The Telecommunications Industry Association has praised the U.S. trade representative for closing out talks on the Central America Free Trade Agreement negotiations today.
After months of intense negotiations over issues such as telecommunications services, market access for consumer and industrial goods, intellectual property rights protection, agriculture and textiles, the TIA members say the association is pleased to see a strong and balanced agreement among the five parties that will provide market access opportunities, both in goods and services, for TIA member companies. The parties are El Salvador, Guatemala, Honduras, Nicaragua and the United States.
During the last six months, the TIA was closely involved in advising the USTR office on industry priorities during the talks.
"TIA's stewardship of a coalition of telecom equipment manufacturers and service providers enabled the high-tech industry to speak with one voice on matters relating to telecommunications services," says Matthew Flanigan, president of the TIA. "The work of this group, combined with the excellent leadership at USTR, led to an outcome of which the entire telecommunications industry can be proud."
The telecommunications chapter agreed to by El Salvador, Guatemala, Honduras, Nicaragua and the United States closely resembles that in the U.S.-Chile Free Trade Agreement. Among the more favorable telecommunications provisions agreed to by the five parties are those guaranteeing flexibility in the choice of technologies, access to and use of public telecommunications networks and services and interconnection obligations of major suppliers. The provisions also include binding obligations regarding independent regulatory authorities, allocation and use of scarce resources (i.e., spectrum), enforcement of domestic measures, dispute settlement and transparency.
The TIA also praises the countries of Guatemala, Honduras and Nicaragua for agreeing to join the World Trade Organization Information Technology Agreement upon implementation of the CAFTA. This guarantees that nearly all information technology products will be permitted duty-free entry. Information technology products will contribute to the more than 80% of exports from all five countries that will become duty-free upon the agreement's entry-into-force.
Flanigan says the association expresses disappointment that Costa Rica could not conclude the CAFTA negotiations with the other parties.
"We worked hard to ensure their participation in the telecom chapter of the agreement, and it is regrettable that Costa Rica has removed itself at this time," says Flanigan. "However, we hope the country's withdrawal from talks this week will allow it additional time to work out internal differences and enable Costa Rica to make full market access commitments on telecommunications and other key sectors when, and if, it decides to come back to the table."
The TIA is based in Arlington, VA. For more information visit www.tiaonline.org.
