Export derives from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an “exporter” In International Trade, “exports” refers to selling goods and services produced in the home country to other markets. If we look at world’s largest exporter countries, United States is the world’s third largest exporter, after the European Union (EU) and China. In 2012, total U.S. trade with foreign countries was $4.9 trillion. This consisted of $2.194 trillion in exports of both goods and services.

Canada is number one export partner for US and it represents 19 percent of total exports of United States. Second biggest partner is European Union with 17 percent then Mexico with 14 percent, China with 7 percent and Japan with 5 percent is following Canada and EU. According to the Bureau of Economic report the U.S.  exported $2.1 trillion worth of goods in 2011. Exports in the United States increased to 187403 USD Million in April of 2013 from 185208 USD Million in March of 2013. Exports in the United States is reported by the U.S. Census Bureau.

What are top five export commodities in USA?

1. Petroleum Refining

According to 2012 numbers Petroleum refining export is $108.0 billion. Despite the relatively tiny role of exports within the US Petroleum Refining industry (IBIS World report 32411) – exports account for an estimated 15.0% of the $725.0-billion industry) – foreign demand for refined products is expected to increase over the next 10 years. [Read more...]

A free trade zone (FTZ) or formerly called free port is an area within which goods may be landed, handled, warehoused, manufactured or reconfigured, and re-exported as duty-exempt finished goods without the intervention of the customs authorities, import quotas, export subsidies, and protective tariffs. In another explanation, a free trade zone is a specified federally sanctioned site within the territorial jurisdiction of a country where there is either a minimum or no customs control and without a through examination on entry or exit of goods as foreign and domestic goods are considered to be outside of the U.S. customs territory. If the final product is exported from the country which the zone is located, no custom duty is ever paid. If the final product is imported to the consumers within the country,  duty and excise taxes are due at the time of transfer from the foreign trade zone and formal entry is made into the country.  Duty is paid on the product itself or its imported parts, whichever is lower. (Many finished products have lower duty rates – or are duty-free – than their components).

Free Trade Zone is usually located at a sea port, international airports and national frontiers-areas with many geographic advantages for trade where the government has liberalized foreign trade terms beyond what are in force in the rest of the country. They are usually found in developing countries as the goal of a free trade zone is to promote intense economic growth in a particular area by attracting international investment and increased mercantile activity. [Read more...]

The Union of South American Nations (UNASUR), also known as Unión de Naciones Suramericanas by the spanish, União das Nações Sul-Americanas by the Portuguese and Unie van Zuid-Amerikaanse Naties by the Dutch,  is an intergovernmental union modeled as the European Union that was launched formally in May 2008. The main aim of forming the union was to enhance political, economical, social and cultural integration among the South American countries. It would also make to promote environmental and infrastructural development. The idea of ​​South American integration is at the root of the history of South America, is the thought of San Martin and Bolivar among others, the creation of Patria Grande.

The treaty that led to the formation of the Union of South American Nations was signed in 2005 in a summit held in Brasilia by member states of the South American community of Nations (SACN). This treaty was signed by twelve nations, and it replaced the South American Community of Nations (SACN) on May 23, 2008. These nations were Argentina, Brazil, Bolivia, Colombia, Chile, Guyana, Ecuador, Paraguay, Peru, Uruguay, Venezuela and Suriname.

Panama and Mexico hold observer status in the union. The treaty established goals for integration on related matters and established a general secretariat in Quito, Ecuador and a parliament in Cochabamba, Bolivia. Some of the focus points of the UNASUR were the following: strengthening policy dialogue among Member States to guarantee a space for consultation to reinforce South American integration and participation of UNASUR in the international arena.

[Read more...]

NAFTA, The North American Free Trade Agreement, was signed in 1994. NAFTA is basically a free-trade agreement between Canada, Mexico, and the United States. The idea behind it is to promote the North American economy and to protect the intellectual property rights of the businesses. Under the NAFTA, all non-barriers to agricultural trade between United States and Mexico were eliminated. In 1998, all tariffs related to agricultural trade between United States and Canada was removed. Between Mexico and Canada, most of the tariffs were eliminated within 15 years from the beginning of the NAFTA application.

Certainly, one sector of the U.S. economy that has been affected the most by the NAFTA is the labor union. Almost all of the labor unions in the U.S. have opposed NAFTA. They fear that they would lose their jobs to the Mexicans because of lower wage rates there. Additionally, there is a trade deficit especially between United States and Mexico. Since 1994, there are many jobs destructed than jobs created in all 50 states.  [Read more...]