[Federal Register Volume 64, Number 107 (Friday, June 4, 1999)]
[Notices]
[Pages 30094-30095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-14132]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Request for Comments Concerning Compliance by Germany With
Telecommunications Trade Agreements
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of request for public comment.
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SUMMARY: Pursuant to section 1377 of the Omnibus Trade and
Competitiveness Act of 1988 (19 U.S.C. 3107), the Office of the United
States Trade Representative (USTR) is reviewing, and requests comments
on, compliance by Germany with its commitments under the World Trade
Organization (WTO) Basic Telecommunications Agreement.
DATES: Comments are due by noon on Wednesday, June 16, 1999.
ADDRESSES: Comments must be submitted to Gloria Blue, Executive
Secretary, Trade Policy Staff Committee, ATTN: Section 1377 Comments,
Office of the United States Trade Representative, 600 17th Street, NW,
Washington, DC 20508.
FOR FURTHER INFORMATION CONTACT: William Corbett, Office of Industry,
(202) 395-9586; or Demetrios Marantis, Office of the General Counsel,
(202) 395-3581.
SUPPLEMENTARY INFORMATION: Section 1377 of the Omnibus Trade and
Competitiveness Act of 1988 requires the USTR to review annually, by
March 31, the operation and effectiveness of all U.S. trade agreements
regarding telecommunications products and services of the United States
that are in
[[Page 30095]]
force with respect to the United States. The purpose of the review is
to determine whether any act, policy, or practice of a country that has
entered into a telecommunications trade agreement is not in compliance
with the terms of such agreement, or otherwise denies to U.S. firms,
within the context of the terms of such agreements, mutually
advantageous market opportunities.
Beginning in the second quarter of 1998 and after concluding a
number of satisfactory interconnection agreements with early new
entrants to the German telecommunications market, Deutsche Telekom (DT)
appears to have slowed the pace of interconnection negotiations and
imposed tougher rates, terms and conditions for subsequent prospective
entrants. All new entrants have no option but to interconnect with the
DT network to access the German market, and Germany committed to assure
non-discriminatory and cost-oriented interconnection rates, terms and
conditions by adopting the WTO Reference Paper as part of its
obligations under the WTO Basic Telecommunications Agreement.
The 1999 review under section 1377, completed on March 30, 1999,
established that the delay in assuring non-discriminatory and cost-
oriented interconnection rates, terms, and conditions raises serious
doubts about Germany's compliance with its WTO commitments. The USTR
noted that regulatory proceedings in Germany during April-May 1999 were
expected to set important precedents in determining interconnection
rates, terms, and conditions for all competitors to Deutsche Telekom.
These proceedings related to (1) a complaint by a U.S. carrier,
Econophone and, (2) a proposal for new tariff surcharges by Deutsche
Telekom. The USTR announced it would monitor the outcome of these
proceedings, which have now concluded to determine whether Germany is
acting in accordance with its WTO obligations, and to determine whether
to pursue WTO dispute settlement action thereafter if the outcome of
the proceedings was not consistent with those obligations.
Therefore, the USTR seeks comments on Germany's compliance with its
specific commitments under the WTO Basic Telecommunications Agreement
or with other WTO obligations, e.g., the WTO General Agreement on Trade
in Services (GATS), including the Annex on Telecommunications, that
affect market opportunities for U.S. telecommunications products and
services.
WTO Basic Telecommunications Agreement
The GATS contains general obligations that apply to all Members and
services whether or not listed in WTO Members' schedules and specific
obligations that apply only to services scheduled by a Member. The
Fourth Protocol to the GATS is the legal instrument embodying seventy
WTO members' basic telecommunications services commitments under the
GATS. The Fourth Protocol is generally referred to as the WTO Basic
Telecommunications Agreement. The agreement entered into force on
February 6, 1998.
The WTO Basic Telecommunications Agreement encompasses commitments
in three areas: market access, national treatment, and pro-competitive
regulatory principles (contained in the WTO Reference Paper). Germany
committed to provide open market access for local, long-distance and
international service and service suppliers of any other Member under
the terms, limitations and conditions agreed and specified in its WTO
services schedule. With respect to national treatment, Germany
committed to ensure treatment no less favorable to U.S. services or
service suppliers than the treatment provided to services or service
suppliers of Germany. Finally, the pro-competitive regulatory
principles, set forth in the WTO Reference Paper and incorporated in
Germany's (and other members') schedule, committed it to establish an
independent regulatory body, ensure interconnection at non-
discriminatory and cost-oriented rates, maintain measures to prevent
anti-competitive practices such as cross-subsidization, and mandate
transparency of government regulations and licensing.
The USTR seeks comment on whether Germany has made the necessary
legislative or regulatory changes to implement its commitments, or
permits acts, policies, or practices in its markets that do not appear
to be in compliance with these commitments. In addition, the USTR seeks
comments on whether Germany permits acts, policies, or practices that
do not appear to be in compliance with other WTO obligations, e.g., the
GATS, that affect market opportunities for telecommunications products
and services of the United States.
Public Comment: Requirements for Submissions
The USTR requests comments on the operation and effectiveness of
the WTO Basic Telecommunications Agreement with respect to Germany. All
comments must be in English, identify on the first page of the comments
the telecommunications trade agreement(s) discussed therein, be
addressed to Gloria Blue, Executive Secretary, TPSC, ATTN: Section 1377
Comments, Trade Policy Staff Committee, Office of the U.S. Trade
Representative, and be submitted in 15 copies by noon on Wednesday,
June 16, 1999.
All comments will be placed in the USTR Reading Room for inspection
shortly after the filing deadline, except business confidential
information exempt from public inspection in accordance with 15 CFR
2003.6. Confidential information submitted in accordance with 15 CFR
2003.6, must be clearly marked ``BUSINESS CONFIDENTIAL'' in a
contrasting color ink at the top of each page on each of the 15 copies,
and must be accompanied by 15 copies of a nonconfidential summary of
the confidential information. The nonconfidential summary will be
placed in the USTR Public Reading Room.
An appointment to review the comments may be made by calling Brenda
Webb at (202) 395-6186. The USTR Reading Room is open to the public
from 9:30 a.m. to 12 noon, and from 1 p.m. to 4 p.m., Monday through
Friday, and is located in Room 101.
Frederick L. Montgomery,
Chairman, Trade Policy Staff Committee.
[FR Doc. 99-14132 Filed 6-3-99; 8:45 am]
BILLING CODE 3190-01-M
