First quarter U.S./world high tech trade deficit worsens by $1.4 billion.

WASHINGTON--(BUSINESS WIRE)--Aug. 1, 1995--The 1995 first quarter U.S./world trade balance in electronics products and services was a negative $4.3 billion, 51% more than the negative $2.9 billion reported in the first quarter of 1994, the American Electronics Association (AEA) announced today.

The U.S. technology trade balance with Japan in the 1995 first quarter was a negative $6.6 billion, or 4.8 percent more than the $6.3 billion of the preceding year's first quarter.

With the European Union countries, the United States electronics trade balance was a positive $3.9 billion in the first quarter of 1995, or 18% better than the $3.3 billion a year earlier.

The combined 1995 first quarter electronics trade deficit with Pacific Rim countries (other than Japan) increased more than 22% to $7.1 billion from the $5.8 billion reported in the 1994 quarter.

"First quarter trade figures for our industry show an escalating global trade deficit problem driven by a seemingly permanent $25 billion to $28 billion annual trade deficit with Japan and an increasing negative balance with Pacific Rim countries," stated William T. Archey, AEA president and chief executive officer.

"Having just returned from talks in Japan, I am convinced that it is imperative that the telecommunications and medical technology agreements be faithfully implemented by both Japanese industry and government," Archey added. "Doing so will not eliminate the trade deficit, but it will go a long way toward reducing it."

The American Electronics Association is the country's largest technology trade group, representing more than 3,000 U.S.-based companies spanning the breadth of the industry, from semiconductors and software to mainframe computers and PCS to telecommunications products. For more than 50 years, AEA has been the accepted voice of the U.S. electronics and information technology industry. -0-

                 U.S. Electronics Industry Trade
                    (in billions of dollars)

                          1994                            1995
                           1Q      2Q      3Q      4Q      1Q
U.S./World
----------
Exports                   25.0    25.0    25.2    30.1    29.5
Imports                   27.9    29.7    34.1    36.9    33.9
Balance                   (2.9)   (4.7)   (8.9)   (6.8)   (4.3)

U.S./Japan
----------
Exports                    2.8     2.3     2.5     3.1     3.2
Imports                    9.0     9.1    10.2    10.8     9.8
Balance                   (6.3)   (6.8)   (7.7)   (7.8)   (6.6)

U.S./EU
-------
Exports                    6.1     6.0     5.8     7.2     7.1
Imports                    2.8     2.7     2.8     2.8     3.3
Balance                    3.3     3.3     3.0     4.4     3.8

Pacific Rim (other than Japan)
------------------------------
Exports                    5.9     6.4     6.4     7.4     7.4
Imports                   11.7    13.0    15.1    16.2    14.5
Balance                   (5.8)   (6.6)   (8.7)   (8.8)   (7.1)

Figures are rounded to the nearest $100 million.
() Indicates negative balance.
Source: American Electronics Association.  Statistics based on U.S.
Census Bureau data.

CONTACT: American Electronics Association

John Hatch, 408/987-4232