	Introduction

"Services" refers to a range of economic activities that involve the sale and delivery of an intangible product, such as audiovisual, construction, and computer and related services; energy; express delivery; e-commerce; financial, accounting, and legal services; retail and wholesaling; transportation; telecommunications; and travel. For many countries, including the United States, trade in services is a large and growing component of their overall trade. The 1995 World Trade Organization (WTO) General Agreement on Trade in Services (GATS), and subsequent annexes, established basic rules for global trade in services. The purpose of the ongoing Trade in Services (TiSA) negotiations is to build on those rules by further increasing liberalization among the 23 negotiating parties, including the United States and European Union (EU), to open markets to foreign service providers and enhance rules governing services trade. Congress also has a direct role in overseeing the ongoing TiSA negotiations, including in the context of the U.S. trade negotiating objectives on services it set under the Trade Promotion Authority (TPA) legislation passed in June 2015 ( P.L. Services accounted for 78% of U.S. private sector gross domestic product (GDP) and for 91.8 million (82%) private sector employees in 2015. These non-tariff barriers (NTBs) are often in the form of government regulations. The United States has a long history in tackling trade barriers in services in multiple forums, most recently in the proposed Trans-Pacific Partnership (TPP). If the parties reach agreement on TiSA while TPA is in effect, and if the Administration meets certain statutory requirements and timelines, TPA allows Congress to consider the required implementing bill under expedited ("fast track") procedures. The GATS provides the foundation or floor on which rules in other agreements on services are based, including in U.S. free trade agreements (FTAs). Trade in services has been included in subsequent U.S. bilateral and regional FTAs, including in the TPP. Services and services trade have evolved significantly since GATS went into effect in 1995. Trade in Services Agreement (TiSA) Negotiations

Largely because of the lack of progress in the WTO Doha Round, a group of 23 WTO members are engaged in discussions on a potential sector-specific, plurilateral agreement to liberalize trade in services. Negotiations on a Trade in Services Agreement (TiSA) were launched in April 2013, initially led by Australia and the United States. The 23 TiSA participants account for about 70% of world trade in services (see Figure 1 ). Twelve of the Group of 20 (G-20) members are participating in TiSA, but some key major emerging markets in the G-20 are not currently parties to the TiSA negotiations, including Brazil, China, and India. China's interest has generated differences among TiSA participants. Supporting this argument is the concept that the agreement overall is reportedly being structured so that it can be "multi-lateralized" in the future and incorporated into the WTO. On the other hand, participants may be able to update TiSA as a stand-alone agreement similar to the current negotiation. Key Provisions and Negotiating Issues

The structure of the agreement, while still under negotiation, is expected to include four parts: 
A core text that incorporates and builds on key provisions of the GATS and includes horizontal provisions that would apply to all parts of the agreement; Commitments on market access and national treatment with each party's schedule and list of exceptions or non-conforming measures; Specific sectoral regulatory annexes; and Institutional provisions that set the ground rules for how TiSA would function, addressing issues such as amending the agreement in the future or how new members could join. Transparency. State-Owned Enterprises (SOEs). Negotiators are also considering whether to implement a rotating secretariat position. Issues for Congress

The outlook and timeline for the ongoing TiSA negotiations remain uncertain, as participants are tackling difficult and complex issues. How would TiSA fit with other existing and potential U.S. FTAs, such as the proposed TPP and T-TIP? Should the United States pursue regulatory cooperation efforts in addition to trade agreements in specific service areas such as cross-border data flows where cultural and legal differences and changes in technology limit what can be achieved in trade agreements?
Congress has broad interest in trade in services, which are a large and growing component of the U.S. economy. It also has a direct interest in establishing trade negotiating objectives and potential consideration of a future Trade in Services Agreement (TiSA). Services account for 78% of U.S. private sector gross domestic product (GDP), 82% of private sector employees in 2015, and an increasing portion of U.S. international trade. "Services" refer to a growing range of economic activities, such as audiovisual, construction, and computer and related services; energy; express delivery; e-commerce; financial, legal, and accounting services; retail and wholesaling; transportation; telecommunications; and travel. Services include end-use products, such as legal services and financial products. Many services, such as distribution or transportation services, also facilitate other parts of the economy, helping goods move through global supply chains.
To open foreign markets to U.S. businesses and address trade barriers to services, which may be in the form of government regulations, the United States has engaged in multiple trade agreement negotiations. The World Trade Organization (WTO) General Agreement on Trade in Services (GATS) provides the foundation or floor on which rules in other agreements on services are based, including in U.S. free trade agreements (FTAs). Trade in services is addressed in U.S. bilateral and regional FTAs, including the proposed Trans-Pacific Partnership (TPP), concluded in October 2015. However, ongoing negotiation efforts to update GATS are stalled, even as technology and services trade have evolved significantly since GATS went into effect in 1995. To address these issues, 23 parties are engaged in discussions on a potential sector-specific, plurilateral agreement to further liberalize trade in services.
Negotiations on a proposed Trade in Services Agreement (TiSA) were launched in April 2013, with the United States and Australia initially at the lead. TiSA participants account for about 70% of world trade in services and include the European Union, in addition to the United States and Australia. Some key major emerging markets, including Brazil, China, and India, are not currently parties to the TiSA negotiations, though China has indicated an interest in joining. While TiSA negotiations are occurring outside of the WTO, the agreement is reportedly being structured so that it can be potentially "multi-lateralized" in the future and incorporated into the GATS, making it applicable to all WTO members.
The final structure and sectors to be covered in TiSA remain under negotiation, but some key issues have emerged. For the United States, significant interests include expanding market access beyond the current GATS commitments, building disciplines on transparency, setting common rules for cross-border data flows and digital trade, and ensuring fair competition with state-owned enterprises. TiSA participants have conducted 21 negotiating rounds through 2016, and aim to complete negotiations in 2017 but no new rounds are scheduled. The outlook and timeline for the ongoing TiSA negotiations remains uncertain, as participants are tackling difficult and complex issues such as regulatory processes and digital trade frameworks. The new U.S. administration position on TiSA is unclear.
TiSA is one of several trade agreements that may be considered by Congress in the near future. Congress passed, and the President signed into law, Trade Promotion Authority (TPA) legislation in June 2015 which expires on July 1, 2018, with a possible extension to July 1, 2021. As part of TPA, Congress established principal trade negotiating objectives for services. If agreement on TiSA is reached while TPA is in effect, and if certain statutory requirements are met, TPA would provide for expedited legislative consideration of legislation to implement a final TiSA. Congress may opt to exercise oversight on the progress of the ongoing TiSA negotiations and consider a number of related factors such as comparisons with other agreements.