RESTRICTED
WORLD TRADE WT/WGTCP/W/49
25November 1997
ORGANIZATION(97-5184)
Working Group ontheInteraction
between Trade andCompetition Policy
DRAFT REPORT (1997) TOTHE GENERAL COUNCIL
1. TheWorking Group ontheInteraction between Trade andCompetition Policy wasestablished
byadecision taken attheWTO Ministerial Conference heldinDecember 1996. Paragraph 20ofthe
Ministerial Declaration provides thattheGeneral Council willkeepthework oftheWorking Group
under review.
2. Following theagreement bytheGeneral Council atitsmeeting of24April 1997 tothe
appointment ofProfessor Frédéric Jenny (France) asChairman oftheWorking Group ontheInteraction
between Trade andCompetition Policy1,theWorking Group heldformal meetings on7and8July,
on16and17Septemberandon27and28November1997.Thedatesofthesemeetingsweredetermined
inlightoftheinstruction inparagraph 22oftheSingapore Ministerial Declaration thatcareful attention
begiven tocoordinating meetings withthose ofrelevant UNCTAD bodies. Reports onthefirsttwo
meetings havebeencirculated indocuments WT/WGTCP/M/1 and2.Areport onthethirdmeeting
willbecirculated shortly asdocument WT/WGTCP/M/3.
3. Atthemeeting of7and8July, Members made general statements onthenature ofthework
tobepursuedunderthemandatecontainedintheSingaporeMinisterialDeclarationandidentifiedspecific
issues forstudy intheWorking Group. Written submissions weremade bytheEuropean Community
anditsmember States, Switzerland, Peru, Japan, theRepublic ofKorea, theUnited States, Canada,
Australia, Egypt, Pakistan, Norway, Mexico, Venezuela, Hong Kong China, Nigeria, thePhilippines
onbehalf ofASEAN WTO Members, NewZealand, Poland andIndia (WT/WGTCP/W/1-10, 12-16,
19-20 and23-24, respectively). Representatives ofUNCTAD, theOECD, theWorld Bank andAPEC
member economies made statements ontheiractivities relevant totheWorking Group (documents
WT/WGTCP/W/17-18,and21-22,respectively).TheWorkingGroupalsodiscussedcompetition-related
provisionsinexistingWTOagreements,basedonaninformalnotepreparedbytheSecretariat(document
No.3347). TheWorking Group tooknoteofthepaper, while alsonoting thatitdidnotprejudge
thework oftheGroup. TheWorking Group noted thattheIMFandtheWorld Bank hadobserver
status intheWorking Group pursuant tothecooperation agreements concluded between theWTO and
theseOrganizations andagreed toinvite UNCTAD toattend itsfuture meetings. TheWorking Group
alsoagreed togrant observer status totheOECD, onthebasis thatthere would bereciprocity with
respect toproceedings, documents andother aspects ofobservership. TheWorking Group tooknote
ofaChecklist ofIssues Suggested forStudy prepared bytheChairman, inthelightofthesuggestions
made bydelegations, asabasis fortheorganization ofthefuture work oftheGroup; thisChecklist
isreproduced inAnnex 1tothisreport. TheWorking Group agreed toawork programme formeetings
intheautumn of1997 andthefirstpartof1998, which istobefound atAnnex 2tothisreport.
4. Atthemeeting of16and17September, theWorking Group started itssubstantive discussion
onthefirsttwoareas identified intheChecklist ofIssues Suggested forStudy: (I)therelationship
between theobjectives, principles, concepts, scope andinstruments oftrade andcompetition policy,
1Seedocument WT/L/215WT/WGTCP/W/49
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andtheirrelationship todevelopment andeconomic growth; and(II)stocktaking andanalysis ofexisting
instruments, standards andactivities regarding trade andcompetition policy, including ofexperience
withtheirapplication,takingupinturneachofthethreesub-items,namelynationalcompetitionpolicies,
lawsandinstrumentsastheyrelatetotrade,existingWTOprovisions,andbilateral,regional,plurilateral
andmultilateral agreements andinitiatives. Written submissions oneither orbothofthese areas were
received fromHong Kong China, Hungary, Singapore, Switzerland, Norway, Japan, thePhilippines
onbehalfofASEANWTOMembers,theEuropeanCommunityanditsmemberStates,theUnitedStates,
Peru, Korea, Romania, Australia, Turkey, Pakistan, Canada andMorocco (WT/WGTCP/26-43). The
Working Group hadafurther discussion oftheinformal notebytheSecretariat oncompetition-related
provisions inexisting WTO agreements, noting thatitinnowayrestricted thescope ofissues tobe
examined bytheGroup anddidnotpreclude anyWTO provision from being raised. Inresponse to
arequest, theGroup agreed toinvite SELA toattend itsnextmeeting, asanobserver, onanadhoc
basis.
5. [Additional paragraph tobeinserted based onmeeting tobeheldon27and28November.]WT/WGTCP/W/49
Page3
ANNEX 1
CHECKLIST OFISSUES SUGGESTED FOR STUDY
Non-Paper bytheChair
Revision
Itwaswidely recognized thattheWorking Group 'swork programme should beopen, non-
prejudicial andcapable ofevolution asthework proceeds. Itwasalsoemphasized thatallelements
should bepermeated bythedevelopment dimension. Particular attention should bepaidtothesituation
ofleast-developed countries. Inpursuing theitems ofitswork programme, theWorking Group should
drawuponandavoid unnecessary duplication ofthework ofother WTO bodies concerned withspecific
trade measures aswellasthework under wayinUNCTAD andother organizations.
_______________
I. Relationship between theobjectives, principles, concepts, scope andinstruments oftrade and
competition policy.
Their relationship todevelopment andeconomic growth.
II. Stocktaking andanalysis ofexisting instruments, standards andactivities regarding trade and
competition policy, including ofexperience withtheirapplication:
- national competition policies, lawsandinstruments astheyrelate totrade;
- existing WTO provisions;
- bilateral, regional, plurilateral andmultilateral agreements andinitiatives.
III. Interaction between trade andcompetition policy:
- theimpact ofanti-competitive practices ofenterprises andassociations oninternational
trade;
- theimpact ofstatemonopolies, exclusive rights andregulatory policies oncompetition
andinternational trade;
- therelationship between thetrade-related aspects ofintellectual property rights and
competition policy;
- therelationship between investment andcompetition policy;
- theimpact oftrade policy oncompetition.
IV. Identification ofanyareas thatmaymerit further consideration intheWTO framework.WT/WGTCP/W/49
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ANNEX 2
Work Programme forMeetings, Autumn 1997 andFirstPartof1998
ThefollowingindicativeworkprogrammeidentifiesissuesdrawnfromtheChairman'sChecklist
onwhich theGroup willfocus inparticular ateachofthemeetings inautumn 1997 andthefirstpart
of1998.
16-17 September 1997 Items IandII
27-28 November 1997 Continuation ofItems IandII
Firstmeeting 1998 ItemIII:
- General discussion.
- First bullet point (theimpact ofanti-competitive
practices ofenterprises and associations on
international trade).
Second meeting 1998 ItemIII:
- Second bullet point (theimpact ofstatemonopolies,
exclusive rights andregulatory policies oncompetition
andinternational trade).
- Fifth bullet point (theimpact oftrade policy on
competition).
Third meeting 1998 ItemIII:
- Third bullet point (therelationship between the
trade-related aspects ofintellectual property rights and
competition policy).
- Fourth bullet point (the relationship between
investment andcompetition policy).