By: Melissa Proctor (Shareholder – Polsinelli PC)
On August 5, 2016, the Commerce Department’s U.S. Census Bureau and the U.S. Bureau of Economic Analysis published a report on U.S. international trade in goods and services for the month ending June 2016. These reports provide key trade statistics on the well-being of the U.S. economy and the country’s global trade outlook. The following provides some highlights from the most recent report—
- US International Trade Deficit Increased: The U.S. monthly international trade deficit increased in June 2016 from $41.0 billion in May to $44.5 billion, as imports increased more than exports. The goods deficit increased $3.8 billion to $66.0 billion, and the services surplus increased $0.3 billion to $21.5 billion.
- US International Trade Deficit Compared to 2015: Year-to-date, the goods and services deficit decreased $5.8 billion (2.3%) from the same period in 2015. Exports decreased $54.2 billion (4.7%) and imports decreased $60.0 billion (4.3%).
- Exports: Exports of goods and services increased $0.6 billion (0.3%) in June 2016 to $183.2 billion. Specifically, exports of goods increased $0.5 billion, and exports of services increased $0.1 billion. The increase in exports of goods was due to increases in foods, feeds, and beverages ($0.6 billion) and in consumer goods ($0.4 billion), and the increase in services reflected increases in financial services ($0.1 billion) and in maintenance and repair services ($0.1 billion).
- Imports: Imports of goods and services increased $4.2 billion (1.9%) in June 2016 to $227.7 billion. Imports of goods increased $4.4 billion and imports of services decreased $0.2 billion. The increase in imports of goods was due to industrial supplies and materials ($2.3 billion) and in consumer goods ($1.9 billion), while the decrease in imports of services reflected decreases in travel ($0.1 billion) and in transportation ($0.1 billion), which includes freight and port services and passenger fares.
- US Trade Deficit with Japan Increased: The trade deficit with Japan increased $1.0 billion to $6.0 billion in June. Exports decreased $0.4 billion and imports increased $0.6 billion.
- US Trade Deficit with the European Union Increased: The trade deficit with the European Union increased $0.8 billion to $12.7 billion in June. Exports increased $0.9 billion and imports increased $1.7 billion.
- US Trade Deficit with Mexico Decreased: The trade deficit with Mexico decreased $0.8 billion to $4.7 billion in June. Exports increased $0.3 billion and imports decreased $0.5 billion.
- Top 10 Export Countries: The top 10 destination countries for U.S. exports year-to-date were as follows: European Union; Canada; Mexico; China; Japan; South Korea; Hong Kong; Brazil; Singapore; and, Taiwan (in that order).
- Top 10 Import Countries: The Top 10 countries from which goods were imported into the United States (year-to-date) were: China; Mexico; Canada; Japan; South Korea; India; Taiwan; Switzerland; Malaysia; and, Thailand (in that order).
- Top 10 U.S. Exporting States/Territories: The Top 10 importing states/territories (year-to-date) were as follows: Texas; California; Washington; New York; Illinois; Michigan; Florida; Ohio; Louisiana; and, Pennsylvania (in that order).
- Top 10 U.S. Importing States/Territories: The Top 10 importing states and territories (year-to-date) were as follows: California; Texas; Michigan; New York; Illinois; New Jersey; Georgia; Pennsylvania; Tennessee; and, Florida (in that order).
- Where Arizona Ranks (Imports): Arizona ranked 24th in imports as compared to other states (in terms of value and volume of imports into the United States) year-to-date behind Connecticut and ahead of Oregon.
- Where Arizona Ranks (Exports): Arizona ranked 20th in exports as compared to other states (in terms of value and volume of exports from the United States) year-to-date behind Puerto Rico and ahead and Wisconsin.
By way of background, information on U.S. exports of goods is collected from the data relating to export shipments made from the various states, the District of Columbia, Puerto Rico, US Virgin Islands, and U.S. foreign trade zones to foreign countries. Export values are calculated based on the FAS (Free Alongside Ship) value of the goods at the U.S. port of export (i.e., the transaction value of the goods plus costs for inland freight, insurance and other charges to bring the goods alongside the carrier).
In contrast, U.S. import data is based on the total entries of merchandise from foreign countries that either enter U.S. commerce for consumption immediately upon their clearance through customs, or are withdrawn for consumption from U.S. bonded warehouses or foreign trade zones. Import values are calculated based on the transaction value of the imported goods (i.e., the price actually paid or payable for the goods) with deductions made for duties, freight, insurance and other charges incurred.
The next report monthly is scheduled to be released on September 2, 2016. To access the entire report and tables, please see the BEA’s website: http://www.bea.gov/newsreleases/international/trade/tradnewsrelease.htm.
Melissa Proctor is a Shareholder with Polsinelli PC and has significant experience in the customs laws and regulations, export controls, economic sanctions, and international trade. She may be reached at (602) 650-2002 or via e-mail at email@example.com.