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Abstract

To those advocating its use, reciprocity legislation is especially appropriate for the telecommunications industry. Only 5 percent of telecommunications equipment manufactured in the United States is exported for sale in other nations. Trade barriers, loyalty to domestic manufacturers and the importance of telecommunications to national defense systems have combined to restrict access to foreign markets in the telecommunications sector. To persuade other nations to increase market access in telecommunications, United States legislators added a requirement of reciprocity to two proposed bills, S.898 and H.R.5158. This note will examine these two bills, concluding that reciprocity is an inappropriate solution to United States concerns about foreign trade restrictions.

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