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HONG KONG OBJECTIVE
The Hong Kong Ministerial must jump-start the services
negotiations by including an agreement that countries
will begin making commercially meaningful offers of
services liberalization.
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Services Liberalization is Important for Maintaining the
Momentum of Global Economic Growth.
The services sector is the largest and fastest growing sector
in the world economy and generally accounts for more than
50 percent of global GDP, but it accounts for only 20 percent
of total world trade -- a reflection of the significant barriers
to services trade and the potential benefits from significant
services liberalization in the Doha round.
According to economic studies, comprehensive, 33 percent
reductions in service barriers would improve global economic
welfare by $427.2 billion, and improve U.S. global economic
welfare by $138.8 billion.
In the United States, services account for more than 65 percent
of GDP and 80 percent of employment. Opening foreign markets
to U.S. services providers will increase the world market
share of U.S. producers and create jobs for U.S. workers.
- U.S. companies increasingly provide foreign firms with
financial, professional, information and other services
to meet their business needs. The United States is the
largest producer and exporter of financial services.
- U.S. employment growth over the next ten years will
be concentrated in the services industry, with the strongest
growth in education, health, professional and business
services.
- U.S. service providers in the financial, telecom, air
transport and other industries stand to be big winners
if developing countries offer significant services reforms.
Service negotiations are lagging even further below other
areas under negotiations. The WTO Hong Kong Ministerial must
reenergize these negotiations so that members start making
comprehensive compliance and commercially meaningful offers
to liberalize their service regimes.
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