Illinois Trade and Foreign Direct Investment

Illinois is one of the most global states around the nation. It is ranked the 5^th largest exporting state and it ranks number one in the Midwest as a destination for foreign direct investment (FDI) in 2006. Rapidly increasing flows of goods, services, information and people across nations have been observed. Following are data indicating exports, imports and FDI in Illinois.

Trade:

Exporting:

• Illinois exports totaled $42 billion in 2006, an increase of 17% from 2005
• Illinois is the 5th largest exporting state in the U.S.
• About 450,000 jobs are supported by exports

North America Free Trade Agreement (NAFTA):

• NAFTA has great influence on Illinois export and jobs
• Canada and Mexico are Illinois' first and second largest export markets, accounting for 37% of Illinois total exports.
• Illinois exports $15 billion to NAFTA countries, an 88% increase since NAFTA's implementation in 1994
• For Agriculture, Canada and Mexico alone account for 55% of the increase in U.S. agricultural exports to the world since 1993.
• It translates into 241,000 Illinois jobs (1/4 Illinois jobs)

Sources: Department of Commerce & Economic Opportunity, 2007; NAFTA trade facts www.ustr.gov; MISER Origin of Movement Series

Top 10 Countries for Illinois' Exports (billions):

Country 2006 2005 2004

Canada$12.33 $10.86 $ 9.23

Mexico $ 3.41 $ 2.88 $ 2.41

UK $ 2.28 $ 1.85 $ 1.85

Japan $ 2.11 $ 2.00 $ 1.85

Australia $ 2.03 $ 1.55 $ 1.32

Germany $ 2.03 $ 1.78 $ 1.42

China$ 1.52 $ 1.19 $ 0.92

Belgium $ 1.51 $ 1.31 $ 0.93

Netherlands $ 1.33 $ 1.23 $ 1.03

Brazil$ 1.29 $ 1.10 $ 0.81

Total $42.08 $35.86 $30.21

Sources: Department of Commerce & Economic Opportunity, 2007

Top 5 Industries for Illinois Exports (billions)

Industry 2006 2005 2004

Machinery except electrical $11.79 $10.43 $ 8.53

Computer, Electronic Products,

& Equipment $ 8.30 $ 6.99 $ 6.00

Chemicals $ 5.83 $ 5.63 $ 4.62

Transportation Equipment $ 4.71 $ 3.36 $ 3.15

Agriculture, Food, & Kindred $ 2.65 $ 2.05 $ 1.66

Products

Total $42.08 $35.86 $30.21

Sources: Department of Commerce & Economic Opportunity, 2007

Top 10 Imports entering Chicago by Country (billions)

Country 2005 2004

China $18.70 $14.94

Japan $14.24 $14.13

Canada $ 6.81 $ 5.37

Germany $ 6.61 $ 5.48

UK $ 3.16 $ 2.90

Korea $ 3.07 $ 2.52

Malaysia $ 3.02 $ 2.70

Italy $ 2.94 $ 2.18

France $ 2.89 $ 2.86

Taiwan $ 2.52 $ 2.60

Source: World Trade Center

For more information about imports pertaining to products and/or countries, visit U.S. Census Bureau's Foreign Trade Statistics site at http://www.census.gov/foreign-trade/statistics/country/index.html.

Foreign Direct Investment:

Foreign Direct Investment (FDI) is a major contributor to the economic vitality of the state. Illinois ranks number one in the Midwest as a destination for foreign investment. Currently, 1,400 foreign firms with 4,700 locations, employing more than 200,000 Illinois residents, thrive here.

Sources: Department of Commerce and Economic Opportunity, 2006; and Dunn & Bradstreet

Leading business presence in the Chicago area, by country:

Country Parent Companies Locations

Japan 390 850

U.K. 231 910

Canada 191 620

Germany 165 420

France 97 371

Switzerland 92 248

Netherlands 69 490

Italy 49 173

Source: World Business Chicago 2005

Leading foreign employers:

Country Company Name

Netherlands ABN-AMRO N.V.

Canada Bank of Montreal (Harris Bank)

Switzerland Zurich Group

U.K. BP

Germany Siemens AG

France Compagnie de Saint-Gobain

Japan Matsushita Electrical

Italy Fiat S.p.A. (Case Corp.)

Source: World Business Chicago 2005