*EPF506 02/13/2004
U.S. Trade Deficit Reached Record High in 2003
(Gap increased 17 percent from 2002) (880)

By Kathryn McConnell
Washington File Staff Writer

Washington -- The U.S. monthly trade deficit widened nearly 11 percent in December to bring the deficit for the calendar year 2003 to a record high $489,378 million, the Commerce Department reports.

In a February 13 press release, the department calculated the December deficit at a seasonally adjusted $42,478 million, comprising a goods deficit of $48,174 million and a services surplus of $5,696 million. The December total was up from $38,353 million in November.

The 2003 trade gap was 17 percent greater than in 2002.

Exports of goods in 2003 increased $30,887 million from 2002, primarily in industrialized supplies and materials, and consumer goods such as televisions and pharmaceuticals, foods, feed, beverages, and automotive vehicles and parts.

Imports of goods increased $98,424 million from 2002 in the same categories as well as capital goods such as computer accessories and civilian aircraft.

U.S. exports of services rose to $304,800 up $12,578 million from 2002. Imports of services totaled $244,779 million for the year.

The growing trade deficit has put downward pressure on the dollar, causing people in the United States to pay more for imported goods, according to news reports.

Deficits for December were recorded with Western Europe at $11,103 million; China, $9,844 million; Japan, $5,700 million; members of the Organization of the Petroleum Exporting Countries (OPEC), $4,619 million; Canada, $4,447 million; Mexico, $3,141 million; South Korea, $1,403 million; Taiwan, $849 million; and Brazil, $530 million.

Surpluses were recorded with Hong Kong at $691 million; Australia, $522 million; and Egypt, $143 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. 2002 -418,038 974,107 1,392,145
Jan.-Dec. 2003 -489,378 1,018,572 1,507,949

December 2002 -42,332 81,075 123,406
December 2003 -42,478 90,371 132,849

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. 2002 -482,872 681,874 1,164,746
Jan.-Dec. 2003 -549,410 713,761 1,263,170

December 2002 -47,447 55,774 103,220
December 2003 -48,174 62,935 111,109

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. 2002 64,834 292,233 227,399
Jan.-Dec. 2003 60,032 304,811 244,779

December 2002 5,115 25,301 20,186
December 2003 5,696 27,436 21,740

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

Bilateral December December
balance exports imports

Total -46,395 63,132 109,527

North America -7,588 22,031 29,620
Canada -4,447 13,749 18,196
Mexico -3,141 8,283 11,424

Western Europe -11,103 13,914 25,017
Euro Area -8,191 9,597 17,788
European Union -10,290 12,827 23,116
Austria -308 153 462
Belgium 320 1,266 945
Finland -91 165 256
France -1,415 1,465 2,880
Germany -4,134 2,386 6,520
Italy -1,371 984 2,355
Netherlands 999 1,853 854
Spain -158 510 668
Sweden -858 308 1,166
United Kingdom -1,055 2,791 3,846
Other EU -2,219 946 3,164

European Free Trade
Association -667 817 1,484
Norway -288 125 413
Switzerland -332 668 1,000
Other EFTA -47 24 70
Other Western Eur. -145 271 417

Eastern Europe, Former
Soviet Reps. -748 727 1,474
Hungary -93 102 194
Poland -45 80 125
Former Sov. Reps. -461 364 826
Russia -485 184 669
Other FSR 24 180 156
Other Eastern Europe -149 181 330

Pacific Rim -18,488 17,886 36,374
Australia 522 1,094 572
China -9,874 3,320 13,194
Japan -5,700 4,502 10,201
Newly Industrialized
Countries -1,606 6,778 8,384
Hong Kong 691 1,367 676
South Korea -1,403 2,154 3,557
Singapore -46 1,291 1,337
Taiwan -849 1,966 2,815
Other Pacific Rim -1,830 2,192 4,022

South/Cent. America -2,892 4,533 7,425
Argentina -49 259 308
Brazil -530 1,054 1,584
Colombia -127 349 476
Other S/C America -2,186 2,871 5,057

OPEC -4,619 1,599 6,218
Indonesia -413 262 676
Nigeria -1,000 77 1,077
Saudi Arabia -802 447 1,249
Venezuela -1,513 298 1,811
Other OPEC -890 515 1,405

Other countries -2,906 2,981 5,887
Egypt 143 208 64
South Africa -90 333 423
Other -2,959 2,440 5,399

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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