. /.  WORLD TRADE  
ORGANIZATION  TN/S/W/50 
1 July 2005 
 
 (05-2868) 
Council for Trade in Services 
Special Session Original:   English 
 
 
 
COMMUNICATION FROM AUSTRALIA, CANADA, THE EUROPEAN COMMUNITIES, 
JAPAN, HONG KONG CHINA, KOREA,  NORWAY,  SINGAPORE, THE SEPARATE 
CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU, AND THE 
UNITED STATES 
 
Liberalization of Telecommunication Services  
  
 The following communication, dated 1 July 2005,  from the delegations of Australia, Canada, 
the European Communities, Japan, Hong Kong China,  Korea, Norway, Singapore, the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Mats u, and the United States is being circulated to 
the Members of the Council for Trade in Services.  
 
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1. We believe telecommunications services are an important element of the GATS negotiations 
because of the valuable roles su ch services play in supporting national economies and international 
trade:  
• D
RIVERS OF ECONOMIC GROWTH : A modern telecommunications infrastructure can be an 
important driver of economic growth. In our experience, open markets for telecoms 
services encourage investment in this sector, leading to economic development and 
stimulating innovation and the availability of  innovative services at competitive rates. 
• CONNECTIVITY AND ICT S: Telecoms services are crucial complements to the physical 
communications infrastructure in every country  that connects businesses and citizens to 
each other and countries and regions to the rest of the world. In this context, the liberalisation of telecoms services promotes the advancement of modern and sophisticated 
telecoms networks, which contributes to newer and more competitive communication 
services and a diffusion of information and co mmunication technologies (ICTs).  ICTs, in 
turn, play an integral role in improving connectivity and quality of life by providing access to services such as online education, e-go vernment, and e-health, to name a few.  
• I
NNOVATION AND ENABLERS OF TRADE :  Telecoms services are key inputs into domestic, 
regional and international trade, making it possible for goods and service providers in virtually every sector of the economy to penetrate markets around the corner or around 
the globe. Telecoms services, for instance, let companies in any sphere reach out to 
customers and connect to suppliers. Telecoms networks and services are also at the forefront of new and innovative ways of doing business. They are the backbone of the Internet and electronic commerce, enabling on line procurement and the delivery of goods 
or services through electronic means. They also facilitate the growing trend towards 
business process outsourcing, helping companies improve productivity by focusing on 
core competencies and strengths.    TN/S/W/50 
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2. In short, we see telecoms networks and servi ces as not only important economic drivers in 
their own right but as key inputs into trade and development goals with the potential to improve 
quality of life for developed and deve loping countries alike. In our view, these benefits are most likely 
to accrue to countries with open and competitive te lecoms markets. For these reasons, we encourage 
all Members to recognize telecommunications as a vita l infrastructural service and actively participate 
in these negotiations with the objective of achie ving full commitments for all telecommunications 
services. We also urge Members to commit to all of  the provisions of the Reference Paper developed 
in the Negotiating Group on Basic Telecommunications.  To promote further liberalization of this 
sector, we encourage elimination of MFN exemptions for telecommunications services. We believe such liberalization will pave the way for continue d innovation, prosperity and growth by making it 
easier for countries to embrace the Information Societ y while leveraging their strengths in relation to 
international trade. 
 
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