Growing U.S. exports help keep the nation's trade deficit at bay

30 April 2012

Ten of the United States’ top 15 trade partners are running at record levels, according to WorldCity analysis of the most recent U.S. Census Bureau data.

Three of the five countries where trade has yet to return to the records set prior to the global economic downturn are European: Germany, which ranks No. 5 among U.S. trade partners; No. 6 the United Kingdom; and No. 10 France.

The other two are Taiwan, which through the first two months of 2012 ranked No. 12 but had ranked No. 8 for the same period of 2011; and No. 14 Venezuela, which had ranked No. 12.

For four of the five where trade is lagging, the record year was 2008; the exception is Taiwan, where the greatest total was in 2011.

The United States’ top 15 trade partners accounted for slightly more than 70 percent of all trade among the 234 nations the U.S. traded with through February. That percentage is slightly lower than the percentage of all exports and slightly higher than the percentage of all imports.

The slightly higher percentage of exports means the United States has a broader reach with exports than imports.

The top three overall U.S. trade partners – Canada, China and Mexico – accounted for 42.95 percent of all trade through the first two months of 2012, marginally higher than most years and the second-highest percentage over the course of the last decade. The three account for a slightly lower percentage of all exports and a slightly higher percentage of all imports.

The United States’ top trade partners also account for the lion’s share of the nation’s deficit, which is again growing as an absolute number, though not as a percentage of total trade, as consumers and businesses step up purchases.

The top 15 U.S. trade partners accounted for more than 85 percent of the deficit through the first two months of 2012. Of those 15 nations, the United States runs a deficit with all but three: the United Kingdom, Brazil and the Netherlands.

The 15 nations with which the United States has the highest deficits – regardless of their overall rank – accounted for more than 100 percent of the nation’s $113.81 billion deficit.

That is possible because the United States had a trade surplus with 132 nations through the first two months of the year and deficits with 101.

China alone accounts for almost 40 percent of the U.S. trade deficit. That’s three times that of Japan, more than four times that of Mexico, almost six times that of Canada and Germany, almost nine times that of Saudi Arabia, and more than 10 times that of Ireland, Venezuela, Russia, India and all other nations.

While the deficit is growing in dollars, it is not growing as a percentage of total trade – because U.S. exports are growing alongside deficit-driving imports.

Through the first two months of 2012, 40 cents of every dollar of U.S. trade was an export. This is the fourth consecutive year the total has been over 40 cents. For the other six years of the last decade the total was under 40 cents, including 2005 and 2006 – record-breaking years for total trade – when exports were equal to 35 cents of every dollar of total trade.

A “penny” of exports in 2012, or 1 percent, was worth $2.42 billion. Total U.S. exports through February were worth $241.73 billion; total imports were $255.54 billion and total trade was at $597.26 billion – all three are records.

The U.S. trade deficit is not, however, running at a record level. It was higher in 2006, 2007 and 2008, when it peaked at $130 billion.

The nations where the balance of trade has shifted the most over the last decade in favor of the United States, when looking at the first two months of the year, are Switzerland, a 10 “cent” swing; India, 9 cents; South Korea; 7 cents; and China, 6 cents.

The United States has seen the percentage of trade shift toward imports with only four of the top 15 nations. The Netherlands has had a 5 “cent” swing through February, but the United States enjoys one of its largest surpluses with the transshipment hub. Saudi Arabia and Venezuela, large oil producers, have seen a 4 cent shift toward U.S. imports; and Taiwan, has recorded a negligible 1 penny move.

Miami trade flys by $100 billion thanks to gold, other precious metals

15 January 2012

Miami’s trade with the world topped $100 billion for the first time ever in 2010, according to U.S. Census Bureau data released Friday and analyzed by WorldCity.

Export import trade through the first 11 months of the year rose to $103.05 billion, up $16.25 billion compared to the same period in 2009.

Miami is only the 11^th U.S. Customs district to top the $100 billion milestone in U.S. history.

Cleveland will also have topped the $100 billion mark, the annual trade data will reveal when it is released on Feb. 10. Through the first 11 months of 2011, its trade stood at $99.53 billion.

Miami’s recent growth has been led less by its role as the shopping cart for a wide variety of exports to Latin America than its role as a symbol of the global economy.

As uncertainty has hung over the worldwide economy, Miami has become the leading U.S. importer of gold, largely from Mexico and Colombia, and the nation’s leading exporter of scrap of precious metal, almost exclusively being shipped to Switzerland.

Gold, whose value has appreciated significantly in recent years, is seen as a safe harbor in difficult times by some investors.

Colombia is now Miami’s No. 2-ranked trade partner, behind only Brazil, due less to the signing of the free trade agreement than the gold shipments. Mexico is now No. 10, also because of gold imports into South Florida.

Due to high value and security needs, it is almost exclusively flown into Miami International Airport.

Switzerland is now No. 3, its trade having increased 277 percent in three years. Overall Miami trade has increased 23.61 percent in that time. Nine years ago, Switzerland was Miami’s No. 32-ranked trade partner.

The Miami Customs district is led by Miami International Airport and the seaports of Miami, Port Everglades and Palm Beach. It covers Miami-Dade, Broward, Palm Beach and Monroe counties.

It is the nation’s No. 11-ranked Customs district, trailing New York City, Los Angeles, Houston, Detroit, New Orleans, Laredo, Chicago, Seattle, Savannah and San Francisco, respectively.