US economic relations with the Arab states have entered a new phase in the last two years, one that reproduces many of the features that characterized the end of the Carter administration. US exports to the region rose by about 13 percent from 1986 to 1987 with shipments to Iraq, Egypt and the United Arab Emirates accounting for most of the increase. But this was more than offset as US imports from the region jumped some 35 percent, largely due to greater imports of crude petroleum. As a result, by the end of 1987 the US trade deficit, which had stood at $179 million the previous year, totalled more than $2.1 billion. Only a doubling in the value of American military sales to the region prevented this figure from ending up even higher.