U.S. Trade Representative Ron Kirk has initiated the negotiation process for a new trade agreement on international services. The negotiations will begin in Geneva with 20 trading partners who represent over 60% of global trade in services.
The U.S. has a trade surplus of $178.5 billion in services trade worldwide, and each $1 billion of U.S. services exports supports 4,200 U.S. jobs according to Ambassador Kirk. The objective of promoting international trade in services is to support increasing U.S. service exports and jobs.
Ambassador Kirk noted in a letter to lawmakers that a recent study by the Peterson Institute for International Economics estimated that even though the United States is the world’s largest services trader, tradable services are still five times less likely to be exported than manufactured products.
“Service industries employ approximately three out of every four American workers nationwide,” wrote Ambassador Kirk. “If business services achieved the same export potential as manufactured goods globally, U.S. exports could increase by as much as $800 billion. To begin to realize this potential, we need to surmount a range of barriers that lock out, constrain, or disrupt the international supply of services. An ambitious, high-standard international services agreement presents a tremendous opportunity to remove these impediments and boost U.S. economic growth and support additional jobs.”
Growth Nation welcomes this initiative! Grow globally!