RESTRICTED
WORLD TRADE WT/WGTCP/W/17
4July1997
ORGANIZATION(97-2801)
Original: English Working Group ontheInteraction
between Trade andCompetition Policy
COMMUNICATION FROM UNCTAD
Background
UNCTAD, withitsuniversal membership, hasalways emphasized theintegral linkage between
trade anddevelopment. Asonekeyaspect ofthislinkage, UNCTAD promoted theprinciple -now
partandparcel oftherulesoftheinternational trading system -ofpreferential orspecial anddifferential
treatment fordeveloping countries andespecially forleastdeveloped countries. Trade liberalization
isinitselfprocompetitive. Theintegration ofspecial anddifferential treatment intrade rulesreflects
aconsensus thatitwould beunfair andinequitable toapply equal rulestounequal actors inthegame
ofglobal competition.
Inthespecific fieldofcompetition lawandpolicy, theUnited Nations SetofMultilaterally
Agreed Equitable Principles andRules fortheControl ofRestrictive Business Practices (theUNSet)
similarly reflects thislinkage between tradeanddevelopment, including byincorporating theprinciple
ofpreferentialtreatmentfordevelopingcountries.TheSet,whichisthesolefullymultilateralinstrument
inthisfield, wasnegotiated andisimplemented under theauspices ofUNCTAD. Itisintheform
ofarecommendation toStates, andwasunanimously adopted byGeneral Assembly Resolution 35/63
of5December 1980. Itscontinuing relevance wasreaffirmed bythethreesuccessive UNConferences
toReview AllAspects oftheSetthattookplace in1985, 1990 and1995 respectively.
Theobjectives oftheSet
TheSet'sprimary objective istoensure thatRBPs donotimpede ornegate therealization
ofbenefits thatshould arisefromtheliberalization oftariffandnon-tariff barriers affecting world trade,
particularly those affecting thetrade anddevelopment ofdeveloping countries. Italsoseeks toattain
greater efficiency ininternational trade anddevelopment through, interalia,promoting competition,
control ofconcentration ofeconomic power andencouragement ofinnovation. Moreover, itaimsat
protecting andpromoting social welfare ingeneral and,inparticular, theinterests ofconsumers. As
canbeseen, these objectives areofdirect relevance totheinternational trading system.
Thescope andmeans ofapplication oftheSet
TheSetisuniversally applicable toallenterprises, allcountries, allregional groupings (to
theextent thattheyhavecompetence inthisarea)andalltransactions ingoods andservices. However,
itisalsostipulated insection B.9oftheSetthatit"shall notapply tointergovernmental agreements,
nortoRBPs directly caused bysuchagreements". Given thevoluntary nature oftheSet,itmustbe
noted thatitsapplication andimplementation depend uponthewillingness ofStates which haveaccepted
theSettomeettheircommitment toit.Moreover, itisstipulated inparagraph G.4oftheSetthat,
intheperformance ofitsfunctions, neither theIntergovernmental Group ofExperts onRestrictive
Business Practices, established inUNCTAD toprovide theinstitutional machinery fortheSet,nor
itssubsidiary organs "shall actlikeatribunal orotherwise passjudgement ontheactivities orconduct
ofindividualgovernmentsorofindividualenterprisesinconnectionwithaspecificbusinesstransaction".WT/WGTCP/W/17
Page2
Thecoreprovisions oftheSet
(a) Principles andRules forenterprises, including transnational corporations
Withrespect toenterprise behaviour, paragraph D.1oftheSetstates that"enterprises should
conform totherestrictive business practices lawsandtheprovisions concerning restrictive business
practices inthelawsofthecountries inwhich theyoperate and,intheevent ofproceedings under
theselaws, should besubject tothecompetence ofthecourts andrelevant administrative bodies therein".
Paragraphs 3and4ofsection Ddealrespectively withtwomaintypes ofRBPs thatenterprises
should refrain from namely, horizontal restraints andabuses ofdominant position. With respect to
horizontalpractices,paragraphD.3providesthatenterprisesshouldrefrainfromprice-fixingagreements,
including astoexports andimports; collusive tendering; market orcustomer allocation arrangements;
allocation ofsalesandproduction quotas; collective action toenforce arrangements, e.g.byconcerted
refusals todeal; concerted refusal ofsupplies topotential importers; andcollective denial ofaccess
toanarrangement, orassociation, which iscrucial tocompetition. However, thisdoesnotapply to
intra-firm transactions, when enterprises deal"with eachother inthecontext ofaneconomic entity
wherein theyareunder common control, including through ownership, orotherwise notabletoact
independently ofeachother".
Paragraph D.4provides thatenterprises should refrain from practices which "limit access to
markets orotherwise unduly restrain competition" through "anabuse oracquisition andabuse ofa
dominant position ofmarket power". Abuses maybecommitted through suchpractices aspredatory
behaviour towards competitors; "discriminatory (i.e.unjustifiably differentiated) pricing orterms or
conditions"; including bymeans oftheuseoftransfer pricing policies intransactions between affiliated
enterprises; mergers, jointventures andother acquisitions ofcontrol; andcertain vertical practices,
namely, fixing theprices atwhich goods exported mayberesold inimporting countries, restrictions
uponparallel imports oftrademarked goods and,when notforensuring legitimate business purposes,
refusals todeal, exclusive dealing, restrictions upon resale orexport andtying restraints.
(b) Action byStates atnational, regional andsubregional levels: competition legislation and
cooperation between national competition authorities
Inorder forStates tobeabletotakeeffective action against RBPs, theSetcallsfortheadoption,
improvement andeffective enforcement ofappropriate legislation andtheimplementation ofjudicial
andadministrative procedures. Inthisconnection, continued work isalsoprescribed within UNCTAD
ontheelaboration ofamodel laworlawsonRBPs inorder toassist developing countries indevising
appropriatelegislation.UNCTADandotherrelevantorganizationsoftheUnitedNationssystemworking
inconjunctionwithUNCTADarealsotoprovidetechnicalassistance,advisoryandtrainingprogrammes
forthispurpose.
TheSetprovides that,intheircontrol ofRBPs, States should ensure fair,equitable andnon-
discriminatory treatment ofenterprise, follow established legal procedures, ensure transparency of
legislation, andrespect theconfidentiality ofbusiness information. Inorder tofacilitate thecontrol
ofRBPs byStates, theSetcallsfortheinstitution ofimproved procedures atthenational level for
obtaining information from enterprises, including transnational corporations, andtheestablishment
ofappropriate mechanisms attheregional andsubregional levels topromote exchange ofinformation
onRBPs andmutual assistance inthisarea. Paragraph E.4provides that"States should seekappropriate
remedial orpreventive measures toprevent and/or control theuseofrestrictive business practices within
theircompetence when itcomes totheirattention thatsuchpractices adversely affect international trade,
andparticularly thetrade anddevelopment ofdeveloping countries". Paragraph E.8provides that
"States withgreater expertise intheoperation ofsystems forthecontrol ofrestrictive business practices"WT/WGTCP/W/17
Page3
should, onrequest share theirexperience with, orotherwise provide technical assistance to,otherStates
wishing todevelop orimprove suchsystems. Finally, paragraph E.9provides thatStates should "on
request, orattheir owninitiative when theneed comes totheirattention, supply toother States,
particularly developing countries, publicly available information and,totheextent consistent withtheir
lawsandestablished public policy, other information necessary tothereceiving interested State for
itseffective control ofrestrictive business practices".
Action attheinternational level
Thisincludes inparticular theestablishment ofconsultation procedures whereby aStatemay
request aconsultation withother States inregard toissues concerning thecontrol ofRBPs. Inthis
connection, theStates involved mayrequest theSecretary-General ofUNCTAD toprovide mutually
agreed conference facilities forsuchconsultations. Action attheinternational levelbyUNCTAD also
includes technical assistance programmes andwork bytheIntergovernmental Group ofExperts on
Restrictive Business Practices. Iwillprovide details ofthiswork below.
Preferential ordifferential treatment ofdeveloping countries
Asindicated above, thedevelopment dimension isreflected innumerous provisions oftheSet.
Inaddition, theSetcontains aspecific provision providing for"preferential ordifferential treatment
fordeveloping countries". Section C,paragraph 7,provides that"inorder toensure theequitable
application oftheSetofPrinciples andRules, States, particularly developed countries, should take
intoaccount intheircontrol ofrestrictive business practices thedevelopment, financial andtradeneeds
ofdeveloping countries, inparticular oftheleastdeveloped countries, forthepurposes especially of
developing countries in:(a)promoting theestablishment ordevelopment ofdomestic industries and
theeconomic development ofother sectors oftheeconomy, and(b)encouraging their economic
development through regional orglobal arrangements among developing countries.
UNCTAD 'SWORK ONCOMPETITION LAW AND POLICY
Asforeseen intheSetitself (section G,International Institutional Machinery), an
IntergovernmentalGroupofExpertsonRestrictiveBusinessPracticeswasestablishedin1981,toprovide
aforum andmodalities formultilateral consultations, discussions andexchange ofviews between States
onmatters related totheSetandtoundertake anddisseminate periodically studies andresearch on
RBPs. TheIGEhasrecently beenrenamed Expert Meeting orIntergovernmental Group ofExperts
(IGE) onCompetition LawandPolicy. TheExpert Meeting, ateachofitsannual sessions, holds
consultations among States onspecific competition issues ofinterest tothem. TheUNCTAD secretariat
hasprepared studies forconsideration bytheExpert Group onsuchissues, forexample, astherole
ofcompetition policy ineconomic reform indeveloping andother countries, oronthescope, coverage
andenforcement ofcompetition lawsandpolicies andanalysis oftheprovisions oftheUruguay Round
Agreements relevant tocompetition policy, including their implications fordeveloping andother
countries. Acomprehensive listofthestudies published byUNCTAD isattached inAnnex Itothis
statement. TheIGEhasalsocontinued torefine themodel lawoncompetition anditscommentary,
which reviews theapproaches followed inthisareabydifferent countries. TheIGEalsomonitors
UNCTAD 'stechnical cooperation activities intheareaofcompetition lawandpolicy.
Since 1986, UNCTAD 'stechnical assistance, advisory andtraining programmes onrestrictive
business practices andcompetition policy haveexpanded considerably (seeAnnex II).Themaintypes
oftechnical cooperation activities undertaken byUNCTAD inimplementation oftheSetcanbe
characterized asfollows:WT/WGTCP/W/17
Page4
(a) States without anycompetition legislation mayrequest information about restrictive
business practices, theirexistence andpossible adverse effects ontheireconomy. This
mayinvolve astudy oftherestrictive business practices intheireconomy;
(b) States without legislation inthisfieldmayrequest introductory seminars directed at
anaudiencewhichwouldincludegovernmentofficialsandacademics,aswellasbusiness
andconsumer-oriented circles; UNCTAD organizes numerous seminars ofthistype
every year, upon request;
(c) States which areintheprocess ofdrafting competition legislation mayrequest
information onsuchlegislation inother countries, andseekadvice astodrafting their
competition legislation. AscanbeseeninAnnex II,numerous advisory activities take
place inthisrespect;
(d) States which havejustadopted competition legislation mayseekappropriate advice
forthesetting-up ofthecompetition authority; thisusually includes training ofofficials
responsible fortheactual control ofRBPs, andmayinvolve training workshops and/or
on-the-job training withcompetition authorities incountries having experience inthe
fieldofcompetition;
(e) States which havealready adopted suchlegislation andhaveexperience inthecontrol
ofRBPs maywishtoconsult eachother onspecific cases andexchange information;
seminars maybeorganized forsuchexchanges between competition authorities;
(f) States which wishtorevise theircompetition legislation might seekexpert advice from
competition authorities inother States, soastoamend theirlawsinthemosteffective
manner possible;
(g) Inaddition, anumber ofcountries haveaccepted UNCTAD requests totrainforeign
competition officials atthepremises oftheircompetition authorities. Suchexchanges
ofpersonnel,althoughtime-consuminganddifficulttoorganize-sometimesforlanguage
orconfidentialityreasons-mightbeoneofthemosteffectivewaysofon-the-jobtraining
forofficials ofrecently established competition authorities.
Asalready mentioned, five-yearly conferences havebeenheldtoreview theapplication ofthe
Set.TheThird Review Conference (13-21 November 1995) adopted aresolution (seeAnnex III),in
which itestablished acomprehensive work programme forUNCTAD inthefieldofcompetition law
andpolicy,affirmedthefundamentalroleofcompetitionlawandpolicyforsoundeconomicdevelopment
andrecommended thecontinuation ofthe"important anduseful work programme within UNCTAD 's
intergovernmental machinery thataddresses competition lawandpolicy issues, andproceeds withthe
active support andparticipation ofcompetition lawandpolicy authorities ofmember countries
(paragraph 13oftheresolution). Itfurther recommended totheGeneral Assembly tochange thename
oftheIntergovernmental Group ofExperts onRestrictive Business Practices tothatofIntergovernmental
Group ofExperts onCompetition LawandPolicy andtoconvene aFourth Review Conference inthe
year2000.
Meeting sixmonths later, theUNCTAD IXConference, initsMidrand Declaration anda
Partnership forDevelopment, confirmed thatUNCTAD 'swork inthisareashould focus upon:
"Examining issues related tocompetition lawofparticular relevance todevelopment:
continuinganalyticalworkonrestrictivebusinesspractices;assistingthesecountriestoformulate
competition policies andlegislation; institution-building; focusing onAfrica byholding aWT/WGTCP/W/17
Page5
regional meeting, creating relevant inventories anddatabases, andestablishing atechnical
cooperation programme".
Since then, UNCTAD heldafirstExpert Meeting onCompetition Law andPolicy in
October 1996, which continued thework oftheIGEonRestrictive Business Practices, andfollowed
themomentum achieved attheThird Review Conference. Afurther Expert Meeting onCompetition
LawandPolicy isscheduled totakeplace on24-26 November 1997, back-to-back withtheWTO
Working Group ontheInteraction between Trade andCompetition Policy.
Atthatmeeting, theExperts areexpected toreview technical cooperation activities inthefield
ofcompetition lawandpolicy andtoexamine afirstdraftbythesecretariat, ofanewstudy on"empirical
evidence ofthebenefits (including thebenefits forconsumers) tobegained bydeveloping andleast
developed countries andcountries transition from applying competition lawandpolicy principles to
economic development inorder toattain greater efficiency ininternational trade anddevelopment".
Further, thenextmeeting willholdspecific consultations, covering thefollowing subjects:
(a) non-price vertical restraints (selective distribution, exclusive dealing andfranchising);
(b) waysandmeans ofpromoting acompetition culture andmaking transparent thebenefits
tobederived from competition policy;
(c) international aspects ofcompetition andtheproblems forcompetition lawenforcement,
including international mergers andindustrial concentration which affect othercountries
andthestrengthening ofinternational cooperation.
Twoforthcoming activities inUNCTAD related tocompetition lawandpolicy should be
mentioned:
- TheWorld Investment Report 1997willfocus thisyearontheinterrelationship between
investment andcompetition policy; and
- TheHigh-Level Segment oftheTrade andDevelopment Board, on23October 1997,
willbedevoted tothetheme of"Globalization, Competition, Competitiveness and
Development" andinthisrespect, examine theconditions necessary forsuccess offirms
ofdeveloping countries intheworld markets, including theneed foreffective
competition lawandpolicy.
Inconclusion, wewould suggest that,inyourdiscussions relating toapossible multilateral
framework ontrade-related aspects ofcompetition policy, youmaywish, asappropriate, totakeinto
account anddraw upontheprovisions oftheSetofPrinciples andRules, anduponUNCTAD 'swork
inthisareaofcompetition. Wepledge ourfullcooperation inyourendeavours.WT/WGTCP/W/17
Page6
ANNEX
UNCTAD ’sACTIVITIES RELEVANT TO
THE INTERACTION BETWEEN TRADE
AND COMPETITION POLICY
Statement before thefirstsession oftheWTO Working Group
ontheInteraction between Trade andCompetition Policy
(Geneva, 7-8July1997)
by
Philippe R.Brusick
Chief, Competition LawandPolicy andConsumer Protection Section
Division onInternational Trade inGoods andServices andCommodities
UNCTAD
Palais desNations, Room E.8052
CH1211 -Geneva 10
Telephone: (4122) 9075671
Fax:(4122) 9070044
E-mail: philippe.Brusick@unctad.orgWT/WGTCP/W/17
Page7
Listofselected UNCTAD publications
1981
TD/RBP/CONF/10/Rev.1 TheSetofMultilaterallyAgreedEquitablePrinciplesandRules
fortheControl ofRestrictive Business Practices
TD/B/RBP/2 andAdd.1 and2 Appropriate stepstaken byStates atthenational andregional
levels tomeettheircommitment totheSetofPrinciples and
Rules
TD/B/RBP/5 Elaboration ofamodel lawonrestrictive business practices
TD/B/RBP/6 Exclusive dealing arrangements inanabuse ofadominant
position
TD/B/RBP/9 Annual report 1981onlegislative andother developments in
developed anddeveloping countries inthecontrol ofrestrictive
business practices
UNCTAD/ST/MD/25 Marketing anddistribution arrangements inrespect ofexport
andimport transactions: Structure ofinternational trading
channels
1982
TD/B/RBP/INF.2, 4,5 Restrictive Business Practices Information, Various issues
1983
TD/B/RBP/11 Annual Report 1982onlegislative andother developments in
developed anddeveloping countries inthecontrol ofrestrictive
business practices
TD/B/RBP/13 Theeffects oninternational trade transactions ofrestrictive
business practices intheservices sector byconsulting firms
andother enterprises inrelation tothedesign andmanufacture
ofplant andequipment
TD/B/RBP/14 Steps taken byStates atthenational andregional levels tomeet
theircommitment totheSetofPrinciples andRules
TD/B/RBP/15 Elements forprovisions ofamodel lawonrestrictive business
practices
TD/B/RBP/INF.6-7 Restrictive Business Practices Information: Various issuesWT/WGTCP/W/17
Page8
1984
TD/B/RBP/15/Rev.1 Elements forprovisions ofamodel lawonrestrictive business
practices
TD/B/RBP/19 Restrictive business practices intheservices sector by
consulting firms andother enterprises inrelation tothedesign
andmanufacture ofplant andequipment
TD/B/RBP/22 andAdd.1-3 Replies byStates andregional groupings onstepstaken tomeet
theircommitments totheSetofPrinciples andRules
TD/B/RBP/29 Annual report 1983/84 onlegislative andother developments
indeveloped anddeveloping countries inthecontrol of
restrictive business practices
1985
TD/B/INF.9, 10,12,15 Restrictive Business Practices information: Various issues
TD/B/RBP/12 andRev.1and2 Collusive tendering
TD/RBP/CONF.2/4 Review oftheapplication andimplementation oftheSetand
proposals foritsimprovement andfurther development
1986
TD/B/RBP/INF.16-18 Restrictive Business Practices information: Various issues
TD/RBP/33 Preparations forahandbook onrestrictive business practices
legislation andforarevised draftofamodel laworlawsfor
thecontrol ofrestrictive business practices
1987
TD/B/RBP/39 andAdd.1 Review oftheoperation ofandexperience arising from the
application andimplementation oftheSetofMultilaterally
Agreed Equitable Principles andRules fortheControl of
Restrictive Business Practices
TD/B/RBP/42 Handbook ofrestrictive business practices legislation
TD/B/RBP/INF.19 Restrictive business practices information: Issue No.13
1988
TD/B/RBP/18 andRev.1 and2 Tiedpurchasing practicesWT/WGTCP/W/17
Page9
TD/B/RBP/47 andAdd.1 Review oftheoperation ofandexperience arising from the
application andimplementation oftheSetofMultilaterally
Agreed Equitable Principles andRules fortheControl of
Restrictive Business Practices
TD/B/RBP/48 Activities relating tospecific provisions oftheSetofPrinciples
andRules
TD/B/RBP/49 Handbook onrestrictive business practices legislation
TD/B/RBP/51 Legislative andother developments indeveloped and
developing countries inthecontrol ofrestrictive business
practices (1985-1988)
TD/B/RBP/INF.21 Restrictive business practices information: Issue No.14
1989
TD/B/RBP/58 andAdd.1 Handbook onRestrictive Business Practices Legislation
TD/B/RBP/59 andAdd. 1 Replies byStates andregional groupings onstepstaken tomeet
theircommitment totheSetofPrinciples andRules
TD/B/RBP/60 Activities relating tospecific provisions oftheSetofPrinciples
andRules
TD/B/RBP/61 Annual report 1989onlegislative andother developments in
developedanddevelopingcountriesinthecontrolofRestrictive
Business Practices
TD/B/RBP/INF.23 Restrictive Business Practices information: Issue No.15
1990
TD/B/RBP/69 Comprehensive review oftheimplementation oftheSet
TD/B/RBP/71 Handbook onRestrictive Business Practices Legislation
TD/RBP/CONF.3/3 andAdd.1 Proposals ontransparency andconsultation procedures inthe
fieldofrestrictive business practices
TD/RBP/CONF.3/5 Handbook onRestrictive Business Practices Legislation
1991
TD/B/RBP/81 Revised draftofpossible elements forarticles ofamodel law
orlawsandcommentaries ontheelements
TD/B/RBP/82 Handbook onRestrictive Business Practices LegislationWT/WGTCP/W/17
Page10
UNCTAD/ITP/63 Policies oncompetition andrestrictive business practices in
thePhilippines
UNCTAD/ITP/64 Corporate behaviour inrestraint oftradeingoods andservices
inSriLanka
UNCTAD/ITP/65 Corporate policies intheRepublic ofKorea
UNCTAD/ITP/67 Legislative environment tocorporate policies inthe
United States
UNCTAD/ITP/68 Laapertura comercial enChile: experiencias yperspectivas
1992
TD/B/RBP/81/Rev.1 Continued work ontheelaboration ofamodel laworlawson
restrictive business practices
TD/B/RBP/87 andAdd.1 Handbook onRestrictive Business Practices Legislation
TD/B/RBP/89 andAdd.1 Replies byStates andregional groupings onstepstaken tomeet
theircommitment totheSetofPrinciples andRules
TD/B/RBP/90 Activities relating tospecific provisions oftheSetofPrinciples
andRules
1993
TD/B/RBP/94 Handbook onRestrictive Business Practices Legislation
TD/B/RBP/95 andAdd.1 Replies byStates andregional groupings onstepstaken tomeet
theircommitment totheSetofPrinciples andRules
TD/B/RBP/78 andRev.1and2 Information andconsultation onrestrictive business practices
TD/B/RBP/80 andRev.1 and2 Concentration ofmarket power through mergers, take-overs,
jointventures andother acquisitions ofcontrol, anditseffects
oninternational markets, inparticular themarkets of
developing countries
TD/B/RBP/81/Rev.2 Continued work ontheelaboration ofamodel laworlawson
restrictive business practices
TD/B/RBP/INF.30 Restrictive Business Practices Information Issue No.17
1994
TD/B/RBP/78/Rev.3 andAdd.1 Directory ofRestrictive Business Practices Control AuthoritiesWT/WGTCP/W/17
Page11
TD/B/RBP/96 andRev.1 Study ontheroleofcompetition policy ineconomic reforms
indeveloping andother countries
TD/B/RBP/100 andAdd.1 Replies byStates andregional groupings onstepstaken tomeet
theircommitment totheSetofPrinciples andRules
TD/B/RBP/101 Handbook onRestrictive Business Practices Legislation
TD/B/RBP/81/Rev.3 Continued work ontheelaboration ofamodel laworlawson
restrictive business practices
TD/B/RBP/INF.32 Restrictive Business Practices Information Issue No.18
UNCTAD/ITD/9 Competition andTrade
1995
TD/B/RBP/105 Preparations fortheThird United Nations Conference to
Review AllAspects oftheSetofPrinciples andRules forthe
Control ofRestrictive Business Practices
TD/B/RBP/INF.35 Restrictive business practices information
TD/RBP/CONF.4/2 Theroleofcompetition policy ineconomic reforms in
developing andother countries
TD/RBP/CONF.4/3 Handbook onRestrictive Business Practices Legislation
TD/B/RBP/81/Rev.4 Continued work ontheelaboration ofamodel laworlawson
restrictive business practices
TD/RBP/CONF.4/5 Review of15years ofapplication andimplementation ofthe
Set
TD/RBP/CONF.4/6 Restrictive business practices thathaveaneffect inmore than
onecountry, inparticular developing andothercountries, with
overall conclusions regarding theissues raised bythese cases
TD/RBP/CONF.4/7 Feasibility study ofdeveloping abibliography anddatabase
facility onRBPs
TD/RBP/CONF.4/9 Review ofallaspects oftheSetofMultilaterally Agreed
Equitable Principles andRules
UNCTAD/ITD/11 Competition andtradeinthepost-Uruguay Round period: The
caseoftheRepublic ofKorea
UNCTAD/ITD/12 EconomiccompetitionandRBPs:ThedevelopmentofJamaican
competition legislation
UNCTAD/ITD/15 BasicobjectivesandprovisionsofcompetitionlawsandpoliciesWT/WGTCP/W/17
Page12
TD/B/RBP/81/Rev.4 Continued work ontheelaboration ofamodel laworlawson
restrictive business practices
1996
TD/B/RBP/INF.36 Competition policy andrestrictive business practices
TD/B/RBP/INF.37 Competition policy andlegislation
TD/B/COM.2/2 andAdd.1 Issues related tocompetition lawwithparticular relevance to
development
TD/B/COM.2/EM/2 Thescope, coverage andenforcement ofcompetition lawsand
policies andanalysis oftheprovisions oftheUruguay Round
Agreements relevant tocompetition policy, including their
implications fordeveloping andother countriesWT/WGTCP/W/17
Page13
Annex II
Main technical assistance activities ofUNCTAD inthearea
ofcompetition (1986-1995)
Year Type ofactivity Country(ies) of
participantsForeign experts
from:Location
1986 Regional seminar
forAfricaBotswana
Egypt
Ethiopia
Gambia
Ghana
Kenya
Lesotho
Liberia
Somalia
Swaziland
United Republic
ofTanzania
Zambia
ZimbabweFederal Republic
ofGermany
Norway
SwedenNairobi
(Kenya)
1987 Regional seminar
forAsiaBangladesh
Brunei Darussalam
Myanmar
China
Democratic
People 's
Republic of
Korea
Fiji
India
Islamic Republic
ofIran
Nepal
Papua NewGuinea
Philippines
Republic ofKorea
SriLanka
Thailand
VietNamFederal Republic
ofGermany
Japan
Norway
SwedenBangkok
(Thailand)
1988 NoneWT/WGTCP/W/17
Page14
Year Type ofactivity Country(ies) of
participantsForeign experts
from:Location
1989 Regional seminar
forAfricaAngola
Benin
Burkina Faso
Burundi
Cameroon
Cape Verde
Central African
Republic
Chad
Comoros
Congo
Côted'Ivoire
Djibouti
Equatorial Guinea
Guinea
Madagascar
Mali
Morocco
Mozambique
Niger
Rwanda
SaoTome and
Principe
Senegal
Togo
Tunisia
ZaireFrance
Spain
EECDouala
(Cameroon)
1990
SeptemberRegional seminar
forLatin AmericaBolivia
Brazil
Chile
Cuba
Ecuador
ElSalvador
Guatemala
Honduras
Mexico
Nicaragua
Paraguay
Peru
Trinidad and
Tobago
Uruguay
VenezuelaFederal Republic
ofGermany
Norway
Sweden
United States
ofAmericaCaracas
(Venezuela)
National seminar Cuba Sweden Havana
(Cuba)WT/WGTCP/W/17
Page15
Year Type ofactivity Country(ies) of
participantsForeign experts
from:Location
1991
FebruaryNational seminar Ghana Germany Accra
(Ghana)
March National seminar Zambia Netherlands Lusaka
(Zambia)
June National seminar Indonesia Netherlands
SwedenDjakarta
(Indonesia)
September Subregional
symposium on
competitionBangladesh
China
Fiji
Islamic Republic
ofIran
Myanmar
Philippines
Republic ofKorea
SriLanka
VietNamUnited States
ofAmerica
PhilippinesSeoul
(Republic
ofKorea)
Subregional
seminar/exchange
ofexperienceIndia
SriLanka
ThailandGermany Bangkok
(Thailand)
November Subregional
workshop for
ASEAN countriesBrunei Darussalam
Indonesia
Philippines
ThailandNetherlands
NorwayManila
(Philippines)
1992
MarchAdvisory mission Colombia Bogotá
(Colombia)
Advisory mission Trinidad and
TobagoBogotá
(Colombia)
Advisory services
ondrafting
legislationGhana Germany
United KingdomAccra
(Ghana)
September National seminar China France
Norway
United KingdomBeijing
(China)
National seminar VietNam France
EECHanoi
(Viet Nam)
October National seminar Argentina Germany Buenos
Aires
(Argentina)WT/WGTCP/W/17
Page16
Year Type ofactivity Country(ies) of
participantsForeign experts
from:Location
1993
FebruaryNational seminar
(exchange of
experience)India Germany NewDelhi
(India)
March Subregional seminar ElSalvador
Guatemala
HondurasNorway
SwedenGuatemala
City
(Guatemala)
Subregional seminar Costa Rica
Nicaragua
PanamaNorway
SwedenPanama City
(Panama)
Regional seminar
forCARICOMAntigua and
Barbuda
Bahamas
Barbados
Dominica
Grenada
Guyana
Jamaica
MontserratCanada
Norway
SwedenBridgetown
(Barbados)
June National seminar Egypt Germany Cairo
(Egypt)
1994
JanuaryNational seminar Malaysia Australia
Norway
PakistanKuala
Lumpur
(Malaysia)
February Regional seminar
forFORUM
countriesCook Islands
Fiji
Kiribati
Papua NewGuinea
Solomon Islands
Tonga
SamoaAustralia
Norway
NewZealandSuva (Fiji)
March National seminar China Germany
United KingdomShanghai
Shenzhen
(China)WT/WGTCP/W/17
Page17
Year Type ofactivity Country(ies) of
participantsForeign experts
from:Location
1994
(cont'd)
June World
Bank/UNCTAD
Conference on
Competition Policy
andInternational
TradeChile
Colombia
Peru
Venezuela
MexicoUnited States
ofAmerica
EUBogotá
(Colombia)
Subregional seminar Bahamas
Belize
JamaicaNorway Kingston
(Jamaica)
National seminar Trinidad and
TobagoJamaica
NorwayPortof
Spain
(Trinidad
andTobago)
August National seminar Philippines Germany Manila
(Philippines)
December National seminar Dominican
RepublicNorway
VenezuelaSanto
Domingo
(Dominican
Republic)
National seminar Costa Rica Norway
VenezuelaSanJosé
(Costa Rica)
National seminar Nicaragua Norway Managua
(Nicaragua)
National seminar ElSalvador Norway San
Salvador (El
Salvador)
National seminar Peru Germany Lima (Peru)
1995
JanuaryInternational/
CUTS ConferenceIndia Germany
Pakistan
Philippines
Republic ofKoreaNewDelhi
(India)WT/WGTCP/W/17
Page18
Year Type ofactivity Country(ies) of
participantsForeign experts
from:Location
1995
(Cont 'd)
February National seminar Guatemala Guatemala
City
(Guatemala)
Advisory mission ElSalvador San
Salvador (El
Salvador)
October Regional African
seminarTunisia
Morocco
Egypt
South Africa
Gabon
Mauritania
Kenya
Zambia
ZimbabweFrance
World BankTunis
(Tunisia)
Regional seminar
forLatin America
andtheCaribbeanArgentina
Bolivia
Brazil
Chile
Peru
Colombia
Venezuela
Jamaica
Dominican
Republic
Trinidad and
Tobago
Mexico
Guatemala
ElSalvador
Panama
Costa Rica
NicaraguaWorld Bank Caracas
(Venezuela)
National seminar Bolivia Germany LaPaz
(Bolivia)WT/WGTCP/W/17
Page19
Year Type ofactivity Country(ies) of
participantsForeign experts
from:Location
December National seminar Zambia Kenya
Norway
Pakistan
South Africa
United KingdomLusaka
(Zambia)
Advisory
missionSouth Africa Norway
United KingdomPretoria
(South
Africa)
National seminar Pakistan Germany Islamabad
(Pakistan)
1996
JanuaryAdvisory services Bolivia LaPaz
(Bolivia)
March/
AprilAdvisory services Guatemala Guatemala
City
(Guatemala)
May Advisory services Colombia Bogota
(Colombia)
JuneFirstnational
symposiumMalawi South Africa Lilongwe
(Malawi)
National seminar Honduras Tegucigalpa
(Honduras)
National seminar Costa Rica Germany SanJosé
(Costa Rica)
National seminar Cuba Venezuela
ChileHavana
(Cuba)
August Advisory services Paraguay Asunción
(Paraguay)WT/WGTCP/W/17
Page20
Year Type ofactivity Country(ies) of
participantsForeign experts
from:Location
1996
(cont'd)
SeptemberRegional seminar Rep.ofKorea
Malaysia
Russian
Federation
ThailandWorld Bank
OECDSeoul
(Republic of
Korea)
December Second national
symposiumMalawi United Kingdom Lilongwe
(Malawi)
Advisory services Zambia Lusaka
(Zambia)
1997
FebruaryAdvisory services Mauritius PortLouis
(Mauritius)
National seminar Mauritius United Kingdom
March Advisory services Dominican Rep. Santo
Domingo
(Dominican
Rep.)WT/WGTCP/W/17
Page21
Annex III
RESOLUTION ADOPTED BYTHE REVIEW CONFERENCE1
TheThirdUnitedNationsConferencetoReviewAllAspectsoftheSetofMultilaterallyAgreedEquitable
Principles andRules fortheControl ofRestrictive Business Practices,
Having reviewed allaspects oftheSetofMultilaterally Agreed Equitable Principles andRules
fortheControl ofRestrictive Business Practices, 15years afteritsadoption, andrecognizing thepositive
contributionmadebytheSetandbyIntergovernmentalGroupofExpertsonRestrictiveBusinessPractices
tothepromotion ofcompetition,
Noting especially theradical changes which tookplaceinthedeveloping countries andcountries
intransition inrecent years towards liberalization ofeconomies anddevelopment ofcompetition,
Reaffirming aswelltheresolution onStrengthening theImplementation oftheSetadopted by
theSecondUnitedNationsConferencetoReviewallAspectsoftheSetofMultilaterallyAgreedEquitable
Principles andRules fortheControl ofRestrictive Business Practices,
Taking noteofthedecision taken byUNCTAD VIIIthat"UNCTAD should pursue, through
theIntergovernmentalGroupofExpertsonRestrictiveBusinessPractices,itsworkwithregardtopolicies
andrulesforthecontrol ofRBPs inorder toencourage competition, topromote theproper functioning
ofmarkets andefficient resource allocation, andtobring about further liberalization ofinternational
trade",
Noting thattheagreed annotations totheprovisional agenda fortheninth session oftheUnited
Nations Conference onTrade andDevelopment provide thattheConference should cover theareaof
theinterrelationship between tradeandcompetition policy, andthatpolicy measures willbeconsidered
inanintegrated manner covering theareaoftheinterrelationship between competition andenterprise
development,
Taking intoaccount theproposals contained intheagreed conclusions adopted bythe
Intergovernmental Group ofExperts onRestrictive Business Practices atitsfourteenth session, aswell
astherecommendations made bytheregional African Workshop onCompetition Policy, themeeting
onCompetition Policy inLatin America andtheCaribbean, andthefifthsession oftheInterstate Council
forAnti-monopoly Policies oftheCommonwealth ofIndependent States (CIS) inpreparation forthe
Third Review Conference, andexpressing itsappreciation toallGovernments andorganizations
contributing totheirsuccess,
1. Takes notewithappreciation ofthedocumentation prepared bytheUNCTAD secretariat for
theConferenceandrequeststhesecretariattorevisedocumentsTD/RBP/CONF.4/2,TD/RBP/CONF.4/6,
TD/RBP/CONF.4/7, TD/RBP/CONF.4/8, TD/B/RBP/81/Rev.4, andUNCTAD/ITD/15, inthelight
ofcomments bymember States made attheConference ortobesentinwriting by31January 1996
forsubmission tothenextsession oftheIntergovernmental Group ofExperts;
1Adopted bytheReview Conference atits5th(closing) meeting, on21November 1995.WT/WGTCP/W/17
Page22
2. Takes noteinparticular oftheModel Lawanditscommentary asaguide tothecompetition
approaches followed onvarious points bydifferent countries. Itshould beunderstood thattheModel
Lawanditscommentarydonotaffectthediscretionofcountriestochoosepoliciesconsideredappropriate
forthemselves, andthattheyshould beperiodically reviewed inthelightofreforms andtrends atthe
national andregional levels;
3. Requests theUNCTAD secretariat torevise periodically thecommentary totheModel Law
inthelightoflegislative developments andcomments made bymember States forconsideration by
future sessions oftheIntergovernmental Group ofExperts, andtodisseminate widely theModel Law
anditscommentary asrevised;
4. Further requests theUNCTAD secretariat, taking intoaccount increased needs fortechnical
cooperation andtechnical assistance indeveloping countries, countries intransition andothercountries,
tocarry outareview oftechnical cooperation activities undertaken byUNCTAD andotherinternational
organizations, aswellasStates bilaterally, withaviewtostrengthening itsability toprovide technical
assistance forcapacity building intheareaofcompetition lawandpolicy by:
(a) Encouraging providers andrecipients oftechnical cooperation totakeintoaccount the
results ofthesubstantive work done byUNCTAD intheabove-mentioned areas in
determining thefocus oftheircooperation activities;
(b) Encouraging developing countries andcountries intransition toidentify specific
competition lawandpolicy areas andissues which theywould wishtoseereceive
priority attention intheimplementation oftechnical cooperation activities;
(c) Identifying common problems encountered inthecompetition lawandpolicy areawhich
might receive attention inregional andsubregional seminars;
(d) Enhancing cost-effectiveness, complementarity andcollaboration among providers and
recipients oftechnical cooperation, bothinterms ofthegeographical focus oftechnical
cooperation activities, taking intoaccount thespecial needs ofAfrican countries, and
thenature ofcooperation undertaken;
(e) Preparation andexecution ofnational, regional andsubregional projects ontechnical
cooperation andtraining inthefieldofcompetition lawandpolicy, taking special
account ofthose countries, orsubregions which havenotreceived suchassistance so
far,especially inthefieldoflawdrafting andstafftraining, andenforcement capacity;
(f) Mobilizing resources andwidening thesearch forpotential donors forUNCTAD
technical cooperation inthisarea;
andtoprepare areport thereon forsubmission forconsideration byIntergovernmental Group ofExperts
sessions;
5. Calls uponGovernments tomake efforts toincrease theparticipation ofexperts/representatives
particularly fromdeveloping countries, leastdeveloped countries andcountries intransition, including
those countries which have notyetadopted competition policy orlaws, infuture sessions ofthe
Intergovernmental Group ofExperts, andintheFourth Review Conference ifapproved bytheGeneral
Assembly;
6. Urges intergovernmental organizations andfinancing programmes andagencies toprovide
resources fortheactivities mentioned inparagraphs 4and5above;WT/WGTCP/W/17
Page23
7. Appeals toStates, inparticular developed countries, toincrease voluntary financial contributions
andtoprovide necessary expertise fortheimplementation oftheactivities mentioned inparagraphs 4
and5above;
8. Further requests theUNCTAD secretariat toprepare adraft outline ofapossible study on
empirical evidence ofthebenefits (including benefits forconsumers) tobegained bydeveloping and
leastdeveloped countries andcountries intransition fromapplying competition lawandpolicy principles
toeconomic development inorder toattain greater efficiency ininternational trade anddevelopment,
forsubmission tothenextsession oftheIntergovernmental Group ofExperts;
9. Decides that:
(a) Future Intergovernmental Group ofExperts sessions should include atleastthreedays
forinformalmultilateralconsultationsamongparticipantsoncompetitionlawandpolicy
issues withspecial focus onpractical cases. Countries wishing toparticipate inthe
consultations areencouraged togiveadvance notice oftheirproposed RBPissues, in
ordertomaximizetheopportunitiesforexchangeofviewsandexperienceswithmember
countries. After anunderstanding isreached astothesubject-matter ofthe
consultations, adetailed agenda andtimetable fortheconsultations should be
disseminated bythesecretariat atleastonemonth inadvance ofthesession ofthe
Intergovernmental Group ofExperts soastopermit delegations fromallmember States
toparticipate intheinformal consultations, andthelikelihood ofparticipation inthe
consultations bycompetition experts from allregions should beascertained;
(b) Aspartofsuchconsultations, theIntergovernmental Group ofExperts should undertake
acomprehensive informal exchange ofviews andexperiences ofseveral developed
andother interested countries onissues relating tocases concerning RBPs andother
issues relevant tocompetition which havebeenraised bydeveloping orothercountries;
(c) Alsoaspartofsuchconsultations, theIntergovernmental Group ofExperts should
organize several small workshops atwhich thesecretariat andafewexperts from
developed andother countries would exchange informally views andexperiences with
developing andother countries wishing totakeadvantage ofsuchanexchange ofviews
forthepurpose ofdeveloping theiranalysis ofspecific restrictive business practices
issues inagiven country;
10. Calls upon States tostrive toimplement allprovisions oftheSettoensure itseffective
application;
11. Decides that,inthelightofthestrong worldwide trend towards theadoption orreform of
competition lawsandthedevelopment ofnational competition lawsandpolicies overtheperiod since
theSetwasadopted, theIntergovernmental Group ofExperts should embark onanexercise, upon
request frommember States andincollaboration withnational andregional competition lawandpolicy
authorities, tomapoutandfurther strengthen common ground among States intheareaofcompetition
lawandpolicy inidentifying restrictive business practices thataffect theeconomic development of
countries. Inthiscontext, thefocus oftheexercise, interalia,should beon:
(a) Identifying "common ground", i.e.broad similarities intheapproaches followed on
different competition lawandpolicy questions bygovernments;
(b) Shedding light andencouraging exchanges ofviews inthose areas where the
identification of"common ground" ismore difficult, forexample where there areWT/WGTCP/W/17
Page24
differences among economic theories, oramong competition lawsorpolicies, such
as:
(i) Theroleofcompetition lawandpolicy inthestrengthening andimprovement
oftheeconomies ofdeveloping andother countries and,inparticular, the
development ofthebusiness community;
(ii) Taking intoaccount economic globalization andliberalization oftheeconomies
ofdeveloping andother countries, toidentify appropriate measures tohelp
those countries thatmight behampered byRBPs;
(iii) Theinterface between competition lawandpolicy, technological innovation
andefficiency;
(iv) Thecompetition lawandpolicy treatment ofvertical restraints andabuses of
dominant positions;
(v) Thecompetition policy treatment oftheexercise ofintellectual property rights
(IPRs) andoflicences ofIPRs orknow-how;
(vi) In-depth analysis ofdifferences inthescope ofcompetition lawsandpolicies
inindividual sectors, inthelightoftheprocess ofeconomic globalization and
liberalization;
(vii) In-depth analysis oftheeffectiveness ofenforcement ofcompetition laws,
includingenforcementincasesofRBPshavingeffectsinmorethanonecountry;
12. Invites Governments, during future consultations inmeetings oftheIntergovernmental Group
ofExperts, toclarify thescope orapplication oftheircompetition lawsandpolicies, withaviewto
improving mutual understanding about substantive principles andprocedures ofcompetition lawand
policy, taking intoaccount relevant provisions oftheUruguay Round Agreements. Inthecontext of
thisexercise, Governments maywishtodiscuss:
(a) HowtheSetofPrinciples andRules might bebetter implemented, particularly those
provisions which havenotbeenadequately implemented sofar;
(b) Thecompetition policy implications atthenational, regional andinternational levels
ofglobalization andliberalization;
(c) Techniques andprocedures fordetecting andsanctioning collusive tendering, including
international cartels andother anti-competitive practices;
(d) Thestrengtheningofinformationexchange,consultationsandcooperationinenforcement
atthebilateral, regional andmultilateral levels;
(e) How competition lawsandpolicy should apply toState activities suchasregulation
ofStateenterprises,Statemonopolies,naturalmonopoliesandenterpriseswithexclusive
rights granted bytheState;
13. Affirms thefundamental roleofcompetition lawandpolicy forsound economic development
andrecommends thecontinuation oftheimportant anduseful work programme within UNCTAD 'sWT/WGTCP/W/17
Page25
intergovernmental machinery thataddresses competition lawandpolicy issues, andproceeds withthe
active support andparticipation ofcompetition lawandpolicy authorities ofmember countries;
14. RecommendstotheUnitedNationsGeneralAssemblytochangethetitleoftheIntergovernmental
Group ofExperts onRestrictive Business Practices tothatofIntergovernmental Group ofExperts on
Competition LawandPolicy;
15. Further recommends thattheGeneral Assembly convene aFourth United Nations Conference
ontheSetofMultilaterally Agreed Equitable Principles andRules fortheControl ofRestrictive Business
Practices, tobeheldinGeneva, under UNCTAD auspices, intheyear2000.