ITC Issues Annual Report on Services Trade
The International Trade Commission announces the availability of its 2011 report, "Recent Trends in U.S. Services Trade." The annual report presents a statistical 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.
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Report Focuses on Professional & Audiovisual Services Trade
The ITC's 2011 report primarily focuses on professional services and includes separate chapters on specific professional service sectors (computer, education, health and legal services) and audiovisual services. The chapters analyze issues affecting global competitive conditions in the industry, examine recent trade performance, and summarize the industry outlook going forward.
Covers 2004-2009 Trade, Says U.S. Led 2009 Imports/Exports, Surplus Decreased, Etc.
The 2011 report covers trade in services from 2004 through 2009. Highlights of the report are as follows.
U.S. remained largest services exporter/importer. The U.S. remained the world’s largest exporter and importer of services in 2009. In 2009, U.S. private service exports totaled $483.9 billion, or 14.1% of global services exports, and imports totaled $334.9 billion, or 10.5% of global services imports. The U.S.' leading services trade partner was the United Kingdom , followed by Canada and Japan. Travel services accounted for the largest single-industry share of U.S. services trade in 2009.
Trade surplus decreased. The total U.S. cross-border trade surplus in 2009 shrank for the first time since 2003: it was $149.0 billion, down from $161.4 billion in 2008. However, the ITC notes that the recovery in global demand during 2010 has had a positive impact on service industries; trade data for the first three quarters of 2010 indicate an increase in both global merchandise trade and U.S. services trade.
Computer services contracted. In response to the economic downturn, global spending on computer services contracted to $715.0 billion in 2009, following growth from $588.6 billion in 2004 to $745.0 billion in 2008. Demand for computer services remained highest in Western Europe and North America, where most of the industry’s leading firms are headquartered, but was most resilient to the downturn in the Asia-Pacific region, where several Indian companies have emerged as industry leaders. Large computer hardware and software firms began to supply more computer services, especially over the Internet (via “cloud computing”), often delivered across borders due to the rapid growth of broadband infrastructure.
Professional services exports exceeded imports. In 2009, professional services accounted for 20.2% of total U.S. cross-border services exports and 20.9% of total U.S. cross-border services imports. U.S. exports of professional services ($97.6 billion) substantially exceeded U.S. imports ($70.1 billion). Among the professional service industries, management and consulting services accounted for the largest share of U.S. professional service exports and imports.
IP piracy hampered audiovisual trade. In the audiovisual industry and several important markets, growing online intellectual property piracy has hampered industry growth in terms of both international trade and domestic sector development. Other lingering impediments include content quotas and foreign equity restrictions. In response, the industry is looking to implement more cost-effective production processes, increase film co-productions in rapidly growing markets such as China’s, and diversify into more international market segments by taking advantage of the increasing use and overall availability of digital filmmaking and distribution technologies.
(See ITC's report for more information, including complete statistical data, discussion of globalization of U.S. service jobs and wages, etc.)
ITC Requests Info on Certain Trade, Foreign Affiliate Transactions for Next Report
A 2012 report, which the ITC plans to publish in July 2012, will cover cross-border trade for the period ending in 2010 and transactions by affiliates based outside the country of their parent firm for the period ending in 2009. The ITC requests information in connection with the 2012 report by October 6, 2011.
(See ITT's Online Archives or 07/07/10 news, 10070719, for BP summary of the ITC's 2010 services trade report.)
ITC contact -- Isaac Wohl (202) 205-3356
(FR Pub 07/11/11, Inv. No. 332-345)
The complete 2011 report is available here.
The ITC's press release is available here.