[Federal Register Volume 64, Number 7 (Tuesday, January 12, 1999)]
[Notices]
[Pages 1854-1855]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-717]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Request for Comments Concerning Compliance With 
Telecommunications Trade Agreements and Market Opportunities for 
Electronic Commerce

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of request for public comment.

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SUMMARY: Pursuant to sections 1372 and 1377 of the Omnibus Trade and 
Competitiveness Act of 1988 (19 U.S.C. 3107), the Office of the United 
States Trade Representative (USTR) is reviewing, and requests comments 
on: the operation and effectiveness of the World Trade Organization 
(WTO) Basic Telecommunications Agreement, other WTO agreements 
affecting market opportunities for telecommunications products and 
services of the United States, the North American Free Trade Agreement 
(NAFTA), and other telecommunications trade agreements with Japan, 
Korea, Mexico and Taiwan; technical assistance for compliance with 
telecommunications commitments; and issues affecting market 
opportunities for electronic commerce. The USTR will conclude the 
review on March 31, 1999.

DATES: Comment are due by noon on Tuesday, February 16, 1999.

ADDRESSES: Comments must be submitted to Gloria Blue, Executive 
Secretary, Trade Policy Staff Committee, ATTN: Section 1377 Comments, 
Office of the United States Trade Representative, 600 17th Street, NW., 
Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT: William Corbett, Office of Industry, 
(202) 395-9586; or Joanna McIntosh, Office of the General Counsel, 
(202) 395-7203.

SUPPLEMENTARY INFORMATION: Section 1377 of the Omnibus Trade and 
Competitiveness Act of 1988 requires the USTR to review annually the 
operation and effectiveness of all U.S. trade agreements regarding 
telecommunications products and services of the United States that are 
in force with respect to the United States. The purpose of the review 
is to determine whether any act, policy, or practice of a country that 
has entered into a telecommunications trade agreement is not in 
compliance with the terms of such agreement, or otherwise denies to 
U.S. firms, within the context of the terms of such agreements, 
mutually advantageous market opportunities. For the current review, the 
USTR seeks comments on whether:
    (1) Any WTO members appear not to be in compliance with their 
specific commitments under the WTO Base Telecommunications Agreement or 
with other WTO obligations, e.g., the WTO General Agreement on Trade in 
Services (GATS), including the Annex on Telecommunications (GATS), that 
affect market opportunities for U.S. telecommunications products and 
services; and
    (2) Canada or Mexico have failed to comply with their commitments 
under NAFTA or whether Japan, Korea, Mexico or Taiwan have failed to 
comply with their commitments under bilateral telecommunications 
agreements with the United States.
    Consistent with the findings and purposes in section 1372 of the 
Act, the USTR also seeks comments on:
    (3) What foreign countries' compliance with their 
telecommunications trade agreement commitments would benefit most from 
bilateral or multilateral technical assistance, especially with respect 
to the pro-competitive regulatory commitments made under the of WTO 
Basic Telecommunications Agreement; and
    (4) Issues affecting market opportunities for electronic commerce 
(e.g., the Internet and other interactive computer services) as 
advanced telecommunications capabilities are deployed in foreign 
countries.

WTO Basic Telecommunications Agreement

    The GATS contains general obligations that apply to all members and 
services whether or not listed in WTO members' schedules and specific 
obligations that apply only to services scheduled by a member. The 
Fourth Protocol to the GATS is the legal instrument embodying seventy 
WTO members' basic telecommunications services commitments under the 
GATS. The Fourth Protocol is generally referred to as the WTO Basic 
Telecommunications Agreement. The agreement entered into force on 
February 6, 1998 and 65 WTO members have accepted it thus far. A 
description of each member's specific commitments as embodied in the 
agreement is available at www.wto.org.
    The WTO Basic Telecommunications Agreement encompasses commitments 
in three areas: market access, national treatment (including 
investment), and pro-competitive regulatory principles. For countries 
making full commitments: their market access commitments open local, 
long-distance and international service through any means of network 
technology, either on a facilities basis or through resale of existing 
network capacity; their national treatment commitments ensure treatment 
no less favorable to U.S. services or service suppliers than to 
services or service suppliers of the WTO member making the commitment 
(e.g., U.S. companies can acquire, establish or hold a significant 
stake in foreign telecommunications companies to the same extent as 
companies of the WTO member making the commitment); and the pro-
competitive regulatory principles, set forth in a Reference Paper and 
incorporated in the members' schedules, commit members to establish 
independent regulatory bodies, guarantee that U.S. companies will be 
able to interconnect with networks in foreign countries at fair prices, 
forbid anti-competitive practices such as cross-subsidization, and 
mandate transparency of government regulations and licensing.

[[Page 1855]]

    The USTR seeks comment on whether any WTO members that have 
accepted the WTO Basic Telecommunications Agreement have not made the 
necessary legislative or regulatory changes to implement their 
commitments, or permit acts, policies, or practices in their markets 
that do not appear to be in compliance with these commitments. In 
addition, the USTR seeks comments on whether any WTO members permit 
acts, policies, or practices that do not appear to be in compliance 
with other WTO obligations, e.g. the GATS, that affect market 
opportunities for telecommunications products and services of the 
United States.

NAFTA and Bilateral Trade Agreements

    The USTR seeks comments on the operation and effectiveness of NAFTA 
and the following bilateral trade agreements regarding 
telecommunications products and services, See 63 FR 1140 (January 8, 
1998) for further information concerning these agreements and USTER 
Press Release 98-38 (available at www.ustr.gov) for the results of the 
1997-98 section 1377 review concerning these agreements.
    Canada: NAFTA Chapter 13 and other telecommunications-related 
provisions.
    Japan: The Nippon Telephone and Telegraph (NTT) agreement, which 
expires on June 30, 1999; the 1994 U.S.-Japan Public Sector Procurement 
Agreement on Telecommunications Products and Services; and, additional 
telecommunications trade agreements with Japan, including a series of 
agreements on: international value-added network services (IVANS) 
(1990-91); open government procurement of all satellites, except for 
government research and development (R&D) satellites (1990); network 
channel terminating equipment (NCTE) (1990); and cellular and third-
party radio systems (1989) and cellular radio systems (1994).
    Korea: Agreements in the areas of protection of intellectual 
property rights (IPR), type approval of telecommunications equipment, 
transparent standard-setting processes and non-discriminatory access to 
Korea Telecommunications' procurement of telecommunications products.
    Mexico: NAFTA Chapter 13 and other telecommunications-related 
provisions; and, the 1997 understanding regarding test data acceptance 
agreements between product safety testing laboratories.
    Taiwan: The February 1998 agreement on WTO accession commitments in 
telecommunications services and interconnection pricing for provision 
of wireless services in Taiwan; and, the July 1996 agreement on the 
licensing and provision of wireless services through the establishment 
of a competitive, transparent and fair wireless market in Taiwan.

Technical Assistance

    The USTR also seeks comments on what foreign countries' compliance 
with their telecommunications trade agreement commitments would benefit 
most from bilateral or multilateral technical assistance, especially 
with respect to the pro-competitive regulatory commitments made under 
the WTO Basic Telecommunications Agreement. The USTR's goal is to 
collect information that will help to refine U.S. government programs 
and U.S. policies towards relevant multilateral organizations. This 
will assist concerned agencies in giving due weight to technical 
assistance activities in support of implementation of 
telecommunications trade commitments under the WTO.

Global Electronic Commerce

    On November 30, 1998, the President of the United States reported 
on the progress that the United States has made in the past fifteen 
months on implementing the July 1997 ``Framework for Global Electronic 
Commerce'' and launched five new initiatives, including an initiative 
to eliminate foreign barriers to the deployment of advanced 
telecommunications capabilities. See U.S. Government Working Group on 
Electronic Commerce, First Annual Report, November 1998 (available at 
www.ecommerce.gov). The particular focus of this initiative will be to 
identify issues that affect the competitive international marketplace 
for Internet and other interactive computer services as advanced 
telecommunications capabilities are deployed in foreign countries. 
Accordingly, the USTR seeks comments on issues affecting market 
opportunities for electronic commerce in foreign countries.

Public Comment: Requirements for Submissions

    USTR requests comments on: the operation and effectiveness of the 
WTO Basic Telecommunications Agreement, other WTO agreements affecting 
market opportunities for telecommunications products and services of 
the United States, the NAFTA, and other telecommunications trade 
agreements with Japan, Korea, Mexico, and Taiwan; technical assistance 
for compliance with telecommunications commitments; and issues 
affecting market opportunities for electronic commerce. All comments 
must be in English, identify on the first page of the comments the 
telecommunications trade agreement(s) discussed therein, be addressed 
to Gloria Blue, Executive Secretary, TPSC, ATTN: Section 1377 Comments, 
Trade Policy Staff Committee, Office of the U.S. Trade Representative, 
and be submitted in 15 copies by noon on Tuesday, February 15, 1999.
    All comments will be placed in the USTR Reading Room for inspection 
shortly after the filing deadline, except business Confidential 
information exempt from public inspection in accordance with 15 CFR 
2003.6. Confidential information submitted in accordance with 15 CFR 
2003.6, must be clearly marked ``BUSINESS CONFIDENTIAL'' in a 
contrasting color ink at the top of each page on each of 15 copies, and 
must be accompanied by 15 copies of a nonconfidential summary of the 
confidential information. The nonconfidential summary will be placed in 
the USTR Public Reading Room.
    An appointment to review the comments may be made by calling Brenda 
Webb at (202) 395-6186. The USTR Reading Room is open to the public 
from 9:30 a.m. to 12 noon, and from 1:00 p.m. to 4:00 p.m., Monday 
through Friday, and is located in Room 101.
Frederick L. Montgomery,
Chairman, Trade Policy Staff Committee.
[FR Doc. 99-717 Filed 1-11-99; 8:45 am]
BILLING CODE 3190-01-M