Recent developments.

Youssef, Michael

U.S. International Trade in Goods and Services

The U.S. Department of Commerce reported that seasonally adjusted exports of $90.4 billion and imports of $132.8 billion in December 2003 resulted in a goods and services deficit of $42.5 billion, $4.1 billion more than the $38.4 billion deficit in November 2003. December 2003 exports of $90.4 billion were $0.2 billion less than November exports of $90.6 billion. (2) December 2003 imports of about $132.9 billion were $3.9 billion more than November imports of $128.9 billion.

December 2003 merchandise exports decreased by about $0.8 billion to $62.9 billion, from November exports of $63.7 billion. Merchandise imports increased by about $3.4 billion to $111.1 billion from November 2003 imports of $107.7 billion. The merchandise trade deficit increased by about $4.2 billion in December 2003 to $48.2 billion from $43.9 billion in November.

For services, exports increased by about $0.6 billion to $27.4 billion in December 2003 from $26.8 billion in November. Imports of services increased to $21.7 billion in December 2003 from $21.3 billion in November. The services trade surplus in December 2003 rose to $5.9 billion from $5.6 billion in November 2003.

Changes in merchandise exports from November to December 2003 reflected increases in industrial supplies and materials ($0.6 billion); and automotive vehicles, parts and engines ($0.3 billion). Decreases occurred in capital goods ($1.2 billion); foods, feeds, and beverages ($0.3 billion); and consumer goods ($0.2 billion). The statistical category "other goods" was virtually unchanged. The November to December 2003 change in imports of goods reflected increases in industrial supplies and materials ($1.3 billion); capital goods ($1.2 billion); automotive vehicles, parts, and engines ($0.5 billion); consumer goods ($0.4 billion); and foods, feeds, and beverages ($0.1 billion). The "other goods" statistical category was virtually unchanged. Additional information on U.S. trade developments in agriculture and specified manufacturing sectors during January-December 2003 is highlighted in tables 1 and 2, and figures 1 and 2. Services trade developments are highlighted in table 3.

In December 2003, exports of advanced technology products were around $16.7 billion and imports of the same were about $20.1 billion, resulting in a deficit of $3.4 billion, about $1.5 billion more than the November deficit of $1.9 billion. Exports of these products in December 2003 of $16.7 billion were virtually the same as those recorded in November. But imports of advanced technology products of $20.1 billion in December 2003 were about $1.6 billion more than the $18.6 billion imports in November.

The December 2003 trade data showed U.S. surpluses with the following countries (preceding month in parentheses): Australia, $0.5 billion ($0.5 billion in November 2003); Hong Kong, $0.7 billion ($0.5 billion); Egypt, $0.1 billion ($0.1 billion). Deficits were recorded in December 2003 with China, $9.9 billion ($10.8 billion); Western Europe, $11.1 billion ($7.8 billion); Canada, $4.4 billion ($4.3 billion); Japan, $5.7 billion ($5.7 billion); OPEC member countries, $4.6 billion ($3.9 billion); Mexico $3.1 billion ($3.0 billion); Taiwan, $0.8 billion ($1.1 billion); Korea, $1.4 billion ($1.2 billion); and Brazil, $0.5 billion ($0.4 billion).

[FIGURE 2 OMITTED]

In January-December 2003, exports of goods and services were $1,018.6 billion, about $44.5 billion higher than January-December 2002 exports of $974.1 billion. Imports of goods and services were $1,507.9 billion, about $115.8 billion higher than January-December 2002 imports of $1,392.1 billion. The trade deficit was about $489.4 billion, $74.1 billion higher than the January-December 2002 deficit of $418.0 billion.

The December 2002 to December 2003 change in exports of goods reflected increases in industrial supplies and materials ($1.6 billion); capital goods ($3.5 billion); foods, feeds, and beverages ($0.6 billion); consumer goods ($0.9 billion); and automotive vehicles, parts, and engines ($0.5 billion). A decrease of $0.1 billion occurred in the statistical category "other goods."

The December 2002 to December 2003 changes in imports of goods reflected increases in consumer goods ($1.7 billion); capital goods ($2.2 billion); industrial supplies and materials ($2.7 billion); automotive vehicles, parts, and engines ($1.0 billion); and foods, feeds and beverages ($0.4 billion). A decrease occurred in the "other goods" statistical category ($0.1 billion).

The January-December 2003 trade data show surpluses with Belgium, $5.1 billion (for January-December 2002, $3.3 billion); the Netherlands, $9.7 billion ($8.5 billion); Hong Kong, $4.7 billion ($3.3 billion); Australia, $6.7 billion ($6.6 billion); Singapore, $1.4 billion ($1.4 billion); and Egypt, $1.5 billion ($1.5 billion). Deficits were recorded with Canada, $54.4 billion ($48.2 billion); Mexico, $40.6 billion ($37.2 billion); Western Europe, $101.3 billion ($88.9 billion); the euro area, $75.4 billion ($66.7 billion); European Union, $94.3 billion ($82.1 billion); France, $12.2 billion ($9.2 billion); Germany, $39.2 billion ($35.9 billion); Italy, $14.9 billion ($14.2 billion); United Kingdom, $8.8 billion ($7.5 billion); EFTA, $6.0 billion ($6.3 billion); Pacific Rim countries, $230.0 billion ($214.9 billion); China, $124.0 billion ($103.1 billion); Japan, $66.0 billion ($70.0 billion); Korea, $12.9 billion ($13.0 billion); Taiwan, $14.1 billion ($13.8 billion); and OPEC, $51.0 billion ($34.4 billion). It should be noted that individual European countries shown here are also included in the euro area and in the European Union grouping. Likewise, individual Asian countries mentioned are also included in the Pacific Rim countries grouping. U.S. trade developments with major trading partners are highlighted in table 4.

U.S. International Transactions: Third Quarter 2003

Current Account

The U.S. current-account deficit-the combined balances on trade in goods and services, income, and net unilateral current transfers-decreased by $4.4 billion to $135.0 billion in the third quarter of 2003 from $139.4 billion in the second. A decrease in the deficit on goods, increases in the surpluses on services and on income, and a decrease in net outflows for unilateral current transfers all contributed to the decline in the current-account deficit, according to preliminary estimates of the Bureau of Economic Analysis of the U.S. Department of Commerce, table 5.

Goods and services

The deficit on goods and services decreased by about $2.9 billion to $121.3 billion in the third quarter from $124.2 billion in the second. The deficit on goods and services accounted for 90.0 percent of the current-account total deficit.

Goods. The deficit on goods decreased to $136.2 billion in the third quarter from $138.1 billion in the second. Goods exports increased to $177.9 billion from $174.2 billion. Agricultural and nonagricultural products both increased. Among nonagricultural products, the largest increase was in capital goods; consumer goods also increased. Goods imports increased to $314.1 billion from $312.3 billion. The increase was almost completely accounted for by an increase in petroleum and petroleum products, which was mainly due to the increase in petroleum prices. Among nonpetroleum products, increases in nonpetroleum industrial supplies and materials and in capital goods were largely offset by a decrease in automotive vehicles, engines, and parts.

Services. The surplus on services increased to $14.9 billion in the third quarter from $13.9 billion in the second. Services receipts increased to $76.8 billion from $73.2 billion. The increase was largely accounted for by increases in travel and passenger fare receipts; most other services categories also increased. Services payments increased to $61.9 billion from $59.3 billion. The increase was largely accounted for by increases in travel and passenger fare payments; most other services categories also increased.

Income

The surplus on income increased to $2.6 billion in the third quarter from $1.7 billion in the second due to the increase of income receipts on U.S. assets abroad over income payments on foreign assets in the United States.

Investment income

Income receipts on U.S.-owned assets abroad increased to $66.5 billion from $63.5 billion. The increase was mostly accounted for by an increase in direct investment receipts; "other" private receipts (which consist of interest and dividends) also increased. Income payments on foreign-owned assets in the United States increased to $62.7 billion from $60.5 billion. The increase was almost entirely accounted for by increases in "other" private payments (interest and dividends) and in direct investment payments.

Compensation of employees

Receipts for compensation of U.S. workers abroad were virtually unchanged at $0.8 billion. Payments for compensation of foreign workers in the United States decreased slightly to $2.0 billion from $2.1 billion.

Unilateral current transfers

Unilateral current transfers were net outflows of $16.3 billion in the third quarter, down from net outflows of $16.9 billion in the second.

Capital and Financial Account

Capital account

Capital account transactions were net outflows of $0.8 billion in the third quarter, down from net outflows of $1.6 billion in the second.

Financial account

Net recorded financial inflows-net acquisitions by foreign residents of assets in the United States less net acquisitions by U.S. residents of assets abroad-were $123.3 billion in the third quarter, down from $150.0 billion in the second. Financial inflows for foreign-owned assets in the United States declined more than financial outflows for U.S.-owned assets abroad.

U.S.-owned assets abroad

U.S.-owned assets abroad increased by $4.9 billion in the third quarter, compared with an increase of $112.8 billion in the second. U.S. claims on foreigners reported by U.S. banks decreased by $39.3 billion in the third quarter, in contrast to an increase of $72.8 billion in the second.

Transactions in foreign securities shifted to net U.S. purchases of $28.8 billion in the third quarter from net U.S. sales of $8.7 billion in the second. Net U.S. purchases of foreign stocks were $30.1 billion, up from $16.9 billion, and net U.S. sales of foreign bonds were $1.2 billion, down from $25.6 billion.

Net financial outflows for U.S. direct investment abroad were $37.5 billion in the third quarter, up from $29.9 billion in the second. A shift in inter-company debt to net outflows from net inflows and an increase in reinvested earnings more than offset a decrease in net equity capital outflows. U.S. official reserve assets increased by $0.6 billion in the third quarter, following an increase of $0.2 billion in the second.

Foreign-owned assets in the United States

Foreign-owned assets in the United States increased by $128.2 billion in the third quarter of 2003, compared with an increase of $262.8 billion in the second. U.S. liabilities to foreigners reported by U.S. banks increased by $7.1 billion in the third quarter, following an increase of $36.8 billion in the second.

Net foreign purchases of U.S. securities other than U.S. Treasury securities were $9.6 billion in the third quarter, down from $86.0 billion in the second. Transactions in U.S. stocks shifted to net foreign sales of $3.5 billion from net foreign purchases of $20.6 billion. Net foreign purchases of U.S. corporate bonds were $57.5 billion, down from $67.2 billion, and net foreign sales of federally sponsored agency bonds were $44.5 billion, up from $1.8 billion.

Net foreign purchases of U.S. Treasury securities were $49.9 billion in the third quarter, down from $55.0 billion in the second. Net financial inflows for foreign direct investment in the United States were $8.1 billion in the third quarter, down from $22.4 billion in the second. The decrease was more than accounted for by a shift in inter-company debt to net outflows from net inflows. In contrast, reinvested earnings and net equity capital inflows both increased.

Foreign official assets in the United States increased by $43.9 billion in the third quarter, following an increase of $57.0 billion in the second. Net U.S. currency shipments were $2.8 billion in the third quarter, up from $1.5 billion in the second.

The statistical discrepancy-errors and omissions in recorded transactions-was a positive $12.5 billion in the third quarter, compared with a negative $9.1 billion in the second. In the third quarter, the U.S. dollar was unchanged on a trade-weighted quarterly average basis against the Group of 7 (G-7) currencies.

Michael Youssef (1)

myoussef@usitc.govm

202-205-3269

(1) Michael Youssef is an international economist in the Country and Regional Analysis Division of the U.S. International Trade Commission, Office of Economics. The views expressed in this article are those of the author. They are not the views of the U.S. International Trade Commission (USITC) as a whole or of any individual Commissioner.

(2) Data for this article were taken largely from the U.S. Department of Commerce, Bureau of Economic Analysis, "U.S. International Trade in Goods and Services," October 2003, BEA-04-02, FT-900 (03-11), Jan. 14, 2004, found at Internet address http://www.bea.doc.gov/bea/newsrel/tradnewsrelease.htm, retrieved on Jan. 14, 2004.

Table 1 U.S. trade in goods and services, seasonally adjusted, November
2003 to December 2003

 Exports
Item December 2003 November 2003 December 2003

 Billion dollars
Trade in goods (1)
 (see note)
 Including oil 62.9 63.7 111.1
 Excluding oil 62.6 63.5 99.8
Trade in services (1) 27.4 26.8 21.7
Trade in goods and 90.4 90.6 132.8
 services (1)
Trade in goods (2) 62.2 63.0 113.0
 Advanced technology 16.7 16.7 20.1
 products (3)

 Imports Trade balance
Item November 2003 December 2003 November 2003

 Billion dollars
Trade in goods (1)
 (see note)
 Including oil 107.7 -48.2 -43.9
 Excluding oil 97.1 -37.2 -33.5
Trade in services (1) 21.3 5.7 5.6
Trade in goods and 128.9 -42.5 -38.4
 services (1)
Trade in goods (2) 109.9 -50.8 -46.8
 Advanced technology 18.6 -3.4 -1.9
 products (3)

(1) Current dollars (balance-of-payments basis).
(2) Constant 1996 dollars (Census Bureau basis).
(3) Not seasonally adjusted.

Note.--Data on trade in goods in current dollars are presented on a
balance-of-payments (BOP) basis that reflects adjustments for timing,
coverage, and valuation of data compiled by the U.S. Treasury
Department, Census Bureau. The major adjustments on a BOP basis exclude
military trade, but include nonmonetary gold transactions and estimates
of inland freight in Canada and Mexico that are not included in the
Census Bureau data. Data may not add to totals due to rounding.
Source: Calculated from official data of the U.S. Department of
Commerce, Exhibits 1, 9, 10, and 16, FT-900 release of Feb. 13, 2004,
found at Internet address
http://www.bea.doc.gov/bea/newsrel/tradnewsrelease.htm.

Table 2 Nominal U.S. exports, imports, and trade balances, agriculture
and specified manufacturing sectors, January 2002 to December 2003

 Exports Imports
 Dec. Jan.-Dec. Jan.-Dec. Dec.
Manufacture sector 2003 2003 2002 2003

 Billion dollars
ADP equipment & office 3.0 28.9 30.4 7.7
 machinery
Airplane parts 1.2 14.5 14.3 0.4
Airplanes 2.0 23.4 27.1 1.5
Chemicals--inorganic 0.4 5.6 5.5 0.7
Chemicals--organic 1.9 20.1 16.4 3.1
Electrical machinery 6.0 69.8 66.9 7.1
General industrial 2.5 30.1 30.1 3.3
 machinery
Iron & steel mill products 0.5 6.3 5.3 0.9
Power-generating machinery 2.8 31.5 32.4 2.7
Scientific instruments 2.6 28.0 27.1 2.1
Specialized industrial 2.0 23.4 23.5 2.0
 machinery
Televisions, VCRs, etc. 1.6 16.9 19.4 6.9
Textile yarn and fabric 0.8 10.5 10.3 1.5
Vehicles 4.9 60.5 57.7 15.5
Other manufactures, not 15.4 187.5 178.6 34.5
 included above
 Manufactures 47.4 556.8 544.9 89.9
 Agriculture 6.0 59.5 53.1 4.4
 Other goods, not included 9.7 107.7 95.1 15.2
 above
 Total (Census basis) 63.1 724.0 693.1 109.5

 Imports Trade balance
 Jan.-Dec. Jan.-Dec. Jan.-Dec. Jan.-Dec.
Manufacture sector 2003 2002 2003 2002

 Billion dollars
ADP equipment & office 80.8 76.9 -52.0 -46.5
 machinery
Airplane parts 4.5 5.0 10.0 9.3
Airplanes 12.3 12.3 11.1 14.8
Chemicals--inorganic 7.4 6.0 -1.8 -0.6
Chemicals--organic 32.9 30.4 -12.8 -14.0
Electrical machinery 82.4 81.2 -12.7 -14.2
General industrial 38.5 35.2 -8.4 -5.1
 machinery
Iron & steel mill products 11.1 13.0 -4.8 -7.7
Power-generating machinery 32.5 33.9 -1.0 -1.5
Scientific instruments 23.7 20.9 4.3 6.2
Specialized industrial 20.8 18.4 2.5 5.1
 machinery
Televisions, VCRs, etc. 71.1 66.2 -54.3 -46.8
Textile yarn and fabric 17.3 16.1 -6.8 -5.8
Vehicles 172.6 168.1 -112.1 -110.4
Other manufactures, not 419.5 391.1 -232.0 -212.5
 included above
 Manufactures 1027.4 974.6 -470.6 -429.7
 Agriculture 47.4 42.0 12.1 11.1
 Other goods, not included 184.9 144.8 -77.2 -49.7
 above
 Total (Census basis) 1259.7 1161.4 -535.7 -468.3

 Change in exports, Change in trade
 Jan-Dec. 2003 over balance, Jan-Dec. 2003
Manufacture sector Jan.-Dec. 2002 over Jan.-Dec. 2002

 Percent
ADP equipment & office -5.0 11.8
 machinery
Airplane parts 1.5 7.8
Airplanes -13.6 -25.0
Chemicals--inorganic 2.1 232.5
Chemicals--organic 22.5 -8.5
Electrical machinery 4.2 -10.9
General industrial 0.1 63.0
 machinery
Iron & steel mill products 19.3 -37.1
Power-generating machinery -2.9 -33.6
Scientific instruments 3.4 -30.1
Specialized industrial -0.7 -50.7
 machinery
Televisions, VCRs, etc. -13.0 15.9
Textile yarn and fabric 1.9 16.6
Vehicles 4.9 1.5
Other manufactures, not -22.6 -143.6
 included above
 Manufactures 2.2 9.5
 Agriculture 12.0 8.8
 Other goods, not included 13.3 55.4
 above
 Total (Census basis) 4.5 14.4

Note.--Data on trade in manufactures are presented on a Census Bureau
basis. Data may not add to totals due to rounding.
Source: Calculated from official data of the U.S. Department of
Commerce, Exhibit 15, FT-900 release of Feb. 13, 2004, found at Internet
address http://www.bea.doc.gov/bea/newsrel/tradnewsrelease.htm.

Figure 1 U.S. trade by major commodity, December 2003

Billion dollars
 Exports Imports Trade balance

Manufactures 47.4 89.9 -42.5
Agriculture 6.0 4.4 1.6
Petroleum 1.2 12.9 -11.6

Source: Calculated from official data of the U.S. Department of
Commerce, Exhibit 15, FT-900 release of Feb. 13, 2004.

Note: Table made from bar graph.

Table 3 Nominal U.S. exports, imports, and trade balances of services,
by sectors, January 2002 to December 2003, seasonally adjusted

 Imports Trade
 Exports Jan. balance
 Jan.-Dec. Jan.-Dec. Jan.-Dec. -Dec. Jan.-Dec.
Service sector 2003 2002 2003 2002 2003

 Billion dollars
Travel 65.8 66.5 57.0 58.0 8.8
Passenger fares 15.7 17.0 20.6 20.0 -4.9
Other transportation 31.7 29.2 44.9 38.5 -13.2
 services
Royalties and 48.1 44.1 19.2 19.3 28.9
 license fees
Other private sales 130.0 122.6 76.4 69.4 53.6
Transfers under U.S. 12.7 11.9 23.7 19.2 -11.0
 military sales
 contracts
U.S. Government 0.8 0.8 3.0 2.9 -2.2
 miscellaneous
 services
 Total 304.8 292.2 244.8 227.4 60.0

 Change in
 imports Jan.-
 Trade balance Change in exports Jan.-Dec. 2003
 Jan.-Dec. Jan.-Dec. 2003 over over Jan.-Dec.
Service sector 2002 Jan.-Dec. 2002 2002

 Billion
 dollars Percent
Travel 8.5 -1.2 -1.8
Passenger fares -2.9 -8.0 3.0
Other transportation -9.4 8.7 16.5
 services
Royalties and 24.9 8.9 -0.3
 license fees
Other private sales 53.2 6.1 10.1
Transfers under U.S. -7.3 6.4 23.1
 military sales
 contracts
U.S. Government -2.1 2.0 2.9
 miscellaneous
 services
Total 64.8 4.3 7.6

Note.--Data on trade in services are presented on a balance-of-payments
basis. Data may not add to totals due to rounding and seasonal
adjustments.
Source: Calculated from official data of the U.S. Department of
Commerce, Exhibits 3 and 4, FT-900 release of Feb. 13, 2004, found at
Internet address http://www.bea.doc.gov/bea/newsrel/tradnewsrelease.htm.

Table 4 U.S. exports and imports of goods with major trading partners,
January 2002-December 2003

 Exports Imports
 Dec. Jan.-Dec. Jan.-Dec. Dec. Jan.-Dec.
Country/areas 2003 2003 2002 2003 2003

 Billion dollars
Total (Census basis) 63.1 724.0 693.1 109.5 1259.7
North America 22.0 267.2 258.4 29.6 362.2
 Canada 13.7 169.8 160.9 18.2 224.2
 Mexico 8.3 97.5 97.5 11.4 138.1
Western Europe 13.9 164.9 157.0 25.0 266.2
 Euro Area 9.6 111.9 105.8 17.8 187.3
 European Union
 (EU-15) 12.8 150.5 143.7 23.1 244.8
 France 1.5 17.1 19.0 2.9 29.2
 Germany 2.4 28.8 26.6 6.5 68.0
 Italy 1.0 10.6 10.1 2.4 25.4
 Netherlands 1.9 20.7 18.3 0.9 11.0
 United Kingdom 2.8 33.9 33.2 3.8 42.7
 Other EU 0.9 11.6 10.7 3.2 32.4
EFTA (1) 0.8 10.4 0.2 1.5 16.4
Eastern Europe/FSR (2) 0.7 7.1 6.6 1.5 18.3
 Russia 0.2 2.4 2.4 0.7 8.6
Pacific Rim Countries 17.9 188.7 178.6 36.4 418.7
 Australia 1.1 13.1 13.1 0.6 6.4
 China 3.3 28.4 22.1 13.2 152.4
 Japan 4.5 52.1 51.4 10.2 118.0
 NICs (3) 6.8 71.7 69.8 8.4 92.6
Latin America 4.5 52.0 51.6 7.4 78.9
 Argentina 0.3 2.4 1.6 0.3 3.2
 Brazil 1.1 11.2 12.4 1.6 17.9
OPEC 1.6 17.3 18.8 6.2 68.4
Other Countries 3.0 31.9 29.0 5.9 73.4
 Egypt 0.2 2.7 2.9 0.1 1.1
 South Africa 0.3 2.8 2.5 0.4 4.6

 Imports Trade balance
Country/areas Jan.-Dec. 2002 Jan.-Dec. 2003 Jan.-Dec. 2002

 Billion dollars
Total (Census basis) 1161.4 -535.7 -468.3
North America 343.7 -95.0 -85.3
 Canada 209.1 -54.4 -48.2
 Mexico 134.6 -40.6 -37.1
Western Europe 246.0 -101.3 -88.9
 Euro Area 172.6 -75.4 -66.7
 European Union
 (EU-15) 225.8 -94.3 -82.1
 France 28.2 -12.2 -9.2
 Germany 62.5 -39.2 -35.9
 Italy 24.2 -14.9 -14.2
 Netherlands 9.8 9.7 8.5
 United Kingdom 40.7 -8.8 -7.5
 Other EU 28.2 -20.8 -17.5
EFTA (1) 0.5 -6.0 -0.3
Eastern Europe/FSR (2) 14.9 -11.2 -8.3
 Russia 6.9 -6.1 -4.5
Pacific Rim Countries 393.5 -230.0 -214.9
 Australia 6.5 6.7 6.6
 China 125.2 -124.0 -103.1
 Japan 121.4 -66.0 -70.0
 NICs (3) 91.8 -20.9 -22.1
Latin America 69.5 -26.8 -18.0
 Argentina 3.2 -0.7 -1.6
 Brazil 15.8 -6.7 -3.4
OPEC 53.2 -51.0 -34.4
Other Countries 65.3 -41.5 -36.4
 Egypt 1.4 1.5 1.5
 South Africa 4.0 -1.8 -1.5

 Change in exports, Change in imports,
 Jan.-Dec. 2002 over Jan.-Dec. 2003 over
Country/areas Jan.-Dec 2002 Jan.-Dec. 2002

 Percent
Total (Census basis) 4.5 8.5
North America 3.4 5.4
 Canada 5.5 7.2
 Mexico 0.0 2.6
Western Europe 5.0 8.2
 Euro Area 5.7 8.5
 European Union
 (EU-15) 4.8 8.4
 France -10.2 3.5
 Germany 8.3 8.9
 Italy 5.1 5.0
 Netherlands 13.1 11.4
 United Kingdom 2.1 4.7
 Other EU 7.9 14.9
EFTA (1) n.m. n.m.
Eastern Europe/FSR (2) 7.8 23.0
 Russia 2.2 25.2
Pacific Rim Countries 5.7 6.4
 Australia 0.1 -1.0
 China 28.4 21.7
 Japan 1.2 -2.8
 NICs (3) 2.8 0.8
Latin America 0.9 13.5
 Argentina 53.6 -0.6
 Brazil -9.4 13.3
OPEC -8.0 28.4
Other Countries 10.3 12.4
 Egypt -7.3 -15.6
 South Africa 11.7 15.0

(1) The European Free Trade Area (EFTA) includes Iceland, Liechtenstein,
Norway, and Switzerland.
(2) Former Soviet Republics (FSR).
(3) The newly industrializing countries (NICs) include Hong Kong, Korea,
Singapore, and Taiwan.
Note.--Country/area figures may not add to totals due to rounding.
Exports of certain grains, oilseeds, and satellites are excluded from
country/area exports but included in total export table. Also, some
countries are included in more than one area. Data are presented on a
Census Bureau basis. "N.m."=Not meaningful as a percentage change.
Source: Calculated from official data of the U.S. Department of
Commerce, Exhibits 14 and 14a, FT-900 release of Feb. 13, 2004, found at
Internet address http://www.bea.doc.gov/bea/newsrel/tradnewsrelease.htm.

Table 5 U.S. International transactions, quarters seasonally adjusted

Account 2002 2003:Q1 2003:Q2

 Million dollars
Current account
Exports of goods and services and income 1,229,649 297,074 307,616
 receipts
Exports of goods and services 974,107 236,442 243,696
Goods, balance of payments basis 681,874 165,298 171,421
Services 292,233 71,144 72,275
Transfers under U.S. military agency 11,943 2,785 2,751
 sales contracts
Travel 66,547 16,295 16,030
Passenger fares 17,046 4,224 4,279
Other transportation 29,166 7,102 7,075
Royalties and license fees 44,142 10,373 11,221
Other private services 122,594 30,170 30,720
U.S. Government miscellaneous services 795 195 199
Income receipts 255,542 60,632 63,920
Income receipts on U.S.-owned assets 252,379 59,821 63,140
 abroad
Direct investment receipts 142,933 32,058 34,874
Other private receipts 106,143 26,950 27,560
U.S. Government receipts 3,303 813 706
Compensation of employees 3,163 811 780

Imports of goods and services and income -1,651,657 -387,864 -416,962
 payments
Imports of goods and services -1,392,145 -326,499 -348,584
Goods, balance of payments basis -1,164,746 -271,331 -292,707
Services -227,399 -55,168 -55,877
Direct defense expenditures -19,245 -4,394 -4,668
Travel -58,044 -14,453 -14,252
Passenger fares -19,969 -4,874 -4,874
Other transportation -38,527 -8,891 -9,580
Royalties and license fees -19,258 -4,728 -4,902
Other private services -69,436 -17,087 -16,876
U.S. Government miscellaneous services -2,920 -741 -725

Income payments -259,512 -61,365 -68,378
Income payments on foreign-owned assets -251,108 -59,271 -66,246
 in the United States
Direct investment payments -49,458 -8,134 -13,464
Other private payments -127,735 -32,512 -33,773
U.S. Government payments -73,915 -18,625 -19,009
Compensation of employees -8,404 -2,094 -2,132

Unilateral current transfers, net -58,853 -15,938 -13,481
U.S. Government grants -17,097 -6,397 -3,287
U.S. Government pensions and other -5,125 -1,271 -1,279
 transfers
Private remittances and other transfers -36,631 -8,270 -8,915

Capital and financial account
Capital account
Capital account transactions, net -1,285 -277 -286
Financial account
U.S.-owned assets abroad, net (increase/ -178,985 -35,227 -128,567
 financial outflow (-))
U.S. official reserve assets, net -3,681 390 -1,843
Gold n.a. n.a. n.a.
Special drawing rights -475 -109 -107
Reserve position in the -2,632 652 -1,607
 International Monetary Fund
Foreign currencies -574 -153 -129
U.S. Government assets, other than -32 133 42
 official reserve assets, net
U.S. credits and other long-term assets -5,611 -853 -565
Repayments on U.S. credits and 5,684 994 566
 other long-term assets
U.S. foreign currency holdings and U.S. -105 -8 41
 short-term assets, net
U.S. private assets, net -175,272 -35,750 -126,766
Direct investment -137,836 -39,083 -35,459
Foreign securities 15,801 5,367 -5,843
U.S. claims on unaffiliated foreigners
 reported by:
U.S. nonbanking concerns -31,880 -1,886 -16,210
U.S. claims reported by U.S. banks, not -21,357 -148 -69,254
 included elsewhere

Foreign-owned assets in the United 706,983 146,813 221,242
 state, net (increase/financial
 inflow (+))
Foreign official assets in the United 94,860 6,106 47,552
 States, net
U.S. Government securities 73,521 6,257 21,706
U.S. Treasury securities 43,144 -1,039 15,138
Other 30,377 7,296 6,568
Other U.S. Government liabilities 137 -597 365
U.S. liabilities reported by U.S. banks, 17,594 -280 24,575
 not included elsewhere
Other foreign official assets 3,608 726 906
Other foreign assets in the United 612,123 140,707 173,690
 States, net
Direct investment 39,633 10,607 -456
U.S. Treasury securities 96,217 11,789 14,218
U.S. securities other than U.S. Treasury 291,492 74,461 104,187
 securities
U.S. currency 21,513 4,525 7,183
U.S. liabilities to unaffiliated
 foreigners reported by
U.S. nonbanking concerns 72,142 46,771 24,610
U.S. liabilities reported by U.S. banks, 91,126 -7,446 23,948
 not included elsewhere

Statistical discrepancy (sum of above -45,852 -4,581 30,438
 items with sign reversed)
Memoranda
Balance on goods -482,872 -106,033 -121,286
Balance on services 64,834 15,976 16,398
Balance on goods and services -418,038 -90,057 -104,888
Balance on income -3,970 -733 -4,458
Unilateral current transfers, net -58,853 -15,938 -13,481
Balance on current account -480,861 -106,728 -122,827

Account 2003:Q3 2003:Q4 2004:Q1

 Million dollars
 Current account
Exports of goods and services and income 313,939 311,015 310,278
 receipts
Exports of goods and services 247,815 246,151 247,377
Goods, balance of payments basis 174,315 170,840 173,346
Services 73,500 75,311 74,031
Transfers under U.S. military agency 3,418 2,989 2,827
 sales contracts
Travel 16,217 18,005 16,089
Passenger fares 4,288 4,255 3,736
Other transportation 7,307 7,682 7,837
Royalties and license fees 11,389 11,157 11,630
Other private services 30,681 31,022 31,710
U.S. Government miscellaneous services 200 201 202
Income receipts 66,124 64,864 62,901
Income receipts on U.S.-owned assets 65,339 64,077 62,094
 abroad
Direct investment receipts 37,264 38,735 37,508
Other private receipts 27,225 24,408 23,700
U.S. Government receipts 850 934 886
Compensation of employees 785 787 807

Imports of goods and services and income -422,666 -424,165 -431,716
 payments
Imports of goods and services -354,795 -362,267 -369,006
Goods, balance of payments basis -297,627 -303,081 -309,364
Services -57,168 -59,186 -59,642
Direct defense expenditures -4,990 -5,193 -5,674
Travel -14,314 -15,025 -14,168
Passenger fares -4,829 -5,392 -4,960
Other transportation -9,787 -10,271 -10,873
Royalties and license fees -5,036 -4,592 -4,698
Other private services -17,487 -17,984 -18,524
U.S. Government miscellaneous services -725 -729 -745

Income payments -67,871 -61,898 -62,710
Income payments on foreign-owned assets -65,820 -59,771 -60,527
 in the United States
Direct investment payments -15,350 -12,510 -15,431
Other private payments -31,802 -29,648 -28,245
U.S. Government payments -18,668 -17,613 -16,851
Compensation of employees -2,051 -2,127 -2,183

Unilateral current transfers, net -13,997 -15,436 -17,269
U.S. Government grants -3,075 -4,338 -5,813
U.S. Government pensions and other -1,282 -1,292 -1,320
 transfers
Private remittances and other transfers -9,640 -9,806 -10,136

Capital and financial account
Capital account
Capital account transactions, net -364 -358 -388
Financial account
U.S.-owned assets abroad, net (increase/ 29,712 -44,902 -101,331
 financial outflow (-))
U.S. official reserve assets, net -1,416 -812 83
Gold n.a. n.a. n.a.
Special drawing rights -132 -127 897
Reserve position in the -1,136 -541 -644
 International Monetary Fund
Foreign currencies -148 -144 -170
U.S. Government assets, other than -27 -180 -70
 official reserve assets, net
U.S. credits and other long-term assets -1,375 -2,818 -2,578
Repayments on U.S. credits and 1,452 2,672 2,472
 other long-term assets
U.S. foreign currency holdings and U.S. -104 -34 36
 short-term assets, net
U.S. private assets, net 31,155 -43,910 -101,344
Direct investment -31,623 -31,670 -34,405
Foreign securities 21,641 -5,364 -27,146
U.S. claims on unaffiliated foreigners
 reported by:
U.S. nonbanking concerns -11,862 -1,922 -11,998
U.S. claims reported by U.S. banks, not 52,999 -4,954 -27,795
 included elsewhere

Foreign-owned assets in the United 141,478 197,448 242,004
 state, net (increase/financial
 inflow (+))
Foreign official assets in the United 8,992 32,210 40,978
 States, net
U.S. Government securities 12,300 33,258 31,768
U.S. Treasury securities 1,415 27,630 22,288
Other 10,885 5,628 9,480
Other U.S. Government liabilities 464 -95 -437
U.S. liabilities reported by U.S. banks, -4,607 -2,094 8,321
 not included elsewhere
Other foreign official assets 835 1,141 1,326
Other foreign assets in the United 132,486 165,238 201,026
 States, net
Direct investment 14,199 15,281 34,386
U.S. Treasury securities 57,505 12,705 14,568
U.S. securities other than U.S. Treasury 45,880 66,964 55,574
 securities
U.S. currency 2,556 7,249 4,927
U.S. liabilities to unaffiliated
 foreigners reported by
U.S. nonbanking concerns -8,102 8,863 74,848
U.S. liabilities reported by U.S. banks, 20,448 54,176 16,723
 not included elsewhere

Statistical discrepancy (sum of above -48,102 -23,602 -1,578
 items with sign reversed)
Memoranda
Balance on goods -123,312 -132,241 -136,018
Balance on services 16,332 16,125 14,389
Balance on goods and services -106,980 -116,116 -121,629
Balance on income -1,747 2,966 191
Unilateral current transfers, net -13,997 -15,436 -17,269
Balance on current account -122,724 -128,586 -138,707

 Difference
 2003:Q2
Account 2004:Q2 2004:Q3 less:Q3

 Million dollars
Current account
Exports of goods and services and income 311,794 322,014 10,220
 receipts
Exports of goods and services 247,484 254,670 7,186
Goods, balance of payments basis 174,247 177,858 3,611
Services 73,237 76,812 3,575
Transfers under U.S. military agency 3,104 3,381 367
 sales contracts
Travel 14,543 16,569 2,026
Passenger fares 3,456 4,059 603
Other transportation 7,853 7,789 -64
Royalties and license fees 11,944 12,155 211
Other private services 32,225 32,656 431
U.S. Government miscellaneous services 202 203 1
Income receipts 64,310 67,344 3,034
Income receipts on U.S.-owned assets 63,496 66,524 3,028
 abroad
Direct investment receipts 39,635 42,400 2,765
Other private receipts 22,620 22,882 262
U.S. Government receipts 1,241 1,242 1
Compensation of employees 814 820 6

Imports of goods and services and income -434,248 -440,736 -6,488
 payments
Imports of goods and services -371,668 -375,987 -4,319
Goods, balance of payments basis -312,335 -314,090 -1,755
Services -59,333 -61,897 -2,564
Direct defense expenditures 6,121 -5,900 221
Travel -12,895 -14,464 -1,569
Passenger fares -4,720 -5,335 -615
Other transportation -11,249 -11,282 -33
Royalties and license fees -4,697 -4,874 -177
Other private services -18,902 -19,289 -387
U.S. Government miscellaneous services -749 -753 -4

Income payments -62,580 -64,749 -2,169
Income payments on foreign-owned assets -60,461 -62,705 -2,244
 in the United States
Direct investment payments -17,426 -18,419 -993
Other private payments -26,769 -27,960 -1,191
U.S. Government payments -16,266 -16,326 -60
Compensation of employees -2,119 -2,044 75

Unilateral current transfers, net -16,940 -16,319 621
U.S. Government grants -5,654 -5,309 345
U.S. Government pensions and other -1,335 -1,328 7
 transfers
Private remittances and other transfers -9,951 -9,682 269

Capital and financial account
Capital account
Capital account transactions, net -1,553 -795 758
Financial account
U.S.-owned assets abroad, net (increase/ -112,818 -4,891 107,927
 financial outflow (-))
U.S. official reserve assets, net -170 -611 -441
Gold n.a. n.a. n.a.
Special drawing rights -102 -97 5
Reserve position in the 86 -383 -469
 International Monetary Fund
Foreign currencies -154 -131 23
U.S. Government assets, other than 427 530 103
 official reserve assets, net
U.S. credits and other long-term assets -1,454 -1,515 -61
Repayments on U.S. credits and 1,955 2,027 72
 other long-term assets
U.S. foreign currency holdings and U.S. -74 18 92
 short-term assets, net
U.S. private assets, net -113,075 -4,810 108,265
Direct investment -29,863 -37,525 -7,662
Foreign securities 8,654 -28,826 -37,480
U.S. claims on unaffiliated foreigners
 reported by:
U.S. nonbanking concerns -19,101 22,206 41,307
U.S. claims reported by U.S. banks, not -72,765 39,335 112,100
 included elsewhere

Foreign-owned assets in the United 262,819 128,200 -134,619
 state, net (increase/financial
 inflow (+))
Foreign official assets in the United 57,000 43,895 -13,105
 States, net
U.S. Government securities 38,639 19,611 -19,028
U.S. Treasury securities 35,349 16,271 -19,078
Other 3,290 3,340 50
Other U.S. Government liabilities -16 -41 -25
U.S. liabilities reported by U.S. banks, 17,628 22,879 5,251
 not included elsewhere
Other foreign official assets 749 1,446 697
Other foreign assets in the United 205,819 84,305 -121,514
 States, net
Direct investment 749 1,446 697
U.S. Treasury securities 205,819 84,305 -121,514
U.S. securities other than U.S. Treasury 22,391 8,139 -14,252
 securities
U.S. currency 55,037 49,868 -5,169
U.S. liabilities to unaffiliated 85,964 9,626 -76,338
 foreigners reported by
U.S. nonbanking concerns 1,458 2,768 1,310
U.S. liabilities reported by U.S. banks, 4,147 6,772 2,625
 not included elsewhere

Statistical discrepancy (sum of above 36,822 7,132 -29,690
 items with sign reversed)
Memoranda -9,054 12,527 21,581
Balance on goods -138,08 -136,232 1,856
Balance on services 13,904 14,915 1,011
Balance on goods and services -124,184 -121,317 2,867
Balance on income 1,730 2,595 865
Unilateral current transfers, net -16,940 -16,319 621
Balance on current account -139,394 -135,041 4,353

Note.--"N.a." indicates not available.
Source: United States Department of Commerce, Bureau of Economic
Analysis, U.S. International Transactions: Third Quarter 2003, BEA
03-51, Dec. 16, 2003, found at Internet address
http://www.bea.doc.gov/bea/newsrel/transnewsrelease.htm, retrieved on
Feb. 1, 2004.