Recent developments.

Youssef, Michael

U.S. International Trade in Goods and Services

The U.S. Department of Commerce reported that seasonally adjusted exports of $97.5 billion, and imports of $149.0 billion in September 2004, resulted in a goods and services deficit of $51.6 billion, about $2.0 billion less than the $53.5 billion deficit in August 2004. September 2004 exports of $97.5 billion were about $0.8 billion more than August 2004 exports of $96.7 billion. (2) September 2004 imports of $149.0 billion were $1.2 billion less than August imports of $150.2 billion.

September 2004 merchandise exports increased by about $0.9 billion to $68.9 billion from August 2004 exports of $68.0 billion. Merchandise imports decreased by about $0.5 billion to $124.5 billion from August 2004 imports of $125.0 billion. The merchandise trade deficit decreased by about $1.4 billion in September 2004 to about $55.6 billion from about $57.0 billion in August 2004.

For services, exports decreased by about $0.2 billion to $28.5 billion in September 2004 from August 2004 exports of $28.7 billion. Imports of services decreased by about $0.7 billion to $24.5 billion in September. The services trade surplus in September increased by $0.6 billion to $4.0 billion from $3.4 billion in August 2004. Services exports decrease of about $0.2 billion from August to September was due to decreases in travel and other transportation (which includes freight and port services), which was partly offset by an increase in other private services (which includes items such as business, professional, and technical services, insurance services and financial services). Changes in other categories of services exports were small. Services imports decrease of $0.7 billion from August to September was accounted for by a decrease in royalties and license fees which had been boosted in August by payments for broadcast rights for the 2004 Summer Olympic Games. Changes in other categories of services imports were small.

Changes in merchandise exports from August to September 2004 reflected increases in food, feeds, and beverages ($0.6 billion); industrial supplies and materials ($0.5 billion); capital goods ($0.3 billion); and consumer goods ($0.3 billion). Decreases occurred in automotive vehicles, parts, and engines ($0.1 billion). The August to September 2004 changes in imports of goods reflected decreases in industrial supplies and materials ($0.7 billion); "other goods" statistical category ($0.3 billion); and in foods, feeds and beverages ($0.1 billion). Increases occurred in capital goods ($0.4 billion); and automotive vehicles, parts, and engines ($0.2 billion). Consumer goods were virtually unchanged.

In September 2004, exports of advanced technology products were around $17.3 billion and imports of the same were about $20.4 billion, resulting in a deficit of about $3.2 billion, about $1.3 billion less than the August 2004 deficit of $4.5 billion. Exports of these products in September 2004 of $17.3 billion were more than those recorded in August of $16.0 billion. But imports of advanced technology products of $20.4 billion in September 2004 were about the same as those of August 2004 imports.

The September 2004 trade data showed U.S. surpluses with the following countries (preceding month in parentheses): Australia, $0.6 billion ($0.6 billion in August); Hong Kong, $0.5 billion ($0.4 billion); Singapore, $0.3 billion ($0.6 billion); and Egypt, $0.1 billion ($0.1 billion). Deficits were recorded in September 2004 with China, $15.5 billion ($15.4 billion); Western Europe, $7.9 billion ($10.0 billion); the European Union (EU 25), $7.7 billion ($9.6 billion); OPEC member countries, $6.7 billion ($7.0 billion); Japan, $6.1 billion ($6.4 billion); Canada, $5.3 billion ($6.0 billion); Mexico, $3.8 billion ($3.7 billion); Korea, $2.1 billion ($1.5 billion); Taiwan, $1.1 billion ($1.5 billion); and Brazil, $0.9 billion ($0.6 billion).

During September 2003-September 2004, the change in exports of goods reflected increases in industrial supplies and materials ($3.3 billion); capital goods ($3.2 billion); consumer goods ($1.1 billion); automotive vehicles, parts, and engines ($0.9 billion); "other goods" statistical category ($0.4 billion); and foods, feeds, and beverages ($0.2 billion). The September 2003-September 2004 changes in imports of goods reflected increases in industrial supplies and materials ($9.8 billion); capital goods ($4.4 billion); consumer goods ($2.6 billion); automotive vehicles, parts, and engines ($1.9 billion); other goods statistical category ($0.2 billion); and foods, feeds, and beverages ($0.2 billion).

From September 2003 to September 2004, services exports increased by $2.5 billion. The largest increases were in travel ($0.8 billion); other private services which includes items such as business, professional, and technical services; insurance and financial services ($0.8 billion); and other transportation ($0.5 billion). From September 2003 to September 2004, services imports increased $2.8 billion, with the largest increases in other private services ($0.8 billion); other transportation ($0.8 billion); and travel ($0.7 billion).

The January-September 2004 trade data show surpluses with Belgium, $3.3 billion (for January-September 2003, $3.9 billion); the Netherlands, $8.9 billion ($6.6 billion); Hong Kong, $4.9 billion ($3.2 billion); Australia, $5.0 billion ($5.1 billion); Singapore, $3.8 billion ($1.2 billion); and Egypt, $1.4 billion ($1.0 billion). Deficits were recorded with Canada, $49.3 billion ($38.5 billion); Mexico, $33.4 billion ($31.0 billion); Western Europe, $82.7 billion ($72.1 billion); the euro area, $60.5 billion ($53.8 billion); European Union (EU 25), $79.9 billion ($70.6 billion); European Union (EU 15), $75.6 billion ($67.0 billion); France, $7.4 billion ($8.4 billion); Germany, $33.1 billion ($28.2 billion); Italy, $13.0 billion ($11.3 billion); United Kingdom, $7.0 billion ($5.9 billion); EFTA, $5.5 billion ($4.3 billion); Pacific Rim countries, $202.1 billion ($167.9 billion); China, $114.3 billion ($89.7 billion); Japan, $55.2 billion ($48.2 billion); Korea, $14.2 billion ($9.0 billion); Taiwan, $9.7 billion ($11.1 billion); and OPEC, $51.9 billion ($38.2 billion).

Additional information on U.S. trade developments in agriculture and specified manufacturing sectors during August 2004 is highlighted in table 1 and table 2, and figure 1 and figure 2. Services trade developments are highlighted in table 3. It should be noted that individual European countries shown here are also included in the euro area and in the European Union groupins. 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.

[FIGURE 2 OMITTED]

World Trade Developments in 2003

In April 2004, the World Trade Organization (WTO) announced that stronger-than-expected global economic growth, particularly in the United States and Asia, spurred a recovery in world trade during 2003. The following are highlights of the WTO press release. (3)

Improved economic conditions in the United States and Asia boosted world trade in 2003, with Asia and the transition economies recording the most dynamic trade expansion in 2003. The value of world merchandise trade rose by 16.0 percent to $7.3 trillion in 2003. World trade in services rose by 12.0 percent to $1.8 trillion. However, WTO estimated that more than two thirds of the rise in the nominal value of world merchandise trade was attributable to changes in the dollar price in terms of other major currencies.

According to the WTO, U.S. import growth exceeded the world average thus mitigating sluggish world trade growth over the last few years in the rest of the world. However, imports exceeding exports widened the U.S. trade deficit. U.S. merchandise imports rose by 9.0 percent while exports rose by 4.0 percent. In other countries and areas, imports in Western Europe rose by 18.0 percent, and exports rose by 17.0 percent. Asian merchandise exports and imports expanded by 17.0 percent and 19.0 percent respectively. China's imports expanded by 40.0 percent and exports expanded by 35.0 percent, showing unprecedented strength in Chinese economic expansion. Latin America's exports rose by 9.0 percent, sustained by a recovery in demand for primary products, particularly from Asia. Developing countries' merchandise exports expanded by 17.0 percent in 2003, slightly faster than their imports and the world average, which consequently widened their trade surpluses. Oil exporting countries recorded nominal export growth in excess of 20.0 percent (table 5).

The WTO estimated that commodity prices and exchange rate changes led to a 10.5 percent strengthening of world merchandise trade prices in 2003. For the first time since 1995, dollar prices increased for both agricultural and manufactured products. However the impact of price and exchange rate developments on nominal trade flows differed by region. As West European currencies appreciated against the dollar, the dollar merchandise export value of Western Europe expanded at a rate faster than world trade despite a near stagnation in volume terms.

WTO also noted that commercial services developments by region differed from merchandise trade by region due to the predominant role played by exchange rate movements. In merchandise trade, all regions recorded stronger nominal export and import growth in 2003 compared to 2002. In services trade, Asia's exports are estimated to have expanded at 6.0 percent in 2003, a lower rate than the 8.0 percent expansion in 2002. Western Europe recorded gains of 17.0 percent in their services exports and of 16.0 percent in their imports. The transition economies recorded annual gains of 19.0 percent in their services exports, and 21.0 percent in services imports. Increases in services exports from Asia increased only 6.0 percent annually; and Latin America's increased export of services was also limited to 6.0 percent. North America's surplus in services trade was reduced as exports expanded by 4.0 percent while imports expanded by more than 7.0 percent. The WTO estimated that developing countries exports and imports of commercial services expanded at only half the rate of world services trade (table 6).

The WTO ranking of leading merchandise exporters put Germany in first place, replacing the United States as the world's leading exporter. The elevation of Germany to first place was due mainly to the appreciation of the euro against the dollar, which boosted the dollar value of German exports to $748.4 billion-a share in total world merchandise exports of 10.0 percent and an increase of 22.0 percent over 2002. The United States ranked second with total exports of $724.0 billion, a world share of 9.7 percent, and an annual percentage increase of 4.0 percent over 2002. Japan ranked third with total exports of $471.9 billion, a world export share of 6.3 percent, and an increase of 13.0 percent over 2002. China, France, the United Kingdom, the Netherlands, Italy, Canada, and Belgium followed, ranking from fourth to tenth respectively.

According to the WTO ranking of world merchandise importers, the United States remained the leading importer with total imports from the world of $1305.6 billion, a share of 16.8 percent of total world imports, and a 9.0 percent increase over 2002. Germany ranked second with total imports of $601.7 billion, a world import share of 7.7 percent, and a 23.0 percent increase over 2002. China ranked third with total imports of $412.8 billion, a world import share of 5.3 percent, and an unprecedented rate of increase of 40.0 percent over 2002. France and the United Kingdom ranked fourth and fifth respectively, with total imports of about $388.4 billion for each, a world import share of 5.0 percent each, and an increase of 18.0 percent for France, and 12.0 percent for the United Kingdom over their respective shares in 2002. Japan ranked sixth with total imports of $383.0 billion, a world import share of 4.9 percent, and an increase of 14.0 percent over 2002 (table 7).

According to the WTO ranking of trade in commercial services in 2003, "gains were principally recorded by Western European countries and in countries with appreciating currencies, at the expense of American and Asian countries." (4) Ranking services exports, the WTO stated that "Japan, Canada, Singapore, and Chinese Taipei lost two positions while Belgium, Sweden, and Greece gained two positions; whereas among the leading importers, Japan, and Canada, lost one position." (5) The WTO also estimated that, "China has become the largest exporter of commercial services among the developing countries in 2003; and that China was already the largest developing country importer of services, and its imports of commercial services continued to exceed its exports in 2003." (6)

Table 8 shows the WTO ranking of leading exporters and importers in world trade in commercial services in 2003 in billion dollars, their share of world trade, and each's percentage change from 2002. The United States ranked first in exports of services with a value of $282.5 billion, a share of 16.0 percent of total world services exports, and 4.0-percent increase over 2002. In imports of services, the United States also ranked first, with total imports of $218.2 billion, a world share of 12.5 percent, and 6.0-percent increase over 2002. As a result of exports exceeding imports further in 2003, the U.S. balance on commercial services showed an increase in its services trade surplus. The United Kingdom ranked second to the United States in total services exports of $129.5 billion, a share of world services exports of 7.3 percent, and 5.0-percent increase over 2002, but ranked third after Germany, in total services imports of $112.4 billion, a world share of 6.4 percent, and an 11.0-percent increase over 2002. Germany ranked third in exports of services worth $111.7 billion, a world share of 6.3 percent-12.0 percent more than in 2002-but ranked second to the United States in terms of services imports of $167.0 billion, a world share of 9.6 percent, and an increase of 12.0 percent over 2002. Japan ranked seventh in terms of exports of $70.2 billion. a world share of 4.0 percent, and an 8.0-percent increase over 2002; but ranked fourth in terms of its imports of $109.7 billion, with a share of 6.3 percent of world services imports, and a 3.0-percent increase over its 2002 figure. France ranked fourth, followed by Spain, Italy, and the Netherlands in terms of exports, but ranked fifth in terms of imports followed by Italy, and the Netherlands. Canada ranked thirteenth in terms of exports of $39.2 billion, with a world share of 2.2 percent, and tenth in terms of imports of $47.8 billion, with a world share of 2.7 percent. China ranked ninth in terms of exports of $44.5 billion, a world share of 2.5 percent, but showed no change from 2002.

The WTO report also observed that major exchange rate developments in 2003 included the strengthening of the euro, other European currencies, and the yen against the U.S. dollar. These exchange rate changes might have been in the right direction but were of insufficient magnitude and scope to significantly reduce world trade imbalances. The WTO also noted that global foreign direct investment (FDI) flows remained almost flat at a 5-year low of around $600 billion. FDI flows to emerging markets decreased, but other capital flows to developing countries increased in 2003.

U.S. International Transactions, Second Quarter 2004

Current Account

The Bureau of Economic Analysis of the U.S. Department of Commerce reported that the U.S. current-account deficit-the combined balances on trade in goods and services, income, and net unilateral current transfers-increased to $166.2 billion in the second quarter of 2004 (preliminary) from $147.2 billion (revised) in the first quarter (table 9) The increase was more than accounted for by an increase in the deficit on goods and a decrease in the surplus on income. The surplus on services increased, and net outflows for unilateral current transfers decreased.

Goods and services

The deficit on goods and services increased to $150.3 billion in the second quarter from $138.6 billion in the first. The deficit on goods increased to $163.6 billion in the second quarter from $150.8 billion in the first quarter. Goods exports increased to $199.3 billion from $193.9 billion. The increase was mostly attributable to increases in industrial supplies and materials, in capital goods, and in consumer goods. Goods imports increased to $362.9 billion from $344.7 billion. The increase was mostly attributable to increases in industrial supplies and materials, in capital goods, and in consumer goods.

The surplus on services increased to $13.3 billion in the second quarter from $12.2 billion in the first. Services receipts increased to $85.0 billion from $82.2 billion. The largest increases were in travel and in "other" private services (such as business, professional, and technical services, insurance services, and financial services). Services payments increased to $71.7 billion from $70.0 billion. The largest increases were in travel and in "other" private services.

Income and investment income

The surplus on income decreased to $2.6 billion in the second quarter from $12.2 billion in the first. Income receipts on U.S.-owned assets abroad increased to $86.1 billion from $82.8 billion. The increase was more than accounted for by increases in "other" private receipts (which consists of interest and dividends) and in direct investment receipts. Income payments on foreign-owned assets in the United States increased to $82.0 billion from $69.2 billion. Direct investment payments, "other" private payments and U.S. Government payments all increased.

Compensation of employees

Receipts for compensation of U.S. workers abroad decreased slightly to $0.7 billion from $0.8 billion, and payments for compensation of foreign workers in the United States increased slightly to $2.3 billion from $2.2 billion.

Unilateral current transfers

Unilateral current transfers were net outflows of $18.5 billion in the second quarter, down from net outflows of $20.7 billion in the first. The decrease was attributable to a decrease in U.S. Government grants.

Capital and Financial Account

Capital account transactions were net outflows of $0.3 billion in the second quarter, down slightly from net outflows of $0.4 billion in the first. 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 $146.8 billion in the second quarter, up from $138.6 billion in the first. Financial outflows for U.S.-owned assets abroad decreased more than financial inflows for foreign-owned assets in the United States.

U.S.-owned assets abroad

U.S.-owned assets abroad increased $118.5 billion in the second quarter, following an increase of $306.7 billion in the first. U.S. claims on foreigners reported by U.S. banks increased $30.9 billion in the second quarter, following an increase of $187.1 billion in the first. Net U.S. purchases of foreign securities were $30.3 billion in the second quarter, up from $16.5 billion in the first. Net U.S. purchases of foreign stocks were $40.2 billion, up from $21.4 billion. Net U.S. sales of foreign bonds were $9.9 billion, up from $4.9 billion. Net financial outflows for U.S. direct investment abroad were $60.7 billion in the second quarter, up from $47.6 billion in the first. The increase was more than accounted for by an increase in net equity capital outflows. Reinvested earnings also increased slightly. A small increase in net intercompany debt inflows was partly offsetting. U.S. official reserve assets decreased $1.1 billion in the second quarter, following a decrease of $0.6 billion in the first.

Foreign-owned assets in the United States

Foreign-owned assets in the United States increased $265.2 billion in the second quarter, following an increase of $445.3 billion in the first. U.S. liabilities to foreigners reported by U.S. banks increased $30.9 billion in the second quarter, following an increase of $140.8 billion in the first. Net foreign purchases of U.S. Treasury securities were $35.6 billion in the second quarter, down from $65.4 billion in the first. Net foreign purchases of U.S. securities other than U.S. Treasury securities were $88.6 billion in the second quarter, up from $62.1 billion in the first. Net foreign purchases of U.S. stocks were $2.0 billion, down from $4.2 billion. Net foreign purchases of U.S. corporate bonds were $51.5 billion, up slightly from $51.2 billion. Net foreign purchases of federally sponsored agency bonds were $35.1 billion, up from $6.7 billion. Net financial inflows for foreign direct investment in the United States were $32.7 billion in the second quarter, up from $10.2 billion in the first. Increases in net equity capital inflows and in reinvested earnings more than offset a shift to net outflows on intercompany debt. Foreign official assets in the United States increased $73.9 billion in the second quarter, following an increase of $127.9 billion in the first. Net U.S. currency shipments to foreigners were $8.8 billion in the second quarter, a shift from net shipments from foreigners to U.S. residents of $1.8 billion in the first. The statistical discrepancy-errors and omissions in recorded transactions-was a positive $19.7 billion in the second quarter, compared with a positive $8.9 billion in the first. In the second quarter, the U.S. dollar appreciated 3 percent on a trade-weighted quarterly average basis against a group of 7 major currencies.

Revisions

The first-quarter international transactions are revised from previously published estimates. The current-account deficit was revised to $147.2 billion from $144.9 billion. The goods deficit was unrevised at $150.8 billion; the services surplus was revised to $12.2 billion from $13.8 billion; the surplus on income was revised to $12.2 billion from $12.7 billion; and unilateral current transfers were revised to net outflows of $20.7 billion from $20.6 billion. Net recorded financial inflows were revised to $138.6 billion from $158.3 billion.

U.S. International Transactions, the Year 2003

In 2003, the U.S. current account deficit-the combined balances on trade in goods and services, income, and net unilateral current transfers-increased to $541.8 billion from $480.9 billion in 2002. An increase in the deficit on goods in addition to an increase in net outflows for unilateral current transfers and a decrease in the surplus on services, all accounted for the deficit increase. In contrast, the balance on income shifted to a surplus in 2003 from a deficit in 2002.

Goods and Services

The deficit on goods and services increased to $490.2 billion in 2003 from $418.0 billion in 2002.

Goods

The deficit on goods increased to $549.4 billion in 2003 from $482.9 billion in 2002. Goods exports increased to $713.8 billion from $681.9 billion. Agricultural and nonagricultural products both increased. More than half of the increase in nonagricultural products was attributable to a rise in nonagricultural industrial supplies and materials. The next largest increase was in consumer goods. Goods imports increased to $1,263.2 billion from $1,164.7 billion. About one-third of the increase was attributable to an increase in petroleum and petroleum products. Nonpetroleum products also increased, particularly consumer goods and nonpetroleum industrial supplies and materials.

Services

The surplus on services decreased to S59.2 billion in 2003 from $64.8 billion in 2002. Services receipts increased to $304.9 billion from $292.2 billion. Increases in "other private services" (such as business, professional, technical, and financial services), in royalties and license fees, and in "other transportation" (such as freight and port services), were partly offset by decreases in travel and passenger fares. Services payments increased to $245.7 billion from $227.4 billion. The increase was due to increases in "other private services," in "other transportation," and in direct defense expenditures.

Income

The balance on income shifted to a surplus of $16.6 billion in 2003 from a deficit of $4.0 billion in 2002. Investment receipts on U.S.-owned assets abroad increased to $272.3 billion from $252.4 billion. The increase was due to an increase in direct investment receipts. In contrast, "other private receipts"-which consists of interest and dividends-decreased. Income payments on foreign-owned assets in the United States decreased to $250.4 billion from $251.1 billion. Decreases in "other private payments"-which consists of interest and dividends-and in U.S. Government payments were partly offset by an increase in direct investment payments.

Compensation of employees

Receipts for compensation of U.S. workers abroad increased slightly to $3.3 billion from $3.2 billion. Payments for compensation of foreign workers in the United States increased slightly to $8.5 billion from $8.4 billion in 2002.

Unilateral current transfers

Unilateral current transfers were net outflows of $68.3 billion in 2003, up from net outflows of $58.9 billion in 2002.

Capital and Financial Account

Capital account transactions were net outflows of $3.1 billion in 2003, up from net outflows of $1.3 billion in 2002. On the financial account, net recorded financial inflows-net acquisitions by foreign residents of assets in the United States less net acquisitions by residents of assets abroad-were $579.0 billion in 2003, up from $528.0 billion in 2002.

U.S.-owned assets abroad

U.S.-owned assets abroad increased by $277.7 billion in 2003, compared with an increase of $179.0 billion in 2002. U.S. claims on foreigners reported by U.S. banks increased by $24.7 billion in 2003, compared with an increase of $21.4 billion in 2002. Transactions in foreign securities shifted to net U.S. purchases of $64.1 billion in 2003 from net U.S. sales of $15.8 billion in 2002. Net U.S. purchases of foreign stocks were $91.3 billion, up from $17.7 billion. Net U.S. sales of foreign bonds were $27.2 billion, down from $33.5 billion.

Net financial outflows for U.S. direct investment abroad were $154.8 billion in 2003, up from $137.8 billion in 2002. Increases in reinvested earnings and in net equity capital outflows more than offset a decrease in net inter-company debt outflows. U.S. official reserve assets decreased by $1.5 billion in 2003, following an increase of $3.7 billion in 2002.

Foreign-owned assets in the United States

Foreign-owned assets in the United States increased by $856.7 billion in 2003, compared with an increase of $707.0 billion in 2002. U.S. liabilities to foreigners reported by U.S. banks increased by $94.5 billion in 2003, following an increase of $91.1 billion in 2002.

Net foreign purchases of U.S. securities other than U.S. Treasury securities were $238.7 billion in 2003, down from $291.5 billion in 2002. Net foreign purchases of U.S. stocks were $37.2 billion, down from $55.2 billion. Net foreign purchases of U.S. corporate bonds were $249.5 billion, up from $160.0 billion. Transactions in federally sponsored agency bonds shifted to net foreign sales of $48.1 billion from net purchases of $76.3 billion. Net foreign purchases of U.S. Treasury securities were $139.9 billion in 2003, up from $96.2 billion in 2002.

Net financial inflows for foreign direct investment in the United States were $82.0 billion in 2003, up from $39.6 billion in 2002. An increase in reinvested earnings and a decrease in net inter-company debt outflows more than offset a decrease in net equity capital inflows. Foreign official assets in the United States increased by $207.7 billion in 2003, following an increase of $94.9 billion in 2002.

Net U.S. currency shipments to foreign countries were $16.6 billion in 2003, down from $21.5 billion in 2002. The statistical discrepancy-errors and omissions in recorded transactions-was a negative $34.1 billion in 2003, compared with a negative $45.9 billion in 2002.

In 2003, the U.S. dollar depreciated by 12.0 percent on a trade-weighted yearly average basis against the G-7 countries currencies. The Group of Seven (G-7) countries, other than the United States, are Japan, Canada, Germany, the United Kingdom, France, and Italy.

U.S. International Investment Position in 2003

In 2003, the U.S. net international investment position was in the negative, as foreign-owned assets in the United States exceeded U.S.-owned assets abroad, according to the U.S. Department of Commerce, Bureau of Economic Analysis (BEA). (7)

With direct investment measured at current cost, foreign-owned assets in the United States increased to $9,633.4 billion in 2003 from $8,646.6 billion in 2002, and U.S.-owned assets abroad increased to $7,202.7 billion in 2003, from $6,413.5 billion in 2002, resulting in a negative position for the United States of $2,430.7 billion in 2003, -$197.7 billion higher than the $2,233.0 negative position in 2002. The -$197.7 billion change from 2002 to 2003 resulted from large net foreign purchases of U.S. securities, which increased the value of foreign-owned assets in the United States by $545.8 billion. This increase was partly offset by a substantial rise in the dollar value of U.S.-owned assets abroad, especially of U.S. held stocks as a result of the appreciation of most foreign currencies against the U.S. dollar by $255.5 billion.

Valuing direct investment at market value, foreign-owned assets in the United States increased to $10,515.0 billion in 2003 from $9,166.7 billion in 2002. U.S. direct investment abroad increased to $7,864.0 billion in 2003 from $6,613.3 billion in 2002. This resulted in a negative position of -$2,651.0 billion, -$97.6 billion greater than the negative position of -$2,553.4 billion in 2002. (8)

Changes in U.S.-Owned Assets Abroad

Table 10 details the sources of change in U.S. assets abroad and foreign-owned assets in the United States in 2003. Valuing direct investment position on a current cost basis, the increase in U.S. assets abroad to $7,202.7 billion in 2003 from $6,413.5 billion in 2002 was due to the following changes: (a) financial flows which increased U.S. direct investment position by $283.4 billion; (b) price changes which increased the U.S. position by $355.7 billion; (c) exchange rate changes which increased U.S. position by $327.5 billion; and (d) other changes which decreased the U.S. position by $177.5 billion. These changes resulted in a net increase of $789.2 billion.

Valuing the U.S. direct investment position on a market value basis, the increase in U.S. assets abroad to $7,864.0 billion in 2003 from $6,613.3 billion in 2002 was due to the following changes: (a) financial flows which increased the U.S. position by $283.4 billion; (b) price changes which reduced the U.S. position by $676.7 billion; (c) exchange rates changes which increased the U.S. position by $468.7 billion; and (d) other changes which reduced the U.S. position by $178.1 billion. These changes resulted in a net increase of $1,250.7 billion.

Changes in Foreign-Owned Assets in the United States

As table 10 shows, with direct investment on a current cost basis, the increase in foreign assets in the United States to $9,633.4 billion in 2003 from $8,646.6 billion in 2002 was due to the following changes: (a) financial flows which increased the foreign position by $829.2 billion; (b) price changes which increased the foreign position by $318.6 billion; (c) exchange rate changes which increased the foreign position by $72.1 billion; and (d) other changes which decreased the foreign position by $233.0 billion. These changes resulted in a total net increase of $986.8 billion.

With direct investment valued at market value, the increase in the foreign investment position in the United States to $10,515.0 billion in 2003 from $9,166.7 billion in 2002 was due to the following changes: (a) financial flows which increased the foreign position by $829.2 billion; (b) price changes which increased the foreign position by $690.4 billion; (c) exchange rate changes which increased the foreign position by $70.8 billion; and (d) other changes which decreased the foreign position by $242.1 billion. These changes resulted in a total net decrease of $1,348.2 billion.

Direct Investment Positions Country and Industry Detail

Country and industry detail on the positions of U.S. direct investment abroad (USDIA) and of foreign investment in the United States (FDIUS) is estimated by the BEA on a historical cost basis only. Historical cost estimates largely reflect price levels of earlier times. Because the historical cost estimates are not ordinarily adjusted to reflect changes in the current costs of tangible assets or in the stock market prices of firms, the historical cost estimates are usually lower than estimates based on current cost value or market value estimates. (See footnote 8 for explanation of valuation methods). Table 11 shows the BEA alternative direct investment position estimates, 2002 and 2003, in billions of dollars.

Table 12 details U.S. direct investment position abroad on a historical cost basis in 2003 by country and industry. (9) On a historical cost basis, the USDIA position in 2003 totaled $1,788.9 billion (with the 2002 total following in parentheses) ($1,601.4 billion), an increase of 11.7 percent over 2002. By country and area, the value of USDIA position in 2003 was highest in Europe, $963.1 billion ($848.6 billion in 2002); followed by Latin America and the Western Hemisphere, $304.0 billion ($284.6 billion); Asia and the Pacific, $293.5 billion ($267.1 billion); Canada, $192.4 billion ($170.2 billion); Africa, $19.0 billion ($16.3 billion); and the Middle East, $16.9 billion, ($14.7 billion). The USDIA position in Eastern Europe in 2003 was $20.5 billion ($18.2 billion in 2002). In the European Union (EU-15), the USDIA position was $844.7 billion ($749.7 billion); and in OPEC, $36.6 billion ($33.6 billion). The highest USDIA positions in Europe were that of the United Kingdom, $272.6 ($239.2 billion in 2002); the Netherlands, $178.9 billion ($164.2 billion); Switzerland, $86.4 billion ($71.5 billion); Germany, $80.2 billion ($67.4 billion); and France $47.9 billion ($43.0 billion).

By industry, the USDIA position was highest in the "other industries" grouping, $693.1 billion ($630.5 billion in 2002); followed by manufacturing, $378.0 billion ($339.4 billion); finance except depository institutions and insurance, $299.8 billion ($264.7 billion); wholesale trade, $140.6 billion ($124.7 billion); mining, $98.7 billion ($86.6 billion); depository institutions, $63.7 billion ($56.6 billion); information, $47.5 billion ($39.8 billion); professional, scientific, and technical services, $40.6 billion ($34.9 billion); and utilities, $26.9 billion ($24.3 billion). Within manufacturing, the USDIA position was highest in chemicals, $90.3 billion ($81.5 billion); followed by computer and electronic products, $57.6 billion ($53.6 billion); transportation equipment, $45.4 billion ($44.8 billion); primary and fabricated metals, $23.0 billion ($21.9 billion); food, $22.7 billion ($18.3 billion); and machinery, $21.4 billion ($18.6 billion).

Table 13 shows the foreign direct investment position in the United States (FDIUS) valued at historical cost-the book value of U.S. direct investors' equity in, and net outstanding loans to, their foreign affiliates. At yearend 2003, the FDIUS position was $1,378.0 billion compared to a value of $1,340.0 billion in 2002. By area, the largest FDIUS in 2003 was that of Europe at $1,000.5 billion ($982.1 billion in (2002); followed by the European Union (EU-15), $855.7 billion ($832.6 billion); Asia and Pacific, $192.5 billion ($183.4 billion); Canada, $105.3 billion ($96.4 billion); Latin America and other Western Hemisphere, $69.6 billion ($68.4 billion); Middle East, $7.9 billion ($7.5 billion); and Africa, $2.2 billion ($2.3 billion). Europe's highest FDIUS positions in 2003 were that of the United Kingdom at $230.4 billion ($218.2 billion in 2002); Germany, $148.8 billion ($139.6 billion); the Netherlands, $146.1 billion ($153.7 billion); France, $143.3 billion, ($141.4 billion); and Switzerland, $112.9 billion ($119.3 billion). For Asia and Pacific, the highest positions for FDIUS were those of Japan at $159.3 billion ($150.5 billion), and Australia at $24.7 billion ($23.1 billion).

By industry, FDIUS in 2003 was highest in manufacturing, $475.5 billion ($468.5 billion); followed by the "other industries" category, $227.5 billion ($219.2 billion); finance except depository institutions and insurance, $185.7 billion ($169.0 billion); wholesale trade, $182.2 billion ($195.9 billion); information, $120.1 billion ($117.7 billion); depository institutions, $87.5 billion ($76.8 billion); real estate, rental, and leasing, $47.0 billion ($43.5 billion); professional, scientific, and technical services $28.4 billion ($27.6 billion); and retail trade, $24.2 billion ($22.0 billion). Within manufacturing, FDIUS was highest in chemicals, $123.2 billion ($121.6 billion); followed by transportation equipment, $63.7 billion ($62.6 billion); computer and electronic products, $45.9 billion ($43.1 billion); electrical equipment, appliances, and components, $42.3 billion ($46.1 billion); and machinery, $37.7 billion ($41.4 billion).

U.S. Multinational Companies Production, Sales and Employment

The impact of multinational companies (MNCs) on U.S. production and employment has been a subject of extensive discussion. Data on patterns of production and on employment by MNCs for the years 1988-2002 released by the U.S. Department of Commerce, Bureau of Economic Analysis show that MNCs accounted for a large share of U.S. output, a large share of U.S. international trade, and a large share of U.S. employment.

MNCs comprise U.S. parent companies and majority owned foreign affiliates (MOFAs). The BEA defines a U.S. parent firm as a person, entity, branch, partnership, associated group, estate, trust, corporation or other organization that owns or controls 10 percent or more of the voting securities, or the equivalent of a foreign business enterprise. If incorporated, a U.S. parent company comprises the domestic operations of a U.S. MNC in the 50 States, the District of Colombia, the Commonwealth of Puerto Rico, and all other U.S. territories. A MOFA is a foreign affiliate in which the combined ownership of all its U.S. parent firms exceeds 50 percent. Employment is defined as full-time and part-time employees on the payroll at yearend, whose numbers reflected normal operations; or a yearly average if the employment figures were affected by temporary factors such as strikes, or large seasonal variations. (10)

U.S. MNCs account for a large share of the U.S. economy. In 2001, U.S. parent firms of U.S. MNCs accounted for about three-fourths of the total gross product, capital expenditures, and employment of MNCs, and their MOFAs accounted for about a fourth, of their combined gross output of $2,535.6 billion, capital expenditures of $528.6 billion, and employment of 31.6 million. This amounted to approximately 77 percent of the total production of MNCs, 79 percent of total capital expenditures, and 74 percent of total employment in the United States. The BEA measures MNCs value-added in production or gross product as gross output minus intermediate goods or, alternatively, as the sum of costs incurred except for intermediate inputs plus the profits earned in production. Capital expenditure is defined as expenditures made to acquire, add to, or improve property, or plant and equipment be it land, timber, mineral, structures, machinery, tangible or intangible exploration and development costs, but not costs of mergers and acquisitions or divestitures, or expenditures resulting from changes in accounting methods. (11) The BEA estimated that in 2001, the value-added in production originating in nonbank U.S. parent companies totaling more than $2.5 trillion, amounted to nearly a quarter of the current dollar gross domestic product originating in the private sector.

U.S. MNCs also play a big role in U.S. international trade in goods. The BEA estimated that in 2001 U.S. exports of goods that involved U.S. parent companies or their MOFAs totaled $425.4 billion, or 58 percent of total U.S. exports of goods. U.S. imports of goods that were associated with U.S. MNCs totaled $432.9 billion, or 38 percent of total U.S. imports of goods.

In 2002, total employment by MOFAs of U.S. MNCs in high wage countries accounted for 62 percent of total employment of foreign affiliates. This implies that access to markets has been a key factor in locating operations abroad. Sales by MOFAs to local customers in 2001, amounted to 65 percent of affiliates' total sales and 11 percent of affiliates sales were to customers in the United States.12

The BEA estimates that U.S. MNCs employed 30.6 million workers worldwide in 2002, of which 22.4 million were employed in the United States by U.S. parent companies, and 8.2 million were employed abroad by MOFAs. The employment of U.S. parent firms accounted for about one-fifth of total U.S. employment in private industries. MOFAs. employed 8.2 million workers in 2002, accounting for 5.0 percent of total U.S. employment in private industries. For both U.S. MNCs and the U.S. MOFAs, employment decreased for the second consecutive year in 2002 (table 14).

Employment by U.S. MNCs decreased by 1.5 percent in 2002, following a 3.0-percent decrease in 2001. U.S. parent companies more than accounted for the decreases in both years-their employment decreased by 2.2 percent in 2002, following a 4.1-percent decrease in 2001. Employment by MOFAs increased 0.6 percent in 2002, following a 0.1-percent increase in 2001. The changes in U.S. parent companies' and U.S. affiliates' employment reflected decreases in total U.S. employment in private industries, which decreased 1.3 percent in 2002 following a slight decrease in 2001.

Newly acquired or established MOFAs concentrated in large and affluent markets such as the European Union, mostly selling their products in local markets where they were located. Access to these markets proves to be a more significant factor than low cost tabor or other productive factors. However, MOFAs almost doubled their gross product in Eastern Europe particularly after the 1989 fall of the Berlin Wall and the opening to investments from Western countries. Some of the factors that encouraged foreign direct investment in the region were abundance of low cost and skilled labor, natural resources, and the proximity to affluent markets in Western Europe.

Although employment by foreign affiliates remains concentrated in high wage countries, employment has also grown faster in low wage countries in recent years. In 1991-2001, foreign affiliates employment grew at an annual rate of 7 percent in low wage countries, while it grew at a rate of 3 percent in high wage countries. This pattern reflects factors such as cost considerations, the developments of new markets, and the liberalization of policies toward foreign investment in a number of major developing countries.

However the forces of globalization that have resulted in increased foreign employment by U.S. MNCs have also resulted in growth in employment in the United States by foreign MNCs. During 1977-2001, employment by majority owned U.S. affiliates of foreign companies grew by 4.7 million.

Possible causes of a change in the domestic share of U.S. MNC employment are (a) different rates of economic growth on the United States and abroad; (b) different rates of productivity growth in U.S. parent firms and foreign affiliates; (c) new market opportunities abroad that cannot be served by U.S. exports; (d) changes in foreign government policies toward direct investment; (e) U.S. parent company outsourcing of an activity to a domestic company that is also a U.S. parent company; and (f) U.S. parent outsourcing of an activity to an unaffiliated or affiliated foreign company.

The BEA asserts that data on the operations of U.S. MNCs indicate a relatively stable mix of domestic and foreign operations, but the inferences that can be drawn from these data about the production strategies of MNCs and about the ultimate effects of U.S. MNCs activities on the U.S. economy and on foreign economies are limited.

(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," September 2004, BEA-04-50, FT-900 (04-09), Nov. 11, 2004, found at Internet address http://www.bea.doc.govlbealrcewsrelltradnewsrelease.htn2, retrieved on Nov. 11, 2004.

(3) WTO, "World Trade 2003, Prospects for 2004--Stronger than expected growth spurs modest trade recovery," press release 373, Apr. 5, 2004.

(4) WTO, "World Trade 2003, Prospects for 2004--Stronger than expected growth spurs modest trade recovery," press release 373, Apr. 5, 2004.

(5) Ibid.

(6) Ibid.

(7) Patricia E. Abaroa, "The International Investment Position of the United States at Yearend 2003," Survey of Current Business, July 2004, vol. 84, No. 7, pp. 30-39, found at Internet address http://www.bea.gov/bea/ARTICLES/2004/07July/0704_IIP.pdf, retrieved on Aug. 2, 2004.

(8) The two measures of valuing direct investment positions introduced by the BEA are the current-cost method and the market-value method. The current-cost method values the U.S. and foreign parents' share of their affiliates investment in plant and equipment, using the current cost of capital equipment; in land, using general price indexes; and in inventories, using estimates of their replacement cost. The market value method values the owner's equity share of direct investment using indexes of stock market prices. The BEA emphasizes the current cost method because the estimates prepared using the current account method are comparable with BEAs current-cost estimates of total U.S. reproducible tangible wealth and the Federal Reserve Board's estimates of domestic net worth (the sum of tangible assets located in the United States, including plant and equipment, inventories, and land).

(9) Maria Borga and Daniel R. Yorgason, "Direct Investment Positions for 2003: Country and Industry Detail," Survey of Current Business, July 2004, found at Internet address http://wwwbea.gov/bea.PDF, retrieved on Aug. 2, 2004.

(10) Data in this article was taken largely from information released in Raymond J. Mataloni, Jr., "U.S. Multinational Companies: Operations in 2001," Survey of Current Bossiness, November 2003, vol. 83, No. 11, pp. 85-105, found at Internet address on http://www.bea.gov/bea/ARTICLES/2003/11November/1103multinational.pdf, retrieved on Aug. 2, 2004; and Brian C. Moyer, Mark A. Planting, Mahnaz Fahim-Nader, and Sherlene K. S. Lum, "A Note on Patterns of Production and Employment by U.S. Multinational Companies," Survey of Current Business, March 2004, vol. 84, No. 3, pp. 38-51, found at Internet address http://www.bea.gov/bea/ARTICLES/2004/03March/0304IndustryAcctsV3.pdf, retrieved on Aug. 2, 2004.

(11) Ibid.

(12) Ibid.

Michael Youssef (1)

myoussef@usitc.gov

202-205-3269

Figure 1
U.S. trade by major commodity, September 2004
Billion dollars

 Manufactures Agriculture Petroleum

Exports 53.2 4.6 1.5
Imports 101.9 4.1 17.6
Trade balance -48.7 0.5 -16.1

Source: Calculated from official data of the U.S. Department
of Commerce, Exhibit 15, FT-900 release of Nov. 10, 2004.

Note: Table made from bar graph.

Table 1
U.S. trade in goods and services, seasonally adjusted, August 2004
to September 2004

 Exports
Item September August September
 2004 2004 2004

 Billion dollars

Trade in goodsl (see note)
 Including oil 68.9 68.0 124.5
 Excluding oil 68.8 67.2 109.0
Trade in services (1) 28.5 28.7 24.5
Trade in goods and services (1) 97.5 96.3 149.0
Trade in goods (2) 69.2 68.1 122.4
 Advanced technology products (3) 17.3 16.0 20.4

 Trade
 Imports balance
Item August September August
 2004 2004 2004

 Billion dollars

Trade in goodsl (see note)
 Including oil 125.0 -55.6 -57.0
 Excluding oil 108.7 -40.1 -41.5
Trade in services (1) 25.3 4.0 3.4
Trade in goods and services (1) 150.2 -51.6 -53.5
Trade in goods (2) 123.6 -53.2 -55.5
 Advanced technology products (3) 20.4 -3.2 -4.5

(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 Nov. 10, 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 2003 to September 2004

 Exports

 Sept. Jan.-Sept. Jan.-Sept.
Manufacture sector 2004 2004 2003

 Billion dollars

ADP equipment & office
 machinery 2.4 20.6 21.0
Airplane parts 1.3 11.2 10.9
Airplanes 2.0 18.6 17.7
Chemicals--inorganic 0.5 4.5 4.3
Chemicals--organic 2.4 18.4 14.8
Electrical machinery 6.1 55.0 51.4
General industrial machinery 3.0 25.8 22.4
Iron & steel mill products 0.7 5.7 4.7
Power-generating machinery 3.2 26.3 23.2
Scientific instruments 2.8 24.5 20.5
Specialized industrial machinery 2.3 21.3 17.5
Televisions, VCRs, etc. 1.7 14.6 12.1
Textile yarn and fabric 1.0 8.6 7.9
Vehicles 5.5 48.1 44.9
Other manufactures, not included
above 18.3 158.1 138.3
Manufactures 53.2 461.4 411.6
Agriculture 4.6 44.0 41.2
Other goods, not included
above 12.0 98.6 78.1
Total (Census basis) 69.7 603.9 530.9

 Imports

 Sept. Jan.-Sept. Jan.-Sept.
Manufacture sector 2004 2004 2003

 Billion dollars

ADP equipment & office
 machinery 8.2 68.0 58.2
Airplane parts 0.4 3.6 3.4
Airplanes 1.0 8.1 8.7
Chemicals--inorganic 0.7 5.8 5.5
Chemicals--organic 2.5 27.0 24.6
Electrical machinery 8.3 69.1 60.3
General industrial machinery 3.6 34.0 28.9
Iron & steel mill products 2.4 15.5 8.4
Power-generating machinery 3.0 26.5 24.0
Scientific instruments 2.4 20.9 17.2
Specialized industrial machinery 2.0 19.4 15.4
Televisions, VCRs, etc. 7.9 61.6 49.0
Textile yarn and fabric 1.6 14.6 12.9
Vehicles 15.4 138.2 125.1
Other manufactures, not included
above 42.5 349.4 310.9
Manufactures 101.9 861.7 752.5
Agriculture 4.1 40.2 34.8
Other goods, not included
above 20.7 171.5 137.3
Total (Census basis) 126.7 1,073.4 924.6

 Trade balance

 Jan.-Sept. Jan.-Sept.
Manufacture sector 2004 2003

 Billion dollars

ADP equipment & office
 machinery 47.4 -37.3
Airplane parts 7.6 7.5
Airplanes 10.5 9.0
Chemicals--inorganic -1.3 -1.2
Chemicals--organic -8.6 -9.9
Electrical machinery -14.1 -8.9
General industrial machinery -8.3 -6.9
Iron & steel mill products -9.7 -3.7
Power-generating machinery -0.2 -0.8
Scientific instruments 3.7 3.8
Specialized industrial machinery 1.8 2.1
Televisions, VCRs, etc. -47.1 -36.8
Textile yarn and fabric -6.0 -5.0
Vehicles -90.1 -80.2
Other manufactures, not included
above -191.2 -172.6
Manufactures -400.3 -340.9
Agriculture 3.7 6.4
Other goods, not included
above -72.9 -59.2
Total (Census basis) -469.5 -393.7

 Change in
 Change in trade
 exports, balance,
 Jan.-Sept. Jan.-Sept.
 2004 over 2004 over
 Jan.-Sept. Jan.-Sept.
Manufacture sector 2003 2003

 Percent

ADP equipment & office
 machinery -1.8 27.2
Airplane parts 2.7 0.9
Airplanes 5.5 17.1
Chemicals--inorganic 4.1 13.4
Chemicals--organic 24.7 -13.2
Electrical machinery 7.2 57.2
General industrial machinery 14.9 28.2
Iron & steel mill products 21.3 165.8
Power-generating machinery 13.1 -75.9
Scientific instruments 19.8 13.0
Specialized industrial machinery 21.3 -12.8
Televisions, VCRs, etc. 20.0 27.8
Textile yarn and fabric 10.0 19.1
Vehicles 71.8 12.3
Other manufactures, not included
above 14.3 10.8
Manufactures 12.1 17.4
Agriculture 6.6 -41.4
Other goods, not included
above 26.1 23.2
Total (Census basis) 13.7 19.3

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 Nov. 10, 2004, found at
Internet address http://www.bea.doc.govlbealnewsrelltradnews
release.htm.

Table 3
Nominal U.S. exports, imports, and trade balances of services, by
sectors, January 2003 to September 2004, seasonally adjusted

 Exports

Service sector Jan.-Sept. Jan.-Sept.
 2004 2003

 Billion dollars

Travel 56.1 46.4
Passenger fares 13.8 11.4
Other transportation services 27.9 23.3
Royalties and license fees 37.6 35.7
Other private sales 106.2 99.3
Transfers under U.S. military sales contracts 10.7 9.1
U.S. Government miscellaneous services 0.6 0.6
 Total 252.8 225.9

 Imports

Service sector Jan.-Sept. Jan.-Sept.
 2004 2003

 Billion dollars

Travel 48.3 41.5
Passenger fares 17.3 15.4
Other transportation services 39.4 33.2
Royalties and license fees 17.1 14.7
Other private sales 70.5 63.4
Transfers under U.S. military sales contracts 20.8 18.3
U.S. Government miscellaneous services 2.4 2.2
 Total 215.7 188.8

 Trade balance

Service sector Jan.-Sept. Jan.-Sept.
 2004 2003

 Billion dollars

Travel 7.8 4.9
Passenger fares -3.5 -4.0
Other transportation services -11.6 -9.9
Royalties and license fees 20.6 21.0
Other private sales 35.7 35.9
Transfers under U.S. military sales contracts -10.1 -9.2
U.S. Government miscellaneous services -1.8 -1.6
 Total 37.1 37.1

 Change in Change in
 exports imports
 Jan.-Sept. Jan.-Sept.
 2004 over 2004 over
Service sector Jan.-Sept. Jan.-Sept.
 2003 2003

 Percent

Travel 20.8 16.3
Passenger fares 21.0 12.3
Other transportation services 19.6 18.7
Royalties and license fees 5.3 15.7
Other private sales 6.9 11.2
Transfers under U.S. military sales contracts 17.1 13.4
U.S. Government miscellaneous services -7.1 5.6
 Total 114.0 14.2

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 Nov. 10, 2004, found at
Internet address http://www.bea.doc.gov/bea/newsrel/tradnews
release.htm.

Table 4
U.S. exports and imports of goods with major trading partners,
January 2003-September 2004

 Exports

 Sept. Jan.-Sept. Jan.-Sept.
Country/areas 2004 2004 2003

 Billion dollars

Total (Census basis) 69.7 603.9 530.9
North America 26.3 221.8 196.9
 Canada 16.6 140.4 125.9
 Mexico 9.7 81.4 71.0
European Union (EU-25) 14.2 127.3 114.2
Western Europe 15.2 135.4 122.5
 Euro Area 10.6 93.3 82.9
 European Union (EU-15) 14.0 124.2 111.8
 France 1.8 15.3 12.7
 Germany 2.8 23.2 21.3
 Italy 0.9 7.8 7.5
 Netherlands 2.1 17.8 14.7
 United Kingdom 2.9 26.8 25.4
 Other EU 1.0 10.7 9.5
EFTA (1) 0.9 8.1 7.8
Eastern Europe/FSR (2) 0.0 6.5 4.8
 Russia 0.3 2.1 1.8
Pacific Rim Countries 17.7 156.2 136.8
 Australia 0.0 10.4 9.8
 China 2.9 25.5 19.0
 Japan 4.5 40.4 38.7
 NICs (3) 7.3 62.6 52.3
Latin America 5.0 45.0 38.0
 Argentina 0.3 2.5 1.7
 Brazil 1.1 10.4 8.1
OPEC 2.0 15.6 12.7
Other Countries 3.5 28.5 22.9
 Egypt 0.3 2.3 1.9
 South Africa 0.3 2.2 1.9

 Imports

 Sept. Jan.-Sept. Jan.-Sept.
Country/areas 2004 2004 2003

 Billion dollars

Total (Census basis) 126.7 1073.4 924.6
North America 35.4 304.5 266.4
 Canada 21.9 189.7 164.5
 Mexico 13.5 114.8 102.0
European Union (EU-25) 21.9 207.2 184.8
Western Europe 23.0 218.1 194.6
 Euro Area 16.4 158.3 136.7
 European Union (EU-15) 21.2 199.9 178.8
 France 2.7 22.7 21.2
 Germany 6.0 56.3 49.5
 Italy 2.2 20.8 18.8
 Netherlands 1.0 8.9 8.2
 United Kingdom 3.5 33.8 31.4
 Other EU 2.5 26.4 23.6
EFTA (1) 1.3 13.6 12.0
Eastern Europe/FSR (2) 2.0 17.0 14.2
 Russia 1.0 7.9 7.0
Pacific Rim Countries 44.2 358.3 304.7
 Australia 0.6 5.4 4.7
 China 18.4 139.9 108.6
 Japan 10.6 95.6 86.8
 NICs (3) 9.8 77.9 67.9
Latin America 8.9 71.3 58.0
 Argentina 0.3 2.8 2.4
 Brazil 2.1 15.2 13.3
OPEC 8.7 67.5 50.8
Other Countries 7.7 62.8 55.2
 Egypt 0.1 0.9 0.9
 South Africa 0.4 4.3 3.3

 Trade balance

 Jan.-July Jan.-Sept.
Country/areas 2004 2003

 Billion dollars

Total (Census basis) -469.5 -393.7
North America -82.7 -69.5
 Canada -49.3 -38.5
 Mexico -33.4 -31.0
European Union (EU-25) -79.9 -70.5
Western Europe -82.7 -72.1
 Euro Area -60.5 -53.8
 European Union (EU-15) -75.6 -67.0
 France -7.4 -8.4
 Germany -33.1 -28.2
 Italy -13.0 -11.3
 Netherlands 8.9 6.2
 United Kingdom -7.0 -5.9
 Other EU -15.7 -14.1
EFTA (1) -5.5 -4.3
Eastern Europe/FSR (2) -10.5 -9.3
 Russia -5.8 -5.3
Pacific Rim Countries -202.1 -167.9
 Australia 5.0 5.1
 China -114.3 -89.7
 Japan -55.2 -48.2
 NICs (3) -15.3 -15.7
Latin America -26.3 -20.0
 Argentina -0.1 -0.6
 Brazil -4.8 -5.2
OPEC -51.9 -38.2
Other Countries -34.2 -32.3
 Egypt 4.1 1.0
 South Africa -2.1 -1.4

 Change Change
 in exports, in imports,
 Jan.-Sept. Jan.-Sept.
 2004 over 2004 over
 Jan.-Sept. Jan.-Sept.
Country/areas 2003 2003

 Percent

Total (Census basis) 13.7 16.1
North America 12.6 14.3
 Canada 11.5 15.3
 Mexico 14.8 12.6
European Union (EU-25) 11.4 12.1
Western Europe 10.6 12.1
 Euro Area 12.6 12.5
 European Union (EU-15) 11.1 11.8
 France 19.8 7.2
 Germany 8.8 13.7
 Italy 3.9 10.4
 Netherlands 20.6 9.4
 United Kingdom 5.5 7.7
 Other EU 12.9 11.9
EFTA (1) 3.9 13.0
Eastern Europe/FSR (2) 33.3 19.9
 Russia 20.7 12.0
Pacific Rim Countries 14.2 17.6
 Australia 6.8 14.5
 China 34.7 28.7
 Japan 4.5 10.1
 NICs (3) 19.8 14.7
Latin America 18.3 22.8
 Argentina 46.1 10.1
 Brazil 28.3 14.2
OPEC 23.3 32.9
Other Countries 24.8 13.7
 Egypt 22.5 0.0
 South Africa 14.6 30.7

(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 Nov. 10, 2004, found
at Internet address http://www.bea.doc.gov/bealnewsrelltradnews
release.htm.

Table 5
Growth in the value of merchandise trade by region, 1990-2003

 Exports
 2003 1990-2000 2002 2003

 Billion
 dollars Annual percentage change

World 7274 6 4 16
North America 996 7 N/A 5
 United States 724 7 N/A 4
Latin America 377 9 0 9
 Mexico 165 15 1 3
 Mercosur 106 6 1 19
Other Latin America 106 6 N/A 8
Western Europe 3141 4 6 17
 European Union (EU-15) 2894 4 6 17
Extra EU-15 trade 1099 5 7 17
Intra EU-15 trade 1795 4 6 18
Transition economies 400 10 10 28
 Central/Eastern Europe 191 10 15 29
 Russia 135 N/A 4 26
Africa 173 3 2 22
 South Africa 36 2 2 23
Oil exporters (1) 80 4 30
Other African countries 0.00 3 7 12
Middle East 290 7 1 16
Asia 1897 8 8 17
 Japan 472 5 3 13
 Developing Asia 1338 11 10 19
 China 438 15 22 35
 Six East Asian traders (2) 0.00 9 6 14
 India 55 9 14 11
Memorandum:
Developing economies 2178 9 6 17
LDCs 44 7 9 14

 Imports
 2003 1990-2000 2002 2003

 Billion
 dollars Annual percentage change

World 7557 6 4 16
North America 1552 9 2 9
 United States 1306 9 2 9
Latin America 366 12 N/A 3
 Mexico 179 15 0 1
 Mercosur 69 12 N/A 10
Other Latin America 118 7 N/A 3
Western Europe 3173 4 5 18
 European Union (EU-15) 2914 4 4 18
Extra EU-15 trade 1114 5 2 19
Intra EU-15 trade 1800 4 6 18
Transition economies 378 8 11 27
 Central/Eastern Europe 225 12 11 27
 Russia 74 N/A 12 24
Africa 165 3 4 17
 South Africa 38 5 4 30
Oil exporters (1) 42 1 6 19
Other African countries 85 2 4 12
Middle East 188 5 3 9
Asia 1734 8 6 19
 Japan 383 5 14
 Developing Asia 1244 9 9 20
 China 413 15 21 40
 Six East Asian traders (2) 615 8 3 12
 India 70 8 12 23
Memorandum:
Developing economies 1963 8 4 15
LDCs 54 5 4 15

(1) Algeria, Angola, Congo, Equatorial Guinea, Gabon, Libya, Nigeria,
and Sudan.

(2) Chinese Taipei, Hong Kong China, Rep. of Korea, Malaysia,
Singapore, and Thailand.

NOTE.--N/A indicates not available

Source: WTO, "World Trade 2003, Prospects for 2004--Stronger than
expected growth spurs modest trade recovery," press release 373,
Apr. 5, 2004.

Table 6
Growth in the value of commercial services trade by region, 1990-2003,
billion dollars and percentages

 Exports
 2003 1990-2000 2002 2003

 Billion
 dollars Annual percentage change

World 1763 7 6 12
North America 322 8 1 4
 United States 282 8 1 4
Latin America 60 7 -4 6
 Mexico 12 7 -1 0
 Mercosur 15 8 -11 12
Other Latin America 33 7 -1 5
Western Europe 895 5 10 17
 European Union (EU-15) 802 5 10 16
Transition economies 72 9 11 19
 Central/Eastern Europe 40 12 5 21
 Russia 16 4 20 18
Africa 36 5 3 N/A
Middle East 33 9 -4 N/A
Asia 345 9 8 6
 Japan (1) 70 5 2 8
 Developing Asia 249 11 9 5
 China 45 18 20 N/A
Hong Kong, China 43 8 10 0
 Korea 31 13 0 15
 Singapore 30 9 3 3
 India 25 14 12 N/A
Memorandum:
Developing economies 377 9 5 6
LDCs 7 7 6 9

 Imports
 2003 1990-2000 2002 2003

 Billion
 dollars Annual percentage change

World 1743 6 5 12
North America 266 7 1 7
 United States 218 8 2 6
Latin America 67 7 N/A 3
 Mexico 17 5 3 2
 Mercosur 20 9 N/A 8
Other Latin America 29 7 N/A 0
Western Europe 839 5 8 16
 European Union (EU-15) 782 5 8 16
Transition economies 82 8 15 21
 Central/Eastern Europe 38 11 11 28
 Russia 27 3 15 13
Africa 46 4 2 N/A
Middle East 49 4 N/A N/A
Asia 394 8 4 5
 Japan (1) 110 3 0 3
 Developing Asia 258 12 5 5
 China 54 24 18 N/A
Hong Kong, China 24 8 1 -5
 Korea 39 13 8 10
 Singapore 27 12 2 0
 India 20 13 -1 N/A
Memorandum:
Developing economies 419 9 2 6
LDCs 17 4 2 12

(1) Provisional WTO Secretariat estimate for exports in 2003 is based
on the methodology applied by the Bank of Japan up to 2002.

N/A indicates not available.

Source: WTO, "World Trade 2003, Prospects for 2004-Stronger than
expected growth spurs modest trade recovery," press release 373,
Apr. 5, 2004.

Table 7
Leading exporters and importers in world merchandise trade
2003, billion dollars and percentage

 Annual
 percentage
Rank Exporters Value Share change

 1 Germany 748.4 10.0 22.0
 2 United States 724.0 9.7 4.0
 3 Japan 471.9 6.3 13.0
 4 China 438.4 5.9 35.0
 5 France 384.7 5.1 16.0
 6 United Kingdom 303.9 4.1 8.0
 7 Netherlands 293.4 3.9 20.0
 8 Italy 290.2 3.9 14.0
 9 Canada 272.1 3.6 8.0
 10 Belgium 254.6 3.4 18.0
 11 Hong Kong, China 224.0 3.0 11.0
 12 Korea 194.3 2.6 20.0
 13 Mexico 165.3 2.2 3.0
 14 Spain 151.9 2.0 21.0
 15 Chinese Taipei 150.6 2.0 12.0
 16 Singapore 144.1 1.9 15.0
 17 Russia 135.2 1.8 26.0
 18 Sweden 100.9 1.3 24.0
 19 Malaysia 100.7 1.3 8.0
 20 Switzerland 100.6 1.3 14.0
 21 Austria 96.2 1.3 22.0
 22 Ireland 92.7 1.2 5.0
 23 Saudi Arabia 88.5 1.2 23.0
 24 Thailand 80.3 1.1 17.0
 25 Brazil 73.1 1.0 21.0
 26 Australia 70.4 0.9 8.0
 27 Norway 68.1 0.9 14.0
 28 Denmark 67.9 0.9 18.0
 29 Indonesia 60.7 0.8 6.0
 30 United Arab Emirates 58.1 0.8 17.0
 Total above 6405.0 85.6
 Total world 7482.0 100.0 16.0

 Annual
 percentage
Rank Importers Value Share change

 1 United States 1305.6 16.8 9.0
 2 Germany 601.7 7.7 23.0
 3 China 412.8 5.3 40.0
 4 France 388.4 5.0 18.0
 5 United Kingdom 388.3 5.0 12.0
 6 Japan 383.0 4.9 14.0
 7 Italy 289.0 3.7 17.0
 8 Netherlands 261.1 3.4 19.0
 9 Canada 245.6 3.2 8.0
 10 Belgium 234.3 3.0 18.0
 11 Hong Kong, China 232.6 3.0 12.0
 12 Spain 200.1 2.6 21.0
 13 Mexico 179.0 2.3 1.0
 14 Korea 178.8 2.3 18.0
 15 Singapore 127.9 1.6 10.0
 16 Chinese Taipei 127.3 1.6 13.0
 17 Austria 97.7 1.3 25.0
 18 Switzerland 96.3 1.2 15.0
 19 Australia 88.6 1.1 22.0
 20 Sweden 82.3 1.1 23.0
 21 Malaysia 81.1 1.0 1.0
 22 Thailand 75.7 1.0 17.0
 23 Russia 74.5 1.0 24.0
 24 India 69.7 0.9 23.0
 25 Turkey 67.7 0.9 31.0
 26 Poland 66.9 0.9 21.0
 27 Denmark 58.7 0.8 17.0
 28 Ireland 52.8 0.7 1.0
 29 Czech Rep. 51.3 0.7 26.0
 30 Brazil 50.7 0.7 2.0
 Total above 6570.0 84.6
 Total world 7765.0 100.0 16.0

Source: WTO, "World Trade 2003, Prospects for 2004-Stronger than
expected growth spurs modest trade recovery," press release 373,
Apr. 5, 2004.

Table 8
Leading exporters and importers in world trade in commercial services
2003, billion dollars and percentage

 Annual
 percentage
Rank Exporters Value Share change

 1 United States 282.5 16.0 4.0
 2 United Kingdom 129.5 7.3 5.0
 3 Germany 111.7 6.3 12.0
 4 France 98.0 5.6 14.0
 5 Spain 76.4 4.3 23.0
 6 Italy 72.8 4.1 23.0
 7 Japan 70.2 4.0 8.0
 8 Netherlands 64.1 3.6 18.0
 9 China 44.5 2.5 N/A
 10 Hong Kong, China 43.2 2.5 0.0
 11 Belgium 41.7 2.4 17.0
 12 Austria 41.4 2.3 19.0
 13 Canada 39.2 2.2 8.0
 14 Ireland 35.3 2.0 26.0
 15 Switzerland 32.7 1.9 17.0
 16 Denmark 32.6 1.9 20.0
 17 Korea 31.2 1.8 15.0
 18 Sweden 31.0 1.8 32.0
 19 Singapore 30.4 1.7 3.0
 20 India 24.9 1.4 N/A
 21 Greece 24.4 1.4 21.0
 22 Luxembourg 23.8 1.4 18.0
 23 Chinese Taipei 23.0 1.3 7.0
 24 Norway 22.2 1.3 16.0
 25 Australia 20.6 1.2 18.0
 26 Turkey 17.3 1.0 17.0
 27 Russia 15.9 0.9 18.0
 28 Thailand 15.5 0.9 2.0
 29 Malaysia 12.8 0.7 -13.0
 30 Mexico 12.5 0.7 0.0
 Total of above 1521.0 86.3
 Total world 1763.0 100.0 12.0

 Annual
 percentage
Rank Importers Value Share change

 1 United States 218.2 12.5 6.0
 2 Germany 167.0 9.6 12.0
 3 United Kingdom 112.4 6.4 11.0
 4 Japan 109.7 6.3 3.0
 5 France 81.6 4.7 20.0
 6 Italy 74.1 4.3 21.0
 7 Netherlands 66.2 3.8 1.0
 8 China 53.8 3.1 N/A
 9 Ireland 48.5 2.8 20.0
 10 Canada 47.8 2.7 14.0
 11 Spain 46.1 2.6 22.0
 12 Belgium 41.4 2.4 17.0
 13 Austria 40.6 2.3 18.0
 14 Korea 38.7 2.2 10.0
 15 Sweden 29.6 1.7 25.0
 16 Denmark 29.1 1.7 16.0
 17 Singapore 27.2 1.6 0.0
 18 Russia 26.7 1.5 13.0
 19 Chinese Taipei 25.5 1.5 7.0
 20 Hong Kong, China 23.5 1.3 -5.0
 21 Australia 21.1 1.2 19.0
 22 Switzerland 19.9 1.1 17.0
 23 India 19.7 1.1 N/A
 24 Norway 19.5 1.1 18.0
 25 Thailand 18.1 1.0 9.0
 26 Indonesia 17.7 1.0 N/A
 27 Mexico 17.4 1.0 2.0
 28 Malaysia 16.4 0.9 1.0
 29 Luxembourg 15.8 0.9 16.0
 30 Brazil 14.6 0.8 7.0
 Total of above 1488.0 85.4
 Total world 1743.0 100.0 12.0

N/A indicates not available.

Source: WTO, "World Trade 2003, Prospects for 2004-Stronger than
expected growth spurs modest trade recovery," press release 373,
Apr. 5, 2004.

Table 9
U.S. international transactions

 Item 2003 2003:Q1 2003:Q2

 Current account Billion dollars, quarters
 seasonally adjusted (credits
 (+); debits (-))

 1 Exports of goods and services and
 income receipts 1,314.9 315.7 317.4
 2 Exports of goods and services 1,020.5 248.0 248.5
 3 Goods, balance of payments basis 713.1 173.5 174.6
 4 Services 307.4 74.5 73.9
 5 Transfers under U.S. military agency
 sales contracts 12.5 2.8 3.0
 6 Travel 64.5 15.9 14.4
 7 Passenger fares 15.7 3.8 3.5
 8 Other transportation 31.8 7.7 7.7
 9 Royalties and license fees 48.2 11.6 11.9
10 Other private services 133.8 32.5 33.2
11 U.S. Government miscellaneous
 services 0.8 0.2 0.2
12 Income receipts 294.4 67.7 68.9
13 Income receipts on U.S.-owned assets
 abroad 291.4 66.9 68.2
14 Direct investment receipts 187.5 40.7 42.7
15 Other private receipts 99.1 25.3 24.2
16 U.S. Government receipts 4.7 0.8 1.2
17 Compensation of employees 3.0 0.7 0.7
18 Imports of goods and services and
 income payments -1,778.1 -437.1 -434.9
19 Imports of goods and services -1,517.0 -373.4 -371.9
20 Goods, balance of payments basis -1,260.7 -311.4 -310.1
21 Services -256.3 -62.0 -61.8
22 Direct defense expenditures -25.1 -5.7 -6.2
23 Travel -56.6 -14.3 -12.8
24 Passenger fares -21.0 -5.0 -4.9
25 Other transportation -44.8 -10.8 -11.1
26 Royalties and license fees -20.0 -4.6 -4.9
27 Other private services -85.8 -20.8 -21.1
28 U.S. Government miscellaneous
 services -3.0 -0.7 -0.7
29 Income payments -261.1 -63.7 -63.0
30 Income payments on foreign-owned
 assets in the United States -252.6 -61.6 -60.9
31 Direct investment payments -68.7 -15.4 -16.4
32 Other private payments -111.9 -28.1 -26.8
33 U.S. Government payments -72.0 -18.0 -17.8
34 Compensation of employees -8.5 -2.1 -2.1
35 Unilateral current transfers, net -67.4 -16.8 -16.4
36 U.S. Government grants -21.9 -5.8 -5.8
37 U.S. Government pensions and other
 transfers -5.3 -1.3 -1.3
38 Private remittances and other -40.2 -9.7 -9.2
 transfers Capital and financial
 account Capital account
39 Capital account transactions, net -3.1 -0.4 -1.6
 Financial account
40 U.S.-owned assets abroad, net
 (increase/financial outflow (-)) -283.4 -102.7 -111.0
41 U.S. official reserve assets, net 1.5 0.1 -0.2
42 Gold 0.0 0.0 0.0
43 Special drawing rights 0.6 0.9 -0.1
44 Reserve position in the International
 Monetary Fund 1.5 -0.6 0.1
45 Foreign currencies -0.6 -0.2 -0.2
46 U.S. Government assets, other than
 official reserve assets, net 0.5 0.1 0.3
47 U.S. credits and other long-term
 assets -7.3 -2.4 -1.6
48 Repayments on U.S. credits and other
 long-term assets 8.0 2.4 2.0
49 U.S. foreign currency holdings and
 U.S. short-term assets, net -0.2 0.0 -0.1
50 U.S. private assets, net -285.5 -102.8 -111.1
51 Direct investment -173.8 -40.8 -34.0
52 Foreign securities -72.3 -26.6 8.4
53 U.S. claims on unaffiliated
 foreigners reported by U.S.
 nonbanking concerns -28.9 -11.2 -22.5
54 U.S. claims reported by U.S. banks,
 not included elsewhere -10.4 -24.1 -63.0
55 Foreign-owned assets in the United
 States, net (increase/financial
 inflow (+)) 829.2 246.1 218.6
56 Foreign official assets in the
 United States, net 248.6 49.0 65.2
57 U.S. Government securities 194.6 39.8 46.0
58 U.S. Treasury securities 169.685 30.277 42.668
59 Other 24.883 9.568 3.29
60 Other U.S. Government liabilities -0.564 -0.437 -0.016
61 U.S. liabilities reported by U.S.
 banks, not included elsewhere 49.42 8.325 18.552
62 Other foreign official assets 5.149 1.253 0.751
63 Other foreign assets in the United
 States, net 580.6 197.119 153.308
64 Direct investment 39.89 32.523 -0.544
65 U.S. Treasury securities 113.432 8.974 53.254
66 U.S. securities other than U.S.
 Treasury securities 250.981 56.723 92.407
67 U.S. currency 16.64 4.927 1.458
68 U.S. liabilities to unaffiliated
 foreigners reported by U.S.
 nonbanking concerns 84.014 69.41 -2.257
69 U.S. liabilities reported by U.S.
 banks, not included elsewhere 75.643 24.562 8.99
70 Statistical discrepancy (sum of
 above items with sign reversed) -12.012 -4.828 27.836
 Memorandum:
71 Balance on goods (lines 3 and 20) -547.55 -137.94 -135.53
72 Balance on services (lines 4 and 21) 51.044 12.557 12.153
73 Balance on goods and services
 (lines 2 and 19) -496.51 -125.39 -123.38
74 Balance on income (lines 12 and 29) 33.279 3.995 5.874
75 Unilateral current transfers, net
 (line 35) -67.439 -16.815 -16.369
76 Balance on current account (lines 1,
 18, and 35 or lines -530.67 -138.21 -133.88
 73, 74, and 75)

 Item 2003:Q3 2003:Q4 2004:Q1

 Current account Billion dollars, quarters
 seasonally adjusted (credits
 (+); debits (-))

 1 Exports of goods and services and
 income receipts 329.5 352.3 359.6
 2 Exports of goods and services 255.7 268.3 276.1
 3 Goods, balance of payments basis 178.3 186.9 193.9
 4 Services 77.5 81.4 82.2
 5 Transfers under U.S. military agency
 sales contracts 3.3 3.4 3.3
 6 Travel 16.2 18.1 17.9
 7 Passenger fares 4.0 4.3 4.5
 8 Other transportation 7.9 8.5 9.1
 9 Royalties and license fees 12.2 12.5 12.5
10 Other private services 33.7 34.5 34.7
11 U.S. Government miscellaneous
 services 0.2 0.2 0.2
12 Income receipts 73.8 84.0 83.5
13 Income receipts on U.S.-owned assets
 abroad 73.0 83.2 82.8
14 Direct investment receipts 47.2 56.8 55.6
15 Other private receipts 24.5 25.1 26.4
16 U.S. Government receipts 1.3 1.3 0.8
17 Compensation of employees 0.8 0.8 0.8
18 Imports of goods and services and
 income payments -444.5 -461.7 -486.0
19 Imports of goods and services -378.0 -393.8 -414.7
20 Goods, balance of payments basis -312.9 -326.3 -344.7
21 Services -65.1 -67.5 -70.0
22 Direct defense expenditures -6.3 -6.8 -6.8
23 Travel -14.4 -15.1 -15.5
24 Passenger fares -5.5 -5.6 -5.6
25 Other transportation -11.3 -11.6 -13.1
26 Royalties and license fees -5.2 -5.3 -5.2
27 Other private services -21.6 -22.4 -23.0
28 U.S. Government miscellaneous
 services -0.8 -0.8 -0.8
29 Income payments -66.5 -67.9 -71.4
30 Income payments on foreign-owned
 assets in the United States -64.4 -65.7 -69.2
31 Direct investment payments -18.6 -18.3 -20.8
32 Other private payments -27.8 -29.1 -29.4
33 U.S. Government payments -18.0 -18.3 -19.1
34 Compensation of employees -2.1 -2.2 -2.2
35 Unilateral current transfers, net -16.6 -17.6 -20.7
36 U.S. Government grants -5.4 -4.8 -7.7
37 U.S. Government pensions and other
 transfers -1.3 -1.4 -1.6
38 Private remittances and other -9.9 -11.5 -11.4
 transfers Capital and financial
 account Capital account
39 Capital account transactions, net -0.8 -0.3 -0.4
 Financial account
40 U.S.-owned assets abroad, net
 (increase/financial outflow (-)) -8.1 -61.6 -306.7
41 U.S. official reserve assets, net -0.6 2.2 0.6
42 Gold 0.0 0.0 0.0
43 Special drawing rights -0.1 -0.1 -0.1
44 Reserve position in the International
 Monetary Fund -0.4 2.4 0.8
45 Foreign currencies -0.1 -0.1 -0.2
46 U.S. Government assets, other than
 official reserve assets, net 0.5 -0.3 0.7
47 U.S. credits and other long-term
 assets -1.5 -1.7 -0.6
48 Repayments on U.S. credits and other
 long-term assets 2.0 1.5 1.4
49 U.S. foreign currency holdings and
 U.S. short-term assets, net 0.0 -0.1 -0.1
50 U.S. private assets, net -8.0 -63.6 -308.0
51 Direct investment -45.2 -53.7 -47.6
52 Foreign securities -28.3 -25.8 -16.5
53 U.S. claims on unaffiliated
 foreigners reported by U.S.
 nonbanking concerns 35.8 -31.1 -56.8
54 U.S. claims reported by U.S. banks,
 not included elsewhere 29.7 47.1 -187.1
55 Foreign-owned assets in the United
 States, net (increase/financial
 inflow (+)) 134.2 230.3 445.3
56 Foreign official assets in the
 United States, net 50.7 83.7 127.9
57 U.S. Government securities 27.3 81.5 114.7
58 U.S. Treasury securities 23.953 72.787 101.692
59 Other 3.34 8.685 13.016
60 Other U.S. Government liabilities -0.041 -0.07 -0.14
61 U.S. liabilities reported by U.S.
 banks, not included elsewhere 22.019 0.524 11.854
62 Other foreign official assets 1.392 1.753 1.442
63 Other foreign assets in the United
 States, net 83.539 146.632 317.484
64 Direct investment -2.81 10.719 10.225
65 U.S. Treasury securities 46.49 4.714 65.438
66 U.S. securities other than U.S.
 Treasury securities 18.09 83.761 62.064
67 U.S. currency 2.768 7.487 -1.8
68 U.S. liabilities to unaffiliated
 foreigners reported by U.S.
 nonbanking concerns 12.721 4.14 40.723
69 U.S. liabilities reported by U.S.
 banks, not included elsewhere 6.28 35.811 140.834
70 Statistical discrepancy (sum of
 above items with sign reversed) 6.385 -41.404 8.941
 Memorandum:
71 Balance on goods (lines 3 and 20) -134.64 -139.44 -150.77
72 Balance on services (lines 4 and 21) 12.385 13.947 12.166
73 Balance on goods and services
 (lines 2 and 19) -122.25 -125.49 -138.6
74 Balance on income (lines 12 and 29) 7.261 16.151 12.164
75 Unilateral current transfers, net
 (line 35) -16.639 -17.617 -20.726
76 Balance on current account (lines 1,
 18, and 35 or lines -131.63 -126.96 -147.16
 73, 74, and 75)

 Change
 2004:Q1
 less
 Item 2004:Q2p * 2004:Q2

 Current account Billion dollars, quarters
 seasonally adjusted (credits
 (+); debits (-))

 1 Exports of goods and services and
 income receipts 371.2 11.6
 2 Exports of goods and services 284.3 8.2
 3 Goods, balance of payments basis 199.3 5.4
 4 Services 85.0 2.8
 5 Transfers under U.S. military agency
 sales contracts 3.7 0.4
 6 Travel 18.9 1.1
 7 Passenger fares 4.7 0.2
 8 Other transportation 9.4 0.3
 9 Royalties and license fees 12.5 0.0
10 Other private services 35.5 0.8
11 U.S. Government miscellaneous
 services 0.2 0.0
12 Income receipts 86.9 3.4
13 Income receipts on U.S.-owned assets
 abroad 86.1 3.4
14 Direct investment receipts 56.6 1.1
15 Other private receipts 28.9 2.4
16 U.S. Government receipts 0.6 -0.2
17 Compensation of employees 0.7 0.0
18 Imports of goods and services and
 income payments -518.8 -32.8
19 Imports of goods and services -434.6 -19.9
20 Goods, balance of payments basis -362.9 -18.2
21 Services -71.7 -1.7
22 Direct defense expenditures -6.9 -0.1
23 Travel -16.2 -0.7
24 Passenger fares -5.8 -0.2
25 Other transportation -13.0 0.1
26 Royalties and license fees -5.5 -0.3
27 Other private services -23.5 -0.5
28 U.S. Government miscellaneous
 services -0.8 0.0
29 Income payments -84.2 -12.9
30 Income payments on foreign-owned
 assets in the United States -82.0 -12.8
31 Direct investment payments -27.6 -6.8
32 Other private payments -33.9 -4.5
33 U.S. Government payments -20.5 -1.4
34 Compensation of employees -2.3 -0.1
35 Unilateral current transfers, net -18.5 2.2
36 U.S. Government grants -5.1 2.7
37 U.S. Government pensions and other
 transfers -1.6 0.0
38 Private remittances and other -11.9 -0.5
 transfers Capital and financial
 account Capital account
39 Capital account transactions, net -0.3 0.1
 Financial account
40 U.S.-owned assets abroad, net
 (increase/financial outflow (-)) -118.5 188.3
41 U.S. official reserve assets, net 1.1 0.6
42 Gold 0.0 0.0
43 Special drawing rights -0.1 0.0
44 Reserve position in the International
 Monetary Fund 1.3 0.5
45 Foreign currencies -0.1 0.0
46 U.S. Government assets, other than
 official reserve assets, net 0.0 -0.8
47 U.S. credits and other long-term
 assets -0.6 0.0
48 Repayments on U.S. credits and other
 long-term assets 0.6 -0.8
49 U.S. foreign currency holdings and
 U.S. short-term assets, net 0.0 0.1
50 U.S. private assets, net -119.5 188.5
51 Direct investment -60.7 -13.1
52 Foreign securities -30.3 -13.8
53 U.S. claims on unaffiliated
 foreigners reported by U.S.
 nonbanking concerns 2.4 59.2
54 U.S. claims reported by U.S. banks,
 not included elsewhere -30.9 156.2
55 Foreign-owned assets in the United
 States, net (increase/financial
 inflow (+)) 265.2 -180.1
56 Foreign official assets in the
 United States, net 73.9 -54.0
57 U.S. Government securities 65.8 -48.9
58 U.S. Treasury securities 63.027 -38.665
59 Other 2.767 -10.249
60 Other U.S. Government liabilities -0.158 -0.018
61 U.S. liabilities reported by U.S.
 banks, not included elsewhere 6.237 -5.617
62 Other foreign official assets 2.004 0.562
63 Other foreign assets in the United
 States, net 191.369 -126.12
64 Direct investment 32.702 22.477
65 U.S. Treasury securities 35.56 -29.878
66 U.S. securities other than U.S.
 Treasury securities 88.617 26.553
67 U.S. currency 8.754 10.554
68 U.S. liabilities to unaffiliated
 foreigners reported by U.S.
 nonbanking concerns -5.191 -45.914
69 U.S. liabilities reported by U.S.
 banks, not included elsewhere 30.927 -109.91
70 Statistical discrepancy (sum of
 above items with sign reversed) 19.707 10.766
 Memorandum:
71 Balance on goods (lines 3 and 20) -163.58 -12.812
72 Balance on services (lines 4 and 21) 13.294 1.128
73 Balance on goods and services
 (lines 2 and 19) -150.29 -11.684
74 Balance on income (lines 12 and 29) 2.643 -9.521
75 Unilateral current transfers, net
 (line 35) -18.534 2.192
76 Balance on current account (lines 1,
 18, and 35 or lines -166.18 -19.013
 73, 74, and 75)

p *: Preliminary.

Note.--Details may not add to totals because of rounding.

Source: U.S. Department of Commerce, Bureau of Economic Analysis,
U.S. International Transactions, BEA News, press release BEA 04-43,
Sept. 14, 2004, found at Internet address http://www.bea.doc.gov/bea/
newsrel/transnewsrelease.htm, retrieved Oct. 6, 2004.

Table 10
International investment position of the United States, 2002 and
2003, million dollars

 Changes in position in 2002
 attributable to: (decrease (-),
 increase (+))

 Position Financial Price
Type of Investment (2002) flows changes
Net international investment
 position of the United States
 With direct investment
 positions at current cost -2,233,016 -545,759 37,112
 With direct investment
 positions at market value -2,553,407 -545,759 -13,696
 U.S.-owned assets abroad:
 With direct investment
 positions at current cost 6,413,535 283,414 355,668
 With direct investment
 positions at market value 6,613,320 283,414 676,650
 U.S. official reserve assets 158,602 -1,523 18,059
 Gold 90,806 ... 18,059
 Special Drawing Rights 12,166 -601 ...
 Reserve position in the
 International Monetary Fund 21,979 -1,494 ...
 Foreign currencies 33,651 572 ...
 U.S. Government assets, other than
 official reserve assets 85,309 -537 ...
 U.S. credits and other
 long-term assets 82,682 -702 ...
 Repayable in dollars 82,406 -700 ...
 Other 276 -2 ...
 U.S. foreign currency holdings and
 U.S. short-term assets 2,627 165 ...
U.S. private assets
 With direct investment at
 current cost 6,169,624 285,474 337,609
 With direct investment at
 market value 6,369,409 285,474 658,591
 Direct investment abroad
 At current cost 1,839,995 173,799 9,472
 At market value 2,039,780 173,799 330,454
 Foreign securities 1,846,879 72,337 328,137
 Bonds 501,762 -28,094 3,209
 Corporate stocks 1,345,117 100,431 324,928
 U.S. claims on unaffiliated
 foreigners reported by U.S.
 nonbanking concerns 908,024 28,932 ...
 U.S. claims reported by U.S.
 banks, not included elsewhere 1,574,726 10,406 ...
Foreign-owned assets in the
 United States
 With direct investment at
 current cost 8,646,553 829,173 318,556
 With direct investment at
 market value 9,166,727 829,173 690,346
 Foreign official assets in the
 United States 1,212,723 248,573 3,920
 U.S.Government securities 954,896 194,568 -16,845
 U.S. Treasury securities 796,449 169,685 -13,947
 Other 158,447 24,883 -2,898
 Other U.S. Government
 liabilities 17,144 -564 ...
 U.S. liabilities reported by
 U.S. banks, not included
 elsewhere 144,646 49,420 ...
 Other foreign official assets 96,037 5,149 20,765
 Other foreign assets
 With direct investment at
 current cost 7,433,830 580,600 314,636
 With direct investment at
 market value 7,954,004 580,600 686,426
 Direct investment in the
 United States
 At current cost 1,505,171 39,890 6,460
 At market value 2,025,345 39,890 378,250
 U.S. Treasury securities 457,670 113,432 -11,612
 U.S. securities other than U.S.
 Treasury securities 2,786,647 250,981 319,788
 Corporate and other bonds 1,600,414 213,718 5,205
 Corporate stocks 1,186,233 37,263 314,583
 U.S. currency 301,268 16,640 ...
 U.S. liabilities to unaffiliated
 foreigners reported by U.S.
 nonbanking concerns 864,632 84,014 ...
 U.S. liabilities reported by U.S.
 banks, not included elsewhere 1,518,442 75,643 ...

 Changes in position in 2002
 attributable to: (decrease
 (-), increase (+))

 Exchange
 rate Other
Type of Investment changes (1) changes (2)
Net international investment
 position of the United States
 With direct investment
 positions at current cost 255,457 55,526
 With direct investment
 positions at market value 397,918 63,954
 U.S.-owned assets abroad:
 With direct investment
 positions at current cost 327,520 -177,445
 With direct investment
 positions at market value 468,722 -178,138
 U.S. official reserve assets 8,438 1
 Gold ... -14
 Special Drawing Rights 1,073 ...
 Reserve position in the
 International Monetary Fund 2,050 ...
 Foreign currencies 5,315 ...
 U.S. Government assets, other than
 official reserve assets ... ...
 U.S. credits and other
 long-term assets ... ...
 Repayable in dollars ... ...
 Other ... ...
 U.S. foreign currency holdings and
 U.S. short-term assets ... ...
U.S. private assets
 With direct investment at
 current cost 319,082 -177,446
 With direct investment at
 market value 460,284 -178,139
 Direct investment abroad
 At current cost 58,756 -13,009
 At market value 199,958 -13,702
 Foreign securities 227,021 ...
 Bonds 25,253 ...
 Corporate stocks 201,768 ...
 U.S. claims on unaffiliated
 foreigners reported by U.S.
 nonbanking concerns 18,093 -340,377
 U.S. claims reported by U.S.
 banks, not included elsewhere 15,212 175,940
Foreign-owned assets in the
 United States
 With direct investment at
 current cost 72,063 -232,971
 With direct investment at
 market value 70,804 -242,092
 Foreign official assets in the
 United States ... 8,945
 U.S.Government securities ... 12,410
 U.S. Treasury securities ... 4,476
 Other ... 7,934
 Other U.S. Government
 liabilities ... ...
 U.S. liabilities reported by
 U.S. banks, not included
 elsewhere ... -3,465
 Other foreign official assets ... ...
 Other foreign assets
 With direct investment at
 current cost 72,063 -241,916
 With direct investment at
 market value 70,804 -251,037
 Direct investment in the
 United States
 At current cost 1,259 1,175
 At market value ... -7,946
 U.S. Treasury securities ... -16,948
 U.S. securities other than U.S.
 Treasury securities 48,437 -14,803
 Corporate and other bonds 48,437 -14,803
 Corporate stocks ... ...
 U.S. currency ... ...
 U.S. liabilities to unaffiliated
 foreigners reported by U.S.
 nonbanking concerns 11,269 -493,372
 U.S. liabilities reported by U.S.
 banks, not included elsewhere 11,098 282,032

 Changes in position in
 2002 attributable to:
 (decrease (-),
 increase (+))

 Total Position
Type of Investment changes (2003)
Net international investment
 position of the United States
 With direct investment
 positions at current cost -197,664 -2,430,682
 With direct investment
 positions at market value -97,583 -2,650,990
 U.S.-owned assets abroad:
 With direct investment
 positions at current cost 789,157 7,202,692
 With direct investment
 positions at market value 1,250,648 7,863,968
 U.S. official reserve assets 24,975 183,577
 Gold 18,060 108,886
 Special Drawing Rights 472 12,638
 Reserve position in the
 International Monetary Fund 556 22,535
 Foreign currencies 5,887 39,538
 U.S. Government assets, other than
 official reserve assets -537 84,772
 U.S. credits and other
 long-term assets -702 81,980
 Repayable in dollars -700 81,706
 Other -2 274
 U.S. foreign currency holdings and
 U.S. short-term assets 165 2,792
U.S. private assets
 With direct investment at
 current cost 764,719 6,934,343
 With direct investment at
 market value 1,226,210 7,595,619
 Direct investment abroad
 At current cost 229,013 2,069,013
 At market value 690,509 2,730,289
 Foreign securities 627,495 2,474,374
 Bonds 368 502,130
 Corporate stocks 627,127 1,972,244
 U.S. claims on unaffiliated
 foreigners reported by U.S.
 nonbanking concerns -293,352 614,672
 U.S. claims reported by U.S.
 banks, not included elsewhere 201,558 1,776,284
Foreign-owned assets in the
 United States
 With direct investment at
 current cost 986,821 9,633,374
 With direct investment at
 market value 1,348,231 10,514,958
 Foreign official assets in the
 United States 261,438 1,474,161
 U.S.Government securities 190,133 1,145
 U.S. Treasury securities 160,214 956,663
 Other 29,919 188,366
 Other U.S. Government
 liabilities -564 16,580
 U.S. liabilities reported by
 U.S. banks, not included
 elsewhere 45,955 190,601
 Other foreign official assets 25,914 121,951
 Other foreign assets
 With direct investment at
 current cost 725,383 8,159,213
 With direct investment at
 market value 1,086,793 9,040,797
 Direct investment in the
 United States
 At current cost 48,784 1,553,955
 At market value 410,194 2,435,539
 U.S. Treasury securities 84,872 542,542
 U.S. securities other than U.S.
 Treasury securities 604,403 3,391,050
 Corporate and other bonds 252,557 1,852,971
 Corporate stocks 351,846 1,538,079
 U.S. currency 16,640 317,908
 U.S. liabilities to unaffiliated
 foreigners reported by U.S.
 nonbanking concerns -398,089 455,543
 U.S. liabilities reported by U.S.
 banks, not included elsewhere 368,032 1,887,215

(1) Hepresents gains or losses on toreign-currency-denominated assets
due to their revaluation at current exchange rates.

(2) Includes changes in coverage, capital gains and losses of direct
investment affiliates, and other statistical adjustments to the value
of assets.

Source: U.S. Department of Commerce, Bureau of Economic Analysis,
Patricia E. Abaroa, "The International Investment Position of the
United States at Year end 2003," Survey of Current Business,
July 2004, vol. 84, No. 7, pp. 30-39, found at Internet address
http://www.bea.gov/bea/ARTICLES/2004/07July/0704_IIP.pdf, retrieved
on Aug. 2, 2004.

Table 11
Valuation position changes in 2003-Position at yearend
(billion dollars)

 Yearend Capital
Method 2002 Total flows

U.S. direct investment abroad

Historical cost 1,601,414 187,497 151,884
Current cost 1,839,995 229,018 173,799
Market value 2,039,780 690,509 173,799

Foreign direct investment in the United States

Historical cost 1,340,011 37,990 29,772
Current cost 1,505,171 48,784 39,890
Market value 2,025,345 410,194 39,890

 Valuation Yearend
Method adjustments 2003

U.S. direct investment abroad

Historical cost 35,613 1,788,911
Current cost 55,219 2,069,013
Market value 516,710 2,730,289

Foreign direct investment in the United States

Historical cost 8,218 1,378,001
Current cost 8,894 1,553,955
Market value 370,304 2,435,539

Source: U.S. Department of Commerce, Bureau of Economic Analysis.

Table 12
U.S. direct investment position abroad on an historical cost basis,
2003, million dollars

 Manu-
 fact-
 All uring:
 industries Mining Utilities Total

All countries 1,788,911 98,669 26,907 378,033
Canada 192,409 24,326 954 74,878
Europe 963,087 20,801 8,455 177,951
 Austria 5,139 1 0 1,949
 Belgium 25,804 7 0 8,230
 Czech Rep. 1,790 negl. 55 856
 Denmark 7,329 disc. 0 2,163
 Finland 2,271 0 0 901
 France 47,914 52 78 19,942
 Germany 80,163 74 14 18,985
 Greece 1,106 2 0 172
 Hungary 2,843 negl. 0 2,024
 Ireland 55,463 disc. 1 15,002
 Italy 30,417 -23 38 18,159
 Luxembourg 66,919 0 negl. 2,796
 Netherlands 178,933 3,536 278 21,060
 Norway 8,325 5,071 negl. 1,013
 Poland 5,453 4 16 2,888
 Portugal 3,480 negl. 0 653
 Russia 1,176 406 0 119
 Spain 38,215 -2 88 8,707
 Sweden 28,905 0 0 1,024
 Switzerland 86,435 10 0 8,721
 Turkey 1,989 17 89 550
 United Kingdom 272,640 8,208 7,401 40,548
 Other 10,378 3,173 397 1,488
South America 304,023 15,738 9,081 46,775
 Argentina 11,026 390 disc. 1,593
 Brazil 29,915 1,216 2,441 10,326
 Chile 9,986 1,447 disc. 1,922
 Colombia 2,751 238 124 1,129
 Ecuador 1,446 887 negl. 72
 Peru 2,659 1,142 147 208
 Venezuela 10,859 2,678 2,208 2,698
 Other 1,299 279 94 211
Central America 71,507 634 1,087 21,735
 Costa Rica 1,831 negl. 0 728
 Honduras 270 0 negl. 206
 Mexico 61,526 417 677 20,089
 Panama 6,497 207 disc. 128
 Other 1,382 10 disc. 585
Other Western
 Hemisphere 162,574 6,826 566 6,881
 Barbados 1,766 4 disc. 71
 Bermuda 84,609 140 93 648
 Dominican Rep. 860 negl. 128 431
 United Kingdom
 Islands 54,507 3,206 -227 2,093
 Other 20,832 3,476 disc. 3,639
Africa 18,960 11,802 295 1,266
 Egypt 3,018 3,087 0 -446
 Nigeria 2,082 610 0 65
 South Africa 3,902 72 0 1,230
 Other 9,958 8,033 295 418
Middle East 16,942 4,669 138 4,537
 Israel 6,208 5 disc. 3,647
 Saudi Arabia 4,217 disc. 2 372
 United Arab Emirates 1,430 disc. 24 disc.
 Other 5,087 3,425 disc. disc.
Asia and Pacific 293,490 21,332 7,984 72,625
 Australia 40,985 8,167 2,533 10,841
 China 11,877 1,242 565 6,791
 Hong Kong 44,323 negl. 3,171 4,045
 India 3,609 21 767 1,247
 Indonesia 10,387 8,250 728 470
 Japan 73,435 16 0 14,422
 Korea 13,318 1 0 6,842
 Malaysia 7,580 733 0 4,706
 New Zealand 3,849 270 negl. 368
 Philippines 4,700 329 187 2,144
 Singapore 57,589 -107 2 13,394
 Taiwan 10,961 negl. 0 3,986
 Thailand 7,393 1,214 negl. 3,113
 Other 3,484 1,197 31 255
Memorandum:
Eastern Europe (l) 20,524 3,586 468 7,211
European Union 844,698 12,119 7,899 160,292
(EU-15) (2)
OPEC (3) 36,549 18,874 3,043 4,101

 Primary
 Manu- Manu- and
 fact- fact- fabri-
 uring: uring: cated
 Food Chemicals metals Machinery
 Million dollars

All countries 22,717 90,341 22,970 21,380
Canada 4,253 13,089 4,134 3,066
Europe 11,321 51,932 10,455 11,256
 Austria disc. 83 60 105
 Belgium 411 4,748 -18 107
 Czech Rep. 32 203 16 90
 Denmark 273 208 disc. disc.
 Finland 4 362 41 101
 France 1,545 4,429 3,610 188
 Germany 1,173 2,599 1,622 888
 Greece -4 164 negl. 0
 Hungary 18 98 329 1
 Ireland 193 6,089 33 24
 Italy 1,081 3,374 197 2,701
 Luxembourg 0 31 disc. 7
 Netherlands 1,298 11,733 1,987 747
 Norway 25 10 30 419
 Poland 386 323 128 17
 Portugal 47 72 18 disc.
 Russia 236 106 0 12
 Spain 541 3,117 158 71
 Sweden disc. 254 40 288
 Switzerland 210 2,966 disc. 479
 Turkey 158 -131 negl. negl.
 United Kingdom 3,029 11,027 857 4,813
 Other 203 67 disc. 2
South America 3,806 10,982 5,022 2,800
 Argentina 685 903 -5 123
 Brazil 357 3,049 1,386 1,422
 Chile 55 483 42 32
 Colombia 74 461 13 0
 Ecuador 66 1 -3 0
 Peru 67 98 -58 negl.
 Venezuela 489 357 21 98
 Other 103 73 negl. 5
Central America 1,889 4,352 disc. 1,108
 Costa Rica 97 134 31 1
 Honduras 20 negl. 0 0
 Mexico 1,671 4,007 disc. 1,107
 Panama 26 120 negl. 0
 Other 74 91 -7 0
Other Western
 Hemisphere 21 1,206 disc. 13
 Barbados 21 8 6 11
 Bermuda 1 disc. 0 1
 Dominican Rep. 37 33 disc. 0
 United Kingdom
 Islands disc. disc. -37 negl.
 Other disc. disc. disc. 1
Africa 209 402 55 305
 Egypt 2 -113 7 disc.
 Nigeria negl. disc. 0 0
 South Africa 21 448 -21 disc.
 Other 185 disc. 69 2
Middle East 90 479 46 153
 Israel 84 27 -9 52
 Saudi Arabia 6 97 29 22
 United Arab Emirates 0 disc. 24 66
 Other negl. disc. 2 12
Asia and Pacific 3,038 13,457 3,257 3,801
 Australia 1,159 1,994 2,075 555
 China 531 1,430 124 298
 Hong Kong 22 206 217 55
 India 37 279 disc. 415
 Indonesia 37 265 31 -6
 Japan 197 4,134 245 918
 Korea 552 1,231 118 364
 Malaysia -11 254 disc. 103
 New Zealand disc. 78 27 14
 Philippines 259 197 21 23
 Singapore 12 808 22 672
 Taiwan 105 1,472 118 229
 Thailand 24 1,032 97 157
 Other disc. 77 -3 3
Memorandum:
Eastern Europe (l) 873 757 1,492 119
European Union 10,053 48,290 8,768 10,236
(EU-15) (2)
OPEC (3) 532 1,088 105 185

 Computers
 and
 electronic Transportation Wholesale
 products equipment trade

All countries 57,596 45,372 140,579
Canada 5,253 17,883 12,653
Europe 24,071 16,806 89,467
 Austria 897 329 821
 Belgium 40 490 2,708
 Czech Rep. -57 338 77
 Denmark disc. 9 disc.
 Finland 170 194 915
 France 1,897 1,345 4,016
 Germany 2,616 5,193 20,878
 Greece -1 0 501
 Hungary -72 516 275
 Ireland 3,992 disc. 2,998
 Italy 7,086 1,202 2,593
 Luxembourg 0 0 disc.
 Netherlands 1,206 1,284 21,016
 Norway -20 -24 317
 Poland disc. 292 49
 Portugal disc. disc. 582
 Russia 23 59 35
 Spain 386 1,540 2,849
 Sweden 360 -431 1,079
 Switzerland 586 disc. 11,882
 Turkey negl. 329 565
 United Kingdom 3,572 3,368 9,901
 Other disc. disc. 325
South America 222 5,176 12,120
 Argentina 39 -422 disc.
 Brazil disc. 577 1,460
 Chile 2 disc. 426
 Colombia negl. disc. 161
 Ecuador 0 disc. disc.
 Peru 0 -1 122
 Venezuela 1 436 253
 Other 0 17 224
Central America -1,699 4,342 3,527
 Costa Rica 10 0 1,008
 Honduras 0 disc. 36
 Mexico -1,796 disc. 2,030
 Panama 0 -5 274
 Other 87 0 179
Other Western
 Hemisphere disc. -13 5,388
 Barbados disc. -13 517
 Bermuda 1 0 2,417
 Dominican Rep. 0 0 146
 United Kingdom
 Islands disc. negl. 336
 Other 1 0 1,972
Africa -119 394 598
 Egypt 0 43 11
 Nigeria 0 4 66
 South Africa 4 330 205
 Other -123 17 317
Middle East 3,231 -7 8
 Israel 3,228 disc. 102
 Saudi Arabia 3 disc. 214
 United Arab Emirates 0 negl. -320
 Other 0 0 12
Asia and Pacific 24,938 5,121 25,734
 Australia 475 1,563 2,664
 China 1,496 1,242 1,332
 Hong Kong 1,760 51 8,201
 India 265 -137 393
 Indonesia 6 disc. disc.
 Japan 3,373 -1 6,544
 Korea 1,996 847 827
 Malaysia 3,981 -8 425
 New Zealand 40 10 483
 Philippines 799 disc. 265
 Singapore 8,489 1,203 disc.
 Taiwan 1,488 disc. 1,264
 Thailand 763 -49 disc.
 Other 7 disc. -79
Memorandum:
Eastern Europe (l) 2 1,196 642
European Union 23,504 14,987 75,942
(EU-15) (2)
OPEC (3) 11 479 207

 Finance,
 Depository except
 institutions DI and
 Information (DI) insurance

All countries 47,525 63,655 299,805
Canada 2,194 2,661 34,181
Europe 30,328 38,142 116,384
 Austria -24 disc. 18
 Belgium 201 638 7,437
 Czech Rep. disc. disc. 223
 Denmark disc. 0 disc.
 Finland -2 0 disc.
 France -146 2,908 3,798
 Germany 3,347 1,412 11,644
 Greece 44 -44 176
 Hungary 26 disc. 33
 Ireland 14,048 445 8,681
 Italy 1,884 239 1,831
 Luxembourg disc. 575 79
 Netherlands 3,470 29 9,277
 Norway 65 29 disc.
 Poland 358 1,485 255
 Portugal 314 3 622
 Russia 172 423 -84
 Spain 874 1,665 3,249
 Sweden 166 disc. 384
 Switzerland -2,711 7,103 3,264
 Turkey 6 496 44
 United Kingdom 7,675 18,596 62,359
 Other disc. 186 disc.
South America 5,963 9,086 81,722
 Argentina 290 343 940
 Brazil 415 1,948 4,406
 Chile 81 1,049 2,228
 Colombia 584 disc. 245
 Ecuador disc. disc. 12
 Peru disc. disc. 124
 Venezuela disc. disc. 337
 Other 124 196 89
Central America 1,360 17,073 8,133
 Costa Rica 26 0 21
 Honduras negl. disc. 7
 Mexico 1,230 16,867 7,193
 Panama disc. 158 889
 Other disc. disc. 22
Other Western 65,208 65,206
 Hemisphere 1,173 -11,978
 Barbados disc. 26,774 774
 Bermuda 362 45,222 45,222
 Dominican Rep. disc. disc. -5
 United Kingdom
 Islands 628 -11,456 16,858
 Other 11 disc. 2,358
Africa 1,196 618 605
 Egypt 6 disc. 11
 Nigeria 0 disc. 0
 South Africa 1,346 disc. 34
 Other -157 241 559
Middle East 1,535 846 1,015
 Israel disc. -1 340
 Saudi Arabia disc. 580 -61
 United Arab Emirates 11 disc. 605
 Other 7 disc. 130
Asia and Pacific 6,310 12,303 65,899
 Australia 334 2,284 5,028
 China 115 413 -49
 Hong Kong 849 1,983 14,951
 India -199 691 341
 Indonesia -189 406 disc.
 Japan 3,179 609 34,215
 Korea 98 2,021 1,583
 Malaysia 254 disc. 246
 New Zealand 194 disc. 696
 Philippines 41 disc. 914
 Singapore 1,462 843 2,912
 Taiwan 73 942 4,275
 Thailand 86 588 disc.
 Other 11 241 -8
Memorandum:
Eastern Europe (l) 759 2,676 1,383
European Union 32,195 27,830 110,842
(EU-15) (2)
OPEC (3) 1,901 1,348 995

Negl. = Less than $500,000 (+ / -).

Disc. =Suppressed to avoid disclosure of data of individual companies.

(1) "Eastern Europe" comprises Albania, Armenia, Azerbaijan, Belarus,
Bulgaria, Czech Rep., Estonia, Georgia, Hungary, Kazakhstan,
Kyrgyzstan, Latvia, Lithuania, Moldova, Poland, Romania, Russia,
Slovakia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.

(2) The European Union (EU-15) comprises Austria, Belgium, Denmark,
Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,
Netherlands, Portugal, Spain, Sweden, and United Kingdom.

(3) OPEC is the Organization of Petroleum Exporting Countries. Its
members are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria,
Qatar, Saudi Arabia, United Arab Emirates, and Venezuela.

Source: Maria Borga and Daniel R. Yorgason, "Direct Investment
Positions for 2003: Country and Industry Detail," Survey of Current
Business, July 2004, found at Internet address http://www.bea.doc.
gov/bea/ARTICLES/2004/07July/0704dip.pdf, retrieved on Aug. 23, 2004.

Table 13
Foreign direct investment position in the United States on an
historical cost basis, 2003, billion dollars

 Manu-
 Manu- Manu- fact-
 fact- fact- uring-
 All uring: uring- Chemi-
 Industries Total Food cals

 Billion dollars

All countries 1,347,994 470,893 15,113 112,602
Canada 92,041 23,343 1,076 -1,509
Europe 1,006,530 383,544 11,373 107,878
 Belgium 9,608 2,843 disc. disc.
 Finland 7,212 4,447 -1 631
 France 170,619 70,169 2,525 29,411
 Germany 137,036 51,190 156 16,049
 Ireland 26,179 2,657 59 140
 Italy 6,695 1,508 disc. 305
 Luxembourg 34,349 12,926 342 disc.
 Netherlands 154,753 59,640 -1,342 25,214
 Spain 4,739 1,588 25 342
 Sweden 21,989 8,979 0 disc.
 Switzerland 113,232 77,630 6,256 18,958
 United Kingdom 283,317 74,243 1,191 10,345
 Other 27,763 9,679 1,245 disc.
Latin America 52,291 5,405 1,214 -552
 South and Central
 America 16,917 -1,607 1,140 -1,743
 Mexico 7,857 788 1,188 -449
 Panama 5,668 -2,672 disc. disc.
 Venezuela 4,447 151 negl. negl.
 Other Western 35,374 7,012 73 1,191
Hemisphere
 Netherlands Antilles 4,680 565 2 443
 UK Islands 25,502 4,377 12 728
Caribbean
Africa 2,344 661 disc. disc.
Middle East 6,766 836 disc. disc.
 Israel 3,205 858 disc. disc.
Asia and Pacific 188,023 57,105 1,325 6,110
 Australia 24,470 3,457 -13 120

 Billion dollars

 Hong Kong 2,189 588 -1 -42
 Japan 152,032 49,833 1,301 5,437
 Korea 2,439 752 disc. 47
 Singapore 2,902 1,703 7 -68
 Taiwan 2,311 1,015 negl. 816
Memorandum:
 European Union 862,630 294,672 3,870 87,115
 (EJ-15) (1)
 OPEC (2) 7,923 29 negl. -97

 Elec-
 Compu- trical
 Pri- ters equip-
 mary and ment,
 and elec- and
 fabri- tronic com- Trans-
 cated Machi- prod- pon- porta-
 metals nery ucts ents tion

 Billion dollars

All countries 18,482 35,502 54,040 53,834 61,570
Canada 3,584 1,867 6,432 199 2,183
Europe 13,956 30,698 30,461 51,476 39,169
 Belgium 353 110 16 12 disc.
 Finland disc. 985 disc. 9 3
 France 906 disc. 8,716 3,277 2,174
 Germany 3,666 2,850 621 disc. 17,036
 Ireland disc. 137 -120 disc. negl.
 Italy 107 93 46 disc. 29
 Luxembourg 199 disc. 70 -6 978
 Netherlands 461 6,763 7,209 1,304 6,540
 Spain disc. -5 6 2 108
 Sweden 863 1,025 292 disc. disc.
 Switzerland 1,021 1,569 463 disc. disc.
 United Kingdom 3,409 4,066 9,147 354 7,206
 Other disc. 9 2,469 disc. disc.
Latin America -509 24 2,632 845 -255
 South and Central
 America -811 -113 -175 -21 -382
 Mexico 260 -42 -133 8 -406
 Panama disc. 2 -10 negl. 1
 Venezuela -1 -18 -2 -7 negl.
 Other Western 302 137 2,808 865 127
Hemisphere
 Netherlands Antilles -7 4 -6 1 -3
 UK Islands disc. 132 disc. 1 130
Caribbean
Africa 13 disc. 2 -4 -14
Middle East 1 disc. 363 -16 -1
 Israel 0 disc. 362 negl. negl.
Asia and Pacific 1,437 2,824 14,149 1,335 20,487
 Australia disc. 70 -8 disc. -47

 Billion dollars

 Hong Kong -5 -5 282 -8 -3
 Japan 1,000 2,767 11,667 1,012 20,522
 Korea 149 negl. 452 -7 10
 Singapore -2 -37 1,741 disc. -3
 Taiwan 1 disc. 137 26 5
Memorandum:
 European Union 11,601 29,098 27,557 11,115 38,538
 (EJ-15) (1)
 OPEC (2) -1 -19 2 -24 negl.

 De-
 posi-
 tory
 Whole- institu-
 sale Retail Infor- tions
 trade trade mation (DI)

 Billion dollars

All countries 188,819 28,341 185,408 80,726
Canada 1,969 1,469 3,880 5,828
Europe 120,727 22,502 165,305 58,903
 Belgium 1,242 disc. disc. disc.
 Finland disc. disc. 318 disc.
 France 12,623 390 30,799 8,352
 Germany 8,952 1,577 28,997 20,245
 Ireland 5,006 disc. 645 disc.
 Italy 827 1,706 25 758
 Luxembourg 1,156 disc. 5,523 0
 Netherlands 6,557 disc. 5,634 disc.
 Spain 128 disc. disc. 1,219
 Sweden 4,117 disc. 94 120
 Switzerland 4,117 291 11,339 disc.
 United Kingdom 73,742 1,631 71,830 10,345
 Other 775 disc. 9,101 422
Latin America 8,391 1,787 -704 3,142
 South and Central
 America 5,474 disc. disc. 2,262
 Mexico 1,440 disc. disc. 383
 Panama 26 3 -7 71
 Venezuela disc. 0 -1 672
 Other Western 2,918 disc. disc. 881
Hemisphere
 Netherlands Antilles 373 disc. disc. 158
 UK Islands 1,671 333 247 286
Caribbean
Africa 364 disc. disc. disc.
Middle East 2,554 disc. disc. disc.
 Israel 139 3 339 1,427
Asia and Pacific 54,814 2,542 16,408 11,360
 Australia 45 -4 disc. disc.

 Billion dollars

 Hong Kong 438 -1 202 283
 Japan 52,383 disc. disc. 8,086
 Korea 1,165 40 10 263
 Singapore 52 disc. 36 212
 Taiwan 348 22 34 630
Memorandum:
 European Union 115,300 22,177 144,705 57,763
 (EJ-15) (1)
 OPEC (2) disc. disc. 8 861

 Profes-
 sional,
 scienti-
 fic,
 Reale and
 Fi- state, techni-
 nance, rental, cal Other
 except and ser- Indus-
 DI leasing vices tries

 Billion dollars

All countries 162,853 50,769 40,245 139,939
Canada 25,332 6,847 879 22,494
Europe 113,419 22,127 36,704 83,300
 Belgium 671 280 121 1,127
 Finland 4 disc. disc. disc.
 France 32,015 301 12,555 3,415
 Germany 10,443 5,549 812 9,271
 Ireland 4,474 385 disc. 9,786
 Italy 1,014 89 6 762
 Luxembourg 157 99 disc. 14,101
 Netherlands 34,768 5,358 6,819 10,055
 Spain 430 18 disc. disc.
 Sweden disc. disc. 332 3,648
 Switzerland 16,766 549 445 disc.
 United Kingdom 9,064 5,455 13,084 23,925
 Other 1,986 689 disc. 4,118
Latin America 13,083 4,705 881 15,601
 South and Central
 America 8,037 487 321 699
 Mexico 728 47 disc. 2,984
 Panama disc. 291 16 disc.
 Venezuela -1 -24 -1 disc.
 Other Western 5,045 4,218 560 14,901
Hemisphere
 Netherlands Antilles 21 843 -7 2,372
 UK Islands 3,148 3,093 685 11,660
Caribbean
Africa disc. 191 disc. 696
Middle East disc. 1,031 disc. 430
 Israel disc. 59 disc. 335
Asia and Pacific 10,784 15,869 1,721 17,418
 Australia 1,549 2,801 101 2,728

 Billion dollars

 Hong Kong 27 164 -2 490
 Japan 9,097 11,997 1,376 13,253
 Korea 95 45 53 17
 Singapore 2 697 5 disc.
 Taiwan disc. 38 38 disc.
Memorandum:
 European Union 94,628 21,089 34,693 77,604
 (EJ-15) (1)
 OPEC (2) 5 957 -6 257

Negl-Less than $500,000 (+ / -).

Disc.=Suppressed to avoid disclosure of data of individual companies.

(1) "Eastern Europe" comprises Albania, Armenia, Azerbaijan, Belarus,
Bulgaria, Czech Rep., Estonia, Georgia, Hungary, Kazakhstan,
Kyrgyzstan, Latvia, Lithuania, Moldova, Poland, Romania, Russia,
Slovakia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.

(2) OPEC is the Organization of Petroleum Exporting Countries. Its
members are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria,
Qatar, Saudi Arabia, United Arab Emirates, and Venezuela.

Source: Compiled from official U.S. Department of Commerce statistics,
"Foreign Direct Investment Position in the United States on a
Historical-Cost Basis, 2003," found at Internet address
http://www.bea.doc.gov/bea/di/fdipos-03.xls, retrieved on Aug. 23,
2004.

Table 14
Employment, capital expenditures, and sales by nonbank U.S.
multinational companies, 1988-2002

Year Employment (thousands of employees)

 Majority
 U.S. U.S. owned
 multinational parent foreign
 companies firms affiliates

1988 22,498 17,738 4,760
1989 23,879 18,765 5,114
1990 23,786 18,430 5,356
1991 23,345 17,959 5,386
1992 22,812 17,530 5,282
1993 22,760 17,537 5,223
1994 24,272 18,565 5,707
1995 24,500 18,576 5,924
1996 24,867 18,790 6,077
1997 26,358 19,878 6,480
1998 26,593 19,820 6,773
1999 30,773 23,007 7,766
2000 32,057 23,885 8,171
2001 31,088 22,907 8,181
2002 30,634 22,400 8,224

 Period percentage change

1988-1999 2.9 2.4 4.5
1999-2000 4.2 3.8 5.2
2000-2001 -3.0 -4.1 0.1
2001-2002 -1.5 -2.2 0.6

Year Capital expenditure (million dollars)

 Majority
 U.S. U.S. owned
 multinational parent foreign
 companies firms affiliates

1988 223,814 177,203 46,611
1989 260,488 201,808 58,680
1990 274,614 213,079 61,535
1991 269,221 206,290 62,931
1992 272,049 208,834 63,215
1993 271,661 207,437 64,224
1994 303,364 231,917 71,447
1995 323,616 248,017 75,599
1996 340,510 260,048 80,462
1997 398,037 309,247 88,790
1998 411,155 317,184 93,971
1999 483,032 369,728 113,304
2000 506,950 396,313 110,637
2001 5337325 422,303 111,022
2002 467,278 350,582 116,695

 Period percentage change

1988-1999 7.2 6.9 8.4
1999-2000 5.0 7.2 -2.4
2000-2001 5.2 6.6 0.3
2001-2002 -12.4 -17.0 5.1

Year Sales (million dollars)

 Majority
 U.S. owned
 parent foreign
 firms affiliates

1988 2,828,209 927,886
1989 3,136,837 1,019,966
1990 3,243,721 1,208,349
1991 3,252,534 1,242,635
1992 3,330,886 1,291,649
1993 3,480,778 1,275,775
1994 3,990,013 1,435,901
1995 4,235,578 1,693,836
1996 4,478,970 1,868,588
1997 4,886,330 1,972,515
1998 4,970,138 1,971,909
1999 5,975,478 2,218,945
2000 6,695,166 2,507,433
2001 6,786,610 2,614
2002 6,483,192 2,656,834

 Period percentage change

1988-1999 7.0 8.2
1999-2000 12.0 13.0
2000-2001 1.4 4.3
2001-2002 -4.5 1.6

Source: U.S. Department of Commerce, Bureau of Economic Analysis,
statistical release BEA 04-16.