U.S. telecommunications services, export and investment competition between Mexico and China, and U.S. integration of manufacturing are among the topics examined in the current issue of Industry Trade and Technology Review (ITTR), a quarterly publication of the U.S. International Trade Commission's Office of Industries.

Industry Trade and Technology Review contains articles originating from research and analysis conducted by International Trade Commission (ITC) staff as part of its responsibilities to provide advice and technical information on industry and trade issues. The ITTR provides analysis of important issues and insights into the global position of U.S. industries, the technological competitiveness of the United States, and implications of trade and policy developments.

The ITTR is a publication of the Office of Industries. The opinions and conclusions it contains are those of the authors and are not the views of the Commission or of any individual Commissioner.

The current issue (July 2002) includes the following articles:

• U.S. Telecommunication Services: Industry and Trade Outlook -- In recent years, intense competition and network overcapacity in the U.S. long-distance market have pushed down calling rates and revenues. The U.S. economic downturn has reduced revenue growth for local telecommunication service providers and has led to slower growth in U.S. direct investment abroad in the telecommunications industry. However, the U.S. trade deficit in telecommunication services declined significantly for the most recent 2000 annual data, largely due to reductions in international accounting rates. This article assesses trade and investment flows of global telecommunication firms, reviews the current state of the U.S. telecommunication services industry, and reports on progress in telecommunication services negotiations at the World Trade Organization.

• Mexico Versus China: Factors Affecting Export and Investment Competition -- The competition between Mexico and China in the United States and other key export markets is gaining increased attention. Currently, Mexico's maquiladora industry, which assembles imported components into finished or intermediate goods, most of which are exported to the United States, is confronted by lower growth prospects in the U.S. market, loss of relatively low-technology jobs, and shifts of sourcing from Mexico to China. This article briefly examines competition between Mexican and Chinese manufactured goods in the U.S. and other foreign markets, the product segments in which each country is a leading supplier, and the factors influencing the related investment decisions about location of manufacture.

• Production Sharing Update: Developments in 2001 -- Investment in production sharing operations (that use U.S.-made components in foreign assembly plants) has become an integral part of global efforts to reduce manufacturing costs and has contributed to the accelerated pace of cross-border integration of manufacturing in North America and the Caribbean Basin. Trade legislation implementing the African Growth and Opportunity Act and the Caribbean Basin Trade Partnership Act in 2000 also had the effect of encouraging additional production sharing investments. Under these provisions, qualifying apparel, made from U.S.-formed fabric and/or yarn, imported from eligible African and Caribbean Basin countries can enter the United States free of duty. Other U.S.-content imports can enter the United States duty free or at reduced duties under existing production sharing provisions of the Harmonized Tariff Schedule of the United States. This article highlights developments in 2001 regarding imports under production sharing provisions and cross-border integration of manufacturing in North America and the Caribbean Basin.

In addition, the publication includes an appendix charting key performance indicators for the steel, automobile, aluminum, flat glass, and services industries, as well as for North American trade.

Industry Trade and Technology Review (USITC Publication 3534, July 2002) will be posted on the ITC's Internet site at www.usitc.gov. A cumulative list of articles published in the report series is also posted. The ITTR will also be available at regional federal depository libraries in the United States. To request a printed copy of the ITTR or to be added to the mailing list, contact the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington DC 20436. Requests may also be faxed to 202-205-2104.