ASEAN%20Competition%20Conference

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ASEAN Competition Conference

• 15-16 November 2011, Bali, Indonesia
• The challenges in introducing competition law
  and policy in ASEAN Member States
• Hassan Qaqaya
• UNCTAD
• Hassan.qaqaya_at_unctad.org
• www.unctad.org/competition

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outline

• 1. ASEAN competition regime a regional
  framework in the making
• 2. Five groups of countries
• 3. ASEAN Needs and Challenges
• 4. Key issues for considerations by ASEAN
  countries in the introduction of competition law
  and policy
• 5. UNCTAD technical assistance in preparing a
  competition policy and a law
• 6. An ASEAN cooperative response the needs and
  challenges
• 7. Concluding remarks

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1.

• ASEAN competition regime a regional framework
  in the making
• By adopting the AEC Blueprint in November 2007,
  ASEAN Leaders have committed to  endeavour to
  introduce competition policy in all Member States
  by 2015 
• At the time of the adoption of the AEC Blueprint
  in 2007 Indonesia (1999), Thailand (1999),
  Singapore (2004),Vietnam (2004) had already a
  competition law in place
• Laos 2004 Decree on competition, unfair trade
  practices and price control, New draft in
  progress Cambodia draft law since 2005
• 2010 Malaysia 2011 Philippines Executive order
  no 45 , 2011 DOJ is designated as the Competition
  Authority . Office for Competition responsable
  for duties and functions under the Office of the
  Secretary of Justice
• Brunei (2011) preparartory process launched by
  Prime Minister,
• Mynamar (2011) request for TA

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At least five groups of countries

• Countries with a competition law with actual
  cases of enfoncement
• Countries with a Competition Law and begining
  enforcement
• Countries with a Competition Law but without
  enforcement
• Countries without a competition law but with
  drafts already made and close to adoption
• Countries without a competition law but draft
  laws at various stages
• Others

5
Asian countries Needs and challenges

• Do all Asian countries face the same challenges?
• Does capacity building and technical assistance
  need to be calibrated to suit local
  circumstances?
• What should be the form of delivering capacity
  building and TA?
• How to assess the effectiveness of capacity
  building ? Impact ? Sustainability?

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Key issues for considerations by ASEAN countries
in the introduction of competition law and policy

• Countries have to take into the follwing
  considerations
• The economic circumstances
• The Political and social choices
• The legal environment
• The relative roles of state and private sector in
  the economy
• The policy maker vision of competition policy

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UNCTAD approach to preparing a competition policy
and a law

• Stage One
• Preparation of an economic mapping
• Preparation of a legal inventory of all laws and
  rules having a bearing on competition law and
  policy
• Preparation of a competition policy framework
  report
• Drafting the terms of reference for the scope,
  principles and institutional framework for the
  law
• Layman draft of the competition law
• Internal and external Consultations on the draft
  law

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UNCTAD approach to preparing a competition policy
and a law

• Stage two
• Stakeholders consultative meetings
• Finalisation of the competition bill

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UNCTAD stages of preparing a competition law

• Stage three
• Setting up an institutional framework for
  enforcing the law
• Preparing rules and regulations
• Communication how the agency intends to apply the
  substantive content of the law
• Appointing key staff ( Chief economist, legal
  advisor, etc,,
• Develpoing an advocavy and communication strategy
• Etc.

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The UN Set of Principles on Competition is a
multilateral code addressed to governements and
Multilational enterprises

• UN General Assemly resolution No. 35/63
  (5.12.80)
• Main features
• - Includes among its objectives the development
  dimension
• Non binding norms
• framework for voluntary cooperation including
  case specific consultations
• Exemptions of state action.
• UNCTAD Model law on Competition
• Provision of Technical assistance.

• The UN Set of Principles om Competition Policy
• 1980

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Capacity building in the area of enforcement

• Advocacy
• Cartel investigation
• Merger control
• Anti-competitive agreements
• Abuse of dominance
• Cooperation with sector regulators
• Handling multiple criteria
• Judicial review

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Common challenge Formulation of a competition
Policy

• Priorities have to be defined to formulate
  national competition policies to ensure coherence
  between competition law and other public policies
  and remove unjustified state sponsored cartels
  and monopolies
• increase the level of awareness of the benefits
  of competition for effeciency and consumer
  welfare.
• Develop a phased-in approach where competition
  authorities are not able to cope with
  liberalization to avoid social costs ,
  regulatory  or political capture by firms
• Develop a cooperative response.

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A Cooperative Response

• Competition Authorities have common goals
• Increased informal contacts between competition
  authorities
• Technical consultations competition authorities
  learning from each other
• No one country has all of the answers
• Each competition agency brings unique insight and
  experience based on our own economic development
  experiences
• Competition agencies learn from each other
• Share a common goal competition for the benefit
  of their fellow citizens.
• Develop common pools of expertises and systems of
  knowlegde management at the national, bilateral
  and AESAN level,

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• Forms of capacity building

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Concluding remarks

• Although there is an agreement about the
  fundamental principles of an effective
  Competition agency
• No one country has all of the answers
• Each competition agency brings unique insight and
  experience based on its own economic development
  experiences
• Competition agencies learn from each other
• Capacity building should be calibrated to suit
  the circumstances of the beneficiary agency
• National initiatives should be completemented by
  cooperative responses.