U.S FTA Snapshot in 2024
Donald Trump’s presidency has fomented a stir across the policy spectrum, but nowhere has the impact been more pronounced than in the realm of international trade. At the heart of this disruption was America’s persistent trade deficit — a long-standing concern that drives tariffs, renegotiated agreements, and a wave of policy reforms. Yet behind the political noise, the data on U.S. Free Trade Agreements (FTAs) tells a quieter, but more revealing, story.
The U.S. currently maintains FTAs with 12 countries and 2 regional blocs — pacts designed to encourage open markets, reduce tariffs, and promote balanced trade. Yet the pattern that emerges in 2024 defies these expectations. The country’s largest FTA partners are often the very ones deepening its trade imbalance.
Key Takeaways:
- Big Deficits with Big Partners – Trade with Mexico ($839.9B) and Canada ($762.1B) towers over all other FTA partners, but so do the deficits: -$171.9B and -$63.3B respectively. South Korea also registers a significant -$66B imbalance.
- Smaller Partners, Slim Surpluses – The U.S. enjoys trade surpluses with countries like Australia (+$17.9B), Panama (+$10.15B), and the Dominican Republic (+$5.6B), though none come close to offsetting the losses from its largest FTA partners.
- Mixed Fortunes in Central and Latin America – Several Central and South American FTA partners, including Chile, Peru, and El Salvador, show modest surpluses. Others, like Costa Rica (-$1.9B) and Nicaragua (-$1.7B), tip into deficit territory.
- The Middle East and North Africa: Quiet Positives – Countries like Jordan, Morocco, Bahrain, and Oman post small but positive trade balances – though with low overall trade volumes (mostly under $5B each).
- A Pattern That Persists – Whether through tariffs or new negotiations, the U.S. has tried to address its trade imbalances. But the numbers suggest a stubborn truth: free trade may open markets, but it doesn’t guarantee balanced trade. The largest partners often yield the deepest deficits — a structural challenge that politics alone may not fix.
Trade Size: Total value of goods traded — exports plus imports.
Trade Balance: The difference between exports and imports.
Free Trade Agreements (FTA): Deals that lower or eliminate trade barriers between the U.S. and partner countries
Note: The U.S. has 14 active free trade agreements covering 20 countries — 12 individual nations and two regional blocs: CAFTA-DR and USMCA
Data Source and Methodology:
The chart visualises total goods trade (exports + imports) in 2024 between the U.S. and its FTA partners. Trade balance is calculated as exports minus imports, shown in USD billions.
Source: Office of the United States Trade Representative (USTR)
Link: https://ustr.gov/trade-agreements/free-trade-agreements