Global Market Opportunities for U.S. Moldmakers

Central & South America

June 4, 2014

Presented By:Michael D. Taylor, Senior Director, International Affairs and Trade

Upcoming Global Market Opportunities for U.S. Moldmakers Webinars

August 26 Brazil, Russia, India and China

November 18 Europe

• Macroeconomic Overview• Ease of Doing Business• Trade Flows & Market Opportunities• Trade Missions• Global Market Opportunities• Q&A

Agenda

Michael Taylor Michael Taylor is Senior Director for International Affairs and Trade at SPI: The Plastics Industry Trade Association. Mr. Taylor serves as SPI’s primary staff expert on international trade policy, programs, and activities. He advises SPI staff and membership on the impact of international trade law and regulatory actions, and advocates SPI positions before government officials and other policy makers. Mr. Taylor organizes and leads trade missions, provides trade facilitation services, and assists member companies in market entry planning and execution. Prior to his current responsibilities, Mr. Taylor was Director, Europe and Multilateral Programs of the Global Intellectual Property Center (GIPC) at the U.S. Chamber of Commerce. Mr. Taylor is a part-time lecturer in political science at Trinity Washington University in Washington, DC. He has taught undergraduate and graduate courses in American politics, comparative politics, international relations, political economy, and research methods for more than twenty years. He received his B.A. in International Affairs from the Elliott School of International Affairs at the George Washington University, and his M.A. in World Politics from the Catholic University of America.

Macroeconomic Overview

Total Annual Gross Domestic Product 2000-2013

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

-15

-10

-5

0

5

10

15

20

Colombia Argentina Peru Chile Costa Rica

Ra

te o

f G

row

th

Total Annual Gross Domestic Product 2000-2013

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

-15

-10

-5

0

5

10

15

20

Dominican Rep Venezuela Ecuador Guatemala Honduras

Ra

te o

f G

row

th

2013 (F) 2014 (F)

Food and beverages 1.1 3.7

Motor vehicles, trailers, semi-trailers 8.9 9.7

Wood products (excluding furniture) 3.6 1.4

Paper and paper products 0.4 2.4

Coke, refined petroleum products, nuclear fuel 5.6 1.5

Chemicals and chemical products 0.2 1.7

Rubber and plastics products 2.5 2.0

Nonmetallic mineral products 0.6 2.9

Basic metals 0.6 5.3

Fabricated metal products 1.2 2.7

Machinery and equipment n.e.c. 4.9 5.1

Office, accounting, and computing machinery 8.5 1.4

Electrical machinery and apparatus 1.1 0.9

Radio, television, and communication equipment 5.8 1.3

Medical, precision, and optical instruments 4.0 -3.2

Other transport equipment 7.7 12.9

Latin America Manufacturing Index 2.0 3.1

Manufacturing Production Forecast, 2013-2014 (Annual Percent Change)

Ease of Doing Business Index

Ease of Doing Business

Economy

Ease of Doing

Business Rank

Starting a

Business

Dealing with Construction

Permits

Getting Electricity

Registering Property

Getting Credit

Protecting Investors

Paying Taxes

Trading Across Borders

Enforcing Contracts

Resolving Insolvency

Chile 34 22 101 43 55 55 34 38 40 64 102

Peru 42 8 23 19 1 4 2 6 6 15 17

Colombia 43 14 8 22 4 9 1 12 20 25 2

Guatemala 79 23 14 9 2 1 25 8 24 11 16

Costa Rica 102 18 20 13 3 12 26 20 5 22 20

Dominican Republic 117 22 24 25 14 12 17 13 3 7 26

Argentina 126 27 32 20 20 9 17 25 29 2 14

Honduras 127 26 21 24 9 1 26 21 15 31 22

Ecuador 135 29 16 29 8 12 22 10 26 12 24

Venezuela 181 25 22 32 10 22 31 32 32 9 28

Trade Flows & Market Opportunities

4.3%

0.1%

3.2%

10.7%

3.0%

6.8%

22.6%

-1.5%

-5.2%

3.0%3.8%4.5%

-1.3%

15.2%

6.1%

-10.4%

8.5%

5.9%4.3%

-5.4%

3.5%

0.4%

Plastic Products Manufacturing All Manufacturing

Percentage Changes in Exports for the Top Ten U.S. Plastics Industry Export MarketsFirst Quarter 2014 Versus First Quarter 2013

Based on U.S. International Trade Commission data using NAICS Code 3261 for Plastic Products Manufacturing and NAICS Codes 31-33 for All Manufacturing

In 2013: – U.S. plastics industry exported goods valued at $705.9

million, up 0.3 percent from 2012

• Resins: $547 million (+1.9 percent)

• Products: $143 million (-5.7 percent)

• Machinery: $16 million (+4.7 percent)

• Molds: $425 thousand (-54.1 percent)

– Plastics imports were down 15.4 percent to $132 million

– Positive trade balance of $573.9 million

U.S.-Colombia Trade Statistics 2013

In 2013: – U.S. plastics industry exported goods valued at $563.9

million, up 0.1 percent from 2012

• Resins: $441 million (+1.3 percent)

• Products: $111 million (-3.6 percent)

• Machinery: $10 million (-11.3 percent)

• Molds: $1 million (+170.0 percent)

– Plastics imports were down 12.6 percent to $21.1 million

– Positive trade balance of $542.8 million

U.S.-Argentina Trade Statistics 2013

In 2013: – U.S. plastics industry exported goods valued at $517.6

million, down 4.6 percent from the same period in 2012

• Resins: $414 million (-10.7 percent)

• Products: $96 million (+31.2 percent)

• Machinery: $7 million (+61.7 percent)

• Molds: $137 thousand (-87.7 percent)

– Plastics imports were up 2.0 percent to $31.8 million

– Positive trade balance of $485.8 million

U.S.-Peru Trade Statistics 2013

U.S.-Chile Trade Statistics 2013

In 2013: – U.S. plastics industry exported goods valued at $516.6

million, down 10.7 percent from the same period in 2012

• Resins: $360 million (-8.5 percent)

• Products: $132 million (+4.2 percent)

• Machinery: $24 million (-58.8 percent)

• Molds: $723 thousand (+16.4 percent)

– Plastics imports were up 2.8 percent to $20.4 million

– Positive trade balance of more than $496.2 million

In 2013: – U.S. plastics industry exported goods valued at $440.5

million, up 4.3 percent from the same period in 2012

• Resins: $271 million (+0.6 percent)

• Products: $146 million (+13.1 percent)

• Machinery: $20 million (-7.7 percent)

• Molds: $4 million (+37.2 percent)

– Plastics imports were up 3.6 percent to $107.7 million

– Positive trade balance of $332.8 million

U.S.-Costa Rica Trade Statistics 2013

In 2013: – U.S. plastics industry exported goods valued at $424.9

million, up 5.2 percent from the same period in 2012

• Resins: $203 million (+5.9 percent)

• Products: $211 million (+2.7 percent)

• Machinery: $8 million (+40.3 percent)

• Molds: $4 million (+125.8 percent)

– Plastics imports were up 4.7 percent to $151.9 million

– Positive trade balance of $273.0 million

U.S.-Dominican Republic Trade Statistics 2013

In 2013: – U.S. plastics industry exported goods valued at $391.8

million, down 6.0 percent from the same period in 2012

• Resins: $245 million (+5.5 percent)

• Products: $134 million (-8.6 percent)

• Machinery: $10 million (-65.2 percent)

• Molds: $3 million (-72.4 percent)

– Plastics imports were up 48.4 percent to $4.3 million

– Positive trade balance of $387.5 million

U.S.-Venezuela Trade Statistics 2013

In 2013: – U.S. plastics industry exported goods valued at $277.1

million, up 0.1 percent from the same period in 2012

• Resins: $224 million (-1.4 percent)

• Products: $43 million (-0.4 percent)

• Machinery: $9 million (+44.7 percent)

• Molds: $766 thousand (+188.9 percent)

– Plastics imports were up 6.4 percent to $15.8 million

– Positive trade balance of $261.3 million

U.S.-Ecuador Trade Statistics 2013

In 2013: – U.S. plastics industry exported goods valued at $180.2

million, up 9.1 percent from the same period in 2012

• Resins: $81 million (+2.7 percent)

• Products: $97 million (+15.3 percent)

• Machinery: $2 million (-4.8 percent)

• Molds: $651 thousand (+22.0 percent)

– Plastics imports were down 6.8 percent to $14.3 million

– Positive trade balance of $165.9 million

U.S.-Honduras Trade Statistics 2013

U.S. Plastics Industry Exports to Central and South America 2000-2013

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

130

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

Colombia Argentina Peru Chile Costa Rica Dominican Rep Venezuela Ecuador Guatemala Honduras

U.S

. $

Mill

ion

s

U.S. Molds Exports to Central and South America 2000-2013

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

130

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Argentina Chile Costa Rica Dominican Rep Ecuador Guatemala Honduras

U.S

. $

Th

ou

san

ds

The Distribution of Molds Exports to Central and South

America 2013

36.1%

3.7%

25.6%

19.1%

15.5%

INJECTION MOLDS, NESOI

INJECTION/COMPRESSION MOLDS FOR RUBBER, PLASTICS OR SHOE MACHINERY

NON-INJECTION/NON-COM-PRESSION MOLDS

COMPRESSION MOLDS, NESOI

INJECTION/COMPRESSION MOLDS FOR RUBBER, PLASTICS, OR MAN-UFACTURE OF SEMICONDUCTOR DEVICES

U.S. Molds Exports to Central and South America by Type

2000-20132

00

0

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

130

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Injection Molds, NESOI Compression Molds, NESOIInjection/Compression Molds for Shoe Machinery Non-Injection/

Non-Compression MoldsInjection/Compression Molds for Semiconductor Devices

U.S

. $

Mill

ion

s

U.S. Machine Tools Exports to Central and South America

2000-20132

00

0

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

130

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Colombia Argentina Peru Chile Costa Rica Dominican Rep Venezuela Ecuador Guatemala Honduras

U.S

. $

Th

ou

san

ds

U.S. Machine Tools Exports to Central and South America

2000-20132

00

0

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

130

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Colombia Chile Costa Rica Guatemala

U.S

. $

Mill

ion

s

SPI 2013 Upcoming Trade Missions

Seoul, South Korea June 10-13, 2014 in conjunction with Korea Pack 2014 and KFPIC

Istanbul, Turkey December 4-7, 2014 in conjunction with Plast Eurasia 2014 and

PAGDER

Upcoming Global Market Opportunities for U.S. Moldmakers Webinars

August 26 Brazil, Russia, India and China

November 18 Europe

Thank You!

谢谢 Merci Vielen Dank

Grazie ありがとうございました 감사합니다 Obrigado Спасибо Gracias Teşekkürler

Questions & Answers

Michael Taylormtaylor@plasticsindustry.org202-974-5232