Exports of Principal Products from Mexico in 1936 and January-June 1937

Acting Commercial Attaché A. R. Randolph, Panama

The general economic situation in the Republic of Panama throughout 1937 was unusually good, the total volume of domestic and foreign commerce having attained the highest level reached in any year since the beginning of the Republic. The economic well-being of the country was manifest in the building and construction activities that in the aggregate surpassed any previous year.

The outlook for the immediate future is good, considering the increased prosperity of the country and the steady opening of the interior to travel. If no serious interruption occurs in the tourist trade, 1938 should provide favorable business opportunities for American manufacturers, especially for those producing perfumes, medicinals, paints, and varnishes.

There has been very little industrial development in the Republic of Panama and, with respect to chemicals, it is important only as a consumer of finished products.

DOMESTIC PRODUCTION

Domestic manufacturing consists principally of soap, alcohol and alcoholic beverages, furniture from native hardwoods, and the shoe industry, which relies entirely upon domestic tanneries for its soleleather requirements.

The production of alcohol has increased steadily during the last 5 years, and sales of 229,722 gallons in 1937 were reported through the Oficina de Seguridad of the city of Panama, compared with 215,067 gallons in 1936.

RECENT DEVELOPMENTS

Private building and construction increased markedly during 1937 over 1936. In the city of Panama alone, permits were granted for the construction of 34 apartment houses and 157 residences, the total value of permits having increased 45 percent over 1936. Extensive public works also were carried out, for which the Panamanian Government was reported to have spent $1,500,000. As the demand for paints and varnished is met by imports, the extensive building, repairing, and new construction resulted in increased imports of paints and varnishes. The construction of new residences and the equipping of a large new Government normal school and a new hospital helped to stimulate the domestic furniture industry, thereby reacting favorably on the demand for imported varnishes and polishes.

According to the latest official figures for 1936, Panama imported 315 metric tons of ready-mixed paints, including oils, paste, and liquids, valued at $67,240. Of the total value, 77 percent originated in the United States, followed by England with 28 percent, and Japan furnished 10 tons, valued at $1,000. Practically all of the 80 tons of varnishes and lacquers imported, valued at $34,700, came from the United States. Cold-water paints amounted to 62 tons, valued at $8,000, of which the United States furnished 50 and England 7 tons.

IMPORTS

Other important chemical products imported were perfumery for the tourist trade, fine toilet soaps, proprietary medicines, and pharmaceuticals.

Perfumes and toilet preparations. The value of the imports of perfumery, extracts, and essences having an f. o. b. value of 2 cents or more per gram in the port of origin was approximately $440,000 in 1937, of which France supplied $414,000. Imports of eau-de-quinine and hair tonics in 1937 were valued at $13,400 of which the United States supplied $12,300. Colognes and toilet water imports were valued at $54,400, of which $37,900 came from France and $2,700 from the United States. Of the total importation of creams and lotions in 1937, valued at $29,800, the United States furnished $25,300, France $2,500, and England $800.

Rouges, lipsticks, and eyebrow pencils imported in 1937 amounted to $19,900, of which the United States furnished $14,300, France $3,800, and Japan $200. Of the total imports of nail enamel, valued at $3,800 in 1937, the United States accounted for $3,700.

Imports of dentifrices have advanced steadily the last few years to over $51,100 in 1937, of which the United States furnished $47,700 and Japan $2,400. Total imports of talcum powder were valued at $18,800, of which $13,700 came from the United States and $3,600

from England. France, however, furnished the bulk of the rice. powder imported, the total of which was $42,300 in 1937.

Soaps. The domestic soap industry accounts for a large proportion of ordinary washing soap consumed and utilizes approximately $850,000 worth of imported materials annually. Nevertheless, imports of washing soap, practically all from the United States, almost doubled in 1937, amounting to 430 tons valued at $47,000. The total value of the 1937 soap imports, including toilet soap, shampoos, shaving soaps and creams, ordinary washing soap, and polishing soap, amounted to $156,000, of which the United States supplied $124,400. Insecticides.-Imports of insecticides, although still small, are increasing, and were valued at $15,300 in 1937-an increase of 54 percent over 1936. Japan has become the most important supplier of insecticides in powder and paste form, and the United States leads in supplying liquid insecticides.

Pharmaceuticals and medicinals.-Complete official statistics of imports of pharmaceutical and proprietary medicines are not available, but it was estimated that the value imported in 1937 was between $350,000 and $400,000, of which the United States supplied approximately 70 percent.

The United States was the principal supplier of the $20,800 worth of quinine and compounds imported in 1937, and Germany was next. The bulk of the $21,200 worth of cod-liver oil and preparations imported also came from the United States.

ARGENTINA

Assistant Trade Commissioner Joe D. Walstrom, Buenos Aires

Argentina had an exceptionally prosperous year in 1937, owing to heavy exports and high commodity prices, and these favorable conditions were reflected in all branches of the domestic industry. An accurate index of the increased activity is given by chemical imports in 1937 which had a tariff value of 97,806,000 pesos, the highest total since 1929. Most phases of the Argentine chemical industry depend on the elaboration of imported raw materials. Lower returns for the new crops, and declining quotations in certain export products have become evident since the latter part of 1937, so that there is a probability of reduced imports and restricted activity for 1938.

NEW DEVELOPMENTS

New developments in 1937 included the completion of two tartaric acid plants near Mendoza which are expected to supply the domestic requirements and may eventually substantially lessen exports of wine byproducts; a further slight trend toward domestic elaboration and production of all chemical lines in which the national industry engages; and, in the chemical consuming line, the opening of the new "Ducilo" rayon-yarn factory under American auspices; and the construction in Buenos Aires of a factory for the manufacture of plastic specialties.

Developments in 1938 will include the completion of two additional sulphuric-acid plants, with a further range of chemical products to be elaborated in connection with one of them, and the possibility of increased casein to be utilized in the manufacture of artificial wool.

Argentina is practically self-sufficient in such lines as sulphuric nitric, hydrochloric and (within a short time) tartaric acids, alcohol, insecticides and disinfectants, pharmaceuticals and medicinal specialties, toilet preparations, perfumery, animal biologics, and carbon dioxide, as well as fulfilling a large part of the total demand in other

items.

DOMESTIC INDUSTRY

During the past year the Government published the tabulations of an industrial census taken the latter part of 1935, which survey showed 929 establishments engaged in the chemical industry (including tanning materials), employing 16,622 persons, and with a capital investment of over 128,000,000 pesos. From the standpoint of investment, the following items were outstanding: Tanning materials, 28,000,000 pesos; soap (except toilet), 15,000,000; pharmaceutical preparations and medicinals, 15,000,000; perfumes and toilet articles, 11,000,000; industrial alcohol, 11 000,000; paints and varnishes, 8,000,000; matches, 7,000,000; and compressed and liquid gases, 6,000,000. Capital invested in some of the chemical-consuming industries was as follows: Foodstuffs, beverage, and tobacco, 1,034,000,000 pesos; textiles, 334,000,000; forest products, 102,000,000; paper and paper products 37,000,000; graphic arts, 112,000,000; petroleum and derivatives, 212,000,000; rubber products, 23,000,000; leather and leather products, 62,000,000; cement, ceramics, and glass, 71,000,000; metal manufactures, 169,000,000; and machinery and vehicles, 210,000,000.

PRODUCTION OF EXPORT

There are several products of general interest to the chemical industry in which Argentina is an important exporter; in fact, the country is the world's largest producer of linseed and casein, and it is also an important supplier of packing-house byproducts.

Casein. There was a declining foreign demand accompanied by a downward trend in prices for casein during 1937. Total shipments amounted to 16,121 metric tons, compared with 19,933 for the preceding year. Germany and the United Kingdom continued to be the principal buyers, and Japan superseded the United States and took third place. Stocks on hand at the end of the year approximated 6,000 tons, a substantial advance over the previous year. At the beginning of 1938, machinery was imported for a preliminary processing of casein before shipment to Italy for use in the manufacture of "lanital."

Packing-house byproducts. The important meat-packing industry exported the following products: Fertilizers, 26,811 metric tons; bones, 86,831; dried blood, 13,709; glycerin, 1,589; stearin, 4,319; and glue, 170. In general, the United States is the outstanding purchaser, followed by several European countries.

Linseed oil. The 1936-37 linseed crop was estimated at 1,935,600 metric tons and 1937 exports amounted to 1,801,281 tons. Because of unfavorable growing conditions, the 1937-38 crop was forecast at 1,505,300 tons. Exports to the United States in 1937 exceeded the 1936 total of 365,355 tons. During 1936, the vegetable-oil industry used 18,212 tons of linseed to produce 5,264 tons of oil.

PRODUCTION FOR LOCAL CONSUMPTION

Acids. Argentina is largely self-sufficient with respect to the production of sulphuric, nitric, and hydrochloric acids. Existing commercial plants account for an annual output of 20,000 tons of 95 percent sulphuric acid, and the Government Sanitary Works Department produces about the same amount of 70-percent acid to be utilized in the manufacture of coagulants for water-supply systems.

A plant is being erected to produce high-concentrate sulphuric acid for Government petroleum-refining activities, and a large commercial company has another plant under construction which will start with the production of sulphuric acid and the processing of sulphur products, later expanding into other chemical lines.

Tartaric, acetic, and citric acids, are the principal imports, although as soon as the two recently constructed tartaric-acid plants are in production imports of that acid will diminish to negligible amounts. Alcohol.-Latest official estimates for production of alcohol cover 1936 with 17,071,960 liters of 100° alcohol from molasses, 3,674,533 from cereals, and 3,151,956 from the wine industry. The consumption of denatured alcohol amounted to 10,998,430 liters-a decline from 1935 figures apportioned as follows: Heating, 7,530,789 liters; varnishes, 2,361,895; vinegars, 484,579; illumination, 283,257; medicinal use, 261,619; motor fuel, 19,140; carburants, 2,207; and chemical products, 54,944. Alcohol used in perfumes and toilet waters totaled 558,075 liters.

Other solvents.-The domestic industry was reported to supply the demand for 88-percent ethyl acetate, although domestic production of butyl acetate or butyl alcohol has not progressed beyond the laboratory scale. The petroleum industry produces naphtha, and small amounts of crude naphtha containing benzol, toluol, and xylol also have been produced by a local gas company. One firm manufactures acetone, but most of the requirements are supplied by imports, which have increased substantially.

Toilet preparations. It was estimated that 90 percent of the toilet preparations consumed were made within the country, even though most of the basic components are imported. Perfumes, creams, rouge, lipstick, eye pencils, hair dressings, manicure preparations, dentifrices, lotions, deodorants, and depilatories are all prepared locally. Apparently, only a few items are able to surmount the high protective tariff and obtain sales because of their international reputation.

American toilet preparations, practically all of which are compounded locally, are well known throughout Argentina.

Pharmaceuticals.-Less than one-fifth of the medicinal preparations and pharmaceutical specialties consumed are imported, the large remainder being elaborated and packaged locally from foreign raw materials. Imports of packaged goods are restricted largely to those lines having a negligible volume of trade and to a few high-quality items, such as biologicals, some of which are duty-free. A wide range of American proprietary brands are elaborated within the country. Competition from local French, German, Italian, and Argentine firms is active.

Insecticides, disinfectants, and fungicides.-Practically all household insecticides used are compounded locally from imported concentrates. Experiments continued on the cultivation of pyrethrum for commercial purposes, but, so far, these have been unsuccessful. Total annual