*EPF506 12/12/2003
U.S. Trade Deficit Surges in October as Imports Reach Record
(Exports gain for second consecutive month to highest level since March 2001) (1080)

By Bruce Odessey
Washington File Staff Writer

Washington -- The U.S. trade deficit went up sharply in October as imports reached a record even as exports reached their highest level in 31 months, the U.S. Department of Commerce reports.

In a December 12 report the department estimated the October deficit at a seasonally adjusted $41.773 billion, comprising a goods deficit of $47.436 billion and a services surplus of $5.663 billion. The trade deficit was in October at its highest level since May and up from $41.341 billion in September.

As the U.S. economic recovery strengthened and the foreign exchange value of the dollar continued weakening, October imports increased 2.1 percent to a record $129.732 billion, the second consecutive monthly increase, with especially big gains in autos and auto parts, mostly from Canada and Mexico; televisions, stereo equipment and all sorts of consumer goods as well as computers, aircraft and other capital goods.

Imports went up from all major U.S. trading partners with record amounts from China, the European Union (EU), Mexico and the rest of Latin America.

Imports of crude oil increased to $8.595 billion in October from $8.372 billion in September as the volume went up to 327.444 billion barrels, second only to the record 339.669 billion in July; the price per barrel decreased to $26.25 from $26.48 in September.

U.S. exports in October went up 2.6 percent to $87.959 billion, the highest level since March 2001 and the second consecutive monthly increase. Exports made large gains in industrial machines, aircraft, telecommunications equipment and other capital equipment as well as in the category of foods, feeds and beverages, which reached sales of $4.745 billion, the highest level since June 1996.

Even as U.S. exports to China reached a record $2.867 billion, that number was overshadowed by the record imports from China of $16.432 billion. This pushed up a deficit with China to $13.565 billion, more than twice as high as that with Japan, which, at $6.437 billion is the next largest bilateral deficit.

Other large deficits were reported with Canada, $4.907 billion; Germany, $3.626 billion, and Mexico, $3.527 billion.

The U.S. trade deficit from January through October 2003 amounted to $409 billion, compared with the record deficit for all 2002 of $418 billion.

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 -357,819 1,007,580 1,365,399
Jan.-Dec. 2002 -418,038 974,107 1,392,145

Jan.-Oct. 2002 -337,073 810,116 1,147,189
Jan.-Oct. 2003 -409,000 837,366 1,246,366

October 2002 -35,154 82,159 117,314
October 2003 -41,773 87,959 129,732

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 -427,215 718,712 1,356,312
Jan.-Dec. 2002 -482,872 681,874 1,407,341

Jan.-Oct. 2002 -391,278 568,336 1,145,927
Jan.-Oct. 2003 -457,871 586,689 1,164,746

October 2002 -40,647 57,301 959,614
October 2003 -47,436 61,362 1,044,560

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 69,396 288,868 219,472
Jan.-Dec. 2002 64,834 292,233 227,399

Jan.-Oct. 2002 54,205 241,780 187,575
Jan.-Oct. 2003 48,871 250,677 201,806

October 2002 5,493 24,858 19,365
October 2003 5,663 26,597 20,934

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 -51,134 66,447 117,580

North America -8,434 25,014 33,447
Canada -4,907 15,523 20,430
Mexico -3,527 9,490 13,017

Western Europe -9,248 14,785 24,212
Euro Area -6,406 10,318 16,723
European Union -8,679 13,571 22,250
Austria -316 131 448
Belgium 409 1,359 950
Finland -191 150 341
France -1,163 1,441 2,604
Germany -3,626 2,655 6,281
Italy -977 1,115 2,092
Netherlands 1,015 2,032 1,017
Spain -23 555 578
Sweden -765 286 1,051
United Kingdom -1,302 2,828 4,130
Other EU -1,740 1,019 2,758

European Free Trade
Association -592 909 1,501
Norway -318 142 459
Switzerland -242 752 995
Other EFTA -33 14 47
Other Western Eur. -157 305 461

Eastern Europe, Former
Soviet Reps. -601 850 1,451
Hungary -227 92 320
Poland -53 67 120
Former Sov. Reps. 16 594 578
Russia -105 317 422
Other FSR 121 277 157
Other Eastern Europe -336 97 433

Pacific Rim -24,341 16,894 41,235
Australia 618 1,181 563
China -13,565 2,867 16,432
Japan -6,437 4,388 10,824
Newly Industrialized
Countries -2,305 6,453 8,759
Hong Kong 296 1,253 957
South Korea -1,561 2,123 3,684
Singapore 82 1,440 1,358
Taiwan -1,122 1,638 2,760
Other Pacific Rim -2,652 2,005 4,657

South/Central Amer. -2,222 4,854 7,076
Argentina -24 223 247
Brazil -606 1,034 1,641
Colombia -213 343 556
Other S/C America -1,379 3,254 4,633

OPEC -4,385 1,546 5,931
Indonesia -754 194 948
Nigeria -896 81 977
Saudi Arabia -923 358 1,281
Venezuela -1,285 341 1,625
Other OPEC -527 573 1,100

Other countries -3,814 2,986 6,800
Egypt 209 289 80
South Africa -323 233 556
Other -3,701 2,463 6,164

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 Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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