Opportunities for U.S. hardwood exports

wood, and other products, had a l6Vo share of their wbrld import markets l0 years ago. And, in spite of increased competition from Canada and the developing countries, the U.S. has been able to maintain that 16%o share.

lf,tooD PRODUCT exports,

I U specifically hardwood lumber, log, and veneer exports, represent an opportunity for many of you.

Our country must import to survive in today's world. Gone is the day, if it ever-was here, when America-was totally self-sufficient. To buy those imports we must export. And we must aggressively export competitive products in a world which is increasingly becoming more competitive itself.

So how are we doing? Not very well! The country had a trade deficit, F-q! is, imports exceeded exports, of $37 bilf ion in 1979. And a 1980 deficit of over $40 billion is expected. In 1969, the U.S. had a 22Vo share of the world's total exports. Today, that market share has dropped to l7%o.

So how is the wood products industry doing? The answer-is better!

The U.S. exported $3.6 billion in wood products last year, up 507o from the year before and up 4007o in the last 10 years. U.S. wood products exports, that is, softwood and hardwood logs, lumber, veneer, ply-

U.S. hardwood exports are small relative to domestic production. And they are also small relative to total wood exports. Yet they are exceedingly important to the industry because

Story at a Glance

Hardwood export market growing . economic overview encouraging . exports to Japan forecast to increase 425o/o of their high unit value, their profit- ability, ti'eir effect on dorirestic prices, their past growth and their future growth potential.

In 1979 the U.S. exported $422 million in hardwood products. That breaks down as follows: hardwood lumber-$206 million; hardwood logs-$138 million; and hardwood veneer- $78 million.

In 1980, the 5 month fisures for these products are up 3l%o in total, with lumber, logs, and veneer showing 38Vo, lTVo and 427o increases respectively.

Now what has been happening to the U.S. hardwood producer in the world market? Here again the U.S. looks pretty good. Let's compare world market shares over the last l0 years.

Our world position in hardwood log exports is small, orily l%o. But we have been able to maintain it over the last l0 years. For hardwood lumber, U.S. position has increased from 7 to 9Vo. For total veneer. almost all of which is hardwood, it has increased from 15 to 35Vo in the last l0 years.

Considering these points in total, one can clearly conclude that the U.S. position in world hardwood trade is growing. So where does this hardwood go?

On a dollar value basis. 6l%o of our lumber, 807o ofour logs, and 897o of our veneer are going to Europe. Canada gets most of the rest of our exports with Japan being about the only other important market.

So let's talk about Europe, more specifically, the most important buyers, the European Communitythe nine countries which include Belgium, Luxembourg, Netherlands, Denmark, France, West Germany, Italy, the UK and lreland. And I will

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