USTR Issues Results of its 2005 Section 1377 Review of Telecommunications Trade Agreements
The Office of the U.S. Trade Representative (USTR) has issued the results of its 2005 Section 1377 Review of Telecommunications Trade Agreements (1377 Review), which it states both identifies barriers facing U.S. telecommunications services and equipment providers, and lays out the specific telecommunications-related issues on which the USTR will focus its efforts this year.
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The USTR conducts the 1377 Review annually in order to assess the operation and effectiveness of U.S. telecommunications trade agreements, pursuant to Section 1377 of the Omnibus Trade and Competitiveness Act of 1988.
USTR's 2005 Section 1377 Review Identifies U.S.' Main Issues of Concern
The USTR states that the main issues identified in the 2005 Section 1377 Review include existing practices or prospective concerns relating to:
Excessive interconnection rates for mobile networks in Germany, Japan, Mexico, Peru, and Switzerland;
Restrictions on access to and use of leased lines in Germany and submarine cable capacity in India;
Excessive regulatory requirements in China, Colombia, and India;
Burdensome testing and certification requirements in Mexico and Korea; and
Limitations on suppliers' choice of technology in China and Korea.
The USTR adds that in several key areas, trade partners are expected to be soon taking decisions that could address problems U.S. companies identified in the 2005 1377 Review. USTR explains that it will follow such developments very closely, including:
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 telecommunications law, and its assignment of spectrum for new mobile services, both expected by the end of 2005.
The USTR states that it will continue its efforts to open markets and expand trade opportunities in telecommunications through a range of activities including: bilateral and multilateral engagement with trade partners to hold them accountable to fully implementing their existing commitments; negotiating and adopting strong disciplines to eliminate or prevent the emergence of trade distorting barriers; and where warranted, initiating dispute settlement action.
USTR Press Release on 2005 1377 Review (dated 03/31/05) available at http://www.ustr.gov/Document_Library/Press_Releases/2005/March/USTR_Issues_2005_1377_Review_of_Telecommunications_Trade_Agreements.html
Section 1377 Review Homepage
http://www.ustr.gov/Trade_Sectors/Services/Telecom/Section_1377/Section_Index.html
2005 Section 1377 Review
http://www.ustr.gov/assets/Trade_Sectors/Services/Telecom/Section_1377/asset_upload_file959_7529.pdf