Home Uncategorized Importance of US Trade Data in International Trade

Importance of US Trade Data in International Trade

7
0

The US Trade Data shows that there has been a significant shift in the purchasing power of the United States as a whole and that this change is being felt in the import and exports of the nation. The US now stands out economically compared to all other major trading partners when it comes to foreign direct investment flows. The US Trade Data shows that the United States has been one of the strongest contributors to the current global economic recovery. However, the US Trade Data also shows that the US economy is facing some headwinds as evidenced by the fact that gross domestic product (GDP) growth is slowing down and unemployment is rising. The data also indicates that the slowdown in US exports is being driven by a combination of lower manufacturing growth and higher imports, particularly of goods for consumption.

While it is true that overall US trade deficit has narrowed (although there are many fluctuations in the figures), it is also true that the narrowing of the deficit is being accompanied by widening gaps in export composition. While the US focus on reducing its imports has been effective (imports of goods like vehicles and consumer goods have picked up as a result of tighter dollar circulation), it appears that the focus is now shifting towards re-exporting more goods such as industrial raw materials. This could be interpreted as a strategy to counter balance the widening gap in international trade and boost US exports.

The reason behind the US government’s renewed focus on re-exporting –

If the goal is to re-establish the US as a low-cost exporter of good, then one has to ensure that one does not fall into the trap of thinking of the “single Export Market” as something divorced from the rest of the US monetary union. For starters, it is important to note that US is not a “single export market” even as some claim to be. The term simply means that the country exports different types of goods to the rest of the world. For instance, the United States is one of the largest importers of petroleum and natural gas and China is its largest provider of the same.

There are other aspects as well to consider while looking at the significance of US Trade Data in terms of re-exporting. For example, the value of exports vis-a-vis imports is crucial in determining the potentials of re-exporting. In fact, the value of exports is actually a part of the package of all US trade agreements with other countries. As such, it is a part of the US total trade flows and the effects of trade on the balance of trade.

Looking at the recent trends, we can find that there is an increasing reliance on imported goods. Thus, the current US deficit with imports is primarily driven by the increased imports of goods such as petroleum and natural gas. To keep the imports balanced, the role of the goods exporters needs to be considered.

To conclude, the value of US trade data in terms of exports, imports and phase one commitments has implications for both import and export policy. The present US deficit with other countries is mainly due to its excessive dependence on imports. However, by cutting down or reducing its imports from the US can easily return to the path of balance of payments. To do this, the government should adopt policies that are economically beneficial. The use of trade data analysis coupled with careful negotiations can help achieve this goal. If you would lie to have access to the trade data for business purposes, you can check out the websites such as https://importkey.com for information.

LEAVE A REPLY

Please enter your comment!
Please enter your name here