International Symposium

Competition Policy and Consumer Interest in the Global Economy

Geneva, 12-13 October 2001

EVENT

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 AGENDA

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THE EVENT

Competition policy is one of the so-called new issues that may be on the agenda for a new round of trade talks at the WTO. In this context, it is extremely useful that policy-makers, trade negotiators, members of civil society and other stakeholders understand the pros and cons of the issue so that they are able to adopt appropriate strategies not only domestically but also in the imminent international negotiations.

Taking place just one month before the fourth WTO Ministerial Conference in Doha, Qatar, this symposium will be well placed to debate important (and even controversial) issues related to competition policy. In general, there are three types of target audience for the symposium: policy makers, trade-negotiators and civil society including consumer organisations. Participants would be from all parts of the world and they are expected to represent varied viewpoints on the subject matter.

Objectives:

The objectives of the Symposium were:  

• to bring together trade negotiators, policy-makers, practitioners and civil society representatives reflecting a range of opinions to encourage discussion and debate.

•  to facilitate meaningful debate through the use of case studies.

• to prepare an advocacy document based on the discussion.

The Symposium had begin with presentations on the main contours of a national competition policy. It would also address the fundamental question as to whether a country really needs a competition law or not. Case studies from countries such as Malaysia, Nepal and Hong Kong (China) will illuminate the debate.

The Symposium will examine the objections to competition policy that are held by policy-makers and the public in developing countries. It also focuses on the emerging challenges to the globalising economy and suggests possible solutions at bilateral and regional level.

Issue Specific Sessions: 

• Competition law and policy

• Competition challenges in the global economy

• Promoting competition without having a Competition Law

• Meeting the challenges of cooperation arrangements: Developing Country’s Experiences

• Meeting the challenges-Is there a need for a Multilateral Competition Arrangement?                  

• Multilateral competition policy at the WTO?

Participants

Experts drawn from intergovernmental organisations, diplomatic missions, governments, academia and consumer organisations had joined the gathering. An audience from government, industry, NGOs and academia, drawn from different parts of the world were also present.  

Venue: WMO, Geneva,

Strengthen consumers to fight anti-competitive abuses, cartels

Geneva, 13th October 2001

A strong consumer movement is essential for a healthy competition culture, according to delegates at an international symposium on competition policy and consumer interest in the global economy that took place in Geneva on October 12 and 13.

Representatives of consumer organisations worldwide, from rich, poor and poorest countries - from Bolivia and Malawi to Bangladesh and Zambia, from the United Kingdom and Canada to India and Malaysia, Poland and Slovenia - gathered with competition experts and trade negotiators at the event. Overall, more than 70 delegates from 35 countries were represented at the highly interactive meeting. 

The meeting was organised by the Consumer Unity & Trust Society (CUTS), an India-based NGO, and supported by the Canada-based International Development Research Centre (IDRC). Experts from the WTO, UNCTAD, European Commission, Commonwealth Secretariat, the SAARC, and various country delegations deliberated with the participants on a variety of issues. 

“Developing countries have been jumping out of the frying pan into the fire by privatising before putting in place independent regulatory regimes, which is bad for both consumers and investors,” said Pradeep S. Mehta, Secretary General of CUTS. “Consumers, especially the poor, suffer when prices go up while companies underinvest because of the unpredictable legal environment.”

The meeting noted that effective competition and consumer protection policies are essential to achieve fair markets and consumer welfare. Developing countries need assistance from developed countries to build capacity in this area and achieve their national social and economic objectives. Delegates cautioned that the assistance should bear in mind that the poor countries often learn from each other better than they can from rich countries. 

Consumers all over the world, in both rich and poor countries, are robbed of billions of dollars each year by cartels and over-charging by dominant firms. Competition authorities of developing countries are making efforts to protect their consumers from these abuses. But they will need cooperation from agencies in rich countries, where the cartels are usually located and/or cooked up.     

Experts also agreed that there is no ‘one-size-fits-all’ in competition policy. “An ideal law will fail when you try to put it into practices,” said Prof. Hassan Gemei, Vice President of the National Legal Alliance for Consumer Protection of Egypt, who is also advising the government on trade and competition policy.

It was widely agreed that each country should shape its competition law to meet national economic and social conditions. Small economies can take advantage of the strong competition regimes of their large neighbours or a regional arrangement to overcome their own capacity constraints as Nepal can benefit from the Indian regime, or Fiji from Australia and Trinidad & Tobago from Caricom. 

At the international level, representatives of India and the EU engaged in a lively debate on whether competition should be on the WTO’s agenda. Developing countries have lost faith in the WTO system because of its inherent inequities the way in which rich countries have reneged on their commitments. Rajesh Agarwal, Counsellor at the Permament Mission of India pointed out that most developing countries do not have the information or the experience to define their needs and take part effectively in international negotiations on the issue. 

On the other hand, a multilateral competition agreement may be necessary to combat cross-border competition abuses effectively. Technical assistance to build capabilities on competition issues from the US, EU and others is urgently needed if poor countries are to defend themselves against the powerful firms that are currently exploiting consumers.
 

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 Programme Agenda

Day 1

Friday, 12th October 2001

1400 -1415        Welcome Address

1415-1545         Session 1: Competition Law and policy

Elements and relevance of competition law and policy

Competition law and policy from consumers’ perspective

1545 -1600         Tea/Coffee

1600 -1800        Session 2: Competition challenges in the global economy

International Cartels

Cross-border mergers and acquisitions

Challenges vis-à-vis domestic firms

Day 2

Saturday, 13th October 2001

0900 -1030        Session 3: Promoting competition without having a Competition law

Malaysian experience

Hong Kong (China) experience

What type of competition law do small economies need?

1030 -1100        Tea/Coffee

1100 - 1230       Session 4: Meeting the challenges: Developing countries’ experiences

Bilateral cooperation agreement -- US-Brazil Experience

Regional arrangements -- CARICOM Experience

1230 –1330       Lunch

1330 – 1530      Session 5: Meeting the challenges: Multilateral efforts

Is there a need for a multilateral competition arrangement?

The present state of play at the WTO

1530 –1600       Tea/Coffee

1600 -1730    Rapporteurs presentation

Responding panel

Three members of the audience representing the three target groups (trade negotiators, policy-makers and civil society) give their reactions to the Symposium and reflect on how this has affected their own views. 

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Consumer Unity & Trust Society

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Jaipur  302 016,  India,

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Email: citee@cuts.org