USTR Revisits Impediments to Global Telecommunications Trade

Foreign governments continue to routinely use local content requirements for domestic telecommunications infrastructure, restricting engagement in trade and global supply chains, the Office of the U.S. Trade Representative said in a review of telecommunications provisions in free trade agreements and World Trade Organization pacts. The U.S. will continue to pressure removal of those barriers to put in place “market-oriented” commerce, said the agency in its annual review, released April 1 (here).

It also criticized Indian license policies and tariffs on telecommunications manufacturing, and Indonesian license requirements. USTR urged Mexico to improve its telecommunication policies in order to put into force a bilateral Mutual Recognition Agreement, which the agency described as a “long outstanding NAFTA obligation.” Breaking down barriers to cross-border data flows remains another critical “trade priority” for the Obama administration, said USTR. Foreign governments sometimes impose those barriers in ways that overstep public policy concerns and “create a preference for local suppliers,” said USTR. Industry and lawmakers have repeatedly asked USTR to eliminate those barriers through trade agreements (see 1503200025). USTR pointed to Russia, Nigeria and Indonesia as countries with excessive impediments to data flows.

Foreign government restrictions on VoIP are also problematic and should be relaxed to encourage more foreign trade, said the agency. VoIP restrictions effectively create preferences for local suppliers by making contact with foreign companies more difficult, said USTR. China is particularly restrictive in its VoIP policies, the agency said. USTR said several other policies, such as those on roaming and termination rates, also inhibit trade. The review draws on only five comments from private industry and one reply comment, plus one comment from a foreign government, USTR said. The agency asked for comments in November 2014 (see 1411110004).