Through the years, the Lone Star State has been a leader in countless endeavors, due in large measure to the unique capabilities of Texans to accomplish and achieve.
One of the areas in which Texas now ranks first is international trade as the state’s exports in 2002 of $95.4 billion surpassed California’s $92.2 billion, the traditional leader. In the interest of fairness, the dock strike on the West Coast last year played an important role in the Golden State’s slippage. In all likelihood, it may regain the top spot when the 2003 totals are counted. But being first now gives us a good opportunity to review where we are and how we might improve in the future.
In 2000, California had nearly $16 billion more than Texas in international shipments. In 2001, both states’ trade decreased; California experienced a 10.75% drop, and Texas saw an 8.54% decline. US exports of goods and services for the year similarly dropped, sliding 6.3%. In 2002, US exports were down about 2.5%, and imports rose some 3.8% for the year, increasing the nation’s trade deficit to a record high.
Last year the amount of California exports slipped again while Texas trade rebounded 0.42% to gain the lead among all 50 states. For the month of January 2003, Texas exports increased 11.02% while California had a decrease of 4.30%. These percentages represent exports of $7.96 billion and $6.85 billion for Texas and California, respectively.
Texas exports in 2000 were 13.3% of the US total, and for the year 2002, goods and services shipped from Texas amounted to 13.7%. In other words, for every seven and a quarter dollars in US trade, about one dollar was generated from exports originating in Texas. The proportion increased slightly in January 2003 as Texas exports represented 14.5% of US totals.
Mexico is the top trading partner for both the US and Texas. Approximately 45% of US trade to our southern neighbor goes through the Lone Star State with Texas products accounting for about 47% of that amount. Leading Texas exports are computer and electronic products, chemicals, appliances, and transportation equipment and non-electrical machinery. The other countries in the top ten receiving Texas goods are Canada, Japan, Taiwan, the United Kingdom, Brazil, Singapore, the Netherlands, Germany, and South Korea.
Everyday, some 12,000 trucks transport goods manufactured in Texas and the US across the Mexican borders. During the same time period, approximately 1,200 rail cars traverse the state’s six border crossings. Of the dollar value of the exports, the trucks carry about 90%, though the amount shipped by rail traffic is increasing.
Trade with Mexico has grown substantially since NAFTA. Food and agricultural products between the US and Mexico has doubled over the past decade with Mexico now the fourth-largest US export market for farm products. About 45% of the food and agricultural products crossing the border between the two countries is perishable.
The NAFTA-induced trade increases have naturally led to congestion at the various border entry points. The delay in reciprocal truck access amid concerns related to operational safety continues to plague the process. Investment in improving infrastructure and integrating the US-Mexico transportation systems will help stimulate trade and significantly benefit Texas. In fact, the technology of choice to track and regulate shipments at present is a pencil and a pad of paper.
Similarly, as greater numbers of Texas businesses embark on ways to create or increase trade opportunities with partners around the globe, Texas’ chances of remaining a top export state will be enhanced significantly. I’ll keep you posted on the progress of such endeavors.