U.S. trade deficit reaches $489 billion
The U.S. trade deficit for goods and services in 2003 shot up 17 percent to a record $489.4 billion, up from $418 billion in 2002, the government said. The balance of trade deficit for goods was a record $549.4 billion, but was offset by a $60 billion surplus in services exported by U.S. companies, according to U.S. Census Bureau statistics. The increase in the trade deficit was the largest since 1999.
The deficit increased to 4.5 percent from 4 percent as a percentage of gross domestic product.
The news comes as the presidential campaign heats up with charges that the Bush administration is not doing enough to protect American jobs. Last week, the president’s chief economic advisor said it was positive for the U.S. economy to outsource jobs, a comment that was swiftly rebuked by Democratic candidates.
The goods deficit with China increased to a record $124 billion from $103 billion, with imports increasing $27.2 billion to $152.4 billion on the strength of computers, computer accessories, apparel, toys, games, sporting goods and furniture imports.
The United States trimmed its goods deficit with Japan from $70 billion in 2002 to $66 billion in 2003 based on a slight increase in exports, primarily of civilian aircraft, meat and poultry, organic chemicals, industrial machines and soybeans, to $52 billion, while import of automobiles, computer accessories, toys, sporting goods and other products declined $3.4 billion.
The U.S. goods deficit with the European Union increased from $82.1 billion in 2002 to $94.3 billion in 2003. U.S. exports increased $6.9 billion (primarily pharmaceutical preparations, passenger vehicles, and organic chemicals) to $150.5 billion, while imports increased $19 billion (primarily pharmaceutical preparations, passenger vehicles, medicinal equipment, and other foods) to $244.8 billion.
The United States racked up record trade deficits with Mexico, Canada, the European Union, South and Central America as well as in advance technology products and crude oil volume.
U.S. exports in 2003 were up $44.5 billion, 4.6 percent, to $1 trillion. Goods, up $31 billion, or 4.7 percent, accounted for $713.8 billion of that amount. The largest increases occurred in industrial supplies and materials, including organic chemicals, other petroleum products, nonmonetary gold, raw cotton and plastics ($16. billion), consumer goods ($5.5 billion); and foods, feeds and beverages ($5.5 billion).
Imports, however, increased at much faster 8.3 percent pace, $115.8 billion, to $1.5 trillion, with goods accounting for $1.26 trillion, up 8.5 percent, primarily due to higher import levels of crude oil, natural gas and fuel oil, consumer goods and capital goods.