23. The performance of the external sector in 2003 was quite satisfactory. Merchandise exports rose by 24.0 per cent to reach US$1,137 million with receipts from both metal and non-metal exports rising. Metal export receipts grew by 30.0 per cent to US$730 million as export volumes increased and international metal prices picked up. Non-metal exports continued to record double-digit growth. Receipts from this source are estimated to have risen by 27.2 per cent from US$237.3 million in 2002 to US$301.9 million due to, among others, an expansion in markets following improved access to a number of countries under the regional trade initiatives. Improvements in the business environment as well as increased investment outlays especially in the agri-business sector also provided an impetus to growth in non-metal exports. The value of merchandise imports went up by 14.0 per cent from US $1,204 million in 2002 to US $1,388 million in 2003. Consequently, the trade balance improved to a deficit of US $235 million in 2003 from US$288 million in 2002. 24. The State Party wishes to report that the performance of the external sector in the first half of 2004 was also satisfactory. Preliminary data indicates that the trade balance deficit narrowed slightly. At US$ 209.3 million in June 2004, this was an improvement of 22.5 per cent over that recorded during the first half of 2003 (US$ 270.2 million). The reduction of the trade balance deficit was due to an improvement in total exports. The value of exports in the first half of 2004 was US$ 763.6 million, an increase of 55.9 per cent from US$ 489.7 million during the same period in 2003. The rise in export earnings was due to the increase in the value of both metal and non-metal exports. 30