NAFTA trade for September increases 13.8%

Year-over-year North American Free Trade Agreement (NAFTA) trade increased almost 14% in September totaling $77.7bn in trade. Both imports and exports showed strong year-over-year increases however, a bit disconcerting is the fact that total trade declined 3.3% from the previous month.

Month-to-month declines were noted in both exports (see Ti Dashboard – Exports Surface NAFTA) and imports (see Ti Dashboard – Imports Surface NAFTA) with declines of 5.1% and 1.8%, respectively. The month-to-month decline could just be seasonal or it could be attributed to slowing manufacturing demand, particularly as exports declined at 5.1%. In either case, it is worth further monitoring over the next few months.

Canada trade increased to $46bn, a 14.7% year-over-year increase, but a 2.3% decline from August. Automobile and parts import trade with Canada increased almost 9% month-to-month. This is perhaps due to the strong US automobile sales over the past few months. However, oil pipeline imports declined 9% and exports declined 24.4% month-to-month.

Mexico trade increased to $31.6bn, a 12.5% year-over-year increase, but a 4% decline from August. Similar to Canada, automobile and parts import trade with Mexico increased 3.4% month-to-month. Oil pipeline exports and imports increased month-to-month by 15.4% and 21.9%, respectively. Export trade in iron and steel products declined 4.3% month-to-month as did electrical parts which declined 5.3%.

US trade with Mexico, in particular, should experience additional growth due to the removal of Mexican tariffs on certain US commodities in exchange for allowing Mexican trucking companies to enter the US. Currently only three Mexican trucking companies have made the cut, but expect more in the coming months.

As the US economy continues to improve expect NAFTA trade to grow as well.

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