*EPF206 03/19/2002
U.S. Trade Deficit Up Sharply in January as Economy Improves
(Export levels down to lowest level in years) (780)

By Bruce Odessey
Washington File Staff Writer

Washington -- The U.S. trade deficit went up 15.4 percent in January reflecting the relative strength of the U.S. economy and foreign exchange value of the U.S. dollar, the U.S. Department of Commerce says.

In a March 19 report, the department said the January deficit amounted to a seasonally adjusted $28,518 million, comprising a goods deficit of $34,080 million and a services surplus of $5,562 million.

U.S. exports went down slightly in January for the second month in a row. U.S. manufacturers have been pressing the Bush administration to pursue policy pushing down the value of the dollar, arguing that the present value makes U.S. products too expensive.

According to Commerce Department officials, January U.S. exports were at their lowest level to a number of markets in years: recession-plagued Japan, eight years; the European Union, 2-1/2 years, and both Asia and Central America, five years.

U.S. imports went up 3.6 percent in January, the report said. The value of oil imports increased 12 percent, reflecting both higher volume and prices; the average price for a barrel of crude oil climbed from $15.51 in December to $16.31 in January.

As U.S. retailers restocked their shelves following the brief recession, consumer goods imports increased 6.2 percent in January, with especially big increases in pharmaceuticals.

While imports of autos and auto parts dropped to their lowest level since May 1999, imports of capital goods went up 5.5 percent, with the largest increases in computers and computer accessories.

The U.S. trade deficit with China surged 25 percent in January to $6,857 million, not seasonally adjusted. The deficit with Japan went down to $4,752 million. Other large bilateral deficits were reported for Canada, $4,433 million; Mexico, $2,271 million; Germany, $1,982 million; and Taiwan, $1,262 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. 2000 -375,739 1,065,702 1,441,441
Jan.-Dec. 2001 -347,461 1,004,609 1,352,070

January 2001 -33,489 89,901 123,390
January 2002 -28,518 77,968 106,486


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. 2000 -452,207 772,210 1,224,417
Jan.-Dec. 2001 -426,266 720,851 1,147,117

January 2001 -39,161 65,176 104,337
January 2002 -34,080 54,836 88,916


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. 2000 76,468 293,492 217,024
Jan.-Dec. 2001 78,805 283,758 204,593

January 2001 5,672 24,725 19,053
January 2002 5,562 23,132 17,570

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

Bilateral January January
balance exports imports

Total -32,963 52,458 85,421

North America -6,704 19,753 26,457
Canada -4,433 12,033 16,467
Mexico -2,271 7,720 9,991

Western Europe -4,979 12,331 17,310
Euro Area -3,891 8,288 12,179
European Union -4,629 11,436 16,065
Austria -54 170 224
Belgium 239 963 724
Finland -135 95 230
France -877 1,551 2,428
Germany -1,982 2,023 4,005
Italy -1,058 729 1,787
Netherlands 786 1,471 685
Spain 79 501 422
Sweden -322 248 570
United Kingdom -302 2,755 3,057
Other EU -1,004 930 1,934

European Free Trade
Association -344 603 948
Norway -210 100 310
Switzerland -114 485 599
Other EFTA -20 19 39
Other Western Eur. -6 292 298

Eastern Europe, Former
Soviet Reps. -351 432 784
Hungary -65 62 127
Poland -27 52 79
Former Sov. Reps. -169 249 418
Russia -127 185 312
Other FSR -42 64 106
Other Eastern Europe -91 70 160

Pacific Rim -15,378 13,216 28,594
Australia 411 945 534
China -6,857 1,566 8,423
Japan -4,752 3,918 8,670
Newly Industrialized
Countries -2,108 5,186 7,295
Hong Kong 66 902 836
South Korea -1,075 1,680 2,756
Singapore 162 1,384 1,222
Taiwan -1,262 1,220 2,481
Other Pacific Rim -2,072 1,601 3,673

South/Cent. America -1,082 3,835 4,917
Argentina -157 110 267
Brazil -86 1,010 1,097
Colombia -166 267 433
Other S/C America -674 2,448 3,121

OPEC -2,563 1,234 3,797
Indonesia -584 162 747
Nigeria -217 112 328
Saudi Arabia -522 281 803
Venezuela -594 364 957
Other OPEC -646 315 961

Other countries -3,084 2,182 5,265
Egypt 88 157 68
South Africa -218 159 377
Other -2,955 1,866 4,820

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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