Crisis does not affect trade

Crisis does not affect trade

WASHINGTON (AFP): The financial crisis in Southeast Asia has
not yet had any impact on the region's trade, U.S. Trade
Representatives Charlene Barshefsky said Friday.

Barshefsky, however, raised the possibility that Asian exports
to the United States may increase because of a devaluation in
local currencies.

"There is speculation that Asian devaluations will increase
exports," she said. "The impact of that could also lead to
reductions in imports."

Brashefsky suggested that the countries in the region, facing
a weakening economy, could instigate the currency devaluations
themselves in order to generate more export revenue.

According to statistics given to a congressional committee by
federal Reserve chairman Alan Greenspan, U.S. products counted
for only four percent of total imports by Thailand, the
Philippines, Indonesia and Malaysia, the four countries at ground
zero of the Southeast Asian financial crisis.

U.S. products comprised 12 percent of the imports by Hong
Kong, Singapore, South Korea and Taiwan, the countries most
recently impacted in the crisis.