*EPF309 03/12/2003
U.S. Trade Deficit Drops in January as Exports Go Up, Imports Down
(January deficit still second highest on record) (900)

By Bruce Odessey
Washington File Staff Writer

Washington -- The U.S. trade deficit dropped sharply in January as exports increased and imports decreased, but it still amounted to the second highest monthly deficit on record, the U.S. Department of Commerce reports.

The department said March 12 that the January deficit came to $41,115 million, down from the record revised $44,877 million in December. The January deficit comprised a goods deficit of $44,814 million and a services surplus of $3,699 million.

Possibly reflecting weaker U.S. demand, imports fell 2 percent in January to $123,022 million, with especially large drops in consumer goods such as televisions and in capital equipment such as aircraft and telecommunications equipment.

The value of oil imports increased sharply, however, as the price per barrel shot up from $24.15 in December to $27.73 in January, the highest level since November 2000. Imports from major oil producer Venezuela dropped to $375 million, the lowest level since February 1989, as that country was still reeling from a general strike.

U.S. exports went up 1.6 percent in January to $81,907 million, with especially large gains in pharmaceuticals, telecommunications equipment and nuclear fuels material.

The persistent high level of the U.S. trade deficit can be attributed partly to the faster rate of economic expansion in the United States compared with that in the European Union (EU) and Japan even though the foreign exchange value of the dollar has dropped 26 percent against the euro and 9 percent against the yen over the past year.

In January the United States had bilateral deficits of $9,421 million with China, $5,220 million with Japan, $6,502 million with the European Union, $4,953 million with Canada and $3,017 million with Mexico.

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. 2001 -358,290 998,022 1,356,312
Jan.-Dec. 2002 -435,676 971,665 1,407,341

January 2002 -29,872 77,431 107,303
January 2003 -41,115 81,907 123,022

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. 2001 -427,165 718,762 1,145,927
Jan.-Dec. 2002 -484,487 682,387 1,166,874

January 2002 -33,526 54,922 88,448
January 2003 -44,814 56,770 101,584

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. 2001 68,875 279,260 210,385
Jan.-Dec. 2002 48,811 289,278 240,467

January 2002 3,654 22,509 18,855
January 2003 3,699 25,137 21,438

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 -42,944 54,703 97,647

North America -7,970 20,681 28,651
Canada -4,953 12,856 17,809
Mexico -3,017 7,826 10,843

Western Europe -6,989 12,798 19,787
Euro Area -5,586 8,763 14,349
European Union -6,502 11,776 18,278
Austria -175 123 299
Belgium 433 1,210 777
Finland -163 103 265
France -1,020 1,378 2,398
Germany -2,685 2,148 4,833
Italy -1,066 953 2,019
Netherlands 609 1,509 900
Spain -31 470 501
Sweden -428 233 661
United Kingdom -350 2,669 3,019
Other EU -1,625 979 2,605

European Free Trade
Association -348 762 1,110
Norway -212 110 321
Switzerland -111 644 755
Other EFTA -25 9 34
Other Western Eur. -139 259 398

Eastern Europe, Former
Soviet Reps. -757 474 1,231
Hungary -46 88 133
Poland -50 56 107
Former Sov. Reps. -518 247 765
Russia -463 158 621
Other FSR -55 89 144
Other Eastern Europe -143 83 227

Pacific Rim -19,248 13,553 32,801
Australia 274 841 567
China -9,421 1,988 11,410
Japan -5,220 3,925 9,145
Newly Industrialized
Countries -2,779 5,073 7,851
Hong Kong 122 944 822
South Korea -1,134 1,731 2,864
Singapore -385 1,064 1,449
Taiwan -1,382 1,334 2,717
Other Pacific Rim -2,102 1,726 3,828

South/Cent. America -1,196 4,008 5,204
Argentina -134 139 273
Brazil -584 804 1,387
Colombia -219 307 526
Other S/C America -259 2,759 3,018

OPEC -3,630 1,122 4,752
Indonesia -488 240 728
Nigeria -769 71 840
Saudi Arabia -1,262 335 1,597
Venezuela -280 117 397
Other OPEC -830 358 1,189

Other countries -3,923 2,423 6,346
Egypt 79 223 144
South Africa -198 176 375
Other -3,805 2,023 5,828

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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