[Federal Register Volume 64, Number 107 (Friday, June 4, 1999)]
[Notices]
[Pages 30094-30095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-14132]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Request for Comments Concerning Compliance by Germany With 
Telecommunications Trade Agreements

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of request for public comment.

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SUMMARY: Pursuant to section 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, compliance by Germany with its commitments under the World Trade 
Organization (WTO) Basic Telecommunications Agreement.

DATES: Comments are due by noon on Wednesday, June 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 Demetrios Marantis, Office of the General Counsel, 
(202) 395-3581.

SUPPLEMENTARY INFORMATION: Section 1377 of the Omnibus Trade and 
Competitiveness Act of 1988 requires the USTR to review annually, by 
March 31, the operation and effectiveness of all U.S. trade agreements 
regarding telecommunications products and services of the United States 
that are in

[[Page 30095]]

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.
    Beginning in the second quarter of 1998 and after concluding a 
number of satisfactory interconnection agreements with early new 
entrants to the German telecommunications market, Deutsche Telekom (DT) 
appears to have slowed the pace of interconnection negotiations and 
imposed tougher rates, terms and conditions for subsequent prospective 
entrants. All new entrants have no option but to interconnect with the 
DT network to access the German market, and Germany committed to assure 
non-discriminatory and cost-oriented interconnection rates, terms and 
conditions by adopting the WTO Reference Paper as part of its 
obligations under the WTO Basic Telecommunications Agreement.
    The 1999 review under section 1377, completed on March 30, 1999, 
established that the delay in assuring non-discriminatory and cost-
oriented interconnection rates, terms, and conditions raises serious 
doubts about Germany's compliance with its WTO commitments. The USTR 
noted that regulatory proceedings in Germany during April-May 1999 were 
expected to set important precedents in determining interconnection 
rates, terms, and conditions for all competitors to Deutsche Telekom. 
These proceedings related to (1) a complaint by a U.S. carrier, 
Econophone and, (2) a proposal for new tariff surcharges by Deutsche 
Telekom. The USTR announced it would monitor the outcome of these 
proceedings, which have now concluded to determine whether Germany is 
acting in accordance with its WTO obligations, and to determine whether 
to pursue WTO dispute settlement action thereafter if the outcome of 
the proceedings was not consistent with those obligations.
    Therefore, the USTR seeks comments on Germany's compliance with its 
specific commitments under the WTO Basic Telecommunications Agreement 
or with other WTO obligations, e.g., the WTO General Agreement on Trade 
in Services (GATS), including the Annex on Telecommunications, that 
affect market opportunities for U.S. telecommunications products and 
services.

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.
    The WTO Basic Telecommunications Agreement encompasses commitments 
in three areas: market access, national treatment, and pro-competitive 
regulatory principles (contained in the WTO Reference Paper). Germany 
committed to provide open market access for local, long-distance and 
international service and service suppliers of any other Member under 
the terms, limitations and conditions agreed and specified in its WTO 
services schedule. With respect to national treatment, Germany 
committed to ensure treatment no less favorable to U.S. services or 
service suppliers than the treatment provided to services or service 
suppliers of Germany. Finally, the pro-competitive regulatory 
principles, set forth in the WTO Reference Paper and incorporated in 
Germany's (and other members') schedule, committed it to establish an 
independent regulatory body, ensure interconnection at non-
discriminatory and cost-oriented rates, maintain measures to prevent 
anti-competitive practices such as cross-subsidization, and mandate 
transparency of government regulations and licensing.
    The USTR seeks comment on whether Germany has made the necessary 
legislative or regulatory changes to implement its commitments, or 
permits acts, policies, or practices in its markets that do not appear 
to be in compliance with these commitments. In addition, the USTR seeks 
comments on whether Germany permits 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.

Public Comment: Requirements for Submissions

    The USTR requests comments on the operation and effectiveness of 
the WTO Basic Telecommunications Agreement with respect to Germany. 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 Wednesday, 
June 16, 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 the 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 p.m. to 4 p.m., Monday through 
Friday, and is located in Room 101.
Frederick L. Montgomery,
Chairman, Trade Policy Staff Committee.
[FR Doc. 99-14132 Filed 6-3-99; 8:45 am]
BILLING CODE 3190-01-M