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Stakeholders Offer Support, Comments on International Services Agreement

Any International Services Agreement should lower barriers to digital services trade and ensure that digital products receive market access and other open market benefits -- including intellectual property protection -- a Software and Information Industry Association representative said in written testimony to the U.S. Trade Representative. David LeDuc, senior director of public policy at the association, submitted the testimony for the USTR’s March 12 public hearing on the Obama Administration’s intent to enter into negotiations for an International Services Agreement (ISA).

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LeDuc said any ISA should also allow for cross-border information flows, and not require service suppliers “to use local infrastructure, or establish a local presence, as a condition of supplying services.” About 50 other stakeholders have submitted comments for USTR's March 12 ISA hearing. The American Apparel and Footwear Association supported an ISA and encouraged the USTR to incentivize other countries to join the agreement. In its own comments, the National Foreign Trade Council agreed, adding that an ISA should be flexible enough to permit coverage of new technologies, and recognize service clusters -- securing market access horizontally “including cross-border information flows, e-commerce, and financial, retail, communications, transportation and computer-related services.” The National Retail Federation made various recommendations for any ISA, including eliminating restrictions on foreign company participation in retailing activities and a cap on local equity requirements for trailing and distribution services.