Even Exporting Is Bigger in Texas

Since California is frequently identified as the world’s Fourth Largest Economy, shouldn’t it follow that the Golden State is also America’s foremost exporting state?

In a word, no. Statistics compiled by the U.S. Commerce Department show that Texas overtook California as the nation’s leading exporting state long ago, in 2002 to be precise. The Lone Star State’s exporting edge over the Golden State had steadily increased over the years to the point where, last year, the value of merchandise exports from Texas exceeded those from California by a huge 139%, $450.273 billion compared to $188.404 billion. Even New York State exported more than did California by a margin of $59.961 billion to $47.038 billion in the first three months of this year.

But, the true value of exports actually produced in Texas has long been in dispute. Specifically, the great majority of America’s merchandise exports to Mexico are funneled through Texas since Mexico’s major population centers of industry are located south of the Texas-Mexico border. The methodology for collecting U.S. export statistics allows the state from which goods are shipped abroad to be substituted for the actual state-of-origin. In short, a very generous portion of America’s exports to Mexico are erringly attributed to Texas.

Still, for the sake of perspective if not accuracy, Exhibit A tells the broad story as related by the “state-of-origin” statistics published by the Foreign Trade Division of the U.S. Census Bureau.