Based on the strength of record-level oil and grain prices, Louisiana's worldwide merchandise exports showed a sharp spike in value during the first six months of 2008, according to a report issued today by the World Trade Center of New Orleans.

Louisiana’s first-half 2008 export shipments rose 64.4 percent to $22.0 billion over the same period in 2007, according to the WTC report. The state achieved record export years in both 2006 and 2007 and appears headed for another one in 2008 based on the first six months of shipments. By comparison, the increase in total vessel weight for Louisiana’s exports for the January-June period in 2008 was approximately 8 percent, compared to the first six months of last year.

Agricultural products, petroleum and coal, chemicals, processed foods, and machinery ranked as Louisiana's top five export sectors for the January-June 2008 period, all of which registered double or triple-digit percentage gains in value over the first six months of 2007.

"The state's export performance continues to be extremely strong, but we need to be realistic in looking into the future as much of the world economy has been slowing down,“ said Larry Collins, Director of International Services with Louisiana Economic Development. "The export increases we have witnessed are being driven largely by the high oil and agricultural prices, as well as the weakness of the U.S. dollar in recent years.”

Louisiana's principal export markets in the first half of 2008 were Mexico, Japan, China, the Netherlands, Canada, and Egypt.

The WTC report was generated by the World Institute of Strategic Economic Research (WISER) from U.S. Census Bureau data. It covers the exports of both Louisiana-originating products and some major commingled bulk commodities (especially grain and coal) that are produced in other states, shipped abroad from Louisiana's ports, and recorded as Louisiana exports because of the difficulty of identifying the actual states of origin.

The value of export shipments of agricultural products through Louisiana’s lower Mississippi River ports – which account for over 50 percent of U.S. grain exports – continued strong in the first half of 2008. Total agricultural exports reached $8.3 billion, a 50.7 percent increase over the same period one year earlier, although the vessel weight of those shipments actually declined slightly. It is not yet clear what impact the July 23 oil spill in the river in the New Orleans area and temporary closure of the river to shipping had on the state’s exports, although the spill has now been largely cleaned up and ships are transiting the river at their normal rate.

After agricultural products, Louisiana's largest exports for the January-June 2008 period were petroleum and coal products ($5.5 billion, a 136.7 percent increase), chemicals ($3.5 billion, a 41.3 percent increase), processed foods ($2.2 billion, an 87.9 percent increase), and machinery ($493 million, a 23.5 percent increase).

"Many of Louisiana’s exporters continue to do very well in their overseas sales," said Donald van de Werken, Director of the New Orleans U.S. Export Assistance Center, “and especially in the countries with oil-based economies and those that have Free Trade Agreements with the U.S. such as Mexico, Canada, Australia, and Central America.”

Mexico was the number one market for Louisiana exports for the first half of 2008 with $1.9 billion, a 31.9 percent increase in value over the same period in 2007. Exports to Japan ranked second with $1.61 billion, a 7.5 percent increase, while those to China were $1.58 billion, a 51 percent increase over the prior year’s six months.

"Despite the global economic slowdown, there are excellent target opportunities for many Louisiana companies in both exporting and importing, especially in selected developing countries such as China, India, Brazil, Panama, and South Africa,” said Eugene Schreiber, Managing Director of the World Trade Center.

Among all states, Louisiana ranked 9th for the first six months of 2008, one place higher than for all of 2007. Texas, California, and New York continued to be the top three exporting states so far in 2008. Total U.S. exports for January-June 2008 were $661 billion, an 18 percent increase over the same period in 2007.

The following three charts summarize the data reported above.

Trade reports that provide information on 32 industry categories of Louisiana exports (NAICS) and 97 commodities (HS) to more than 200 countries worldwide, as well as export totals of other U.S. states, are available on the WTC’s website by clicking the links below.

Louisiana Exports by Country (NAICS)

Louisiana Exports by Industry (NAICS)

Louisiana Exports by Commodity (HS)

U.S. Exports by State (NAICS)

Louisiana Exports by Country
(US $, NAICS Database) 

 Louisiana Exports by Industry
(US $, NAICS Database) 

 U.S. Exports by State
(US $, NAICS Database) 

Data from U.S. Census Bureau, Foreign Trade Division provided by World Institute for Strategic Economic Research (WISER)

All data Origin of Movement Series

Job Fair

Employers seeking workers are encouraged to participate in the Baton Rouge Business and Career Solutions Job Fair, from 9 a.m. to 1 p.m. Thursday, Sept. 11, at Holiday Inn Select at 4728 Constitution Ave.

The first two hours, from 9 a.m. to 11 a.m. are reserved for veterans only.

The final two hours, from 11 a.m. to 1 p.m., are open to everyone.

Businesses of all types are encouraged to participate and should reserve booth space early.

For more information or to reserve free booth space, contact Bob Hartman, veterans representative with Baton Rouge Business and Career Solutions, at 225-922-1320.

Stelly Plan

During the 2008 Regular Session of the Louisiana Legislature that concluded in June, the legislature passed Senate Bill 87 (Act 396) which repeals the individual income tax increase imposed by the "Stelly Plan" (Act 51 of 2002). The repeal is effective January 1, 2009.

Also in this legislation is a provision that states that the secretary of the Department of Revenue, "shall not amend the withholding tables for individual income tax until after July 1, 2009." This provision has been incorrectly interpreted to mean that the tax relief afforded by this legislation will not be available to taxpayers until July, rather than the January effective date of this legislation. Taxpayers may, in fact, take advantage of this beginning in January, 2009.

In order to begin taking advantage of this tax repeal in January, an individual may fill out and give to his employer a Louisiana Employee Withholding Exemption Certificate or L-4. To determine the correct amount of withholding, a withholding calculator is available on the Louisiana Department of Revenue's Web site at www.revenue.louisiana.gov. Once on the site, click on "Individuals." The Withholding Calculator is the second item listed under "File Online Now" which is located in the center of the page. The Withholding Calculator will be updated in the latter part of 2008 to include the legislative changes enacted by Senate Bill 87.

LOUISIANA CIO

LOUISIANA TECHNOLOGY COUNCIL'S CIO FORUM FEATURES The Louisiana Technology Council 4th Annual CIO Forum Luncheon which connects local tech leaders with the nation's top tech experts, and educates the public on the use of new and emerging technologies and their effect on today