Competition Policy : The case of Mauritius

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Competition Policy The case of Mauritius
RESEARCH TEAM Dr k. Jankee , Mrs R. Peerun
Mr S. Bundoo Contents 1.0 General background
of the Mauritian Economy 2.0 Competition
policies 3.0 Market Structures in
Mauritius 4.0 Competition Law and the Role
of the Competition Authority 5.0 Interface
between the regulatory institutions and
competition regime 6.0 Participation in
Regional Trading Blocs 7.0 Consumer
protection law 8.0 Conclusion

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Background 1. Mauritius as an example of
economic success and middle income

• General background
• Small island economy in southern Africa with
  area of only 2040 km2
• Increased life expectancy, high literacy rate ,
  multicultural
• Mauritius is well known for its econimc miracle
  in the 1980s and 1990s
• with average growth rates of over 5 and per
  capta income over
• US 4000.
• Benefited from preferential markets
• Slowdown in economic activity high unemployment
  , high budget
• deficit
• Political democracy

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• Competition policies
• Trade policy External trade From import
  substitution to export led growth taking
  advantages of LOME convention, multi -fibre
  agreement, development of EPZ sector , sugar
  protocol
• Trade in services Tourism , banking and
  financial
• Diversification of the economy and development of
  new sectors such as fishing, ICT
• diversification of markets AGOA and
  regionalisation , SIDS
• Domestic trade reduction in tariffs leading to
  higher competition for domestic producers .
  However, domestic producers are fairly protected
  especially in agricultural imports and even non
  agricutural ones
• Import quotas still apply to a number of
  commodities potatoes,onions, garlic and salt.
• The State trading corporation, Agricultural
  marketing board, Meat authority have import
  monopoly and fixaximum prices on some strategic
  products such as flour, rice, cement , petroleum
  products , potatoes, onions , garlic and meat.

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• Dismantling of quantitative import restrictions
  
• Investment policy Incentives
  
• Agricultural Development Scheme/Freight Rebate
  Scheme
• Export Enterprise Scheme
• Health Development Certificate Scheme
• Hotel Management Scheme
• Industrial Building Enterprise Scheme
• Information and Communication Technology Scheme
• Integrated Resort Scheme
• Modernisation and Expansion Scheme
• Pioneer Status Enterprise Scheme
• Regional Development Certificate Scheme
• Technology Diffusion Scheme

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• Government Procurement
• October 2000 Central Tender board Act
• Public purchasing call for tenders Over Rs 500,
  000
• special thresholds for civil engineering works
• tenders are open only to local firms and local
  agents of foreign suppliers
• price preferences up to 15 is given to local
  suppliers
• International agency has its own guidelines
• Wage policy
• 1. Tripartite wage negotiation PRB and NRB
• Labour law and high degree of govt intervention
  ? Debate

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• Role of Small and medium entreprises
• Promotion of SMES in terms of institutional
  infrastructure, financing
• and several incentives
• Creation of employment
• Linkages in the economy and democratisation of
  the economy

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• Market structures
• Market concentration in many sectors such as
  public utilities, television broadcasting, import
  and distribution of cement, banking, insurance,
  air transport , petroleum products
• presence of restrictive trade practices
• Role of parastatal bodies such as State trading
  corporation in importing of essential products
  and use of price controls
• Agricultural marketing board
• Central electricity board, central water
  authority, Waste water authority, Mauritius
  Freeport authority , and others in various
  sectors of the economy
• Mauritius meat authority, State investment
  corporation
• There is a big debate on privatisation or
  corporatisation ????
• Telecommunications Open up following
  commitments with WTO up to January 2003.Monopoly
  situation
• November 2000 strategic partnership with France
  telecom ( 40) Monopoly in terms of connectivity
  till 2008.
• Role of information communication and technology
  authority regarding licences and tariffs.

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Central electricity board and Independent power
producers central water authority Cargo
handling corporation construction and cement
industry Tourism and air transport financial
sector insurance sector Agricultural
sector
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• competition law and Role of competition
  authority
• 1. Competition act ( 2003) legal framework for
  controlling restrictive trade practices and
  regulate competition , offer fair trading
• establishment of an office of fair trading as
  the competition authority
• competition appeal tribunal and competition
  advisory council
• advise minister , maintain communication with
  consumer organisations
• ACT abuse of monopoly power, collusive
  agreements, anti-competitive agreements and bid
  -rigging.
• Exclusion of goods and services like aviation
  and harbour services, broadcasting services,
  electricity, financial services, freeport
  services, ICT, postal services, water etc

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• Interface between Regulatory bodies and
  competition regime
• Financial sector role of the Bank of
  mauritius and financial services commission
• New legislations and institutional , banking acts
  , securities , insurance ,
• Utilities sector Utility Regulatory authority ,
  ICTA
• Regional cooperation and competition policy
• There is a big debate on the a uniform
  competition policy

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• Consumer protection law
• Protection ( price and supplies control )_ ACT
  1998 provides for better
• protection of consumers in terms of fix maximum
  mark ups, code of practice,
• labelling, information, Vat charges, horading,
  warehusing , establishment of court,
• Competition act 2003
• FOOD Act ( 1998)
• Genetically modifies organisms ACT
• Consumer protection UNIT

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• Conclusion
• historical and structural factors
• Role of government
• Need to develop competition culture especially
  following the
• loss of markets
• liberalisation and market forces
• Delay in greater role of the competition
  authority
• Competition is not only influenced by economic
  factors