US Reciprocal Trade Agreements Threaten Global South Internet Connectivity

• U.S. Reciprocal Trade Agreements (ARTs) signed since February 2025 threaten to widen the digital divide in signatory nations by restricting access to affordable ICT suppliers.
• Provisions within these deals allow the U.S. to influence ICT procurement, potentially excluding Chinese companies like Huawei and ZTE in favor of U.S. competitors.

The Scope and Risks of ARTs

• Agreements have been signed with 10 nations, including Malaysia, Indonesia, Bangladesh, and Argentina, with several more in development.
• Many signatory nations struggle with significant digital divides; for example, large portions of rural schools in Indonesia and Guatemala currently lack internet connectivity.
• Restricting established, cost-effective Chinese hardware—which is often 60 to 70 percent cheaper than Western alternatives—could halt 5G and 6G network rollouts.

Infrastructure and Dependency

• The International Telecommunication Union identifies a $1.6 trillion ICT infrastructure investment gap, which China has partially addressed through its Digital Silk Road.
• Western firms currently struggle to match the scale, cost, and manufacturing capacity of Chinese suppliers, making a sudden transition to non-Chinese equipment financially prohibitive for many developing nations.
• Reliance on any single source poses long-term risks, including technological dependency and vulnerability to foreign geopolitical leverage.

Strategic Recommendations

• Developing nations should prioritize sovereignty by retaining control over which technology providers best meet their unique security and budgetary needs.
• Strategies for future growth should focus on technology transfers, the development of domestic industries, and the adoption of innovative, decentralized ICT networks to reduce reliance on foreign imports.