*EPF513 09/10/2004
U.S. Trade Deficit Drops in July as Exports Rise, Imports Fall
(Energy imports decrease in both quantity and price) (920)

By Bruce Odessey
Washington File Staff Writer

Washington -- The U.S. trade deficit dropped sharply in July as exports went up and, for the first time since August 2003, imports fell, the U.S. Commerce Department reports.

At $50.1 billion, July's deficit remains the second highest on record after June's revised $55 billion deficit and only the second reported deficit higher than $50 billion, the department said.

Down 8.9 percent from June, the July trade deficit comprises a goods deficit of $54.5 billion and a services surplus of $4.4 billion.

After falling in June exports went up 3 percent in July with significant increases in capital goods, including the volatile aircraft sector, and in industrial supplies.

After rising to record levels four months in a row, imports decreased 1.4 percent in July as oil imports fell in both quantity and price. Energy-related petroleum products imports dropped to $14.2 billion in July from $15.2 billion in June as the price per barrel of crude oil slipped to $33.28 from $33.76, which was a 20-year high.

The bilateral U.S. deficit with China went up to $14.9 billion, another record, accounting for about 30 percent of the total deficit. Other large deficits were recorded with the 25-member European Union, $10.5 billion; Japan, $6.4 billion; Canada, $6.1 billion, and Mexico, $3.5 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. 2002 -421,735 975,940 1,397,675
Jan.-Dec. 2003 -496,508 1,020,503 1,517,011

Jan.-July 2003 -289,583 582,083 871,666
Jan.-July 2004 -339,035 656,232 995,267

July 2003 -40,814 85,611 126,425
July 2004 -50,145 95,864 146,008

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 -482,895 681,833 1,164,728
Jan.-Dec. 2003 -547,552 713,122 1,260,674

Jan.-July 2003 -318,153 408,106 726,259
Jan.-July 2004 -368,858 460,717 829,575

July 2003 -44,677 60,092 104,769
July 2004 -54,510 67,483 121,992

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 61,160 294,107 232,947
Jan.-Dec. 2003 51,044 307,381 256,337

Jan.-July 2003 28,570 173,977 145,407
Jan.-July 2004 29,823 195,515 165,692

July 2003 3,863 25,519 21,656
July 2004 4,365 28,381 24,016

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

Bilateral July July
balance exports imports

Total -58,953 63,912 122,864

North America -9,644 22,310 31,954
Canada -6,109 13,608 19,718
Mexico -3,535 8,702 12,237

European Union (25) -10,534 13,092 23,626
Western Europe -11,087 13,956 25,043
Euro Area -8,054 9,579 17,633
European Union (15)-9,958 12,799 22,756
Austria -340 136 476
Belgium 401 1,402 1,002
Finland -131 185 316
France -1,115 1,420 2,535
Germany -4,270 2,442 6,712
Italy -1,759 784 2,544
Netherlands 752 1,772 1,019
Spain -22 567 588
Sweden -768 227 995
United Kingdom -943 2,850 3,793
Other EU -1,764 1,014 2,777

European Free Trade
Association -867 836 1,703
Norway -468 115 584
Switzerland -368 704 1,072
Other EFTA -31 17 48
Other Western Eur. -262 321 583

Eastern Europe, Former
Soviet Reps. -1,425 724 2,149
Hungary -148 53 201
Poland -89 87 176
Former Sov. Reps. -890 458 1,348
Russia -794 239 1,034
Other FSR -95 219 314
Other Eastern Europe -299 125 424

Pacific Rim -25,635 17,361 42,997
Australia 585 1,302 717
China -14,901 2,662 17,563
Japan -6,441 4,597 11,038
Newly Industrialized
Countries -2,040 6,939 8,979
Hong Kong 446 1,335 889
South Korea -1,673 2,152 3,825
Singapore 476 1,776 1,300
Taiwan -1,289 1,676 2,965
Other Pacific Rim -2,839 1,861 4,700

South/Cent. America -3,350 5,096 8,446
Argentina -21 327 348
Brazil -841 1,166 2,008
Colombia -232 355 587
Other S/C America -2,256 3,248 5,503

OPEC -5,999 1,839 7,838
Indonesia -833 246 1,079
Nigeria -1,133 109 1,242
Saudi Arabia -1,232 426 1,658
Venezuela -1,591 410 2,001
Other OPEC -1,211 648 1,859

Other countries -4,245 3,272 7,517
Egypt 100 201 101
South Africa -251 257 508
Other -4,094 2,814 6,909

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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