Table 2: US Export to BRIC ($ Mn)
Table 3: US Import from BRIC ($ Mn)
Table 4: US Trade Balance with BRIC ($ Mn)
Table 5: US Trade BRIC ($ Mn)
Graph 1: Share of BRIC countries in Trade with US
Graph 2: Share of BRIC countries in export from US
Graph 3: Share of BRIC countries in Import to US
Graph 4: Share of BRIC countries in Trade Balance with U
US-BRIC goods trade is defining new dimensions in the global trade. With developing countries taking centre stage and economic might replacing military power, the US-BRIC trade is bringing strategic shift in the geo political order. Its implications are visible not only in the economic arena but have also shown a multi-dimensional effect in global politics. US-China spat and Indo-US trategic partnership are clear examples of spinoffs.
US Trade with BRIC is dominated by China with a staggering 76% share. The Trade growth has been similar for Russia,China and India as trade has become around 3 times since 2001.The trade with Brazil has shown lower growth than other three. Economic recession has clearly turned to be a dampener for the BRIC-US trade in goods with all four countries falling into the trap. Russia registered maximum fall in Trade with 33% lower value than 2008 and China minimum with around 10% less trade in 2009 compared to 2008.
China remains the largest importer of US goods among BRIC countries with import of $70 bn in 2009. Exports to India have become four fold in last 9 years to touch the figure of $16.4bn, still far lesser than China and Brazil. Data quite clearly reveals that US has not explored Russia as its export destination, as the export remains at abysmally low value of $5bn in 2009.
US import from China in 2009 stands at $296 bn. This value is 1.5 times the total goods export of India. It clearly implies that India needs to explore more export opportunity in US and so there is a clear need for a policy push. While the US trade with rest three stands at $20 bn, China steals the show with 83% share.
Brazil is the only BRIC country with which US has a positive trade surplus. Among the rest three, India seems most acceptable for US policy makers as export and import are almost matching. The biggest concern for US is China which bears 93% of the total negative trade balance created by BRIC except Brazil.
The overall analysis shows that China leads the BRIC with its goods flooding into the US markets. The China-US trade is more than thrice the combined volume of others trade with US. The important aspect is that China has managed to do well even in the year of recession in 2009. So for countries like India, China remains a model. Also,in the foreseeable future China will remain leading trade partner with US and the gap is too big to be bridged by other BRIC countries.
In the recent years, US has become the biggest dumping house of Chinese goods. This is turning out to be a tipping point for Chinese resurgence. While the huge trade deficit of US is causing a slide in dollar strength, the huge Chinese deposits in Treasury funds are financing the US deficit. The ramification is that China is gaining by both hands and if the recent US-China spat is viewed, it clearly shows the criticalness of the issue for US. Though the battle for supremacy is on in almost all areas between the two economic giants of the world, the trade is becoming extremely vital in declaring a clear winner in this political economy world.
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