Top > Business > 2006 > September > 2006-09-14

Trade Deficit of U.S. Shatters Records

The U.S. trade deficit has reached an all-time high, as soaring oil prices and a cooling economy bring the gap to $68 billion. According to the Department of Commerce, the federal government spent a record amount on foreign oil purchases, and America has lost nearly 3 million manufacturing jobs since George W. Bush took office in January 2001. NY Democratic Congressman Charles Rangel said, "These record trade deficits are proof positive that the current trade agenda is not working for America."

U.S. Senator Byron Dorgan of North Dakota said, "America`s trade policies are a miserable failure. We are choking on debt, a substantial portion of which we owe to China and Japan." In July, U.S. exports fell 1.1 percent to $120 billion, while imports rose to a high of $188 billion, an increase of 1 percent from June. America`s foreign oil debt climbed 4.8 percent, to an all-time high of $28.5 billion, the amount reflecting the record price of oil in July.

The Citizens Trade Campaign, a vocal opponent of the Bush administration`s trade policies, says that the huge trade deficits and the loss of good manufacturing jobs are key concerns for voters. "Voters are seeing the disappearance of good jobs, downward pressure on wages and the erosion of benefits, and know that the Congress has allowed this to happen," said Chris Slevin of the CTC, which is a coalition of labor, environmental and consumer groups.