WORLD TRADE
ORGANIZATIONS/L/94
11 June 2001
(01-2915)
Council for Trade in Services Original:  English
CERTIFICATION
Schedule of Specific Commitments in Basic Telecommunications of:
Brazil
Notification of Objection from the United States
The following communication has been received from the delegation of the United States
concerning the certification of Brazil's Schedule of Specific Commitments in Basic
Telecommunications (S/C/W/191).
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This notification is in response to document S/C/W/191, dated 26 April 2001, which contain a
draft schedule of commitments on basic telecommunications, submitted by the Government of Brazil
for certification pursuant to the Procedures for the Certification of Rectifications or Improvements to
Schedules of Specific Commitments (S/L/84).  According to document S/C/W/191, the Government
of Brazil intends for this draft schedule to constitute an integral part of the Schedule of Specific
Commitments of Brazil (GATS/SC/13) upon ratification.
The United States believes that further information and clarification is necessary to assess the
basis for and effect of the draft schedule.  In particular, the United States seeks clarification regarding
Brazil's proposed horizontal limitation that would permit the Executive Branch to use its "legal
prerogative" to establish limits on foreign participation in the capital composition of
telecommunications service providers.  In the view of the United States, this limitation potentially
allows for arbitrary action of the part of the Executive branch, and accordingly, would create needlessuncertainty in the market.  The United States also believes that further clarification is necessary on
other aspects of Brazil's draft schedule.
Bearing in mind the need for further information and clarification, the United States objects to
the certification of Brazil's draft schedule of commitments in basic telecommunications pursuant tothe Procedures for the Certification of Rectifications or Improvements to Schedules of Specific
Commitments (S/L/84).  As further contemplated by these procedures, the United States looks
forward to entering into consultations expeditiously with Brazil in order to reach a satisfactory
resolution to this matter.
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