By Bruce Odessey
Washington File Staff Writer

Washington -- The U.S. trade deficit dropped in February as U.S. exports surged 4 percent from the previous month, the largest monthly increase in seven years, the U.S. Department of Commerce reports.

In an April 14 report, the department calculated the February deficit at a seasonally adjusted $42.1 billion, down from the revised January record deficit of $43.5 billion. The February deficit comprised a goods deficit of $47.2 billion and a services surplus of $5.2 billion.

U.S. exports in February increased to $92.4 billion, up from January for nearly all major trade partners except Mexico. Among the biggest increases were those in civilian aircraft, industrial machines, oil-drilling equipment, measuring instruments, semiconductors and other capital goods, and autos and auto parts.

Meanwhile, U.S. imports in February also went up, but at a slower pace -- about 1.6 percent -- to $134.5 billion. There were sizable import gains in autos and auto parts, natural gas and other industrial supplies, and fish and shellfish. There were sizable drops in civilian aircraft, computers and other capital goods, and in consumer goods, especially toys and games.

U.S. imports of crude oil dropped in February, a short month, to $8.4 billion even though the price went up to $29.17 per barrel, the highest level since the previous March.

The U.S. bilateral trade deficit with China went down in February by 28 percent to $8.3 billion. The deficit with Canada fell to $5 billion. Trade deficits went up with Japan, to $6.1 billion; the European Union, $7.4 billion; and Mexico, $3.6 billion.

Following are some key figures:

U.S. GOODS AND SERVICES EXPORTS, IMPORTS AND TRADE BALANCE
Millions of dollars, on a balance of payments basis, seasonally adjusted

Trade balance Exports Imports
Jan.-Dec. 2002 -418,038 974,107 1,392,145
Jan.-Dec. 2003 -489,911 1,018,720 1,508,632

Jan.-Feb. 2003 -78,596 164,750 243,346
Jan.-Feb. 2004 -85,545 181,184 266,729
February 2003 -38,589 82,691 121,280
February 2004 -42,086 92,366 134,452
U.S. GOODS EXPORTS, IMPORTS AND TRADE BALANCE
Millions of dollars, on a balance of payments basis, seasonally adjusted
Trade balance Exports Imports
Jan.-Dec. 2002 -482,872 681,874 1,164,746
Jan.-Dec. 2003 -549,156 713,788 1,262,945
Jan.-Feb. 2003 -88,461 115,077 203,538
Jan.-Feb. 2004 -95,753 126,940 222,693

February 2003 -43,628 57,920 101,548

U.S. SERVICES EXPORTS, IMPORTS AND TRADE BALANCE
Millions of dollars, on a balance of payments basis, seasonally adjusted
Trade balance Exports Imports
Jan.-Dec. 2002 64,834 292,233 227,399
Jan.-Dec. 2003 59,245 304,932 245,687
Jan.-Feb. 2003 9,865 49,673 39,808
Jan.-Feb. 2004 10,208 54,244 44,036

February 2003 5,039 24,771 19,732
February 2004 5,151 27,306 22,155
U.S. GOODS EXPORTS, IMPORTS AND TRADE BALANCE, BY COUNTRY
Millions of dollars, on a Census basis, not seasonally adjusted

Bilateral February February
balance exports imports

Total -41,204 63,546 104,750

North America -8,559 22,472 31,031
Canada -4,978 14,413 19,391
Mexico -3,581 8,058 11,639

Western Europe -8,122 14,690 22,813
Euro Area -5,837 10,267 16,104
European Union -7,358 13,624 20,982
Austria -203 154 356
Belgium 338 1,275 937
Finland -143 148 291
France -678 1,578 2,255
Germany -3,476 2,500 5,976
Italy -1,312 777 2,089
Netherlands -1,158 2,077 919
Spain 54 604 550
Sweden -809 260 1,068
United Kingdom -611 2,890 3,501
Other EU -1,677 1,362 3,039

European Free Trade
Association -648 762 1,410
Norway -356 132 489
Switzerland -251 618 868
Other EFTA -41 12 53
Other Western Eur. -116 304 421

Eastern Europe, Former
Soviet Reps. -800 796 1,595
Hungary -72 225 296
Poland -54 64 119
Former Sov. Reps. -521 370 890
Russia -445 201 646
Other FSR -76 169 245
Other Eastern Europe -153 137 289

Pacific Rim -15,979 16,743 32,722
Australia 622 1,068 446
China -8,281 3,034 11,315
Japan -6,052 4,111 10,164
Newly Industrialized
Countries -549 6,535 7,084
Hong Kong 724 1,256 532
South Korea -851 2,238 3,089
Singapore 232 1,389 1,157
Taiwan -654 1,652 2,306
Other Pacific Rim -1,719 1,994 3,713

South/Cent. America -1,950 4,877 6,827
Argentina 15 244 229
Brazil 84 1,322 1,238
Colombia -161 356 517
Other S/C America -1,889 2,954 4,843

OPEC -4,700 1,432 6,132
Indonesia -542 220 763
Nigeria -1,083 95 1,178
Saudi Arabia -996 323 1,320
Venezuela -1,353 310 1,663
Other OPEC -726 483 1,209

Other countries -2,989 3,066 6,055
Egypt 190 273 83
South Africa -60 258 317
Other -3,120 2,535 5,655

NOTE: Data on a Census basis reflect movement of goods into and out of the United States through U.S. Customs Service stations. Balance-of-payments basis data adjust Census data to include products that bypass Customs, such as exports of military aircraft and imports of electricity from Canada.