March 4, 2010
IN THIS ALERT:
Lamy Notes Decline of World Trade, Highlights Role of Trade in Job Creation
In a Febuary 24 speech, WTO Director General Pascal Lamy said that world trade declined 12 percent in 2009, the largest contraction since World War II. Lamy attributed the contraction to a decline in demand, a shortage of trade finance, and some instances of increased tariffs and subsidies. Noting the relationship between jobs and exports, Lamy said that increased exports are likely to "contribute directly to the reduction of unemployment in the recovery phase following the financial crisis". For a copy of the speech, click here.
Separately, in his report to the Doha Round General Council, Lamy conceded that gaps remain in negotiations and called for a stocktaking exercise at the end of March to assess the situation. Despite the gaps, Lamy conveyed optimism that the Members continue to be engaged and committed to the process. His report also noted that the services cluster negotiations held in February covered market access, rule-making, and a draft waiver for LDC preferences. For the full report, click here.
USTR Releases 2010 U.S. Trade Policy Agenda
United States Trade Representative Ronald Kirk released the 2010 U.S. Trade Policy Agenda on March 1. The agenda, which covers the WTO, bilateral and regional negotiations and agreements, trade enforcement activities, trade policy development, and other trade activities, identifies seven broad objectives in U.S. trade policy. These include supporting and strengthening the rules-based trading system, ensuring American rights in that system, facilitating U.S. growth, job creation and innovation, working on pending FTAs, continuing to advance national energy and environmental goals, strengthening partnerships with developing and poor nations, and reflecting American values in trade policy. For a copy of the agenda, click here.
U.S. Service Sector Grows at Fastest Pace in Two Years
Recent data from the Institute for Supply Management (ISM) revealed signs of recovery in the U.S. services sector. The ISM index, which indicates whether firms surveyed find business is getting better or worse, rose to 53% in February, up from 50.5% in January. Readings over 50% signify that more firms report that business is improving. Nine of 18 industries grew in February, led by the information, entertainment, and transportation industries. For the full article, click here
WTO Announces Committee Chairs for 2010
The WTO has announced that H.E. Mrs. Elin Johansen of Norway will chair the Council for Trade in Services. Mrs. Johansen was previously the Chairperson for the Council for Trade in Goods and is a former Director General of the Services Department at the Norwegian Ministry of Foreign Affairs. The General Council will be chaired by H.E. Mr John Gero of Canada. For the complete list of 2010 Chairpersons, click here.
Save the Date: "Conference Measuring and Enhancing Services Data and Information," September 14, 2010
The U.S. Department of Commerce is organizing this conference, which will focus on efforts to better measure services trade and investment, identify gaps in available data, and assess efforts underway to improve service sector data and statistics. Contact: Barbara Rawdon at Barb.Rawdon@trade.gov.
NYT Op-Ed on Services Exports: An Order of Prosperity, to Go
On Wednesday, February 17th, an article appeared in the New York Times discussing the importance of services exports to the U.S. economy. Written by W. Michael Cox, the former chief economist for the Federal Reserve Bank of Dallas, the article notes the success and competitiveness of U.S. services exports, and discusses policy options to promote export growth. The article, which includes a graph on services trade, can be found here. A CSPAN discussion of the article, in which Cox described services as "one of America's 21st-century success stories", can be viewed by clicking here.