UNITED STATES
Since March 2020, last amended in September 2022
Pillar Public procurement of ICT goods and online services |
Sub-pillar Exclusion from public procurement
List of Equipment and Services Covered By Section 2 of The Secure Networks Act
Section 1.50002 of the Commission's rules mandates that the Public Safety and Homeland Security Bureau publish a "Covered List" of communications equipment and services deemed to pose an unacceptable risk to U.S. national security or the safety of U.S. persons. This designation is based on specific sources of risk assessment. Telecommunications providers in the U.S. are required to remove any equipment or services from companies on this list from their networks and are prohibited from using Federal Communications Commission (FCC) funds to acquire such equipment or services. The Covered List includes several foreign companies, such as Huawei, ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology, Dahua Technology, AO Kaspersky Lab, China Mobile International USA, China Telecom (Americas) Corp, Pacific Networks Corp, and China Unicom (Americas) Operations Limited.
Coverage Huawei, ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology, Dahua Technology, AO Kaspersky Lab, China Mobile International USA, China Telecom (Americas) Corp, Pacific Networks Corp, China Unicom (Americas) Operations Limited
Sources
- https://web.archive.org/web/20240330165029/https://www.fcc.gov/supplychain/coveredlist
- https://web.archive.org/web/20241206152103/https://www.lexology.com/library/detail.aspx?g=1726ece7-98c7-4a44-a12a-ef6d21b8dfd3
- https://web.archive.org/web/20241206152149/https://investmentpolicy.unctad.org/investment-policy-monitor/measures/3963/united-states-of-america-expands-list-of-equipment-and-services-from-companies-po...
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UNITED STATES
Since March 2013
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Provision in the “Consolidated and Further Continuing Appropriations Act, 2013” (H.R.933)
A provision in the Consolidated and Further Continuing Appropriations Act (H.R.933), which President Obama signed into law in March 2013, bars the Departments of Commerce and Justice, the National Aeronautics and Space Administration (NASA), and the National Science Foundation from procuring any information technology (IT) systems that are produced, manufactured, or assembled by any company owned, directed, or subsidised by the People’s Republic of China unless the Federal Bureau of Investigation (FBI) has completed an assessment of the security risk of cyber espionage or sabotage associated with the system to the United States.
Coverage Information technology (IT) systems
UNITED STATES
Since 1979, last amended in January 2022
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Trade Agreements Act
Under the Trade Agreements Act (TAA), if the acquisition value of the tender is above a certain purchasing threshold (usually USD 200,000, although sometimes lower), US suppliers must turn to either domestic producers or countries with which the US maintains a free trade agreement (FTA). The TAA opens procurement markets only for products from the US or these so-called “designated countries” and prohibits procurement of end products from non-designated countries (e.g. China, India, Indonesia, Thailand). The purchasing threshold that needs to be reached to involve the TAA depends on the FTA in question and is updated every two years.
Coverage Horizontal
UNITED STATES
N/A
Pillar Public procurement of ICT goods and online services |
Sub-pillar Signatory of the World Trade Organization (WTO) Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of coverage of CPC 754, CPC 752, and CPC 84 in the WTO Government Procurement Agreement (GPA)
Although the US is a signatory to the WTO Government Procurement Agreement (GPA), its coverage schedules do not fully cover the three most relevant service sectors (CPC 752, 754, 84). While value-added telecommunications services are covered, the agreement does not cover procurement of public utility services, including telecommunications and automatic data processing (ADP)-related telecommunications services.
Coverage Enhanced (i.e., value-added) telecommunications services
UNITED STATES
Since June 1934, last amended in 1996
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Communications Act of 1934
Section 310(a) of the Communications Act of 1934 states that a foreign government or representative may not directly hold a spectrum license, while Section 310(b) states that foreign individuals and business entities may not directly hold any common carrier and broadcast licenses. Under 310(b)(3), a foreign entity is limited to a 20% ownership interest in any common carrier and broadcast licenses. Pursuant to Section 310(b)(4), a foreign entity is limited to a 25% ownership interest in a US corporation that controls any common carrier, and broadcast license. The Federal Communications Commission has the discretion to allow foreign ownership in excess of 25% unless such ownership is inconsistent with the public interest.
Coverage Spectrum, common carriers, and broadcast licenses
Sources
- https://web.archive.org/web/20231203134635/https://www.fcc.gov/general/foreign-ownership-rules-and-policies-common-carrier-aeronautical-en-route-and-aeronautical
- https://web.archive.org/web/20210321131806/https://www.federalregister.gov/documents/2016/12/01/2016-28198/review-of-foreign-ownership-policies-for-broadcast-common-carrier-and-aeronautical-radio-lice...
UNITED STATES
Since April 2020
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Screening of investment and acquisitions
Executive Order 13913 Establishing the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector
In April 2020, Executive Order 13913 established the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector to assist the Federal Communications Commission (FCC) in reviewing foreign involvement in U.S. telecommunications (Art. 3). According to Art. 4 of the Order, the Committee's primary role is to assess existing licenses and applications to determine if granting or transferring a license poses risks to U.S. national security or law enforcement interests and to communicate its findings and recommendations to the FCC. It advises the FCC on actions such as dismissing or denying applications, setting conditions, or revoking licenses. The Committee is composed of the Secretaries of Defense, Homeland Security, and the Attorney General, with other Cabinet members and agency heads serving as advisors.
Coverage Telecommunication sector
UNITED STATES
Since 2007, last amended in February 2021
Since 2018, last amended in January 2022
Since September 2022
Since 2018, last amended in January 2022
Since September 2022
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Screening of investment and acquisitions
Foreign Investment and National Security Act of 2007 (Public Law 110-49)
Foreign Investment Risk Review Modernization Act of 2018
Executive Order on Ensuring Robust Consideration of Evolving National Security Risks by the Committee on Foreign Investment in the United States
Foreign Investment Risk Review Modernization Act of 2018
Executive Order on Ensuring Robust Consideration of Evolving National Security Risks by the Committee on Foreign Investment in the United States
Foreign investments in the United States are generally permitted, subject to approval, unless they are deemed contrary to national interest. The Committee on Foreign Investment in the United States (CFIUS) is responsible for reviewing foreign investments that could pose national security concerns. This review applies to controlling investments in U.S. businesses but does not extend to greenfield investments. If CFIUS identifies a national security risk in a covered transaction, it can recommend that the President suspend, prohibit, or impose conditions on the transaction. This has occurred in at least five cases, including the 2007 attempted acquisition of an ownership stake in 3Com by Huawei and Bain Capital, which was ultimately abandoned after CFIUS signaled its intent to recommend presidential intervention.
Beyond national security concerns, additional restrictions may apply to cross-border mergers and acquisitions for competition-related reasons. The Foreign Investment Risk Review Modernization Act (FIRRMA) was enacted to strengthen and modernise CFIUS, broadening its mandate and expanding the executive powers of the President to scrutinise potential foreign investments. Amendments to FIRRMA have since clarified its scope and provided exemptions for certain countries, particularly those with which the U.S. maintains free trade agreements, such as Australia and Canada.
In September 2022, the United States issued the Executive Order on Ensuring Robust Consideration of Evolving National Security Risks by CFIUS. This order formalised guidance for CFIUS, outlining key factors to consider during national security reviews. Specifically, CFIUS is directed to assess: (i) the impact of transactions on the resilience of critical U.S. supply chains; (ii) effects on U.S. technological leadership in key industries; (iii) investment trends affecting national security; (iv) cybersecurity risks; and (v) risks to sensitive data of U.S. persons.
Beyond national security concerns, additional restrictions may apply to cross-border mergers and acquisitions for competition-related reasons. The Foreign Investment Risk Review Modernization Act (FIRRMA) was enacted to strengthen and modernise CFIUS, broadening its mandate and expanding the executive powers of the President to scrutinise potential foreign investments. Amendments to FIRRMA have since clarified its scope and provided exemptions for certain countries, particularly those with which the U.S. maintains free trade agreements, such as Australia and Canada.
In September 2022, the United States issued the Executive Order on Ensuring Robust Consideration of Evolving National Security Risks by CFIUS. This order formalised guidance for CFIUS, outlining key factors to consider during national security reviews. Specifically, CFIUS is directed to assess: (i) the impact of transactions on the resilience of critical U.S. supply chains; (ii) effects on U.S. technological leadership in key industries; (iii) investment trends affecting national security; (iv) cybersecurity risks; and (v) risks to sensitive data of U.S. persons.
Coverage Horizontal, including SoftBank, Huawei Technologies, Bain Capital,
Broadcom
Broadcom
Sources
- https://web.archive.org/web/20160704224531/http://www.gpo.gov/fdsys/pkg/PLAW-110publ49/pdf/PLAW-110publ49.pdf
- https://web.archive.org/web/20240704005439/https://www.govinfo.gov/content/pkg/CFR-2012-title31-vol3/pdf/CFR-2012-title31-vol3-part800.pdf
- https://web.archive.org/web/20231120160741/https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius/cfius-laws-and-guidance
- https://web.archive.org/web/20231124061404/https://www.whitehouse.gov/briefing-room/presidential-actions/2022/09/15/executive-order-on-ensuring-robust-consideration-of-evolving-national-security-risks...
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UNITED STATES
Since January 1978
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty (PCT)
The United States is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal
UNITED STATES
Since March 1997
Since December 2015
Since December 2015
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Participation in the World Trade Organization (WTO) Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Information Technology Agreement (ITA)
ITA Expansion Agreement (ITA II)
ITA Expansion Agreement (ITA II)
The U.S. is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II).
Coverage ICT goods
Sources
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
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UNITED STATES
Since October 1976
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Copyright law with clear exceptions
Copyright Act
Section 107 of the Copyright Act provides that fair use for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship and research is not an infringement of copyright.
Coverage Horizontal
UNITED STATES
Since October 2008, last extended in June 2020, until 2025
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In October 2008, the United States authorities imposed a definitive anti-dumping duty on the import of electrolytic manganese dioxide (HS Code: 282010), which is the critical component of the cathode material in modern alkaline, lithium and sodium batteries, including electrochemical capacitors and hydrogen production. The duty applies to imports from Chinese firms, most notably Guizhou Redstar Developing Import and Export Company, Ltd. This measure was extended in January 2015 and subsequently in July 2020. The rate of duty on imports from China is 149.92%.
Coverage Product: Electrolytic manganese dioxide (HS Code: 282010)
Country: China
Country: China
Sources
- https://web.archive.org/web/20241206151839/https://www.globaltradealert.org/intervention/106002/anti-dumping/united-states-of-america-termination-of-definitive-anti-dumping-on-imports-of-electrolytic-...
- https://web.archive.org/web/20231006213015/https://www.usitc.gov/publications/701_731/pub4506.pdf
- https://web.archive.org/web/20210516130643/https://www.federalregister.gov/documents/2020/07/08/2020-14681/electrolytic-manganese-dioxide-from-the-peoples-republic-of-china-continuation-of-antidumping...
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UNITED STATES
Reported in 2023
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Enforcement of copyright online
Lack of adequate enforcement of copyright online
Copyright is not adequately enforced online in the United States. It is reported that despite a temporary decline during the COVID-19 lockdown, media piracy has seen a resurgence. The proliferation of popular streaming TV content and the return of robust wide-release film slates have contributed to steady increases in illicit viewing since 2020. In 2022, global visits to piracy websites totalled 215 billion, marking an 18% year-over-year increase. The U.S. accounted for the largest share of film and TV piracy, with more than 13.5 billion visits to piracy sites. Specifically, film piracy rose sharply by 36% compared to the previous year, while TV piracy grew by nearly 9%. Unlicensed streaming websites have now surpassed downloads as the primary method for accessing pirated content, with 95% of pirated TV shows and 57% of films accessed through these platforms in 2022.
Coverage Horizontal
UNITED STATES
Since June 1991, last extended in June 2018, until June 2023
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In June 1991, the United States authorities imposed a definitive anti-dumping duty on imports of silicon metal (HS Code: 280469) from China, which is used also for producing silicon compounds as well as silicon wafers used as electronic semiconductors. This measure was last extended in June 2018. The rate of duty on imports from China is 139.49%.
Coverage Product: Silicon Metal (HS Code: 280469)
Country: China
Country: China
Sources
- https://web.archive.org/web/20241122160813/https://archives.federalregister.gov/issue_slice/1991/6/10/26648-26650.pdf#page=2
- http://i-tip.wto.org/goods/Forms/TableViewDetails.aspx?mode=modify
- https://web.archive.org/web/20210324225504/https://www.federalregister.gov/documents/2018/06/04/2018-11904/silicon-metal-from-the-peoples-republic-of-china-continuation-of-antidumping-duty-order
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UNITED STATES
Since March 2002
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Adoption of the World Intellectual Property Organization (WIPO) Copyright Treaty
WIPO Copyright Treaty
The US has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal
UNITED STATES
Since March 2003, last extended in June 2020, until June 2025
Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods |
Sub-pillar Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In March 2003, the United States authorities imposed a definitive anti-dumping duty on imports of silicon metal (HS Code: 280469) from Russia, which is also used for producing silicon compounds as well as silicon wafers used as electronic semiconductors. This measure was last extended in June 2020. The rate of duty on imports from Russia is 79.42% for all companies, with the exception of Russian ZAO Kremny/Sual-Kremny-Ural Ltd, which gets a 56.11% duty.
Coverage Product: Silicon Metal (HS Code: 280469)
Country: Russia
Country: Russia
Sources
- https://web.archive.org/web/20220707125045/https://www.federalregister.gov/documents/2020/06/24/2020-13641/silicon-metal-from-russia-continuation-of-antidumping-duty-order
- https://web.archive.org/web/20210523054828/https://www.federalregister.gov/documents/2003/03/26/03-7261/antidumping-duty-order-silicon-metal-from-russia
- http://i-tip.wto.org/goods/Forms/TableViewDetails.aspx?mode=modify
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