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In 1969, world exports climbed to $ 270 bn with biggest gains shown by Germany (plus 14 p.c), Japan, followed by the US, France and the United Kingdom. Of this total, developed nations once more were responsible for an increasing share of $ 193 bn. The increase in Common Market imports by 25 p.c. over 1968 added significantly to the overall growth of world trade.
The competitive position of US unit-export prices is not unfavorable; they advanced by 3 p.c. in 1969 or at the same rate as European prices. For 1970, some improvement is expected.
Not only a more rapid fading out of Viet Nam fighting might help but also a sharp reduction of other forms of international spending, not only less foreign aid but a drastic reduction in the on-shore spending for the defense establishment affecting largely NATO and Japan.
An adoption of a “value-added” tax is out of the question due to Congressional opposition.
The total Euro-dollar market exceeds 30 bn of which one-half was borrowed by US parent banks (8 bn alone in 1969).
The US share in SDR will amount to $ 867 mn in 1970. These drawing rights together with the increase in the resources of the Fund will advance total world liquidity from $ 74 bn presently to 86.7 bn (10.5 bn in SDR over three years and a 2.2 bn increase in the reserve positions cf members).
In 1968, the $ 5 bn trade total was composed of $ 2.75 bn US imports from Germany (with a gain of 750 mn over 1967) and $ 2.25 bn worth of US exports to Germany (with only a small gain).
In 1969, German car exports to the US were amazingly well maintained at almost two-thirds of total US car imports in spite of rising competition. Moreover, foreign-made cars increased their share to 11.4 p.c. of total new car sales in the US.
Developing nations ship 75 p.c. of their total exports to the developed nations, but even so they share with only one-fifth in total world trade.
In other words, regulations prohibiting direct trade between the US and the Chinese People’s Republic, based on the 1917 Trading with the Enemy Act and its many amendments, remain intact. Bona fide tourists can now freely purchase and import Chinese goods.
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Robert G., W. Economic outlook for 1970. Intereconomics 5, 85–88 (1970). https://doi.org/10.1007/BF02928500
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DOI: https://doi.org/10.1007/BF02928500