06 October 2011
Free trade agreements with Colombia, Panama and South Korea, stalled for years in congress, appear to be on the fast track for approval, but what does export-import trade between the U.S. and those three countries actually look like?
Of the three South Korea, at a national level, looks to be the most important. Trade data through July provided by the U.S. Census Bureau show the Southeast Asian country as the nation’s No. 7 trading partner, with two-way trade at a record $58.35 billion. The previous record for the same time period was in 2008, when $50.35 billion worth of goods moved between the two countries.
South Korea’s total trade with the U.S in 2010 came in at $87.7 billion, 29.3 percent higher than 2009. Los Angeles, as has been the case since at least 1992, was the top trading region claiming $21.57 billion of total trade that year. Compare South Korea’s total to the $27.69 billion worth of trade between Colombia and the U.S. or the 6.45 billion worth of Panama-U.S. trade.
So far this year Los Angeles has claimed $13.92 billion worth of the $58.35 billion total. Other leading U.S. Customs districts for total trade so far this year are No. 2 Chicago, No. 3 San Francisco, No. 4 New York City and No. 5 Atlanta/Savannah compared. The same five districts dominated South Korea’s trade through July of 2010.
Taking a closer look at the most recent data for leading U.S. gateways for trade with South Korea shows:
- Trade with No. 1 Los Angeles rose 12.58 percent to $13.92 billion. Exports rose 8.40 percent to $6.5 billion while imports rose 16.52 percent to $7.42 billion.
- Trade with No. 2 Chicago rose 5.05 percent to $5.12 billion. Exports fell 4.89 percent to $966.12 million while imports rose 7.66 percent to $4.15 billion.
- Trade with No. 3 San Francisco rose 4.68 percent to $4.88 billion. Exports rose 8.70 percent to $2.63 billion while imports rose 0.34 percent to $2.25 billion.
- Trade with No. 4 New York City fell 4.08 percent to $4.47 billion. Exports rose 6.78 percent to $3.22 billion while imports fell 23.99 percent to $1.25 billion.
- Trade with No. 5 Atlanta/Savannah rose 47.89 percent to $4.4 billion. Exports rose 29.19 percent to $1.18 billion while imports rose 56.12 percent to $3.23 billion.
With L.A. accounting for nearly one-quarter of all South Korea’s trade it’s expected that a free trade agreement with South Korea would impact that region the most, but what exactly does L.A. trade with South Korea?
The numbers show that L.A.’s top imports from South Korea so far this year include cars, refrigerators, refined oil, and landline and cell phone equipment. The district has brought in a total $7.42 billion worth of goods through July. The value of the No. 1 import, cars, so far this year comes in at $687.73 million. The district in all of 2010 imported $727.45 million worth of cars. The No. 2 import, refrigerators and freezers, so far this year is worth $554.91 million while imports of No. 3, rubber tires, are worth $496.12 million. The 2010 value of those imports were $776.95 million and 691.88 million, respectively.
On the export side Los Angeles through July sent $6.5 billion worth of goods to South Korea. These exports aren’t dominated by one commodity. The No. 1 and No. 2 exports so far this year, $312.42 million of scrap metal and steel, and $310.96 million worth of frozen beef, are two of nine exports each worth in excess of $100 million. Exports of raw cotton, machinery and parts for semiconductor manufacturing, and landline and cellphone equipment, Nos. 3, 4 and 5 respectively, were worth $291.26 million, $178.91 million and $178.6 million.
Through July, 18 Customs districts posted trade surpluses with South Korea while 28 had deficits. That compares with 17 surpluses and 28 deficits for the same period one year ago. The top surplus was with New York City at $1.97 billion, and the largest deficit was with Chicago at $3.19 billion.
Total U.S. exports to South Korea in 2010 were worth $38.84 billion and imports were worth $48.86 billion. The U.S. trade deficit with South Korea last year was $10.02 billion.