AFTER G-7, THE UNRESOLVED TRADE ISSUES

The summit of the world’s richest nations resulted in a new trade accord on manufactured products, but several issues remain to be resolved before the Uruguay Round of negotiations to liberalize world trade can conclude. Among the toughest are issues involving the following industries:

AIR TRAVEL

There is disagreement over whether air transport rights should be included under a multilateral trade agreement.

Europe favors such an arrangement in part because it would give its nations a stronger hand in negotiating with U.S. carriers. Currently, such issues as the right of carriers to fly to specific foreign markets are negotiated on a bilateral basis.

The United States also favors inclusion of such rights in an agreement, partly because U.S. air transport rights are a bargaining chip that can be used to win concessions in other areas.

The airline industry, on the other hand, opposes inclusion of such rights in a multilateral agreement because it would weaken the industry’s negotiating power.

TELECOMMUNICATIONS

At issue is opening foreign markets for sales of U.S.-made telecommunications equipment and allowing U.S. companies to provide telecommunications services.

European nations currently have preferred-supplier arrangements under which domestic equipment makers, typically government-owned, monopolize the market. Similarly, long-distance and other telecommunications services are controlled by monopolies.

BANKING AND FINANCIAL SERVICES

At issue is the opening of foreign markets for banking, insurance, securities and other financial industries to outsiders. Developing nations fear being overwhelmed by the financial services offered by rich nations.

The U.S. banking industry argues that access to foreign markets must be comparable to that granted foreign institutions to operate on U.S. soil. U.S. financial services companies are practically shut out of some foreign markets.

ENTERTAINMENT

The major issues are improving access to foreign markets, especially to European television, and strengthening copyright protections for U.S.-made film and video, which now face rampant piracy in some foreign markets.

Europe wants to exempt audio-visual entertainment from coverage under a multilateral trade agreement. The entertainment industry wants specific protections included. Exports of U.S. film contribute $4 billion in surplus trade dollars.