Japan’s Trade Surplus With U.S. at Record

Japan posted a record $3.7-billion trade surplus with the United States in July, the Finance Ministry said Friday.

Preliminary figures showed Japan’s exports to the United States in July rose 4.7% from a year earlier to $5.8 billion, while imports from the United States fell 8.6% to $2.1 billion, a ministry report said.

The trade surplus with the United States surpassed the previous monthly high of $3.5 billion registered in April, it said.

Exports of cars to the United States alone rose 18.1% from a year earlier to $1.5 billion. Japan’s auto exports to the United States have been increasing sharply since April, when the government eased restrictions first imposed in 1980.

Trade relations between the two countries have remained strained, with dozens of bills aimed at curbing imports from Japan under consideration in Congress. The U.S. trade deficit with Japan amounted to an estimated $36.8 billion in 1984.

Overall Decline

In the first six months of this year, Japan’s overall trade surplus totaled $17.7 billion. Of the total, the U.S. trade deficit with Japan amounted to $16.8 billion.

Japan’s overall trade surplus in July, however, declined to $4.6 billion from a record $5 billion in June, the ministry said.

It said overall exports totaled $15.3 billion, up 3.2% over a year ago, while imports showed an 8.2% decrease to $10.7 billion.

The new figures came a day after a delegation of U.S. congressmen cautioned Japan that trade relations between the two nations had reached a critical point and that Congress was poised to pass protectionist legislation in the fall.

Action Awaited

They said 57 such bills await action in the House Ways and Means trade subcommittee alone, and support for them increases as the estimated $37-billion U.S. trade deficit with Japan rises each month, the nine congressmen said.

“The time is very, very late and the situation is very, very critical,” said Rep. Sam M. Gibbons (D-Fla.), chairman of the committee and head of delegation. “We cannot over-stress the seriousness of the situation.”

“Something has got to change. There must be a steady, determined effort to reduce this trade deficit,” Gibbons told a news conference as the delegation ended a five-day visit.

Gibbons said the Japanese government’s July 30 action program to open the nation’s markets to more imported goods was “fine” but not enough to appease Congress.

The congressmen said the U.S. trade deficit with Japan will reach $50 billion this year, or one-third of the entire U.S. deficit.

Friday’s report said Japan posted an $879.2-million July trade surplus with the European Common Market. Exports rose by 7% to $1.9 billion from a year earlier, while imports from the 10 member countries declined by 2.7% to $809 million.

With Southeast Asian countries, Japan’s trade surplus totaled $246.5 million during the month. Exports declined 11% from a year earlier to $2.7 billion, and imports also dropped 6.4% to $2.5 billion.

The Middle East is the only area with which Japan registered a trade deficit during the month. It totaled $1.2 billion, with exports declining 17% from a year earlier to $1 billion and imports also declining 16.9% to $2.2 billion.

Crude OPil Import

Crude oil imports from Middle East countries totaled nearly $1.8 billion during the month, or a 20.2% year-to-year fall.

Japan’s trade surplus with Communist countries, except China, amounted to $798.9 million in July. Exports to those countries surged 82.1% from a year earlier to $1.1 billion, while imports increased 7.9% to $713.7 million.

The report said exports to China in July soared 111.4% from a year earlier to $1.2 billion, with imports registering a 10% rise totaling $536.3 million. Japan’s trade surplus with China thus amounted to $648.4 million.