RESTRICTED
WORLD TRADE WT/WGTCP/W/13
25June1997
ORGANIZATION(97-2610)
Original: Spanish Working Group ontheInteraction
between Trade andCompetition Policy
PROPOSAL BYMEXICO ONISSUES TOBEANALYSED
BYTHE WORKING GROUP ONTHE INTERACTION
BETWEEN TRADE AND COMPETITION POLICY
Pursuant tothemandate intheSingapore Ministerial Declaration fortheestablishment ofa
WTOWorkingGroupontheinteractionbetweentradeandcompetitionpolicy,includinganti-competitive
practices, Mexico considers that,broadly speaking, theGroup should tackle itswork withaglobal
approach embracing andtaking intoaccount thevarious objectives andinterests ofallMembers.
Specifically, inMexico 'sviewtheissues thattheWorking Group should analyse include thefollowing:
1. Convergence anddivergence inexisting competition lawsandpolicies
AfirststepfortheWorking Group should betostudy theexisting areas ofconvergence and
divergence inthevarious competition laws/policies ofthose Members which haveadopted them. This
study willenable theWorking Party toidentify common elements inthevarious competition
laws/policies. Tofacilitate thiswork theWTO Working Group should draw onthestudies already
carried outinvarious international forums andbodies suchasUNCTAD, FTAA andtheOECD.
Once these common elements havebeenidentified, theWorking Group willhavetostudy the
possibility ofdeveloping amultilateral framework ordiscipline oncompetition toestablish thebasic
principles andstandards. After these havebeenagreed, Members would havetoadopt them intheir
respective competition legislation/policies (e.g.banonexport cartels; merger notification procedures;
territorial application ofdomestic law,etc.), inorder toavoid theharmful effects oninternational trade
andtheinternational conflicts arising outofexisting differences innational competition policies and
lawenforcement.
2. Effects ofcompetition policy onmarket access
Whenstudyingtheexistingelementsofconvergenceanddivergenceincompetitionlaws/policies
ofMembers, theWorking Group should alsoidentify andanalyse thevarious factors ofcompetition
policies andtheirinteraction withother national policies impacting market access, suchas:
(a) Thefieldofapplication andscope ofMembers 'competition laws/policies, including:
- Analysis ofobjectives inorder todetermine whether thevarious competition
laws/policies include aregime forState aidorareconfined tocountering
anti-competitive private practices (antitrust concept);
- analysis ofexceptions totheapplication ofcompetition laws/policies and
application ofcompetition laws/policies toState enterprises oractivities;
./.WT/WGTCP/W/13
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- degree ofefficiency intheenforcement ofcompetition laws/policies, taking
intoaccount theprinciples oftransparency, non-discrimination andnational
treatment; aswellasthecriteria foranalysing thevarious practices (vertical,
horizontal, dominant position, mergers) andthelevelofsanctions applicable
ineachcountry.
(b) therelationship existing between competition policies andothertradepolicy instruments
(such astheimposition ofanti-dumping duties) aswellasvarious factors ofintellectual
property, investment andindustrial policies;
(c) theroleofcompetition laws/policies intheeconomic deregulation processes insome
major economic sectors (telecommunications, transport etc.) andtheeffects of
deregulation oncompetition inthose sectors.
3. Adoption andenforcement ofcompetition laws
Itshould bekeptinmindthataconsiderable number ofWTO Members donothavecompetition
lawsorpolicies, while others havenotonlywell-established lawsandpolicies butalsolongexperience
inimplementing them. Hence, itisessential tostudy theviability ofallMembers adopting andenforcing
them, taking particular account oftheneeds ofdeveloping countries thatdonotyethavecompetition
laws/authorities, aswellasthepossibilities ofestablishing technical assistance andcooperation
mechanisms tofacilitate theirrapid adoption andefficient administration.
4. International cooperation mechanisms toimprove coherence between competition policy and
trade policy
TheWorking Group should study thevarious means available for:
(a) Strengthening andextending multilaterally orplurilaterally, asthecasemaybe,the
principlesofcooperationandnegative/positivecomityfortheenforcementofcompetition
laws; aswellastheinstruments ofinternational cooperation fortheexchange of
information, taking intoaccount existing bilateral agreements inorder toavoid the
extraterritorial application ofcompetition laws;
(b) minimizing theanti-competitive effects ofvarious trade policy instruments on
competition, including laws onunfair practices. Inthisconnection itwould be
recommendable fortheGroup totakeintoaccount various advances made withrespect
totrade andcompetition inthenegotiation ofsome regional trade agreements;
(c) thepossibilityorviabilityofestablishingconsultationanddisputesettlementmechanisms
intheWTO toensure theadoption andimplementation ofthebasic principles and
standards thatmaybeagreed byMembers forregulating competition ineachcountry.