When it comes to the largest economies of the world, California ranks among the top 10 with over $2 trillion of gross state product. California’s economic prosperity relies on the import and export of goods and services by companies that are based in California. The state’s economy is becoming more diverse due to the inflow and outflow of resources based on capital and human resources.
The impact of national economic policies has always had a huge impact on California. California’s exports depend highly on the trade because as of 2013, California had exported to 229 foreign markets. Of this the most important and biggest trade partner for Los Angeles has been Mexico, with $26 million of imports and $36 billion of exports. A remarkable achievement, as trade is something that can raise the living standards of the people of this great state and help feed the world as well.
The Mayor Takes Initiative
Mayor Eric Garcetti led a business delegation to Mexico in the first week of March in his first official foreign trip to Mexico City to strengthen trade ties between the two states. There were a number of business leaders representing the industries of entertainment, engineering-design, environment, infrastructure, retail and construction. The business delegation was organised by the L.A Area Chamber of Commerce who travelled with the mayor.
As Mexico is the largest source of L.A County’s investments, the Mayor met with Mexico’s Government and business officials to enhance trade ties between the two and encourage tourism.
The World Bank ranks the US as the world’s largest economy with a GDP of $16.2 trillion. Among the largest export markets are:
- Canada at $300.2 Billion
- Mexico at $226.2 Billion
- China at $122 Billion
- Japan at $65.1
According to the U.S Department of Commerce, California exports had amounted to more than $168 billion in 2013 from $161.9 billion in 2012, a significant increase. Among all the states of the U.S, California maintained its position as the top exporting state of the country with major destinations being:
- Mexico at $23.9 Billion
- Canada at $18.8 Billion
- Asia-Pacific Region at $70 Billion
- Japan at $12.7 Billion
- Greater China at $7.8 Billion
- European Union at $28.2 Billion
California’s Major Exports to Mexico
Mexico continues to be California’s number-one export market. 14.2% of California’s exports are to Mexico, making it an important pillar for California’s economic strength. The goods exported to Mexico are:
- Computer and Electronic Products
- Transportation equipment
- Petroleum and Coal Products
With the Mayor of Los Angeles having visited Mexico, the trade ties between the two states will surely improve. This will help further boost the economy of the state of California.