Synthetic resins and their raw materials / A survey of the types and uses of synthetic resins, the organization of the industry, and the trade in resins and raw materials, with particular references to factors essential to tariff consideration. Under the general provisions of section 332, title III, part II, Tariff act of 1930.

by United States Tariff Commission

13. THE UNITED STATES TARIFF AND INTERNATIONAL TRADE IN SYNTHETIC RESINS

Synthetic resins enter into the foreign trade of the United States only to a small extent. This becomes apparent if a comparison is made between the United States production of these resins and our imports and exports of them. Table [13] gives the imports and production of synthetic resins in the United States for 1934 through 1937. Exports are so small that they are not separately reported.

Table 13.—Synthetic resins: United States production and imports, 1934-37

[Pounds]
	1934	1935	1936	1937
Production in the United States1	56,059,489	95,133,384	132,912,821	162,104,713
Imports into the United States	2 19,795	2 21,120	3 626,608	3 673,880

¹ Does not include coumarone and indene resins, sulfonamide resins.

² Does not include imports of vinyl acetate resins which were not shown separately until 1936.

³ Includes vinyl acetate resins and all other types imported.

The small size of the international trade in synthetic resins is also emphasized if we compare the imports of all synthetic resins with the imports or exports of some of the important raw materials used in their manufacture. Table [14] makes such a comparison.

Table 14.—Comparison of international trade of the United States in synthetic resins and in certain raw materials for resins, 1934-37

[1,000 pounds]
Imports into or exports from the United States	1934	1935	1936	19371
Imports:
Resins	20	21	627	674
Crude cresylic acid2	7,332	7,010	13,794	16,745
Crude naphthalene	47,995	48,455	39,806	52,664
Crude glycerin	15,081	8,220	11,149	13,441
Refined glycerin	2,214	69	3,447	7,535
Exports:
Phenol	329	323	149	(3)
Formaldehyde	2,597	2,598	1,844	2,865

¹ Preliminary.

² Conversion factor 8.7 pounds per gallon.

³ Not available.

There are three factors that together largely account for the small size of our foreign trade in synthetic resins. As a result of the comparative youth of the resin industry, the complicated patent situation, and the substantial tariff rates upon imports of resins into the United States, domestic producers have experienced little competition from abroad. The first two of these forces plus the tariff barriers of other countries have caused them to pay little attention to export markets. But it should be observed that both of the first two forces will become less important with the passage of time. When home markets have been more fully exploited, problems of production have become less pressing, and most of the basic patents on resins have expired, international trade in synthetic resins may be expected to increase from its present low levels. If this occurs, the United States, with its large scale production for the home market and with its generally favorable position with regard to the raw materials and the technical skills necessary, is more likely to become a net exporter than a net importer of synthetic resins.