US exports to exceeded its imports from Latin America (excluding Mexico) and Caribbean Islands by $31.8 billion in 2014. Similarly, America ran a $3.5 billion trading surplus with Africa.
The fact that the US earns these trade surpluses indicates American competitive advantages albeit for a specific set of export products.
These major product supply advantages provide a silver lining for the grim fact that the US carried by far and away the world’s biggest trade deficit during 2014, lagging China’s $384.3 billion trade surplus by over a trillion dollars.
America’s trade deficit in 2014 has grown by 14.5% since 2010 when its negative balance stood at $634.1 billion.
US Major Product Supply Advantages
Top 10
Presented in descending order, the following list showcases the general product categories under which the US earned the highest trade surpluses in 2014.
- Aircraft, spacecraft: US$90.9 billion (37.4% of all product surpluses)
- Oil seed: $25.3 billion (10.4%)
- Cereals: $19.6 billion (8%)
- Plastics and plastic articles: $15.1 billion (6.2%)
- Other chemical goods: $15.0 billion (6.2%)
- Optical, technical and medical apparatus: $9.8 billion (4%)
- Meat: $9.4 billion (3.8%)
- Food industry waste and animal fodder: $8.9 billion (3.7%)
- Cotton: $5.4 billion (2.2%)
- Woodpulp: $5.4 billion (2.2%)
The above top 10 product categories represent 74.8% of America’s overall product-category surplus subtotal which amounted to $243.1 billion. Thirty-three of America’s 97 general product categories delivered a surplus in 2014.
Growth
US enriched its trade surplus amounts at the fastest-pace during 2010 to 2014 under the product categories below.
- Other animal-origin products: Up 1,220% since 2010 (US$156.2 million)
- Collector items, art and antiques: Up 393.4% ($1 billion)
- Dairy, eggs and honey: Up 140.7% ($3.6 billion)
- Ores, slag and ash: Up 99.6% ($4.9 billion)
- Miscellaneous food preparations: Up 91.8% ($4.2 billion)
- Ships, boats: Up 88.6% ($2 billion)
- Railways, streetcars and equipment: Up 84.2% ($2 billion)
- Fruits and nuts: Up 73.6% ($2.2 billion)
- Paper: Up 58.2% ($986.0 million)
- Aircraft, spacecraft: Up 49.4% ($90.9 billion)
Detail
From the perspective of the more detailed 4-digit harmonized tariff system (HTS) level, below are 15 products that enabled the US to achieve the highest surpluses in its international trade with other countries during 2014.
- Processed petroleum oils: US$33 billion
- Soya beans: $22.8 billion
- Corn: $10.6 billion
- Gold (unwrought): $7.6 billion
- Coal, solid fuels made from coal: $7.6 billion
- Electro-medical equipment (e.g. xrays): $7.1 billion
- Miscellaneous nuts: $6.8 billion
- Wheat: $6.8 billion
- Integrated circuits/microassemblies: $4.9 billion
- Poultry meat: $4.7 billion
- Iron or steel scrap: $4.5 billion
- Cotton (uncarded or uncombed): $4.4 billion
- Soya-bean oil-cake, other solid residues: $4.1 billion
- Beet-pulp, brew/distilling waste: $3.9 billion
- Miscellaneous food preparations: $3.6 billion
Among these, unwrought gold had the fastest-growing American surplus with a 158.5% gain. In second place were processed petroleum oils up 145% while exported miscellaneous nuts moved ahead in value by 81.4%.
US Major Product Supply Advantages by Country
Top 10
Presented in descending order, the following list shows with which trade partners the US earned the highest trade surpluses in 2014.
- Hong Kong: US$35 billion (16% of US country-specific surpluses)
- Netherlands: $22.3 billion (10.2%)
- United Arab Emirates: $19.2 billion (8.8%)
- Australia: $16 billion (7.3%)
- Belgium: $13.9 billion (6.3%)
- Singapore: $13.8 billion (6.3%)
- Brazil: $11.9 billion (5.4%)
- Panama: $10 billion (4.6%)
- Chile: $7 billion (3.2%)
- Argentina: $6.6 billion (3%)
The above 10 trade partners represent 71.1% of America’s subtotal surplus of $219 billion from the 128 countries with which the US demonstrated competitive trade advantages.That subtotal excludes the 92 trade partners with which the US incurred trade deficits.
Growth
US enriched its trade surplus amounts with the countries below at the fastest-pace during 2010 to 2014.
- Somalia: Up 2,465% since 2010 (US$35.5 million)
- Greenland: Up 2,452% ($7.2 million)
- Kenya: Up 1,535% ($1.1 billion)
- French South Antarctic Territories: Up 1,264% ($7.7 million)
- Liberia: Up 781.6% ($101.1 million)
- North Korea: Up 740.5% ($24 million)
- Togo: Up 583.9% ($1 billion)
- Central African Republic: Up 569.5% ($31 million)
- Uzbekistan: Up 500.5% ($198.6 million)
- New Zealand: Up 404% ($280.1 million)
From the above list, the US showed major product supply advantages over trade partners with comparatively small populations and for generally small surplus amounts. However, America did generate billion-dollar positive trade balances with African nations Kenya and Togo.
Hong Kong
Below are the products that the US produced the highest surpluses in its international trade with Hong Kong.
- Gold (unwrought): US$6.3 billion (18.1% of US surplus versus Hong Kong)
- Phone system devices: $4.3 billion (12.4%)
- Diamonds (unmounted/unset): $3.1 billion (8.9%)
- Jewelry: $2.7 billion (7.8%)
- Integrated circuits/microassemblies: $1.8 billion (5.2%)
- Solar power diodes/semi-conductors: $1.2 billion (3.4%)
- Frozen beef: $1 billion (2.9%)
- Hand-drawn paintings, drawings: $919.7 million (2.6%)
- Miscellaneous nuts: $894.8 million (2.6%)
- Computers, optical readers: $710.2 million (2%)
Among these, hand-drawn paintings and drawings had the fastest-growing US surplus with Hong Kong posting a 358% gain. In second place was frozen beef up 255.2% and phone system devices ahead by 150.4% from 2010 to 2014.
Netherlands
Below are the products that the US produced the highest surpluses in its international trade with Netherlands.
- Processed petroleum oils: US$4.4 billion (19.6% of US surplus versus Netherlands)
- Electro-medical equip (e.g. xrays): $2.9 billion (13.1%)
- Blood fractions (including antisera): $2 billion (8.8%)
- Phone system devices: $1.9 billion (8.7%)
- Orthopedic appliances: $1.6 billion (7.2%)
- Coal, solid fuels made from coal: $1 billion (4.5%)
- Miscellaneous nuts: $990.8 million (4.4%)
- Petroleum gases: $921.4 million (4.1%)
- Medication mixes in dosage: $689.8 million (3.1%)
- Soya beans: $398 million (1.8%)
Among these, petroleum gases had the fastest-growing American surplus with Netherlands posting an 1,858% gain. In second place was soya beans up 762.2% followed by electro-medical equipment such as xrays ahead by 26.7% from 2010 to 2014.
UAE
Below are the products that the US produced the highest surpluses in its international trade with United Arab Emirates.
- Cars: US$2.7 billion (14.1% of US surplus versus UAE)
- Phone system devices: $2 billion (10.2%)
- Computers, optical readers: $985.2 million (5.1%)
- Gold (unwrought): $834.8 million (4.3%)
- Diamonds (unmounted/unset): $384.4 million (2%)
- Miscellaneous nuts: $377.2 million (2%)
- Bombs, grenades, ammunition: $307.5 million (1.6%)
- Automobile parts/accessories: $286 million (1.5%)
- Machinery parts: $264.5 million (1.4%)
- Jewelry: $232.8 million (1.2%)
Among these, phone system devices had the fastest-growing American surplus with United Arab Emirates posting a 181.4% gain from 2010 to 2014. In second place were miscellaneous nuts up 62.4% followed by computers and optical readers which rose in value by 26.2%.
See also United States Top 10 Exports, Fastest-Growing American Export Products, United States Top 10 Imports and America’s Top Import Partners
Research Sources:
The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on November 25, 2015
Trade Map, International Trade Centre. Accessed on November 25, 2015
Investopedia, Net Exports Definition. Accessed on November 25, 2015