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Conference


Hamburg Institute of International Economics (HWWA) and
Istituto Affari Internazionali (IAI)


Trade, Investment and Competition Policies
in the Global Economy:
The Case of the International Telecommunications Regime

 

International Workshop
Hamburg, HWWA

January 18 and 19, 2001

 

 

The workshop agenda

Thursday, January 18, 2001

14:00 - 14:30     Introductory Session

Paolo Guerrieri, IAI and University "La Sapienza", Rome, Italy
Hans-Eckart Scharrer, HWWA, Germany

Session I: Liberalisation and Market Strategies in Telecommunications

14:30 - 16:15

Liberalisation in Telecommunications
Andreas Knorr, University of Bremen

Corporate Strategies in the Telecommunication Sector in an Environment of Continuing Liberalization
Christine Borrman, HWWA, Hamburg
Discussant: Dieter Elixmann, Scientific Research Institute for Communication Services (WIK), Bad Honnef

16:15 - 16:30    Coffee break

Session II:: Regional Case Studies

16:30 - 18:30

Deregulating and Liberalising TLCs: an US View
Peter Cowhey and John E. Richards, , Institute on Global Conflict and Cooperation, University of California

Deregulating and Liberalising TLCs: a European View
Peter Holmes and Alasdair Youg, SEI, Sussex University and European University Institute, Florence

Evening:    Conference dinner

Friday, January 19, 2001

9:00 -10:00    Session II (continued)

Liberalizing Basic Telecommunications: The Asian Experience
Aaditya Mattoo, Carsten Fink and Randeep Rathindran, The World Bank, Washington
Discussant: Jürgen Müller, Berlin School of Economics

Session III:    Competition and Investment

10:00 - 11:00

Non-Tariff Barriers and Telecommunications Sector
Sherry Stephenson, Deputy Director of the Trade Unit, Organization of American State
Discussant: Jan Krancke,Kiel Institute of World Economics

11:00 - 11:15 Coffee break

11:15 - 13:00

Standards and International Telecommunication Regime
Raymund Werle, Max Planck Institute for the Study of Societies, Cologne
Discussant: Joern Kruse, University of the Armed Forces Hamburg

Investment Policies and Telecommunications Regimes
Zdenek Drabek, Senior Adviser, Economic Research and Analysis Division, WTO, Geneva

13:00 - 14:15    Lunch

14:15 - 16:00

Competition Policies and Telecommunication Regime
Georg Koopmann, HWWA
Discussant: Justus Haucap, University of the Armed Forces Hamburg

Telecommunication Regime and Developing Countries
Carlos Braga and Bernard Hoekman, The World Bank, Washington
Presentation and Discussant: Carsten Fink, The World Bank, Washington

16:00 - 16:15    Coffee Break

16:15 - 17:15    Conclusions: Telecommunications and Global Governance

Paolo Guerrieri, IAI and University "La Sapienza", Rome
Hans-Eckart Scharrer, HWWA, Germany

Evening: Conference dinner

 

The background of the project

In the current trend towards globalization that is associated with a deepening of international integration, countries deal with very complex issues related to virtually all non-border policies and practices, such as competition policies, foreign direct investment (FDI) policies, labour standards and regulations, and the interaction among these issues. Complex problems emerge in this area because of differing domestic regulations, institutions, and government policies. Conflicts resulting therefrom may lead to inefficiencies and/or misallocations of resources that reduce global and national welfare. The potential benefits of eliminating distortions are, therefore, considerable.

New forms of global governance are needed to reconcile a multitude of divergent national practices. Problems of "global governance" at international level are particularly thorny and certain solutions do not exist. International Cooperation mechanisms are needed, ranging from consultation, co-ordination and harmonisation to the confederation of different practices and regulatory systems. While it is true that under certain circumstances nations may achieve positive benefits in terms of internalising international spillovers by creating international organisations with some powers of governance and coercion, it is also true that decentralised national decision-making can better accommodate diversity in national preferences and economic conditions. Therefore, the scope for global approaches needs to be discussed.

In this perspective service sectors represent a very good case-study. Traditionally many service industries have been highly regulated and at the same time been shielded from international - and often even domestic - competition. But in the past years the service sector (financial, telcommunications, etc.) has been affected by an intensive internationalization process. The integration of national services markets into the international economy offers not only economic gains and opportunities, but it may also give rise to tension and conflict.

In the service sector international negotiations have to do with promoting free access to national markets together with removing traditional trade barriers. Access is impeded, to varying degrees, by a number of structural factors deriving from different regulatory systems, institutional setups, forms of proprietary control, coalitions of interests, etc., tied to the domestic policies of a country. So the crux of the problem involves making domestic policy choices, structures and regulations compatible with the objective of the progressive removal of the obstacles impeding full internationalization of these activities.

Telecommunications services, a key service sector, gives evidence of all these challenges at hand. Since the early Eighties TLC has been experiencing radical changes due to new technological developments, advancing globalization, and the liberalization of domestic markets. After a complex phase of worldwide negotiations lasting several years a number of countries signed a multilateral Telecommunications Agreement under the auspices of the WTO. In essence, it mandates the liberalization of the worldwide TLC market in the period between 1998 and 2013. The structure and contents of the Agreement are very complex and were made even more complex by the peculiar nature of the commitments and rules the countries subscribed to and are bound to respect. The WTO agreement clearly marks the beginning of an international restructuring process of the TLC sector, rather than the end of negotiations.

In the light of the scenario defined above, the four main aims of the present research project can be summarized as follows:

Analysis of the liberalization and internationalization processes underway in the TLC in terms of both sectorial evolution and the relationships between the major areas and countries. The main hypothesis that liberalization of the TLC sector has characteristics in terms of global governance issues with more general validity than for the sector concerned and offer a reference frame that can be applied to other service sectors.

Evaluation of the contents, modalities and implementation of the liberalization processes in the three major geo-economic areas, in particular, in North America, Europe and Pacific Asia. Key questions are the degree of convergence regarding principles and market operating mechanisms as well as the persistence of differences in the production structures and in the regulatory systems of the three areas. The respective roles of regional integration agreements and the multilateral rules will be analysed as key issues in the definition of new regimes of global governance in TLC.

Analysis of trade, investment and competition policies in TLC in the new global context, as all of them and, above all, their interaction are crucial elements in guaranteeing effective market access for the TLC and many other service sectors. The key questions are what form these policies should take internationally and whether regional agreements might serve as stepping stones toward further global arrangements. In this regard the TLC case offers models for addressing these issues that could be generalised in many other sectors .

Finally, a reflexion of the new options for various devices of global governance using the results of the Research Project and outlining policy initiatives that are both desirable and feasible as well as applicable to TLC and other services sectors.

Scientific Director:
Professor Paolo Guerrieri, Professor of International Economics, IAI and University of Rome

Contacts and Coordination:
Dr Isabella Falautano, Research Fellow, Institute of International Affairs (IAI)


 

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