2011 Surface Trade with Canada and Mexico Rose 14.3 Percent from 2010

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Canadian International Freight Forwarders Association Mar 22, 2012

Surface transportation trade between the United States and its North American Free Trade Agreement (NAFTA) partners Canada and Mexico increased by 14.3 percent in 2011 compared to 2010, valued at $904 billion in 2011, according to the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation. The 14.3 percent increase in trade was the third largest year-to-year increase for the years covered by these data. The $904 billion in U.S.-NAFTA trade was the highest amount since NAFTA went into effect in 1994. BTS reported that total North American surface transportation imports increased by 13.8 percent in 2011 from 2010, and exports increased by 14.8 percent during the same period.

U.S. land trade with Mexico declined less following the recession of 2008-2009 than did trade with Canada and it rebounded faster. U.S.-Canada land trade declined 28.1 percent in 2009 from 2008, then increased by 39.2 percent in the next two years to reach a level in 2011 that was virtually unchanged from 2008. As a result, U.S.-Mexico trade comprised 40.6 percent of North American surface freight in 2011, compared to 35.3 percent in 2008.

U.S. - Canada surface transportation trade totalled $537.0 billion in 2011, an increase of 14.0 percent compared to 2010.  The value of imports carried by truck was 10.0 percent higher in 2011 than 2010 while the value of exports carried by truck was 12.4 percent higher.  The value of pipeline exports increased the most, rising 87.0 percent in 2011 compared to 2010.  Part of this increase is explained by a rise in the price of oil, with the average annual price for a barrel of crude oil increasing from $71.21 in 2010 to $87.04 in 2011 (Historical Crude Prices, Inflation Data.com). 

Michigan led all states in surface trade with Canada in 2011 with $68.4 billion.   Automotive vehicles accounted for $41.3 billion, 60.3 percent of total Michigan – Canada surface trade.  Of the top 10 states for U.S.-Canada surface trade in 2011, Minnesota had the highest percentage change over 2010, a 41.6 percent increase. Oil and gas is the top commodity traded between Minnesota and Canada but 16 of 99 commodities more than doubled in the value of Minnesota – Canada surface trade between 2011 and 2010.

The top commodity category transported between the U.S. and Canada by surface modes of transportation in 2011 was vehicles and vehicle parts (other than railway vehicles and parts) with $96.1 billion in trade. This U.S.-Canada trade in vehicle and vehicle parts was roughly split evenly between exports and imports, reflecting the interdependency of automotive plants on both sides of the border.