116 



Feature Story: Agriculture's Trade Balance Retains Second 

 Place Among Eleven Major U.S. Industries in 1993 



Agriculture continues its unbroken 30-year record of trade surpluses. 

 In I99J. it retained its position as the second largest positive 

 contributor to the total U.S. merchandise trade balance with a 

 surplus of $17.0 billion, and was one of only four industries to 

 achieve a positive trade balance. With 1994 agricultural exports 

 expected to rise roughly the same amount as imports. FAS projects 

 agriculture's trade surplus to remain relatively unchanged and 

 continue as a bright spot in the nation's balance of trade picture. 



For several ye.irs. tlio Foreign 

 Agricultural Service has tracked anil 

 repotted on the trade performance of 1 1 

 major U.S. industries. Agriculture 



recorded a trade surplus of $17.6 pilliuti 

 in calendar year 1993. This placed 

 agriculture behind top-ranked 

 aircral'l/ships/trains (524.8 billion) and 

 ahead of chemicals (S16.fi billion) and 

 industrial machinery C$11.3 billion). 

 The remaining seven industries tracked 

 by FAS all recorded trade deficits. The 

 industries which continued to record [he 

 largesi trade deficits were road vehicles, 

 mineral fuels and products and 

 textiles/apparel. 



In 1993. agriculture retained its ranking 

 as the second largest positive 

 contributor to the U.S. merchandise 

 trade balance. The total U.S. 

 merchandise trade deficit grew 535.5 

 billion to S135.6 billion in 1993. a 35- 

 percent increase from the previous year. 



Agriculture's net positive contribution 

 fell $600 million while the non- 

 agricultural portion of the trade halance 

 deteriorated $34.9 billion to - $153.2 

 billion. 



Compared to the previous yea/, total 

 U.S. merchandise exports rose 3 percent 

 tu $439.3 billion in 1993. Six 

 industries accounted (or two-thirds of 

 all exports, with industrial machinery 

 clearly in the lead at $59.5 billion. 

 Seven of die 1 1 industries recorded 

 sales gains from the previous year. 

 Although agricultural exports fell to 

 542.5 billion, down S300 million from 

 1992. agriculture maintained its rank as 

 the Fifth largest export industry 

 accounting for 10 percent of total U.S. 

 merchandise exports. Of the four 

 industries ranked ahead of agriculture in 

 export value, only industrial machinery 

 and chemicals registered trade 

 surpluses. 



Agriculture was Second Largest Contributor to 

 U.S. Merchandise Trade Balance In 1993 



(80) (60) (40) (20) 20 

 Billion Dollars 



40 60 



Turning to the other half of itic 

 equation, total US. merchandise 

 imports reached S.574.'< billion, up '; 

 percent from 1992. Road vehicle 

 imports were clearly in the lead at 

 SSft.9 billion. but imports of 

 miscellaneous manufactured articles and 

 household/electrical appliances were 

 also significant at $72 billion j/id $7l..S 

 billion, respectively. All industries, 

 with the exception o t 

 aircraft/ships/traiiis. recorded higher 

 imports in 1993. Agriciillu/al impnns 

 rose 5300 million to $24.9 billion, up I 

 percent from the previous year. 

 Agriculture remained the third smallest 

 import industry, accounting for only 4 

 percent of total U.S. merchandise 

 imports. 



"Die total U.S. merchandise trade deficit 

 stood at SI 35.6 billion in 1993 

 Without agriculture, the total trade 

 deficit would have risen to $153.2 

 billion, a 13-percent increase over the 

 actual figure. Although a relatively 

 open import regime and rising 

 consumer demand for imported foods 

 are expected to fuel the long-term 

 growth in U.S. agricultural imports, 

 agricultural export gains should 

 continue outpacing the growth in 

 imports over the next several years. 



This article summarises the U.S. trade 

 balance using trade in goods only. 

 Beginning in 1994. the Department of 

 Commerce will expand Its reports to 

 include trade in both goods and 

 services. This new. more complete 

 method of measuring international trade 

 will reduce the current trade deficit 

 figure, because the United States now 

 enjoys a positive trade balance in the 

 services sector. Services recorded a 

 trade surplus of $55.7 billion in 199J. 



For mnrt tnforniuttiin rnnlilCt Erniril 

 Can,, at 1202) 720-2V22. 



TEaD'FAS 1202) 720-I2VJ 



April 1994 



Tends Hitflllii(ntS ■ S 



