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