*EPF313 11/10/2004
U.S. Trade Deficit Fell 3.7 Percent in September as Exports Rise
(Imports decrease as oil, pharmaceutical shipments fall) (1000)

By Bruce Odessey
Washington File Staff Writer

Washington -- The U.S. trade deficit decreased 3.7 percent in September as exports went up and imports went down, the U.S. Department of Commerce reports.

In a November 10 report, the department estimated the September deficit at $51.6 billion, down from a revised $53.5 billion in August but still the fourth month in a row above $50 billion.

The September deficit comprised a goods deficit of $55.6 billion and a services surplus of $4.0 billion.

Exports went up 0.8 percent in September to a record $97.5 billion, the third consecutive monthly gain, possibly related in part to the four-month slide in the foreign exchange value of the U.S. dollar. Especially large increases were reported in exports of soybeans, organic chemicals, computer accessories and semiconductors.

Imports went down 0.8 percent to $149.0 billion, still the second highest level on record. Especially large decreases were reported in oil products and pharmaceuticals.

Even though crude oil prices were up to $37.62 per barrel, the quantity of shipments went down. Oil imports are expected to have increased since September; the crude oil price reached a record $55.67 per barrel October 25.

After the department released the September trade numbers the value of the dollar resumed its drop against other major currencies, falling to a record low $1.30 to the euro.

The politically sensitive trade deficit with China increased in September to $15.5 billion, 2-1/2 times the next largest bilateral deficit, $6.1 billion with Japan. The Bush administration is pressing China to stop pegging its currency to the U.S. dollar.

Other large bilateral deficits were reported in September with Canada, $5.3 billion; Mexico, $3.8 billion; Germany, $3.2 billion; and South Korea, $2.1 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.-Sept. 2003 -371,019 752,196 1,123,214
Jan.-Sept. 2004 -444,545 850,466 1,295,011

September 2003 -41,251 86,009 127,259
September 2004 -51,559 97,486 149,044

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.-Sept. 2003 -408,111 526,265 934,375
Jan.-Sept. 2004 -481,663 597,648 1,079,311

September 2003 -45,565 59,926 105,490
September 2004 -55,570 68,943 124,512

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.-Sept. 2003 37,092 225,931 188,839
Jan.-Sept. 2004 37,118 252,818 215,700

September 2003 4,314 26,083 21,769
September 2004 4,011 28,543 24,532

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

Bilateral September September
balance exports imports

Total -57,000 69,699 126,699

North America -9,109 26,269 35,378
Canada -5,290 16,606 21,896
Mexico -3,819 9,663 13,482

European Union (25) -7,676 14,235 21,911
Western Europe -7,882 15,163 23,046
Euro Area -5,725 10,629 16,354
European Union (15)-7,196 13,956 21,152
Austria -276 196 472
Belgium 316 1,342 1,026
Finland -126 183 308
France -879 1,825 2,704
Germany -3,191 2,780 5,971
Italy -1,296 868 2,164
Netherlands 1,054 2,082 1,028
Spain -52 481 533
Sweden -641 289 930
United Kingdom -619 2,897 3,517
Other EU -1,487 1,013 2,500

European Free Trade
Association -455 887 1,342
Norway -295 144 439
Switzerland -129 729 857
Other EFTA -31 14 45
Other Western Eur. -231 320 551

Eastern Europe, Former
Soviet Reps. -1,261 749 2,010
Hungary -124 55 179
Poland -84 76 160
Former Sov. Reps. -766 499 1,265
Russia -686 324 1,009
Other FSR -81 176 256
Other Eastern Europe -287 118 405

Pacific Rim -26,506 17,653 44,159
Australia 591 1,198 608
China -15,521 2,856 18,376
Japan -6,097 4,453 10,550
Newly Industrialized
Countries -2,485 7,308 9,793
Hong Kong 479 1,434 955
South Korea -2,099 2,304 4,402
Singapore 270 1,692 1,422
Taiwan -1,135 1,879 3,014
Other Pacific Rim -2,994 1,838 4,832

South/Cent. America -3,900 4,953 8,853
Argentina -19 320 338
Brazil -942 1,130 2,072
Colombia -319 368 687
Other S/C America -2,621 3,136 5,757

OPEC -6,737 1,963 8,700
Indonesia -801 208 1,009
Nigeria -1,196 131 1,327
Saudi Arabia -1,666 426 2,091
Venezuela -1,758 410 2,168
Other OPEC -1,316 789 2,105

Other countries -4,193 3,537 7,731
Egypt 121 260 139
South Africa -183 253 436
Other -4,131 3,025 7,155

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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