U.S. calling for better access to Canadian telecom market in new NAFTA

The United States is calling for its North American Free Trade Agreement (NAFTA) partners to limit restrictions and make it easier for its companies to compete in their telecommunications markets. As part of the United States’ NAFTA renegotiation objectives, released Monday, the office of the United States trade representative outlined the need for more open access to Canadian industry, including pledges to make conditions of cross-border service exchanges “fair and open.” It follows a consultation to modernize the free trade agreement, in force since 1994. When it comes to telecommunications, the document demands a “competitive supply of telecommunications services by facilitating market entry through transparent regulation and an independent regulator.” Further, it asks that there be “reasonable network access for telecommunications suppliers through interconnection and access to physical facilities and scarce resources.” Canada currently has restrictions on foreign ownership rules for the telecom industry, and the Organization for Economic Co-operation and Development (OECD) recommended in 2016 that those restrictions be loosened to enhance competition. In a 2014 report, the Montreal Economic Institute (MEI) called for the elimination of these barriers. Martin Masse, an expert at the MEI, said in an email the resulting competition of those obligations would lower prices and bring faster access to some services to consumers. Similarly, for digital goods, the U.S. is asking for rules to be established that would ensure that NAFTA countries do not implement measures that restrict cross-border data flows and do not require the “use or installation of local computing facilities.” Commenters have previously expressed concern about rules requiring data be stored locally in the country a business is operating in, with some saying it would be financially unfeasible. The Internet Association, which represents companies such as Amazon.com Inc., Facebook Inc. and Netflix Inc., said in its submission to the consultation that market access restrictions and other barriers “limit the growth of these companies." Negotiations between countries can begin after Aug. 16, which is 90 days after the start of the consultation period as required by U.S. law. Tuesday was the final day for Canadians to submit their written submissions for the domestic consultation.

U.S. calling for better access to Canadian telecom market in new NAFTA

Brief | July 18, 2017

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U.S. calling for better access to Canadian telecom market in new NAFTA

Brief | July 18, 2017

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