Chapter 6 of this book concluded that international trade law and international competition law could be reconciled at a theoretical level via the concept of ‘market contestability’. Chapters 7 and 8 now consider the appropriate reconciliation of both disciplines at a practical level by applying the concept of ‘market contestability’ to examples of under-regulation.

The analysis of under-regulation in Chapters 7 and 8 can be contrasted with the analysis of over-regulation in Chapter 4 of this book. Chapter 4 identified the blocking of international mergers and the extra-territorial enforcement of competition laws as examples of over-regulation. Chapters 7 and 8 now consider examples of ‘under-regulation’ involving anti-competitive conduct and problematic trade measures from the respective perspectives of international trade law and international competition law. In particular:

• Chapter 7 considers anti-competitive behaviour from the perspective of international trade. Chapter 7 identifies various private anti-competitive practices impeding international trade that are not effectively regulated either by existing international trade law or domestic competition law. These examples evidence ‘under-regulation’ in the application, enforcement and substantive content of domestic competition laws.

• Chapter 8 adopts the opposite perspective and considers international trade measures from the perspective of international competition. Chapter 8 identifies various trade measures that are not regulated by existing international trade law, but that adversely affect international competition. These examples evidence ‘under-regulation’ in the application, enforcement and substantive content of international trade law.

In both cases, Chapters 7 and 8 identify how an international competition agreement could be used to correct such under-regulation and thereby prevent conduct that would otherwise reduce market contestability and global welfare.