In the international area, NTIA develops and advocates regulatory and technical policies that will improve the international competitiveness of the U.S. telecommunications and information industry and the ability of U.S. businesses and consumers to have access to high-quality, reasonably-priced international services. NTIA will continue to develop international policies that promote effective competition, including a diversity of facilities and services, and open markets for U.S. service providers and equipment suppliers. Telecommunications standards will continue to provide the basis for U.S. equipment manufacturers and service providers to compete in global markets. NTIA's continuing participation in domestic and international standards-setting forums also strengthens the competitiveness of U.S. telecommunications and information services. FY 1999 is the final year of funding of the International

Telecommunication Union Plenipotentiary Conference, which is being hosted by the United

States.

As the manager of Federal radio frequency spectrum, NTIA must ensure that all government needs for vital telecommunications services can be satisfied nationally and internationally. In light of technological growth, the advent of new satellite technology, unprecedented demands on the allocation of spectrum, the need for more rapid communications, and the transfer of large volumes of information, the national and international uses of spectrum have increased and are expected to continue to increase dramatically. NTIA will formulate plans and policies to ensure the most efficient, effective and equitable use of the radio frequency spectrum. Since FY 1996, Congress has mandated apportioning the costs of spectrum management among the Federal agency users. For FY 1999, NTIA is requesting increased reimbursable budget authority to offset the cost of NTIA providing spectrum management and related services to those user agencies (as directed by House Report No. 105-207).

NTIA's telecommunications research and engineering is designed to keep the United States at the forefront of telecommunications technology and ensure that American firms have the technical knowledge available to stimulate product development and service provision. Research is directed toward improving the understanding of radio-wave transmission to enhance spectrum utilization and the performance of radio communication systems. This research results in spectrum use concepts and models that lead to more efficient industry and government use of the radio frequency spectrum and electromagnetic wave and propagation models that lead to improvements in radio system performance. NTIA also performs studies directed toward developing domestic and international telecommunications performance standards, assessing the performance of industry and government telecommunications networks, and evaluating new technologies for applications for future needs. These activities facilitate competition in the U.S. telecommunications industry, promote international trade opportunities for U.S. telecommunications firms, and improve the cost effectiveness of government telecommunications use.

Summary of Proposed Increases

NTIA's FY 1999 budget initiatives are focused on improving the quality of telecommunications

provided to the public and private sectors. The following are summaries of the proposed FY 1999 initiatives:

Information Infrastructure Grants ($2 million, 0 FTEs).

The additional funds requested will permit NTIA, through the Telecommunications and Information Infrastructure Assistance Program, to extend the benefits of the National Information Infrastructure to under-served Americans. NTIA seeks to support projects that serve a variety of needs, and the additional funds will permit a more equitable distribution of projects in both rural and low-income urban communities across the country.

Public Safety Spectrum Needs ($390 thousand and 3 FTEs)

NTIA, as manager of the spectrum allotted and used for Federal operations, must ensure that all Federal radio communications needs for spectrum are provided to ensure that the public is provided national security, safety, protection, and other public services. In recognition of the importance of public safety services to the American public and of spectrum to these activities, NTIA will provide the necessary leadership, technical expertise, policy guidance, and spectrum management support for the successful coordination of national public safety requirements, goals and objectives both within the Federal Government and the state and local entities and in coordination with the Federal Communications Commission. (Note: NTIA is also requesting 7 reimbursable FTEs and $1,560,000 in increased spectrum reimbursements to fund this initiative.)

Adjacent Band Interference and New Technology Application ($110 thousand, 1 FTE) Extensive radio regulations have been developed both nationally and internationally to ensure that various radio services can operate compatibly in the same environment and without unacceptable levels of radio interference. These regulations are primarily focused on radio systems utilizing the same allocated bands of frequencies. Recent years have seen a dramatic increase in the number of problems and spectrum issues involving adjacent band interference interference from a transmitter operating in one band to a receiver operating in an adjacent allocated band. NTIA proposes to undertake a comprehensive examination of adjacent band interference, including technical and regulatory issues, and to make appropriate recommendations. (Note: In addition to the direct funding, NTIA is also requesting 3 reimbursable FTEs and $440,000 in increased spectrum reimbursements to fund this initiative.)

Public Telecommunications Facilities and Digital Broadcasting Applications ($15 million, 13 FTEs)

For over 30 years, the Public Telecommunications Facilities Program has played a major role in the development of public broadcasting throughout the United States. Under this initiative, and in

cooperation and coordination with the Corporation for Public Broadcasting, NTIA will assist in the digital transition of public television and radio broadcasters through the awarding of competitive grants to demonstrate innovative, replicable applications of digital broadcasting in order to promote consolidation and efficiency within the public broadcasting system.

Under the Public Telecommunications Facilities Program, NTIA has assisted, through matching grants, in the planning and construction of public broadcasting facilities to extend delivery of public broadcasting services to as many Americans as possible by the most efficient and economic means; increase public broadcasting services and facilities available to, operated by, and owned by minorities and women; and strengthen the capability of existing public television and radio stations to provide public broadcasting services to the public. The President's initiative for Public Telecommunications Facilities and Digital Broadcasting Applications will allow NTIA to continue to assist public broadcasters to utilize digital technologies to improve the public broadcasting infrastructure and expand services to the public.

Conclusion

We appreciate this Committee's past support, and look forward to working with you in the future. Thank you for the opportunity to share these views with you.

DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE JUDICIARY, AND RELATED AGENCIES APPROPRIATIONS FOR 1999

APRIL 1998

U.S. INTERNATIONAL TRADE COMMISSION

THE FOLLOWING STATEMENT WAS SUBMITTED FOR THE RECORD

WRITTEN STATEMENT OF THE HONORABLE MARCIA E. MILLER, CHAIRMAN OF THE U.S. INTERNATIONAL TRADE COMMISSION IN SUPPORT OF THE COMMISSION'S FISCAL YEAR 1999 BUDGET REQUEST

SUBMITTED TO THE HOUSE COMMITTEE ON APPROPRIATIONS SUBCOMMITTEE ON COMMERCE, JUSTICE, STATE, AND THE JUDICIARY

April 14, 1998

The U.S. International Trade Commission (ITC) appreciates the opportunity to present written testimony to the House Appropriations Subcommittee on Commerce, Justice, State, and the Judiciary. Fiscal Year (FY) 1999 brings a significant new challenge for the Commission. In FY 1999, it will experience a dramatic increase in its caseload resulting from the implementation of the Uruguay Round Agreements Act of 1994 (URAA). Given the magnitude of this new mandate and the downsizing which has occurred over recent years, the Commission has found need to request a 10.4 percent increase in its budget for FY 1999. While significant in percentage terms, this request is actually a conservative one that can be amply justified when evaluated in view of the substantial increase in workload vested in the Commission by the Congress.

New Statutory Resource Demands (Five-Year or “Sunset” Reviews)

As the Committee is aware, the Commission acts as a decisionmaker in antidumping and countervailing duty (AD/CVD) cases, determining, in a quasi-judicial investigative procedure, whether certain imports are materially injuring, or threatening to injure, U.S. industry. Enactment of the URAA mandated that the Commission and, separately, the Department of Commerce, conduct a review every five years of existing AD/CVD orders to determine if the orders should continue or be revoked. In five-year reviews, the Commission must determine whether revocation of an existing AD/CVD order would be likely to lead to continuation or recurrence of material injury to the domestic industry. Separately, the Department of Commerce determines whether revocation of the order would be likely to lead to a continuation or recurrence of dumping or a countervailable subsidy. Both determinations must be affirmative for an order to be continued.

The law requires that the reviews of all AD/CVD orders in place before the implementation of the Uruguay Round on January 1, 1995 be conducted over a three-year “transition” period beginning in July 1998, and ending by June 2001. At present, there are 324 outstanding AD/CVD orders that are eligible for review during this three-year transition period. These reviews will be conducted in addition to ongoing and new investigations that arise, as well as five-year reviews of orders that have taken effect since January 1, 1995. The amount of work involved in each of the sunset reviews is comparable to that of a final injury investigation, each of which is approximately four to six months long. Historically, the AD/CVD caseload averages 50 investigations per year. Over the next three years, the total caseload for these investigations, including reviews, is anticipated to triple to more than 150 investigations per year.