WASHINGTON-A major breakthrough to erase telecommunications equipment tariffs by the year 2000 came last week when the European Union won political support from foreign ministers of EU member nations.
The United States has been negotiating with the EU, Japan and Canada to reach an Information Technology Agreement in time for the ministerial meeting of the World Trade Organization in Singapore scheduled for Dec. 9-13.
Backers argue such an accord would lower equipment costs and open new trade opportunities.
Meanwhile, unsteady progress continues toward reaching another historic free trade pact, this one on telecommunications services.
The goal of inking a World Trade Organization agreement on basic telecommunications by Feb. 15 has been bogged down by questions on global satellite systems and other international telecom services.
However, a consensus was reached last month in Geneva to enable global roaming for subscriber units served by international mobile satellite systems.
The United States recently singled out Asian nations for not coming forward with progressive proposals for opening their telecommunications markets. WTO talks ended in April with countries pointing fingers at each other, but negotiators agreed to extend the deadline to Feb. 15.
The United States has offered to eliminate the 25 percent foreign ownership cap on U.S. telecommunications carriers and has recommended the international satellite market be competitive.
Today, the International Maritime Satellite Organization and the International Telecommunications Satellite Organization-both multinationally owned and operated-dominate global satellite telecommunications. Both entities likely will be restructured in coming years, meaning they will lose certain legal and competitive advantages over private-sector satellite systems.
“I think we’re optimistic. There are still some outstanding issues and we still don’t have a critical mass,” said Ambassador Vonya McCann, U.S. coordinator for international communications and information policy at the State Department.
Still, McCann and other U.S. officials believe it will be a challenge getting countries to better their proposals for removing trade barriers to telecommunications markets by Feb. 15.
For sure, the United States will not compromise if other countries don’t come forward with market-opening offers by that date. The United States has a competitive advantage over most, if not all, its trading partners in telecommunications and information technology.
Thus, the United States arguably has the most of any nation to gain if industrialized nations as well as fast-growing developing economies in Asia, South America, Africa and the Middle East open their markets to U.S. telecommunications products and services. And the most to lose if they don’t.
On the other hand, the United States is a handsome market for foreign suppliers. For Canada and the European Union, gaining full access to the U.S. market is a top priority. But because they lack the grand trade vision of the United States, they are satisfied with entering the market and care little whether other nations remove trade barriers.
As a result, the United States carries the biggest burden of getting WTO countries on board for a basic telecommunications services accord.
High-level talks on telecom free trade are scheduled Nov. 11-15 in Geneva.
