According to the October 2009 World Trade Organization’s Annual Compilation of International Trade Statistics, world gross domestic product (GDP) and world merchandise exports not only move in tandem, but export growth exceeds GDP growth. 

International merchandise trade continued to increase rapidly during the first half of 2008.  It was not until September 2008 that the impact of the financial crisis became evident.  As a result, the 2008 figure for total merchandise still shows a positive annual rate of growth of 15 percent, only slightly lower than the 16 percent in 2007 but still above the average of 12 percent observed since 2000. 

The full impact of the crisis was felt fully across all regions only in the fourth quarter of 2008.  Trade levels deteriorated most in Europe, falling by nearly 16 percent.  Asia’s exports declined by 5 percent and North America’s by 7 percent.    The most recent monthly data available for world merchandise trade indicate an end to the declining trend – world merchandise trade increased by 8 percent between the first and second quarter of 2009.

U.S. Trade Facts 

According to the U.S. Department of Commerce, the United States is the world’s largest economy with a GDP of $14.4 trillion.  In 2008, U.S. exports of goods and services grew by 12.5 percent from $1.6 trillion to $1.8 trillion, while U.S. imports increased 8.6 percent to 2.5 trillion. 

The largest export markets for U.S. goods in 2008 were Canada ($261.4 billion, up 5 percent), Mexico ($151.5 billion, up 11 percent), China ($71.5 billion, up 10 percent), and Japan ($65.1 billion, up 6 percent).

Annual Summary for 2008

Source: Bureau of Economic Analysis http://www.bea.gov/newsreleases/international/trade/2009/trad1208.htm

Goods and Services

For goods, exports were $1,291.3 billion and imports were $2,112.5 billion, resulting in a goods deficit of $821.2 billion.  For services, exports were $551.6 billion and imports were $407.6 billion.

Goods

Increases occurred in industrial supplies and materials ($70.9 billion); foods, feeds, and beverages ($24.2 billion); capital goods ($22.0 billion); consumer goods ($15.1 billion); and other goods ($5.9 billion). A decrease occurred in automotive vehicles, parts, and engines ($0.1 billion).

Increases occurred in industrial supplies and materials ($140.8 billion); capital goods ($9.3 billion); consumer goods ($7.6 billion); foods, feeds, and beverages ($7.3 billion); and other goods ($3.8 billion). A decrease occurred in automotive vehicles, parts, and engines ($25.3 billion).

Services

For 2008, exports of services were $551.6 billion, up $54.4 billion from 2007. Increases occurred in other private services ($17.6 billion), which includes items such as business, professional, and technical services, insurance services, and financial services; travel ($14.7 billion); other transportation ($8.7 billion), which includes freight and port services; royalties and license fees ($8.5 billion); and passenger fares ($5.8 billion).  A decrease occurred in transfers under U.S. military sales contracts ($0.9 billion). U.S. government miscellaneous services were virtually unchanged.

For 2008, imports of services were $407.6 billion, up $29.5 billion from 2007. Increases occurred in other private services ($9.8 billion); other transportation ($5.8 billion); travel ($4.2 billion); passenger fares ($3.8 billion); direct defense expenditures ($3.0 billion); royalties and license fees ($2.8 billion); and U.S. government miscellaneous services ($0.2 billion).

California Trade Statistics

The U.S. Department of Commerce reported that, in 2008, California exports amounted to over $144 billion. This is an increase from the 2007 total of nearly $134 billion. California maintained its perennial position as a top exporting state.

Exports from California accounted for 12 percent of total U.S. exports in 2008. California's top trading partners are Mexico, Canada, Japan, China and South Korea. California trade and exports translate into high-paying jobs for over one million Californians.

The state leads the nation in export-related jobs. According to the California Business, Transportation & Housing Agency, about one in seven jobs in California is related to trade, with every million dollar increase in trade equaling eleven new jobs.

Top Export Sectors

California is the number one exporter in the nation of computers, electronic products, and sales of food and kindred products. Computers and electronic products are California's top export, accounting for 42 percent of all the state's exports.

California exports of transportation equipment, machinery manufactures and chemicals also grew in 2008.

Mexico
Mexico continues to be California’s number one export market. California exports to Mexico totalled $20.5 billion in 2008. Mexico purchases 14 percent of all California exports.

California’s exports to Mexico are driven by computers and electronic products, which account for 24 percent of all California exports to Mexico. Key exports to Mexico showing growth in 2008 include transportation equipment and fabricated metal products.

Canada
Canada moved up to become California's second largest export market, purchasing 12 percent of all California exports.

Computers and electronic products remained California’s largest exports, accounting for 29 percent of all California exports to Canada. Exports of machinery and chemicals from California to Canada grew in 2008 to total more than $1.8 billion; with petroleum and coal products doubling to $1.1 billion.

Asia-Pacific
California is the largest exporting state to Asia. In 2008, California exported almost $57 billion in goods to the region, 40 percent of all California exports and nearly 20 percent of all U.S. exports to Asia.

Japan
California exports to Japan, the world’s third largest economy, totalled $13 billion in 2008. Computers and electronic products accounted for 28 percent of total exports.

Japan is the number one source for overall foreign direct investment in California, driven somewhat by the high value of Japanese owned commercial property.

Greater China
California exports to Mainland China totaled $11 billion in 2008, an increase from the previous year. Exports to Hong Kong also grew in 2008. Growth in exports of transportation equipment and metal manufacturing goods contributed to the increase in total California exports.

European Union
California exports to the European Union increased in 2008 to total $28.3 billion. California is the top exporting state to Europe. Computers, electronic products and transportation equipment are our leading export sectors to the region. European Union countries purchase nearly 20 percent of all California exports.

Export Totals from California (In $ U.S. millions)

Source: U.S. Department of Commerce (2009)