U.S. COMMERCE TRADE REPORT OMITS FREIGHT COSTS
The Commerce Department said on that
insurance and freight costs for imported goods of 1.45 billion
dlrs were included in the February trade deficit of 15.1
billion dlrs reported on Tuesday.
    The department is required by law to wait 48 hours after
the initial trade report to issue a second report on a "customs
value" basis, which eliminates the freight and insurance
charges from the cost of imports.
    Private-sector economists emphasized that the Commerce
Department was not revising down the deficit by 1.45 billion
dlrs but simply presenting the figures on a different basis.
    A report in the Washington Post caused a stir in the
foreign exchanges today because it gave the impression, dealers
said, that the underlying trade deficit for February had been
revised downward.
    The Commerce department would like to have the law changed
to permit it to report both sets of figures simultaneously.
    "My feeling is the second one is a better report but there's
legislation that requires us to delay it two days," said Robert
Ortner, Commerce undersecretary for economic affairs.
    "But this has been going on for a long time and no one pays
any attention to the second figure."
    The 15.1 billion dlr February trade deficit compared with a
revised January deficit of 12.3 billion dlrs.
    The law requiring a 48-hour delay in publishing the monthly
trade figure excluding freight and insurance was passed in
1979.
    Reportedly the feeling was the first figure, which includes
customs, freight and insurance, allowed a better comparison
with other countries that reported their trade balances on the
same basis.
    The second figure, which would always be lower by deducting
freight and insurance, presents the deficit in a more favorable
light for the Reagan administration.
    Ortner said he would like to see the law changed to
eliminate the 48-hour delay in reporting the two figures.
    "We're considering it," he said, "It's one of those dinosaur
laws and I think it's time has come."
    The second figure, which would always be lower by deducting
freight and insurance, presents the deficit in a more favorable
light for the Reagan administration.
    Ortner said he would like to see the law changed to
eliminate the 48-hour delay in reporting the two figures.
    "We're considering it," he said, "It's one of those dinosaur
laws and I think its time has come."
 Reuter
