WTO Working Papers

WTO working papers usually represent research in progress. Such research may be conducted in the preparation of WTO Secretariat reports, studies or other material for WTO members. The papers are circulated for comment because the WTO considers critical review of professional research to be extremely important.


Reform in Basic Telecommunications and the WTO Negotiations

The Asian Experience

This paper examines liberalization of the basic telecommunications sector in a number of Asian countries and the role of the General Agreement on Trade in Services (GATS) in this process. It begins by explaining the working of the GATS as a mechanism for multilateral liberalization efforts. It then presents a description of the reforms taking place in the telecom regimes of selected Asian countries, and of the commitments these countries made in the recent GATS negotiations. The paper explores the reasons why governments have taken advantage of the GATS negotiations to make multilateral market-opening commitments, even though they were not pursuing export interests. The paper also considers the limits to what was achieved by way of liberalization commitments in the negotiations. Allowing greater foreign equity participation without liberalizing the conditions of entry may raise national welfare concerns. Furthermore, certain governments could have taken greater advantage of the opportunity under GATS to precommit to future liberalization.


Keywords: services, GATS, telecommunications, investment, trade liberalization
JEL: L51: Industrial Organization / Regulation and Industrial Policy / Economics of Regulation; F13: International Economics / Trade / Trade Policy; International Trade Organizations; K33: Law and Economics / Other Substantive Areas of Law / International Law; L43: Industrial Organization / Antitrust Issues and Policies / Legal Monopolies and Regulation or Deregulation
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