Services are the fastest growing sector of the global economy and account for two-thirds of global output, one-third of global employment and nearly twenty percent of global trade. The TiSA provides an opportunity to expand services trade among over fifty countries, covering nearly seventy percent of global trade in services. The potential expansion TiSA provides will benefit not only global growth, but also U.S. domestic growth. Every $1 billion in U.S. services exports supports an estimated 4,000 jobs. As the world’s largest services exporter, with over $1.3 trillion in annual cross-border and foreign-affiliate sales, the United States will benefit tremendously from elimination of services barriers.

Here's why the coalition members are in favor of TiSA:

“When it comes to trade, you can’t make it, move it, buy it or sell it without services. Services are a clear strength for the United States, which is by far the world's largest exporter of services. TiSA presents an opportunity to expand access to foreign markets for U.S. service industries while prohibiting discrimination against American service providers, including those competing with state-owned or state-supported players.”

Leslie Griffin

UPS

Services Are Important to the Global Economy and Development

• The 2011 World Development Indicators show that the services sector accounted for almost 71% of global GDP in 2010 and is expanding at a quicker rate than the agriculture and the manufacturing sectors.
• Trade in services has grown at a pace faster than trade in goods since the 1980s. UNCTAD estimated that in 2013 global services exports reached $4.7 trillion and grew at an annual rate of 5%.
• Technology-services create a multiplier effect for overall trade flows: technology-enabled exporters sell to an average of 19 markets, while exporters without access to technology services sell in 3-4 markets.
• World Bank research shows that the services sector has become a dominant driver of economic growth in developing countries, delivering both GDP growth and poverty reduction. In 2011, the services sector accounted for an average 49% of GDP in the low income countries and 47% in least developed countries (LDC).

Services, and Services Trade, Are a Key Component of the U.S. Economy

• The service sector is the largest employer in the US - in 2013, services accounted for 76% of the U.S. work force.
• Even though less than 5% of U.S. service companies currently export, services are almost 30% of total U.S. exports.
• USTR estimates every $1 billion in services sales supports 4,000 jobs in the United States.
• The average annual salary of an individual employed by a firm involved with international services is $60,000. In contrast, the national average manufacturing salary is $40,000.
• In 2013, U.S. service exports were valued at $681 billion, with a $231 billion surplus.

In millions of dollars; data from US Census Bureau

A Strong TiSA Will Benefit the Global and U.S. Economies

• The Trade in Services Agreement (TiSA) will update the structure/rules governing more than 70% of global trade in services.
• There is a major opportunity for growth for U.S. services in international markets. A study by a leading economist found that only 3 percent of services firms export, as compared to a quarter of manufacturers, largely because of foreign barriers. An estimated 3 million jobs could be created if U.S. services matched the export rate of manufacturers. TiSA, by addressing unfair barriers, can help make that happen.