Promoting Competition in Global Markets

Promoting Competition in Global Markets

A Multi-National Approach

P. J. Lloyd and Kerrin M. Vautier

This book sheds new light on a major issue on the international trade policy agenda – the promotion and defence of competition in globalizing markets. The authors discuss multi-national approaches to competition policy in the WTO, European Union, the Americas, OECD, UNCTAD and CER. They investigate the policy responses to anti-competitive, cross-border business transactions and argue that a growing reliance on competition law is not in itself sufficient to promote competition in globalizing markets.

Chapter 2: The Framework for Policy Analysis

P. J. Lloyd and Kerrin M. Vautier

Subjects: economics and finance, international economics


Page 7 2—  The Framework for Policy Analysis The growing attention to cross­border competition problems is part of a general increase in attention around the world to competition in globalizing markets.  Governments are adopting more pro­competitive policies in areas such as deregulation, privatization, and foreign direct investment. They recognize that, however these  policies are labelled, they can impact on competition and efficiency in national as well as internationalizing markets. These trends reflect the convergence of views  around the world towards governments putting more emphasis on market mechanisms and competition in markets as a means of improving efficiency in individual  economies. For example, in many countries public utilities were deregulated and, in most cases, privatized during the 1980s and 1990s. Deregulation had a similar effect to trade  liberalization; the partial freeing up of markets revealed the need for further policy actions to make sure that the maximum benefits were derived from liberalization.  These effects are particularly notable in East European countries which are dismantling state control of all industries (see Estrin and Holmes, 1998) but they are  observable in many other developed and developing countries. The number of countries with competition laws increased rapidly in the 1990s. All OECD countries have competition laws. Many non­OECD countries do not have a  general competition law directed at anti­competitive business conduct. Thirty countries adopted competition laws in the 1990s and over 20 had them under  preparation as at mid­1996 (UNCTAD, 1997, Annex Table A.22). All of these in both...

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