U.S. Trade Surplus Attributed to Cash From Gulf Allies

The U.S. balance of international payments recorded a surplus during the first quarter of this year for the first time since 1982, largely because of cash contributions from U.S. allies to help underwrite Operation Desert Storm, the Commerce Department reported Tuesday.

The U.S. current account--which includes earnings from tourism and banking as well as trade in goods and services--posted a $10.2-billion surplus during the period, following a revised deficit of $23.4 billion in the final quarter of 1990.

However, analysts said that the push into surplus was an aberration, largely caused by the onetime war contributions and a continuing decline in the nation’s trade deficit. It was the first surplus recorded since the April-June quarter of 1982.

During the first three months of this year, the United States received $22.7 billion of a total of $53.5 billion pledged by U.S. allies in the war. A $7.4-billion decrease in the deficit on goods, services and income also contributed to the figures.

The first quarter showed a $9.4-billion decline in the trade balance for merchandise to a total deficit of $18.4 billion. Petroleum and non-petroleum imports declined from $128.3 billion to $119.3 billion.

“The current account would have moved into surplus just with the transfers from coalition partners, but it wouldn’t be such a large surplus without the decrease in imports,” Commerce Department spokesman Robert E. Nicholson said.

Nicholson said that the decline in U.S. spending on imports was partly attributable to lower prices of crude oil and partly attributable to weak demand for goods and services resulting from the decline in the economy.

“But I would be hesitant to attach any larger significance to this,” he added.

Nicholson said he doubts that the current account will show such a surplus in the second quarter of 1991. Instead, analysts expect the trade gap to open up again as the economy begins an expected pullout from the current recession. An improved economy would probably spark renewed consumer interest in imported goods.

Exports for the quarter hovered at $100.9 billion.

U.S. Trade on a current account basis ‘91: $10.2 billion Numbers are rounded Source: Dept. of Commerce * FREE-TRADE NEGOTIATIONS: Talks between the United States, Mexico and Canada get under way. D2