For Immediate Release December 18, 2003 Contact: (202) 289-7460 Coalition of Service Industries Lauds CAFTA Completion (Washington, DC) The Coalition of Service Industries (CSI) today applauded the conclusion of the US-Central America Free Trade Agreement negotiations with the four Central American countries of El Salvador, Guatemala, Honduras, and Nicaragua. "This agreement contains provisions that are comprehensive in scope, and that will open markets and maximize trade and investment opportunities for U.S. suppliers across the spectrum of service industries." Said Robert Vastine, the President of CSI. Noting that Costa Rica is not able, at this point, to sign on to the agreement, Vastine said that the U.S. has also sent an extremely important message by standing firm in its refusal to accept the carve-out of any sectors; Costa Rica had sought to exclude its telecom and insurance market from the agreement. "By insisting that all sectors be included in the pact, the USTR has ensured that this agreement is comprehensive, and has maintained the high standards and high level of ambition that business will seek in future free trade agreements." He added. After the latest in a series of detailed briefings on the agreement today with officials from the Office of the U.S. Trade Representative, Vastine pointed out that the agreement will accord substantial market access across the Central American countries entire services regime, subject to very few reservations. This agreement was negotiated on a "negative list" basis, meaning that all services sectors were presumed to be open, at the outset of negotiations, unless explicit reservations were taken in specified areas. "This negotiating approach is absolutely vital to ensuring comprehensive liberalization of services markets." Vastine said. The services sector is crucial to the U.S. economy, and is an increasingly important component of the U.S. trade picture. Services account for approximately 81% of U.S. GDP, and a similar proportion of private sector employment in the United States. U.S. exports of services last year reached $279 billion, with a $74 billion services trade surplus. Sales of services by the foreign affiliates of U.S. companies abroad, meanwhile, reached $432 billion in 2001, and are a crucial means by which U.S. companies compete in world markets. # # # # # CSI is the leading business organization dedicated to reducing barriers to U.S. services exports and mobilizing support for domestic U.S. policies, including tax policies, which enhance the global competitiveness of its members. CSI was formed in 1982 to ensure that U.S. trade in services would become a central goal of U.S. trade policy and trade negotiations. It played a major role in the General Agreement on Trade in Services (GATS) and in the advocacy effort leading to the 1997 World Trade Organization (WTO) Basic Telecommunications and Financial Services Agreements. CSI’s knowledge of the process of services trade negotiations, its ties to the WTO and its network of relationships with governments and industry in other countries are unmatched. For a complete list of CSI members, visit our website at www.uscsi.org.