Overview of competition rules in Regional Trade Agreements Lecturer: Professor Mihai Berinde, PhD President of Romanian Competition Council

2Outline I.Proliferation of RTA II.Rationales for competition-related provisions in RTA III.Approach of trade and competition at multilateral level IV.Competition provisions and the bilateral & regional trade agreements V.Types of competition provisions VI.Common competition provisions in RTA VII.Romania‘s trade and competition policy VIII.RTAs to which Romania is a party – coverage of competition IX.Closing remarks

3 I. Proliferation of RTA GATT’s art. XXIV provides the legal foundation for RTAs GATT’s art. XXIV provides the legal foundation for RTAs The EU and EFTA are the main continental hubs sharing similar networks of RTAs The EU and EFTA are the main continental hubs sharing similar networks of RTAs Almost 200 RTAs have been notified to the WTO Almost 200 RTAs have been notified to the WTO More than half of the world trade is now governed under RTA More than half of the world trade is now governed under RTA

4 II. Rationales for competition- related provisions in RTA Competition policy – a relatively new feature in international trade agreements Competition policy – a relatively new feature in international trade agreements The competition rules play an important role in trade liberalization The competition rules play an important role in trade liberalization Competition rules protect the outcome of trade liberalisation Competition rules protect the outcome of trade liberalisation In a global economy, anticompetitive practices are likely to have an impact on trade In a global economy, anticompetitive practices are likely to have an impact on trade

5  Domestic firms colluding to keep foreign competitors out of their markets  Exporting firms abusing of their dominant position in different foreign markets  Incompatible economic concentrations II. Rationales for competition- related provisions in RTA Anticompetitive practices reducing the benefits of trade:

6 III. Approach of trade and competition at multilateral level – TRIPS and GATS agreements Uruguay round – TRIPS and GATS agreements – 1996 Ministerial Declaration Singapore – 1996 Ministerial Declaration WTO Working Group on the Interaction between Trade and Competition Policy  WTO Working Group on the Interaction between Trade and Competition Policy – Ministerial Declaration 2001 Doha – Ministerial Declaration 2001 Proposal for a “Multilateral Framework Agreement on competition ” (MCF)  Proposal for a “Multilateral Framework Agreement on competition ” (MCF) – Ministerial Conference 2003 Cancún – Ministerial Conference 2003 Disagreement on Singapore issues  Disagreement on Singapore issues

7 IV. Competition provisions and the bilateral & regional trade agreements No consensus reached at multilateral level No consensus reached at multilateral level The new generation of RTAs include more often rules on competition The new generation of RTAs include more often rules on competition

8 V. Types of competition provisions Main RTAs competition provisions: 1.Adoption of competition laws 2.Coordination and cooperation provisions 3.Provisions addressing specific anticompetitive practices 4.Provisions relating to “core principles” 5.Exclusion of antidumping 6.Recourse to trade measures 7.Provisions relating to dispute settlement 8.Special and differential treatment (SDT)

9 VI. Common competition provisions in RTAs Agreements involving the European Union – oriented towards harmonization of competition rules among the contracting parties Agreements involving the European Union – oriented towards harmonization of competition rules among the contracting parties Agreements involving USA and Canada – oriented towards cooperative provisions Agreements involving USA and Canada – oriented towards cooperative provisions

10 VII. Romania‘s trade and competition policy Romania – one of the beneficiaries of trade liberalization within the multilateral frameworks of the GATT and WTO Romania – one of the beneficiaries of trade liberalization within the multilateral frameworks of the GATT and WTO Romanian trade policy in accordance with the relevant WTO rules Romanian trade policy in accordance with the relevant WTO rules Romanian competition policy in line with both international rules in the field and EU rules Romanian competition policy in line with both international rules in the field and EU rules The application of the competition acquis prior to the closure of the EU accession negotiations The application of the competition acquis prior to the closure of the EU accession negotiations

11 VIII. RTAs to which Romania is a party – coverage of competition The Europe Association Agreement: The Europe Association Agreement: agreements and concerted practices, abuse of dominanceagreements and concerted practices, abuse of dominance State aidState aid EFTA-Romania FTA EFTA-Romania FTA similar to the EU Association Agreementsimilar to the EU Association Agreement

12 Romania’s Agreement with CEFTA countries Romania’s Agreement with CEFTA countries agreements and concerted practices agreements and concerted practices State aid State aid New evolutions in CEFTA New evolutions in CEFTA  modernization of competition package VIII. RTAs to which Romania is a party – coverage of competition

13 BFTAs with the ex-Yugoslavian countries, Republic of Moldavia, Albania, Israel and Turkey BFTAs with the ex-Yugoslavian countries, Republic of Moldavia, Albania, Israel and Turkey agreements and concerted practices, abuse of dominanceagreements and concerted practices, abuse of dominance State aidState aid VIII. RTAs to which Romania is a party – coverage of competition

14 IX. Closing remarks For Romania, European integration and regional cooperation are mutually reinforcing goals For Romania, European integration and regional cooperation are mutually reinforcing goals RTA – a complement to and support for multilateralism RTA – a complement to and support for multilateralism A WTO competition law responding to the problems of globalization is possible A WTO competition law responding to the problems of globalization is possible RTA – a likely mean for an efficient and effective control of anti-competitive practices RTA – a likely mean for an efficient and effective control of anti-competitive practices Welfare of the whole global community – ensured by a liberal international trade system sustained on three pillars: free competition, non-discrimination, elimination of barriers Welfare of the whole global community – ensured by a liberal international trade system sustained on three pillars: free competition, non-discrimination, elimination of barriers

15 Thank you very much for your kind attention!