By Adam Entous
WASHINGTON (Reuters) - The United States threatened on Tuesday to file World Trade Organization (WTO) complaints against Mexico and South Africa for alleged discrimination against U.S. telecommunications companies.
The Clinton administration also warned that it could take Israel to the Geneva-based WTO if authorities refused to remove calling fees, and pressed Canada, Britain, Germany and Peru to pick up the pace of reform.
"We will follow up to ensure that expected actions are taken on a timely basis and that those actions are consistent with WTO commitments," U.S. Trade Representative Charlene Barshefsky said in statement, after concluding an annual review of major U.S. trading partners and their compliance with WTO telecom rules.
In the report, the United States singled out Mexico for attack, accusing authorities of failing to open a telecommunications market dominated by Telefonos de Mexico (Telmex), the former Mexican state phone monopoly.
Mexican long-distance operators affiliated with U.S.-based AT&T and MCI WorldCom have struggled for years to compete with Telmex, and have put pressure on the Clinton administration to take action.
"I view the situation in Mexico as extremely serious," Barshefsky said. "In Mexico, it appears that progress toward a level playing field for telecommunications carriers now is stalled."
She said the United States would decide by July 28 whether to take action against Mexico, its partner in the North American Free Trade Agreement.
The Clinton administration also threatened to file a complaint against South Africa for failing to ensure access for U.S. firms to its telecommunications network.
Barshefsky said it was acting on complaints that Telkom, the major telecommunications company in South Africa, unilaterally began to deny access to some of its private circuits in mid-1999. She gave South Africa until June 15 to reform.
The report also highlighted concerns over U.S. access to telecommunications in Germany, Canada, Britain and Israel.
The United States urged German regulators to closely monitor dominant carrier, Deutsche Telekom, and to lower licensing fees.
It warned that Canadian subsidies of local phone service in remote and high-cost areas may be "anti-competitive", asked Britain to immediately open British Telecom's networks.
Barshefsky praised Israel's commitment to eliminate access fees on calls to and from the United States and Canada. But she cautioned: "We will not hesitate to take appropriate action, including possible initiation of WTO dispute settlement action, if the access charge is continued or replaced."
The United States also applauded Peru for making "great strides" in fostering competition and resolving disputes between the dominant operator, Telefonica del Peru, and new entrants. But Barshefsky said it was critical that the government set rates for all services at levels that are "reasonable and nondiscriminatory.":
