Minnesota House comes to a power sharing agreement plus the impact of trade on our state’s economy

By Doug Loon
President and CEO
Minnesota Chamber of Commerce

We are closely watching significant developments in St. Paul this week, as a new power-sharing agreement is taking shape. This agreement should allow the House of Representatives to fully return to work in the near future and begin making progress on key issues for the state—particularly in this critical budget year. Beyond the budget, we are eager to see movement on other priorities we’ve discussed in previous podcasts. The business community, with the Minnesota Chamber leading the way, is actively engaged at the Capitol to ensure businesses are heard, protected, and positioned for a more competitive and prosperous future.

Also making headlines are the new administration’s executive orders, particularly regarding trade policy. The Chamber’s role in this area is to keep the business community informed about the importance of trade and global economic engagement. International trade is a vital and growing component of Minnesota’s economic success, especially in export markets across the globe and in North America.

Today, we want to highlight the role of Canada and Mexico—Minnesota’s two largest trading partners by a substantial margin. Together, these countries represent nearly half of the state’s total global trade. In 2023, our Grow Minnesota! team compiled data showing that Minnesota exported nearly $7.1 billion in goods to Canada and over $3.3 billion to Mexico, totaling $10.4 billion in trade for the year.

Trade with Canada and Mexico is a growing area of importance. Since 2019, Minnesota exports to Canada have surged by 49% and by 37% to Mexico, largely due to declining market growth in China. North American trade plays a crucial role in Minnesota’s supply chains, supporting key industries such as food and agriculture, mining, energy, medical goods, transportation equipment and machinery.

These trade relationships go beyond simply transporting finished goods; many Minnesota-made products cross borders multiple times during production, reflecting the deep interdependency of our economies. This collaborative process allows Minnesota businesses to reach not only domestic markets but also consumers worldwide. As discussions on trade policy continue, it is essential to recognize the significance of these partnerships and ensure strong relationships with our neighbors in Canada and Mexico.

We appreciate you staying engaged with these legislative and economic developments. We also invite you to join us for Chamber Day at the Capitol on April 3 in St. Paul, where we will continue advocating for policies that enhance Minnesota’s economic competitiveness. In the meantime, stay tuned for updates from the Chamber on the state of our economy and how we can work together to create a stronger future for Minnesota’s private sector.

I look forward to catching up with you and discussing more of these topics on next week’s episode of the Minnesota Business Podcast!