WORLD TRADE REPORT DOWNPLAYS OFFSHORING IMPACT
The 2005 World Trade Report (WTR), produced by the WTO Secretariat, argues that the "impact of offshoring services jobs is far stronger in the popular perception than on actual production, employment and trade patterns." Even though some estimates suggest that the US could lose up to 3.5 million jobs due to offshoring by 2015, the WTO counters that, even in a sector like information technology, the number of jobs affected is small relative to the overall employment levels in the developed countries affected.
Conversely, the report notes offshoring will not "dramatically change" the overall employment situation in the countries providing offshore services. For example, the 813,000 employees in India’s "software" sector account for roughly 0.25 percent of its total labour force.
The 2005 WTR — the third annual report in a series initiated by Director-General Supachai Panitchpakdi — also includes analytical essays on air transport services and the use of quantitative economic analysis in dispute settlement as well as recent and selected medium-term trade developments.
The report also draws attention to the costs, benefits, and effects of environmental, technical, safety, and sanitary and phytosanitary standards. While it states that strong conclusions on the impact of standards cannot be drawn, early evidence suggests that Members may find bilateral arrangements to recognise each other’s standards as equivalent to be particularly beneficial (see related story, this issue).
The 2005 World Trade Report is available online at http://www.wto.org/english/res_e/booksp_e/anrep_e/world_trade_report05_e.pdf.
ICTSD reporting; "Standards, ‘offshoring’ and air transport focus of 2005 WTR", WTO PRESS RELEASE, 30 June 2005; "WTO seeks to allay fears on moving IT services offshore", FINANCIAL TIMES, 1 July 2005; "WTO Report Cites Mixed Impact Of Product Standards on Trade Flows", WTO REPORTER, 5 July 2005.