WTO Telecommunications Agreement

New Zealand consumers and businesses stand to benefit from a World Trade Organisation (WTO) agreement on telecommunications which was agreed last year and comes into force today, says Trade Minister Lockwood Smith.

The WTO Protocol on trade in Basic Telecommunications was great news for New Zealand as it covers trade in nearly 95% of the world telecommunications market, currently valued at US$600 billion. The agreement covers telecommunications networks and services, including sending of voice and data messages, and has been accepted by 57 countries, including New Zealand.

"For New Zealand, the agreement provides the international legal basis for a more competitive and efficient international telecommunications industry, to the benefit of consumers," Dr Smith said.

"It also locks in market opening opportunities in the countries of greatest immediate export interest to the New Zealand telecommunications industry - the UK, the US and Australia - and in an increasing number of other growing markets.

"This is important because telecommunications is not only a major industry in its own right, but also facilitates the efficient exchange of most other goods and services."

Dr Smith said New Zealand had liberalised its own telecommunications industry some years ago as part of its domestic reform policies and prior to the conclusion of this agreement.

"We recognised early that the benefits of modern, competitive and efficient telecommunications services flow to all corners of the economy." New Zealand is amongst the twenty biggest revenue earner from telecommunications in the world, when both the domestic market and exports are taken into account.