Statistics

U.S. trade breaks $3 trillion mark; first deficit decline in 15 years

February 15th, 2008

First of Four Articles: A Look at the Top Customs districts

U.S. trade with the world surpassed $3 trillion for the first time in 2007, and for the first time since at least 1992, the deficit declined, according to WorldCity analysis of U.S. Census data released Thursday.

Total U.S. trade ended up at $3.1 billion for the year. The U.S. trade deficit fell from $817.3 billion in 2006 to $790.9 billion in 2007, and that decline was spread across a number of the nation’s leading Customs districts.

Exports, which surpassed $1 trillion for the first time in 2006, grew $126.1 billion to $1.2 trillion while imports grew $99.8 billion, finishing slightly short of the $2 trillion mark.

Exports surged and imports slowed because of the declining power of the U.S. dollar against most of the world’s currencies, the weakness in the U.S. housing market and the continuing increase in the cost of imported oil.

The strength of exports showed up in a number of leading trading communities across the nation.

This article looks at the year in trade through the prism of the Customs districts. It will be followed in the coming days by articles that focus on the top trade partners, the top exports and the top imports. (Chart below)

Seattle registered the nation’s largest trade surplus in history, at $15.8 billion, breaking the mark held since 1997 by the Miami Customs district. Miami, the only Customs district to have had a continuous surplus for since 1992, also broke its record as well in 2007, at $11.9 billion.

On the other end, Los Angeles broke its previous record, set in 2006, to register the largest trade deficit in history, at $149 billion but the increase was a mere 0.29 percent as trade with many of its Asian partners, excluding China, slipped. And, at the same time, it surpassed $100 billion in exports for the first time ever, a feat previously accomplished by New York and Detroit.

Among the nation’s Top 10 Customs districts, New York, Detroit and Houston saw their deficits decline most significantly. The biggest deficit increase among all Customs districts was for No. 7 Chicago, where it jumped $7.8 billion.

Charleston, S.C., was the nation’s fastest-growing Top 25 Customs district, growing at 15.4 percent, and topping $50 billion for the first time. That is a 91 percent increase since 2002, and the South Carolina Customs district, which ranked No. 19 then, moved up two more slots in 2007 to finish at No. 16 in the nation, fast on the heels of the 15th-ranked Dallas Customs district.

Also growing rapidly in the Top 25 were No. 4 Houston and No. 5 New Orleans, both growing in excess of 14 percent. Oil is a key import for both.

Overall, many Customs districts registered increases in the number of countries with which they conduct at least $1 billion in two-way trade.

There are 34 nations in Los Angeles’ Billion Dollar Club, up from 31 in 2006. The new nations with more than $1 billion in total trade are Chile, Austria and the United Arab Emirates. Austria’s trade more than doubled and the UAE increased almost 80 percent.

Houston has 38 nations in its Billion Dollar Club, having added four from 2006. The four additional nations with at least $ billion in annual trade are Denmark, Libya, Australia and Honduras.

New Orleans has 36, adding Australia and Argentina. Argentina’s trade with the New Orleans Customs district increased 71 percent.

Twenty-three nations are now part of the Savannah Customs district’s Billion Dollar Club, with India, Turkey, Trinidad and Tobago, and Hong Kong surpassing $1 billion in annual trade in 2007. It was just 12 nations for the Georgia Customs district in 2002.

In Charleston, a record 14 nations joined its Billion Dollar Club, up from 11 the previous three years. In Miami, the record number is 23, an increase of two over the previous year. The additions are Japan and Paraguay. Chicago also has 23 billion-dollar trade partners, with the Philippines and Spain joining the list in 2007.

Seattle remained constant at 19 nations in its Billion Dollar Club, adding Indonesia, Russia and Brazil in 2007 while dropping Australia, Angola and New Zealand.

Number of U.S. trade surpluses at 127 nations, highest since 1998 (02/21/2008)

U.S. trade breaks $3 trillion mark; first deficit decline in 15 years (02/15/2008)

Annual U.S. trade with a record 44 nations will exceed $10 billion (01/19/2008)

Annual trade growth forecast to slow but numerous records still will fall (01/17/2008)

U.S. exports to Putin's Russia growing far faster than national average (12/23/2007)

Baltimore, N.Y. among big gainers in exports (12/21/2007)

Aircraft, corn, gold exports growing rapidly (12/18/2007)

Slumping dollar means surging exports (11/13/2007)

With oil above $90 per barrel, crude and China play biggest role in deficit since 1992 (10/30/2007)

U.S. trade passes $2 trillion through August, a record (10/25/2007)

Exports, in GOP debate spotlight, continue brisk, record growth (10/09/2007)

U.S.-Burma trade vaporized in 2003 (09/30/2007)

Algeria, Vietnam among fastest-growing U.S. trade partners over five-year period (09/25/2007)

U.S. trade growth slowest in years (08/15/2007)

2nd U.S. TradeNumbers released (08/12/2007)

U.S. trade up and deficit down (07/13/2007)

1st Q: U.S. trade up slightly as import growth slows -- except with China (05/11/2007)

France, soon electing a new president, surpasses $10 billion in total trade (04/22/2007)

Handgun imports rise sharply, lead by Savannah, Miami, Chicago (04/17/2007)

U.S. trade rises a tepid 6 percent through February (04/16/2007)

South Korea car imports up 1,000% since 1992, but down last two years (04/10/2007)

It's a fact: Algeria, Angola, Chile, UAE, Austria are fastest-growing (04/10/2007)

U.S takes precedent-setting action against China in coated-paper case (04/02/2007)

Media weighs in on South Korea-U.S. free trade agreement (04/02/2007)

South Korea takes big step toward $100 Billion Club (04/02/2007)

U.S. exports advance broadly, from airplanes to corn to tractors to gold (03/19/2007)

Annual Statistics: A quick review of the Top 10 U.S. trade partners (02/24/2007)

U.S. trade, exports, imports, deficit set new annual records (02/15/2007)

Annual statistics: Dallas among nation's fastest-growing districts (02/14/2007)

Seattle registers largest, and one of few, surpluses (02/14/2007)

DC is nation's fastest-growing Customs district for 2006 (02/14/2007)

Philadelphia falls just shy of $70 billion on rapid growth (02/13/2007)

Sneak peek at the annual trade statistic release (01/22/2007)

U.S. has trade surplus with 115 nations, deficit with 116 (11/03/2006)

U.S. trade growth at 14 percent through August (10/16/2006)

Exports to Afghanistan are zooming; led by aircraft, motor vehicles (10/02/2006)

Romania, Bulgaria seek EU status, both rank in Top 100 in U.S. trade (09/28/2006)

Trade with Muslim world growing faster than average (09/25/2006)

Annual Report: No. 17 Saudi Arabia - Quenching the oil thirst (09/15/2006)

New Orleans rebounding, one year after Katrina (08/27/2006)

Six-month report: U.S. trade increases 13 percent, with fast growth from red-hot Chile (08/24/2006)

Annual Report: No. 24 Switzerland - Swiss trade keeping time (07/26/2006)

Annual Report: No. 25 Australia- U.S. posts $8.4 billion surplus (07/26/2006)

Annual Report: No. 23 Hong Kong - U.S. expands trade surplus (07/25/2006)

Annual Report: No. 21 Israel - Glittering give-and-take (07/23/2006)

Annual Report: No. 20 India - Rising player on trade scene (07/22/2006)

Annual Report: No. 19 Thailand - Gains seen in tech products (07/21/2006)

Annual Report: No. 16 Singapore - U.S. sees growth in surplus (07/20/2006)

Annual Report: No. 18 Belgium - Diamonds, medicines lead trade (07/19/2006)

Annual Report: No. 15 Ireland - Chemicals, drugs drive exports (07/17/2006)