USTR to enter into trade talks with 20 nations of export of services

THE US Trade Representative Office is to enter into negotiations for a new trade deal on international services with 20 countries not including Brazil, Russia, India and China (BRIC).

Participants include Australia, Canada, Chile, Colombia, Costa Rica, the EU, Hong Kong, Israel, Japan, Mexico, New Zealand, Norway, Pakistan, Panama, Peru, South Korea, Switzerland, Taiwan and Turkey.

"We need to surmount a range of barriers that lock out, constrain, or disrupt the international supply of services," said US Trade Representative Ron Kirk.

Mr Kirk said that the potential of service exports is huge with every US$1 billion estimated to support 4,200 American jobs and has the chance to increase US exports by as much as $800 billion.

Its focus is to break down barriers to trade and investment in finance, insurance, telecommunication, computer services and express delivery.

The aim is for the talks to centre on the International Service Agreement which is forecast to increase annual services exports by $78 billion to 16 core members, according to a report from the Peterson Institute for International Economics.

According to the report, US and the 27-nation EU to gain the most at $14 billion and $21 billion, respectively.