International commercial equipment leasing and telecommunication accounting rate reform 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 U.S. International Trade Commission (USITC) 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 (October 2002) includes the following articles:

International Trade in Commercial Equipment Leasing Services -- In part, as both lessors and lessees benefit from differences in international tax regimes, it is often more advantageous for firms to lease rather than purchase commercial equipment. Since passage of the 1984 Tax Reform Act, many cross-border leasing companies have made use of foreign sales corporations (FSCs) to lower their U.S. tax obligations on exports of leased equipment. However, a recent decision by the World Trade Organization (WTO) has determined FSCs to be inconsistent with U.S. obligations under international trade agreements. This article examines the current state of the global market for cross-border equipment leasing, recent changes in global tax laws related to commercial equipment leasing, implications of the WTO decision on FSCs, and anticipation by industry representatives of decreased demand for cross-border leasing services originating in the United States.

International Telecommunication Markets: Accounting Rate Reform -- International telecommunication service markets are undergoing technological advances and market liberalization that have intensified competition, increasing the incentive to reform the accounting rate remuneration mechanism for settling traffic imbalances between international carriers. This article provides an overview of the accounting rate system, examines the emergence of competition in the global telecommunication services market, analyzes the dissolution of the accounting rate system, and discusses the potential impact on developing countries of accounting rate reform.

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 3562, October 2002) will be posted on the USITC'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.