Thursday, February 14, 2008

US Trade Deficit Down 6.9% in 2007

This after hitting record levels for 5 straight years. The deficit with China was up 10.2% however.

December 2007 - petroleum imports were more than half the total U.S. trade deficit, but non-petroleum products fell to $34.8 billion, its lowest level since November of 2003.

The U.S. had record exports to China of $6.9 billion and trade deficit with that country fell 21.5% to $18.8 billion.


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CNN attributes this to a slowing in the economy - which I am sure accounts for part of it. I would bet though that the rest stems from the weaker dollar, which makes American goods cheaper overseas.

In related news the WTO ruled that China's taxes on foreign made car parts was protectionist. This was the first WTO defeat for China. I am pretty sure it won't be the last. There are a ton of complaints moving through the system already.

source

Below is the Chinese ambassador reacting to the ruling:



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