*EPF307 01/14/2004
U.S. Trade Gap Narrows As Exports Reach Record Levels
(Falling dollar helps boost overseas sales) (1000)

By Andrzej S Zwaniecki
Washington File Staff Writer

Washington -- The U.S. trade deficit fell in November as exports hit a three-year high and imports dropped for the first time since August.

The trade gap narrowed by 8.6 percent to $38 billion -- the lowest level since October 2002 -- from a revised figure of $41.6 billion in October, according to figures released by the Commerce Department.

Exports jumped by 2.8 percent to $90.6 billion, the highest level since January 2001, mostly on strong overseas sales of civilian aircraft and consumer goods such as pharmaceuticals, artworks and antiques.

U.S. exports, which had risen steadily since May 2003, have been helped by the weaker dollar and a pick-up in economic activity overseas.

However, the total January-November trade deficit of $446.8 billion indicates that figures for the entire year will show another record-breaking trade gap for 2003. In 2002, the deficit amounted to $418 billion.

A $1.0 billion drop in imports to $128.6 from an October record monthly high of $129.7 billion reflected lower U.S. demand for energy products, particularly oil, and consumer goods such as apparel, household goods, and toys, games and sporting goods.

Making up the overall deficit were a deficit in goods of $43.6 billion -- a $3.5 billion increase from the previous month -- and a surplus in services of $5.6 billion, a $0.1 billion increase from October.

The trade in goods deficit with China -- the largest contributor to the overall U.S. deficit -- fell to $10.8 billion from a record of $13.6 billion in October as imports from that country plunged to $14.1 billion from $16.4 billion, a 14 percent drop from October. The deficits with two other major U.S. trading partners, the European Union and Japan, also declined by wide margins to $7.3 billion from $8.7 billion -- a 16 percent decline -- and to $5.7 billion from $6.4 billion -- a 11 percent decline -- respectively.

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.-Nov. 2002 -375,702 893,032 1,268,734
Jan.-Nov. 2003 -446,813 928,128 1,374,940

November 2002 -38,629 82,917 121,545
November 2003 -38,010 90,633 128,643

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 1,145,927
Jan.-Dec. 2002 -482,872 681,874 1,164,746

Jan.-Nov. 2002 -435,425 626,100 1,061,525
Jan.- Nov. 2003 -501,153 650,785 1,151,937

November 2002 -44,147 57,765 101,911
November 2003 -43,605 63,816 107,421

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.- Nov. 2002 59,723 266,932 207,209
Jan.- Nov. 2003 54,340 277,343 223,003

November 2002 5,518 25,152 19,634
November 2003 5,595 26,817 21,222

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

Bilateral November November
balance exports imports

Total -41,588 64,496 106,083

North America -7,249 23,334 30,584
Canada -4,226 14,663 18,889
Mexico -3,023 8,671 11,694

Western Europe -7,833 14,699 22,532
Euro Area -6,006 10,154 16,160
European Union -7,354 13,403 20,757
Austria -256 133 389
Belgium 474 1,251 776
Finland -97 186 283
France -1,174 1,417 2,591
Germany -3,508 2,470 5,978
Italy -1,131 1,017 2,148
Netherlands 1,151 2,089 938
Spain 103 680 578
Sweden -618 268 887
United Kingdom -582 2,807 3,389
Other EU -1,717 1,084 2,801

European Free Trade
Association -477 907 1,384
Norway -195 158 354
Switzerland -272 707 979
Other EFTA -10 41 51
Other Western Eur. -2 389 391

Eastern Europe, Former
Soviet Reps. -614 695 1,310
Hungary -112 122 235
Poland -46 72 118
Former Sov. Reps. -319 344 663
Russia -304 196 500
Other FSR -15 148 163
Other Eastern Europe -137 158 294

Pacific Rim -19,615 17,067 36,682
Australia 481 1,034 553
China -10,818 3,324 14,142
Japan -5,728 4,488 10,216
Newly Industrialized
Countries -1,580 6,176 7,756
Hong Kong 498 1,193 695
South Korea -1,197 2,199 3,396
Singapore 215 1,278 1,063
Taiwan -1,095 1,506 2,601
Other Pacific Rim -1,970 2,046 4,016

South/Central America-1,677 4,658 6,335
Argentina -24 233 257
Brazil -391 933 1,384
Colombia -181 313 494
Other S/C America -1,082 3,118 4,200

OPEC -3,919 1,508 5,427
Indonesia -523 246 769
Nigeria -505 86 590
Saudi Arabia -995 349 1,344
Venezuela -1,189 346 1,536
Other OPEC -706 481 1,187

Other countries -2,455 3,064 5,519
Egypt 123 215 92
South Africa -11 314 325
Other -2,567 2,535 5,102

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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