The US has won a World Trade Organization ruling that is likely to mean consumers and companies paying less to telephone Mexico. At present, all calls are routed via Mexico's national phone company Telmex.
The US complained that companies are overcharged as a result and that the system has cost users more than $1bn (�554m) since 2000.
The WTO agreed that Mexico was acting illegally, though it will have the chance to appeal against the decision.
Trade tariffs
US trade representative Robert Zoellick said that the ruling was an "important victory for American consumers and the telecommunications industry".
He continued by saying that: "Mexico has provided a single, dominant company with a government mandate to set excessive rates for international calls".
Free trade has come to the fore in recent months, with countries such as the US and China accusing each other of unfair practices before imposing tariffs on goods ranging from steel to underwear.
It even seems to have become a platform from which to fight for the presidency of the US, with George W Bush being criticised for not doing enough to protect the country's domestic markets
In fact, the US was criticised by the WTO at the start of this year for failing in its pledge to support free trade and had its "uneven record of compliance" with rulings highlighted.
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Poor countries and trade