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The Scoop On World Trade Barriers
by William New
The United States this week accused its top trading partners of a litany of poor practices when it comes to opening their markets to U.S. competitors.
In its 2003 National Trade Estimates report on trade barriers, the Office of the U.S. Trade Representative (USTR) highlighted intellectual property rights violations in key markets such as China, India, Brazil and Russia. The report covers 56 major trading partners.
In China, the absence of effective rights enforcement "remains a major challenge," USTR said. "If significant improvements are to be achieved on this front, China will have to devote considerable resources and political will to this problem."
Brazil's enforcement of copyright law is ineffective, the report added, leading to U.S. losses from piracy valued at $777 million in 2002. Brazil represents more than half of the Latin American market for recordings and is one of the largest markets for videos. The nation prosecuted many people for piracy in 2002, but those cases resulted in few convictions.
Brazil also continues to impose "very high" technology tariffs of 30 percent, which, when combined with other taxes, doubles the cost of computers, the office said.
Japan continues to have problems in the telecommunications sector, which has low levels of competition, "remains stifled" by the lack of an independent regulator, lacks strong regulation of dominant carriers, and has exorbitant rates to connect calls. Japan is the United States' third-largest trading partner after Canada and Mexico, which USTR also cited for obstructing trade.
South Korea also has longstanding problems in its telecom sector, exacerbated by a new standard intended to become mandatory, according to the report. The standard raises "serious concerns" about Korea sticking to commitments in the World Trade Organization and its willingness to protect intellectual property rights, USTR said. Another concern is whether the Korean government is unfairly subsidizing semiconductor production and exports.
Discrepancies in the telecom sector also are apparent in Mexico, the report said. The country still has in place measures that prevent competition in international telecom services, and the market remains dominated by a single company, with a mandate from the government to set high wholesale prices for calls to Mexico and block alternatives, USTR said.
Although the United States is working to get Russia accepted into the WTO, that nation still has several glaring problems from the U.S. standpoint. For instance, Russia has an inadequate enforcement system for violations of intellectual property rights, a restrictive import-licensing system, and limits on services and investment, USTR said.
Likewise, Ukraine has made progress in fighting its "rampant" piracy of compact discs but still has not enacted an adequate licensing law on optical-disc media, as required under an action plan negotiated with the United States in June 2000, USTR said.
USTR believes that for all pirating countries, "Once a country recognizes the harm that piracy causes to its own economy, a willingness to improve laws and commit the resources necessary to enforce them can follow."
All Eyes On China's Trade Compliance
Several U.S. agencies have significantly increased their monitoring and enforcement responsibilities since China joined the WTO in December 2001, the General Accounting Office (GAO) said in a report released on Tuesday.
USTR is taking the lead in the effort, and the Agriculture, Commerce and State departments also are involved. The report documents the changes to each agency's organization, resources and plans in light of China's accession, and to the interagency process used to fulfill the responsibilities. It also reviewed how the agencies addressed compliance problems that arose during the first year of China's WTO membership.
From 2000 to 2002, the four agencies increased their full-time staff from 28 to 53, GAO said. The agencies also reorganized or established intra-agency teams to better coordinate monitoring and enforcement. And they took steps to address perceived problems in China's implementation of agricultural commitments and in the WTO review of China's trade practices.
China Targets 'Vicious' Internet Users
China is erecting a national boundary on the Internet in order to mark its territory in cyberspace, reports the People's Daily, a quasi-government publication in China. The boundary would consist of government-sponsored efforts to monitor the Web for "vicious" activities considered harmful to China and its people. China Network Information Center statistics show that 59 million Chinese used the Internet by late 2002.
The government reportedly is taking the action because more than 80 percent of all personal computers have suffered viruses or hacker invasions, costing some $1.2 billion. China already has enacted more than 10 national or local laws and regulations requiring information protection. The measures outlaw a range of activities such as gambling, pornography, fraud, revealing state secrets, terrorism and government subversion, and can lead to fines or prison.
China has established a cyber police force that has intensified real-time Internet monitoring, intercepting information considered harmful and capturing illegal server data. Current technology allows police to conduct surveillance, such as observing keyboard clicking, tracing violators, and sounding early alerts.
U.S., Asian Group Urges Trade With Laos
The U.S.-ASEAN Business Council, a 150-member trade group representing interests of the United States and the Association of Southeast Asian Nations, is calling for an extension of normal trade relations to Laos.
In a Wednesday letter to Illinois Republican Philip Crane, chairman of the House Ways and Means Trade Subcommittee, council President Ernest Bower highlighted Laos' rising importance to U.S. policy, economy and security. Bower applauded the Bush administration's stated support for the granting of normal relations to Laos, which he said faces the highest average tariffs. He said Crane's committee is considering action on the matter.
In the Asia Pacific Economic Cooperation, meanwhile, a telecom working group meeting in Kuala Lumpur, Malaysia, last week developed a program aimed at encouraging competing telecom companies to interconnect telephone calls to the benefit of customers. The interconnection training program was developed to help businesses and governments negotiate and formalize interconnection arrangements.
Groups Form Online Development Platform
A coalition of international development groups this week announced the creation of an "online community platform" for groups working in development and human rights worldwide. The builders of the community hope to spur "development through dialogue" by providing a meeting place for teams, committees, networks and communities of all sorts.
Already, more than 5,000 people are participating in more than 250 "Dgroups" in the community. The platform is designed for low-bandwidth Internet users. Each group includes a mailing list supported by an accessible Web site with discussion archives. The sites can be public or private.
Sponsors for the platform include Bellanet International, the British Department for International Development, the Institute for Connectivity in the Americas, the International Institute for Communications and Development, OneWorld.net, the Joint United Nations Program on HIV/AIDS and the U.N. Economic Commission for Africa.
Separately, the New York-based Social Science Research Council's Information Technology and International Cooperation program is seeking scholars and activists to participate in two research networks. The networks will focus on IT uses and applications among transnational non-governmental organizations, as well as on the international policies that affect those applications and on the potential for civil society to shape those policies and decisions. The deadline is May 15.
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