U.S. trade with low-wage Mexico has increased at a faster pace than trade with higher-wage Canada.
Trade between the United States and its North American Free Trade Agreement or NAFTA partners, Canada and Mexico, increased 6.6% in June 2012 compared to the year earlier period as measured by surface transportation. This means that $82.6 billion worth of goods traversed the NAFTA zone. Adjusted for inflation and exchange rates, the June 2012 total was $61.0 billion in 2004 dollars, up 11% from June 2011 according to the Bureau of Transportation Statistics of the U.S. Department of Transportation.
In June, Michigan led all states in surface trade with Canada, at $6.5 billion, a 4.5% increase from June 2011. The top commodity moving between the U.S. and Canada by surface modes of transportation in June was vehicles, valued at $9.9 billion.
U.S. trade by surface transportation with low-wage Mexico has increased at a faster pace than trade with Canada. U.S.-Canada and U.S.-Mexico surface transportation trade in June 2012 both increased compared to June 2011 with U.S.-Canada trade reaching $48.4 billion, a 5% increase, and U.S.-Mexico trade reaching $34.2 billion, an 8.8% increase.
Of the top 10 states by value, California had the largest percentage increase over June 2011, at 55.1 percent. The largest commodity that is traded between California and Canada is also motor vehicles, increasing 171.6% from June 2011 to June 2012 to $1.66 billion.
