FCC Commissioner Mike O’Rielly said he agrees broadly with calls by President Donald Trump at the World Economic Forum in Davos, Switzerland, last week, for changes in the U.S. relationship with organizations like the World Trade Organization. The same could apply to the ITU and the World Radiocommunication Conference, O’Rielly said. “I defer on trade policy, but @realDonaldTrump & Admin is 100% right that U.S. must demand much, much more out international organizations,” O’Rielly tweeted Tuesday: “My views on the WRC & @ITU are exactly in line with this: WRC/ITU must dramatically improve or U.S. should find new structure.” O’Rielly said he views last year’s WRC as mixed for U.S. interests (see 1912180045).
World Trade Organization members extended a moratorium on customs duties on data transfers. Renewed at every opportunity since 1998, it remains at least until the WTO’s conference in June. Members also agreed Tuesday “to continue work under the existing 1998 work programme on e-commerce in the beginning part of 2020,” the body said. The International Chamber of Commerce said the actions underscore the continued importance of the body, despite no functioning dispute settlement mechanism due to appellate vacancies. "The shutdown of the Appellate Body is, without doubt, a blow -- but we shouldn’t slip into exaggerated claims about the imminent death of the WTO. ... WTO committees will continue the essential daily work of resolving trade frictions, while new rule making -- in areas such as services, investment and e-commerce -- is advancing at a rate not seen for over a decade,” said ICC Secretary General John Denton.
Efforts to secure World Trade Organization agreement on e-commerce that’s “inclusive, high-standard, and commercially meaningful,” has backing of “global industry,” said 27 tech groups Monday. “Digital trade is critical to the prosperity of all economies,” and to the ability of companies of all sizes “to grow, innovate, and create jobs,” they said. ACT|The App Association, BSA|The Software Alliance, CTA, Internet Association, U.S. Chamber of Commerce and others made 13 recommendations for what a WTO agreement should contain, including a prohibition on internet tariffs and “customs formalities on electronic transmissions,” plus mechanisms to “facilitate the flow of data across borders.” The groups want a WTO agreement that counters “digital protectionism while protecting and promoting consumer trust, fosters inclusivity in digital trade, and generates real commercial value for the global economy,” they said.
The International Chamber of Commerce urged the World Trade Organization to permanently ban tariffs on “cross-border data flows,” as a temporary ban soon expires. A 1998 moratorium should be made permanent to continue digital trade growth and prevent “trade barriers and burdensome customs duties,” ICC said Tuesday. Since the moratorium, “consumers have gained unprecedented access to new products and services” and international businesses accessed new markets. Three countries suggested ending the moratorium, including Indonesia, “going so far as to create tariff codes for ‘software and other digital goods transmitted electronically,” the business lobby said.
Telecom and tech issues weren’t discussed in Thursday night’s Democratic presidential debate, but a few candidates targeted China for stealing U.S. intellectual property. China steals “our products, including our intellectual property,” said Sen. Kamala Harris, D-Calif. “They dump substandard products into our economy. They need to be held accountable.” The problem with China isn’t the trade deficit, but that it’s stealing IP and violating World Trade Organization rules, said ex-Vice President Joe Biden. Entrepreneur Andrew Yang said an executive friend visited China recently and “saw pirated U.S. intellectual property on worker workstations to the tune of thousands of dollars per head.” The friend asked how American workers can compete with that, Yang said, citing lost American revenue.
World leaders should commit to pursuing a multilateral approach on tax policy for digital services and avoid unilateral measures (see 1908190043), a tech industry coalition told member countries attending the G7 Leaders’ Summit, which begins Saturday. The Internet Association, Information Technology Industry Council, ACT|The App Association, BSA|The Software Alliance, Computer & Communications Industry Association and various Japanese trade groups signed. They recommended leaders oppose forced disclosure of source code, algorithms, encryption keys or other sensitive data as a “condition of doing business.” They recommend leaders quickly agree on the World Trade Organization joint statement initiative on e-commerce and permanently implement a WTO moratorium on customs duties on electronic transmissions. The group seeks “open format and machine-readable data sets to foster innovation and competitiveness” in artificial intelligence technologies and to “enhance and generate business opportunities for small and medium-sized enterprises.” France's new digital sales tax, retroactive to Jan. 1, has attracted much skepticism from U.S. tech; the country's embassy hasn't commented.
France’s digital service tax (DST) is a radical departure from international norm, discriminates against U.S. companies and undermines efforts to reach global, multilateral consensus on the digital economy, tech companies and trade groups told U.S. officials Monday (see 1908140056). Witnesses from Facebook, Google, Amazon, the Information Technology and Innovation Foundation, the Computer & Communications Industry Association and the Information Technology Industry Council testified before the Office of the U.S. Trade Representative and officials from various federal agencies. Representatives from the departments of Commerce, State, Agriculture, Homeland Security and others questioned tech witnesses as part of the USTR’s Section 301 investigation of France’s DST.
G20 trade ministers convening this month in Osaka, Japan, “should support enabling frameworks for open trade in an increasingly digital global market,” said the Computer & Communications Industry Association, Internet Association and seven other tech groups Wednesday of “recommended outcomes” for the June 28-29 summit. To “facilitate” digital trade, the G20 should recognize the need for all countries to support a permanent World Trade Organization “moratorium against customs duties on electronic transmissions,” said the groups. “Approaches to data governance that fail to include such commitments should be discouraged.” The G20 should also “ensure that any new approaches to content regulation are made pursuant to comprehensive dialogue with meaningful opportunities for input by industry and civil society,” they said. The tech industry “recognizes the importance of building trust online to strengthen consumer confidence in digital trade,” they said. “Industry supports baseline privacy and consumer protection rules.” Prioritize "research and investment” in artificial, automation and “algorithmic data analysis” technologies, they asked. “Frameworks regarding the governance of these technologies should be adaptable to account for the future stages of the technology and should be designed to protect users from demonstrated, rather than speculative harms.”
The FCC’s draft order on FM translator interference would create a 45 dBu contour limit for interference complaints, establish a minimum number of such complaints based on population served, and allow translators to move channels with a minor change application, according to the version released Thursday. The FCC also posted the China Mobile and other items also set for a vote at the May 9 open meeting.
The FCC is poised to send a message on China at the commissioners’ May 9 meeting, rejecting China Mobile’s application to provide telecommunications services in the U.S. A draft order circulated by Chairman Ajit Pai says granting China Mobile a Section 214 authorization wouldn’t be in the public interest due to national security and law enforcement risks that can’t be addressed through a mitigation agreement, a senior FCC official said Wednesday. Unlike some meetings under Pai, there isn't a broader meeting-wide theme. The FCC also will consider a previously promised FM translator interference item, revised video relay service (VRS) rules, a proposal for the 1675-1680 MHz band sought by Ligado and satellite and a toll-free number auction items.