Minnesota Exports Were Valued at $20.7 Billion In
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C HINA Fostering business and culturalI harmonyNSIGHT between China and the U.S. VOL. 13 NO. 6 JUNE 2014 Minnesota Exports Were Valued at $20.7 Billion in 2013 ‘ in other industries such as marketing 6 percent), Colombia ($99 million, up Note: Reports based on 2013 data and sales, transportation, and logistics 19 percent). cover export based on the Harmonized fields – key sectors in delivering goods System, which covers manufactured to markets. Other Markets in Europe Swap your Mercedes, page 3 and non-manufactured exports, manu- The following sections provide more • Export value, 2013: $529 million. factured and non-manufactured ex- details on exports by industry, country • State trend, 2012-2013: up 17 percent. ports, such as agriculture and mining, markets and products. • U.S. trend, 2012-2013: up 2 percent. but not services. • Non-EU markets in Europe had the Regional Export Markets state’s second strongest regional export Minnesota’s exports – including • Minnesota’s three main regional mar- growth rate during this period. (Africa agricultural, mining and manufactured kets in 2013 were North America, Asia had the highest growth rate, at 30 per- products – were valued at $20.7 billion and the European Union. cent.) in 2013. • Minnesota exporters sell a greater • Major markets: Switzerland ($215 • The state’s exports fell by $106 million share of goods to Asia (31 percent vs. million), Finland ($120 million), Russia May Fourth Movement, page 5 (or 0.5 percent) between 2012 and 2013. 25 percent) and to the European Union ($110 million). • Minnesota ranked 20th largest among (21 percent vs. 17 percent) but a smaller • Largest value gains: Switzerland (up all states. share to Central and South America (5 $56 million). • The state’s manufactured exports percent vs. 12 percent) than do U.S. 1 grew 3.3 percent to $19.3 billion and exporters. Croatia joined the European Union accounted for 93 percent of exports of officially on July 1, 2013. Croatia is goods. The state’s manufactured exports North America: included in the European Union for were at a record high. U.S. manufac- • Export value, 2013: $7.2 billion. 2013 annual data, but was included in tured exports grew 2.4 percent. • Share of state exports: 35 percent. the region “Other European Countries” for 2013 quarterly export reports. • U.S. exports increased 2.1 percent. • State trend, 2012-2013: down 5 per- Transferring knowledge, page 6 While exports declined to about half the cent. states, they fell by more than 5 percent • U.S. trend, 2012-2013: up 4 percent. Top Country Markets to 14 states. • Largest markets: Canada ($5.8 billion, Exports increased to 14 of the state’s Seven of Minnesota’s top 10 indus- down 8 percent), Mexico ($1.5 billion, top 25 markets between 2012 and 2013. tries (with exports exceeding $320 mil- up 14 percent). There were some notable changes in lion) increased exports between 2012 rankings. and 2013. Asia: • Jumping into the Top 25: Indonesia (up • Leading exported products were ma- • Export value, 2013: $6.5 billion. to 21st from 32nd), Saudi Arabia (up to chinery ($4.0 billion, down 1 percent), • Share of state exports: 31 percent. 23rd from 28th). optics and medical instruments ($3.3 • State trend, 2012-2013: down 3 per- • Dropping out of the Top 25: Sweden billion, up 7 percent), electrical ma- cent. (down to 26th from 22nd), Russia (down Taishan Mountain, page 9 chinery ($2.5 billion, up 2 percent) and • U.S. trend, 2012-2013: up 4 percent. to 28th from 25th). vehicles ($2.0 billion, up 2 percent). • Major markets (among the state’s top • Minnesota has a relatively large share Exports increased to six of the state’s 10): China ($2.5 billion), Japan ($1 bil- of U.S. exports to the Philippines (6.6 10 largest country markets between lion), South Korea ($624 million), the percent), Ireland (5.3 percent), Finland 2012 and 2013. Philippines ($552 million). (5.1 percent), Luxembourg (4.7 percent) • Minnesota’s top five export markets • Largest value gains: the Philippines and Denmark (3.3 percent), compared were Canada ($5.8 billion, down 8 (up $56 million), Indonesia (up $51 mil- to the state’s share of U.S. exports over percent), China ($2.5 billion, down 1 lion), Vietnam (up $23 million). all markets (1.3 percent). percent), Mexico ($1.5 billion, up 14 percent), Japan ($1.1 billion, down 10 European Union (EU)1: Top Country Markets Chinese bashing, page 13 percent) and Germany ($760 million, • Export value, 2013: $4.3 billion. Exports increased to 14 of the state’s up 4 percent). • Share of state exports: 21 percent. top 25 markets between 2012 and 2013. More than 8,600 businesses throughout • State trend, 2012-2013: up 6 percent. There were some notable changes in Minnesota exported goods and services • U.S. trend, 2012-2013: down 1 per- rankings. In This Issue in 2012, according to the U.S. Depart- cent. • Jumping into the Top 25: Indonesia (up ment of Commerce – representing an • Major markets (among the state’s top to 21st from 32nd), Saudi Arabia (up to increase of about 900 exporters since 10): Germany ($760 million), Belgium 23rd from 28th). Commentary......2,3,13 • Dropping out of the Top 25: Sweden 2009. Exporters’ success on a global ($721 million), United Kingdom ($528 Trade...........1,4,10 scale can impact the local economy million), the Netherlands ($521 mil- (down to 26th from 22nd), Russia (down by creating new jobs in the state. Ac- lion). to 28th from 25th). History...............5 • Minnesota has a relatively large share cording to the International Trade Ad- • Largest value gains: Belgium (up $80 Education...6,7,11,14 ministration at the U.S. Department of million), Netherlands (up $77 million), of U.S. exports to the Philippines (6.6 Commerce: France (up $34 million). percent), Ireland Culture..............11 (5.3 percent), Finland (5.1 percent), • In 2013, U.S. exports of goods and • Largest value declines: Sweden (down Food....................8 services supported 11.3 million jobs, a $28 million), Austria (down $19 mil- Luxembourg (4.7 percent) and Denmark Travel..................9 record high. lion). (3.3 percent), compared to the state’s • Every $1 billion in U.S. exports of share of U.S. exports over all markets Books...............12 (1.3 percent). goods and services supported 5,590 Central and South America: Events............15 jobs. • Export value, 2013: $1 billion. Canada (Rank: 1): • Minnesota ranked 17th among all • Share of state exports: 5 percent. • Export value, 2013: $5.8 billion. states by number of jobs (136,900 jobs) • State trend, 2012-2013: up 6 percent. • State trend, 2012-2013: down 8 per- generated by manufactured exports in • U.S. trend, 2012-2013: up 1 percent. cent. 2011. About 65,100 of these jobs are in • Major markets: Brazil ($384 million, manufacturing, while 71,800 jobs are up 13 percent), Chile ($111 million, up Continues on page 4 PAGE 2 > JUNE 2014 commentary www.chinainsight.info Will China’s economy really surpass the U.S. CHINAINSIGHT this year? By Brian Lund, Daily Finance Publisher/Editor: Gregory J. Hugh Legendary hedge fund manager Or is it? ICP report, “expressed reservations” [email protected] Jim Rogers sold his beloved Manhat- Though there is no denying that about the study’s methodology and “did tan townhouse, packed up his wife China experienced tremendous growth not agree to publish the headline results and 4-year-old daughter, and moved in the six years between the two ICP for China.” The report added “the NBS Manager of Operations/ to China. reports, the acceleration in the numbers of China does not endorse these results Circulation: “This is China’s century,” Rogers may be more a consequence of the ICP’s as official statistics.” Richard He said. “If you were smart in 1807 you change in methodology than in actual There is also a question about recent [email protected] moved to London, if you were smart growth. rates of economic growth . 2011 was a in 1907 you moved to New York City, After revising the way it determined year in which the U.S. was still reeling and if you are smart in 2007 you move purchasing power parity -– essentially from the 2008 financial crisis -- a black Marketing: to China.” the cost of day-to-day living –- the swan event in American history -– flat- Yin Simpson And according to the data in a new ICP concluded that larger developing tening GDP, which has only started to [email protected] report by the World Bank’s International countries, like China and India, have get back on track. Growth of China’s Comparison Program, Rogers’ predic- economies that are expanding faster GDP, on the other hand, has slowed tion of Chinese economic dominance than previously thought. significantly since 2011, coming in at Staff Writers: may come true this year -- which, as the 7.7 percent for 2013, the lowest level Greg Hugh Financial Times points out, is 5 years Many Questions and Asterisks in 14 years. [email protected] ahead of what was previously forecast. But even assuming that the new methodology is sound, there still are Disagreements Abound Elaine Dunn The King Since 1872 reasons to suspect that China may have Given these facts, it’s hard to find [email protected] Economists and statisticians have a long way to go before it can cry “We’re agreement with the ICP’s conclu- recognized for years the inevitability of No. 1!” -- most importantly having to do sions about China’s eminent economic Whitney Clark the Chinese economy eventually eclips- with the accuracy of Chinese economic dominance.