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Proceedings of the Workshop - United Nations Office for Outer ...

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POSSIBLE INTERNATIONAL REGULATORY FRAMEWORKS, INCLUDING LEGALCONFLICT RESOLUTION IN EXPANDING SPACE COMMERCIALIZATION189in<strong>for</strong>mation, <strong>for</strong> example, <strong>the</strong> simple relay o f voice ordata from sender to receiver. The commitments made in1997 cover not only basic telecommunications servicesprovided over a network, but also services providedthrough resale over private leased circuits. Marketaccess includes <strong>the</strong> trans-border supply <strong>of</strong>telecommunications as well as services <strong>of</strong>fered by <strong>the</strong>establishment o f <strong>for</strong>eign companies, or commercialpresence, including <strong>the</strong> opportunity to own and operateind ep en d en t telecom m unications netw orkinfrastructures. Thus, <strong>the</strong> agreement, inter alia, coversvoice telephony, data transmission, telex, telegraph,facsimile, private leased circuit services, such as <strong>the</strong>sale or lease <strong>of</strong> transmission capacity, fixed and mobilesatellite systems and services, cellulartelephony, mobiledata services, paging, and personal communicationssystems.At <strong>the</strong> heart <strong>of</strong> <strong>the</strong> agreement is <strong>the</strong> consequencethat <strong>the</strong> liberalization must be extended to all WTOmember states on a non-discriminatory basis accordingto <strong>the</strong> MFN principle. However, in accordance with <strong>the</strong>a<strong>for</strong>ementioned legal framework, at <strong>the</strong> end o f <strong>the</strong>negotiations, 9 WTO member states filed lists <strong>of</strong>exceptions services to <strong>the</strong> most-favoured-nationprinciple concerning measures affecting trade in basictelecommunications.With regard to satellite services, by February 1997SO states had made full <strong>of</strong>fers guaranteeing access <strong>for</strong>all domestic and international satellite services. Inaddition 6 countries guaranteed market access <strong>for</strong>selected satellite services and facilities (Brazil,Columbia, Ivory Coast, Ghana, Hong Kong and SouthAfrica). O f <strong>the</strong> 69 parties to <strong>the</strong> agreement, only 13developing countries made no market accesscommitments <strong>for</strong> satellite services.11EvaluationIn economic terms <strong>the</strong> agreement is a landmark in <strong>the</strong>liberalization <strong>of</strong> international trade. In 1995 <strong>the</strong> revenue11 See G.C. Hufbauer/E. Wada (eds) , Unfinished Business:Telecommunications after <strong>the</strong> Uruguay Round (1997), p. 21 etseq.from global telecom services was about US$601.9billion (2.1 per cent o f global GDP), with agrowth rate<strong>of</strong>7 per cent. While <strong>the</strong> 130 member states <strong>of</strong><strong>the</strong> WTOcover about 95 per cent (US$570 billion) <strong>of</strong> <strong>the</strong> globaltelecom revenue in 1995, <strong>the</strong> about 70 WTO memberstates that have entered into commitments account <strong>for</strong>91 per cent <strong>of</strong> global telecom revenues and 82 per cent<strong>of</strong> <strong>the</strong> world’s telephone main lines. About 77 per cento f <strong>the</strong> global market in 1995 was shared by <strong>the</strong>European Union, <strong>the</strong> <strong>United</strong> States, Japan, Canada andAustralia. Prior to <strong>the</strong> 1997 agreement, only about 20per cent <strong>of</strong> <strong>the</strong> global telecom services market had beenopen to competition.Moreover, on 26 March 1997, 40 WTO memberstates, representing 92.5 per cent o f world trade in thissector, agreed to implement <strong>the</strong> WTO MinisterialDeclaration on Trade in In<strong>for</strong>mation TechnologyProducts (ITA).12 Beginning on 1 July 1997, customsduties on computer and telecommunications productswere agreed to be reduced and eliminated altoge<strong>the</strong>r by<strong>the</strong> year 2000, applying to all WTO member states. TheITA includes computers, semiconductors, telecomshardware and computer s<strong>of</strong>tware which are <strong>the</strong> conduit<strong>for</strong> <strong>the</strong> delivery <strong>of</strong> in<strong>for</strong>mation, and its purpose is tomake such products more af<strong>for</strong>dable, also in <strong>the</strong> poorercountries to improve living standards, health andeducation. The ITA covers almost US$ 600 billion inworld trade. The ITA accord and <strong>the</strong> telecomsagreement reached one month earlier toge<strong>the</strong>r coverinternational business worth more than US$ one trillion.This is about <strong>the</strong> equivalent o f world trade inagriculture ($444 billion in 1995), automobiles ($456billion) and textiles ($153 billion) collectively. In view<strong>of</strong> <strong>the</strong> fact that trade in in<strong>for</strong>mation technology isgrowing faster than world exports in <strong>the</strong> past ten years,<strong>the</strong>se two sectors taken toge<strong>the</strong>r are <strong>the</strong> backbone <strong>of</strong> <strong>the</strong>global economy and, in quantative terms, <strong>the</strong>irliberalization amounts to a new trade round.Developing countries, <strong>of</strong> course, have much lowershares o f global telecommunications activities thanindustrialized countries. However, in 1995 certaincountries, such as Korea, Brazil, Mexico andArgentina, ranked among <strong>the</strong> top ten in shares <strong>of</strong> global12 See WTO Focus, Newsletter March 1997 No. 17, p. 1 et seq.

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