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. However, it cannot operate, because there is no legal framework.
There is a proposal to exclude the electricity, telecommunications, banking and agribusiness sectors from the law proposal on competition, since they are already subject to regulation.
The proposal put forward by CABI to exclude these sectors is based on the fact that companies operating in these areas are already subject to regulation and supervision. Paulo de Leon, analyst at the CABI, told Elperiodico.com.gt, for example, that in the case of agribusiness, not excluding them, "... would affect rising food prices and cost of the Basic Food Basket, food insecurity, and other things. " In the case of other sectors, according to De Leon, controls to prevent abuse of competition are already made by supervisory bodies such as the Superintendency of Telecommunications.
The authorities have until November 31, 2016 to approve a law for the promotion and defence of competition.
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.
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