WASHINGTON – U.S. Rep. Benjamin L. Cardin, Ranking Member on the Trade Subcommittee of the Ways and Means Committee, today condemned a record U.S. trade deficit that grew to more than $617 billion in 2004, more than 5% of the entire U.S. economy, according to the U.S. Department of Commerce.

"I am tired of watching ships arrive at the Port of Baltimore filled with cargo for U.S. consumers and then leave empty. We cannot allow a trade deficit of this magnitude to continue; it is causing irreparable harm to American workers, farmers and businesses and it is jeopardizing our economic future," said the Congressman.

Rep. Cardin pointed to the growing trade deficit in advanced technology products (ATP) as an alarming trend "that clearly threatens our computer and high technology industries." Until 2001, according to the U.S. Census, the United States had a consistent trade surplus in ATP, averaging a $28 billion surplus in the 1990s. In 2002, for the first time, the U.S. became a net importer of ATP, and in 2004, the U.S. trade deficit in ATP grew to more than $37 billion.

The Congressman also pointed to a sharp decline in the service and agriculture sectors. "In service industries -- insurance, banking, legal, investment -- we’ve seen almost a one-third drop since 2001. By 2010, the United States could well become a net importer of services." He also pointed to a report by the U.S. Department of Agriculture showing that the U.S. trade balance for farm products in 2005 will not be in surplus for the first time in about 50 years.

"Trade deficits of this magnitude threaten our economy and lead to massive amounts of borrowing from foreign governments," he said. The Congressman pointed to the fact that

in the last four years, debt held by foreign countries has doubled and now stands at more than $1.9 trillion, 20% of total annual U.S. output.

The Congressman also highlighted:

* Since 2002, China has increased its ownership of U.S. IOUs faster than any other country. The United States now owes China more than $191 billion, and Japan, the largest holder of foreign debt, $714 billion;

* We have such a serious trade imbalance with China that currently five out of six ships arrive in China empty;

* In 2003, 7% of all U.S. exports to China were waste products -- scrap metals and recyclable paper products. From 2000-2003, U.S. waste exports to China, as percent of all U.S. exports increased 41%;

* Since 2001, we’ve seen an 22% decline in exports of Information and Communications ATP products, while imports have increased 20%. The United States has lost nearly 40% of all U.S. communications equipment jobs; and,

* In the last four years, Boeing has lost 13 points of market share to Airbus while Airbus has received subsidies totally $6 billion.

Rep. Cardin stressed the need for a "revitalized and energized" approach to trade by the Bush Administration. He specifically criticized the Administration for "failing to effectively use the World Trade Organization (WTO) to remove foreign trade barriers to U.S. exports and intellectual property." The Congressman also said the Administration has been ineffective in using U.S. trade laws to ensure a level playing field and to prevent injury to U.S. workers and firms from import surges.

"While the Bush Administration has focused on implementing small bilateral agreements that -- combined -- will have a very small impact on our economy, it has failed to aggressively move forward to major WTO talks, which are at least two years behind schedule. It’s time for a new direction in trade that stands up for American workers, farmers and businesses."

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