Surface Trade Declined in 2009 between Canada and Mexico

Surface transportation trade between the United States and its North American Free Trade Agreement (NAFTA) partners Canada and Mexico was 27.2 percent lower in January 2009 than in January 2008, dropping to $47.5 billion, the biggest year-to-year percentage decline on record, according to the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation (Table 1). The $47.5 billion in U.S.-NAFTA trade in January 2009 was the lowest monthly amount since January 2004.

The value of U.S. surface transportation trade with Canada and Mexico fell 10.3 percent in January from December. Month-to-month changes can be affected by seasonal variations and other factors.

Surface transportation consists largely of freight movements by truck, rail and pipeline. About 88 percent of U.S. trade by value with Canada and Mexico moves on land.

The value of U.S. surface transportation trade with Canada and Mexico in January was up 3.9 percent in the five-year period compared to January 2004, and up 31.6 percent over the 10-year period compared to January 1999 (Table 3). Imports in January were up 26.4 percent compared to January 1999, while exports were up 38.1 percent.

To read the full article, visit the Bureau of Transportation Statistics at http://www.bts.gov/press_releases/2009/bts015_09/html/bts015_09.html

US FTZs and Duty-Free Treatment

In the 110th Congress (2007-2008), Representative Bill Pascrell sponsored legislation that would have corrected an inequity currently faced by manufacturers operating in U.S. Foreign-Trade Zones (FTZs). Such manufacturers must compete in the US marketplace against duty-free imports manufactured abroad by firms in FTZ partner countries. This unequal treatment occurs even when the FTZ products meet the rules of
origin under NAFTA and other US Free Trade Agreements.

Pascrell’s bill (H.R.6415;110th Congress)would have provided that goods that are manufactured in a US-based FTZ and comply with the rules of origin under a trade agreement, to which the United States is a party, may enter the customs territory of the United States at the rate of duty applicable under that agreement.

Pascrell’s bill was not acted on during the last Congress, so it died at the end of the session. There is a renewed effort to reintroduce this bill, as part of an effort to boost the competitiveness and reduce costs of US based manufacturers who employ US workers. The initiative is being supported by a combination of public and private entities that recognize the importance of trade as an economic stimulus, and seek to increase the competitiveness of US-based manufacturers in the global marketplace.

Is your company interested in furthering the goals of this initiative? For further information or to learn more, please contact Megan Wilson, AAEI’s Director of Government Affairs at mwilson@aaei.org

Growing Together: Insider Perspectives on the NAFTA Nations' Economies

It has been more than 15 years since the United States, Canada, and Mexico signed the North American Free Trade Agreement, dramatically changing the region's trade prospects and economic reckoning. But is NAFTA leaving global trade dollars on the table by not being as competitive as it could be?

To answer that question, Inbound Logistics and sister publication Inbound Logistics México hosted a panel of North American trade and transportation experts. They recently met in Dallas to discuss the common trade interests among the three countries and to develop plans for fostering greater cooperation.

The group included the Canadian Consul General and representatives from the advocacy group North American SuperCorridor Coalition (NASCO), Mexico's Urban Land Institute think tank, the Mexican state of Nuevo Leon, the Port of San Antonio, and other organizations leading the drive for development in the three countries. The participants discussed the NAFTA partners' shared challenges, strategies for strengthening individual and collective economies, and the importance of logistics in the public and private sectors.

To find out how these thought leaders are coming to grips with the challenges facing the NAFTA countries, view the full article at Inbound Logistics at

http://www.inboundlogistics.com/articles/features/0109_feature08.shtml

NAFTA Trade Suffers Biggest Fall since 9/11

The value of trade using surface transportation between the United States and its North American Free Trade Agreement partners Canada and Mexico was 13.8 percent lower in November 2008 than in November 2007, dropping to $60.7 billion, according to the Bureau of Transportation Statistics of the U.S. Department of Transportation.

It’s the biggest year-to-year decline in almost eight years, the agency said. BTS reported that the 13.8 percent decline was the second largest from the same month of the previous year since North American surface freight data collection began in April 1994, three months after NAFTA was implemented.

The only bigger decline was the 14.6 percent drop from December 2000 to December 2001in the post-9/11 period.

About 88 percent of U.S. trade by value with Canada and Mexico moves on land. The value of U.S. surface transportation trade with Canada and Mexico in November was up 25.2 percent compared to November 2003, and up 53.6 percent compared to November 1998. Imports in November were up 52.6 percent compared to November 1998, while exports were up 54.9 percent.