Why should US exporters focus on China instead of number one Canada? Blog-93

By Dr. Lade Vedkumar.

Are you planning to expand your international trade in a fast growing market? Are you looking for a lucrative export country?

Being America's exporter do you prefer to export top third numbered export country China, or number one export country Canada?

Of course, any US exporter will prefer Canada. Moreover, Canada is a neighboring country. Is the top exporting or neighboring country the right criteria to choose export destinations? Do you choose the same criteria to decide an export country?

Then I would say wait for a while esteemed readers. Let's understand with a simple demonstration.

In 2021 America's average exports to Canada was 216 billion dollars, export prospects will be 232 billion dollars by 2025.

While in 2021 America's average exports to China was 104 billion dollars. Export prospects will nearly double to 208 billion dollars by 2025.

The largest difference between these two values of 2021 and 2025 is far more in China. It is not only far more in China. Rather, it will be higher than any other country. It indicates faster export growth opportunities in China.

In 2021 America's average exports to Mexico was 180 billion dollars, export prospects will be 208 billion dollars by 2025.

Five reasons-Why should US exporters focus on China?

China has the fastest growing lucrative customer base.

The USA and China rely on each other for mutually beneficial trade.

The US-China trade deal significantly changes in the economic relationship between the world’s largest economies.

USA's Trade with Canada has not grown in real terms over the past decades.

The USA's highest export partner will be Canada by 2024. It is not pleasant on criteria of percentage of export growth.

What will be America's top five gainer products in Canada and China by 2025.

America's export to Canada by 2025.

Very magnificent export prospects are going to emerge in these products.

These are the average export value of 2021, and export prospects up to the year 2025.

1. Car export will drive from 14.2 billion dollars to 16.2 billion dollars.

2. Gas powered trucks less than 5 tons:

Export will grow from 8.2 billion dollars to 10.3 billion dollars.

3. Parts & accessories of motor vehicles:

Export will rise from 8.4 billion dollars to 10.2 billion dollars.

4. Parts & accessories of motor vehicle bodies:

Export will go around 4.6 billion dollars to 5.7 billion dollars.

5. Spark-ignition

Sales market will grow from 3.4 billion dollars to 4.2 billion dollars.

America's export to China by 2025.

Very spectacular export prospects are going to emerge in these products.

1. Soya bean export trade will surge from 9.0 billion dollars to 30.4 billion dollars.

2. Export of cars will expand from 9.3 billion dollars to 11.0 billion dollars.

3. Other machineries:

Export will rise from 3.5 billion dollars to 4.8 billion dollars.

4. Parts & accessories of motor vehicles:

Export will grow from 1.4 billion dollars to 4.8 billion dollars.

Although the list is very long.

5. Chemical wood pulp export will increase from 1.0 billion dollars to 4.4 billion dollars.

Important conclusion:

Best results can be found in countries having larger absolute difference between 2021's exports and prospects by 2025. It will create the space to earn additional export.

As we always say.

'The best prospects cannot be found in the export statistic of the last five years. Because yesterday has passed. Rather, the best prospects are hidden in the next five year statistics'.

Note: All the values are in US dollars. Prices may vary as per the market demand and dollar value fluctuations.

Research sources:

1. World Trade Organization, Trade forecast.

2. World Bank WITS.

3. International Trade Centre.

Research access duration: May 2021.

Author Dr. Lade Vedkumar had completed 'Advanced Program in Export Development' from the world's most reputed 'International Trade Centre' ITC. ITC is a joint venture of the United Nation and World Trade Organization.

Author regularly writes blogs on his blog.

https://futureexportvision.blogspot.com

Readers from all major countries across the globe read his factual and valuable blogs. Particularly the international trade community keenly reads and appreciates his blogs.

Our blog global reader base:

https://futureexportvision.blogspot.com/2021/05/our-blog-readers-across-globe-are-53000.html

He had published 93 blogs up till date. Few of the blogs are as below:

Why Are These America's Top 10 Exports, By 2021-24? Blog-26

https://futureexportvision.blogspot.com/2020/12/why-these-are-united-states-top-10.html

Why Are These The United States Top 10 Export Countries, By 2021-24?

https://futureexportvision.blogspot.com/2020/12/why-these-are-united-states-top-10_7.html

Why Are These The United States Top 10 Imports, By 2021-24?

https://futureexportvision.blogspot.com/2020/12/why-these-are-united-states-top-10_10.html

Why Are These The United States Top 15 Exporting Sub-Regions, By 2021-24?

https://futureexportvision.blogspot.com/2020/12/why-these-are-united-states-top-15.html

Why Are These The World's Top 10 Exports, By 2021-24?