INTERNATIONAL COOPERATION ON COMPETITION POLICY: MEXICO´S EXPERIENCE Presentation by Mr. Martín Moguel Gloria May, 2002.

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Presentation transcript:

INTERNATIONAL COOPERATION ON COMPETITION POLICY: MEXICO´S EXPERIENCE Presentation by Mr. Martín Moguel Gloria May, 2002

IIntroduction IICompetition Policy IIILegal Framework IVPre-Merger Review VInternational Cooperation VI Conclusions

IIntroduction Post-War Industrialization Import Substitution Model 1980´sTowards a free market economy 1990´sNew economic model: »Privatization »Deregulation »Free trade and investment regimes »Market forces

IIThe need for a competition policy Proliferation of Monopolies Economic Democracy Competition Culture New Legal Framework

IIILegal Framework Article 28 of the Mexican Constitution Federal Law on Economic Competition December 1992-June 1993 Creates the Federal Competition Commission Prohibition of monopolistic practices Mandatory Pre-Merger Review

IVPre-Merger Review From Notifications 95% Approved 4% Conditioned 1% Prohibited About 80% related to international transactions

Pre-Merger Review Advanced notification is required for transactions to be concluded Applicable Thresholds No notification is required if foreign entities do not acquire control of a Mexican entity

V. International Cooperation Treaties:  NAFTA (Chapter 15) Mexico- USA-Canada  G-3 (Chapter 16) Mexico- Colombia- Venezuela  EUMFTA (Chapter 39 y annex 15) Mexico- European Community  Free Trade Agreements: Bolivia. Chile. Costa Rica. Israel. Nicaragua. Salvador- Honduras-Guatemala

International Cooperation Objectives:  Measures to proscribe anticompetitive practices  Cooperation and Coordination for competition law enforcement: »Notification »Consultation »Exchange of information »Technical assistance

Multilateral Organizations Organization for Economic Co-operation and Development (OECD) World Trade Organization (WTO) United Nations Conference on Trade and Development (UNCTAD) Asia-Pacific Economic Cooperation (APEC) Free Trade Area of the Americas (ALCA) International Cooperation

Objectives:  Promotion of competition policy  Multilateral rules

International Cooperation International Competition Network  Joint initiative of 14 competition agencies  Annual Conferences Objetives: Non-binding general guidelines or “best practice” recommendations Issues:  Mergers notifications in a multi-jurisdiction context  Advocacy and enforcement policy Private Participation

VI Conclusions Mexico´s Competition Policy and Legislation Mixed Results: Positive Balance Constant Challenges  Inter-agency Feuds  Natural Business Resistance  Judicial Review Active Participation in International Fora:  Bilateral Cooperation Agreements  Promotion of Multilateral Rules