WASHINGTON-The Bush administration last week said it may impose sanctions on Columbia, Mexico, South Africa and Taiwan for telecom trade violations and accused five European Union nations and Japan of erecting illegal barriers to their telecom markets.
“Telecommunications trade agreements, particularly in the World Trade Organization, have been a driving force in opening world markets to high-technology trade and investment,” said U.S. Trade Representative Robert Zoellick. “These agreements have sparked increased competition and a dramatic growth in global networks, benefiting U.S. and foreign suppliers alike.”
While currently not targets of trade retaliation, France, Germany, Italy, Spain, the United Kingdom and Japan were identified by USTR for not living up to global telecom trade agreements.
Though many of the alleged violations do not involve wireless trade infractions, the report nonetheless provides valuable insight into the overall trade environment in the various countries.
USTR said it welcomed a reduction in interconnection rates in Peru, including plans by the Peruvian regulator-OSIPTEL-for trying to develop a methodology for analyzing the cost of terminating calls on mobile-phone networks.
“Vigorous monitoring and enforcement of these trade agreements is critical to ensuring competitive opportunities for U.S. operators,” said Zoellick.
During his Senate confirmation hearing, lawmakers pressed for stronger U.S. oversight of trade agreements and for the necessary funding to do so.
Last week, Zoellick met with President Bush and lawmakers at the White House on trade policy.
“The president made clear that the free trade agenda is a priority and that he would work in a bipartisan fashion to move it forward. Members of Congress, from both parties, constructively offered their ideas on what it would take to achieve success. I feel there is sincere goodwill and commitment to take on this challenge and get it done,” said Zoellick.
Bush is currently pushing hard for a free-trade zone that would encompass Canada, the United States, Mexico, Central America and South America. The president and some GOP lawmakers want to pass fast-track trade legislation, which would force Congress to vote trade deals up or down without amendments.
Bush’s trade policy is bound to meet opposition from Democrats and organized labor, which want to be able to attach environmental and labor conditions to trade agreements. In addition, lawmakers reportedly are looking at options other than punitive trade tariffs to use against countries that violate trade agreements.
One key trade matter of importance to the U.S. wireless industry is the pending merger between German giant Deutsche Telekom AG and VoiceStream Wireless. The last hurdle the deal faces is approval by the Federal Communications Commission, which appears poised to give it the thumbs-up this week.
Meanwhile, heightened tensions between the United States and China could impact the degree to which China keeps its word to open its telecom equipment and services markets to America and others. China, with a population of 1.3 billion people and insufficient telecom infrastructure, could become the world’s top wireless market in the future.
Yet, Chinese leaders, pressured by Communist hard-liners, are looking increasingly to steer wireless business to homegrown companies. In addition, China has proved unpredictable in dealing with U.S. wireless firms.
Overall, the EU is emerging as America’s biggest trade competitor in the future.
