Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, February 18, 1995 TAG: 9502200046
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
Nevertheless, the Clinton administration insisted that its aggressive campaign for big trade agreements to lower barriers to American products around the world was bearing fruit as reflected by the record exports.
The Commerce Department reported Friday that the merchandise deficit soared by 25.4 percent last year to $166.29 billion, compared to a 1993 deficit of $132.58 billion.
U.S. goods exports rose 10 percent to a record $502.8 billion. But that was outpaced by a 13.5 percent surge in imports, which also set a record of $669.09 billion.
While a slowing U.S. economy and faster growth overseas had been expected to start lowering the deficit this year, many private economists have begun to express concerns about this forecast in light of the recent economic turmoil in Mexico, America's third-biggest export market.
``1994 was a bummer when it came to the trade deficit, and the fact that we have just lost much of our export market in Mexico will probably make 1995 worse,'' said Robert Dederick, an economist at Northern Trust Co. in Chicago.
Dederick predicted a 1995 goods deficit of $175 billion.
America's deficit with Japan was up 11 percent to $65.7 billion while the imbalance with China surged by 30 percent to $29.5 billion. Together, those two countries accounted for 57 percent of the total goods deficit.
U.S. Trade Representative Mickey Kantor said President Clinton was convinced that his strategy of promoting market-opening trade deals such as the North American Free Trade Agreement and the General Agreement on Tariffs and Trade was correct.
by CNB