Sudan: 2005 Import-Export Trade Report

UNCLAS SECTION 01 OF 02 KHARTOUM 001589

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TAGS: ETRD ECON EPET PGOV CH SA US SU
SUBJECT: Sudan: 2005 Import-Export Trade Report


1. SUMMARY: 2005 trade statistics from the Central Bank of Sudan
(CBOS) shows a trade balance roughly six times higher than the 2004
level, growing from a negative USD 297 million in 2004 to negative
USD 1,932 million. Crude oil exports make up 82 percent of the
total during 2005, up from 78 percent in 2004 and 72 percent in

2002. China's USD 3.4 billion in petroleum purchases made up 71
percent of Sudan's total exports in 2005, a rise from USD 2.5
billion (67 percent) in 2004 and USD 1.3 billion (65 percent) in

2002. Japan and the United Arab Emirates were Sudan's second and
third largest importers during 2005. Chinese products also
dominated Sudanese trade on the import side, claiming one-fifth (20
percent) of Sudan's total imports during 2005, a rise from USD 530
million (13 percent) and USD 196 million (8 percent) in 2002.


2. Sudan's ten largest import commodities made up 91 percent of
total imports during 2005, with the top three - machinery and
equipment, manufactured goods, and transport equipment - claiming 63
percent of the total. This is an increase of 23 percentage points
from 2002. In 2005, Sudan lowered its reliance on food imports,
purchasing a total USD 836 million in food products. This accounts
for 12 percent of Sudan's total imports, compared to 14 percent in
2004 and 19 percent in 2002. U.S. exports to Sudan totaled USD 130
million in 2005, placing the United States as the 14th largest
exporter. U.S. imports from Sudan totaled USD 12.3 (all gum Arabic
under OFAC license). END SUMMARY.
Sudan Sees Sharp Rise in Trade Deficit


3. 2005 trade statistics from the Central Bank of Sudan (CBOS) show
a trade balance roughly six times higher than the 2004 level.
Sudanese exports in 2005 totaled USD 4,823 million, while imports
totaled USD 6,757 million, resulting in a negative USD 1,932 million
trade balance. This is a sharp rise from 2004's negative USD 297
million trade balance. The large jump in 2005 can be credited to
across the board increases in commodity imports, growing by 66
percent from the 2004 totals. This compares to a much lower 28
percent growth in exports. Data also show a sharp rise in imports
during the last two months of 2005. (Note: Data includes only
petroleum products from southern Sudan. Most non-petroleum products
from neighboring countries Kenya, Ethiopia, and Uganda are not
officially reported. End note.) Petroleum Products Comprise 82
Percent of Exports


4. Crude oil exports make up 82 percent of the total during 2005,
up from 78 percent in 2004 and 72 percent in 2002. Gasoline
continues to be Sudan's second largest export commodity, averaging 5
percent of total exports during 2005-2002. Non-petroleum exports,
mainly sesame, livestock, gum Arabic, and cotton, account for 12
percent of Sudan's total exports, compared to 16 percent in 2004 and
19 percent in 2002.

Imports: Machinery/Equipment, Mfg Goods, Transport Lead


5. Sudan's ten largest import commodities made up 91 percent of
total imports during 2005, with the top three - machinery and
equipment, manufactured goods, and transport equipment - claiming 63
percent of the total, roughly the same as 2004, but a sharp increase
from 37 percent in 2002. In 2005, Sudan purchased USD 2 billion in
machinery and equipment items, mainly electrical/non-electrical
appliances and machinery spare parts (52 percent); USD 1.6 billion
in manufactured goods, main processed iron and steel (44 percent),
and USD 1.2 billion transport equipment, mainly truck, automobiles
and spare parts (78 percent).

Sudan's Food Imports Decrease

6. In 2005, Sudan lowered its reliance on food imports, purchasing
a total USD 836 million in food products. This accounts for 12
percent of Sudan's total imports, compared to 14 percent in 2004 and
19 percent in 2002. Dairy products (USD 48 million),tea (USD 37
million),cooking oils (USD 33 million),coffee (USD 26 million),
and lentils (USD 20 million) were the largest import commodities.
Sudan imported minimal amounts of fish/canned fish, meat products,
spices, wheat flour, and rice.

China Continues to Dominate Sudanese Trade


7. In 2005, China's USD 3.4 billion in petroleum purchases made up
71 percent of Sudan's total exports and 100 percent of China's
imports from Sudan. This total is a rise from USD 2.5 billion (67
percent) in 2004 and USD 1.3 billion (65 percent) in 2002. The two
other sizable importers of petroleum products from Sudan were Japan,
with USD 577 million in purchases (12 percent of Sudan's total
exports) and the United Arab Emirates, with USD 83 million in
purchases (2 percent of Sudan's total exports). Key non-petroleum
importers during 2005 include regional partners Saudi Arabia and
Egypt, including Saudi Arabia's purchases totaling USD 136 million
(mainly livestock) and Egypt's USD 79 million (mainly sesame,
livestock, and cotton).


8. Chinese products also dominated Sudanese trade on the import
side, where China's USD 1.4 billion in sales to Sudan claims
one-fifth (20 percent) of Sudan's total imports. This total is a
rise from USD 530 million (13 percent) and USD 196 million (8
percent) in 2002. Of the total USD 1.4 billion imported from China,

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purchases of machinery/equipment, manufactured goods, and transport
equipment accounted for 84 percent of the total.

Saudi Arabia Another Major Trading Partner


9. Saudi Arabia exported a total USD 627 million to Sudan, claiming
9 percent of Sudan's total imports, followed by United Arab Emirates
(USD 396 million),Japan (USD 345 million),and India (USD 318
million). All four of these countries exported sizable amount of
machinery and equipment, manufactured goods, and transport equipment
to Sudan; Saudi Arabia also exported USD 94 million in miscellaneous
petroleum projects, USD 68 million in chemical products, and USD 33
million in food items. United Arab Emirates and India also provided
sizable amounts of chemical products to Sudan, USD 38 million and
USD 34 million, respectively. India was also a large exporter of
food products (USD 40 million).


10. Italy (USD 258 million),United Kingdom (USD 222 million),
Australia (USD 222 million),France (USD 220 million),and Bahrain
(USD 183 million) round out the top ten exporters to Sudan.

U.S. Exports to Sudan Total USD 130 Million in 2005


11. U.S. exports to Sudan totaled USD 130 million in 2005, placing
the United States as the 14th largest exporter. Key commodity
categories exported to Sudan in 2005 include food products (USD 99
million),machinery and equipment (USD 19 million),transport
equipment (USD 6 million),and manufactured goods (USD 5 million).
(Comment: presumably these exports were in compliance with OFAC
economic sanctions waiver and Department of Commerce export
licensing requirements. End comment.) U.S. imports from Sudan
totaled USD 12.3, all gum Arabic under OFAC license.
Comment


12. Overall, 2005 trade data confirms Sudan's strong economy.
Construction projects for infrastructure and housing are on the
rise, and we expect similar growth to spread into key manufacturing
sectors. Sudan's growing reliance on machinery and equipment and
transport products will continue to be linked the economy's growth,
and this reliance will continue to rise as development spreads into
southern Sudan, Darfur, and Eastern Sudan. Sudan should seek ways
to limit dependency on these "growth" imports, as well as seek ways
to increase and diversify its exports.

HUME