PRESS RELEASE For Immediate Release                                                                     ...............................Contact: John Goyer April 18, 2005                                                                       .................................. .............(202) 289-7460 x22 U.S. Service Industry Encourages Malaysian Leadership in WTO Services Negotiations (Kuala Lumpur, Malaysia) In a series of meetings with Malaysian government officials, a delegation of U.S. services companies, organized by the Coalition of Service Industries (CSI), encouraged Malaysia to take leadership in the services negotiations at the Doha Round of World Trade Organization (WTO) talks. The delegation was led by Norman Sorensen, the Chairman of CSI, and the President and CEO of Principal International, Inc. "There is tremendous potential gain for Malaysia and other emerging markets from a successful outcome on services in the Doha Round," Sorensen said. Even in lower income developing countries, the services sector represents an average of nearly 50% of GDP, and the figure is greater for developed and higher-income developing countries. In meetings with Malaysian officials, the delegation expressed concern over the faltering pace of WTO services negotiations, and encouraged Malaysia to submit a strong revised services offer by the end of May. " Malaysia is in a position to advance the services negotiations significantly both by submitting an improved revised offer, and by encouraging its partners in ASEAN, APEC, and elsewhere to do the same. Significant effort by all WTO members is needed if the Round is to be kept on track for the Hong Kong Ministerial." Sorensen said. CSI noted that the services liberalization envisaged in the WTO negotiations is very much consistent with Malaysia ’s development goals in its service and financial service sector. Moreover, multilateral liberalization in services should allow Malaysia to significantly increase its services exports. Malaysia ’s services exports are only about 10% of the value of its goods exports, while global exports of services are roughly 20% of the value of global goods exports, suggesting significant growth potential for Malaysia in this area. "Progress in the services negotiations is a key factor in reaching a balanced WTO Doha package that includes substantial liberalization in the agricultural, industrial and other areas. Unfortunately, thus far progress in the sector has lagged that of agriculture and goods," said Robert Vastine, President of CSI. Many countries have yet to submit initial services offers, and many of those that have been submitted offer little in terms of new liberalization and market access. “From financial services, to R&D, transportation, distribution, wholesaling, retailing, and others, services are crucial inputs to the manufacturing and agricultural sectors.” said Vastine. “Neither manufacturing, agriculture, or other sectors can develop without the infrastructure of competitive, high-quality services.” # # # # #