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US Services Trade by Multinationals
Dec 20, 2000

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  • Comment Board
  • Services sold by US multinationals are heavily concentrated in a few markets (Graph 3). In 1998 Europe accounted for 60% of services sold by US multinationals in foreign markets with Britain itself generating half of all revenue. Canada, Latin America and Japan explain the remaining bulk of US services trade through commercial presence. Since 1993 sales generated by Latin America have increased following the wave of structural reforms implemented in the region and growth was strengthened furthermore in the second part of the 1990s making Latin America the second most important market for US sales of services through commercial presence by the end of the decade. This performance was propped up by fast growing sales in utilities and telecommunications and professional services. Among professional services computer and data processing services explain the high growth rates, although accounting and engineering services continue to explain over 60% of the sales in these industries.


    European affiliates with a 60% share of the US market are also the main provider of services through commercial presence. However, Britain which, purchased most of US services sold in Europe also generates 37% of services sales by European multinationals in US markets. Switzerland, the Netherlands, France, and Germany together generate together over 60% of European services sales in the US making them big beneficiaries of this fast growing market.

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