St. Paul – Minnesota exports of agricultural, mining and manufactured products were valued at $6.1 billion in the third quarter of 2023, a drop of 17% over the third quarter of 2022 following a sharp decline in mineral fuel and oil exports to Canada, according to data released by the Minnesota Department of Employment and Economic Development (DEED).

In total, Minnesota's quarterly exports fell by $1.3 billion between the third quarters of 2022 and 2023, with mineral fuel and oil exports alone contributing $1.1 billion of that decline. Canada – Minnesota's largest trading partner and the state's dominant market for mineral fuel and oil – imported 98% less oil (or $895 million less) from Minnesota last quarter than in the third quarter of 2022. Otherwise, exports of products other than mineral fuel and oil, combined, fell by 2% in the third quarter.

At the same time, exports increased for major products like vehicles (up 48%), iron ore (up 11%), aircraft (up 9%), and medical and optic products (up 4%).

U.S. exports fell by 6% in the third quarter as 30 states logged declines.

"Export trends are often driven by macroeconomic factors – and that's especially true for mineral fuel and oil," said DEED Commissioner Matt Varilek. "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."

The global mineral fuel and oil market is particularly volatile, with geopolitics heavily influencing sales. In 2022, mineral fuel and oil exports from U.S. and Minnesota were at record highs, driven in part by embargoes on Russian oil following its invasion of Ukraine. U.S. exports of these goods have softened as other oil producers and refiners have come online.

Exports to Mexico increased by 15% as Minnesota's second-largest trading partner imported more vehicles, aircraft, cereals and other products from Minnesota companies. Exports also increased to trading partners like Germany (up 6%), Ireland (up 19%), Chile (up 385%) and Australia (up 42%), which became Minnesota's seventh-largest trading market in this quarter.

Last month, Governor Tim Walz led Minnesota's first-ever trade mission to Australia, seeking to capitalize on growing trade with, and foreign investment from, Australia. The Minnesota Trade Office (MTO) organized the mission that included a 35-member delegation of leaders from four key Minnesota sectors – medical technology, clean technology, higher education and agriculture.

"Although third quarter exports were impacted by global volatility, we remain focused and encouraged by growth in several target markets," said MTO Executive Director Gabrielle Gerbaud. "Australia is a shining example. We look forward to further expanding export sales and attracting investment through the connections made on the state's recent trade mission."

The full third quarter 2023 report is available on DEED's website in the Export and Trade Statistics section.