May 1, 2009
IN THIS ALERT:
Services Trade Demonstrates Resilience Amid Economic Downturn
Services trade is weathering the economic crisis much better than goods trade, according to a new report by World Bank economists Aaditya Mattoo and Ingo Borchert. The report points out that, as of February 2009, the value of U.S. goods imports and exports fell year-on-year by 33% and 21% respectively, but that U.S. services imports and exports each declined by less than 7%. Available data suggest similar trends in other OECD countries.
Moreover, the report says that while some service sub-sectors have seen substantial declines, like transportation services (linked to the drop in volumes of goods trade), tourism, and financial services, other specialized services, such as business, professional, and technical services, continue to expand. The report points to several possibilities for the resilience of services trade, including less dependence on trade financing, and the less cyclical nature of demand for traded services. For a copy of the report, click here.
WTO Members Reappoint Lamy for a Second Term
On April 30, 2009, the WTO General Council reappointed Director-General Pascal Lamy for a second term of four years, from September 1, 2009. The unanimous decision followed Mr. Lamy’s presentation on his vision for the WTO and a question-and-answer session held the day before. For a copy of his presentation to the General Council, click here.
USTR Kirk Outlines U.S. Trade Policy
In an April 23 address, United States Trade Representative Ron Kirk discussed the U.S. trade agenda, and said that the U.S. is closely reviewing the Doha Round to determine how best to bring it to a successful conclusion. He said that the goal for the U.S. is "meaningful market access for our farmers, ranchers, manufacturers and services providers...[and] a balanced and ambitious outcome that yields meaningful new trade flows for all." He added that "An agreement that takes the global terms of trade beyond the current status quo will provide benefits for years to come." For a copy of his address, click here.