U.S. Agricultural Trade

U.S. agricultural trade has improved significantly since the mid-1980's. Exports jumped from $26 billion in 1986 to $40 billion in 1990, and import growth slowed as the world economy and U.S. competitiveness improved. Farm exports outpaced imports (table 1), more than tripling the U.S. agricultural trade surplus to nearly $18 billion—the seventh highest ever. Despite agriculture's trade gains over the last 5 years, the sector has not completely recovered to the record-high early- 1980's levels. In 1990, exports were higher than in the mid-1980's, but lagged earlier years. Export value remained 8- percent below the 1981 record. The volume of exports was also substantially below peak levels. Export volume totaled 148 million tons in 1990, compared with more than 160 million tons at the beginning of the 1980's. At the same time, imports hit their third consecutive record high in 1990, rising $1 billion to $22.5 billion. Imports of products that compete with domestic agriculture have continued to surge, offsetting the beneficial effects of declining prices for tropical imports which do not compete with domestic production, such as coffee.