WASHINGTON-The Clinton administration last week accused nine countries of violating global telecom trade agreements, with Japan and Mexico cited as the worst offenders.
The U.S. trade representative’s report follows by a week the White House’s charge that Japan has not lowered interconnection rates, which telecom carriers must pay to connect to Japan’s public telephone network.
In addition to Japan and Mexico, USTR said South Africa, Peru, Germany, Canada, the United Kingdom, Israel and Taiwan were guilty of telecom service trade violations.
“The WTO (World Trade Organization) Basic Telecommunications Agreement is expanding the global reach of the Internet and electronic commerce,” said U.S. Trade Representative Charlene Barshefsky.
Barshefsky said USTR’s annual review found that, in most cases, countries alleged to have violated telecom trade accords are taking steps to address complaints of U.S. telecom carriers.
“We will follow up to ensure that expected actions are taken on a timely basis and that those actions are consistent with WTO commitments,” said Barshefsky.
Indeed, USTR outlined a series of deadlines for the nine countries to take corrective action.
For example, USTR said Israel pledged to end an objectionable measure by Dec. 31 and that Taiwan has committed to eliminate certain exclusivity rights from three licenses that eventually will be granted to new entrants.
If still dissatisfied after further negotiations, the Clinton administration could choose to file complaints with the WTO.
While some alleged telecom services trade violations only indirectly impact U.S. wireless firms doing business overseas, USTR’s report provides insight generally into the telecom regulatory climate abroad and how much or little countries are doing to open up monopoly markets that have been state-owned in the past.
On a related front with major implications for the U.S. mobile phone industry, USTR said it is being urged by U.S. telecom equipment firms to expand market-opening initiatives in Europe, Asia-Pacific and the Americas.
“We will continue to work toward lower regulatory costs and faster approval for U.S. telecommunications equipment exports through regional MRA (mutual recognition agreements) efforts and to eliminate non-tariff barriers around the world for these high-technology products,” said Barshefsky.
She added, “Over the past year we have made significant progress regarding market access in Europe for U.S. markers of third-generation mobile telecommunications systems.”
USTR said licensing rules issued so far by nine European Union member states have made clear that all 3G technologies approved by the International Telecommunication Union can be licensed for European use, including technologies-like Code Division Multiple Access-developed in the United States.
What remains unclear, however, is whether the EU will go forward with a mandate to use technology favored by Finland’s Nokia Corp. and Sweden’s L.M. Ericsson for a 3G pan-European network.
Elsewhere, House Speaker Dennis Hastert (R-Ill.) last week said a vote to give China priority trade treatment will be taken the week of May 22. While the Senate is expected to easily approve the China trade bill, the prospects for passage of the legislation in the House is uncertain.
China, with its 1.3 billion people and poor telecom infrastructure, is viewed as the biggest potential wireless telecom market in the world.
The administration, telecom firms and other businesses are waging an aggressive lobbying campaign on Capitol Hill to get the China free trade bill passed.
At the same time, organized labor, environmentalists and human rights advocates are trying to convince House Democrats-swing votes in the debate-to kill the measure.
Commerce Secretary William Daley met with Chinese leaders in Beijing last week to discuss trade legislation pending in Congress. Later this month, Daley will return to China and bring with him a group of undecided House members in hopes of persuading them to vote in favor of the China trade bill in late May.
China last year agreed to open wireless telecom service (about a 50-percent foreign equity stake) and equipment markets as part of a broad market-opening trade pact with the United States. In exchange, President Clinton agreed to support China’s entry into the WTO.
China, however, is having a harder time getting the EU’s blessing for WTO membership. For example, the EU wants China to agree to allow 51-percent foreign ownership in certain telecom joint ventures.
