Wednesday November 26 12:24 PM EST
EU dangles WTO threat on U.S. telecom rules
BRUSSELS (Reuters) - The European Commission said Wednesday it could take action in the World Trade Organization if
the United States does not change a plan for implementing a global telecommunications trade pact.
Spokesman Nigel Gardner said the European Union executive was especially unhappy about provisions, agreed on Tuesday
by the U.S. Federal Communications Commission, that allow Washington to restrict foreign operators to protect the public
interest.
"We reserve the right to take WTO action if the U.S. does not meet its obligations (under world trade rules)," he told
Reuters.
The FCC adopted the rules, which ease the access of foreign operators to the U.S. market, to carry out a landmark WTO
pact that takes effect on January 1, 1998.
The accord, agreed last February by 69 nations and designed to ease trade barriers in much of the $600 billion global market
for phone, cellular, satellite and other communications services.
The FCC will replace its existing entry terms for foreign operators with an easier and more streamlined process and will no
longer require them to prove that their home market is open to U.S. communications companies.
However, the FCC, the U.S. Trade Representative's office, the State Department or the Defense Department could block
entry if they feared a company could hurt competition on the U.S. market or raise trade, national security or other concerns.
European carriers have argued that such a "public interest test" is vague and leaves U.S. authorities with too much room to
block deals.
"We are concerned with what the FCC proposed, especially in the context of the national interest test, which is open-ended,"
Gardner said.
He said the Commission hoped Washington would change the plan before the January 1 deadline. |
