Growth opportunities for US businesses lie outside our borders. Economic growth in 15 countries was estimated to be over 10 percent in 2006. Over one hundred countries experienced growth of over 5% in the same time period, while the US is estimated to have grown at a comfortable 3.4%. If American companies are going to be able to compete globally, and keep providing jobs for Americans, they will need to be able to export to fast growing international markets through free trade agreements.
High-tech is the single largest merchandise exporter in the United States, totaling $191 billion last year, increasing by $20 billion from 2003.
In general, approximately 60% of the US IT industry’s revenue comes from overseas and continued and expanded global market access opportunities are therefore imperative to maintaining economic growth, job creation and US competitiveness in the high-tech sector.
Additionally, IT services and software now account for two-thirds of the worldwide IT market. IT services and software sectors of the global IT industry have grown at a compound annual growth rate of 11.2% since 1996, compared to only 2.7% for the hardware sector. The services sector has grown steadily over the past 10 years reaching $338 billion in 2004, and the US currently enjoys a $50 billion surplus in services trade.
Trade Promotion Authority
TPA is essential to continue opening markets and enforcing a rules-based trading system beneficial to US exporters.
Renewal of TPA is essential to concluding the Doha Development Agenda and future Free Trade Agreements (FTAs) that expand markets for American IT exports and contribute to the health of America’s innovation economy.
TPA renewal is vital to open global markets and increase American Innovation and growth opportunities in the high technology sector.
IT supported legislation during the 108th Congress that would expand Trade Adjustment Assistance (TAA) to service workers. We continue to support TAA, and stronger labor and environmental provisions in FTAs.
The WTO Information Technology Agreement (ITA)
The ITA has been one of the WTO’s most successful agreements, lowering tariffs on IT products in 69 countries, contributing to rapid growth in the ICT sector, and fueling the expansion of both developed and developing economies.
The agreement has eliminated all tariffs on most IT products, lowering the costs of those products in developing countries, improving education and training, and encouraging high-tech growth across the world.