A bill to encourage the expansion of the international trade in services, and for other purposes.

Amends the Trade Act of 1974 to declare that, in addition to other objectives, the principal U.S. negotiating objectives under the section dealing with nontariff barriers to and other distortions of trade shall be to: (1) reduce barriers to U.S. service sector trade in foreign markets; (2) modify practices which distort international trade in services; and (3) develop internationally agreed rules which are consistent with U.S. commercial policies and which will help ensure open international trade in services. Directs the U.S. Trade Representative (USTR), in order to achieve those objectives, to: (1) consult regularly with representatives of State governments concerning negotiating developments; (2) not enter into any negotiation involving a service sector over which the States have regulatory responsibility without consulting with representatives of the State governments; and (3) work with service sector advisory committees established under such Act.

Directs the USTR to consult with specified congressional committees concerning: (1) efforts to promote international negotiations on trade in services; and (2) the U.S. negotiating strategies and objectives, negotiation developments, and implementation agreements.

Requires the USTR to report to Congress: (1) on the proposed negotiations scheduled for the upcoming year and on the U.S. negotiating interests in specific service sectors; (2) on the coordination and consultation with the States concerning the negotiations.

Requires the USTR to consult with the appropriate State or Federal official before the President takes action to impose fees or restrictions on services.

Directs the USTR, through the Trade Policy Committee, to develop and coordinate the implementation of U.S. policies concerning trade in services.

Requires every Federal agency responsible for regulating a service sector industry to advise the USTR of information received by such agency concerning: (1) the treatment of U.S. service sector interests in foreign markets; or (2) allegations of unfair practices.

Authorizes the Secretary of Commerce to establish in the Department of Commerce a service industries development program. Sets forth the functions of such program.

Directs the USTR to coordinate with the States the development of U.S. policies concerning trade in services. Requires the Secretary and the USTR to provide State governments with advice and assistance on U.S. policies on international trade in services.

Directs the President to seek advice from the non-Federal governmental sector on matters relating to trade agreements. Authorizes the President to establish policy advisory committees representing non-Federal governmental interests to provide policy advice on matters relating to trade agreements and with respect to implementation of trade agreements.