RESTRICTED
WORLD TRADE S/GBT/M/8
24February 1997
ORGANIZATION(97-0951)
Group onBasic Telecommunications
REPORT OFTHE MEETING OF14FEBRUARY 1997
1. TheGroup onBasic Telecommunications helditseighth meeting on14February 1997. The
agenda consisted ofthree items: presentation ofneworrevised draftoffers; exchange ofviews on
thestatus ofthenegotiations; andother business.
2. Presentationofneworreviseddraftoffers.Antigua&Barbuda,Bangladesh,BruneiDarussalam,
Guatemala, Jamaica, Papua NewGuinea, Senegal, SriLanka, Trinidad &Tobago andTunisia submitted
newdraft offers. Chile, Colombia, Dominican Republic, India, Israel, Japan, Korea, Pakistan,
Philippines, Thailand, Turkey andVenezuela submitted revised draftoffers. Several other delegations
submitted further revisions withrespect tooffers tabled inthepastweeks. Those included: Australia,
Brazil, Bulgaria, Canada, Czech Republic, European Union, Ghana, Malaysia, Mexico, NewZealand,
Poland, Romania, Singapore, Slovak Republic, South Africa, Switzerland, United States. Among the
changessignalledbyanumberofdelegationssubmittingrevisedofferswere:theadditionofcommitments
inmore sub-sectors; thedeletion ofreferences tofrequency orspectrum availability fromthemarket
access column; higher thresholds onforeign equity participation inanumber ofoffers which listed
suchlimitations; andtheincorporation oftheReference Paper onregulatory principles inmore offers.
Some delegations specified thatbroadcasting services wereexcluded fromtheirdraftoffers. Several
delegations underlined thattheiroffers onbasictelecommunications corresponded toaninternal process
ofliberalization andreform ofthetelecommunication sector.
3. Thedelegation oftheUnited States saidthattheywereencouraged bytheoffers onthetable,
although theywereconcerned about thelimitations onforeign equity participation included insome
offers, which theyhoped could beimproved after15February andbefore theentry intoforce ofthe
agreement. They noted thatthedecision taken lastApril tocontinue thisnegotiation hadpermitted
asubstantial improvement inthebalance ofcommitments among Members sothatthe‘critical mass'
necessaryforthesuccessfulconclusionofthenegotiationsnowappearedachievable.Theyalsoconfirmed
thattheUnited States intended tomaintain itsimproved offer, butannounced thatitwastabling an
Article IIexemption onone-way satellite transmission ofDTH andDBStelevision services andof
digital audio services. Thedelegation ofArgentina saidthattheywerenotnowinaposition toconfirm
theirdraftoffer, pending completion ofanoverall assessment ofthecommitments theyweremaking
andofthebenefits theywerereceiving from some trading partners. They saidtheyweretaking this
decision bearing inmind theprovisions ofparagraph 6oftheCouncil Decision onCommitments in
Basic Telecommunications of30April 1996. Thedelegation oftheEuropean Union regretted the
decision ofArgentina andexpressed thehope thatthedifficulties regarding Argentina 'sdraftoffer
could beovercome. They saidtheywerepleased tohearthattheUnited States wereconfirming their
draftoffer, butwereperplexed about thedecision totableanMFN exemption regarding services not
covered bythisnegotiation andforwhich negotiations wereconcluded andbindings offered in1993.
They noted thatinsectors where market access wasbound openMFN exemptions could notapply.
Thedelegation ofCanada saidthattheywerepleased tohearthattheUnited States believed thatthe
offers onthetableachieved that‘critical mass'necessary toconclude thenegotiation, butexpressed
concern about theArticle IIexemption tabled bytheUnited States, inthelightoftheabsence ofa
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consensusonthedefinitionofthedistinctionbetweenbasictelecommunicationsandbroadcastingservices;
Canada looked forward toreceiving clarification astothemeaning andnature ofthisexemption. The
Chairman informed participants thathehadreceived aletter from Dominica, which announced the
intention tosubmit anewoffer before thedeadline of15February.
4. Exchange ofviews onthestatus ofthenegotiations. Nofurther points wereraised under this
agenda item.
5. Other business. TheChairman introduced adraftoftheReport oftheGroup totheCouncil
forTrade inServices. Some delegations suggested changes anditwasagreed thatthese would be
incorporated inanewdraftversion oftheReport tobediscussed atthenextmeeting. TheChairman
invited delegations which hadpromised neworrevised draftoffers tosubmit themassoonaspossible.
Heasked alldelegations which hadnotyetindicated thattheirdraftoffers could bemade intodraft
schedules ofcommitments tocontact theSecretariat toconfirm that. Hereminded participants that
thenextandfinalmeeting oftheGroup wasscheduled for15February 1997.