EXPORTS, IMPORTS, and TRADE BALANCE

KEY ECONOMIC EVENTS

• The economic performance of the United States and all of its major trading partners improved in 2004, but the growth of the U.S. economy outstripped most of its partners’. As a result, the increase in U.S. demand for foreign goods exceeded the increase in foreign demand for U.S. products.
  
  
• In 2004, U.S. exports in each merchandise sector except for footwear increased, for an overall rise of $75.8 billion (12 percent) to $727.2 billion, exceeding export levels in 2000 and recovering completely from the decline during 2000–2002. Semiconductor manufacturing equipment, medicinal chemicals, and telephone and telegraph apparatus together accounted for $13.1 billion (17 percent) of net export growth.
  
  
• In 2004, U.S. imports for all merchandise sectors recorded an overall increase of $210.1 billion (17 percent) to about $1.5 trillion. Although a number of industry groups recorded major import growth, crude petroleum and petroleum products, computers and parts, and steel mill products accounted for $64.5 billion (31 percent) of the net import increase.
  
  
• The U.S. merchandise trade deficit expanded from $598.7 billion in 2003 to $733.0 billion in 2004, as imports increased approximately three times faster than exports.

SECTOR SHIFTS

| Agricultural Products | Forest Products | Chemicals and Related Products |
| Energy and Related Products | Textiles, Apparel, and Footwear |
| Minerals and Metals | Machinery | Transportation Equipment |
| Electronic Products | Miscellaneous Manufactures |

COUNTRY SHIFTS