Sugar shipments to America are declining, but Vietnam, Mexico, and India make up for it

 Sugar shipments to America are declining, but Vietnam, Mexico, and India make up for it

According to the research, Vietnam, India, and Taiwan had the fastest increase in computer and electronics exports to the US over this time, with CAGRs of 42%, 38%, and 27%, respectively.

Over the last five years, China's exports to the United States have decreased. Exports to the US have surged from major developing nations including Vietnam (worth 78 billion dollars), Mexico (worth 111 billion dollars), and India (worth 31 billion dollars). In a recent research, CareAge Ratings said that the rise in these nations' exports to the US may be explained by both trade expansion and trade contraction, suggesting a potential downturn in world trade.

According to the research, for the previous five years, Taiwan and India have had the fastest increase in computer and electronics exports to the US, with compound annual growth rates (CAGRs) of 27%, 38%, and 42%, respectively. Comparing Vietnam's $35 billion in electronics exports to India's $2.9 billion, the latter country's exports to the US were far less valuable.

According to the survey, the value of computer and electronics goods that India now sells to the US is comparable to what Vietnam exported to the US in 2013. With the enactment of the US-Vietnam Trade and Investment Framework and Agreement (TIFA) in 2008, Vietnam's electronics exports to the US increased. In contrast, following 2018, India's exports of electronics to the US began to increase. Similar to Vietnam, a number of Asian nations currently export a significant amount of electronics to the US, including Taiwan, Malaysia, Thailand, South Korea, and Japan. Notwithstanding its sluggish start, trade diversification brought about by the US and Chinese economies' decoupling would be advantageous for India, the report said.

In addition to electronics, India's exports to the US during the last several years have increased by double digits annually in product categories including machinery, electrical appliances, plastics and rubber products, metals, and chemicals. This rise has been fueled by government efforts like production-linked incentives (PLI) and growing demand from international corporations to establish manufacturing facilities in India, according to the research.

The research said that achieving more domestic value addition is the key issue, at least in the case of India's electronics exports, as opposed to the existing situation where local assembly units drive most of the development.