US trade gap may hit
US$240b on falling exports to
Asia
HE US trade deficit could swell to as much as US$240
billion (S$388.8 billion) this year, shattering a decade-old
record, as the nation's exports to Asia slide, US Trade
Representative Charlene Barshefsky said.
Ms Barshefsky said the deficit is largely being driven by declining
US exports, rather than a burst of imports to this country. "The
overall import surge that many people had expected has not
happened," she said.
She briefed reporters ahead of the Asia-Pacific Economic
Cooperation forum summit, saying it will discuss ways to alleviate
poverty in Asia as the recessions sweeping the region expand the
jobless ranks. And she predicted the leaders will reject Malaysia's
bid for support for currency controls.
She reserved her harshest criticism for Japan. "The biggest challenge
we face is what I would call the problem of Japan. Thus far, Japan
has played a destructive role on Apec, and we are encouraging it to
play a constructive role, which I think it can do."
Plans by Apec leaders to open nine industries to more imports may
be thwarted by Japan's reluctance to cut tariffs on forest and fishery
products, Ms Barshefsky said, echoing comments by her deputy,
Richard Fisher.
The troubles in Asia are hurting demand for US exports. Its exports
to the Association of South-east Asian Nations fell 17 per cent in
the first seven months of this year, according to US-Asean Business
Council.
As a result, the US global trade deficit through August is already just
shy of last year's total US$110.21 billion -- and the widest since it
was US$115.9 billion in 1988, the government says. The highest
full-year US trade deficit on record was the US$153.3 billion
posted in 1987.
The deficit may widen to US$300 billion next year, Ms Barshefsky
said. -- Bloomberg
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