Kaptur Statement on July Trade Deficit

Statement

Kaptur Statement on July Trade Deficit

The sharp increase in the U.S. trade deficit in July provides another indication of fundamental problems in the national economy, according to U.S. Representative Marcy Kaptur. "The continued deterioration of our trading position in the world economy is yet one more warning sign during a turbulent economic time," said Congresswoman Kaptur, who has been a consistent proponent of fair trade laws and fierce opponent of failed trade deals such as NAFTA.

The U.S. goods and services deficit climbed to $62.2 billion in July, an increase of 5.7 percent over the $58.8 billion figure reported in June. The July deficit was the largest one-month total thus far in 2008.

Congresswoman Kaptur noted that the U.S. trade deficit in petroleum reached $43.4 billion in July, a new record. The U.S. bill for foreign oil totaled $51.4 billion.

The other culprit in the deteriorating trade picture was the continued decline of U.S. manufacturing. Despite a weak dollar, sales of U.S. made manufactured goods in other nations fell to $80.2 billion and the manufacturing trade deficit increased to $53.0 billion.

"The monthly deficit in manufacturing and oil is approaching $100 billion," said Congresswoman Kaptur. "That is an unacceptable flow of wealth out of the hands of the American people into the hands of foreign interests. We need a new trade policy in America before it's too late."

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