ST. PAUL - Minnesota manufacturers exported $3.7 billion in products in the third quarter of 2009, according to figures released today by the Minnesota Department of Employment and Economic Development (DEED). State exports fell by 17 percent from the same quarter a year ago, while U.S. exports fell 21 percent during that period.

Minnesota had the fifth-smallest export decline among the top 20 exporting states, and only two states - Utah and Wyoming - increased manufactured export sales during the third quarter.

"After a record year last year, Minnesota manufacturers have been challenged in 2009 by an economic slowdown that has disrupted business worldwide," said DEED Commissioner Dan McElroy. "We are encouraged that our export markets are already showing signs of recovery in some parts of the world, particularly in Asia."

Exports increased to three of the state's top 10 markets in the quarter, growing 3 percent in Japan to $195 million, 7 percent in Korea to $141 million and 7 percent in Australia to $112 million. China, the state's second-largest trade partner, remained unchanged from a year ago at $333 million.

Canada is Minnesota's largest trade partner, accounting for $988 million or about 27 percent of the state's manufactured exports in the third quarter. Exports to Canada were down about 24 percent from the same quarter a year ago.

Declines in the state's other top 10 export markets occurred in Ireland ($199 million, down 14 percent), Mexico ($177 million, down 17 percent), United Kingdom ($165 million, down 8 percent), Germany ($146 million, down 22 percent) and Belgium ($128 million, down 21 percent).

Minnesota's largest manufactured export is computers and electronics, which declined 19 percent from a year ago to $862 million.

The state's other top 10 export sectors were machinery ($584 million, down 21 percent), miscellaneous products including medical ($472 million, down 4 percent), transportation equipment ($423 million, down 21 percent), food products ($311 million, down 14 percent), chemicals ($209 million, down 20 percent), fabricated metals ($170 million, up 11 percent), paper ($167 million, up 16 percent), electrical equipment ($151 million, down 24 percent), and plastics and rubber ($109 million, down 7 percent).

Gov. Tim Pawlenty led a trade mission to Brazil and Chile, the state's top export markets in South America, earlier this month. Minnesota exported about $118 million in goods to Brazil and Chile during the third quarter of 2009.

"The trade mission to Brazil and Chile reinforced the fact that there are connections to be made between Minnesota exporters and global markets," said Tony Lorusso, director of the Minnesota Trade Office. "Opportunities will increase as the global economy recovers."

Brazil is ranked among Minnesota's top 20 manufactured export markets (17th) with an export value of $57 million in the third quarter of 2009. Chile is the state's 32nd-largest export market, purchasing almost $13 million in goods. Although overall exports to these countries fell sharply, a particular bright spot was sales of miscellaneous (mainly medical goods), which were up 63 percent (to $13 million) to Brazil.

A full report on Minnesota's manufactured exports in the third quarter can be found at www.PositivelyMinnesota.com.

DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and our services, visit us at www.PositivelyMinnesota.com. Follow us on Twitter at www.twitter.com/PositivelyMN.