U. S. Tobacco Import Update 2003/04

Overview

U.S. tobacco product manufacturers use foreign-produced leaf in items such as cigarettes, cigars, chewing tobacco, and pipe tobacco. Imports peaked in the mid-1990s, but remain at historically high levels. The popularity of generic cigarettes-which use cheaper imported leaf-and increases in domestic leaf prices were the chief reasons for heightened dependence on tobacco imports. Disappearance (use) of foreign-grown tobacco followed a similar upward trend. As tobacco exports and domestic sales of generic cigarettes advanced, imported leaf use rose. During the past year, use of imported tobacco advanced 14 percent. Imported flue-cured and burley use gained and Oriental leaf use was steady. Foreign-grown cigar leaf use advanced as domestic cigar production rose. Imports of flue-cured and burley tobacco continue to be regulated by a tariff-rate quota.