US Trade Representative Says El Salvador Not Complying with Telecommunications Agreement
April 17, 2008

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The commercial dispute between Americatel, a U.S. telecommunications company, and the Telecommunications Company of El Salvador (CTE) is one of the cases identified in a recent report by the United States Trade Representative (USTR).

United States Trade Representative Susan C. Schwab recently announced the results of the annual review of the operation and effectiveness of telecommunications agreements under section 1377 of the Omnibus Trade and Competitiveness Act of 1988. 

The 1377 review identifies barriers facing U.S. telecommunications service and equipment suppliers and evaluates progress made towards resolving on-going problems.

In the case of Americatel, the report indicates that an international arbitration panel ruled last year that CTE must grant additional interconnection circuits to allow the U.S. company to expand its low-cost service, but CTE has refused to comply with the ruling.  Further, at CTE’s request, the Salvadoran Supreme Court has enjoined El Salvador’s regulating entity, the Superintendant of Electricity and Telecommunications, from taking any action against CTE to force it comply with the arbitration decision.  CTE is a subsidiary of Mexican Telcom giant America Movil, which is controlled by Mexican businessman Carlos Slim.

To view USTR press release, click here

To view complete report, click here