Cross-border trade between the United States and its partners in North American Free Trade Agreement (NAFTA) experienced its ninth straight month of year-over-year growth in July 2017, according to data from the Bureau of Transportation Statistics (BTS).
The total value of cross-border trade between the United States and its partners in the North American Free Trade Agreement (NAFTA), which include Canada and Mexico, stood at $89.2 billion in July 2017, a 6.5 percent uptick from 12 months prior and the ninth straight month of year-over-year growth, according to the most recent data from the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS).
All five of the major transportation modes measured by the BTS – vessel, pipeline, rail, truck and air – moved more freight by value in July than a year prior, with vessel up 24 percent, pipeline up 23.1 percent, rail up 4.4 percent, truck up 4 percent and air up 2.3 percent.
The volumes increase in mineral fuel imports partly contributed to the large boost in the value of goods moving by vessel and pipeline.
Trucks continued to be the most common method of transportation for moving goods to and from both Canada and Mexico in July. During the month, trucks accounted for $28.9 billion of the $47.6 billion of imports (60.7 percent) from Canada and Mexico, and $27.5 billion of the $41.6 billion of exports (66.2 percent) from the two countries.
Rail was the second largest mode by value, moving 15.1 percent of U.S.-NAFTA freight, followed by vessel at 7.1 percent, pipeline at 5.6 percent, and air at 3.9 percent.
Meanwhile, the U.S. Commerce Department revealed Thursday that for August, the U.S. trade deficit with Mexico stood at $5.8 billion, while the U.S. trade deficit with Canada totaled $400 million.
Looking ahead, the fourth round of NAFTA renegotiations are scheduled to be held Oct. 11-15 in Washington, D.C.
Commenting on the NAFTA renegotiations, Mexico’s Economy Minister Ildefonso Guajardo urged the parties to stop fixating on trade deficits, according to a report from Reuters Wednesday. “We cannot continue under these optics that our only measurable objective can be the reduction of commercial deficits,” he said.
“Discussing the theme of the deficit would generate a war of protectionism that would dismantle the advance of the agreement. “In the undesirable but possible scenario that the United States leaves the agreement, the possibility that the deficit with Mexico grows is very high,” he added.
NAFTA trade totals $89.2b in July
