Monthly changes in the overall U.S. trade deficit tell only part of the trade story. In today's environment of expanding trade agreements and greater economic integration, it is often more informative to look at U.S. trade on a regional basis, and to track total trade rather than simply exports, deficits and surpluses.
The Trade Index reveals that U.S. trade in the Western Hemisphere has consistently grown faster than our trade with the rest of the world since 1990. And trade with our NAFTA partners outshines that with all other regions on the index throughout this decade. U.S. exports consistently make up a larger portion of trade with NAFTA and South and Central American countries than do exports as a percentage of U.S. trade with the rest of the world.
Here is how the Index works: The annual average for U.S. trade in 1990 is equal to 100, allowing us to speak in terms of percentages. U.S.- NAFTA trade in January 1999 was 205% of similar trade in 1990. We adjust the raw data provided by governmental agencies for fluctuations in international prices to give a more accurate account of the volume of trade in real dollars.
Tracking U.S. Trade focuses on total trade (exports plus imports) in goods only between: 1) the U.S. and NAFTA members; 2) the U.S. and South and Central American countries; and 3) the U.S. and the rest of the world. Imports, as well as exports, contribute to the growth of the U.S. economy in that they provide less expensive finished consumer goods to American families and needed manufactured goods for American industry. For example, a large part of U.S. trade with Canada and Mexico is in automotive goods used in production and assembly for U.S. cars sold at home and abroad.
Our data for U.S. trade on a monthly basis from 1995 to 1999 is provided for viewing.
This page was last updated on March 27, 1999.