Guatemala: Finally a Law on Competition?

The authorities have until November 31, 2016 to approve a law for the promotion and defence of competition.

Tuesday, January 12, 2016

The European Union needed to demand a Competition Law in the Association Agreement with Central America in order for Guatemala, the only country in the region not to have rules in this area, to bring the country up to date in this area.

Alejandro Williams, Deputy Minister of Investment and Competition, told Diario de Centroamerica that the initiative will be handed over to the authorities who assume office on January 14, and then it will be forwarded to Congress. The Law on the Promotion and Protection of Competition, as the project will be known, must be approved before the November 31, a deadline established in the trade agreement.

The project is being worked on by the law firm Integrum, using bases that have to do with defense and promotion of competition, the creation of an overseer, and the elimination of private barriers, including monopolies.

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The lack of a competition law in Guatemala could expose the country to sanctions from the European authorities, since it is a requirement demanded in the regulations of the Association Agreement with the European Union.

Since the end of 2016, the Association Agreement (AdA) required Guatemala to have a law on the matter, since in 2019 a Central American competition authority would have to be created.

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