WASHINGTON: Arizona export growth thus far in 2016 has given the state a global trade surplus, according to the U.S. Census Bureau. The state ended the first half of the year with a $504 million trade surplus, one of only 16 states, including District of Columbia and Puerto Rico, to show black ink when it comes to shipping exports across the border. Much of Arizona’s increasing surplus comes from increased trade with Mexico in the aerospace and automotive sectors.
This is shown in the trends for the civilian aerospace industry where there is a huge surplus that has been building up for decades. Arizona and the adjoining state of Sonora, Mexico, form the fourth largest aerospace supply chain (including military) in the world and the largest in North America, according to Arizona-Mexico Commission data.
Nationally, the $348 billion trade deficit is the largest trade gap in the past three years, was reported by the U.S. Census Bureau to have been driven by increased oil-related imports. More than $11.5 billion in crude oil and other petroleum products were imported during June.
Service-driven industries, particularly in financial services, and maintenance and repair services, were up the most helping drive service exports to a $6.8 billion surplus in June. Service imports decreased to $41.2 billion, with the largest drop in travel. Travel of foreigners into the U.S. or Arizona is considered an export; travel from the U.S. to other nations is an import. The data mean that fewer U.S. travelers are visiting other countries. Transportation and logistics services was also down in June. The U.S. has its largest trade deficit with China, increasing by $800 million to $29.8 billion for June.
