Introduction

This paper describes current WTO rules concerning telecommunications services. It includes an explanation of the structure of the GATS, its Annex on Telecommunications, and the Agreement on Basic Telecommunication Services. As discussed in the previous chapter, the latter reflects the commitments of sixty-nine countries that agreed to open their markets to foreign basic telecommunication services and to foreign suppliers of these services. It also contains additional rules which are linked to these commitments and are assembled under the so-called ‘Reference Paper’.

The GATT is relevant in relation to equipment and terminals used to convey and receive telecommunications signals. This, however, constitutes a different line of trade, which is discussed in Chapter 9 of this book.

The GATS

The GATS, similarly to the GATT, aims at protecting equality of competitive opportunities for companies in domestic markets regardless of their origin and the origin of their services. It aims at facilitating progressive liberalisation of services while enabling WTO Members to regulate them “in order to meet national policy objectives”. The GATS thus constitutes the framework agreement relevant to all services and particularly those that, like telecommunication services, have been or are being liberalised.

In contrast with the GATT, the GATS contains a mix of horizontal commitments applicable to all services and service suppliers and sectorbased commitments only applicable to those sectors which have been explicitly open to trade by WTO Members.

Horizontal disciplines that concern all services and service suppliers

Horizontal rules apply to all measures by Members affecting trade in services. There are no limits in the scope of services except those supplied on a non-commercial basis or outside any form of competition, such as national security or justice.