NAFTA Trade Fell 12 Months Running

Surface trade between the United States and its partners in the North American Free Trade Agreement completed a cycle in September of 12 consecutive months of steep declines. U.S. trade with Canada and Mexico was 20.2 percent lower in September 2009 than in September 2008, dropping to $57.3 billion, the Bureau of Transportation Statistics of the U.S. Department of Transportation reported Tuesday.

But the full year of declines combined with recent month to month improvements signal a turnaround is coming. The value of U.S. surface transportation trade with Canada and Mexico rose 5.6 percent in September 2009 from August 2009. Since the record 35.4 percent plunge in May, each month has seen improvement, and September’s year-over-year comparison is the best so far in 2009.

About 88 percent of U.S. trade by value with Canada and Mexico moves on land.

The value of freight movements by truck, rail and pipeline between the United States and Canada and Mexico in September was up 4.3 percent compared to September 2004, and up 32.1 percent compared to September 1999, a period of 10 years, said BTS. Imports in September were up 27.2 percent compared to September 1999, while exports were up 38.4 percent.

U.S.–Canada surface transportation trade totaled $34.8 billion in September, down 25.7 percent compared to September 2008. The value of imports carried by truck was 24.5 percent lower in September 2009 compared to September 2008, while the value of exports carried by truck was 15.1 percent lower during this period.

U.S.–Mexico surface transportation trade totaled $22.5 billion in September, down 10 percent compared to September 2008. The value of imports carried by truck was 7 percent lower in September 2009 than September 2008 while the value of exports carried by truck was 9 percent lower.

Contact Thomas L. Gallagher at tgallagher@joc.com.