Trade Statistics

California is one of the 10 largest economies in the world with a gross state product of over $1.8 trillion. International related commerce accounts for approximately one-quarter of the state’s economy. Although trade is a nationally determined policy issue, its impact on California is immense. In 2009, California exported to 228 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

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 $14.3 trillion.  In 2009, U.S. exports of goods and services fell by 11.1 percent from $1.8 trillion to $1.6 trillion, while U.S. imports decreased significantly by 24 percent to 1.9 trillion from the previous year. 

The largest export markets for U.S. goods in 2009 were Canada ($204.7 billion, down 22 percent), Mexico ($129 billion, down 14.6 percent), China ($69.6 billion, down by two tenths of a percent), and Japan ($51.2 billion, down 21 percent).

Annual Summary for 2009
Source: Bureau of Economic Analysis http://www.bea.gov/newsreleases/international/trade/tradnewsrelease.htm  

Goods and Services
The goods and services deficit was $380.7 billion in 2009, down from $695.9 billion in 2008.  As a percentage of U.S. gross domestic product, the goods and services deficit was 2.7 percent in 2009, down from 4.8 percent in 2008.

Goods
For 2009, exports of goods were down $230.5 billion from 2008.  Decreases occurred in industrial supplies and materials ($91.7 billion); capital goods ($67.3 billion); automotive vehicles, parts, and engines ($39.8 billion); foods, feeds, and beverages ($14.4 billion); consumer goods ($11.3 billion); and other goods ($6.2 billion).

For 2009, imports of goods were down $545.6 billion from 2008.  Decreases occurred in industrial supplies and materials ($318.4 billion); capital goods ($84.5 billion); automotive vehicles, parts, and engines ($73.8 billion); consumer goods ($53.2 billion); other goods ($8.3 billion); and foods, feeds, and beverages ($7.4 billion).

Services
For 2009, exports of services were $507.5 billion, down $42.1 billion from 2008.  Decreases occurred in travel ($15.7 billion); other transportation ($14.0 billion), which includes freight and port services; royalties and license fees ($8.2 billion); passenger fares ($4.3 billion); and other private services ($3.4 billion), which includes items such as business, professional, and technical services, insurance services, and financial services.

Within other private services, the largest decrease was in financial services.  Increases occurred in transfers under U.S. military sales contracts ($3.5 billion) and U.S. government miscellaneous services ($0.1 billion).

For 2009, imports of services were $371.2 billion, down $34.1 billion from 2008.  Decreases occurred in other transportation ($17.9 billion); travel ($7.1 billion); passenger fares ($7.1 billion); royalties and license fees ($2.1 billion); and direct defense expenditures ($0.7 billion).  Increases occurred in other private services ($0.5 billion) and U.S. government miscellaneous services ($0.2 billion).  Within other private services, the largest increase was in insurance services.

California Trade Facts

U.S. Department of Commerce reported that, in 2009, California exports amounted to over $120 billion. This is a decrease from the 2008 total of nearly $145 billion. California maintained its perennial position as a top exporting state.

Exports from California accounted for 11 percent of total U.S. exports in 2009. 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 29 percent of all the state's exports.

California exports of transportation equipment, machinery manufactures and chemicals also suffered 20 percent decreases in 2009.

Mexico
Mexico continues to be California’s number one export market. California exports to Mexico totaled $17.5 billion in 2009. Mexico purchases 15 percent of all California exports.

California’s exports to Mexico are driven by computers and electronic products, which account for 26 percent of all California exports to Mexico. Although over exports to Mexico decreased from 2008, computers and electronic product exports showed a slight increase to $4.5 billion.

Canada
Canada is now California's second largest export market, purchasing 12 percent of all California exports.

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 2009, California exported almost $48 billion in goods to the region.

Japan
California exports to Japan, the world’s third largest economy, totaled $12 billion in 2009. Computers and electronic products accounted for 24 percent of total exports.

Greater China
California exports to Mainland China totaled $10 billion in 2009, a slight decrease from the previous year. Exports to Hong Kong grew in 2009. 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. 

European Union
California exports to the European Union increased in 2009 to total $22.5 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 (2010)