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Ag equipment exports on rise
By DOUG SCHMITZ
Iowa Correspondent

MILWAUKEE, Wis. — U.S. exports of ag equipment exponentially grew in 2011, ending the first half of the year with a 15 percent gain totaling $5.6 billion, compared to January-June 2010, reported the Assoc. of Equipment Manufacturers.
“Exports continue to provide a substantial boost to manufacturers’ overall business as producers around the world seek enhanced productivity to meet global food needs,” said Charlie O’Brien, AEM vice president and ag sector leader.
As the nation’s largest off-road equipment manufacturing trade group, the AEM consolidates data from the U.S. Department of Commerce with other sources into global trend reports for its members - about 850 U.S. companies. 
In 2010, U.S. exports of ag-related machinery by mid-year totaled more than $8.95 billion, a gain of more than 12 percent compared to 2009.
The AEM said the top 10 U.S. export destinations during the first half of 2011 were: Canada – $1.8 billion, up 4 percent; Australia – $423 million, up 21 percent; Mexico – $395 million, up 1 percent; Germany – $260 million, up 20 percent; Brazil – $242 million, up 82 percent; France – $185 million, up 7 percent; China – $179 million, down 3 percent; Ukraine – $159 million, up 111 percent; United Kingdom – $145 million, down 4 percent; and Russia – $124 million, up 13 percent.
The AEM stated in its mid-year report South America took delivery of $579 million worth of U.S.-made agricultural equipment, an increase of 56 percent, and Central America increased its purchases 9 percent to total $506 million. In addition, Asia’s export purchases gained 13 percent to $483 million, and exports to Australia/Oceania grew 20 percent, representing $452 million worth of farm-related equipment. The report also said exports to Europe gained 19 percent to $1.6 billion, exports to Canada increased 4 percent and totaled $1.8 billion and U.S. exports to Africa grew 13 percent, for a total $131 million.

“Export-friendly policies such as free trade agreements (FTAs) help American manufacturers and farmers stay in business, which translates into more jobs for U.S. workers,” O’Brien said. “That’s a major tenet of our ‘I Make America’ campaign and its spotlight on the importance of manufacturing to U.S. prosperity.”

That’s why AEM President Dennis Slater said the growing trade deficit underscores the need to pass pending FTAs. “Amid the growing ‘bad news’ about the U.S. and world economies is the latest government data showing a growing trade deficit, the largest since October 2008, and exports declining for a second consecutive month,” he said.

Last year, the AEM supported the federal government’s renewed emphasis on exports, with the Milwaukee-based trade group advocating for immediate passage of the pending FTAs with Panama, Colombia and South Korea.

“Failure to enact these FTAs has put America’s manufacturers and farmers at a competitive disadvantage in the global economy,” Slater said. “Export-friendly policies such as FTAs are proven ways to generate U.S. economic growth and create and maintain jobs for American workers, for a sustainable recovery. While our leaders stall, countries around the world are negotiating dozens of FTAs to boost trade with other non-U.S. countries.”
9/15/2011