ECONOMIC POLICY PROGRAMME

1
ECONOMIC POLICY PROGRAMME

• TOWARDS AN ECONOMICALLY-VIABLE PALESTINIAN STATE
  
• The Regulation of External Trade

Monday May 23, 2005 Grand Park Hotel, Ramallah
2
Towards a Sovereign Trade Framework Competition
Law
Ross Denton
3
This document is an output from a project funded
by the UK Department for International
Development (DFID) for the benefit of developing
countries. The views expressed are not
necessarily those of DFID.
4
Competition Law

• Competition law is not necessary for WTO
  accession
• Important but not necessary for regulating economy

5
What Problems Does Palestine Face?

• Need to attract and keep international investment
• Reliance on trade with contiguous States,
  including Israel
• Limited administrative resources

6
Principles of Regulation

• Simple but flexible administrative structure,
  subject to review by courts
• Prohibition and where established violation fines
• Rigorous system of penalties that increase per
  violation
• Private right of action
• Possible use of extraterritorial penalties if
  consistent with international law obligations
• Detailed implementing regulations required

7
Areas for Regulation

• Abuse of market power
• Anti-competitive agreements (horizontal and
  vertical?)
• State-approved entities operating under special
  or exclusive rights
• Mergers
• Other activity

8
Public Procurement

• Public procurement law is not necessary for WTO
  accession (except where violations of GATT may
  occur (i.e. Article III)
• Important but not necessary for regulating
  economy

9
Should Palestine Adhere to the WTO GPA?

• Not obliged to do so
• Can accede as a developing country under
  Article V. Two main benefits
• The laws of developed countries must facilitate
  increased imports from developing countries
• Development objectives of developing countries
  should be taken into account in the negotiation
  of coverage of procurement by entities in
  developed and developing countries
• Main disadvantage does Palestine want to accept
  this differential treatment?

10
Current Laws

• Law Number 8 of 1999 Concerning Government Works
  Tenders (Law 8)
• Law No. 9 of 1998 Concerning Public Supplies
  (Law 9)
• Possibly have integrated procurement law with
  detailed regulations?
• Neither totally consistent with GPA in that under
  both Laws, preference must be given to
  Palestinian suppliers that meet the requirements
  of the tender. In the case of works, it seems
  that only Palestinian nationals can become
  qualified in the first place.

11
ECONOMIC POLICY PROGRAMME

• TOWARDS AN ECONOMICALLY-VIABLE PALESTINIAN STATE
  
• The Regulation of External Trade

Monday May 23, 2005 Grand Park Hotel, Ramallah