Diskussionsbeiträge: Serie II, Sonderforschungsbereich 178 "Internationalisierung der Wirtschaft", Universität Konstanz 239
Under present GATT-rules distortions caused by monopolies, cartels, excessive subsidies, etc. can only be counteracted indirectly at national borders. It is argued that by substituting first best competition policy measures at the origin of distortions for the present regime of second best measures efficiency gains can be realized, provided the still dominating principle of national sovereignty gives way to more international coordination and Cooperation. Experience in the European Union may possibly serve as a guideline for fiiture developments in the World Trade Organisation.