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I personally choose the trade in from Mexico to the US. The product that I choose is sugar, Mexico is the sixth-largest producer of sugar in the world, producing about 6.5 million tons annually, of which 1.1 million tons, worth 651.9 million dollars, were exported to the United States in 2019. In contrast, our northern neighbor, who ranks as the third-largest consumer of sugar, has a deficit of 3.3 million tons and must rely on imports, including Mexican-origin products, to meet its domestic needs. His demand is estimated to be 11.2 million tons, but his production is only 7.9 million tons. The issue of sugar exports to the United States first came up after the TLCAN was put into effect in 1994. Since then, the United States has imported an average of 1.3 million tons of sugar annually, while Mexico has sent 90% of its exports to the American market because it receives better prices there than it does elsewhere. Despite what was stated earlier, there were disagreements between the two countries at the time regarding the harm done to the U.S. national sugar industry. The American Sugar Council (ASC), which represents the U.S. sugar industry, alleged that Mexican sugar was sold below its true value on the U.S. market, which qualified as unfair to the country's producers because they were those who were represented by those firms.

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For my research, I decided to analyze the trade between the United States and the European Union. The US and The European Union have an agreement for minerals and metals. This is a very good trade for the United States due the fact of the length of the European Union and all the countries that are part of it. The US will be increasing its revenue and creating contacts with other countries to expand its business. The trade can be free and has a share of 13%. I also compared it with other trades like the one they have with the United Kingdom which is also duty-free in which the share is 23% I believe that even though this one has a better share the one with the European Union in a long term might be better. This trade is also good because metal and irons are necessities for every industry in every country and in Europe with countries like Germany with A high production of cars the materials will be needed. The most important thing about trade is that is profitable.

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Using the two websites provided this week, I decided to focus on the country of Ukraine. I focused my trade products on clothing. The share in percentage for clothing trade for Ukraine is 1.3%. The duty free percentage is 0.1%. Between the United States and Ukraine, there was almost 1.1 million shared in bilateral imports.  The profit margin sits at 0.5%. These statistics show that clothing is not a bad trade opportunity between Ukraine and the United States, but it definitely could be better. This does not come as a major surprise though as the war between Ukraine and Russia is causing a lot of other countries to slow their trade with Ukraine as a way to stay out of the war in any way possible. I could see these numbers all rising once the war is settled in some way. It is absolutely important for any company, or country, to meet their break even point (at the bare minimum). This is how a company stays in business and for trade, this is how trade would continue between countries. Ukraine is trading substantially more with the European Union when it comes to clothing, as they shared almost 10.2 million bilaterally in imports. This is a much more prosperous trade union than with the United States, then again the European Union is much closer and therefore probably much easier to trade with than the US.

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Using the two websites, I chose the United Kingdom to look at. I chose my product as coffee and tea. I thought this would be a good product to import as there is a 0.8% share and a 23% duty free. I saw that their tariff lines and import values in percent would be about 11% for the agricultural imports. I found that the USA was the second major market for the United Kingdom, with the European Union as their first major market. From reading the article IV of the United Kingdom I have learnt that due to their rapid vaccination campaign they have been able to reopen their international markets fairly fast after the covid pandemic. It is important for the country to break even from the trades as there would be no point trading if there is going to be a loss of money. The only exception I could see it being okay to not break even would be if the product was an absolute necessity which I would say coffee, and tea is not.

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For my research I decided to analyze the trade between the United States and the European Union for the goods of minerals and metals. The main reason I chose this line of products because it can be beneficial for the US to gain on trades with the EU by exporting them. The duty free has a number of 63.9% and a share of 13.7% when it comes to imports. This would allow a great trade with them and since the goods are primary necessities for industries there is always a high demand. Breaking even is crucial for a country because it allows them to have a point of focus and understand which ones are the best industries that bring in income for the country. This would allow to break even and have a good relationship internationally. There are many different goods that can be used to have a good trade so the one I chose is not necessarily the best, but it is a valid option to break even and gain from exports.

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Discuss how The United States can break even in International Trade

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Discuss how The United States can break even in International Trade

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SEAN GREINER-

When I was using the two websites provided to “Discuss how the United States can break even in International Trade” I decided to choose the product group of Electrical Machinery. I chose this product because of large the consumer market is for such equipment across the globe and the vast amounts of money being transferred around the world as well. Electrical Machinery is an ever-growing market with no signs of slowing down so the consistency in this market makes me curious as well I also chose this product group because I plan on going into electrical engineering after I get my degree here, so researching this would give me more knowledge in my future career. When determining whether the United States had tariffs on Electrical machinery it was clear they do, Electrical Machinery in the United States under the “Final Bound duties” section on the “World Trade organizational statistics” website has an Average 1.4, Duty-free in % of 56.7, Max of 15 binding in a % of 100. The MFN Duties has an AVG of 1.4, Duty-free in % of 56.9 and a max of 15. Imports listed as share in % of 14.4 and Duty free in % listed as 73.5. So why is it good to determine if the United States has tariffs when discussing the “Break-even Point” in international trade? I define Break even trade an amount of money that in needed for an asset to be sold to cover the costs of acquiring and producing that product this is important to know to earn profits during trades. Break-even is the point when a total cost and total revenue are equal and once you can determine how much your product costs to produce and tariff costs then you are able to setup effective and profitable trade margins for your products being traded internationally. Break even is also useful in international trade for determining securities for price in a product to make a trade profitable after costs, fees and taxes have all been taken in consideration.

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After visiting the two websites and the international trade and balance of payments on my book, I decided to choose Israel as a country where to export goods in the United States. The good I chose is the non-agricultural products.
The reason why I chose Israel it has a good and solid economy that kept credit flowing and prevented undue tightening of financial conditions in the last years. In addition the economy is planning to grow after year 2022 and it will be supported by strong private consumption, investment, and net exports! What I liked most is that United States has been the major trading partner of Israel. It exported a value of $ 14,260 to United States in 2020 with a MFN average of 3.6 for simple and 1.0 for weighted. Also there was % 100 of duty-free imports and this is very important for the economies of both countries.
Tariffs were approximately good in years 2020 and 2021 meaning that they were not so high. For example, the highest tariff line for non-agricultural products was of 11.2 % in year 2021.
My conclusion is that Israel is a good trading partner of United States, and that both countries will keep on trading their best products, and they will benefit from most of the economic advantages that we can find in Israel.

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After reviewing the two websites provided, I chose the product of electrical machinery and the country of Argentina. When looking at the Article IV consultation, it explains that the per-capita for income has been declining for the past decade and the inflation rate is currently high in Argentina. Overall, the Article IV expresses that things can improve within Argentina but that it will take investment, consistency, and time. With Argentina’s current economic situation in mind, it appears that Argentina would be better for exporting electrical machinery to other countries rather than importing it. The United States is one of Argentina’s largest importers for non-agricultural products. In 2020, Argentina received $2.5 billion from non-agricultural products that were imported into the US. The US, however, does have a tariff on electrical machinery where the final bound duties have an average of 1.4, duty-free of 56.7%, a max of 15, and a binding of 100%. The MFN applied duties have an average of 1.4, a duty-free of 56.9%, and a max of 15. When discussing the US’s imports, their share is 14.4% and their duty-free is 73.5%. This is important for a break-even point because it can help companies determine what price level they need to have when venturing into foreign markets. In addition to price level, it can also help companies determine the yield or profits they may experience. This helps because knowing these aspects about a specific trade can help companies to lose little to no money and ensure a successful integration into a foreign market.

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After exploring both websites from the section in the text, I was able to choose a country, type of good to trade in and determine if the United States has tariffs on the goods. The country I chose to conduct my research on is Australia. With choosing this country I was able to determine that export would be the best option. Therefore,  my type of good to trade in is petroleum. The reason I chose this as my type of goods to trade is because of the value it brings as an export, specifically bringing in millions of dollars and having one of the highest percentages of total exports. According to the first website provided in the text there are tariffs on the petroleum goods. Specific statistic's provided from the website are regarding Final bound duties and MFN applied duties. Final bound duties have an average of zero, duty free in percentage of 100, a max of zero and a binding in of a 100 percent. In addition to this the MFN applied duties had an average of zero, a duty free in percentage of 100 and a zero for max percentage. This is important  for a "break-even point" in International Trade because this provides you the pricing strategy and can help you understand how many products you will need to sell in any new market you enter. From use of the break-even point in international trade it will enable the country to have an understanding of the level of production needed and price you need in return to result in making a profit.