ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Thursday, September 19, 1996           TAG: 9609190028
SECTION: BUSINESS                 PAGE: B7   EDITION: METRO 
DATELINE: WASHINGTON 
SOURCE: ASSOCIATED PRESS

TRADE DEFICIT WORST IN 8 YEARS

The trade deficit swelled to $11.7 billion in July as a surge in Japanese auto imports, Chinese toys and foreign oil pushed the U.S. trade imbalance to its highest level in more than eight years.

The Commerce Department said Wednesday the July deficit was a sharp 43 percent higher than the June imbalance of $8.2 billion.

It left the deficit running at an annual rate of $109.6 billion, higher than last year's $105.1 billion, the worst showing in seven years.

The July figures reflected a 33 percent jump in the politically sensitive trade deficit with Japan, which rose to $4.3 billion, highest since October. Imports of Japanese cars and parts climbed $294 million to $2.9 billion, up 11 percent from June totals.

Negotiators from the United States and Japan were meeting Wednesday and today in San Francisco to review progress under a controversial 1995 auto agreement the Clinton administration has hailed as a major success in narrowing the automotive trade gap between the two countries. The auto sector accounts for about two-thirds of the total trade deficit with Japan.

America's deficit with China rose 15 percent to $3.82 billion, reflecting a 17 percent surge in imports such as toys and games, clothing and footwear.

The deficit with Western Europe climbed to an all-time high of $4.3 billion as U.S. exports dropped $2 billion, led by a big decline in civilian aircraft sales. Imports were up $1.5 billion, led by an increase of $350 million in European car imports.

LENGTH: Short :   40 lines
ILLUSTRATION: PHOTO:   1. AP Commerce Secretary Mickey Kantor discusses the 
          data with reporters Wednesday.
          2. graph - U. S. trade in goods and services   AP