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Archive for Wednesday, February 14, 2007

Trade deficit sets record for 5th year in a row

February 14, 2007

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— The U.S. trade deficit set a record for a fifth straight year, and the imbalance with China soared to an all-time high as well.

The Bush administration pledged to keep pursuing its free-trade policies, while Democrats now controlling Congress demanded a change in course.

The gap between what the U.S. sells abroad and what it imports rose to a record $763.6 billion last year, up 6.5 percent from the previous record of $716.7 billion in 2005, the Commerce Department reported Tuesday.

For December, the deficit jumped a bigger-than-expected 5.3 percent to $61.2 billion.

Bush administration officials said the wider deficits were primarily a factor of faster growth in the United States and warned against pursuing policies that would erect protectionist trade barriers in this country.

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