Antimonopoly authorities of EAEU and EEC supported FAS international anti-cartel initiatives
Heads of the authorized bodies of the member states of the Eurasian Economic Union (EAEU) and a Member of Collegiums (Minister) for Competition and Antimonopoly Regulation of the Eurasian Economic Commission (EEC) Nurlan Aldabergenov has a meeting in Moscow. The Russian Federation was represented by Deputy Head of FAS Andrey Tsyganov; Head of FAS Department for International Economic Cooperation, Lesya Davydova; Head of FAS Anti-Cartel Department, Andrey Tenishev; and Head of FAS Department for Control over Social Sphere and Trade, Timophey Nizhegorodtsev.
Summing up the results of the work of the Eurasian Economic Commission in 2016 on developing competition and antimonopoly regulation, Nurlan Aldabergenov pointed out the measures undertaken to introduce parallel import in the EAEU member states, as well as the results of joint work of the antimonopoly bodies of EAEU and EEC to reduce the tariffs for the services of cellular operators in roaming.
Another item on the agenda was drafting a model EAEU Code of Fair Trade Practices for relations between retail chains and suppliers. The decision to draft the Code was made at the previous meeting of the Heads of the antimonopoly bodies of the member states of EAEU and EEC in April 2016. So far the draft Code has been prepared by the Russian Federation and forwarded to EAEU antimonopoly bodies of the member states for consideration. The main Code objective is facilitating development of sustainable relations between retail chains and suppliers based on the principles of good faith, fair competition and the balance of commercial interests of the food product market participants. It’s worth noting that in Russia the Fair Practice Code for relations between retail chains and consumer product suppliers was devised in 2012. Today a similar document has drafted by the Ministry for Antimonopoly Regulation and Trade of the Republic of Belarus.
Andrey Tsyganov pointed out: “EAEU Code of Fair Trade Practices for relations between retail chains and suppliers, which is practically ready, can be considered and adopted at the highest level of EAEU member states as the model Code. It will be non-regulatory and will stimulate national executive and legislative bodies to develop and modernize their national trade laws. The Code can also facilitate development of trade law in EAEU member states so for businessmen involved in trading, production and distribution it will be convenient and interesting to work on the common market of the Eurasian Economic Union”.
Participants discussed development of efficient mechanisms to counter international cartels and other cross-border violations of the antimonopoly law.
“Globalization of economic relations is accompanied by an increasing number of cartels, whose operations affect also the markets of EAEU member states. Nowadays, as never before, it is essential to develop cooperation between the antimonopoly bodies in cartel investigations. To this purpose, the necessary tools should be established. One of such global tools can become an Anti-Cartel Convention. In view of a high integration level of EAEU member states, particularly, in the field of competition policy, it is our five states that can put forward a joint initiative on adopting an Anti-Cartel Convention”, pointed out Andrey Tsyganov. Representatives of the antimonopoly bodies of EAEU member states supported FAS proposal and agreed for further detailed refinement of the document.
The session also supported a FAS proposal to present at the 16th session of UNCTAD Inter-government Group of Experts on competition law and policy in July 2017 in Geneva (Switzerland) the experience of EAEU member states on developing efficient mechanisms suppressing violations of the common competition rules in the EAEU space that are specified in the Treaty on the Eurasian Economic Union. The experience will be useful to the antimonopoly authorities from various countries across the globe and will be factored in by UNCTAD Secretariat drafting the relevant recommendations.
Participants also discussed the state and development of competition on the markets of medicinal drugs in the EAEU member states. Since the common medicinal drug market started functioning in the Union on the basis of common principles and rules for drug circulation, arrangements were reached that the antimonopoly bodies of the member states of EAEU and EEC would analyze performance of the medicinal drug markets in the EAEU member states, and an integral part of which should become analysis of prices for the medicinal drugs included in a specially approved list. Timophey Nizhegorodtsev informed that FAS is ready to give the guidelines to the foreign colleagues to perform the analysis.
Finally, participants exchanged information on the events planned for 2017. Andrey Tsyganov invited the colleagues from the antimonopoly bodies of EAEU member states to take part in a number of international FAS events, including the annual Competition Week, to continue discussing the issues outlined at the meeting.
