NAFTA trade totals $98.2b in May

Total value of cross-border trade between the United States and its partners in the North American Free Trade Agreement rose 9.4 percent year-over-year in May to $98.2 billion.    The total value of cross-border trade between the United States and its partners in the North American Free Trade Agreement (NAFTA), which include Canada and Mexico, stood at $98.2 billion in May, a 9.4 percent increase from the same 2016 period and the seventh straight month of year-over-year growth, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS).
   All five of the major transportation modes measured by the BTS – pipeline, vessel, air, rail and truck – moved more freight by value in May than a year prior, with pipeline up 60.3 percent, vessel up 28.4 percent, air up 8.7 percent, rail up 7 percent and truck up 5 percent.
   “In May, the increase in the value of freight by pipeline and vessel more closely reflected a greater volume of mineral fuels moved rather than an increase in the price of those commodities,” BTS said.
   Trucks continued to be the most common method of transportation for moving goods to and from both Canada and Mexico in May. During the month, trucks accounted for $32.2 billion of the $53.5 billion of imports (60.2 percent) from Canada and Mexico, and $30.1 billion of the $44.7 billion of exports (67.3 percent) from the two countries.
   Rail was the second largest mode by value, moving 15.5 percent of U.S.-NAFTA freight, followed by vessel at 6.4 percent, pipeline at 5.7 percent, and air at 3.7 percent.
   The U.S. trade deficit with Mexico stood at $6.8 billion in May, while the deficit with Canada totaled $2.2 billion, according to data from the U.S. Commerce Department.
   The Trump administration had sent a letter to Congress on May 18, signaling its intent to renegotiate NAFTA. The U.S. can begin negotiating 90 days from the notification, which would be Aug. 16.
   Last Monday, U.S. Trade Representative Robert Lighthizer released a summary on the objectives for the renegotiation of NAFTA. The Trump administration is seeking a renegotiated agreement that will reduce the U.S. trade deficit, and boost market access in Canada and Mexico for U.S. manufacturing, agriculture and services, the USTR explained.
   Meanwhile, U.S. Treasury Secretary Steven Mnuchin said Thursday the Trump administration may seek a provision to deter currency manipulation in the trade agreement, Reuters reported.