Statement on Telecommunications Commitments by Countries Joining The WTO

February 1997

USCIB Position:

The United States Council for International Business (USCIB), representing 300 global corporations, professional firms and business associations, urges governments through the World Trade Organization (WTO) to continue efforts to bring additional nations into the world trading system.  In our May 1996 recommendations to the WTO’s Ministerial Meeting in Singapore, we took the position that all prospective members, regardless of size and importance, must comply with established WTO disciplines and commit to comparable trade liberalization.   

This statement provides elaboration of this position with regard to the telecommunications sector.  In light of the importance of telecommunications to world trade and commerce, the USCIB urges WTO members to include as one of the highest negotiating priorities in any accession protocol, the scheduling of meaningful market opening commitments in basic telecommunications services.  At a minimum, meaningful commitments would include 1) specifying a date certain for full market liberalization 2) removing foreign ownership restrictions and 3) adopting the “Reference Paper,” a set of pro-competitive regulatory principles, in its entirety.

Background:

On February 15, 1997, the WTO successfully concluded a landmark telecommunications agreement to expand trade in basic telecommunications through commitments by members to liberalize market access and national treatment.  This agreement is noteworthy because of the significant number of countries making commitments to liberalize their telecommunications regimes by a date certain and to adopt the Reference Paper.

Telecommunications services are critical to the development of a global information infrastructure.  Telecommunications liberalization creates the conditions necessary to attract capital, technology and expertise needed to promote economic and social growth in developing and developed countries.  Telecommunications also provide the infrastructure for electronic commerce.  In addition, liberalization of basic telecommunications services brings benefits to other sectors such as education, healthcare, manufacturing, transport and financial services which are highly dependent on reliable, accessible and affordable telecommunications.

The USCIB congratulates the WTO on achieving a comprehensive and far-reaching agreement for the liberalization of basic telecommunications services.  We applaud the substantial commitments by many countries that made a successful agreement possible.

Currently, the WTO is negotiating with a number of countries regarding the conditions of their entry into the WTO and their taking a responsible position within the world trading community.  These negotiations are critical not only to the individual countries, but also to the trading community at large.  In addition to other relevant factors, accession to the WTO for all prospective members should include market-opening commitments in basic telecommunications services as specified above.