WRITTEN QUESTION E-1447/00

by Wolfgang Kreissl-Dörfler (Verts/ALE) to the Commission

(10 May 2000)

Subject: Multilateral competition rules and development

The Commission's draft text on the EU's negotiating position in the Millennium Round calls for a multilateral agreement on competition law, referring to aspects such as cooperation between individual authorities, the establishment of basic principles and minimum standards to govern national competition law, etc.

International competition rules would serve the interests of the developing countries. In the above-mentioned draft text the Commission refers to various forms of assistance for the countries of the South.

1. How are the countries to be supported? Which institutions would make the relevant resources available?

2. What exactly is meant by flexible and special arrangements for the developing countries?

3. Does the Commission see any way of transferring the European competition law model to the international stage?

Answer given by Mr Lamy on behalf of the Commission

(16 June 2000)

1. The Community is proposing an enhanced approach to technical assistance to support developing countries in the competition area. Already at present, a number of technical assistance and capacity building activities are being undertaken. These activities range from studies on the impact of anti-competitive practices on developing countries, assistance in the drafting of competition laws, on-the-job training of developing country competition officials with the competition authorities of developed countries, and establishment and reinforcement of competition authorities.

Technical assistance and capacity building activities are provided by international organisations, in particular the United Nations conference on trade and development (Unctad) and the World Bank, as well as individual countries on a bilateral basis. As for the Community and its Member States, assistance is provided to a number of countries, including through cooperation or association agreements with Latin American and Mediterranean countries. In addition to this, the new partnership agreement between the African, Caribbean and Pacific states and the Community identifies competition as an area for cooperation which includes (mldr) assistance in the drafting of an appropriate legal framework and its administrative enforcement with particular reference to the special situation of the least developed countries(1).

The Community believes that technical assistance and capacity building activities in the competition field should be enhanced and coordinated. A World Trade Organisation (WTO) competition agreement could play a catalytic role in this respect. It should also ensure that competition authorities in developing countries can effectively benefit from cooperation and assistance. A WTO competition policy committee could be an important forum to facilitate participation of developing countries in international cooperation on competition policy.

2. As regards the implementation of a multilateral framework agreement on competition, the Community is proposing an approach based on flexibility and progressivity with respect to developing countries. This would apply both to the timing of the actual introduction or adoption of domestic competition laws as well as the effective enforcement of such laws. In addition to this, flexibility and progressivity should also apply to the issue of sectoral exclusions from the application of domestic competition law, especially where such exclusions are driven by development objectives and have only a minimal impact on international trade.

3. The Community is not envisaging a transposition of the Community competition model to a multilateral framework agreement. A multilateral framework would not lead to harmonisation of domestic competition laws, but rather would set out certain core principles that WTO members would be required to include in their domestic competition laws, if not already available.

(1) See Partnership Agreement between the African Caribbean and Pacific States and the European Community and its Member States, Article 45, paragraph 3.