Published On: Mon, Mar 2nd, 2020

United States reduces its trade deficit

By Carlo Barbieri

The 2019 numbers brought important news to US economic analysts.

For the first time since 2013, there has been a decline in the deficit in its trade balance.

About 1.7% less was this deficit, which reached $ 616.8 billion in 2019, against $ 17.1 billion in 2018, showing the first effects of changing the policy from multilateral to bilateral agreements and stimulating the return to the country of companies established in other countries.

These changes took place in various sectors of the economy, especially automobiles, pharmaceuticals, corn and commercial aircraft, despite the serious problem faced by Boeing.

In the automobile industry, passenger car imports increased by $ 1.9 billion, but exports increased by $ 4.9 billion.

In commercial used vehicles, such as buses, trucks and other special use vehicles, imports increased by $ 4.8 billion, but exports also experienced an increase of $ 1.6 billion.

In the pharmaceutical industry, there has been a huge increase in imports, given the government’s policy of cheapening the cost of medicines for the American population of $ 16 billion, but there has also been an increase in exports of $ 6.3 billion.

The USA with its oil production having reached a level never seen before in the country increased its export by 35.5%, that is, $ 17.1 billion, and the import of crude oil fell by 19.3%, that is, in values, $ 30.3 billion compared to the previous year.

The main importers were South Korea ($ 3.5 billion), the Netherlands (3.0 billion), India ($ 2.1 billion).

The biggest decreases in imports were: Saudi Arabia ($ 10.2 billion) Venezuela ($ 9.0 billion), Iraq ($ 5.0 billion).

If this movement is expected to continue to occur, however, it may be impacted by the Coronavirus.

New agreements are scheduled to take place in the short term and those signed in recent times are expected to start taking effect in 2020.

Brazil and England should be the main bilateral impact agreements in the next 2 years.

About the Author

- My name is Carlo Barbieri, an entrepreneur, civic activist and a leader of many organizations associated with Brazil. A native of Brazil myself, I am currently the CEO of Oxford Group, a firm composed of many international consulting and trading companies. I am also a founding member of the Brazilian Business Group and founding member and Past President of the Brazil Club. In addition, I serve as a Board member of the Deerfield Chamber of Commerce. I have served as a member of the Florida Chamber of Commerce and the Florida Brazil Partnership. Past President of the Rotary Club – Boca Raton West for the 2014-2015 term, I have also been Vice President and Professor of 2Grow – Human Development. An Ambassador of Barry University in Brazil, I am the former President of the Black Fire Bull Steak House. I have also presided over a number of organizations such as the Brazilian Association of Trading Companies (ABECE), Brazil-China Chamber of Commerce in São Paulo, Brazil-Australia Chamber of Commerce, Brazil-Dominican Republican Chamber of Commerce; director of the Trade Center of the State of São Paulo, Brazilian Association of Freight Forwarders and Brazilian Association of Banks. I was also a local Council member for the Consulate General of Brazil in Miami, for the 2013-2017 term.

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