Huge increase in E.E.C. foreign trade deficit

Press, 15 October 1976, Page 5

Huge increase in E.E.C. foreign trade deficit

NZPA Brussels The Common Market has reported that the combined foreign trade deficit of its nine member-countries sank to $9,700M during the first six months of 1976. The E.E.C. Statistics Office attributes the decline to a strong increase in imports resulting from the economic recovery in Western Europe, and to the small demand for European goods from oil-exporting countries in the Middle East and Africa.

The member-countries imported 22.4 per cent more goods from the Middle East and Africa, while their exports to those countries rose only 17 per cent.

The trade deficit with the United States and Japan also worsened. In the first half of this year, the United States exported 133 per cent more to the nine member-states, worth about $13,000M, while the Common Market sold to America goods worth about $8,500M.

In spite of the deficit, European exports to America nevertheless improved 19 per cent compared with the first six months of 1975.

Japan increased its exports to the Common Market 17.4 per cent, while European exports to Japan rose 11.8 per cent, which increased the deficit for Europe from about SISOOM to SIBOOM. The Eastern bloc countries increased their exports to the nine-country Community by 373 per cent, while Com-

mon Market exports to them rose only 1 per cent. Over the six months, the Common Market’s trade surplus with Eastern Europe contracted from about $2600M to about S9M.

The Common Market’s performance was, however, vastly better in trade with China: exports to China rose 57.6 per cent to about SB6OM, while Chinese exports to the Community rose 2 per cent to about S47OM.