Guest blog post by the Department of Commerce's Chief Economist Mark Doms.

Today the Commerce Department and ESA released a brief report on “U.S. Trade in Private Services.” The report (PDF) shows that the United States has consistently run a record services trade surplus that is driving overall exports growth and topped half a trillion dollars in 2010.

Most of the time when you hear about trade, it is about trade in goods, in part because it is easier to wrap our minds around the idea of goods (pictures of large container ships help, and we often notice the markings on products that note where they were made).  However, the United States exports a sizable amount of services (non-tangible items of value, such as school tuition or an airplane ticket), and they are leading the way toward doubling U.S. exports in support of several million new jobs under President Obama’s National Export Initiative.

A few reasons why greater emphasis should be placed on our trade in services: 

1. Services make up a big part of the economy: 80 percent or so depending on how you define it.
2. In 2010, we exported over a half trillion dollars (wow) of services, an all-time high.
3. The trade surplus in services in 2010 topped $526.6 billion. 
4. Services jobs represent high-skill, high-wage jobs.
5. From 2002-2008, our private services exports grew at an annual average rate of 11.1 percent.
6. Many services are “tradable”, especially in today’s increasingly globalized world: legal services can be traded, computer services can be traded, engineering services, medical services, etc.
7. Exports of services are likely to show continued growth, taking advantage of the skill of the U.S. workforce and supporting living-wage U.S. jobs. 

Cross-posted at ESA's blog.

U.S. Commerce Secretary Gary Locke traveled to New Orleans, La. today for the third stop of New Markets, New Jobs: The National Export Initiative Small Business Outreach Tour. Locke was joined by New Orleans Mayor Mitch Landrieu and Export-Import Bank Board Member Diane Farrell.

Locke delivered keynote remarks at the event, where he spoke about the administration’s efforts to support President Obama’s National Export Initiative (NEI), which aims to double U.S. exports in five years in support of several million new jobs. The NEI enhances the U.S. government’s trade promotion efforts, increases credit to businesses looking to export, and continues to improve efforts to remove trade barriers for U.S. companies in foreign markets.

Locke also announced the department’s CommerceConnect Gulf Coast initiative to support economic development following the BP/Deepwater Horizon oil spill, and highlighted a forthcoming announcement from the Department’s Economic Development Administration of grants to the region totaling $1.85 million. Cross-trained CommerceConnect staff – in collaboration with state and local partners – can assist Gulf Coast businesses no matter where they are in their life cycle, whether just getting off the ground or looking to expand into overseas markets, providing a one-stop connection to business assistance that can help firms compete in the global economy. 

From April 3-8, 2011, the U.S. Department of Commerce's Economic Development Administration (EDA) and International Trade Administration (ITA) will travel to Hannover, Germany to help lead a U.S. Trade & Investment Program to HANNOVER MESSE 2011, the world's largest industrial technology showcase.  By leading regional business clusters abroad, the Department of Commerce is supporting the Obama administration’s National Export Initiative (NEI) and working to attract U.S. Foreign Direct Investment (FDI), by giving participating communities the opportunity to promote their regions as ideal locations to do business.

HANNOVER MESSE 2011 will provide the industrial community the opportunity to promote business initiatives in 13 industries – Industrial Automation; Motion, Drive & Automation; Energy; Power Plant Technology; Wind; MobiliTec; Digital Factory; ComVac; Industrial Supply; CoilTechnica; SurfaceTechnology; MicroNanoTec; and Research & Technology.

U.S. program participants will consist of state and local government officials focused on economic development, university officials engaged in economic development, and other non-profit economic development practitioners.  Today is the last day to apply to participate in the program. 

Get additional information about registration fees and how to apply for the U.S. Trade & Investment Program to HANNOVER MESSE 2011.

After the final day in Mumbai, Secretary Locke and delegates from the 24 U.S. businesses who travelled to India on the six-day high-tech trade mission to India wrapped up their business.

Secretary Locke said, “This trade mission was a resounding success.  For some companies on our trip, ‘success’ was an initial meeting or consultation with Indian government or business leaders that will lead to deals down the road. For others, success was more immediate with some companies leaving India on the cusp of making multimillion dollar sales.  Either way, these companies have made important inroads into one of the most promising high-technology markets in the world.”

On Friday morning, Secretary Locke met with the executive committee of the U.S- India Importers’ Council, an initiative developed to support Indian companies that import goods and services from the United States.  The mission of this Council is to advance President Obama’s National Export Initiative, and to support the efforts of Indian companies that import products from the U.S.
 
Locke then visited Mumbai’s legendary Dabbawala Association organization to learn about their unique logistics operation that delivers home-cooked food to hundreds of thousands of people daily.  Association president Raghunath Medge provided Locke with an overview of the organization’s labeling and sorting methodology and the dispatch process. Dabbawala’s lunch delivery service has been cited as a model of entrepreneurship and supply chain management at the grass-roots level. In the afternoon, Locke engaged in multiple bilateral meetings with Indian officials.