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NEWS RELEASE 03 052; June 5, 2003
June 5, 2003
News Release 03-052
Inv. No. 332-345
ITC REPORTS CONTINUED STRONG TRADE PERFORMANCE
BY U.S. SERVICE INDUSTRIES DESPITE REDUCED TRADE VOLUME
The U.S. service sector, which accounted for 81 percent of both U.S. private-sector gross
domestic product and U.S. employment in 2001, continued to exert a positive effect on U.S. trade
performance despite reduced services exports that year, reports the U.S. International Trade
Commission (ITC) in its publication Recent Trends in U.S. Services Trade, 2003 Annual Report.
The report presents a statistical overview of U.S. trade in services and provides industry-specific
analyses focused on exports, imports, and trade balances during 2001, the most recent period for
which annual services trade data are available. The report also compares the 2001 data to the
trend of the previous five years. The report also examines services provided to U.S. and foreign
consumers by multinational firms' overseas affiliates. Industry discussions include a brief
examination of issues and trends influencing global competitive conditions.
The ITC, an independent, nonpartisan, factfinding federal agency, publishes this report as a
companion to its separate annual report Shifts in U.S. Merchandise Trade, issued annually in
Following are highlights of the report:
- The U.S. current account balance registered a surplus on trade in private-sector services
of $74 billion in 2001. The private-sector cross-border services trade surplus decreased at
an average annual rate of 3 percent during 1996-2000, and by a further 2 percent in 2001.
Exports decreased by 4 percent to $266.2 billion in 2001, following the average annual
growth of 6 percent experienced during 1996-2000. Imports decreased by 5 percent in
2001, after growing at an average annual rate of 10 percent during 1996-2000.
- In 2001, as in most other years, the majority of U.S. service industries registered cross-border trade surpluses. Prominent exceptions included passenger transport, freight
transport, and insurance services. Certain professional service industries, such as
advertising and accounting, also experienced trade deficits in 2001 despite the
$21.7 billion surplus registered on overall trade in professional services. In a pronounced
departure from historical patterns, U.S. telecommunication carriers posted a small surplus
in 2001, as staged reductions in international settlement rates continued to drive down
- Sales by majority-owned, foreign-based affiliates of U.S. companies increased by
11 percent to $392.8 billion in 2000, the most recent year for which affiliate trade data is
available. U.S.-owned affiliates in the public utilities industry and the financial services
industry each accounted for 10 percent of total services sales. Purchases from majority-
owned, U.S.-based affiliates of foreign firms totaled $346.7 billion in 2000, up 18 percent
over the previous year.
- U.S. direct investment in foreign service industries totaled $885.5 billion in 2001. Such
investment increased by 3 percent in 2001, slower than the 13 percent average annual
growth rate recorded during 1996-2000. Foreign direct investment in U.S. service
industries increased by 19 percent to $655.5 billion in 2001. This was in line with
average annual growth of 18 percent recorded during 1996-2000.
The foregoing information is from the ITC report Recent Trends in U.S. Services Trade, 2003
Annual Report (Investigation No. 332-345, USITC publication 3599, May 2003). The report
may be obtained from the Publications section of the ITC Internet site (www.usitc.gov) or by
calling 202-205-1809, or by writing the Office of the Secretary, U.S. International Trade
Commission, 500 E Street SW, Washington, DC 20436. Requests may also be made by fax to
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