WASHINGTON-Sen. Evan Bayh (D-Ind.) said he will block President Bush’s nomination of Rep. Rob Portman (R-Ohio) as the next U.S. trade representative, a move that comes as the administration ratchets up pressure on several countries to lower fees charged by foreign wireless operators to complete calls from the United States.
“I decided to take this step because I cannot sit idly by while American workers and companies continue to be victimized by foreign countries who violate our trade agreements with impunity,”said Bayh. “Every day American workers get up in the morning and already have one hand tied behind their backs because of illegal Chinese subsidies. Yet, the administration and the Republican leadership refuse to take any action. I am confident that if given a chance, the Senate will pass my legislation, helping American workers and giving congressman Portman an additional tool to fight unfair trade.”
Bayh said he believes Portman is qualified for the job. Rather, the Indiana Democrat is using the hold on Portman as leverage to force a Senate vote on his anti-subsidy trade bill. Portman would succeed Robert Zoellick, top U.S. trade negotiator in Bush’s first term and now deputy U.S. secretary of state.
Meantime, the Bush administration has taken aim at a number of countries over mobile-phone termination fees and spectrum policies that, according to U.S. officials, constitute trade barriers.
“We are deeply concerned by the tepid commitment some of our trade partners have shown to competition in the telecommunications sector. This is especially true in countries such as China, India and Japan, where national operators are already competing on a global level, but remain protected at home by relatively closed markets. It is very hard to see a legitimate reason why these markets should not be open to full and effective competition,” said Peter Allgeier, acting U.S. trade representative.
In particular, the administration is concerned about mobile termination fees, a matter also being mulled at the Federal Communications Commission. The focus on mobile termination charges-much of it prompted by struggling American long-distance telecom carriers-makes the U.S. mobile-phone industry nervous. Wireless carriers argue mobile termination fees are coming down and foreign regulators-not the U.S. government-are better positioned to address the issue.
“Another issue that is particularly troubling to us is the extremely high wholesale rates that we are seeing in some countries for calls to mobile networks,” said Allgeier. “These mobile termination charges involve tens of millions of dollars in charges U.S. companies and consumers pay for international calls. Protecting U.S. consumers and companies from being gouged will remain a USTR priority.”
The administration said it will be watching closely to see how countries respond to U.S. concerns. Among those concerns are:
- Peru’s determination in June implementing its requirement for cost-oriented mobile interconnection rates;
- Germany’s decision, by mid-year, addressing mobile interconnection rates;
- Mexico’s decision, expected by late summer, on a new mobile interconnection system;
- Japan’s allocation and assignment, by year end, of new spectrum for mobile operators; and
- China’s completion of a new telecom law, and its assignment of spectrum for new mobile services, both expected by year end.
On the Japan front, U.S. trade officials continued to press Japan over access to a mobile-phone market dominated by NTT DoCoMo Inc. and KDDI Corp.
On Capital Hill last Thursday, lawmakers put U.S.-China trade under the microscope.
Business representatives said while they want to take advantage of China’s huge business potential, they remain concerned about the process by which contracts are awarded and technical standards set.
“In China we have seen disturbing developments that standards and technical requirements are being deliberately used to limit market access of foreign products and give Chinese producers unfair advantage. And these concerns need more attention,” said Richard Wilkey, president of Fisher-Barton Co. on behalf of the National Association of Manufacturers in testimony submitted for a House Ways and Means Committee hearing.
