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6 - Would the WTO provide a suitable institutional vehicle for an international competition agreement?

Published online by Cambridge University Press:  17 July 2009

Martyn D. Taylor
Affiliation:
Mallesons Stephen Jaques
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Summary

The WTO is sometimes described as a ‘free trade’ institution, but that is not entirely accurate. The system does allow tariffs and, in limited circumstances, other forms of protection. More accurately, it is a system of rules dedicated to open, fair and undistorted competition.

(World Trade Organisation Secretariat, 1999)

Part II of this book, commencing with Chapter 6, considers whether the WTO would provide a suitable institutional vehicle for an international competition agreement.

Importantly, Chapter 6 of this book does not consider whether the WTO would provide the optimal institutional framework for an international competition agreement. An analysis of whether the WTO would provide the optimal institutional framework is deferred to Chapter 10. Rather, Chapter 6 only considers, the extent to which it would be feasible to incorporate an international competition agreement into the WTO and the likely benefits of doing so.

Chapter 6 has three principal sections:

  • Section 6.1 identifies the limited historical inclusion of competition law within the GATT, the evolution of the WTO, and various historical initiatives to include competition law within the GATT and the WTO. Section 6.1 identifies aspects of competition law incorporated into the WTO by the Uruguay Round.

  • Section 6.2 considers the theoretical relationship between international competition law and trade law and establishes the context for assessing proposals to integrate the two disciplines.

  • Section 6.3 identifies areas of convergence between international competition law and international trade law and proposes a theoretical means to reconcile both laws, based on the concept of market contestability.

Type
Chapter
Information
International Competition Law
A New Dimension for the WTO?
, pp. 147 - 184
Publisher: Cambridge University Press
Print publication year: 2006

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