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[IWS] USITC: RECENT TRENDS IN U.S. SERVICES TRADE, 2013 ANNUAL REPORT [11 July 2013]
IWS Documented News Service
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
United States International Trade Commission (USITC)
RECENT TRENDS IN U.S. SERVICES TRADE, 2013 ANNUAL REPORT [11 July 2013]
[full-text, 121 pages]
Press Release 11 July 2013
U.S. SERVICE PROVIDERS REMAIN COMPETITIVE IN GLOBAL SERVICES MARKET, REPORTS USITC
The United States was the world's largest services market and the world's leading exporter and importer of services in 2011, reports the U.S. International Trade Commission (USITC) in its publication Recent Trends in U.S. Services Trade, 2013 Annual Report.
The USITC, an independent, nonpartisan, factfinding federal agency, compiles the report annually. Each year's report presents a qualitative and quantitative overview of U.S. trade in services and highlights some of the service sectors and geographic markets that contribute substantially to recent services trade performance.
This year's report focuses on professional services and includes separate chapters on the education, healthcare, and legal services sectors. Each chapter analyzes global market conditions in the sector, examines recent trade performance, and summarizes the sector's outlook.
The 2013 report covers cross-border trade in services through 2011 and affiliate sales through 2010 (latest available data). Highlights of the report include:
- From 2010 to 2011, U.S. cross-border services exports increased by 9 percent (to $587 billion) while U.S. services imports grew by 7 percent (to $393 billion). This represents the second consecutive year of strong trade growth following the financial crisis. Professional services accounted for 21 percent of total U.S. cross-border services exports and 19 percent of cross-border imports in 2011.
- Services supplied abroad by foreign affiliates of U.S. firms continued to exceed services purchased from U.S. affiliates of foreign firms, reaching $1.1 trillion and $696 billion, respectively, in 2010. Professional services accounted for a relatively small but growing share of both sales and purchases of services through affiliates. Architectural and engineering services accounted for the largest share of professional services supplied by U.S. foreign affiliates, while advertising services led purchases from U.S. affiliates of foreign firms in 2010.
- The contribution of U.S. professional services to U.S. GDP in 2011 was $2.2 trillion, equal to 24 percent of the value added by all services and 19 percent of total private sector GDP. Professional services value added exceeded all other major services categories including distribution, financial, and electronic services in 2011. Professional services value added grew by 3 percent in 2011, faster than the average of all services (2 percent) and more than 3 times the growth of the manufacturing sector (0.8 percent) during the year. The education, healthcare, and legal services sectors are all projected to post moderate growth in the next few years.
- Professional services employed 26 million full-time-equivalent employees in 2011, equal to 26 percent of the total U.S. private sector workforce. Healthcare services accounted for 15 million of these employees. In 2011, labor productivity in professional services grew by 1 percent while average wages grew by 3 percent (to $60,368), exceeding the private sector average wage but trailing electronic and financial services. Both productivity and wages varied widely among professional services industries.
- Professional services are subject to a variety of both entry and operational trade barriers. In many cases, these barriers take the form of domestic regulations and are byproducts of a country's domestic policy objectives such as protecting and developing its indigenous workforce. Such restrictions include economic needs tests and quotas on foreign providers. Other significant barriers include limits on setting up foreign affiliates and requirements that managerial staff be either citizens or permanent residents.
- The USITC hosted its sixth annual services roundtable on November 13, 2012. The discussion, summarized in the report, covered services liberalization and regulation, and prospects for future services trade agreements.
Recent Trends in U.S. Services Trade, 2013 Annual Report (Investigation No. 332-345, USITC publication 4412, July 2013) is available on the USITC's Internet site at http://www.usitc.gov/publications/332/pub4412.pdf.
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