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Monday, August 24, 2009

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U.S.-Trade: CAFTA Best, Venezuela Worst

CAFTA sees the lowest decline among top US trade partners in Latin America. Venezuela sees the worst fall.

Venezuelan president Hugo Chavez with state energy workers. Venezuela's exports to the United States - mostly oil - fell by 53 percent or $13.6 billion in the first half. (Photo: Carlos Solorzano/Venezuelan Presidential Press Office)

BY CHRONICLE STAFF

As expected, the first half of 2009 showed significant declines in U.S. trade with Latin America as a result of the global economic crisis. Total trade with the region fell by 27.2 percent to $228.9 billion, according to a Latin Business Chronicle analysis of trade data from the US Census Bureau.

Of that, U.S. exports accounted for $103.9 billion, which was 21.4 percent lower than in the same period last year. Imports from Latin America fared even worse – falling by 31.4 percent to $125.0 billion. As a result, the U.S. trade deficit with Latin America fell by 57.5 percent to $21.1 billion.

The strong decline in the first half stands in contrast with the same period last year, when trade grew by 19.7 percent to $318.9 billion, helped by double-digit increases in both exports and imports. In 2008 as whole, U.S. trade with Latin America grew by 12.9 percent to $633.4 billion.

U.S. trade in the first half fell with every partner in Latin America. U.S. exports to the region grew only with two countries (Haiti and Ecuador), while imports from the region only grew with Haiti and Uruguay.

CAFTA PERFORMS BEST

Despite the heavy dependence on U.S. trade in Central America and the Dominican Republic (which combined form part of the CAFTA free trade group with the United States), they managed to ...

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Keywords: U.S.-LATIN TRADE 1 H 2009 (STATISTICS), Brazil, CAFTA, Chile, Colombia, Mexico, Venezuela

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From: carlos

venezuela

Well, this is good for Venezuela. We don't have to buy things from the US. We can save money and make own goods. Cool news.

From: Jose Dager

MN, USA

(Carlos) Venezuela does not need to buy from the US. In fact, Venezuela does not produce any goods lately. You are not saving any money when you end up importing these goods from Brazil or Ecuador.