The deal would phase out monopolies and restrictions on competition that have allowed telephone companies to overcharge for calls and given them little incentive to improve services. The United States walked out of the talks last April, claiming that other countries had not done enough to open their markets. The talks were only saved by a decision to extend the deadline 10 months. Some U.S. Congress members have made it clear they are unhappy at Canada's 46.7 percent cap on ownership from abroad, while the United States offers 100 percent. Mexican and South Korean offers also restrict non-domestic ownership to under 50 percent and Japan has restricted international participation in its main two telephone companies to 20 percent.
Telecommunications is one of the most dynamic sectors of the world economy.
Trade barriers have been blamed for preventing technological gains being passed on to the consumer. Calls in India cost about 29 times more than in the freer markets of the United States. The developing world would also gain from improved telecommunications technology. The Associated Press contributed to this report. The Electronic Policy Network Telecom Information Resources External sites are not endorsed by CNN Interactive.