The US recorded a US$435.2 billion trade deficit for last year, the largest imbalance in history, as the weak global economy set back American exports while imports of autos and other consumer goods were hitting all-time highs.
Even in agricultural products, normally a US bulwark, Americans bought more imported wine, cheese and other foods than American farmers were able to sell abroad -- resulting in only the second US trade deficit in agricultural products on record.
The Commerce Department reported that the deficit for all of last year was up 21.5 percent from the US$358.3 billion trade gap recorded in 2001 and surpassed the old record deficit of US$378.7 billion set in 2000.
By country, the US ran up the largest trade gap with China, a deficit of US$103.1 billion, marking the third straight year that the US has recorded its largest trade deficit with that nation. It pushed the former front-runner in this category, Japan, into second place.
In addition to the record for all of last year, the US set a new monthly high of US$44.2 billion in December, up 10.5 percent from the previous record set in November of US$40 billion.
Opponents of President George W. Bush's trade policies contend that the huge trade deficits represent the loss of millions of manufacturing jobs as US companies have been battered by what the critics say is unfair competition from low-wage countries that stifle labor rights and have lax environmental protections.
Bush believes that it is pursuing the correct procedure in trying to cut global trade deals that will lower high barriers in other countries in a way that boosts American exports.
American manufacturing companies have been lobbying for the Bush administration to drop its support for a strong dollar policy, arguing that an overpriced dollar has made their goods noncompetitive in foreign markets while opening them to a flood of competition from cheaper priced imports.
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