Fair Competition Commission 1 Regional Co-operation-Current and Anticipated The Sixth Annual African Dialogue Consumer Protection Conference Frank S. Mdimi (SCPRO) SENIOR PR, COMMUNICATIONS & CONSUMER EDUCATION OFFICER LILONGWE SEPTEMBER, 2014

Fair Competition Commission Regional Economic Blocks aim at facilitating growth of trade amongst trading block members by removing barriers to trade and promoting competition in the regions. Tanzania is a member of two Regional Economic Blocks, namely the East African Community (EAC) and the Southern Africa Development Cooperation (SADC); EA Competition Law was passed by the EA Legislative Assembly and assented to by all Heads of State on 13 th Nov. 2006; The EAC law applies to all economic activities and sectors having cross-border effects (s4(1)). 2 Regional Blocks Laws

Fair Competition Commission The basis of the EAC Competition Policy and Law is Article 75(1)(i) of the Treaty for the Establishment of the East African Community which provides that “For purposes of this Chapter, the Partner States agree to establish a Customs Union details of which shall be contained in a Protocol which shall, inter alia, include competition”. The law seeks to enhance the welfare of the people in the East African Community. 3 East African Competition Law

Fair Competition Commission 4 Status of Enactment of Competition Laws in EAC TANZANIAKENYABURUNDIUGANDARWANDA Law enacted, in 2003 and creates an independent institution (FCC) in place to enforce the Law. -Competition Law was enacted in (2010) (Revised in 2012). -Established an independent Competition Authority –(s.7 of the Act). Competition law was enacted in 2010.Commission to enforce the law has been established as an independent Regulator. -Only awaiting Ministerial Orders to bring the law into force. No specific legal regime has been put in place to govern Competition issues. However, a Draft bill was prepared in 2004 and tabled to parliament. It has not been formally enacted into a law. Enacted a law on Competition In (Competition and Consumer Protection Law).Established a Competition and Consumer Protection Regulatory Body (CCRB)

Fair Competition Commission Competition Policy doesn’t feature directly in the SADC Treaty. It features in the SADC Trade Protocol (STP); Article 25 of STP: Member states shall implement measures within the community that prohibit unfair practices and promote competition; Article 19 of STP: Member states shall not grant subsidies which distort or threaten to distort competition in the Region. 5 SADC

Fair Competition Commission No mention of SADC Competition Law yet in Treaty and Trade Protocol, yet; No mention of the SADC Competition Body in treaty and Trade Protocol yet. 6 SADC

Fair Competition Commission All efforts to institute EAC competition legislative framework as well as developing related supra-national competition body involve all partner states; FCC participates in Regional SADC and EAC Competition Law meetings and capacity building sessions. 7 Current Cooperation Aspects

Fair Competition Commission Cooperation in Technical Capacity Building aspects such as Study Tours to Competition Commission South Africa and DTI (on Consumer Law Development Efforts) in September, 2009, Investigative Training for Enforcing Agencies of Eastern and Southern Africa Region by UNCTAD in November-December, 2011, Investigative Training by Competition Commission South Africa to FCC Staff in May, 2012, Bid Rigging Training to EAC competition law agencies in June, 2013, African Competition Forum Secretariat and Meetings, 8 Current Cooperation Aspects

Fair Competition Commission Lack of a “competition culture”; Differences in the stage of economic development of member countries often leading differences in policy objectives; Education and capacity issues EU- EPAs debate and concerns Partners States who have not yet established competition authorities or not yet enacted competition laws that they are dragging the process of establishing the EAC Competition Authority; 9 Current Co-operational Challenges

Fair Competition Commission Only Tanzania and Kenya have independent and autonomous competition institutions in place; although Rwanda and Burundi have competition laws; they have not yet established competition authorities/institutions. Uganda is still having a Bill for quite sometime now SADC appears to be lagging behind in establishing a regional law and a Regional competition Authority. 10 Current Co-operational Challenges

Fair Competition Commission Remedies to the challenges 1.Need to have member countries with a fully operational competition law; 2.Soliciting technical assistance to help members to introduce and implement competition laws; 3.Raising awareness of value of cooperation on cross- border issues; 4.Resources will have to be found since it is a costly exercise

Fair Competition Commission Way Forward on Regional Cooperation in Africa 1.The three major economic blocks (EAC, SADC and COMESA) are currently working towards establishing a Free Trading Area (FTA), and to that effect there is a working group of technical experts, which is polishing the draft FTA Agreement. The working group is made up of members from Member/Partner States competition jurisdictions. 2.The FTA Agreements has more than 78 Articles touching on various trade areas that indirectly affect consumer welfare.

Fair Competition Commission Way Forward on Regional Cooperation in Africa The TFTA Agreement seeks to reduce Non Tariff Barriers to Trade (NTBs), and has established a number of ways and means to address them in its framework:- 1.National Focal Points: Ministries or Government Departments or any other authorised body, appointed under article 6 of the TFTA Agreement, Annex 2; 2.NTB Sub Committees: These are responsible for implementation of TFTA Agreements;

Fair Competition Commission Way Forward on Regional Cooperation in Africa 3.National Monitoring Committee: These are committees of relevant stakeholders from private and public sectors as established under article 5 of the TFTA Agreement, annex 2; 4.We are optimistic that if it works well and enforced without hidden agenda, the TFTA Agreement may be a vehicle for increasing trade amongst citizens of the trade block; 5.All in all the future of Regional Cooperation lies in expanding the Regional Economic Blocks into as fewer FTAs as possible, which enable consumers in the respective blocks to enjoy benefits trickling from reduced barriers to trade, especially NTBs.

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