TRADE

Japan Surplus Drops as Imports Soar: The nation’s merchandise trade surplus dropped 23% in July from a year earlier to $9.43 billion, the Finance Ministry said. Japan’s trade surplus with the United States fell 31%, to $3.87 billion from $5.62 billion in July, 1994. Exports to the United States, Japan’s largest trade partner, shrank for the first time in 32 months. A Finance Ministry official said auto exports accounted for much of that decline, plunging 31% to $1.76 billion. Japanese cars have lost competitiveness because of the yen’s rise against the dollar earlier this year. Overall, Japan’s exports expanded by 10% to $38.03 billion, while imports shot up 29% to $28.59 billion.