Excessive external trade deficits

[Industrialized countries]

The USA's trade deficit in 1986 was over US$170 billion making it the largest debtor nation in the world. In June 1989, the United Kingdom's trade deficit widened to US$3.1 billion. In 1989 the former Soviet Union recorded a trade deficit of £3.35 billion.

[Developing countries]

Developing countries' efforts to reduce their trade deficits took place in an environment in which the prices of the majority of primary commodities had moved against them since the late 1970s.

1. Imbalance in international trade patterns
2. External debt

1. Organizational empire-building
2. External debt crisis
3. Deterioration in external financial position of countries
4. Decline in import capacity

1. Weakness in trade among developing countries
2. Restrictive trade practices
3. Restricted growth in export markets
4. Obstacles to world trade
5. Instability of trade in manufactured goods
6. Instability of the commodities trade
7. Economic conflict

1. Preoccupation with reciprocity in trading relations
2. Large trade surpluses

1. Balancing payments

1. Excess
2. Deficit