[Federal Register Volume 62, Number 141 (Wednesday, July 23, 1997)]
[Notices]
[Pages 39573-39574]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-19556]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Proposed Revocation of Korea's Identification as a Priority 
Foreign Country in Telecommunications Trade

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of proposed action and request for public comments.

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SUMMARY: On July 26, 1996, the United States Trade Representative 
(USTR) identified the Republic of Korea as a ``priority foreign 
country'' (PFC) under section 1374 of the Omnibus Trade and 
Competitiveness Act of 1988 (the Act) because certain acts, policies, 
and practices denied mutually advantageous market opportunities to U.S. 
suppliers of telecommunications goods and services. As a result of 
negotiations following this identification, Korea has made measurable 
progress towards the elimination of the objectionable acts, policies, 
or practices which were the subject of the specific negotiating 
objectives determined by the USTR under section 1375 of the Act. The 
Office of the USTR seeks comments on its proposal to revoke Korea's PFC 
identification on August 11, 1997.

DATES: Comments are due by August 8, 1997.

ADDRESSES: Comments may be submitted to Ms. Sybia Harrison, Office of 
the General Counsel, Room 223, Office of the U.S. Trade Representative, 
600 17th Street, NW, Washington, D.C. 20508.

FOR FURTHER INFORMATION CONTACT:
Seen Murphy (202-395-6813), Office of Asia and the Pacific, or Joanna 
McIntosh (202-395-7203), Office of the General Counsel, Office of the 
U.S. Trade Representative, 600 17th Street, NW, Washington, D.C. 20508.

SUPPLEMENTARY INFORMATION: Section 1374 of the Omnibus Trade and 
Competitiveness Act of 1988 (19 U.S.C. 3103) provides that the USTR may 
identify as a ``priority foreign country'' those countries which 
maintain barriers that deny U.S. telecommunications products and 
services mutually advantageous market opportunities.
    On July 26, 1996, the USTR identified Korea as a PFC as a result of 
Korea's failure to eliminate barriers that deny mutually advantageous 
market opportunities for U.S. providers of telecommunications goods and 
services and that are not covered by the existing agreements with 
Korea. 61 Fed. Reg. 40279 (Aug. 1, 1996). The barriers included, but 
were not limited to the Korean Government's intervention in

[[Page 39574]]

procurements by private Korean companies, improper promotion of 
domestic manufacturing of high technology telecommunications products, 
and limitations on foreign ownership of telecommunications services. As 
described below, over the last twelve months, Korea has conducted 
multilateral and bilateral negotiations with the United States and made 
measurable progress in eliminating the objectionable acts, policies, 
and practices which were the subject of the specific negotiating 
objectives determined by USTR:
    (1) Korea participated in the successful conclusion of the 
Information Technology Agreement (ITA), negotiated under the auspices 
of the World Trade Organization (WTO), which was concluded in December 
1996. Under the ITA, Korea will eliminate in stages tariffs and customs 
duties on an agreed package of information technology products, 
including telecommunications equipment. Korea will reduce tariffs to 
zero by the year 2000 for all covered products, except for thirteen 
items for which tariffs will be reduced to zero by 2004. These tariff 
eliminations will increase market access in Korea for U.S. suppliers of 
telecommunications goods.
    (2) Korea also participated in the successful conclusion in 
February 1997 of the WTO basic telecommunications services 
negotiations. Beginning in January 1998, Korea will allow increased 
foreign ownership of domestic telecommunications services companies and 
adopt a number of transparent and pro-competitive regulatory 
principles. These commitments will enhance competition in the Korean 
telecommunications services sector and provide new opportunities for 
U.S. investors and services operators, as well as equipment suppliers.
    (3) The Korean Ministry of Information and Communication (MIC) 
issued a policy statement on July 14, 1997 clarifying recent revisions 
of government practices, procedures and objectives in the 
telecommunications sector. The policy statement provides guidance to 
domestic and foreign telecommunications goods and services suppliers in 
Korea and enhances transparency by correcting misperceptions regarding 
the treatment of foreign suppliers. The specific policies embodied in 
the MIC policy statement include: national treatment and non-
discrimination for foreign companies; government non-intervention in 
private sector procurement; transparent procedures on services 
licensing, equipment certification and type approval; foreign ownership 
limitations; the protection of intellectual property and proprietary 
information; technology transfer; satellite services authorization; 
pro-competitive regulatory measures; and the evolving role of the 
Korean Communications Commission to further promote and protect fair 
competition in the Korean market.
    The United States will continuously monitor Korea's adherence to 
the above commitments and will enforce them, as appropriate, under U.S. 
trade laws and applicable WTO procedures to ensure effective 
implementation.

Public Comment: Requirements for Submissions

    Pursuant to the Act, this notice invites written comments from 
interested parties on the proposed action. Submissions are to be 
received in writing by not later than 5:00 p.m. on August 8, 1997 and 
must be in English and provided in five (5) copies. A person requesting 
that information contained in a comment submitted by that person be 
treated as confidential business information must certify that such 
information is business confidential and would not customarily be 
released to the public by the commenter. Confidential business 
information must be clearly marked ``BUSINESS CONFIDENTIAL'' in a 
contrasting color ink at the top of each page of each copy. A person 
requesting that information or advice contained in a comment submitted 
by that person, other than business confidential information, be 
treated as confidential in accordance with section 135(g)(2) of the 
Trade Act of 1974 (19 U.S.C. 2155)--
    (1) Must so designate that information or advice;
    (2) Must clearly mark the material as ``SUBMITTED IN CONFIDENCE'' 
in a contrasting color ink at the top of each page of each copy; and
    (3) Is encouraged to provide a non-confidential summary of the 
information or advice.
    The Office of the USTR will maintain a file on this issue, 
accessible to the public, in the USTR Reading Room: Room 101, Office of 
the United States Trade Representative, 600 17th Street, N.W., 
Washington, D.C. 20508. The public file will include a listing of any 
comments received by the Office of the USTR from the public with 
respect to this proposal. An appointment to review the public file may 
be made by calling Brenda Webb, (202) 395-6186. The USTR Reading Room 
is open to the public from 9:30 a.m. to 12 noon and 1:00 p.m. to 4:00 
p.m., Monday through Friday.
Irving Williamson,
Acting General Counsel.
[FR Doc. 97-19556 Filed 7-21-97; 3:59 pm]
BILLING CODE 3190-01-M