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Trade talk collapse could hurt wireless firms

WASHINGTON-The collapse of global trade talks in Mexico could hurt exports of the wireless industry and other high-tech sectors in the United States.

The Telecommunications Industry Association, which represents telecom manufacturers, said it was disappointed over the breakdown of World Trade Organization trade talks in Cancun, Mexico, last week.

“The mid-point ministerial meeting had the potential to yield significant benefits to all WTO members and to create new business opportunities for providers of information technology and communications goods and services, which play an integral role in promoting international economic and social development, job growth, education and productivity,” stated TIA. “While no agreement was reached on issues of importance for TIA members-notably non-agricultural goods and services market access-TIA hopes that WTO members can bridge their differences and continue the critical work begun in Doha (Qatar).”

At the same time, TIA praised U.S. Trade Representative Ambassador Robert Zoellick and his negotiating team for pursing an aggressive trade agenda.

In other trade-related developments, the Bush administration, charging Chinese trade practices hurt U.S. tech firms and facing mounting criticism about layoffs heading into the 2004 election season, has proposed a further Commerce Department reorganization in hopes of reducing a $40 billion trade deficit.

Commerce Secretary Donald Evans, addressing the Detroit Economic Club last week, said the department wants to create a new unfair trade practices team, office of industry analysis and assistant secretary for trade promotion.

The proposed changes and other initiatives will be spelled out in a report filed with President Bush later this month.

“Americans are willing to compete on even terms with any country in the world, but we will not stand for unfair competition. We are going to aggressively target unfair trade practices wherever they occur so that we can help create American jobs and improve the economy,” said Evans. “American manufacturers can compete against any country’s white collars and blue collars. But we will not submit to competing against another country’s choke collars.”

In addition to trade barriers and intellectual property piracy, Evans accused China of forcing the technology transfers from firms launching joint ventures in the country.

Last month, RCR Wireless News reported that congressional appropriators want the International Trade Administration-a Commerce Department unit-restructured to stem the tide of job losses that critics blame on China and others. China, the world’s largest mobile-phone market, has an $11.3 billion trade surplus with the United States.

Under the Evans plan, the new unfair trade practices team would reside in the Import Administration under ITA purview.

On a separate front, the Bush administration is trying to line up a lawmaker to sponsor legislation that would merge the Technology Administration, National Telecommunications and Information Administration and e-commerce functions of ITA.

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