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NEWS RELEASE 98-069; SEPTEMBER 28, 1998
September 28, 1998
News Release 98-069
Inv. No. 332-385
COMMITMENTS SUBMITTED BY TRADING PARTNERS
OF EASTERN EUROPE, THE EUROPEAN FREE TRADE AREA AND TURKEY
UNDER THE GENERAL AGREEMENT ON TRADE IN SERVICES
ESTABLISH A FOUNDATION FOR PROGRESSIVE LIBERALIZATION
Commitments made by the trading partners of Eastern Europe, the European Free Trade
Area and Turkey under the General Agreement on Trade in Services (GATS) lay an effective
foundation from which to achieve progressive liberalization of international trade and
investment in service industries, reports the U.S. International Trade Commission (USITC)
in its publication General Agreement on Trade in Services (GATS): Examination of the
Schedules of Commitments Submitted by Trading Partners of Eastern Europe, the European
Free Trade Area, and Turkey.
The USITC, an independent, nonpartisan, factfinding federal agency, recently concluded the
investigation for the U.S. Trade Representative. The report examines GATS commitments
scheduled by Bulgaria, the Czech Republic, Hungary, Iceland, Liechtenstein, Norway,
Poland, Romania, the Slovak Republic, Slovenia, Switzerland, and Turkey. Highlights of
the report follow.
- In 1996, cross-border service exports by U.S. firms measured $221 billion and cross-border service imports measured $143 billion. Services trade with the trading partners of
Eastern Europe, the European Free Trade Area, and Turkey accounted for 5 percent of
total U.S. services trade.
- The schedules of commitments submitted by the selected trading partners vary
significantly from one partner to another. Countries such as Norway and Switzerland
made binding commitments to accord market access and national treatment across a wide
range of service industries, while other trading partners scheduled commitments covering
fewer industries.
- Treatment of industries also varied considerably across trading partners. Enhanced
telecommunication, legal, architectural and engineering services, and travel and tourism
services received broad coverage, indicating that trade in these industries is not heavily
restricted. However, the trading partners of Eastern Europe, the European Free Trade
Area and Turkey appear more reticent to commit to open markets for audiovisual and
land transportation services as well as social services such as health care.
- The report examines the following industries: distribution services, defined as
wholesaling, retailing, and franchising services; education services; communication
services, defined as enhanced telecommunication services, courier services, and
audiovisual services; health care services; professional services, defined as accounting,
advertising, and legal services; architectural, engineering, and construction services; land-based transportation services, defined as rail and trucking services; and travel and tourism
services.
The foregoing information is from the USITC report General Agreement on Trade in Services
(GATS): Examination of the Schedules of Commitments Submitted by Trading Partners of
Eastern Europe, the European Free Trade Area, and Turkey (Investigation No. 332-385,
USITC Publication 3127, September 1998). The report will be available on the ITC's
Internet site at www.usitc.gov. A printed copy of the report may be requested by calling
202-205-1809 or by writing the Office of the Secretary, U.S. International Trade
Commission, 500 E Street, SW, Washington, DC. Requests may also be made by fax to
202-205-2104.
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