The U.S. deficit in international trade of goods and services widened to US$65.68 billion for the month from a revised US$64.69 billion in November, the U.S. Commerce Department said today.

November’s shortfall was previously estimated at US$64.21 billion.

Economists had forecast a deficit of US$64.70 billion for December.

For all of 2005, the trade gap was a record US$725.76 billion, up 17.5% from the 2004 level of US$617.58 billion.

It marked the fourth consecutive year that the U.S. trade deficit has set a record.

The U.S. trade deficit with China rose to a record US$201.6 billion last year, the highest deficit ever recorded with any country and 24.5% above the previous record of US$161.9 billion set in 2004.

Last year’s deficit reflected the fact that imports rose by 12.9% last year to an all-time high of US$2 trillion, swamping a 5.7% increase in exports, which were up 5.7% to a record high of US$1.27 trillion. A huge 39.4% jump in petroleum imports, which rose to US$251.6 billion, was a major factor contributing to last year’s deficit increase. The price of those imports rose to an all-time high, reflecting tight global supplies.

Deficits with most major trading partners fell during December. The shortfall with China decreased to US$16.30 billion from US$18.49 billion in November. The deficit with Japan narrowed to US$6.80 billion from US$7.28 billion. The trade gap with the euro area fell to US$7.52 billion from US$7.70 billion. The monthly shortfall with Mexico shrank to US$4.26 billion from US$4.57 billion. However, the deficit with Canada increased to US$8.04 billion from US$7.68 billion.

Exports advanced by 2.1% to US$111.52 billion in December from US$109.19 billion in November.