INTERNATIONAL COOPERATION ON COMPETITION POLICY: MEXICO

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INTERNATIONAL COOPERATION ON COMPETITION POLICY
MEXICOS EXPERIENCE Presentation by Mr.
Martín Moguel Gloria May, 2002
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• I Introduction
• II Competition Policy
• III Legal Framework
• IV Pre-Merger Review
• V International Cooperation
• VI Conclusions

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• I Introduction
• Post-War Industrialization
• Import Substitution Model
• 1980s Towards a free market economy
• 1990s New economic model
• Privatization
• Deregulation
• Free trade and investment regimes
• Market forces

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• II The need for a competition policy
• Proliferation of Monopolies
• Economic Democracy
• Competition Culture
• New Legal Framework

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• III Legal 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

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• IV Pre-Merger Review
• From 1993-2001
• 1300 Notifications
• 95 Approved
• 4 Conditioned
• 1 Prohibited
• About 80 related to international transactions

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• 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

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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-Guatema
  la

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International Cooperation

• Objectives
• Measures to proscribe anticompetitive practices
• Cooperation and Coordination for competition law
  enforcement
• Notification
• Consultation
• Exchange of information
• Technical assistance

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International Cooperation

• 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)

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International Cooperation

• Objectives
• Promotion of competition policy
• Multilateral rules

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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

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• VI Conclusions
• Mexicos 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