The U.S. economy looks to the future from a position of strength, due in no small part to its openness and flexibility. U.S. tariffs are among the world�s lowest, averaging only 2.8 percent on internationally comparable terms. The United States is also the world�s leading trader in goods and services, accounting for about 14 percent of world exports and about 16 percent of imports. Americans benefit directly from open markets. U.S. producers benefit from exports of high-tech manufactures, agriculture, and services, among other products. U.S. workers enjoy higher paying jobs and U.S. consumers enjoy lower prices and more product variety.
On the threshold of the 21st Century, two related features of the U.S. economy are particularly striking. First, it has never been more prosperous and, second, it has never been as integrated into the world economy. The U.S. economy provides its citizens with living standards that are higher than those in many other major industrial economies  measured in terms of purchasing power, per capita income in the United States is 27 percent higher than in Japan and 41 percent higher than in Germany. The U.S. economy is able to provide such high living standards, in part, because Americans engage extensively in international trade. As an indicator of its size and scope, U.S. trade�s value relative to U.S. GNP has been almost 25 percent in recent years, the highest it has been at any point in the past hundred years.
The United States is the world�s leading services exporter, accounting for over 18 percent of all commercial service exports.
America gains most when other nations lower their trade barriers as we reduce ours. Indeed, as one of the world�s most open economies, we have a particular interest in promoting liberalization abroad. The system of binding commitments first established in the GATT and now advanced by the WTO has provided a framework for liberalization. Consistent with U.S. goals for an open multilateral trading system, the GATT was founded in 1948 on principles of reciprocity and non-discrimination. On this basis, it has been extremely successful in opening markets.
The WTO provides rules for protecting intellectual property rights. For the United States, one of the world�s most innovative nations, such rights convey substantial value. In 1998, U.S. exports of royalties and license fees amounted to about $37 billion.