A partnership put to the test
Change is afoot in the US – including in the economy. The new United States-Mexico-Canada Agreement (USMCA), came into force in North America on 1 July.
USMCA replaces the North American Free Trade Agreement (NAFTA) of 1994. Under the new agreement, the three partners – the US, Canada and Mexico – will allow extensive duty-free access to imports. USMCA also includes modified regulations for the automotive industry, the protection of intellectual property and trade in the digital sector. It remains to be seen what influence the agreement will have on economic relations between Germany and the US. Currently the US is Germany’s largest trading partner for exports and the third largest for imports. Conversely, Germany ranks fifth and sixth respectively for the Americans. However, in recent years a number of problems have arisen (see Main Topic, page 10) that are putting this partnership to the test.
North America’s largest ports
by container volumes (2018) (in Mio. TEU) Credit: Statista 2019
9,46
Los Angeles
8,09
Long Beach
7,18
New York/New Jersey
4,35
Savannah
3,4
Vancouver
Germany– US
German imports from US 2019* as % of overall imports
- Chemical products 21.2%
- Equipment 20.3%
- Cars and parts 9%
German exports to US 2019* as % of overall exports
- Equipment 22.4%
- Cars and parts 21%
- Chemical products 19.4%
Germany – Canada
German imports from Canada 2019* as % of overall imports
- Raw materials (excl. fuels) 28.1%
- Equipment 14.8%
- Chemical products 11.6%
German exports to Canada 2019* as % of overall exports
- Equipment 25.4%
- Cars and parts 24.6%
- Chemical products 17.6%
US
Capital: Washington, D.C. | Inhabitants 2019: 329.1 m* | Size: 9,833,517 km2 | GDP/head 2019: US$65,112*
Top imports 2019
as % of overall imports
- Electronics 12.7%
- Cars and parts 11.9%
- Chemical products 10.6%
Top exports 2019
as % of overall imports
- Chemical products 13.7%
- Equipment 10.3%
- Electronics 8.7%
Top supplier countries 2019
in %
- 1. China 18.4%
- 2. Mexico 14.1%
- 3. Canada 12.7%
- 5. Germany 5.1%
Top export markets 2019
in %
- 1. Canada 17.8%
- 2. Mexico 15.6%
- 3. China 6,5%
- 6. Germany 3.6%
Canada
Capital: Ottawa | Inhabitants 2019: 37.4 m*| Size: 9,984,670 km2 | GDP/head 2019: US$46.213*
Top imports 2019
as % of overall imports
- Cars and parts 16%
- Equipment 13.3%
- Chemical products 11.1%
Top exports 2019
as % of overall imports
- Crude oil 15.3%
- Cars and parts 13.2%
- Food 9%
Top supplier countries 2019
in %
- 1. US 50.7%
- 2. China 12.5%
- 3. Mexiko 6.1%
- 4. Germany 3.2%
Top export markets 2019
in %
- 1. US 76.2%
- 2. China 3.9%
- 3. UK 3.3%
Credit: Germany Trade & Invest, 2019 *PROVISIONAL INFORMATION, ASSESSMENT OR FORECAST
