Trade For America - Jobs. Growth. Engagement. Prosperity.
Services
| Resources: |
| The Importance of Service in the U.S. Economy |
U.S. Bureau of Economic Analysis Charts  |
| IT Services, Software and the WTO Doha Round |
Services are crucial to the US economy, employment, and international trade. According to the Coalition of Service Industries’ (CSI), “Fact Sheet: On Services in the United States & Global Economy,” the services industry represents nearly 78 percent of US economic output, and a similar proportion of private employment. Services are essential inputs into the production of virtually all products. The price and quality of services influence costs and productivity in all other sectors in an economy, including manufacturing and agriculture. Thus, when liberalized and made more efficient, services have a strong effect in the competitiveness of an entire economy. According to CSI:
- US services exports exceeded $414 billion in 2006, with a US services surplus of approximately $73 billion in 2006. The US has enjoyed surpluses in its services trade for many years.
- Services accounted for 77.8 percent of US private sector GDP in 2005, or $8.5 trillion.
- Between 1996 and 2006, services added 15 million new US jobs, and virtually all new employment in the US over the next half-decade will be in services.
- Services jobs accounted for over 80.6 percent of US private sector employment or 91.6 million jobs out of total private sector employment of 113.6 million in 2006.
- Services jobs paid an average of $51,045 annually in 2005, and in many service industries, ranging from professional services, management services, wholesale trade, transportation and warehousing, finance and insurance, information services, and others, the average compensation levels are much higher.
- Financial services, express delivery, telecommunications, entertainment and audiovisual services, IT services, and many others derive significant portions of their revenues from overseas operations. Their presence in foreign markets is crucial to their global competitiveness, and US income from sales by U.S. foreign affiliates was over $489 billion in 2004.
Moving the U.S. Services Industry Forward with Trade
On behalf of the U.S. services industry, the Trade for America Coalition will continue to work with Congress this year to:
- renew TPA so the Doha Round and new FTAs can be negotiated;
- pass pending FTAs with Columbia, Panama and Peru, and support the negotiation of new FTAs. This will open new markets, eliminate tariffs, protect intellectual property, and create two-way trade for U.S. manufacturing; and
- support the renewal of TPA to open global markets and increase American innovation and growth in the services sector.
To that end, the CSI and its members will work to:
- Educate members of Congress and staff on important developments affecting U.S. services trade
- Engage key officials in international organizations and other governments to promote positions beneficial to member companies
- Cooperate with other service sector organizations around the world to further our objectives
- Develop and maintain a worldwide network of supporters of liberalized trade in services
- Organize CSI missions to Geneva and world capitals to build support for market liberalization
For more information about CSI, please go to: http://www.uscsi.org/