Overview of U.S. trade Data is 2000 2002 recently available and complete 2003 sometimes available but expect revisions All of these charts and graphs are in the binder – don’t need to copy info Can update from links on each page in the binder Purpose here is just to get a general overview of what we trade and with whom

Trade Choices You have $1,000 to spend and your alternatives are to: Purchase one U.S. made television and one U.S. made bicycle. or Purchase one Chinese made television, one Korean made bicycle and two cases of French wine. Use the $1,000 for investment in the stock of a Canadian company. Which do you choose to do?

Voluntary Trade Creates Wealth

Apples and Oranges Apple price $.70/lb Orange Price $.70/lb Washington Rancher 20 acres yields Apples 50 bu/acre Oranges 1bu/acre Florida Rancher Apples 2bu/acre Oranges 40 bu/acre

U.S. GDP and Trade Nominal $$ billions Year GDP Total Exports Total Imports 1995 7,415 794 891 2000 9,952 1,073 1,450 2005 12,623 1,287 1,996 2006 13,377 1,459 2,213 2007 14,028 1,655 2,351 2008 14,291 1,843 2,541 2009 13,939 1,575 1,956 2010 14,526 1,837 2,337 2011 15,075 2,103 2,663 www.bea.gov

Total Trade: Exports Plus Imports Rank by Exports( US $--billions) Top U.S. Trade Partners Total Trade: Exports Plus Imports Rank by Exports( US $--billions)   2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Canada 410 381 371 394 445 499 533 566 600 431 527 596 Mexico 247 233 232 236 267 290 332 347 367 306 393 461 China 116 122 147 181 231 285 343 384 408 366 457 503 Japan 211 184 173 170 193 207 206 204 195 Germany 88 89 97 109 119 130 143 152 114 148 UK 85 82 74 77 90 98 107 172 93 S Korea 65 51 49 56 57 78 33 68 100 France 50 47 46 53 61 73 60 http://www.census.gov/foreign-trade/balance

Trade with Canada, 2011 in billions of dollars 1-Digit SITC Commodity Exports Imports 0 Food and Live Animals 19.7 17.4 1 Beverages and Tobacco 1.4 0.85 2 Crude Materials, Inedible, except Fuels 8.2 11.8 3 Mineral Fuels, Lubricants and Related Materials 18.3 101.9 4 Animal and Vegetable Oils, Fats and Waxes 0.6 1.2 5 Chemicals and Related Products, N.E.S. 32.4 28.1 6 Manufactured Goods Classified Chiefly by Material 38.7 40.4 7 Machinery and Transport Equipment 124.6 83.3 8 Miscellaneous Manufactured Articles 29.2 13.2 9 Commodities and Transactions, N.E.S. 7.7 16.3   * TOTAL * 280.8 314.5 tse.export.gov

Trade with Mexico, 2011 in billions of dollars 1-Digit SITC Commodity Exports Imports 0 Food and Live Animals 13.7 14.0 1 Beverages and Tobacco 0.6 2.8 2 Crude Materials, Inedible, except Fuels 7.3 1.9 3 Mineral Fuels, Lubricants and Related Materials 23.6 44.0 4 Animal and Vegetable Oils, Fats and Waxes 0.9 0.07 5 Chemicals and Related Products, N.E.S. 23.5 4.8 6 Manufactured Goods Classified Chiefly by Material 25.0 19.0 7 Machinery and Transport Equipment 84.0 139.5 8 Miscellaneous Manufactured Articles 13.8 24.5 9 Commodities and Transactions, N.E.S. 6.2 12.4   * TOTAL * 198.6 263.0 tse.export.gov

Trade with China, 2011 in billions of dollars 1-Digit SITC Commodity Exports Imports 0 Food and Live Animals 4.9 5.6 1 Beverages and Tobacco 0.2 0.04 2 Crude Materials, Inedible, except Fuels 32.3 1.9 3 Mineral Fuels, Lubricants and Related Materials 2.0 0.5 4 Animal and Vegetable Oils, Fats and Waxes 5 Chemicals and Related Products, N.E.S. 14.4 13.9 6 Manufactured Goods Classified Chiefly by Material 5.4 42.4 7 Machinery and Transport Equipment 36.4 202.0 8 Miscellaneous Manufactured Articles 7.1 128.9 9 Commodities and Transactions, N.E.S. 1.0 4.2   * TOTAL * 103.9 399.5 tse.export.gov

Merchandise trade balance -695.9 Goods & Services exports 1,826.6 U.S. Balance of Payments 2008 ($ billions) Current Account -706.0 Merchandise trade balance -695.9 Goods & Services exports 1,826.6 Goods & Services imports -2,522.5 Net Transfers -128.3 Net Income Payments 118.2 Capital Account +706.0 Increase in U.S. holdings of foreign assets -106 Increase in Foreign holdings of U.S. assets 505,166 Statistical Discrepancy +200 http:bea.gov

U. S. Goods Trade Balance With Other Nations, 2011 ($US - billions) Country Exports Imports Trade Balance Canada 281 315 -34 Mexico 198 263 -65 China 104 399 -295 Japan 66 129 -63 Germany 49 99 -50 EU 268 368 -100 Taiwan 26 41 -15 South Korea 43 57 -14 France 28 40 -12 http://www.census.gov/foreign-trade/balance/

Goods & Services exports 2,103,367 Goods & Services imports -2,663,247 U.S. Balance of Payments 2011 ($ millions) Current Account -465,926 Goods & Services exports 2,103,367 Goods 1,497,406; Services 605,961 Goods & Services imports -2,663,247 Goods -2,235,819; Services -427,428 Net Transfers -133,053 Net Income Payments 227,007 Capital Account +465,926 U.S. Owned Assets Abroad -483,653 Foreign Owned Assets in the U.S. 1,009,900 Capital Transactions -1,212 Statistical Discrepancy -89,208 http:bea.gov

http://bea.gov Destinations of U.S. Foreign Direct Investment 2011 (percent) Sources of Foreign Direct Investment in the United States United Kingdom 13 17 Canada 8 Japan* 11 Netherlands 14 9 Japan 3 Germany France Australia Switzerland Bermuda Luxembourg 7 2 **2008  http://bea.gov

Statistical Comparison of NAFTA Countries, 1997 (In current U.S. $$) Population (millions) GDP (billions U.S.$) per capita Exports (billions $) Imports Canada 29.9 637.5 21,260 250.6 238.5 Mexico 95.4 401.4 4,207 121.6 122.4 U.S. 272.6 8,265.0 30,282 934.8 1,042.7 Statistical Comparison of NAFTA Countries, 2011 (In current U.S. $$) Population (millions) GDP (billions U.S.$) per capita Exports (billions $) Imports (billion $) Canada 34.5 1,736.0 50,345 539.1 561.9 Mexico 114.8 1,153.3 10,047 365.2 380.6 U.S. 311.6 14,991.3 48,112 2,105 2,665.0 http://web.worldbank.org

Hourly Compensation Costs for Workers in Manufacturing, Selected Countries, 2011 (current dollars) Labor Costs (in $ U.S.) United States 35.53 Canada 36.56 France 42.12 Germany 47.38 Italy 36.17 Japan 35.71 United Kingdom 30.77 Korea 18.91 Mexico 6.48 Singapore 22.60 Philippines 2.01 v www.bls.gov