US trade deficit hits another all-time high
The US trade deficit, swollen by surging imports of oil and textiles, soared to an all-time high of more than $61bn (€47.4bn) in February.
The Commerce Department said the imbalance was up 4.3% from January.
The surging trade deficit is leading to an increase in protectionist pressures as American textile and clothing manufacturers are lobbying the administration to limit imports of Chinese textile and clothing goods to ward off a flood of products now that global quotas have expired.
Critics point to the soaring deficits as evidence that President George Bush’s free trade policies are not working and have instead contributed to the loss of three million American manufacturing jobs since 2000.
The Bush administration argues that the deficit primarily reflects the fact that the US economy has been growing at a much faster pace than the economies of its major trading partners, pushing up imports while dampening demand for US exports.
US Treasury Secretary John Snow is expected to use a meeting of finance officials from the Group of Seven major industrial countries on Saturday to once again lobby for Europe and Japan to pursue more growth-oriented policies.
