MercoPress. South Atlantic News Agency

Record US trade deficit in March

Booming oil prices which are at their highest in over two decades are mostly blamed for the soaring United States trade deficit of March that reached 46 billion US dollars, 9,1% over February, according to the latest report from the US Commerce Department.

The March figure surprised analysts and markets that were expecting a maximum 42 billion US dollars.

This is the biggest monthly rise in imports in eleven years said the US Commerce Department, spurred by higher oil prices and strengthening domestic demand for services and goods.

The March oil deficit expanded 12,2% reaching a record 12,5 billion US dollars, (11,1 billion US dollars in February), as oil imports jumped from 287 million barrels to 331 million barrels.

However US exports also reached record levels expanding 2,4 billion totalling 94,7 billion US dollars in March, helped by a weaker US dollar and stronger global economic growth.

Latinamerica and the Caribbean managed a trade surplus with the US of 6,3 billion US dollars last March, which represents a 20,5% increase over February.

In the first quarter of 2004, Latinamerica accumulated a surplus of 17,2 billion US dollars compared to 15,9 billion US dollars in the same period last year.

Mexico's surplus with the US in March reached 3,8 billion US dollars, up from 3,5 billion in February. However the first quarter surplus was 10, 4 billion compared to 10,8 billion US dollars in 2003.

Brazil that experienced an 84 million US dollars deficit in February managed a 203 million surplus in March. In the first quarter of 2004 Brazil's trade surplus with the US totalled 476 million compared to 1,7 billion US dollars in the same period 2003.

Venezuela a strong US oil supplier had a 1,35 billion US dollar trade surplus in February jumping to 1,7 billion in March, totalling 4,6 billion US dollars in the first quarter of 2004 compared to 2 billion US dollars a year ago.

But the main trade deficits of the US are with China and the European Union. With China it surged to 10,4 billion US dollars in March, 26% expansion over February. Similarly with the EU, the increase was 26% reaching 9,3 billion US dollars.