WORLD TRADE
ORGANIZATIONWT/WGTCP/W/181
17 April 2002
(02-2127)
Working Group on the Interaction
between Trade and Competition PolicyOriginal:  English
COMMUNICATION FROM ROMANIA
The following communication, dated 5 April 2002, has been received from the Permanent
Mission of Romania with the request that it be circulated to Members.
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Capacity building and technical assistance – challenges facing competition authorities
The 21st century:  both rich and poor countries face the new challenge of globalization – a
changing economic environment when know-how and information replace labour and even capital, as
sources of competitiveness.
Globalization has increased the need for closer cooperation between the nations, on the one
hand, and between the regional and international orga nizations with key roles in the formulation and
implementation of different elements of the framework for global economic policy, on the other hand.
Lester Thurow, in his book "Head to Head"1 - a "masterful economic analysis that policy
making ought to consider" - made a realistic picture of the present economic world: "In the economiccontest that lies ahead, the word is not divided in to friend and foe.  The game is simultaneously
competitive and cooperative.  One can remain friends and allies, yet still want to win".
Identifying mechanisms designed to foster coherence in global economic policy-making is the
aim of negotiations within most economic organizations.
The WTO Doha Ministerial Conference joined those efforts.  A very short and fast record of
their debates shows that its results are largely satisfactory for the WTO members, both developed and
developing countries.  The Work Programme for Development adopted through the Doha Declaration
opens new ways for WTO actions for a deep and strong contribution to world economic growth,employment and alleviation of poverty and, thus to global governance and sustainable development.
It is time to answer the new challenge: to find a system that could both regulate and liberalize,
a system that permits fair and sustainable development and that provides for inter-connections:
between governments, markets and civil society.
Romania is a developing country that builds a market economy and promotes commercial and
economic policies connected to contemporary realities and challenges.  The strategies and policies of
the Romanian government fasten our economy to the international economic system and aim, over the
long term, to contribute, through regional and global co-operation, to fulfil its objectives.
                                                     
1 Lester Thurow, “Head to Head”, Ed. Warner Books, 1993WT/WGTCP/W/181
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The Romanian Competition Council follows, as concerns the establishment of a coherent
legislative framework and also its effective enforcement, the economic national strategy and,
particularly, the efforts to comply with economic performance criteria and European social standards
in order to build a functioning market economy and to prove its capacity to cope with competitivepressures and international market forces.
Effective competition policies and regulatory mechanisms are an important part of the
governance framework of states.  A basic fram ework of law enabling economic agents to act
according to a competitive environment is not enou gh.  Competition is what completes it.  In the
absence of an explicit competition policy, there is a real risk that the competition process might be
obstructed or distorted by the actions of private parties or by the State itself.
Furthermore, competition policy contributes greatly to advancing not only the national
economy but also the global economy as a whole.  It is a necessity for all, including developing
countries.  It is the moment to reaffirm and welcome two results of the WTO Doha Ministerial
Conference:
- including the needs and interests of developing countries at the heart of the Work Programme
adopted in the Ministerial Declaration and more, the full inclusion of developing countries into
the WTO and its decision-making process as a mean of integration into the global economy;
- recognizing the need for a multilateral framewor k to enhance the contribution of competition
policy to international trade and development and also, the need for enhanced technical assistance
and capacity-building in this area.
The necessity to strengthen co-operation and political dialogue between developed and
developing countries is not a purpose but a fact under the present conditions of markets.  We must
underline the recognition of the needs of developing and least-developed countries for enhanced
support for technical assistance and capacity building in all areas, and particularly in the competition
field, including policy analysis and development so that they may better evaluate the implications of
closer multilateral cooperation for their development policies and objectives, and human and
institutional development.
This is the reality that countries are facing when they attempt to adopt competition law for the
first time, which requires technical assistance.  It is a big challenge to build trust in market forces and
to promote the perception that competition policy contributes to sustainable economic development.
When countries with successful experiences in oper ating competition law join these efforts and share
their experiences and know-how, the effort is much  easier.  The same holds true for designing a
framework of competition policy that is suitable for each country’s specific economic situation.  In
this context, technical assistance is important not only for capacity building of countries that have
competition laws in place, but also for developing  countries that have yet to introduce competition
laws.  Depending on the specific requirements of the recipient country, two levels of technical
assistance activities could be identified.  The first level involves the discussion of theory and modelsfor competition law and policy while the second level involves providing assistance beyond this
theoretical level, toward assistance in the implementation of competition laws, the conduct of
investigations, market definition, and the institution compliance mechanisms, identifying and setting
priorities and designing an effective strategy.
Under the technical assistance programs the developed countries make available their
resources and expertise in competition law enforcement, consumer protection and public utilities
regulation.  The programs have to strengthen their capacity to engage in global and regional tradingWT/WGTCP/W/181
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arrangements and to encourage the exploitation of trade opportunities in order to achieve sustainable
development, economic growth and the reduction of poverty.
Technical assistance is only one of the various forms of international co-operation and it is
important to note the aid programs are more efficient if they promote as a priority the effectivepartnerships between the grantor and the beneficiary.
The experiences of different countries that recently adopted and implemented competition
legislation could serve as useful reference for countries that are in the process of drafting competition
laws or at the initial stage of enforcement.
Economic realities are raising new problems before competition authorities.  In this context,
sharing experience from one group of countries to another it is not sufficient; new decisions and
initiatives are required.  The competition authorities’ interaction by exchange of information on real
cases is extremely important for a common approach and will contribute to reduction of
administrative barriers.  The increased interaction be tween competition authorities could be facilitated
by concluding of bilateral or regional agreements that regulate a concrete procedure.
The diversity of companies’ behaviour and the complexity of the relations established on
international markets are raising new arguments for international co-operation in the competition area.
Even when national competition law is effectively enforced, it covers only acts and actions of
companies and sometimes – regulatory bodies, but it does not touch the international activity ofgovernments, which may also have anti-competitive character.  Competition authorities are not often
involved in the process of such decision-making and thus may not influence such processes.
An active participation in elaborating common approaches for competition policy and co-
operation on real cases between the competition authorities will enhance the contribution ofcompetition policy to international trade and development.
In this context, it must be mentioned the activities of the Global Forum for Competition as
well as International the Competition Network that make international co-operation between
authorities from different countries  more effective.  It is also important to improve the cooperation
between the countries under various intergover nmental organizations, including UNCTAD, and
through appropriate regional and bilateral channels.
CONCLUSIONS
Over longer term, the economic environment has to change in the direction of better
functioning and more fluid markets.
Competition policy encompasses economic regulation, privatization, antitrust laws and
international trade.  The application of these policies, and the interface between these and other
related policies have a significant influence on industrial structure, business behaviour and,
consequently, on economic performance.  It may also foster more flexible and dynamic environments
that enable countries to respond more effectively to changing market conditions.
Competition issues have become international issues because anti-competitive practices are
increasingly international in nature.
Through the simultaneous enforcement of presented co-operation initiatives, the way for
effective regulation of competition at the international scale and for promotion of a competition
culture around the globe is opened.  Effective regulation is possible on the basis of multilateral agreedWT/WGTCP/W/181
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mechanisms.  The issue of elaboration of the multilateral framework on competition in the WTO was
widely discussed for the long time and it is now under preparation.
For reaching these objectives and for obtaining the expected results the developed countries,
the international organizations must better integrate the developing countries into the internationaleconomic system.  Consequently, it is important to have in view and act continuously in accordance
with the commitments  concerning technical assistance and capacity building of the developing
countries.  These require a close co-ordination between the organization donors (WTO, UNCTAD,
World Bank) as well as between the bilateral national donors.
The fundamental objective of technical cooperation is to assist recipient countries in their
understanding and implementation of agreed intern ational economic rules, in achieving their full
participation in the multilateral trading system and in ensuring a lasting structural impact on the
recipient country, by directing all instruments towards human resource development and institutional
capacity building.
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