BALDRIGE SEES U.S. TRADE GAP DROPPING SOON

  Commerce Secretary Malcolm Baldrige
  said 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."
  

