Texas continues to reign supreme in global trade, marking over 20 consecutive years as the nation’s top exporter, fueled by burgeoning technology, chemical, and manufacturing sectors, alongside world-class ports and a strategic border with Mexico.
For more than two decades, Texas has solidified its reputation as the leading exporting state in the United States. This remarkable consistency underscores the state’s economic resilience and its strategic position in global commerce. Reports from the Texas Comptroller’s Office indicate that ports of entry in Texas collectively handled an astounding $1.1 trillion in international trade last year, representing a nearly 68% increase since 2020. This volume accounts for a significant 20% of all U.S. trade, a testament to Texas’ enduring economic strength.
The state’s reign as the top exporting state began in 2002 and has continued uninterrupted, reaching its 19th consecutive year in 2020 with $279 billion in export trade, and its 20th consecutive year in 2021 with over $375.3 billion. In both 2020 and 2021, Texas’ exports surpassed the combined totals of California and New York, demonstrating its commanding lead in the national export landscape, according to the U.S. Census Bureau.
The Pillars of Texas’ Export Success: Infrastructure and Policy
Texas’ sustained dominance in exports is not accidental; it is a direct result of a strategic combination of a favorable economic environment and world-class infrastructure. Governor Greg Abbott and Robert Allen, President and CEO of the Texas Economic Development Corporation, consistently highlight key factors:
- Pro-Business Climate: Characterized by low taxes and reasonable regulations, fostering an environment where businesses can thrive.
- Economic Diversity: A broad range of industries contributes to a stable and dynamic export portfolio.
- Massive Workforce: Home to the second-largest workforce in the nation, providing the human capital necessary for robust manufacturing and trade.
- Robust Infrastructure: An award-winning network of transportation and logistics assets.
This infrastructure includes an expansive coastline, a shared border with Mexico, numerous seaports, international bridges, railways, airports, and interstate highways. These logistical advantages provide unparalleled access to global trade routes via air, land, and sea. Foreign-Trade Zones (FTZs) also play a crucial role, with Texas hosting 31 of the nation’s 164 general-purpose FTZs. As far back as fiscal year 2008, FTZ facilities in Texas were shipping over $40 billion worth of exports, a value that had more than doubled since 2002, highlighting their long-term impact on the state’s trade volume.
A prime example of this integrated infrastructure is AllianceTexas, a 27,000-acre development in North Texas. It functions as a primary port of entry for the southwestern United States, connecting major ports like Los Angeles, Long Beach, and Houston through intermodal rail containers. An analysis by the Texas Comptroller’s Office noted that AllianceTexas accounted for $834.6 million in total evaluated trade last year, a nearly 551% increase from 2016. Its rail network alone is responsible for moving roughly half of Texas’ freight tonnage, making it an indispensable component of the state’s export engine, according to a report by the Texas Comptroller’s Office.
Diverse Goods Powering the Lone Star State’s Trade Machine
While often associated with energy, Texas‘ export portfolio is remarkably diverse. In 2024, its top non-energy exports by trade dollar value underscore this breadth:
- Computer and Electronic Product Manufacturing: $57.1 billion
- Chemical Manufacturing: $57.0 billion
- Transportation Equipment Manufacturing: $28.2 billion
- Machinery Manufacturing: $25.2 billion
- Electrical Equipment, Appliance, and Component Manufacturing: $12.6 billion
- Fabricated Metal Product Manufacturing: $9.2 billion
This diversity is further evidenced by Texas leading the nation in technology product exports for the ninth consecutive year, a sector that generated $44.8 billion in exports in 2020 alone. Beyond these, the state also heavily exports mineral fuels, which consistently rank among the largest export categories to many of its international partners.
Specific export commodities from logistics hubs like AllianceTexas further illustrate this variety. Last year, the top export commodities by value from AllianceTexas included machinery and mechanical appliances ($324.8 million), electric machinery and equipment ($276.6 million), and aircraft and spacecraft equipment ($116 million).
Global Connections: Texas’ Key Trading Partners and Commodities
Texas’ robust trade relationships span the globe, with several key partners driving significant export volumes. In 2021, the top five countries receiving the most goods from Texas were:
- Mexico: $123.1 billion (Largest exports: mineral fuel, oil; electric machinery; nuclear reactors, boilers, machinery parts)
- Canada: $29.0 billion (Largest exports: mineral fuel, oil; nuclear reactors, boilers, machinery parts; plastics)
- China: $21.6 billion (Largest exports: mineral fuel, oil; nuclear reactors, boilers, machinery parts; electric machinery)
- South Korea: $18.8 billion (Largest exports: mineral fuel, oil; nuclear reactors, boilers, machinery parts; electric machinery)
- Brazil: $14.5 billion (Largest exports: mineral fuel, oil; plastics; organic chemicals)
Mexico stands out as by far the largest trading partner, with trade through Texas’ international bridges with Mexico accounting for over $547.9 billion, more than 51.5% of Texas’ total trade value. Port Laredo, a critical gateway, continues to be the top port in the country, managing $339 billion in total trade last year, with exports alone reaching $128.26 billion, according to data from the Port of Laredo.
The state’s major airports, Dallas Fort Worth International Airport and George Bush Intercontinental Airport in Houston, facilitate 72.1% and 24.2%, respectively, of Texas’ airport and intermodal trade. Meanwhile, Port Houston leads the nation in exports, moving $129.9 billion in commodities, and ranks as the fifth-largest port of entry overall with $223.5 billion in total trade. It also stands as the fifth busiest container port in the U.S. for cargo capacity, handling 1.89 million twenty-foot equivalent units (TEUs) worth over $415 billion last year, as analyzed by Descartes Systems Group.
Texas’ Future in Global Trade: An Expanding Horizon
The consistent growth and diversification of Texas’ export economy solidify its position as a global trade leader. The state’s commitment to a pro-business environment, coupled with ongoing investment in its extensive infrastructure, creates a powerful magnet for corporations looking to relocate or expand. This remarkable track record, even amidst global economic challenges, provides reassurance to decision-makers and ensures that the “Made in Texas” brand remains a powerful and respected mark on the international stage.
