19 December 2001

U.S. Trade Deficit Close to Level Before Terrorist Attacks

Washington -- The U.S. trade deficit in October returned to pre-September 11 levels, following the steep plunge related to the terrorist attacks, the U.S. Department of Commerce says.

In a December 19 press release, the department said the October deficit amounted to $29,433 million, compared to revised deficits of $19,019 million in September and $28,017 million in August.

Still, the October 2001 deficit fell well below that of October 2000, $34,025 million.

Accounting for the steep drop in the September deficit were large foreign insurance payments for the terrorist destruction in the United States and the sharp drop in international airline traffic.

The October 2001 deficit returned to the trend of lower deficits over most of the year reflecting decreases in U.S. exports and, even more, imports. Accounting for those decreases is lower demand in both the United States, in recession since March, and in U.S. trading partners.

Comprising the overall October deficit were a deficit in goods of $34,991 million and a surplus in services of $5,558 million.

Reflecting the surge in foreign insurance payments and plunge in airline travel, U.S. imports fell from $18,248 million in August to $4,666 million in September and then rose to $15,177 million in October.

In October the U.S. bilateral trade deficit with China reached a record $9,152 million, far ahead of the $6,957 million deficit with Japan. Other large deficits were reported with Canada, $3,793 million; Germany, $2,676 million; Mexico, $2,592 million; South Korea, $1,625 million; Taiwan, $1,513 million, and Italy, $1,191 million.

Following are some key figures:

U.S. GOODS AND SERVICES EXPORTS, IMPORTS AND TRADE BALANCE Millions of dollars, on a balance of payments basis, seasonally adjusted

Trade balance Exports Imports

Jan.-Dec. 1999 -261,838 957,353 1,219,191 Jan.-Dec. 2000 -375,739 1,065,702 1,441,441

Jan.-Oct. 2000 -309,471 885,987 1,195,458 Jan.-Oct. 2001 -292,205 849,158 1,141,363

October 2000 -34,025 90,412 124,437 October 2001 -29,433 77,319 106,752

U.S. GOODS EXPORTS, IMPORTS AND TRADE BALANCE Millions of dollars, on a balance of payments basis, seasonally adjusted

Trade balance Exports Imports

Jan.-Dec. 1999 -345,434 684,553 1,029,987 Jan.-Dec. 2000 -452,207 772,210 1,224,417

Jan.-Oct. 2000 -373,892 641,780 1,015,672 Jan.-Oct. 2001 -360,613 611,207 971,820

October 2000 -40,205 65,807 106,012 October 2001 -34,991 56,584 91,575

U.S. SERVICES EXPORTS, IMPORTS AND TRADE BALANCE Millions of dollars, on a balance of payments basis, seasonally adjusted

Trade balance Exports Imports

Jan.-Dec. 1999 83,596 272,800 189,204 Jan.-Dec. 2000 76,468 293,492 217,024

Jan.-Oct. 2000 64,421 244,207 179,786 Jan.-Oct. 2001 68,408 237,951 169,543

October 2000 6,180 24,605 18,425 October 2001 5,558 20,735 15,177

U.S. GOODS EXPORTS, IMPORTS AND TRADE BALANCE, BY COUNTRY Millions of dollars, on a Census basis, not seasonally adjusted

Bilateral October October balance exports imports

Total -40,498 60,842 101,340

North America -6,385 23,239 29,623 Canada -3,793 13,918 17,711 Mexico -2,592 9,321 11,912

Western Europe -7,556 14,119 21,675 Euro Area -5,577 9,320 14,897 European Union -6,955 13,066 20,020 Austria -140 225 366 Belgium 26 1,011 985 Finland -179 125 304 France -865 1,692 2,558 Germany -2,676 2,373 5,049 Italy -1,191 948 2,139 Netherlands 610 1,503 893 Spain 83 524 441 Sweden -545 255 800 United Kingdom -731 3,217 3,948 Other EU -1,346 1,192 2,538

European Free Trade Association -563 767 1,330 Norway -359 102 460 Switzerland -177 651 828 Other EFTA -28 15 42 Other Western Eur. -38 286 324

Eastern Europe, Former Soviet Reps. -637 586 1,222 Hungary -289 70 359 Poland -21 69 91 Former Sov. Reps. -228 364 592 Russia -240 208 448 Other FSR 12 157 145 Other Eastern Europe -98 82 180

Pacific Rim -20,963 14,399 35,362 Australia 348 940 592 China -9,152 1,645 10,797 Japan -6,957 4,349 11,306 Newly Industrialized Countries -2,514 5,728 8,242 Hong Kong 149 1,063 915 South Korea -1,625 1,526 3,151 Singapore 476 1,767 1,291 Taiwan -1,513 1,372 2,885 Other Pacific Rim -2,688 1,738 4,426

South/Central America -621 4,659 5,281 Argentina 29 266 237 Brazil -79 1,129 1,208 Colombia -82 317 399 Other S/C America -490 2,948 3,437

OPEC -3,056 1,683 4,740 Indonesia -678 220 898 Nigeria -611 82 693 Saudi Arabia -442 401 844 Venezuela -617 505 1,122 Other OPEC -707 476 1,183

Other countries -2,647 2,811 5,458 Egypt 618 683 65 South Africa -99 249 347 Other -3,166 1,879 5,045

NOTE: Data on a Census basis reflect movement of goods into and out of the United States through U.S. Customs Service stations. Balance-of-payments basis data adjust Census data to include products that bypass Customs, such as exports of military aircraft and imports of electricity from Canada.