FROM "WASHINGTON TIMES" OF 7/09/2000: THE ECONOMIC CONSEQUENCES COMING FROM TRADE WARS.
(begin quote):
"....Trade wars can cripple a nation by escalating prices, destroying
import
and export industries, and restricting consumer choices and
opportunities.
The potential for such economic calamity now looms as members of
Congress and officials from the European Union (EU) spar over
telecommunications trade and investment policy. The dispute stems
from an amendment to the Commerce, Justice, State and Judiciary
(CJSJ) appropriations bill offered by Sen. Ernest Hollings, South
Carolina Democrat, ranking member of the Senate Commerce Committee.
The amendment would prohibit the Federal Communications Commission
(FCC) from expending funds "to grant a license, permit or operating
authority" to any corporation in which a foreign government has more
than a 25 percent direct or indirect ownership interest.
The Hollings amendment was prompted by congressional concern over the
attempt by German communications giant Deutsche Telekom AG to acquire
the American cellular company Voice Stream Wireless in a deal valued
at more than
$50 billion. The amendment would sabotage this deal by prohibiting
FCC officials from reviewing and approving the merger on the grounds
that a global company that is partially owned by a government
shouldn't have the right to invest in an American corporation. (The
German government holds about 58 percent of Deutsche Telekom,
although its ownership stake in the firm is rapidly declining.)
EU officials have responded by threatening to withdraw from the World
Trade Organization (WTO) if the Hollings amendment becomes law. Even
if the EU doesn't take this radical step, other retaliatory efforts
will likely follow if the issue is not settled soon. The EU has
already indicated it might reject the recently proposed marriage of
American communications giants America Online and Time Warner.
......"(end quote)
17/09/2000