Date: February 15, 2008

Author: Jane Bussey

Source: Miami Herald

International trade through seaports and airports in South Florida grew by almost 10 percent in 2007, hitting a new record of just under $80 billion.

The South Florida trade figures were released Thursday, the same day as the U.S. Commerce Department issued its final figures for 2007. Total U.S. exports were $1.62 trillion, while imports reached $2.33 trillion last year.

WorldCity, a local trade publication, analyzed the national statistics to come up with trade numbers that cover all airports and seaports from Key West to Fort Pierce, which comprise the South Florida Customs District.

Total South Florida trade of $79.1 billion showed the widening difference between the pace of exports and imports through the local Customs District. Except for China, the top five trade partners are all located in Latin America or the Caribbean.

Exports shot up by 14.8 percent, from $39.6 billion in 2006 to $45.5 billion in 2007, a sign of continuing strong demand in Latin American countries for international goods. The region has experienced its best economic performance in several decades in the last two years.

Imports through South Florida grew at a more modest pace of 3.6 percent, rising from $32.5 billion in 2006 to $33.6 billion in 2007.

Key trading partners such as the Dominican Republic and Guatemala had declining exports through the South Florida Customs District, in part, because of slowing apparel assembly in the region.

WorldCity President and Chief Executive Ken Roberts said Miami was seeing some regional trade siphoned off by competing U.S. trade hubs such as California. But while the United States as a whole continues to have large trade deficits, which are a drag on the growth in gross domestic product, South Florida's trade numbers show a surplus.

''The surplus issue is kind of surprising,'' Roberts said. ``That Miami can continue to have that kind of surplus is kind of promising for Latin America.''

Florida's top five trading partners are Brazil, Venezuela, Colombia, the Dominican Republic and China. France is the only other non-Latin American country to rank in the top 10.

South Florida functions as a major trading hub for the region with local warehouses storing many international and U.S. goods that are shipped out to Latin America and the Caribbean.

Over the past few years, Chinese imports also have gained ground in South Florida ports. Imports from China are more than tens times larger that South Florida's exports to China, reflecting national trends.

The overall U.S. trade deficit improved last year, declining 6.8 percent to $711.6 billion. But the trade deficit with China rose 10 percent to $256.3 billion.

Charles W. McMillion, president and chief economist of MBG Information Services, noted that ``2007 is the first year since 1995 that the real U.S. trade deficit -- and its drag on GDP growth -- has improved.''

The United States has been experiencing rising trade deficits -- even though the U.S. economy has grown more slowly than the world economy for the past eight years and the U.S. dollar has declined in value by 10.5 percent in the past two years, McMillion said.

A declining dollar generally makes U.S. products more competitive worldwide.