*EPF308 12/19/2001
U.S. Trade Deficit Close to Level Before Terrorist Attacks
(One-time effect of insurance payments surge passes) (780)

By Bruce Odessey
Washington File Staff Writer

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.

(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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