USCIB APPLAUDS WTO DECISION ON

THE BASIC TELECOMMUNICATIONS AGREEMENT

For Immediate Release

Contact: David Fares, tel: 212-354-4861

e-mail: dfares@uscib.org

New York, N.Y., January 26, 1998 -- The United States Council for International Business (USCIB) applauds the decision taken today by the World Trade Organization (WTO) to bring the Basic Telecommunications Agreement into force on February 5.  “It is time for the benefits contained in the market access commitments made at the close of the negotiations last February to be realized,” said USCIB President Abraham Katz in a letter to USTR Charlene Barshefsky.

These commitments include market access, a reduction in foreign ownership restrictions, and adoption of regulatory principles to ensure fair competition.  Telecommunications services are critical to the development of a global information infrastructure.  The provision of these services on a competitive basis under fair regulatory rules will not only create opportunities for U.S. business, but will attract the capital, technology and expertise needed to promote economic and social growth in developed and developing countries, according to USCIB.

The market access commitments made in February last year were to have become effective on January 1, but were delayed because some countries were unable to formally notify the WTO of their acceptance of the agreement.  “We understand that some countries need to delay their acceptances primarily due to internal parliamentary procedures and that their acceptances will be forthcoming,” said Katz.  “There is every reason to move forward now to obtain the benefits of the commitments made by the 57 parties that will have their offers in effect on February 5. These commitments both to market access and regulatory principles will benefit businesses, their customers, and national economies.”

The USCIB, representing 300 global corporations, professional firms and business associations, is the American affiliate of the International Chamber of Commerce.  It also serves as the U.S. affiliate of the Business and Industry Advisory Committee (BIAC) to the OECD, and the International Organization of Employees (IOE).  As such, it officially represents U.S. business positions in the main intergovernmental bodies, and vis-à-vis foreign business committees and their governments.

The USCIB has been involved in bringing the negotiations on basic telecommunications to fruition from the outset of discussions.   It urged the WTO to continue efforts to bring additional nations into the organization, noting that the entry-into-force of the Basic Telecommunications Agreement will give increased momentum to this effort. 

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