Top 10 Trade Partners of United States from Asia-Pacific

The United States is a major global trade partner, and increasingly more so with countries in the Asia-Pacific region. The US has a dynamic relationship with many of these countries, exchanging goods and services to the benefit of both parties. In this article, we will look at the top 10 trade partners of the US from the Asia-Pacific region. We will explore each country’s importance to US trade, as well as what makes them particularly attractive trading partners for the US.

China

The US-China trade relationship has been fraught with tension over the past several years. Since 2018, the two countries have engaged in a series of tit-for-tat tariffs that have resulted in billions of dollars worth of losses for both sides. As the US and China attempt to address their differences and reach an agreement, it is important to understand how this situation has come about, as well as its potential implications for both countries. 

The current trade dispute between the US and China began when President Trump imposed tariffs on $250 billion worth of Chinese goods in 2018. This was followed shortly thereafter by retaliatory tariffs from Beijing on an additional $110 billion worth of American products. These economic tensions escalated further when Washington proposed new restrictions on technology exports to China last year. In response, China threatened more countermeasures against American companies doing business there.

Japan

The US-Japan trade relationship has been a strong and important economic partnership for decades. The two nations have collaborated on a variety of areas, from financial services to energy production, resulting in mutually beneficial opportunities for businesses in both countries. In 2019, the total value of goods traded between the two nations exceeded $200 billion dollars, making the United States and Japan one of the largest trading partners in the world. 

In recent years, US-Japan trade has continued to remain a priority for both countries’ governments. A bilateral trade agreement was signed by President Trump and Japanese Prime Minister Shinzo Abe in September 2018 that addressed several issues such as tariffs on agricultural products and digital commerce. Both leaders emphasized their commitment to continuing free and fair trade with each other at future meetings throughout 2020.

South Korea

The US-South Korea trade relationship is one of the strongest and most important bi-lateral trading partnerships in the world. Since their free trade agreement was signed in 2012, US-South Korea trade has grown exponentially, with two way goods and services totaling more than $130 billion in 2017. South Korea is the United States' sixth largest goods trading partner, while America remains South Korea's second largest goods trading partner.

Together, the two countries form a mutually beneficial partnership that is essential to the global economy. The strong economic relationship between both nations has led to increased investment opportunities as well as job growth for both countries. By working together, they are furthering their mutual interest of achieving economic stability and prosperity through increased bilateral trade and investment. With continued cooperation from both sides this powerful partnership will continue to be an invaluable asset to each nation’s economy for years to come.

Taiwan

The United States and Taiwan have enjoyed a robust trading relationship for decades. This mutually beneficial relationship has been built upon a foundation of trust, mutual respect, and shared values. According to the Office of the United States Trade Representative (USTR), the two countries enjoy an open economic partnership that has boosted both their respective economies. US exports to Taiwan totaled $20 billion in 2019 with goods including machinery, electrical machinery and equipment, aircraft, plastics, mineral fuels and oils accounting for the largest share.

In 2020 Taiwanese investment in the United States was valued at $45 billion dollars across various sectors such as technology production and research & development (R&D). The USTR also noted that bilateral trade between the two nations has grown steadily since 2011 with total goods traded reaching $63 billion in 2019.

Vietnam

The US-Vietnam trade relationship is one of relative youth, but it has been growing rapidly in recent years. The two countries have established a Comprehensive Partnership, which facilitates collaboration in a wide range of areas such as economic, cultural and security cooperation. Their bilateral trade volume has grown exponentially since the restoration of diplomatic ties in 1995; in 2018 alone, the total value of exports and imports between the two nations exceeded $65 billion USD.

Apart from traditional goods such as agricultural products, Vietnam is also increasing its imports from the US for items like machinery, equipment and aircraft parts - all necessary components to help modernize their manufacturing industry. In return, Vietnam exports electronics to America at competitive prices while offering high quality standards that rival those found elsewhere.

Singapore

The US-Singapore trade relationship is a significant one, with the two countries enjoying strong diplomatic ties and close economic cooperation. Singapore is the ninth largest trading partner of the United States, and bilateral trade in goods between them totaled more than $44 billion in 2017.

In addition to increased trading activity, Singapore and the US also have a robust investment climate. A key feature of this is Singapore's network of bilateral investment treaties that provide a legal framework to protect foreign investments. Both countries are committed to open markets and free trade agreements, resulting in numerous agreements over the past decades such as The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) which was signed in 1994. This agreement promotes innovation and technological progress by establishing international standards for intellectual property rights protection.

Malaysia

The US-Malaysia trade relationship is one of the most important economic partnerships in the Indo-Pacific region. As two of the twenty largest economies in the world, both countries benefit from increased cross border collaboration and growth. Through a combination of foreign direct investment, tariffs and non-tariff barriers, as well as other forms of economic integration, Malaysia and the United States have been able to build a strong foundation for their bilateral trade relationship.

Since 2006, when free trade agreements were signed to enhance economic cooperation between the countries, US exports to Malaysia have grown steadily at about 6 percent per year. In 2015 alone, total combined bilateral merchandise trade between both nations was valued at approximately $45 billion USD; with imports accounting for $30 billion USD and exports totaling $15 billion USD.

Thailand

The United States and Thailand have long enjoyed a strong trade partnership, with bilateral trade totaling $36 billion in 2019. The US is the largest foreign investor in Thailand, and accounts for nearly one-fifth of the country's total exports. Over the past decade, there has been a steady increase in both US exports to Thailand and Thai imports to the US.

In 2019, key products exported from the US to Thailand included machinery and transportation equipment, electronic equipment, mineral fuels and oil, electrical machinery, cereals, aircrafts and parts thereof. Meanwhile major products imported from Thailand into the US include computers & electronic parts; furniture & bedding; plastic materials; non-knit clothing; miscellaneous food preparations; footwear; electric lighting equipment and rubber & rubber articles. These goods serve as vital inputs for many industries in both countries.

Indonesia

The United States and Indonesia have a long-standing trading relationship, with two-way goods trade totaling $20.2 billion in 2016 according to the Office of the United States Trade Representative. The US is one of Indonesia's major trading partners, with imports from Indonesia amounting to almost $14 billion in goods and services in 2016. US exports to Indonesia totaled just over $6 billion dollars, making it a top five destination for US goods and services exported abroad. 

Indonesia is particularly important for American agricultural products such as wheat, soybeans, corn, animal feed products and cotton. These commodities make up nearly half of total US exports to Indonesia each year.

Philippines

The US-Philippines relations have been strong for decades, and trade between the two countries is an important part of that relationship. The United States has consistently been one of the Philippines' largest trading partners, with total two-way goods and services trade totaling $20.4 billion in 2018. In 2017, the US exported $10.1 billion worth of products to the Philippines while importing $10.3 billion from the country in return. 

In recent years, there have been several key initiatives undertaken by both nations to further strengthen their economic ties and boost bilateral trade relations. Several agreements have been signed between them to increase market access for their respective exports as well as facilitate investment flows between the two countries.

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US-Asia Pacific trade agreement has the potential to be a powerful instrument for economic growth and stability in the region. It could play a crucial role in promoting sustainable development, creating jobs and increasing incomes. The countries of the region have taken an important step towards realizing their vision of a prosperous future by reaching this agreement. Check out more in Export Portal Blog!

It is now up to each nation to take advantage of the opportunities created by this agreement and ensure that it facilitates development and reduces poverty.