The Interplay of Multilateral Agreements and Domestic Regulations in Telecommunications

Institutional changes in telecommunications services have revolutionized the way national governments and multilateral agencies treat the sector. In Latin America, changes have been especially dramatic since new regulation has given rise to a completely different group of actors and industry structure. This chapter looks at the impact of international telecommunications agreements on Latin America. First, a framework is developed in section 6.2 in order to analyze conflicts, challenges and local interests in the telecommunications services sector. Second, multilateral and regional agreements are reviewed, namely the General Agreement on Trade in Services (GATS), Mercosur and NAFTA. The effect these agreements have had on telecommunications regulations in Latin America is analyzed in section 6.3. Finally, the chapter investigates conflicts and reactions to the new agenda. These include convergence and divergence in Latin American national policies concerning competition, propriety, safeguards, countervailing duties and antidumping measures. The argument stems from proper identification of factors affecting national telecommunications policies, including the relationship between national regulation agencies and distinct lobbies: users, equipment and service suppliers, existing regulated firms, new entrants and international agreements.