 187,822 182,794 187,212Mexico 64,40775,803 81,499 100,337 108,393 131,089 157,326China 25,24733,146 40,303 48,069 57,297 63,505 75,420United Kingdom 40,45942,893 48,168 51,957 55,786 59,941 69,085Germany 47,43950,069 47,494 50,973 59,238 62,440 67,580

Taiwan 36,20539,846 41,269 43,815 48,261 48,368 52,994Korea 32,52331,321 31,900 37,655 49,564 49,276 48,219Singapore 18,76020,938 24,476 28,378 33,894 37,063 37,771France 28,67929,390 28,546 30,318 31,455 33,101 36,601

Malaysia 10,00112,657 16,627 20,951 26,271 26,375 28,807Italy 20,33421,036 19,679 21,985 25,210 27,122 28,402Netherlands 18,32219,052 18,282 19,588 22,963 23,246 27,120Brazil 12,86513,360 13,537 16,784 20,272 21,491 25,540

Hong Kong 17,41618,870 19,428 21,137 24,523 23,831 25,405Belgium/Luxem. 14,90614,749 14,841 17,810 19,128 19,754 22,283Venezuela 12,83513,625 12,730 12,411 14,404 17,923 20,079Thailand 9,87511,518 12,308 15,171 18,013 18,534 19,951Philippines 5,7367,113 8,423 9,605 12,301 14,304 17,862Saudi Arabia 17,45717,538 14,369 13,701 14,532 17,779 17,803

Top 20 Purchasers of U.S. Exports

*Values are in millions of dollars

Country 19911992 1993 1994 1995 1996 1997

Canada 85,15090,594 100,444 114,439 127,226 134,210 151,767Mexico 33,27740,592 41,581 50,844 46,292 56,792 71,388Japan 48,12547,813 47,891 53,488 64,343 67,607 65,549United Kingdom 22,04622,800 26,438 26,900 28,857 30,963 36,425

Korea 15,50514,639 14,782 18,025 25,380 26,621 25,046Germany 21,30221,249 18,932 19,229 22,394 23,495 24,458

Taiwan 13,18215,250 16,168 17,109 19,290 18,460 20,366Netherlands 13,51113,752 12,839 13,582 16,558 16,663 19,827

Singapore 8,8049,626 11,678 13,020 15,333 16,720 17,696France 15,34514,593 13,267 13,619 14,245 14,456 15,965

Brazil 6,1485,751 6,058 8,102 11,439 12,718 15,915

Hong Kong 8,1379,077 9,874 11,441 14,231 13,966 15,117Belgium/Luxem. 10,78910,047 9,439 11,168 12,840 12,774 14,132China 6,2787,418 8,763 9,282 11,754 11,993 12,862Australia 8,4048,876 8,276 9,781 10,789 12,008 12,063Malaysia 3,9004,363 6,064 6,969 8,816 8,546 10,780Italy 8,5708,721 6,464 7,183 8,862 8,797 8,995Saudi Arabia 6,5577,167 6,661 6,013 6,155 7,311 8,438Switzerland 5,5574,540 6,806 5,624 6,227 8,373 8,307Philippines 2,2652,759 3,529 3,886 5,295 6,142 7,417

Top 12 Purchasers of U.S. Manufactured Products

PURCHASERS 1991 1992 1993 1994 1995 1996 1997

Canada 75,900 80,421 89,979 103,177 113,649 119,952 135,823Mexico 28,400 34,551 35,962 44,103 40,302 48,778 62,885Japan 31,386 30,260 30,266 35,309 43,598 46,969 47,621United Kingdom 20,327 21,000 24,665 25,078 26,506 28,658 33,997Germany 19,442 19,217 17,193 17,417 20,166 21,177 22,201

Korea, South 11,131 10,240 10,723 13,641 18,980 20,413 19,959Singapore 8,283 9,047 10,961 12,110 14,526 15,955 17,089Taiwan 10,031 12,213 13,125 13,853 15,613 14,404 16,830Netherlands 10,331 10,602 10,256 11,066 13,145 13,415 16,763France 13,685 13,109 12,099 12,639 12,983 13,199 14,769Brazil 5,178 4,968 5,294 7,057 10,230 11,279 14,594

Hong Kong 6,734 7,585 8,530 9,706 12,011 11,781 12,817

*Values are in millions of dollars

Top 20 Suppliers of U.S. ImportsCountry 1991 1992 1993 1994 1995 1996 1997

Canada 91,064 98,630 111,216 128,406 144,370 155,893 168,201Japan 91,511 97,414 107,246 119,156 123,479 115,187 121,663Mexico 31,130 35,211 39,917 49,494 62,101 74,297 85,938China 18,969 25,728 31,540 38,787 45,543 51,513 62,558Germany 26,137 28,820 28,562 31,744 36,844 38,945 43,122United Kingdom 18,413 20,093 21,730 25,058 26,930 28,979 32,659

Taiwan 23,023 24,596 25,101 26,706 28,972 29,907 32,629Korea, South 17,018 16,682 17,118 19,629 24,184 22,655 23,173France 13,333 14,797 15,279 16,699 17,209 18,646 20,636

Singapore 9,957 11,313 12,798 15,358 18,561 20,343 20,075

Italy 11,764 12,314 13,216 14,802 16,348 18,325 19,408Malaysia 6,101 8,294 10,563 13,982 17,455 17,829 18,027Venezuela 8,179 8,181 8,140 8,371 9,764 13,173 13,477Thailand 6,122 7,529 8,542 10,306 11,348 11,336 12,602Philippines 3,471 4,355 4,894 5,719 7,007 8,161 10,445

Hong Kong 9,279 9,793 9,554 9,696 10,291 9,865 10,288Brazil 6,717 7,609 7,479 8,683 8,833 8,773 9,626Saudi Arabia 10,900 10,371 7,708 7,688 8,377 10,467 9,365Indonesia 3,241 4,529 5,435 6,547 7,435 8,250 9,188Switzerland 5,576 5,645 5,973 6,373 7,594 7,793 8,405

*Values are in millions of dollars

Hong Kong:•Overview of the Economy•GDP by Sector•Industries•Exports•Imports

Hong Kong’s Partners in Export

33%

22%6%

4%

3%

3%

29%

ChinaU.S.JapanGermanyU.K.SingaporeOther

Hong Kong’s Partners in Import

36%

15%9%

8%

5%

5%

22%ChinaJapanTaiwanU.S.SingaporeSouth KoreaOther

Hong Kong’s Import Policy

• No tariffs and few government imposed obstacles to hinder U.S. Imports

• No preferential or discriminatory export and import policies affect foreign investors

Singapore:•Overview of the Economy•GDP by Sector•Industries•Exports•Imports

Singapore’s Partners in Export

19%

18%

9%8%6%

40%MalaysiaU.S.Hong KongJapanThailandOther

Singapore’s Partners in Import

20%

14%

14%5%4%

4%

39%

JapanMalaysiaU.S.ThailandTaiwanSouth KoreaOther

Singapore’s Import Policy

• Tariffs and taxes: more than 96 percent of imports enter Singapore duty-free

• Licensing: generally no licensing requirements

Taiwan:•Overview of the Economy•GDP by Sector•Industries•Exports•Imports

Taiwan’s Partners in Export

27%

22%15%

11%

25%

U.S.Hong KongE.U.JapanOther

Taiwan’s Partners in Import

30%

22%18%

30%

JapanU.S.E.U.Other

Taiwan’s Import Policy

• TARIFFS: moderate but declining tariffs, average rate of 7.5%; 5% VAT; 0.5% harbor tax on ocean freight

• LICENSING: import licenses required on certain products; bans on selected imports; restrictions on selected services; generally an open market

South Korea:•Overview of the Economy•GDP by Sector•Industries•Exports•Imports

South Korea’s Partners In Export

17%

13%

12%

58%

U.S.E.U.JapanOther

South Korea’s Partners in Import

22%

21%

13%

44%U.S.JapanE.U.Other

South Korea’s Import Policy

• Tariffs & taxes: average tariff rate is 8%; taxes assessed on imports include: l0% VAT, special consumption taxes on certain luxury items

• Licensing: approximately 5% of import categories are subject to licensing restrictions

U.S. Total Trade Balances With Individual Countries

*Values are in millions of dollars

1997/1996

Country/Region 19911992 1993 1994 1995 1996 1997 $

WORLD -66,723-84,501 -115,568 -150,629 -158,703 -170,214 -181,488 -11,274

ASIA -79,578-94,868 -109,698 -130,322 -124,245 -119,282 -141,450 -22,168China -12,691-18,309 -22,777 -29,505 -33,790 -39,520 -49,695 -10,175Japan -43,385-49,601 -59,355 -65,668 -59,137 -47,580 -56,115 -8,535

East Asia NICs -13,648-13,792 -12,071 -11,793 -7,773 -7,002 -7,939 -937Hong Kong -1,141-716 319 1,745 3,940 4,102 4,829 728Korea, South -1,514-2,043 -2,336 -1,604 1,196 3,966 1,873 -2,093Singapore -1,153-1,687 -1,120 -2,338 -3,227 -3,623 -2,378 1,245Taiwan -9,841-9,346 -8,934 -9,597 -9,682 -11,447 -12,263 -816

Balance of Payments: U.S. And Hong Kong

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Balance of Payments: U.S. And S. Korea

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Balance of Payments: U.S. And Singapore

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Balance of Payments: U.S. And Taiwan

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Potential Sites of Influence of The Tigers in the U.S.

• Corporate America

• Stock market

• American Worker

• Trade and Inflation

Strategies for an Economic Turn-Around for the Tigers

• Bubble economy

• Write off bad loans

• Education

• Technology

Projected Trade Levels (in Billions $)

1998 1999 1998 1999South Korea 95.5 100.3 132.0 138.6

Taiwan 106.8 111.0 111.5 115.9Singapore 132.4 122.6 125.0 119.2Hong Kong 210.8 215.0 191.9 196.7

Total Imports Total Exports