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Telecommunications in the Uruguay Round

  • GATT
  • Published:
Intereconomics

Abstract

Within the Uruguay Round, the “Group of Negotiations on Trade in Services” deals with the formation of a multilateral framework of principles and rules for the “progressive liberalization” of trade in services. Telecommunications is of high priority in the framework preparations, both as a delivery vehicle for information-intensive services and as a service industry itself. This article attempts to clarify possible economic and developmental opportunities for LDCs which could emerge from the Uruguay negotiations regarding telecommunications and information-intensive services. It contains an up-to-date analysis of the present results of the Uruguay Round and offers an outlook on the consequences of the negotiations.

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References

  1. Cf. C. Dörrenbächer, O. Fischer: Die Dienstleistungsverhandlungen in der Uruguay-Runde, konfligierende Interessen im Bereich “Telekommunikationspolitik”, in: International, No. 1 (1990), pp. 13–21, here p. 16 f.

  2. Cf. K. P. Sauvant: The Tradeability of Services, in: World Bank and United Nations Centre on Transnational Corporations. Services in the World Economy, Washington D.C. and New York 1990, forthcoming.

  3. Cf. J. Howells: Economic Technological and Locational Trends in European Services (Report from the FAST Programme of the Commission of the EC), Brussels and Luxembourg 1988, p. 128.

  4. Cf. J. Howells, op. cit., Economic, Technological and Locational Trends in European Services (Report from the FAST Programme of the Commission of the EC), Brussels and Luxembourg 1988, p. 98 and 100. For the growth rates of the TC equipment markets, cf. C. Dörrenbächer, W. Oesterheld: Prognosen zu Technisch-Wirtschaftlichen Potentialen neuer Technologien, in: DGB: Informationen zur Humanisierung der Arbeit und zur Technologiepolitik, No. 5 (1988), p. 44. For the EC interest in liberalization of third countries' markets. cf. Kommission der Europäischen Gemeinschaften: Grünbuch über die Entwicklung des Gemeinsamen Marktes für Telekommunikationsdienstleistungen und Telekommunikationsgeräte, COM (87) 290 final, Brussels 1987, p. 174.

  5. Cf. “Telecom Annex to Framework on Trade in Services” (possible elements of a telecom annex proposed by Geza Feketekuty, counsellor to US Trade Representative in November 1989), in: Transnational Data and Communications Report, Dec. 1989, p. 6.

  6. Ibid. “Telecom Annex to Framework on Trade in Services” (possible elements of a telecom annex proposed by Geza Feketekuty, counsellor to US Trade Representative in November 1989), in: Transnational Data and Communications Report, Dec. 1989, p. 6.

  7. Ibid. “Telecom Annex to Framework on Trade in Services” (possible elements of a telecom annex proposed by Geza Feketekuty, counsellor to US Trade Representative in November 1989), in: Transnational Data and Communications Report, Dec. 1989, p. 6. Additionally, the issue relates to licensing of facilities, pricing arrangements, cost-accounting practices, technical standards, interconnection practices and transparency provision. See: Group of Negotiations on Services: Trade in Telecommunications Services, GATT Secretariat MTN.GNS/W/52, 19 May 1989, p. 2 f.

  8. Cf. UNCTAD: Services: Issues Raised in the Context of Trade in Services, UNCTAD Secretariat TD/B/1197 (1988), p. 16.

  9. Cf. M. Jussawalla: Trade in Data Services, Developing Countries and GATT: The Institutional Aspects, in: J. Becker (ed.): Transborder Data Flow and Development, Bonn 1987, pp. 109–130, here p. 119.

  10. See: Group of Negotiations on Services: Elements for a Draff which would permit Negotiations to take Place for the Completion of all Parts of the Multilateral Framework. GATT Secretariat MTN.GNS/28, 18 December 1989 (in the following: “Draft”). The draft is based on a text adopted by GNS ministers at a meeting in Montreal (“Montreal Declaration”), 5–9 December 1988. Cf. GATT: News of the Uruguay Round (NUR) 023, 14 December 1988, pp. 40–43.

  11. Cf. Draft: II (c) Market Access.

  12. Cf. Draft: II (d) National Treatment (basically, the definition is derived from GATT: paragraph 4 of Article III concerning national treatment for imported goods).

  13. Cf. Draft: III. Coverage and Application of a future framework on trade in services. B. Mechanics of liberalization No. 5. For instance, the USA has an interest in a specific sector-agreement on telecommunications which becomes clear with the above-mentioned “Telecom Annex to Framework Agreement on Trade in Services” (cf. footnote 7).

  14. Cf. Draft: II (i) Regulatory Situation.

  15. Within the draft, some GNS members asserted their opinion that permanent establishment and foreign direct investment should not be covered by the definition of trade in services. Cf. Draft: I. Scope/definition, No. 2.

  16. See report in: News of the Uruguay Round, NUR 029 (1989), p. 6 f.

  17. Cf. Draft: II (b) Progressive Liberalization, No. 4, and Draft: II (g) Safeguards, No. 2.

  18. Cf. GATT: Ministerial Declaration on the Uruguay Round, in: GATT: Focus Newsletter, 41/1986, p. 5.

  19. Cf. Group of Negotiations on Services: Trade in Telecommunications Services, op. cit., p. 11 f. The GNS also cooperates with other important organizations, such as INTELSAT, OECD and UNCTAD.

  20. However, this part of the draft is (like many parts of the draft) put in parentheses because it does not reflect the opinions of all GNS participants. Cf. Draft: II (h) Exceptions, No. 1.

  21. Cf. M. Agi: Communications and Third-World Development, in: Transnational Data and Communications Report, June 1987, p. 12.

  22. Cf. ibid., M. Agi: Communications and Third-World Development, in: Transnational Data and Communications Report, June 1987, p. 10.

  23. Cf. T. H. Chowdary: Telephones in Rural Areas—an Indian Experience, in: Telematics and Informatics, No. 1 (1988), p. 29 f.

  24. Cf. “Philippinen suchen neue Telekom-Struktur”, in: Nachrichtentechnische Zeitschrift NTZ, No. 8 (1989), p. 508.

  25. Cf. Draft: II (f) Increasing Participation of Developing Countries 10, No. 9 (this part is in parentheses).

  26. Cf. Draft: II (f) Increasing Participation of Developing Countries 10, No. 10 (this part is in parentheses).

  27. Cf. ibid. Draft: II (f) Increasing Participation of Developing Countries 10, No. 10 (this part is in parentheses).

  28. cf. Conference Report “Trade-related Issues in Telecom and Data Services”, in: Transnational Data and Communication Report, October 1989, pp. 13–16, in particular p. 16.

  29. Cf. Draft: II (f) Increasing Participation of Developing Countries 10, No. 10 (this part is in parentheses).

  30. Cf. OECD: Trade in Services and Developing Countries, Paris 1989, p. 36 f.

  31. Japanese firms established 12 joint ventures for software development in China, Taiwan, and the Republic of Korea in the 18-month period ending mid-1986. Cf. UNCTAD, op. cit. Services: Issues Raised in the Context of Trade in Services, UNCTAD Secretariat TD/B/1197 (1988), p. 16 and OECD, op. cit., Trade in Services and Developing Countries, Paris 1989, p. 38. Cf. These sources also for the following country-specific information.

  32. Cf. Draft: I Scope/Definition, No. 2, and Draft: II (f) Increasing Participation of Developing Countries 6 (these parts are in parentheses).

  33. Cf. B. Platz: Zwischen Autonomie und Abhängigkeit, Computerpolitik in Indien, in: Wechselwirkung, No. 33 (1987), p. 16.

  34. Cf. OECD 1989, op. cit., Trade in Services and Developing Countries, Paris 1989, p. 89 f.

  35. Cf. M. Turoff, S. R. Hiltz: Computer Mediated Communications and Developing Countries, in: Telematics and Informatics, No. 4 (1988), pp. 357–376, here pp. 372 and 367.

  36. Cf. Draft: II (f) Increasing Participation of Developing Countries, No. 7 (this part is in parentheses).

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Dörrenbächer, C., Fischer, O. Telecommunications in the Uruguay Round. Intereconomics 25, 185–192 (1990). https://doi.org/10.1007/BF02926169

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