Policy Externalities and High-Tech Rivalry: Competition and Multilateral Cooperation Beyond the WTO

Abstract

Governments have increasingly been giving attention to the need for, and prospects of, ensuring contestability of markets through international agreements. This paper explores what has been achieved so far in the context of the World Trade Organization (WTO) and what might be done to further enhance the ‘competition-friendliness’ of the multilateral trading system. The case of high-technology industrial rivalry is used for concreteness. High-tech is interesting because it cuts across many of the issues that are relevant from a systemic perspective, both ‘old’ (market access) and ‘new’ (investment, antitrust). We conclude that greater contestability of regulatory regimes in domestic legal orders may be beneficial. This can be pursued by giving private parties the right to contest actions of WTO member states before national courts.