Services trade deal sketched out, US says

The outline of an international trade deal opening up services markets is in place, US Trade Representative Michael Froman said, before the next round of negotiations next week.

The Trade in Services Agreement (Tisa), which seeks to free up trade in services such as communications and banking, is being negotiated among 50 countries making up nearly two-thirds of global services trade.

"The basic framework of the agreement is in place, initial market access offers have been exchanged, and sector-specific work in areas like telecommunications and financial services is in full swing," Froman said on Wednesday.

Issues that come under the umbrella of Tisa range from cross-border data flows and monopolies by state-owned enterprises to air pollution monitoring, shipping and postal services.

In the United States, services account for 75 per cent of economic output and 80 per cent of private-sector jobs; in the European Union, they account for almost 75 per cent of gross domestic product and employment.

The hidden value of services can be almost as much again as raw services export figures suggest, according to calculations from the World Trade Organisation and the Organisation of Economic Cooperation and Development.