Canadian Oil Decline Leads Minnesota Exports Lower

ST. PAUL (WJON News) - Minnesota businesses saw their exports drop in value over the last few months, according to new data released by the Department of Employment and Economic Development.

Minnesota’s exports of agricultural, mining, and manufactured products fell 17% to $6.1 billion over the third quarter of 2022, due in part to a decline in oil exports to Canada.

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In total, the state’s exports fell by $1.3 billion between the third quarter of 2022 and 2023, with more than $1.1 billion of that decline tied to a decline in exports of mineral fuel and oil exports to Canada. Canada remains the state’s largest trading partner and the dominant market for mineral fuel and oil despite importing 98% less oil compared to the 2022 third-quarter activity.

DEED Commissioner Matt Varilek said the oil trade is a highly volatile business.

Export trends are often driven by macroeconomic factors – and that’s especially true for mineral fuel and oil. Despite this quarter’s overall decline in exports, we’re pleased to see growth in key sectors of Minnesota’s economy. We will continue supporting Minnesota’s private sector and our trading partners abroad to grow global sales and drive economic growth at home.

Meanwhile, the exports of vehicles, iron ore, aircraft, and medical products saw increased activity.

While exports to Canada saw a decrease, Minnesota companies saw increased business to Mexico, Germany, Chile, and Australia.