The ITC, an independent, nonpartisan, factfinding federal agency, issued the report as third in a series of five annual reports on the nonrubber footwear industry requested by the Senate Committee on Finance. Following are highlights of the report:

• U.S. consumption of nonrubber footwear increased 10 percent by volume from 1.2 billion to 1.3 billion pairs and 5 percent by value from $13.1 billion to $13.7 billion between 1996 and 1997, following consecutive declines in 1995 and 1996.

• U.S. imports of nonrubber footwear imports increased by 9 percent to 1.189 billion pairs in 1997 after experiencing little growth during the previous two years. The value of imports gained 10 percent, reaching $11.5 billion, while the average unit price of imports showed hardly any change at $9.66 a pair. Imports' share of domestic consumption, by volume, remained unchanged in 1997 at 91 percent, while gaining 4 percentage points, by value, to 84 percent.

• China accounted for most of the increase in nonrubber footwear imports in 1997. Imports from China increased by 88 million pairs (12 percent) in 1997 to 831.1 million pairs valued at $6.1 billion, whereas imports from all other countries combined rose by 14 million pairs (4 percent). China expanded its share of the U.S. nonrubber footwear market by 2 percentage points to 64 percent in 1997.

• The decline in volume of nonrubber footwear imports from Brazil, the largest volume supplier after China, continued as imports of nonrubber footwear from that country in 1997 dropped by 2 percent by volume to 89.6 million pairs valued at $1.1 billion. Imports from Indonesia and Thailand, the third- and the eighth-leading volume suppliers, respectively, showed almost no change from their respective 1996 levels.

• Imports from the European Union (EU) gained 10 percent by volume to 91.4 million pairs valued at $2 billion in 1997. Imports from Italy and Spain, which together accounted for 84 percent of U.S. nonrubber footwear imports from the EU by volume in 1997, increased by 6 percent and 11 percent respectively.

• U.S. nonrubber footwear imports from Taiwan rose by 7 percent by volume in 1997 to 19.1 million pairs valued at $132 million, the first such gain in the 1990s. Imports from Korea, however, continued their longterm decline, dropping 13 percent in 1997 to 8.7 million pairs valued at $149 million. In 1997, these two countries together supplied only 2 percent of U.S. imports, compared with 8 percent in 1993 and 66 percent in 1987.

• Growth in imports from Mexico slowed as imports from that country increased by 18 percent to 18.3 million pairs in 1997, following a 63 percent gain in 1995 and a 58 percent gain in 1996. By contrast, imports from the Caribbean countries declined by 15 percent to 3.4 million pairs, following a 32 percent gain in 1995 and a 26 percent gain in 1996. The Dominican Republic, which accounted for nearly 70 percent of U.S. nonrubber footwear imports from the Caribbean in 1997, dropped by 12 percent.

• U.S. production of nonrubber footwear in 1997 increased by 7 percent from the 1996 level to 137 million pairs, the first such increase since 1993. The value of U.S. producers' shipments, however, continued to decline, dropping by 13 percent to $2.6 billion. The average employment in the U.S. nonrubber footwear industry also declined, dropping by 3,400 people (8 percent) in 1997 to 41,200.

The foregoing information is from the ITC publication Nonrubber Footwear Statistical Report (Investigation No. 332-191, USITC publication 3094, March 1998). The report will be available on the ITC's Internet server at www.usitc.gov. A printed copy can be requested by calling 202-205-1809 or by writing to the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may also be made by fax to 202-205-2104.