The US electronics trade deficit, both with the world and Japan, remained virtually unchanged for the calender year 1989 according to estimates by the American Electronics Association based on data for the first three quarters of 1989. The deficit increased 4.2% to just under $10,000m from $9,600m in 1988. The deficit with Japan is expected to be $20,500m, virtually the same as the 1988 figure. The lack of progress in reducing the US electronics trade deficit with the rest of the world is largely blamed on the imbalance in trade with Japan, which has essentially not changed since 1979 according to the industry lobby. The deficit with the rest of the world for the first nine months of 1989 increased by 4.5% to $6,600m. US exports grew 7.1% to $45,500m and imports increased 6.7% to $52,300m.Full-year projections suggest that the US balance of trade with the rest of the world improved in five of nine categories, including computers, with an improvement of $600m for a surplus of $3,300m; exports rose 3.7% to $25,200m; imports rose 6.8%. The semiconductor trade deficit improved by $1,900m to reach UKP2,800m; exports rose by 16.4% to $17,700m while imports rose 3%. The deficit in telecommunications increased by $300m to $3,400m. Projections with Japan show improvement in only three categories, including computers and consumer products, the six others showed deficit increases. The projected US computer deficit with Japan fell by $400m to $5,700m with exports rising 30% to $3,400m and imports by 4.6%. The telecommunication equipment deficit increased by $1,200m to $3,700m and the semiconductor deficit increased by $300m to $5,300m.
