President Barak Obama is continually promoting the US National Export Initiative, which is designed to double exports from the US in five years. President Obama announced in early December that the plan is on track and that he and his administration are pushing forward with additional steps that will maintain this momentum. He stated that, “Our prosperity depends not just on consuming things, but also on being the maker of things. In fact, for every $1 billion we increase in exports, thousands of jobs are supported here at home.” The initiative will also focus on strengthening national security by simplifying the current overly complicated export control system in place today, allowing us to focus on the most critical of national security priorities.
Exports hit their highest peak in two years this October. They rose 3.2%, which in turn drove the US trade deficit down quite a bit, 13%. No one really expected it to be driven down so far. China and Mexico are increasing importing from the US in record amounts. The weakened US dollar and a recovering global economy are driving countries to buy from the US. The US export growth was pushed in October by an increase in the export of industrial supplies and materials, including food, automobiles, parts and engines, and capital goods.
The Commerce Department reports that the trade deficit in goods and services decreased from $44.6 billion in September to $38.7 billion in October. Export growth was credited mostly to emerging markets, which are expected to continue to grow as the global economy recovers. Exports grew to $158.7 billion, a 3.2% increase.
Imports into the US went down to $197.4 billion, a .5% decrease. The US import fall occurred because of a decreased demand for crude oil. Crude oil imports were at $21 billion in September 2010 and fell to $18.9 billion in October.
US exports of agricultural machinery have been steadily increasing, as have commodities such as corn, cotton, soybeans, and rice. These types of sustained increases in exports for the US are helping to lead the recovery of our economy, creating revenue and jobs for thousands of Americans. As global trade agreements are made and production in the US increases, businesses in the ocean shipping industry, railway industry, trucking industry, and airway shipping sectors are expected to prosper. PIERS, a leading export trade data company, predicts that containerized export of ocean freight will increase by 4.6% to 11.6 million 20-foot equivalent units.
About the Author: Nelson Cabrera is the Business Development Manager of Lilly & Associates International, a transportaion and logistics company specializing in ocean freight and ocean shipping services. For more information, please visit http://www.shiplilly.com/.