[Federal Register Volume 67, Number 79 (Wednesday, April 24, 2002)]
[Notices]
[Pages 20195-20196]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-9959]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. WTO/DS-204]
WTO Dispute Settlement Regarding Telecommunications Trade
Barriers in Mexico
AGENCY: Office of the United States Trade Representative.
ACTION: Notice; request for comments.
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SUMMARY: The Office of the United States Trade Representative
(``USTR'') is providing notice that, on April 17, 2002, the Dispute
Settlement Body (``DSB'') of the World Trade Organization (``WTO'')
established a dispute settlement panel to examine U.S. claims regarding
certain Mexican Government measures affecting basic telecommunications
services and the consistency of such measures with Mexico's commitments
under the General Agreement on Trade in Services (``GATS''). The United
States requested establishment of a panel on February 13, 2002. USTR
invites written comments from the public concerning the issues raised
in this dispute.
DATES: Although the USTR will accept any comments received during the
course of the dispute settlement proceedings, comments should be
submitted on or before May 25, 2002 to be assured of timely
consideration by USTR.
ADDRESSES: Submit comments to Sandy McKinzy, Monitoring and Enforcement
Unit, Room 122, Office of the United States Trade Representative, 600
17th Street, NW, Washington, DC, 20508, Attn: Mexico Telecommunications
Dispute. Telephone: (202) 395-3582.
FOR FURTHER INFORMATION CONTACT: Demetrios J. Marantis, Associate
General Counsel, Office of the United States Trade Representative, 600
17th Street, NW, Washington, DC, (202) 395-7305.
SUPPLEMENTARY INFORMATION: Pursuant to section 127(b) of the Uruguay
Round Agreements Act (URAA) (19 U.S.C. 3537(b)(1)), the USTR is
providing notice that, on April 17, 2002, the WTO DSB established a
dispute settlement panel at the request of the United States to examine
Mexican measures affecting basic telecommunications services. The
United States requested establishment of a WTO dispute settlement panel
on February 13, 2002. The United States previously invited comments
from the public after the United States requested consultations with
Mexico regarding telecommunications trade barriers in August 2000.\1\
USTR is hereby providing additional opportunity for comment on the
issues identified in the February 13, 2002 panel request and described
below.
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\1\ 65 FR 52469 (August 29, 2000).
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Major Issues Raised by the United States
Mexico maintains measures--largely as a result of its
``International Long Distance Rules''--that the United States considers
to be inconsistent with Mexico's commitments under the GATS. For
instance the current ``interconnection'' rate that all Mexican carriers
must charge their foreign counterparts for connecting their calls to
Mexico is 13.5 U.S. cents per minute. This rate exceeds the cost of
providing this service by over 200 percent even though Mexico committed
under the WTO Reference Paper to ensure that its dominant phone company
provides ``interconnection'' at rates that are ``basadas en costos,''
or ``based on cost.''
Moreover, Mexican measures grant Mexico's dominant phone company
the exclusive authority to negotiate this cross-border
``interconnection'' rate. Such measures empower Mexico's dominant phone
company to set monopoly rates even though Mexico has an obligation
under the WTO Reference Paper to maintain measures to prevent this
company from engaging in anti-competitive practices.
Mexico's measures also discriminate against foreign suppliers by
preventing them from sending calls into and out of Mexico over leased
lines. However, Mexico has committed under the GATS to permit the
supply of basic telecommunications services over leased lines on a
national treatment basis and committed under the GATS Annex on
Telecommunications to ensure that foreign basic telecommunications
service suppliers have access to and use of leased lines to provide
scheduled services.
Procedural Background
On August 17, 2000, the United States requested consultations with
the Government of Mexico pursuant to Article 4 of the WTO Understanding
on Rules and Procedures Governing the Settlement of Disputes (DSU) and
Article XXIII of the GATS regarding a wide range of measures affecting
telecommunications services. The United States and Mexico held these
consultations on October 10, 2000. The consultations provided helpful
clarifications but did not resolve the dispute.
On November 10, 2000, the United States requested the establishment
of a panel pursuant to Article 6 of the DSU. The DSB considered this
request at its meeting on December 12, 2000, at which time the
Government of Mexico objected to the establishment of a panel. On
November 10, 2000, the United States also requested additional
consultations with the Government of Mexico pursuant to Article 4 of
the DSU and Article XXIII of the GATS regarding additional measures
affecting telecommunications services. These consultations, held on
January 16, 2001,
[[Page 20196]]
provided additional clarifications but did not resolve the dispute.
Since the United States initially requested consultations, the
Government of Mexico has taken steps to address several of the issues
on which the United States and Mexico consulted. However, Mexico has
not yet taken steps to address U.S. concerns regarding measures
affecting Mexico's international telecommunications market, notably the
International Long Distance Rules.
Public Comment: Requirements for Submissions
Interested persons are invited to submit written comments
concerning the issues raised in the dispute. Comments must be in
English and provided in fifteen copies to Sandy McKinzy at the address
provided above. A person requesting that information contained in a
comment submitted by that person be treated as confidential business
information must certify that such information is business confidential
and would not customarily be released to the public by the submitting
person. Confidential business information must be clearly marked
``BUSINESS CONFIDENTIAL'' in a contrasting color ink at the top of each
page of each copy.
Information or advice contained in a comment submitted, other than
business confidential information, may be determined by USTR to be
confidential in accordance with section 135(g)(2) of the Trade Act of
1974 (19 U.S.C. 2155(g)(2)). If the submitter believes that information
or advice may qualify as such, the submitter--
(1) Must so designate the information or advice;
(2) Must clearly mark the material as ``SUBMITTED IN CONFIDENCE' in
a contrasting color ink at the top of each page of each copy; and
(3) Is encouraged to provide a non-confidential summary of the
information or advice.
Pursuant to section 127(e) of the URAA (19 U.S.C. 3537(e)), USTR
will maintain a file on this dispute settlement proceeding, accessible
to the public, in the USTR Reading Room: USTR Reading Room, which is
located at 1724 ``F'' St., NW., Washington, DC 20508. The public file
will include a listing of any comments received by USTR from the public
with respect to the dispute; if a dispute settlement panel is convened,
the U.S. submissions to that panel, the submissions, or non-
confidential summaries of submissions, to the panel received from other
participants in the dispute, as well as the report of the panel; and,
if applicable, the report of the Appellate Body. An appointment to
review the public file (Docket WTO/DS-204, Mexico Telecom Dispute) may
be made by calling the USTR Reading Room at (202) 395-6186. The USTR
Reading Room is open to the public from 9:30 a.m. to 12 noon and 1 p.m.
to 4 p.m., Monday through Friday.
Bruce Hirsh,
Acting Assistant United States Trade Representative for Monitoring and
Enforcement.
[FR Doc. 02-9959 Filed 4-23-02; 8:45 am]
BILLING CODE 3190-01-P