NAFTA Surface Trade Fell 31.5 Percent

Surface Trade with Canada and Mexico plummeted 31.5 percent in June compared with June a year ago, but the month-to-month increase of 6 percent runs counter to seasonal trends and confirms signals that the economy may have hit bottom in May.

Trade using surface transportation between the United States and its North American Free Trade Agreement partners dropped to $50.8 billion in the sixth consecutive month with a year-to-year decline of greater than 27 percent, according to the Bureau of Transportation Statistics of the U.S. Department of Transportation.

But that comparison is with trade last June of $74.1 billion that was near the all-time peak. And in June this year, trade increased from the $47.8 billion in May that was near the year’s lowest mark. In the last two years, while the economy was generally growing, surface trade was nearly flat between May and June.

June was the ninth consecutive month to show a year-over-year decline and the eighth at a double-digit rate. The last three months were the hardest hit, with a 33.1 percent decline in April and a fall of 35.4 percent in May. June’s 31.5 percent decline is a modest improvement.

U.S.–Canada surface transportation trade totaled $31 billion in June, down 36.6 percent compared to June 2008. The value of imports carried by truck was 34.8 percent lower in June 2009 compared to June 2008, while the value of exports carried by truck was 28.8 percent lower during this period.

U.S.–Mexico surface transportation trade totaled $19.7 billion in June, down 21.8 percent compared to June 2008. The value of imports carried by truck was 18.0 percent lower in June 2009 than June 2008 while the value of exports carried by truck was 14.3 percent lower, BTS said.

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