Telecommunications and the World Trade Organization : The Case of Mexico

The U.S.-Mexico case (2002-04) was the first (and so far only) case of World Trade Organization (WTO) dispute resolution on telecommunications services and the first on services only. The findings of the Panel charged with settling the dispute contain interpretations of the General Agreement on Trade in Services (GATS), especially its Annex on Telecommunications and the Reference Paper that sets regulatory principles. Although these interpretations strictly apply only to the case examined, they have implications for other countries and sectors and beyond trade law. The following are some of the findings. Telecommunications services originated in one country and terminated in another country are cross-border services under the GATS irrespective of whether the same service provider is present in both countries. The accounting rate regime, whereby operators share revenue from international services provided jointly, is subject to the discipline of cost-based interconnection for countries that have adopted the Reference Paper. Uniform settlement rates and proportional return are anticompetitive practices under the Reference Paper even when they are mandated by law. The lack of implementing regulations does not excuse the country from meeting its commitments under the GATS. Mexico and the United States, although not in full agreement with the Panel, did not appeal. An agreed plan to address the underlying legal and regulatory issues was successfully implemented in July 2005.

Bibliographic Details

Main Authors:	Wellenius, Björn, Galarza, Juan, Guermazi, Boutheina
Language:	English
Published:	World Bank, Washington, DC 2005-11
Subjects:	ANTI-COMPETITIVE PRACTICES, BARRIERS TO ENTRY, BENCHMARK, CARTEL, COMMERCIAL PRESENCE, COMMUNICATION SERVICES, COMMUNICATION TECHNOLOGY, COMPETITION LAW, COMPETITION POLICY, COMPETITIVE MARKETS, COMPETITIVE PRACTICES, COMPETITIVENESS, CONSUMPTION ABROAD, CROSS-BORDER DELIVERY, CROSS-BORDER SUPPLY, DATA TRANSMISSION, DEVELOPMENT STRATEGIES, DOHA DEVELOPMENT AGENDA, DOMESTIC REGULATION, E-COMMERCE, ECONOMIC FEASIBILITY, ECONOMIC RESEARCH, ENERGY SERVICES, FEDERAL COMMUNICATIONS LAW, FINANCIAL SERVICES, FIXED NETWORKS, FOREIGN BANKS, FOREIGN INVESTMENT, FOREIGN PROVIDERS, FOREIGN SERVICE PROVIDERS, FOREIGN SERVICE SUPPLIERS, FOREIGN SUPPLIERS, FREE TRADE, GATS, GATS RULES, GLOBAL TRADE, INSURANCE COMPANIES, INTELLECTUAL PROPERTY, INTERNATIONAL CALLS, INTERNATIONAL TRADE, INTERNET SERVICE PROVIDERS, ISP, LEASED LINES, LICENSING, LINES, MARKET ACCESS, MARKET ACCESS COMMITMENTS, MERGERS, MFN, MFN EXEMPTIONS, MIDDLE EAST, MODES OF SUPPLY, MULTILATERAL RULES, MULTILATERAL TRADE, NATIONAL TREATMENT, NETWORK DEVELOPMENT, NORTH AFRICA, OPEN MARKETS, POLITICAL WILL, POSTAL OPERATORS, PREDATORY PRICING, PRESENCE OF NATURAL PERSONS, PROGRAMS, PROPERTY RIGHTS, PUBLIC TELECOMMUNICATIONS, RADIO, REGULATORY FRAMEWORK, REGULATORY PRINCIPLES, SERVICE PROVIDER, SERVICE PROVIDERS, SERVICE SECTORS, SERVICE SUPPLIER, SERVICE SUPPLIERS, SERVICES INDUSTRIES, SERVICES SECTORS, TELECOM SECTOR, TELECOMMUNICATION, TELECOMMUNICATION SERVICES, TELECOMMUNICATIONS, TELECOMMUNICATIONS COMPANIES, TELECOMMUNICATIONS LAW, TELECOMMUNICATIONS LIBERALIZATION, TELECOMMUNICATIONS MARKETS, TELECOMMUNICATIONS NETWORKS, TELECOMMUNICATIONS POLICY, TELECOMMUNICATIONS REFORM, TELECOMMUNICATIONS REFORMS, TELECOMMUNICATIONS SECTOR, TELECOMMUNICATIONS SERVICES, TELECOMMUNICATIONS SERVICES MARKET, TELEPHONE SERVICE, TELEPHONES, TEXT, TRADE IN SERVICES, TRADE LIBERALIZATION, TRADE NEGOTIATIONS, TRANSPORT SERVICES, UNDERLYING PROBLEMS, UNIVERSAL SERVICE, URUGUAY ROUND, VOICE TELEPHONY, WORLD TRADE ORGANIZATION, WTO,
Online Access:	http://documents.worldbank.org/curated/en/2005/11/6360814/telecommunications-world-trade-organization-case-mexico https://hdl.handle.net/10986/8479
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