PRESS RELEASE For Immediate Release                                                                     ...............................Contact: Vladimir Gololobov May 16, 2005                                                                       .................................. ..............(202) 289-7460 x24 Services Industry Applauds ITC’s Report on Global Trade in Logistics Washington - The Coalition of Service Industries (CSI) applauds today’s publication of the International Trade Commission (ITC) report "Logistic Services: An Overview of the Global Market and Potential Effects of Removing Trade Impediments." The report concludes that the US logistic industry’s gains will be substantial if foreign market access impediments, such as commercial presence restrictions, cumbersome customs procedures, and non-transparent regulatory practices, are removed. “The report shows the importance of achieving greater trade liberalization in logistic services at bilateral and multilateral trade forums,” said David Spence, Chairman of the CSI Logistics Working Group and Managing Director for Regulatory Affairs at FedEx. “Given the increasing role of logistics in foreign trade, competitive practices in the sector will be beneficial not only for US providers of these services, but also for American exporters.” The report provides an overview of the global logistic service industry, identifies factors driving sectoral growth, examines trade and investment in logistics markets, and discusses the potential trade effects of removing impediments to logistic services. The ITC suggests that sectoral trade barriers can be further reduced through WTO services and trade facilitation negotiations under the Doha Round, and through bilateral free trade agreements. "The Commission's report clearly illustrates the critical importance of logistics to global trade and the need to dismantle existing trade barriers,” said Selina Jackson, Vice President for Public Affairs at UPS, a CSI member. “The report points to an increase of up to 21 percent in U.S. exports if barriers to this sector were reduced. Shippers, manufacturers, and consumers worldwide will reap the benefits when these barriers are eliminated. We commend the Commission for its analysis of this important issue." The ITC’s report was prepared at the request of the United States Trade Representative. In November 2004, CSI and its member companies testified at the hearing on global trade barriers in logistics as part of the ITC’s investigation. The ITC’s report is available at www.usitc.gov. ###