Texas represented nearly 20% of all U.S. exports in the January-February period while California dipped to 11%.
Robust demand for Texas oil and gas in the first two months of 2019 pushed the state's export activity into high gear: triple the national rate and contrasting with a slight decline by California.
"Two-thirds of the U.S. increase in exports over these last two months have come from Texas," said Michael Cox, a former chief economist for the Federal Reserve Bank of Dallas and an executive in residence at Southern Methodist University."And 99.4% of that is oil and gas." Texas' agriculture exports to Mexico were up 9% in the first two months of 2019, but there was weakness from sales of meat and dairy products. In response to President Donald Trump's steel and aluminum import duties, Mexico and Canada last year imposed tit-for-tat tariffs on a variety of U.S. food and agricultural products, including pork and some dairy items.
U.S.-China trade talks are scheduled to resume next week in Beijing led by U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. There were signs of progress in the previous round of bilateral negotiations but hurdles remain, including forced technology transfer and an enforcement mechanism of any final agreement.
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