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U.S. TRADES - Essay Example

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The leading markets for US are Canada, Mexico, and Japan. At the moment, Canada is the largest trading partner of United Stated with around 707 billion USD in goods and private services trading during the…
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Download file to see previous pages The major export categories were Machinery, Mineral Fuel and Oil, Vehicles, and Plastic. NAFTA (North American Free Trade Agreement) has promoted this link by including wide-ranged, market-opening regulations in the agreement. It is also developed a more impartial set of trade policies so the trade barriers can be decreased and removed in Mexico (Besedeš, 2013). Since this agreement was signed, the trade has increased sharply among the nations who are parties to it; however, this increase of trade activity has caused increasing trade deficits for the US with both Canada as well as Mexico.
Japan is the third largest partner of the US with around 300 billion USD in goods and private services trading during the year 2013. In 2010, the Economic Harmonization Initiative was launched between US and Japan to boost the economic growth of both countries by promoting collaboration to harmonize policies that facilitate trade. With the four percent (around 3.00 billion USD) drop as compared to 2012, the US goods trade deficit with Japan was 73 billion USD during 2013, and accounted for 11 percent of the entire US goods trade deficit.
The Asia-Pacific region is of vital significance for the US as it is the rapidly developing region as well as a key driver of international economic development. In fact, the region already formed more or less 60 percent of international gross domestic product and around 50 percent of global trade, and is likely to grow by nine percent in 2014. During 2011, the Trans-Pacific Partnership (TPP) nations had the entire GDP of 18 trillion USD, of which more or less “85 percent comprised the US economy” (Williams, 2013, p. 98). United States exports to existing TPP affiliates were around 110 billion USD during 2011 and imports were 95 billion USD, indicating that the US had a trade surplus with existing TPP economies of approximately 14 billion USD.
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