U.S. leads push at WTO on IT, telecoms, finance
By Riyadi
SINGAPORE (JP): The United States yesterday led a push for a World Trade Organization (WTO) agreement on information technology and for speedy negotiations on basic telecommunications and financial services.
Acting U.S. Trade Representative Charlene Barshefsky told the inaugural WTO ministerial conference that agreements on the three sectors would pave the way to build infrastructure for a more interconnected global economy next century.
She said an Information Technology Agreement (ITA) would be the first concrete demonstration of the WTO's ability to move forward in concert with the changing world.
"That's why we must reach an agreement this week," Barshefsky said at the WTO plenary session.
The U.S.-initiated ITA has wide support from developed and developing countries, including Indonesia.
Indonesian Minister of Industry and Trade Tunky Ariwibowo told the afternoon plenary session that Indonesia supported ITA provided it was given enough time to liberalize information- technology trade.
"We stand ready for an ITA, provided that some flexibility in its implementation will be accorded to developing countries," Tunky said.
Tunky acknowledged that efficient services and information technology sectors were critical for Indonesia's economic development as it entered the information age of the 21st century.
Barshefsky said freeing the trade of information technology products would lower costs for consumers, make business more competitive and benefit entire economies by giving them access to more information.
Barshefsky called on other WTO members to speed up negotiations on unfinished business, especially on basic telecommunications and financial services.
Negotiations on these two sectors collapsed earlier this year because the United States was dissatisfied with the liberalization commitments of its trading partners, especially Asian emerging economies.
"Investors increasingly seek predictability in telecommunications as part of a well-functioning international trade and investment regime," Barshefsky said.
Vice President of the European Commission Leon Brittan said all member countries should try harder to complete the ITA and telecommunications negotiations.
"If we do not make substantial progress on both issues this week, with new offers tabled, then our meeting will not be the big success we all want," Brittan said.
Talks in Geneva on liberalizing world telecommunications under the auspices of the WTO were extended until February 15, 1997 after participants failed to forge an agreement by their April 30 deadline.
But the planned implementation date of January 1, 1998 will stay the same.
Fifty-three governments are negotiating the agreement.
Barshefsky said the United States and European countries had improved their offers in basic telecommunications negotiations. She urged other countries to match them.
The United States accounts for nearly 50 percent of all telecommunications revenue worldwide.
"We cannot, and will not, settle for a situation where we are unable to operate in the other half of the world's markets. We are ready to lead by making the first best offer, but we cannot succeed unless others come forward on a mutual basis," she said.
She also said the United States was committed to achieving a comprehensive agreement on financial services by the end of next year.