Competition Law in the European Union

The Association Agreement with the EU will involve the creation of a regional body for the implementation of regional competition policies.

Wednesday, January 9, 2013

From the newsletter of the Costa Rica’s Commission to Promote Competition (COPROCOM):

The single market is one of the greatest achievements of the European Union. They have gradually been eliminating restrictions on trade and competition between Member States, which has resulted in an increase in living standards. This same challenge now faces the Central American region, and the authorities responsible for regulation will play a crucial role in ensuring success.

Strong regulation of competition law and the legitimate authority to enforce it, as well as a Court similar to that in the European Union, will be the key to making Central American integration a reality.

The European Union’s Competition Policy has four main action areas:
- The elimination of agreements restricting competition and abuse of dominant position (eg price-fixing agreements between competitors)
- The control of mergers between companies (for example, a merger between two large groups to achieve market dominance).
- The liberalization of monopolistic economic sectors (for example, the telecommunications market).
- Control of State aid (for example, the prohibition of State aid to support a failing business).

Competition is not only a European issue, but a global issue. The European Union's efforts to implement an effective competition policy in the EU have been exported to the international scene, both as a bilateral cooperation between major industrialized countries, and in a multilateral framework, and it is also on the agenda of the WTO. The need for an international competition policy framework has now become urgent, as the balance of power between large companies and local companies in many markets is clearly in favor of the most powerful, leading to deterioration in some of the world least developed regions. Far from eliminating the need for regulation, global competition makes shared standards, rules and monitoring all the more important.



More on this topic

Guatemala: Exporters Request Ratification of EU Agreement

April 2013

They believe that the country could lose competitiveness with partner countries and be at a disadvantage because neighboring Honduras and Nicaragua, have already ratified the agreement.

From a press release issued by the Guatemalan Association of Exporters (AGEXPORT):

The board of AGEXPORT met with the Guatemalan press, to publicly call on the Congress of the Republic of Guatemala, to ask them to ratify as soon as possible the Association Agreement (AA) between Central America and the European Union. According to exporters, Guatemala risks losing competitiveness with partner countries from the aforementioned continent, and being at a disadvantage because its neighbors, Honduras and Nicaragua, have already ratified it.

Export Quotas in the European Agreement

August 2012

A computerized system is being prepared in order to control the volume of exports to Europe by each Central American country, within the provisions of the Partnership Agreement.

An article in Laprensagráfica.com reports that "Central America is working on the adoption of a computerized system which will keep track of the volumes of cargo that each country in the region exports to Europe under the quotas that were agreed in the Agreement Association (AA). "

Central America-EU FTA Coming Into Force Soon

May 2012

In late June the Association Agreement between Central America and the European Union will be signed in Tegucigalpa, containing a section on trade which will take effect as soon as it is ratified by one of the governments of the region.

The final flourish of the Association Agreement between Central America and the European Union (EU) - which consists of three pillars: economic, political and cooperation, is scheduled for between 28th and 29th June in Tegucigalpa, during a summit of Central American presidents.

Competition Law in Guatemala

October 2010

"The monopoly itself is not the problem, the problem is the abuse that is committed" Erick Coyoy, Minister of Economy.

The main priorities set by the Minister of Economy revolve around the obligations of the country and the region, the agreements reached with the European Union, which refer to integration of the isthmus and in particular customs and promoting market competition.