Commerce Secretary Malcolm Baldrigesaid the U.S. trade deficit should start to decline soon,
possibly in the figures for February or March.
    "We could see the trade deficit start down in February or
March," Baldrige said in an appearance before the Senate
Governmental Affairs Committee.
    He predicted the trade deficit, which was 170 billion dlrs
in 1986, would decline by 30 to 40 billion dlrs in 1987 and in
1988.
    Baldrige said he was making his prediction without having
seen the February trade figures, but he said that the volume of
imports has dropped beginning with the fourth quarter of 1986
and will continue to drop in this quarter.
    The eventual turnaround in the monthly trade figures will
reflect the impact of the decline in the dollar, Baldrige said.
    Ealier, Treasury Secretary James Baker told the committee
that the trade deficit had levelled off, but Baldrige said he
was more optimistic, adding, "I think we turned the corner in
February."
 Reuter
