US Seeks Trade Liberalization in Services

The United States has presented a list of specific requests for liberalization of trade in services intended to spur similar action by its fellow World Trade Organization (WTO) members. The US request is part of ongoing renegotiations of the WTO General Agreement on Trade in Services (GATS). Last fall, in Doha, Qatar, 144 WTO members agreed to work on trade liberalization in several areas, including services. This represents a significant step from the 1994 negotiations in which countries simply agreed to not make their restrictions any worse.

Under GATS, four services supply modes are covered, including cross-border, whether by electronic or other means; establishment of a physical presence in another market; travel by individuals to foreign markets; and travel from foreign markets for purposes of consuming services. Among the services sectors included in the negotiations are professional services such as accounting, engineering and legal services. Educational and training services also fall into this sector and likely represent its fastest growing segment.

The current US requests include transparency in the regulation of services. Increased access for higher education, training services and testing services is sought both in traditional and non-traditional settings as is increased access for the legal and accounting professions. Increased access is also sought for temporary stay and highly skilled workers. It is not surprising that the US took the lead in this matter since services industries account for 80 percent of US employment and 63 percent of its Gross Domestic Product.

The next deadline for formal negotiating offers in response to the US proposals is March 31, 2003. The multilateral trade negotiations are scheduled to conclude no later than January 1, 2005.

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Executive Summary - United States Announces Proposals for Liberalizing Trade in Services
Press Release
Office of the United States Trade Representative

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