U.S. Trade Gap in Automotive Parts Grows

From The State

COLUMBIA, SC — The U.S. trade deficit in automotive parts has been widening in the past five years with China emerging as one of the fastest-growing contributors to the gap. The U.S. trade deficit in automotive parts was $37 billion last year, up from $13 billion in 2000.

Europe, Japan and Mexico remain the largest contributors to the deficit, but China chipped in a $4.8 billion trade gap last year, up from $3.2 billion in 2004, according to the Motor & Equipment Manufacturers Association.

The U.S.-Mexico trade gap was $13.3 billion last year, the largest for any country.

Imports from Mexico rose dramatically in the wake of the 1993 North American Free Trade Agreement. On the flip side, the agreement also increased trade with Canada, which generated a U.S. trade surplus worth $9.8 billion last year.

For every $1 of automotive parts imported into the United States last year, U.S. operations sold 46 cents in automotive parts to Mexico and $1.45 to Canada. With China, every $1 in imports was offset by only 12 cents in U.S. exports to China.

Imports from China have more than tripled since 2000. This year, they’re on track to top $5 billion, accounting for about 7 percent of U.S. imports.

Europe and Japan accounted for 21 percent of imports last year, but their imports are becoming a smaller portion of the total.