Non-Tariff Barriers and the Telecommunications Sector

This paper discusses the nature, importance, and measurement of non-tariff barriers (NTBs) in services trade with particular reference to telecommunications services. It is shown that although more effectively addressed for the telecom sector at the multilateral level than for other service sectors, NTBs are still widespread and would appear to have a large potential for restricting trade in services. The paper reviews the scope and classification of non-tariff barriers to services trade and sets out an alternative typology for their classification, highlighting the fact that NTBs may be either government-imposed, may result from non-competitive market structures, or from the absence of appropriate regulation. The latter is shown to constitute one of the most important sources of NTBs in network industries, such as telecommunications services. Attempts by the relevant literature to measure NTBs in telecommunications are summarized and their usefulness in identifying ?appropriate? policy mixes is commented. Lastly, the paper probes the question of whether existing multilateral and regional instruments and agreements are adequate to deal with the non-tariff phenomenon in the telecom sector in its several dimensions.