December 2010 International Trade

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According to data compiled by the Netherlands Bureau for Economic Policy Analysis, world trade volume jumped by 1.8 percent in December from the previous month, following a downwardly revised increase of 1.8 percent (originally 2.3 percent) in November. Trade growth in emerging economies outpaced that in advanced economies. Even though Japan’s export volume surged by 9.2 percent, export growth in emerging economies surpassed growth in advanced economies as a whole. On the import side, the difference was quite marked, with imports into emerging economies continuing to expand and imports into Japan and the Euro Area declining. Although trade volume increased in December, prices fell by 0.4 percent.

On a year-over-year basis, trade volume rose by an average of 15.2 percent during 2010. Growth was highest in emerging economies in Asia and Latin America. Import growth and export growth in the United States were close to the world average, while growth in the Euro Area lagged considerably. Year-over-year price changes averaged 5.6 percent during 2010.
 

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The U.S. goods and services deficit widened to $40.6 billion in December, from November’s $38.3 billion. Total December exports were $163.0 billion and imports were $203.5 billion. Import growth had been essentially flat since last June, while exports have trended higher by about $1.6 billion per month -- far slower than the rate needed to meet the White House goal of doubling January 2010’s exports by 2015. Doubling will not be achieved until mid-2017 at the current rate of growth.

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U.S. paper exports contributed to the rise in overall exports; they jumped by 305,000 metric tons (10.6 percent) while imports fell by 29,000 tons (-6.5 percent). Both imports and exports remained above year-earlier levels.
 

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Softwood lumber exports settled lower by 7 MMBF (-5.6 percent) in December, while imports were essentially unchanged. As with paper, both lumber exports and imports remained above year-earlier levels.