Trade Statistics
California is one of the 10 largest economies in the world with a gross state product of over $1.9 trillion. According to an International Trade and Investment Study produced by the CA Business, Transportation and Housing Agency, "International trade and investment is a major economic engine for the state of California that broadly benefits businesses, communities, consumers and state government. As has been described at length in other reports, California’s economy is more diversified than ever before, and the state’s prosperity is tied to exports and imports of both goods and services by California-based companies, to exports and imports through California’s transportation gateways, and to inflows and outflows of human and capital resources."
Although trade is a nationally determined policy issue, its impact on California is immense. In 2010, California exported to 226 foreign markets. Trade offers the opportunity to expand the role of California’s exports. In its broadest terms, trade can literally feed the world and raise the living standards of those around us.
Global Trade Facts
WTO RELEASES TRADE AND TARIFF DATA FOR 2010
World Trade Organization, October 21, 2011
WORLD TRADE 2010, PROSPECTS FOR 2011
World Trade Organization, April 7, 2011
According to the WTO, World GDP at market exchange rates expanded 3.6% in 2010, one year after an unprecedented contraction of 2.4% that accompanied the financial crisis in 2009. Output of developed economies rose 2.6% in the latest year after falling 3.7% in 2009, while the rest of the world (including developing economies and the CIS) grew 7.0%, up from 2.1% in 2009.
Growth was stronger in the first half of the year, but weakened in the second half as the sovereign debt crisis affecting smaller Euro area economies restrained economic growth, especially in Europe.
Although developing economies collectively avoided an outright decline in 2009, many individual economies saw their GDP contract, for example South Africa, Chile, Singapore, and Chinese Taipei. However, all of these economies returned to positive growth in 2010, and the only large developing country that remained mired in recession was Venezuela.
GDP grew faster in developing Asia (8.8%) than in other developing regions last year, with China and India registering strong increases of 10.3% and 9.7%, respectively. South and Central America also saw vigorous growth of 5.8%, driven by Brazil’s strong 7.5% upturn. However, Africa had the fastest average rate of GDP growth of any region over the last 5 years (4.7% between 2005 and 2010).
Developed economies grew more slowly than developing economies, but some performed better than others. Concerns about the possibility of sovereign defaults in Greece, Ireland, Portugal and Spain brought renewed financial market instability and fiscal austerity in the second half of 2010, which held Europe’s growth rate down to 1.9%, the slowest of any region. The economies of Greece, Ireland and Spain all contracted in 2010, as did Iceland’s, which was hit by a banking crisis in 2008.
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 $14.6 trillion.
The largest export markets for U.S. goods in 2010 were Canada ($248.2 billion, up 21 percent), Mexico ($163 billion, up 27 percent), China ($91.9 billion, up 32 percent), and Japan ($60.5 billion, up 18 percent).
Annual Summary for 2010
Source: Bureau of Economic Analysis http://www.bea.gov/newsreleases/international/trade/tradnewsrelease.htm
Goods and Services
The deficit on goods and services increased to $495.7 billion in 2010 from $374.9
billion in 2009.
The U.S. current-account deficit—the combined balances on trade in goods and
services, income, and net unilateral current transfers—increased to $470.2 billion
(preliminary) in 2010 from $378.4 billion (revised) in 2009, the first annual increase
in the deficit since 2006.
Goods
For 2010, goods exports increased to $1,288.7 billion from $1,068.5 billion. All major
end-use categories of exports increased substantially. Industrial supplies and
materials and capital goods accounted for much of the increase. The increase in
industrial supplies and materials resulted from nearly equal rises in petroleum and
products, in metals and nonmetallic products, and in chemicals. The increase in
capital goods was led by gains in machinery and equipment.
For 2010, imports of goods increased to $1,935.7 billion from $1,575.4 billion. All major
end-use categories of imports increased, most of them substantially. Industrial
supplies and materials and capital goods accounted for most of the increase. The
increase in industrial supplies and materials was mostly accounted for by a rise in
petroleum and products, with a rise in metals and nonmetallic products also contributing.
Services
For 2010, the surplus on services increased to $151.4 billion in 2010 from $132.0 billion
in 2009. Services receipts increased to $545.5 billion from $502.3 billion. All major
categories of services receipts increased, with the largest increases in other private
services and travel.
Services payments increased to $394.2 billion from $370.3 billion. Nearly
every major category of services payments increased. The increase largely resulted
from growth in other private services and other transportation.
California Trade Facts
U.S. Department of Commerce reported that, in 2010, California exports amounted to over $143 billion. This is an increase from the 2009 total of nearly $120 billion. California maintained its perennial position as a top exporting state.
Exports from California accounted for 11 percent of total U.S. exports in 2010. California's top trading partners are Mexico, Canada, China, Japan and South Korea. California trade and exports translate into high-paying jobs for over one million Californians.
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 30 percent of all the state's exports.
Although California exports of transportation equipment, machinery manufactures and chemicals suffered 20 percent decreases in 2009, by year end 2010 each category had made a full recovery and began showing signs of an increase.
Mexico
Mexico continues to be California’s number one export market. California exports to Mexico totaled $21 billion in 2010. Mexico purchases 15 percent of all California exports.
California’s exports to Mexico are driven by computers and electronic products, which account for 30 percent of all California exports to Mexico. Although exports to Mexico decreased in 2009, a full rebound was made by 2010 and a continuing increase was expected.
Canada
Canada is now California's second largest export market, purchasing 11 percent of all California exports. In 2010, California exported over $16.1 billion to Canada.
Computers and electronic products remained California’s largest exports, accounting for 26 percent of all California exports to Canada. Exports of crop production from California to Canada grew in 2009 to nearly $2 billion.
Asia-Pacific
California is the largest exporting state to Asia. In 2010, California exported almost $62 billion in goods to the region.
Greater China
California exports to Mainland China totaled $12.4 billion in 2010, a considerable increase from the previous year. Exports to Hong Kong grew in 2010 as well. Computers and electronic products accounted for 30 percent of exports to China.
In 2008, Hong Kong removed duty off wine, making it the first duty-free wine port amongst major economies. U.S. wine exports to Hong Kong went from $9 million in 2007 to $42 million in 2009.
Japan
California exports to Japan totaled $12.2 billion in 2010. Computers and electronic products accounted for 23 percent of total exports.
European Union
California exports to the European Union increased in 2010 to total $24.3 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 17 percent of all California exports.
Export Totals from California (In $ U.S. millions)