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Sidak, J. Gregory; Singer, Hal J. --- "An Antitrust Analysis of the World Trade Organization’s Decision in the US–Mexico Arbitration on Telecommunications Services" [2006] ELECD 543; in Marsden, Philip (ed), "Handbook of Research in Trans-Atlantic Antitrust" (Edward Elgar Publishing, 2006)

Book Title: Handbook of Research in Trans-Atlantic Antitrust

Editor(s): Marsden, Philip

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781845421816

Section: Chapter 26

Section Title: An Antitrust Analysis of the World Trade Organization’s Decision in the US–Mexico Arbitration on Telecommunications Services

Author(s): Sidak, J. Gregory; Singer, Hal J.

Number of pages: 39

Extract:

26 An antitrust analysis of the World
Trade Organization's decision in the
US­Mexico arbitration on
telecommunications services
J. Gregory Sidak1 and Hal J. Singer2


Introduction
On 2 April 2004, the World Trade Organization (WTO) assumed a new role
as a highly specialized, global regulator of domestic telecommunications
policy. In response to a complaint filed by the United States against the
Republic of Mexico, the WTO's Dispute Settlement Body in April
2002 established an arbitration panel in accordance with Article 6 of the
Understanding on Rules and Procedures Governing the Settlement of
Disputes. The United States alleged that Mexico had violated its commit-
ments under section 5 of the Annex on Telecommunications to the
General Agreement on Trade in Services (GATS) by failing to ensure
that Teléfonos de México, S.A. de C.V. (Telmex), the largest Mexican sup-
plier of basic telecommunications services, (1) provide interconnection to
US telecommunications carriers at `cost-oriented' rates, (2) refrain from
anticompetitive practices,3 and (3) provide US telecommunications carriers
with `reasonable and non-discriminatory' access to public telecommuni-
cations networks and services as mandated by the GATS Annex on
Telecommunications.
In its April 2004 decision, the WTO arbitration panel found that Mexico
had not met its GATS commitments with respect to supply of telecommu-
nications services on a `facilities basis' ­ that is, services supplied over the
service provider's own infrastructure, rather than over leased capacity on
someone else's infrastructure.4 As a result, Mexico became obliged ...