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If You Respond to BEA’s International Surveys, Please Read This!

Published July 12, 2012 BEA News , International Leave a Comment
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New changes in the method of informing businesses about requirements for submitting Bureau of Economic Analysis (BEA) surveys will increase the efficiency of the process and reduce paperwork for both survey respondents and BEA. The new procedures involve the collection of data through BEA’s surveys of direct investment and international trade in services.

In the past, each time BEA made a change to the reporting requirements for a survey, it was also required to change the federal regulations regarding that survey. This required public notification and a period to receive comments—known as a rulemaking—before the change could go into effect. For instance, a rulemaking was required to change the reporting threshold of a survey or to add or delete certain items from the survey. Under the new procedures, BEA will directly notify survey respondents about any future changes to reporting requirements, streamlining what at times had been a cumbersome process.

For its mandatory annual and quarterly surveys, BEA will publish a notice with specific reporting requirements—including who is required to respond to the survey, the manner of reporting, identification of applicable report forms, and the time and place of filing reports—in the Federal Register. We will also directly notify survey respondents by mail that they are required to file.

BEA published its plans to make this change in the Federal Register and gave the public a chance to comment on it. The final rule establishing this new procedure can be found here.

The new rule is NOT retroactive. It does not apply to any surveys that were approved before the rule establishing the new procedure was finalized. Direct investment and international trade in services surveys that BEA is currently conducting—the 2011 BE–11, 2011 BE–15, 2012 BE–12, 2012 BE–29, 2012 BE–120, and all 2012 quarterly surveys—will continue to operate under the regulations established under the most recent relevant rulemaking action prior to April 24, 2012.

May Trade Gap is $48.7 Billion

Published July 11, 2012 BEA News , International , Trade Deficit , Trade in Goods and Services Leave a Comment
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The U.S. monthly international trade deficit decreased in May, according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit decreased from $50.6 billion (revised) in April to $48.7 billion in May, as imports decreased and exports increased. The previously published April deficit was $50.1 billion. The goods deficit decreased $1.6 billion from April to $63.5 billion in May, and the services surplus increased $0.3 billion to $14.8 billion.

Exports of goods and services increased $0.4 billion in May to $183.1 billion, mostly reflecting an increase in exports of services. Exports of goods also increased.

The increase in exports of goods was more than accounted for by increases in foods, feeds, and beverages and capital goods. A decrease in industrial supplies and materials was partly offsetting.

The increase in exports of services was mostly accounted for by increases in other private services, which includes items such as business, professional, and technical services, insurance services, financial services, and passenger fares. Changes in the other categories of services exports were small.

Imports of goods and services decreased $1.6 billion in May to $231.8 billion, reflecting a decrease in imports of goods. Imports of services increased.

The decrease in imports of goods was more than accounted for by a decrease in industrial supplies and materials. An increase in capital goods was partly offsetting.

The increase in imports of services was more than accounted for by an increase in other private services. A decrease in passenger fares was partly offsetting. Changes in the other categories of services imports were small.

Goods by geographic area (not seasonally adjusted)
The goods deficit with Canada decreased from $3.3 billion in April to $2.2 billion in May. Exports increased $1.2 billion to $25.6 billion, while imports increased $0.1 billion to $27.8 billion.

The goods deficit with China increased from $24.6 billion in April to $26.0 billion in May. Exports increased $0.4 billion to $8.9 billion, while imports increased $1.9 billion to $34.9 billion.

The goods deficit with Mexico increased from $5.4 billion in April to $6.3 billion in May. Exports increased $1.2 billion to $18.5 billion, while imports increased $2.1 billion to $24.9 billion.

To learn more about U.S. international trade in goods and services, read the full report.

Value of Foreign Investment in the U.S. Increased More than Value of U.S. Investment Abroad in 2011

Published June 26, 2012 BEA News , International , International Investment Position Leave a Comment
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The U.S. net international investment position at yearend 2011 was –$4,030.3 billion (preliminary), as the value of foreign investment in the United States exceeded the value of U.S. investment abroad. At yearend 2010, the U.S. net international investment position was –$2,473.6 billion (revised).

Increases in the prices of U.S. Treasury bonds and declines in foreign stock prices raised the value of foreign investment in the United States and lowered the value of U.S. investment abroad.

The impact of changes in U.S. and foreign asset prices of –$802.1 billion accounted for over half of the –$1.6 trillion change in the U.S. net international investment position.

Most of the rest of the change in the U.S. net international investment position reflected foreign acquisitions of U.S. assets (including over $400 billion in U.S. Treasury securities) that exceeded U.S. acquisitions of foreign assets. U.S. acquisitions of foreign assets were reduced by an unusual decline in U.S. claims on foreigners as reported by U.S. banks and securities brokers.

The appreciation of the U.S. dollar against a trade-weighted index of major currencies caused a change of –$23.0 billion in the U.S. net international investment position.

The U.S. net international investment position was equal to 2.6 percent of the value of all U.S. financial assets at the end of 2011, up from 1.6 percent in 2010 and up from the recent peak of 2.3 percent in 2008.

To learn more about the U.S. international investment position read the full report.

New Study Provides Profile of U.S. Firms that Export and Import Services

Published June 21, 2012 BEA News , International , Trade Deficit , Trade in Goods and Services Leave a Comment
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Chart of trading partnersData from the Bureau of Economic Analysis (BEA) show that the United States has historically maintained a trade surplus in private services.  So what types of firms are involved in this kind of trade abroad?  Thanks to a new BEA study we have a better understanding of the kinds of American companies that export and import services.

Here are some of the key findings:

• Firms in industries typically associated with the production or sales of manufactured goods are significant services traders, accounting for more than 25 percent of exports and imports covered by the study.  Trade in services by manufacturers largely consists of transactions related to the use or creation of intellectual property, the provision of headquarters’ management and support services, or the allocation of expenses.

• Multinational companies, especially U.S. parent companies, are important services traders, accounting for more than 80 percent of trade in services with both affiliated (their own foreign branches) and unaffiliated parties.  U.S. parents tend to have larger transactions, trade with more countries, and trade more service types as compared to U.S. affiliates of foreign parents and non-multinationals.Chart of services types traded

• Business, professional, and technical services, especially research and development, testing services, and management and consulting services, accounted for more than one third of trade by both U.S. parents and U.S. affiliates.

• Many small firms engage in services trade, but large firms dominate the value of trade.

• The trade in services of multinational companies is dominated by transactions with their affiliated parties.  This is especially true for business, professional, and technical services, and royalties and license fees.  Financial services trade, such as brokerage and advisory and management services, is primarily with unaffiliated parties.  Those findings are based on a new data set that combines data from surveys on cross-border trade in services with data on the operations of multinational companies.

In 2008, trade in services included in the study—financial services; insurance; royalties and license fees; telecommunications; and business, professional, and technical services (excluding medical services)—totaled $302.3 billion in exports and $195.6 billion in imports, resulting in a surplus on trade of $106.7 billion.  These services accounted for more than half of total private services exports and imports, and nearly three-quarters of the $148.3 billion U.S. surplus on private services trade in 2008. To learn more about the characteristics of U.S. exporters and importers of services, read the full article.

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