Trade with the Asia-Pacific Region Benefits Indiana’s Businesses and Workers
In a world where 95 percent of consumers reside outside our borders, APEC comprises 40 percent of the global population. The Asia-Pacific region offers tremendous opportunities for U.S. exporters. The Asia-Pacific region is the largest market in the world for U.S. exports and receives over 70 percent of U.S. agricultural exports. Many of these dynamic economies are growing faster than the world average and together generate 56 percent of global GDP in 2010.
Indiana’s goods exports in 2010 totaled $29 billion. Of Indiana’s total exports, $18 billion, or 63 percent, went to markets in the Asia-Pacific region. The top three product categories to APEC member economies exported in 2010 were transportation equipment, machinery, and chemical manufactures.
Indiana Exported $18 Billion in Goods to Asia-Pacific Countries in 2010:
Goods Exports Support Jobs for Indiana Workers: Jobs supported by Indiana’s goods exports are estimated to be 238,000 (2008 data are the latest available). Nearly one-quarter (22.7 percent) of all manufacturing workers in Indiana depend on manufacturing exports for their jobs (2009 data are the latest available). Although not measured, there are also additional jobs supported by Indiana’s exports of services.
A total of 6,558 companies exported goods from Indiana locations in 2008. Of those, 5,619 (86 percent) were small and medium-sized enterprises (SMEs), with fewer than 500 employees.
Small and medium-sized firms generated 19 percent of Indiana’s total exports of merchandise in 2008. Notably, small and medium-sized firms benefit from the tariff-elimination provisions of free trade agreements. The transparency obligations, particularly those in the customs chapters, are vital to small and medium-sized firms, which may not have the resources to navigate customs and regulatory red tape.