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America, Canada and Mexico: The Three Amigos of Trade
Canada and Mexico, our NAFTA partners, are America's number one and two buyers. U.S. exports to Canada and Mexico totaled nearly $300 billion in 2004- nearly 40% of all U.S. exports. Canada and Mexico bought more than 25% of Virginia's total exports in 2004. Opportunities abound! To facilitate increased exports in the NAFTA region, the VEDP will lead trade missions to Canada and Mexico this fall. Virginia companies may want to re-focus their efforts on our key buyers next door.
NAFTA was enacted in 1994. Since implementation, trade between the three countries has increased more than 200%. NAFTA eliminated tariffs on most imports which has been especially good for U.S exporters. Between 1993 and 2003, U.S. exports to NAFTA partners rose 88%, with U.S. exports to Canada up 66% and U.S. exports to Mexico up 134%. This growth makes Mexico the third fastest growing major export market after China and Ireland.
To facilitate increased export sales in the NAFTA region, the VEDP- Division of International Trade will host trade missions this October to Canada (click here to download Canada mission flyer) and Mexico (click here to download Mexico mission flyer).
All VEDP Trade missions are open to Virginia companies from all industries. Mission participants benefit from pre-set meetings, briefings and networking functions designed to assist in establishing relationships with Canadian and Mexican business contacts.
Trade Mission to Toronto, Canada: October 17-21, 2005
Why Canada?
- Canada's imports from the world exceeded $270 billion in 2004.
- In 2003, 70% of Canada's imports came from the U.S. and in 2004 Canadians consumed over $6,000 per capita of American goods.
- U.S. exports to Canada reached $189 billion- 23% of all U.S exports.
- The decline of the U.S. dollar has supported U.S. exports to Canada, which continue to grow, rising 11.58 % in 2004 and 12.43% year to date January to March 2005.
- Canada's top imports include machinery and equipment, motor vehicles and parts, crude oil, chemicals, plastics, electricity, and durable consumer goods.
- Virginia's exports to Canada, our top buyer, totaled $2.51 billion in 2004, giving it a 22% share of our total exports.
- Virginia's exports to Canada have also grown steadily, rising 14% in 2003, 19% in 2004, and 9% year-to-date 2005.
Canada's top imports from Virginia are:
- Vehicles which represent 1/3rd of all exports were up 32%. This sector includes construction equipment, up 54%, commercial trucks, up 22% and vehicle parts & accessories.
- Industrial machinery (1/10th of all exports). This sector includes computers and components, compressors, office machine parts, and hand tools.
- Electrical machinery. This sector includes telecom and radio equipment.
- Paper products.
- Plastic compounds, coatings and products.
- Other exports include chemicals, rubbers, books, and mineral fuel (coal).
Trade Mission to Mexico City, Mexico: October 24-28, 2005
Why Mexico?
- Mexico's imports from the world exceeded $170 billion in 2003. Of that, $105 billion or over 62% came from the U.S. In 2004, Mexico's global imports increased 15.8%.
- Mexico's economy grew 5% in 2004 and is projected to grow around 4% in 2005, driven by strong domestic demand and a robust manufacturing sector.
- Mexico has signed a total of 11 free trade agreements with 43 countries, including NAFTA, the European Union, Chile, the five economies of the Central American Common Market, Israel, and Uruguay. In November 2004, Mexico signed an Economic Partnership Agreement with Japan.
- The U.S. and Mexican economies are closely tied. In fact, more than 2600 American companies have operations in Mexico. Recent optimism in the U.S. manufacturing sector fuelled a 15% increase in spending on machinery and equipment within Mexico in 2004.
- Since the U.S. is Mexico's top supplier, the increased spending has buoyed U.S. exports. U.S. exports to Mexico rose 13.67% in 2004, and year-to-date January through March 2005 exports are up an additional 8.16%.
- Mexico's top imports include: Electric machinery, machinery vehicles, plastics, mineral fuels, electronic equipment, motor vehicle parts, and chemicals.
- Mexico is the single largest industrial market in Latin America. This sector in Mexico imports over $80 billion in machinery, components, and inputs annually.
- Virginia's exports to Mexico, our 7th largest buyer, grew 6% in 2003, and 12% in 2004, totaling $423.91 million.
- Virginia has an office in the capital, Mexico City, to assist Virginia exporters.
Mexico's top imports from Virginia
- Industrial machinery was Virginia's top export which includes office machinery and parts for automotive engines. This was followed by electrical machinery and plastics.
- Virginia exports with large growth in 2004 included plastics, up 70%, man-made fabrics, up 130%, pharmaceutical products, up 48%, and paper/paperboard, up 50%.
- Year-to-date trade data show significant increases in Virginia exports of industrial machinery including automatic data processing machines, compressors used in refrigeration, and fuel and lubricants for piston engines; chemicals including paints and varnishes; and textiles particularly cotton yarns.
If you are not currently exporting to Canada or Mexico, you are missing out! These markets buy nearly 40% of all U.S. exports and 25% of Virginia's exports. VEDP trade missions are a great way to enter new markets or to target new industries and buyers in existing markets. Why go it alone? Let the international trade professionals at the VEDP pre-screen prospects, organize meetings, and coordinate travel and logistics for you.
If you are interested in expanding sales to Canada and/or Mexico, we hope you will consider joining us October 17-21, 2005 in Canada (click here to download Canada mission flyer) and October 24-28, 2005 in Mexico (click here to download Mexico mission flyer). For more details on these and other upcoming missions visit the events page of our website at www.ExportVirginia.org.
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