Posted by Sara Rilatt, Intern
This graph provides an overview of Southcentral Pennsylvania's export activity to different regions of the world. NAFTA countries consistently retain the highest share of exports from the Southcentral region, ending just below 45% in 2017. Africa also remains steady at a share of under 5% for the last 9 years. The share of exports reaching South America has slowly declined since 2012, and currently sits at around 5%. Between 2007-2012, exports to Asia saw significant growth while exports to the EU decreased. However, after 2013, exports to Asia suddenly dropped to below 20% and have remained between 25-20% in recent years. At the same time, exports to the EU have generally increased since 2013, and now make up about 22% of exports from the Southcentral region. One point to note is that exports to Asia account for about 21% of the Southcentral region's exports, which is 10 percentage points lower than the national figure. Overall, Asia shows the most volatility in the graph.
Based on the data, the Southcentral region of PA has significant trade connections with the EU, Asia, and NAFTA countries in particular. Because the largest export markets in this region are Canada and Mexico, the impact of uncertainty surrounding the negotiations of a new NAFTA are likely to be more severe. Similarly, the trade conflict with China and the turmoil of the United Kingdom will have a significant impact on exports to both Asia and the EU. This data underscores the importance of diversifying export locations. Exporters should consider new markets in Africa and South America to broaden their base and protect from uncertainty when it occurs in one region, as in the case of NAFTA and the EU.
Data taken from Office of Trade and Industry Information, Manufacturing and Services, International Trade Administration, U.S. Department of Commerce.
These world regions are based on political, economic, and geographic groupings. This particular set of groups generally comprises 80-98% of world trade from the Southcentral region. However, not all countries are accounted for, so values cannot be summed to arrive at meaningful totals.