Source: http://worldcityweb.com/home/MIA/publications/magazine/47/852/

(3-b) Miami TradeNumbers 2007: 1st Half Imports - Stalled Import Trade

by WC

A weak U.S. dollar and a slowing economy keep import growth in check

Total imports in the first half of 2007 were $16.2 billion, barely matching the level of imports for the same period a year ago.

The slowdown is due in part to a weaker U.S. dollar, which has declined against most of the currencies of Latin America over the past 12 months. The lack of growth in import trade can also be attributed to the slowdown in the U.S. economy, especially in the housing sector and construction industry.

China and Brazil held steady as South Floridas top two sources of imported merchandise. Neither, however, registered significant changes in the level of imports during first six months of the year compared to the same period last year.

Total imports from China, which took over top spot as Miamis number one source of imports in the first quarter of 2006, were valued at $1.7 billion from January to June 2007, while imports from Brazil were $1.1 billion, a slight decline.

The only significant change among South Floridas top five import partners was Colombias fall from third place to fifth place overall. That was a reflection of the Colombian pesos rise against the U.S. dollar which gained nearly 15 percent over the past 12 months. Imports from Colombia fell nearly 9 percent during the first half of 2007 to $879 million.

The biggest beneficiary of Colombias strong currency was neighboring Ecuador. South Florida imports from that country jumped 23 percent to $265 million, up from $215 million a year ago. Unlike Colombia and other Latin American countries with strengthening currencies, Ecuadors bilateral trade with the U.S. is not affected by exchange rate fluctuations, as Ecuador dollarized
its economy in September 2001.

Other Latin American countries that registered gains in South Florida imports in the first half of 2007 included Mexico and Chile, both up 15 percent. Mexican imports rose to $331 million,
up from $287 million a year ago.

Meanwhile, imports from Chile, which continues to take full advantage of its free trade agreement with the U.S. signed in 2003, rose to $465 million during the first six months of the year. Since 2004, when the free trade agreement went into effect, imports from Chile during the first half of
the year have jumped by 80 percent.

Another significant gain was registered by imports from South Korea, which jumped more than 30 percent to $296 million from $226 million a year ago. The large increase was due to the fact that Korean Air Cargo began operating direct flights from Seoul to Miami in August 2006.

Other big gainers so far this year include three European countries France, United Kingdom and Germany. Imports from France rose by nearly 50 percent during the first six months of the year. As a result, France jumped four spots in the ranking to become South Floridas sixth most import source of imports.

The United Kingdom was right behind in seventh position, with total imports of $793 million during the first six months of the year, up over 30 percent. Meanwhile, imports from Germany rose more than 20 percent to $449 million.