Telecom Property>
ecember 21, 1998
Telecom products shielded from tariffs
By Jeffrey Silva
WASHINGTON—The Clinton administration progressed in getting more
telecommunications and information technology products shielded from
tariffs, but last week acknowledged problems persist in convincing China
to open its market and hinted the United States was ready to consider
retaliation.
‘‘Our companies do not have market access that they need to have, and
there are simply too many barriers,'' said Commerce Secretary William
Daley at a press conference prior to the 12th meeting of the U.S.-China
Joint commission on Commerce and Trade here.
While U.S. wireless equipment manufacturers—like Motorola Inc. and
Lucent Technologies Inc.—have made inroads into China's huge emerging
market, American firms generally have been denied access to China's
telecom service sector.
The United States is approaching a $60 billion trade deficit with China,
something that is becoming a major political issue. Indeed, Undersecretary
of Commerce David Aaron observed, ‘‘It may well be that trade is the
most disturbing factor in the relationship.''
Daley said U.S. trade action against China is not imminent, though the
matter could receive serious attention early next year.
The U.S. trade dispute with China is hurting China's efforts to gain
membership in the World Trade Organization.
Meanwhile, U.S. Trade Representative Charlene Barshefsky said a
breakthrough in negotiations has paved the way for an agreement in early
1999 to eliminate tariffs on an expanded range of telecom and information
technology equipment.
The package of products in ITA II, which builds on the Information
Technology Agreement of 1996, includes rechargeable batteries for mobile
phones and computers and other consumer electronic accessories and
products.
ITA I covers $600 billion in worldwide trade of telecom and information
technology goods.
‘‘Commitments ... in Geneva from participants accounting for more than
85 percent of world trade in information technology signals that we are on
the road to concluding ITA II early next year,'' said Barshefsky.
The Associated Press and Bureau of National Affairs Daily Report for
Executives contributed to this report.
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December 21, 1998
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