March 10, 2006	Friday	Safar 9, 1427

WASHINGTON, March 9: The US trade deficit widened to a new record high of $68.5 billion in January as imports surged on the back of rising oil prices, the Commerce Department said on Thursday.

The swollen deficit looked set to intensify a protectionist clamour in Congress, which is gearing up for mid-term elections in November, especially as China’s fiercely controversial trade surplus over the United States shot up.

The January figure beat the previous monthly high of $67.84 billion reached in October, and also topped Wall Street forecasts for a deficit in the month of $66.5 billion.

“The trade deficit seems to only get bigger and never recede,” said Robert Brusca, chief economist at FAO Economics.

“The reasons are clear: oil prices are up, foreign growth is still relatively weak and US growth is strong. There is no reason to forecast a lower deficit,” he said.—AFP