US reported total trade of $47.8bn with the GCC for the second quarter of 2008, or 60.1% higher than the value for the same period last year. By country, Saudi Arabia was the largest partner, with total trade valued at $32.2bn or 67.4% of the total trade with GCC, while trade with UAE was valued at $7.5bn or 15.7%. Trade with the other GCC-member countries was valued at $8bn, as trade with Kuwait was valued at $5bn, trade with Qatar reaching $1.2bn; Oman, $1.1bn; and Bahrain, $627m.
US import of petroleum and petroleum products from Saudi Arabia, valued at $26.4bn pushed total imports from the country to a total of $26.8bn, or 83.3% of total imports from GCC. Similarly, 95% of US imports from Kuwait were petroleum and petroleum products. On the other hand, imports of the same products from UAE constituted only 15%of US imports from UAE. Imports of Aluminum and of Pearls, precious and semi-precious stones/metals contributed 17.7% and 13%, respectively.
UAE was the largest export market of US in the GCC, absorbing 44% of US exports to the region. Major exports to UAE were transport equipment ($1.8bn) consisting predominantly of Aircraft and associated equipment, and Road vehicles - including air cushion vehicles - (valued at $888m). On the other hand, major exports to Saudi Arabia were Road vehicles ($1.1bn) and Power generating machinery and equipment, valued at $394m. The former consisted primarily of motor cars. Although at much lower values, these products likewise dominated US exports to the other GCC countries.
Large US imports of petroleum and petroleum products from Saudi Arabia and Kuwait resulted in trade deficits for US of $21.5bn and $2.6bn, respectively. On the other hand, US realized a surplus from Bahrain, Oman, Qatar, and UAE of $158m, $325m, $803m, and $6.2bn, respectively.
Saudi Arabia remains as US largest import market, but export pattern changes:
Saudi Arabia is US's biggest supplier of petroleum products in the GCC. With imports from the GCC dominated by the said products, Saudi Arabia continues to dictate the level and pattern of US imports from the GCC. This is clearly seen from the value of yearly imports from the GCC from 1992 to 2007. On the other hand, imports from UAE and the rest of the GCC remained relatively small, though slightly increasing in the recent years.
In the 1990's Saudi Arabia dominated export trade between US and GCC countries, while exports to UAE remained stable and almost equal to the combined exports to remaining GCC countries. Changes in the pattern started in the beginning of 2000 when exports of aircraft and associated equipment and parts to UAE accelerated. Thereafter, exports to Saudi Arabia started to decline, while exports to UAE and the other GCC countries grew. By 2005, UAE became the largest export market to US in the region.
Despite surges in US export to UAE in prior year, it was only in 2005 that annual value surged to an annual growth of more than 100%. During the year, US exports of transport equipment to the UAE reached $4.4bn, or 52% of the total value of the US exports to UAE.
In 1996, US imports of garments from UAE were valued at $206m, or 42% of the total. A decline had been noted in the succeeding year, with the value dropping $122m in 2007, representing only 9% of the total imports of US from UAE. On the other hand, US imports of nonferrous metals increased from barely $3m in 1996 to $318m in 2007, leading to corresponding growth in share of only 1% to 24%. US imports of petroleum and petroleum products likewise increased from only $38m to $287m over the same period.
Although value of trade with UAE represents but a drop in the bucket with respect to US total trade with the rest of the world, annual summary indicators of level and composition of trade for 2000 to 2007 show that both exports and imports of US to and from UAE are increasing.
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