Trade and Competition Law in the EU and Beyond
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Trade and Competition Law in the EU and Beyond

Edited by Inge Govaere, Reinhard Quick and Marco Bronckers

This well-documented book comprises a stellar cast of European and American authors delivering an overview of cutting edge issues in the areas of trade and competition law, arising in the EU and beyond.
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Chapter 2: Towards a WTO Business-Enabling Compact

Stefan D. Amarasinha and Simon J. Evenett


19 3Com. Needless to say, the difficulties developing and emerging country multinationals occasionally face are not only in developed countries, such as the EU and the United States, but also just as importantly in other developing and emerging economies. Consequently, the BICs (and their multinationals) are likely to have a growing interest in a rules-agenda focussing on the establishment of certain global standards of treatment of foreign companies and investors, especially in the area of mergers and acquisitions and FDI more broadly.6 Similarly, EU and US companies face difficulties in the context of mergers and acquisitions and inward FDI in the BICs and in other countries, as illustrated by the difficulties the Carlyle Group encountered in China with the need for multiple (and competing) agencies’ authorization of their various investments in Chinese companies; UK’s TCI being forced to withdraw plans for a greater stake in Japan’s J-Power due to stated security concerns; and the 2009 blockage by the Chinese competition authorities of Coca-Cola’s bid for the Huiyuan Juice company.7 There are multiple, legitimate reasons why companies choose to invest abroad, including through mergers and acquisitions. As put by one economist:8 (…) complementary geographic coverage can be very important, especially in international mergers. It can be less expensive to expand into a new market by simply buying someone who is there, someone who knows what’s going on on the ground rather than having to do those investments yourself. In addition to that, proximity to raw materials and other...

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