The Coalition of Service Industries released a groundbreaking new study underscoring the enormous impact the service sector makes in the U.S. economy, and the importance of securing trade agreements that expand global markets for American services. The study found that the service sector represents the largest portion of U.S. employment and economic output - accounting for 93 million jobs and nearly 80 percent of U.S. private sector GDP - approximately $8.5 trillion.

The CSI study also found that the majority of the workforce in every Congressional district is employed in services. In 398 Congressional districts, 70 percent or more of the workforce is employed in the service sector, and every state in the nation is an exporter of services.

"The service sector is the engine that is driving our economy, providing 80 percent of American private sector jobs and nearly 80 percent of our GDP," said Bill Toppeta, President, International, MetLife. "Services are at the core of the U.S. economy and need to be central to our trade policy. For the service sector to continue growing, we need greater access to the global marketplace and new avenues for trade."

Despite the impasse reached at the Doha Round negotiations last week, CSI continues to push an ambitious trade agenda that will help expand the U.S. service sector and create new jobs. The agenda includes:

- A breakthrough for services in the Doha Round negotiations that would be greater than or equal to any breakthroughs made on agriculture or manufacturing;

- Reauthorization of Trade Promotion Authority (TPA); and

- Enactment of existing trade agreements that have already been negotiated.

"It is still our hope that the developing nations will come back to the table and that progress can be made in the Doha Round negotiations. But as part of these negotiations, we must see a breakthrough on services that is comparable to any breakthroughs made on agriculture or manufactured goods, and includes meaningful new commercial opportunities," said Michael L. Ducker, President, International, FedEx Express and Chairman of CSI.

"Greater trade is the key to greater growth in the service sector. We need Congress to approve existing free trade agreements that have already been negotiated, and we need Congress to reauthorize Trade Promotion Authority so that new trade agreements can be reached."

U.S. service industry companies are the world's largest and most competitive service exporters, and include such industries as express delivery, financial services, telecommunications, entertainment and audiovisual services, and IT services. U.S. service exports reached $414 billion in 2006, with a surplus of $73 billion. The jobs created by the service sector also are among the best-paying and most highly skilled. Service jobs paid an average of $51,045 annually in 2005, and in many service industries, including professional services, management services, finance, insurance and others, the average compensation levels are much higher.

Allowing freer trade in services will accrue even more benefits for the U.S. economy. According to a study prepared by the University of Michigan, total elimination of barriers in services would raise U.S. annual income by more than $450 billion. "If we want the service sector to continue to grow and provide high-paying jobs here in the United States, then it is imperative to enact free trade agreements that open up new markets for U.S. services. If we fail to open up new markets for U.S. services, then the U.S. service sector will lose market share, will lose revenue, and ultimately will lose jobs," said Robert Vastine, President of CSI.