1 / 17

ASEAN Competition Policy

ASEAN Competition Policy. Summary of MIER Presentation. STUDY BACKGROUND AND OBJECTIVES. Some common features of ASEAN countries Opening up to foreign trade More responsive to deeper integration with global economy Investment liberalisation

gavril
Télécharger la présentation

ASEAN Competition Policy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ASEAN Competition Policy Summary of MIER Presentation

  2. STUDY BACKGROUND AND OBJECTIVES Some common features of ASEAN countries Opening up to foreign trade More responsive to deeper integration with global economy Investment liberalisation Closing of strategic economic sectors to foreign competition Reducing tariff barriers with demands of AFTA (ASEAN Free Trade Area) and WTO

  3. STUDY BACKGROUND • Global trend towards establishing competition laws • Increase in FDIs to China led to • decline in FDIs to ASEAN • Only 4 of 10 countries in ASEAN have competition laws: • - Indonesia • - Singapore • - Thailand • - Vietnam

  4. Key Issues for anASEAN Competition Policy Countries in ASEAN without competition policy whether to adopt this policy or not. If so, what form? • Countries in ASEAN with competition policy – whether and how they should integrate their competition policies with one another

  5. Key Issues for anASEAN Competition Policy • Various countries in the world do not enjoy similar development levels; for a uniform competition legislation • Standard provisions will not benefit all countries equally • A uniform law is only equitable when nations enjoy similar or compatible levels of : • - economic development • - research and development capability • - infrastructure and • - technological superiority

  6. POLICY OBJECTIVES The AEC (ASEAN Economic Community)is a commitment of ASEAN leaders A. to promote greater competitiveness for the region. B. Competitive Economic Region

  7. POLICY OBJECTIVES • B1. Competition Policy • The main objective of the competition policy is to foster a culture of fair competition. • Institutions and laws related to competition policy have recently been established in some (but not all) ASEAN Member Countries (AMCs). • There is currently no official ASEAN body for cooperative work on competition policy and law (CPL)to serve as a network for competition agencies or relevant bodies to exchange policy experiences and institutional norms on CPL.

  8. What is competition policy • Competition policy is mostly about competition law and its enforcement. • Competition law refers to rules to restrict anti-competitive practices, including: • – Arrangements between 2 parties to substantially reduce competition or increase dominance in a market. • – Fix prices, volumes or others trade terms among competitors • – Unilateral behaviour to take advantage of market power for anti-competitive purposes • – Sets minimum price for goods supplied or sold by an enterprise

  9. Market Structure Sellers exist in large numbers and market • concentration is low – no one seller can unilaterally • influence prices, and making it less likely that sellers • would collude. Consumers perceive products and services to be • relatively homogeneous – price competition is • stronger when there is less brand preferences Widely available market info on alternative suppliers, • making switching and substituting by buyers more • likely Barriers to entry are low – new competition can enter • the market if there are profits to be made Excess capacity exist, so that firms are more willing • to cut prices when demand is slacking

  10. Barriers to Entry Contestability, whether existing or potential, is an important force in providing competitive discipline to market participants. • Sources of barriers to entry: – Presence of significant economies of scale – Limited access to essential resources, facilities or services – Patents or (Intellectual Property Rights) IPR – Significant sunk costs in items such as capital, brand and reputation – High cost or difficulty of obtaining regulatory approvals to participate in market – Predatory pricing

  11. Market Conduct • Competitive markets must be free from anticompetitive behaviour and not deter entry of new participants. • This may include agreements or understanding to reduce competition, price fixing, excluding market participation, using dominant • position to restrict competition. • This is likely when there are opportunities for : • – Collusion by participants, even informally • – Detection of deviant behaviour breaking a collusive understanding retaliation to discipline deviants

  12. Benefits of Competition • Increases consumer welfare by lowering prices and increasing quality, by promoting the entry of new firms and encouraging more competitive pricing • • Ensuresopportunities for new entrepreneurs • • Facilitates realization of the benefits for the domestic economy of integrating into international trade and investment policies • • Provide guidance to the nature of privatisation and regulation decisions • • Broadens participation in economic, social and political advances

  13. Benefits of Competition • Gives to consumers wider choice • • Provides sellers with stronger incentives to minimize costs, thus eliminating waste • • Increases the likelihood that cost savings resulting from efficiency gains will be passed on to a firm’s customers (may be either consumers or other firms) • • Encourages a higher rate of innovation and adoption of new technologies over time • • Serves to diffuse socio-economic power

  14. Benefits of Competition Increase efficiency and economic growth • Competitive markets provide opportunity, resiliency and innovation • Ensure that privatisation programmes do not burden the people • Enhance competitiveness of firms as they overcome internal and external shocks • Ensure that gov’t regulation would not restrict business activity or raise costs of doing business

  15. Current State of Competition Laws in ASEAN Malaysia Laws that regulate enterprise activities and protect consumer interests: Control of Supplies Act (1961) Companies Act (1965) Hire Purchase Act (1967) Trade Descriptions Act (1972) Food Act (1983) Direct Sales Act (1993) Competition clauses in specific sectors: Electricity Supply Act (1990) Communication and Multimedia Act (1998)

  16. Current State of Competition Laws in ASEAN Philippines Competition clauses in: Penal Code of the Philippines (1930) Civil Code (1949) Act to Prohibit Monopolies and Combinations in Restraint of Trade (1961) Corporation Code Batas Pambansa Blg 68 (1980) Price Act (1992) Consumer Act (1992) Competition clauses in specific sectors: Securities Act (1982) General Banking Act (1948) Retail Trade Liberalisation Act (2000) Executive Orders for maritime industry, civil aviation, port services, telecoms, energy, water

  17. Current State of Competition Laws in ASEAN ThailandTrade Competition Act (1999) Price of Goods & Services Act (1999) Telecoms Business Act (2001) Singapore Competition Act (2004) Competition clauses in specific sectors: Telecoms Act (1999) Electricity Act (2001) Gas Act (2001) IndonesiaLaw on the ProhibitionMonopolistic Practices & Unfair Business Competition (1999) VietnamCompetition Law (2004)

More Related