*EPF503 08/18/00
U.S. Trade Deficit Rises to Another Record in June
(Volume, price of crude oil imports up again) (920)
By Bruce Odessey
Washington File Staff Writer

Washington -- The U.S. trade deficit increased to a new record in June after decreasing for two months as both the volume and price of crude oil imports went up again, the U.S. Department of Commerce reports.

In an August 18 report, the department said the June deficit amounted to $30,618 million, up 1 percent from May and just ahead of the previous record, $30,606 million, set in March.

The June deficit comprised a $36,846 million deficit in goods and a $6,228 million surplus in services.

"The U.S. economy continues to perform very strongly, with solid gains in output, employment, and income, along with low inflation," Under Secretary of Commerce Robert Shapiro said in a written statement.

"This remarkable performance will continue to support strong growth in U.S. imports," he said. "However, we should also expect to see U.S. exports continuing to trend upward at a solid rate, as economic expansions take firm hold in a number of foreign economies."

For the first half of 2000 the trade deficit amounted to $177,600 million, compared to $115,976 million for the first half of 1999 and $75,220 million for the first half of 1998.

In June both U.S. imports and exports set records, reflecting both continued strong U.S. economic performance and strengthening foreign economic expansion. Imports increased $4,308 million while exports increased $3,996 million although exports increased at a faster pace, 4.6 percent, than imports, 3.7 percent.

U.S. imports of crude oil climbed in June to an average 10.030 million barrels a day, up from 9.276 million in June 1999, while the price per barrel climbed to $26.65, the highest level since November 1990. In June 1999 the price per barrel was only $14.52.

The largest increases in June imports were in crude oil, autos and auto parts and capital goods. The largest increases in June exports were in semiconductors and computer accessories, industrial supplies such as non-monetary gold and nuclear fuel, consumer goods, and autos and auto parts.

The June bilateral deficits with North American Free Trade Agreement partners set records, $4,342 million for Canada and $2,283 million for Mexico. The deficit with China went up sharply to $7,215 million. The deficit with Japan dropped to $6,314 million and that with the European Union fell sharply to $4,004 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. 1998 -166,897 932,977 1,099,875
Jan.-Dec. 1999 -264,971 956,242 1,221,213

Jan.-June 1999 -115,976 464,618 580,594
Jan.-June 2000 -177,600 518,750 696,351

June 1999 -23,342 78,679 102,021
June 2000 -30,618 90,563 121,182

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. 1998 -246,853 670,324 917,178
Jan.-Dec. 1999 -345,559 684,358 1,029,917

Jan.-June 1999 -157,008 330,392 487,400
Jan.-June 2000 -216,053 375,538 591,592

June 1999 -30,381 55,696 86,077
June 2000 -36,846 66,495 103,342

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. 1998 79,956 262,653 182,697
Jan.-Dec. 1999 80,588 271,884 191,296

Jan.-June 1999 41,032 134,226 93,194
Jan.-June 2000 38,453 143,212 104,759

June 1999 7,039 22,983 15,944
June 2000 6,228 24,068 17,840

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

Bilateral June June
balance exports imports

Total -35,863 68,301 104,164

North America -6,625 25,443 32,068
Canada -4,342 15,802 20,144
Mexico -2,283 9,641 11,924

Western Europe -4,332 15,401 19,732
Euro Area -3,516 9,821 13,337
European Union -4,004 13,997 18,001
Austria -54 202 256
Belgium 459 1,153 693
Finland -135 122 257
France -632 1,692 2,324
Germany -2,403 2,296 4,699
Italy -1,183 921 2,105
Netherlands 1,065 1,837 772
Spain 100 582 481
Sweden -367 407 774
United Kingdom -17 3,553 3,570
Other EU -839 1,231 2,070

European Free Trade
Association -470 867 1,337
Norway -385 112 497
Switzerland -65 737 802
Other EFTA -21 18 39
Other Western Eur. 143 537 394

Eastern Europe, Former
Soviet Reps. -833 451 1,285
Hungary -166 45 210
Poland -32 59 91
Former Sov. Reps. -549 259 807
Russia -396 161 557
Other FSR -153 98 250
Other Eastern Europe -87 89 176

Pacific Rim -17,358 18,231 35,589
Australia 555 1,145 590
China -7,215 1,343 8,558
Japan -6,314 5,825 12,139
Newly Industrialized
Countries -1,941 7,723 9,664
Hong Kong 260 1,277 1,017
South Korea -905 2,598 3,502
Singapore -138 1,490 1,627
Taiwan -1,159 2,358 3,518
Other Pacific Rim -2,443 2,195 4,638

South/Cent. America -1,303 5,299 6,602
Argentina 145 419 274
Brazil 50 1,446 1,396
Colombia -280 292 572
Other S/C America -1,218 3,141 4,360

OPEC -4,581 1,450 6,031
Indonesia -745 175 920
Nigeria -1,097 45 1,142
Saudi Arabia -695 394 1,089
Venezuela -1,078 547 1,626
Other OPEC -967 288 1,255

Other countries -2,670 2,732 5,402
Egypt 283 367 84
South Africa -47 384 431
Other -2,906 1,981 4,886

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.

(The Washington File is a product of the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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