Link Between Dollar, Trade Is Questioned: Link Between Dollar, Trade Is Questioned
The chairman of the International Trade Commission warned yesterday that AmericaÛªs growing merchandise trade deficits are unlikely.j to be turned around by a lowering of interest rates and a decrease Tn the value of the dollar.	ZTCZ</br></br>Kckes said other factors are often equally as important as the high value of the dollar in hurting JU.S. sales overseas and encouraging; the heavy flow of foreign goods Hefer ÛÏWe should riot conclude that when the dollar falls, our trade deficit will vanish. In fact, there is. now reason to question the conventional wisdom that exchange rates alone dictate trade flows,Û Eckes told the National Press Club.</br></br>"A decline in the dollar will undoubtedly provide some relief to beleaguered American industry,Û he continued, ÛÏbut a falling doll# will not end the import challenge.Û;</br></br>The dollarÛªs soar since 1981 in relation to other world currencies has been blamed for a large part of > AmericaÛªs trade deficit, especially with Japan, by making foreign goods less expensive here and raising the cost of U.S. products overseas.</br></br>ÛÏExchange-rate movement cannot always be assumed to be the predominant factor which determines changes in trade flows with respect to any individual product,Û the ITC study found.