MercoPress. South Atlantic News Agency

Record US trade deficit last August.

Oil prices and China's monetary competitiveness are blamed for the last August 54 billion US dollars trade deficit, the second highest in recent United States history.

Oil prices this week closed above 55 US dollars the barrel with the US the world's main importer. China's record sales of cellular phones, toys and television sets were another determinant ingredient.

US Commerce Department reported that the August deficit was 6,9% higher than the 50,5 billion US dollars of July. Exports actually increased 0,1% but imports rushed ahead 2,5%.

So far this year the US trade deficit stands at 590 billion US dollars, 19% above the 496,5 billion of 2003.

The 2,5% August import increase reached 150,1 billion US dollars with a 12,2% increase in oil purchases equivalent to 15,6 billion US dollars.

August exports increased 0,1% totalling 96 billion last August, but were below the 3% jump last July. Analysts were expecting a better performance of US dales overseas. Anyhow US made cars and spares reached a record 7,8 billion US dollars last August.

US trade deficit has become a presidential campaign issue with Democrat Senator John Kerry accusing President George Bush of not doing sufficient to protect US workers from cheap overseas labor in countries such as China.

The Chinese currency is pegged to the US dollar so the weakened greenback has been unable to counter balance Chinese trade aggressiveness contrary to what has happened in Europe with the stronger Euro and Japan with the Yen.