USTR Examines Telecoms Trade Agreements

by Glen Shapiro, LawAndTax-News.com, New York

13 April 2007

US Trade Representative Susan C. Schwab on Tuesday announced the results of the 2007 annual review of the operation and effectiveness of telecommunications trade agreements under Section 1377 of the Omnibus Trade and Competitiveness Act of 1988.

The 1377 Review identifies barriers facing US telecommunications service and equipment suppliers, evaluates progress towards resolving ongoing problems, and lays out the specific telecommunications-related issues on which USTR will focus its efforts this year.

The 1377 Review focused on country-specific issues, as well as more general areas of concern.

Concerns raised with regard to specific countries included:

• Egypt with respect to ensuring an open licensing regime for new operators and the public availability of Telecom Egypt’s interconnection arrangements;
• Thailand with respect to submitting a revised GATS schedule to bind its recent market-liberalizing telecom reforms which it has so far failed to do;
• Jamaica with respect to its universal service program that disproportionately applies to US operators and raises questions as to its transparency;
• Mexico with respect to ensuring cost-based interconnection rates, as well as providing market access for telecommunications equipment tested by US testing laboratories; and;
• Guatemala with respect to delays in ensuring interconnection between carriers.

The 2007 1377 Review also identified general areas of concern in several countries, including: barriers to the provision of satellite capacity; barriers to the provision of Voice over Internet Protocol (VoIP) services; limitations on access to and use of public telecommunications services (including leased lines); and issues related to regulatory independence, transparency, and excessive market entry requirements.

However, the USTR also marked significant progress on issues identified in past years’ reviews in several key markets.

Countries singled out for praise included Australia, which completed the privatization of its dominant operator, and India, which took steps to enhance foreign direct investment in its market and address problems related to competitive access to submarine cables as well as continued its efforts to phase out its access deficit charge.

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