GEI Projects

5. THE INTERNATIONAL REGULATION OF COMPETITION AND COMPETITION POLICY

Principal Researchers

Dr PETER HOLMES
Mr FRANCIS MCGOWAN
Professor ALAN CAWSON
Dr MICHAEL GASIOREK
Sussex European Institute
University of Sussex

Contact

Mr Jeremy Kempton
Sussex European Institute
University of Sussex Brighton BNl 9QN
Tel: 01273 678578
Fax: 01273 678571
Email: p.holmes@sussex.ac.uk

Duration:

1 October 1994 – 30 September 1997

AIMS AND OBJECTIVES

The research will analyse the process by which international negotiations on the regulation of international restrictive business practices develop.

‘Trade and competition’ was identified along with ‘trade and the environment’ and ‘trade and social’ policy as one of the new areas to be explored under the auspices of the WTO in the next phase of international negotiations following the Uruguay Round. It is an area that both the European Commission and the US administration have at various times identified as a priority. The research will explore the complex interplay of economic and political factors that have made this topic on the one hand extremely prominent and on the other hand extremely difficult to resolve. The research will look at the role of different international economic institutions, notably the OECD, UNCTAD and the WTO both as fora for debate, and actors in the system alongside firms and public administrations. It will distinguish the mercantilist as well as the efficiency oriented elements in the process.

STUDY DESIGN

The research will deal in detail with the historical evolution of the issue, through an examination of the evolution of negotiations going back to the aborted Havana Charter, using archive work. It will seek to follow the future negotiations in real time via interviews in the WTO, OECD, UNCTAD, European Commission and national administrations and by analysis of associated texts.

The research will look at the importance of competition policy in EU policy towards Eastern Europe as exemplified in the May 1995 White Paper.

On relations between the EU and Japan quantitative work will be done to explore the link between trade patterns and market structure variables

The research will address a number of cases, for example in the multimedia and telecoms field, analysing the scope or need for international regulation of global strategic alliances, and the applicability of various economic models that have been proposed. Other sectoral examples will probably include chemicals, cars and air transport.

The research will take full advantage of collaborative links with other researchers notable in France, Germany, Japan and in official bodies.

POLICY IMPLICATIONS

It had been expected that negotiations about trade and competition in goods would, soon after the Uruguay Round, move to the WTO, at which point a wider range of states and bodies (eg UNCTAD) would become involved. However, in 1995 these negotiations in effect stalled within the OECD. The Uruguay Round text does in fact specify a number of areas other than trade in goods where competition issues are to be taken into account. It also lays down in the TRIMs agreement that within five years there should be discussions with regard to whether or not international restrictive business practices should be regulated under the WTO. Such discussions have already begun in relations with the Central and East European Countries. It is hoped that our research itself will form part of the emerging debates, for example on the respective roles of anti-dumping and competition policy in relations with Eastern Europe.