WTO Director-General Ngozi Okonjo-Iweala has sounded a cautionary note against the dangers of "unproductive trade wars", as she wrote extensively about how much the United States has gained from the global trade system, particularly trade in services.
Okonjo-Iweala recently penned an article titled "America's Big Trade Win," in which she said the U.S. has been "a clear winner" in the global services trade. Compelling data employed by the WTO chief stands in stark contrast with the U.S. government's claim that other countries have taken advantage of it in global trade, a pretext that Washington has used to impose tariffs and other restrictive measures on its trade partners all over the world.
In 2023, U.S. services exports were worth more than 1 trillion U.S. dollars, accounting for 13 percent of the global total. The U.S. runs a services trade surplus with most major economies, with the surplus totaling nearly 300 billion U.S. dollars in 2024, according to the article.
Particularly notable is the U.S. near-monopoly in high-value-added services. Last year, U.S. companies received more than 144 billion U.S. dollars in intellectual-property royalties and licensing fees, far surpassing other countries, said the article.
American workers are also benefiting from this robust trade. In 2022, U.S. services exports directly created 4.1 million jobs, according to the U.S. International Trade Administration, while around half of the 5.1 million jobs supported by manufacturing exports are actually related to services, it said.
According to the article, WTO economists estimate that by 2040, digitalization will boost the share of services in global trade to 37.2 percent. Digital services have become the fastest-growing sector in global trade, with their value expanding fourfold from 2005 to 2023, reaching 4.25 trillion U.S. dollars, of which the U.S. claims over 15 percent.
All the data prove the Trump administration's claim that Americans are being "ripped off" by foreign countries solely based on the U.S. deficit in traded goods doesn't hold water.
WTO chief warns against "unproductive trade wars" in article about US's win in global trade
WTO chief warns against "unproductive trade wars" in article about US's win in global trade
