Monthly freight flows between the US and its North American Free Trade Agreement (NAFTA) partners Canada and Mexico was down in December, but up 7.4% from a year earlier.
According to data from the Bureau of Transportation, US freight flows within the NAFTA region totalled US$93.5bn in December as all five major transportation modes carried more freight by value with NAFTA partners Canada and Mexico than a year earlier. It did, however, represent a decline of 7.1% on November.
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Year-on-year, the value of total US trade with Canada was up 9.5% to $48.7bn as the value of freight carried by vessel increased by 61.1% due, in part, to an increase in the unit value and a 42.8% increase in the tonnage of mineral fuels traded. On the month prior, trade was down 5.1%.
US trade with Mexico meanwhile, was valued at $44.8bn in December, down 9.1% from November but up 5.2% from December last year.
Talks between Mexico, Canada and the US to renegotiate the terms of the North American Free Trade Agreement began in August last year and are still underway, although concerns have been expressed by the US at the lack of progress.
The US did, however, express its optimism last month at securing a deal – suggesting that a withdrawal from the trade pact is not on the horizon. After two days of talks in February, feedback pointed to the need for more work in negotiating modifications and amendments to the deal – but no date has been set for further talks.
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By GlobalDataUS signals a withdrawal from NAFTA unlikely
