Trade gap in October $2.2 billion.
By Raif Karerat
WASHINGTON, DC: The US trade deficit with India increased by another $2.2 billion in October, increasing Washington’s overall trade deficit with New Delhi for the year to nearly $21 billion, the data released by the Department of Commerce on Friday shows.
It is nearly $3.5 billion more than the $17.5 billion trade gap posted in the first 10 months of 2013. The overall trade deficit for last year was $20 billion, which was a record until now.
In October, the United States imported from India goods worth $4.2 billion and exported to the country goods worth $2 billion.
The overall trade volume rose to nearly $55.9 billion, a slight increase from the $54.4 billion posted during the corresponding months in 2013.
Even though its trade gap with India increased to record high, the US trade deficit dipped slightly from $43.6 billion in September to $43.4 billion in October from the previous month because of the low oil prices.
India was the United States’ 10th largest trading partner in October, with the bilateral trade accounting for 1.8 percent of overall US trade volume of $357 billion. So far in 2014, India is the 12th largest US trading partner, accounting for 1.7 percent of the overall volume of $3.31 trillion.
The overall US exports in October was $197.5 billion, while the country’s imports stood at $241 billion.
Canada, China and Mexico were the top three trading partners, with the trade volume with these countries accounting for nearly 45 percent of US foreign trade.
The Commerce Department data comes on the heels of the United States’ announcement that it wants to expand its trade dialogue with India. Trade Representative Michael Froman issued the statement after the resolution of a global trade dispute paved the way for President Barack Obama to visit India.
Direct communication between India’s Prime Minister Narendra Modi and President Obama helped cut political red tape preventing the World Trade Organization from implementing a $1 trillion package of global customs reforms.
“The breakthrough at the WTO could not have been possible without the direct and personal engagement of Prime Minister Modi and President Obama,” Froman told businessmen in New Delhi during a recent speech.