[Congressional Record Volume 140, Number 96 (Thursday, July 21, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 21, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                     THE MESSAGE IN TRADE DEFICITS

  (Mrs. BENTLEY asked and was given permission to address the House for 
1 minute and to revise and extend her remarks.)
  Mrs. BENTLEY. Mr. Speaker, yesterday's media reported that the U.S. 
merchandise trade deficit is $12.7 billion for May and the yearly 
deficit would approach $140 billion. This is the second highest deficit 
in U.S. history. Despite the lower yen, the deficit with Japan is still 
10 percent ahead of last year's at $24.9 billion. The deficit with 
China is up 22 percent, as is the deficit with the newly industrialized 
Asian countries and Europe.
  The Secretary of Commerce claims the answer is to open more markets. 
That sounds fine, but many of the products we buy from Japan and other 
places in the world cannot be substituted or replaced, overnight so 
these are not affected with currency fluctuations. These products 
include items such as ceramic packages for microcomputers and flat 
panel screens from Japan and oil from the Middle East. Obviously, there 
is something wrong with the standard theories that cheaper currency 
makes it easier to sell products abroad. This is true when you 
manufacture items that are useful. The message we should learn from the 
trade deficit is the United States needs to rebuild an industrial base 
and create more jobs in America.

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