At the national level, much attention has been focused on the trade deficit—the U.S. imports more goods than it exports. In Oregon, we export more goods than we import, making us among only 12 states that have a trade surplus. Much of this growth is driven by Oregon’s high-tech, manufacturing and agriculture sectors.

In a time when other states are seeing a decline, Oregon’s manufacturing industry continues to thrive, making everything from knives and recreational vehicles, to industrial machinery and commercial transportation equipment.

From blueberries, cherries, and hazelnuts, to wheat, potatoes, grasses and hay, Oregon’s agricultural sector is feeding the world. We trade 80% of our agricultural products outside of Oregon and 40% internationally.

Agriculture is the state’s fastest growing industry by value, and is driven by expanding demand for Oregon products in Asian and Canadian markets.

Computer and electronics manufacturing comprise 43% of the total export value in 2017. See Figure 5. This sector is comprised of two major subsectors: semiconductors and precision instruments. Semiconductors represent 31% of the value of all goods exported from Oregon, and include companies like Intel and key supply-chain companies such as Lam Research. Precision instruments represent 6.5% of the value and include companies such as A-dec Inc.

In addition to these goods, 26% of total Oregon exports ($7.6 billion) were in services. This category includes intellectual property licenses, consulting services provided by Oregon firms abroad (financial, engineering, marketing, etc.), management services for companies that have global operations, and more.

The second largest sector is information and technologies royalties, comprising 9% of the total export value in 2017. The largest subsector in this category includes computer and electronic royalties, which are primarily licenses and intellectual property, accounting for 5.9% of export value and include companies such as Puppet and Urban Airship.

Educational and medical services is the second fastest growing category and is largely driven by foreign students studying at Oregon universities and paying out-of-state tuition. See Figure 6.

While much attention has been focused on exports, intermediate imports, which are raw materials or components used for production, are also incredibly important. Nearly 75% of Oregon imports from Canada are estimated to be intermediate goods, along with nearly 40% of imports from Mexico. These basic materials are imported and used as supply-chain inputs for products that are value-added and finished here. For example, insulated wires from Mexico are used in manufacturing equipment designed and created in Oregon. Fertilizers imported from Canada are used to produce Oregon-grown crop commodities for sale abroad. See Figure 7.

Oregon trades with nearly 150 countries. Top trading partners include China, Canada, Japan, South Korea, Vietnam and Malaysia. See Figure 8. Since 2010, the value of goods exported from Oregon has increased for nine out of 10 of our top trading partners. Our geographic location has facilitated such deep commercial ties within Asian markets – especially around the high-tech industry – that, according to the Oregon Office of Economic Analysis, the only time in recent decades that Oregon has grown slower than the U.S. was after the Asian financial crisis in the late 1990s.

Vietnam is an increasingly important market for Oregon exports and to our commercial supply chains. With Columbia Sportswear, Nike, and Intel all having significant investments in Vietnam, growing academic and cultural ties, such as the Vietnam-Oregon Initiative, and an expanding educated middle class fueling demand for consumer goods (cereals, fruit and vegetables, footwear, etc.), it’s no wonder Oregon exports to the country have grown by 432% since 2010. See Figure 9.

The only decline in the top trading partners is Malaysia, which took a sharp drop, down 52% since 2010. Traditionally, Malaysia has served as a low labor cost trade partner for the final assembly, testing, and packaging of completed semiconductors, representing less than 10% of the value of the final product. These completed semiconductors are most commonly then imported back into the U.S. for integration into final computing products or for sales elsewhere. The decrease in export value to Malaysia from Oregon mirrors trends seen at the national level, and likely is driven by changes in the production process for semiconductors rather than a large shift in final goods traded with Malaysia.

Oregon exports to Korea and Mexico have grown 58% and 54%, respectively, since 2010. Both have free trade agreements (FTAs) with the United States. Trade related activity with Canada and Mexico – partners in the North American Free Trade Agreement (NAFTA) and potentially the U.S.-Mexico-Canada Agreement (USMCA) – supported 154,000 Oregon jobs in 2017. Trade with China supported 83,000 jobs, and trade activity with the European Union accounted for 72,000 jobs in 2017. See Figure 10.

All of our trading relationships directly support Oregon jobs. Policies such as FTAs provide the structure and predictability needed for businesses to forge access in new international markets. Generally, when the U.S. enters into trade agreements, Oregon exports to those markets are expected to grow.