WASHINGTON– June 11 2024 – The President’s Export Council (PEC) has sent a letter to the President urging the negotiation of international agreements to promote US services exports and jobs. The Global Data Alliance welcomes the PEC letter.
The PEC’s observations echo those in the Cross-Border Data Policy Index and Cross-Border Data Myths v. Facts, highlighting the importance to the United States of future US cross-border access to information and cross-border trade in services.
PEC Letter excerpts:
- The services sector is the most significant driver of U.S. economic activity, supporting every sector of the economy from manufacturing to agriculture to energy and efforts to combat climate change.
- The United States remains the top cross-border exporter of services, with services accounting for 79% of GDP and 82% of all private employment in the US.
- Exports of U.S. services directly support 4.1 million jobs, including 3 million from digitally tradable services.
- The high volume of services exports also plays a key role in balancing the overall U.S. trade deficit. The $700 billion US services trade surplus … partially offsets the U.S. trade in goods deficit.
- We laud the Biden administration for recognizing the strategic importance of services trade. As Jared Bernstein, Chair of the Council of Economic Advisors, said at the outset of the last meeting of the President’s Export Council: ” … the Biden administration highly values robust trade flows … and by expanding services surpluses, we can both boost exports and lower our trade deficit.”
- The major U.S. services export industries include media and entertainment, logistics, financial services and insurance, software, telecommunications and ICT products, travel and transportation, professional and management and remote education services, as well as manufacturing services such as electrical construction services and infrastructure management.
- Moreover, manufactured goods and agricultural and healthcare products are tightly integrated with services exports, which further drive exports.
- Digital services exports make up nearly two-thirds of the total volume of global services exports. Their volume soared to $4.25 trillion dollars in 2023, up 9% from 2022 and surpassing pre-pandemic levels by over 50%.
Recommendations include:
- Re-start the Trade in Services (TiSA) Initiative and Reinvigorate the WTO’s Progressive Liberalization Services Negotiations
- Enforce Existing Trade Agreement Services Commitments and Related Disciplines
- Re-establish U.S. Leadership Globally for Trade in Digital Services Exports
- Promote Transnational Regulatory Coherence
- Make the Pursuit of Economic Security More Predictable