Call for a multilateral competition regime
Live Mint, October 12, 2016
By Pradeep S
Mehta
Control over the
global food value chain is getting consolidated in fewer
private hands, posing serious security concerns
Four current
multibillion-dollar deals in the agriculture sector are
ringing alarm bells around the world—the takeovers of
Syngenta by ChemChina and of Monsanto by Bayer; and the
mergers between Dow Chemical and DuPont, and between
Potash and Agrium. Consequently, the global agricultural
input market will get further concentrated, which in turn
would have an impact on the global food value chain (GFVC).
After ‘defence’, it is ‘food’ that is the most important
consideration for a nation’s security. Thus, the fact that
control over GFVC is getting consolidated in fewer private
hands could pose serious security concerns. It is
suggested that Brics (Brazil, Russia, India, China, South
Africa) countries should tackle this jointly through a
coordinated competition policy.
The core of
competition law enforcement is ‘economic analysis’, which
in turn is guided by the ‘economic doctrine’ followed by
the enforcing country. While some will emphasize
‘efficiency’ during economic analysis, others may like to
include the ‘public welfare’ angle.
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