William H. Cooper
Specialist in International Trade and Finance
The term “services” refers to an expanding range of economic activities,
such as construction, retail and wholesale sales, e-commerce, financial
services, professional services (such as accounting and legal services),
transportation, tourism, and telecommunications. They have become an
important priority in U.S. foreign trade flows and trade policy and of global
trade in general, although their intangibility, the requirement for direct
buyer-provider contact, and other characteristics have limited the types
and volume of services that can be traded. Congress is expected to consider
in the future U.S. trade agreements currently under negotiation that include services
as significant components.
Services constitute an important component of U.S. trade flows. The United
States is the largest exporter of services (14% of the global total in
2011) and the largest importer (10% of the global total in 2011). In 2012,
services accounted for 29% of total U.S. exports and 7% of total
imports. Rapid advances in information technology and the related growth
of global value or supply chains have reduced barriers to trade in
services, making an expanding range of services tradable across national
borders.
A number of economists have argued that foreign government barriers prevent
U.S. trade in services from expanding to their potential. The United
States has negotiated trade agreements to lower these barriers. It has
been a leading force in doing so under the General Agreement on Trade in
Services (GATS) in the World Trade Organization (WTO) and in free trade
agreements, all of which contain significant provisions on market access
and rules for liberalizing trade in services. The United States is in the
midst of negotiating with 11 other countries the Trans-Pacific Partnership
(TPP) agreement and is also one of 23 countries negotiating a possible
plurilateral Trade in Services Agreement (TISA). Services trade is also an
important component of the recently launched negotiations on the
Transatlantic Trade and Investment Partnership (TTIP) agreement between
the United States and the European Union (EU), two of the world’s
largest providers of and traders in services.
The outlook for these trade negotiations remains uncertain. In each case, the
participants have difficult issues to overcome. Perhaps one of the most
difficult issues is whether regional and plurilateral agreements will
support or undermine the pursuit of a more extensive,
multilateral agreement in the GATS. A related issue is whether
participants in the regional and plurilateral agreements can/should
encourage recalcitrant countries, such as the emerging
economies—Brazil, China, and India—to join.
Congress and U.S. trade negotiators face other issues, including how to balance
the need for effective regulations with the objective of opening markets
for trade in services; ensuring adequate and accurate data to measure
trade in services to better inform trade policy; and determining whether
renewed trade promotion authority is needed to credibly negotiate
trade agreements on services.
Date of Report: October 24, 2013
Number of Pages: 28
Order Number: R43291
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Rebecca M. Nelson
Analyst in International Trade and Finance
Sovereign debt, also called public debt or government debt, refers to debt
incurred by governments. Since the global financial crisis of 2008-2009,
public debt in advanced economies has increased substantially. A number of
factors related to the financial crisis have fueled the increase,
including fiscal stimulus packages, the nationalization of private-sector debt,
and lower tax revenue. Even if economic growth reverses some of these
trends, such as by boosting tax receipts and reducing spending on
government programs, aging populations in advanced economies are expected to
strain government debt levels in coming years.
High levels of debt in advanced economies arose as an issue for concern for
some analysts following the global financial crisis, after decades of
attention on debt levels in developing and emerging markets. Four Eurozone
countries, Greece, Ireland, Portugal, and Cyprus, have turned to the
International Monetary Fund (IMF) and other European governments for financial assistance.
Some analysts and policymakers are also concerned about are also concerned
about debt levels in other advanced economies.
To date, many advanced-economy governments have embarked on fiscal austerity
programs (such as cutting spending and/or increasing taxes) to address
historically high levels of debt. This policy response has been criticized
by some economists as possibly undermining a weak recovery from the global
financial crisis. Others argue that the austerity plans do not go far enough,
and that more reforms are necessary to bring debt levels down, especially
considering the aging populations in many countries.
Issues for Congress
• Is the United States headed for a Eurozone-style debt crisis? Some
economists and Members of Congress fear that, given historically high
levels of U.S. public debt, the United States is headed towards a debt crisis
similar to those experienced by some Eurozone countries. Others argue that
important differences between the United States and Eurozone economies, such as
growth rates, borrowing rates, and type of exchange rate (floating or
fixed), put the United States in a stronger position. The United States has a
long historical record of debt repayment, and bond spreads indicate that
investors currently view the United States as far less risky than Greece,
Ireland, or Portugal.
• Impact on U.S. economy. The focus of most advanced economies on
austerity programs to lower debt levels could slow growth in advanced
economies and depress demand for U.S. exports. Financial instability
stemming from high debt levels could also impact U.S. markets and
financial institutions.
• Policy options for Congress. Congress is debating proposals to reduce
federal debt levels in the United States. Congress could urge the
Administration to coordinate fiscal policies multilaterally to avoid
simultaneous austerity measures that undermine the economic recovery.
Date of Report: October 28, 2013
Number of Pages: 32
Order Number: R41838
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Kristina Alexander
Legislative Attorney
Mr. Chairman and Members of the Subcommittee:
My name is Kristina Alexander. I am a Legislative Attorney with the
Congressional Research Service. I am here to introduce the Lacey Act and
explain its legislative history regarding the restriction on trade implants and
animals taken in violation of foreign laws.
The Lacey Act was enacted in 1900 addressing imports of injurious species and
wildlife trafficking between states. My testimony is limited to the wildlife
trafficking provisions of the Lacey Act, which, generally speaking, make it a
violation of federal law to buy or sell plants or animals that were taken or
traded in violation of state, federal, tribal, or foreign law. More
specifically, with regard to foreign law, the Lacey Act makes it unlawful to
import, export, transport, sell, receive, acquire, or purchase in interstate or
foreign commerce any fish, wildlife, or plant taken, possessed, transported or
sold in violation of any foreign law.1 In the case of
plants, the underlying foreign law must protect or regulate plants.
Date of Report: July 17, 2013
Number of Pages: 5
Order Number: T-071713
Price: $19.95
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