Abstract
We have made significant progress in bringing our telecommunications laws and regulations into compliance with our commitments under the GATS. However, more work needs to be done to effectively prevent anticompetitive practices. Particular attention should be given to the ongoing dispute between the U.S. and Mexico being brought before the WTO. It is a good opportunity for the "Reference Paper" to actually go through the dispute resolution process so that some sort of precedent exists and we can obtain a surer understanding of what the actual meaning of the Reference paper. Most governments included commitments on regulatory disciplines based on a Reference Paper which defines competition safeguards, interconnection guarantees, licensing criteria, independence of regulators from operators, and other principles for the regulatory framework for basic telecommunications services. The U.S. ECO test, for example, has been modified by the 1997 Foreign Entry Order. The Reference Paper, therefore, is revolutionary. Domestic competition policies regarding telecommunications services are being multilateralized. This article discusses the limits of the sector-specific competition rules under GATS. Sectoral approaches can serve as a model for the future liberalization of other regulated industries. The sector-sepcific competition rules are, however, exposed to the risks of regulatory bypass and regulatory capture. Substantive competition principles should be applicable to all economic sectors under the WTO to enhance the integration of trade and competition rules in the multilateral framework.