*EPF504 08/13/2004
U.S. Trade Deficit Hits Another Record in June
(Large exports drop, high oil prices push gap wider) (980)

By Andrzej Zwaniecki
Washington File Staff Writer

Washington -- The U.S. trade deficit jumped in June to a record level after falling a month earlier for the first time in six months, the Department of Commerce reports.

The $55.8 billion deficit comprised a goods deficit, which increased to $60.2 billion, and a services surplus, which decreased to $4.3 billion, according to an August 13 Commerce Department news release. The department revised May's trade shortfall to $46.9 billion from the previously reported $46.0 billion.

The June gap expanded 19 percent as rising oil prices increased the cost of energy imports and exports dropped. Exports fell by 4.3 percent -- the largest month-to-month drop since September 2001 -- to $92.8 billion. Imports moved up for the fifth consecutive month rising 3.3 percent in June to an all time high of $148.6 billion.

The June data reflected major decreases in exports of capital goods and industrial supplies and materials as well as increases in imports of supplies and materials, capital goods, and transportation and travel services.

The bilateral goods deficits with all major U.S. trading partners increased; one with China from $12.1 billion in May to $14.2 billion and one with the European Union from $7.9 billion to $10.6 billion.

The goods deficit with the Organization for Petroleum Exporting Countries (OPEC) grew by nearly 11 percent to $6.2 billion as the value of U.S. imports of crude oil rose from May to June by almost 18 percent to $15.3 billion.

Crude oil prices reached $33.76 a barrel, the highest price since March 1982, the department said. The quantity of oil imports also rose to a record level.

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.-June 2003 -248,769 496,471 745,240
Jan.-June 2004 -287,728 561,103 848,831

June 2003 -40,035 84,581 124,617
June 2004 -55,815 92,823 148,638

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.-June 2003 -273,476 348,013 621,489
Jan.-June 2004 -315,392 392,809 708,201

June 2003 -44,255 59,420 103,676
June 2004 -60,161 64,250 124,411

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.-June 2003 24,707 148,458 123,751
Jan.-June 2004 27,664 168,294 140,630

June 2003 4,220 25,161 20,941
June 2004 4,346 28,573 24,227

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

Bilateral June June
balance exports imports

Total -60,014 67,849 127,863

North America -11,523 25,360 36,883
Canada -6,627 16,384 23,011
Mexico -4,895 8,976 13,871

European Union (25) -10,622 13,712 24,355
Western Europe -10,659 14,935 25,594
Euro Area -7,845 10,224 18,069
European Union(15)-10,046 13,439 23,486
Austria -325 161 486
Belgium 291 1,365 1,074
Finland -157 183 340
France -945 1,813 2,757
Germany -3,631 2,448 6,079
Italy -1,715 861 2,576
Netherlands 859 1,913 1,054
Spain -157 516 672
Sweden -894 216 1,110
United Kingdom -1,097 2,864 3,961
Other EU -2,276 1,099 3,375

European Free Trade
Association -401 1,110 1,511
Norway -399 114 513
Switzerland 11 971 961
Other EFTA -12 25 38
Other Western Eur. -212 385 597

Eastern Europe, Former
Soviet Reps. -1,630 622 2,252
Hungary -129 55 185
Poland -91 74 165
Former Sov. Reps. -1,129 378 1,508
Russia -963 232 1,195
Other FSR -167 146 313
Other Eastern Europe -280 114 395

Pacific Rim -25,155 17,317 42,472
Australia 460 1,082 622
China -14,199 2,733 16,932
Japan -6,274 4,732 11,007
Newly Industrialized
Countries -2,189 7,039 9,227
Hong Kong 543 1,323 780
South Korea -1,988 2,104 4,091
Singapore 448 1,733 1,285
Taiwan -1,192 1,880 3,072
Other Pacific Rim -2,953 1,732 4,685

South/Central America-3,542 4,991 8,533
Argentina 6 261 254
Brazil -1,069 1,034 2,103
Colombia -307 324 631
Other S/C America -2,172 3,373 5,545

OPEC -6,195 1,986 8,181
Indonesia -777 217 994
Nigeria -1,465 117 1,582
Saudi Arabia -1,291 437 1,728
Venezuela -1,811 388 2,199
Other OPEC -852 827 1,678

Other countries -3,902 3,240 7,142
Egypt 73 169 96
South Africa -351 246 597
Other -3,623 2,825 6,449

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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