Andean Community
(Last updated 21/04/08)

The Andean Community is a subregional organization endowed with an international legal status, which is made up of Bolivia, Colombia, Ecuador, Peru and Venezuela and the bodies and institutions comprising the Andean Integration System (AIS).

Located in South America, the five Andean countries together have 120 million inhabitants living in an area of 4 700 000 square kilometers, whose Gross Domestic Product in 2002 amounted to 260 billion dollars.

All integration processes pass through stages that can be differentiated according to the degree of commitment assumed by their member countries.

In a free trade area –considered the first stage— the only commitment is the reciprocal opening up of national markets, which is obtained by eliminating tariffs and trade restrictions; in a Customs Union, a uniform common external tariff applicable to imports from third countries is added; and in a common market, not only goods and services, but also factors of production (capital and labor) are liberalized.

Presidential Commitment

At their Eleventh meeting, in Cartagena, Colombia in May 1999, the Presidents of Bolivia, Colombia, Ecuador, Peru, and Venezuela assumed a commitment to "establish the Andean Common Market by the year 2005, at the latest, by creating the conditions for adding to the free circulation of goods, the unimpeded movement of services, capital, and people in the Subregion."

The Andean leaders, at the Twelfth Summit, in Lima in May 2000, ordered an agenda to be prepared, identifying the specific objectives and measures and subject to annual programming, in order to move toward the formation of the Common Market.

At their Thirteenth Meeting, held in Carabobo in June 2001, the CAN Presidents handed down precise instructions for speeding up efforts in that direction, referring to trade in both services, capital, and persons, and in goods. They ordered a working program to be prepared leading to the full and effective operation of the Customs Union through the adoption of a Common External Tariff and a Common Agricultural Policy, among other measures.

Competition

The Andean Community has a series of provisions for preventing or counteracting distortions in competition in the Subregion produced by dumping and subsidies, practices that restrict free competition, and others with a similar effect.

The representative of any national industry that is affected can make a complaint or submit one on behalf of that industry or member country through the national integration bodies.

Dumping

The Community provisions that are applicable to imports affected by dumping are Decisions 456, when the imports affected by dumping are native to an Andean Community Member Country and 283, when those products originated in a third country and affect the products exported from one Member Country to another, or when two or more Member Countries are affected by dumping practices and the product is subject to the Common External Tariff (CET).

Dumping is a price discrimination practice that occurs when a company exports its products to another country at prices lower than those at which the products are sold in its domestic market.

Dumping occurs when, in the course of normal trading operations, a product’s export price is lower than the domestic price of a similar product intended for consumption in the exporting country.

Community provisions stipulate that specific adjustments must be made to both the export price and the selling price in the domestic market of the exporting country, so that the two values can be compared fairly. These adjustments are needed because product prices vary in each operation due to differences in the selling conditions and terms in the domestic and export markets, such as applicable taxes and duties and different physical characteristics, among other things.

The dumping margin is the difference between the adjusted domestic price and the adjusted export price. A dumping margin of less than a 5 percent difference in export price in the trade of products native to a Member Country or of less than 2 percent in that of products originating in a third country, is considered insignificant.

Another condition that must be met in the case of imports affected by dumping is that the national production of the affected Member Country that is intended for the domestic market or for export, as the case may be, must also be seriously harmed or in danger of serious harm because of the dumping.

The measure to be taken in this case is the application of so-called "anti-dumping duties" to each one of the exporters investigated, but not necessarily to all of the products imported from the country of origin of the exporter investigated.

The investigation period is six months, which can be extended for a further two months in the case of complaints made under Decision 456 and four months, which can be extended for a further two months, in the case of complaints made pursuant to Decision 283.

Subsidies

Community provisions that are applicable to imports affected by subsidies are Decisions 457, when the imports affected by dumping are native to an Andean Community Member Country and 283, when those products originated in a third country and affect the products exported from one Member Country to another, or when two or more Member Countries are affected by subsidies and the product is subject to the Common External Tariff.

A subsidy exists if the recipient is benefited by a direct government or public transfer of funds, tax remission or failure to collect public taxes, furnishing of goods or services that are not a part of the general infrastructure, or procurement of goods at a cost higher than the market price, or the existence of some sort of income or price support.

The subsidy must also be "specific" –in other words, it must favor a given company, industry, or group of enterprises or industries above others.

The amount of the subsidy must be determined by quantifying the net benefit obtained per unit of measurement of a product, that is to say, by deducting the expenses incurred in order to enjoy the subsidy.

Another condition that must be met in the case of imports affected by subsidies is that the national production of the affected Member Country that is intended for the domestic market or for export, as the case may be, must be seriously harmed or in danger of serious harm because of the subsidy.

The investigation period is six months, which can be extended for a further two months, in the case of complaints made under Decision 457 and four months, which can be extended for a further two months, in the case of complaints made pursuant to Decision 283.

The measure to be taken in the case of subsidies is the application of so-called "compensatory measures" to all of the products imported from the exporting country that engages in that practice.

Free Competition

Practices that restrict free competition are the agreements, parallel behaviors, or practices coordinated between companies that cause or could cause competition to be restricted, impeded or falsified and the abusive exploitation by one of several enterprises of a dominant market position.

One or several enterprises enjoy a dominant market position when they are able to act independently, without considering their competitors, buyers or suppliers because of factors such as holding a significant share of respective markets, the supply and demand characteristics of given products, the degree of technological development of the products involved, and the competitors’ access to financing and supplies, as well as distribution networks.

Decision 285 is applicable when the restrictive practices originate in the Subregion or when a company that carries out its economic activities in a Member Country is involved. Subregional origin exists when the practices are carried out by enterprises whose economic activities are performed in one or more Member Countries. Involvement occurs when the practice is carried out between enterprises whose activities are performed in one or more Member Countries and companies located outside the Subregion.

Member Countries and enterprises with a legitimate interest are authorized to submit a request.

The investigation period runs for two months as of the publication date of the Resolution that launches the investigation.

The General Secretariat will hand down its decision through a declaration of prohibition if it determines the existence of a harmful or potentially harmful practice that restricts free competition. It can also decide to take measures to eliminate or alleviate the distortions that gave rise to the complaint. These measures can consist of authorizing the countries where the affected enterprises carry out their economic activities to apply preferential tariffs in relation to the subregional tariff commitments, to imports affected by practices that restrict free competition.

Information available at the Andean Community's website

Andean Subregional Integration Agreement "Cartagena Agreement"

Decision 632 of 2006, issued by The Andean Community Commission. Clarification of the second paragraph of Article 266 of Decision 486 (year 2000).

Decision 614 of 2005, issued by The Andean Council of Ministers of Foreign Affairs. Integral and Sustainable Alternative Development Andean Strategy.

Decision 616 of 2005, issued by The Andean Community Commission.
Enforcement of Decision 608 in the Republic of Ecuador.

Decision 602 of 2004, issued by The Andean Council of Ministers of Foreign Affairs, in an extended meeting with the Principal Representatives to the Andean Community Commission. Andean Regulation for the Control of chemical substances used in the illegal manufacture of narcotic drugs and psychotropic substances.

Decision 608 of 2005, issued by the Commission of the Cartagena Agreement concerning Normas para la protección y promoción de la libre competencia en la Comunidad Andina. (In Spanish)

Decision 562 of 2003, issued by the Commission of the Cartagena Agreement concerning Directives for the preparation, adoption and application of technical regulations in Andean Community member countries and at the community level.

Decision 501 of 2001, issued by the Commission of the Cartagena Agreement concerning
Border Integration Zones (BIZ) in the Andean Community.

Decision 506 of 2001, issued by the Commission of the Cartagena Agreement concerning
Recognition and acceptance of certificates of products sold within the Andean Community.

Decision 486 of 2000, (Andean Community's Industrial Property Regime), issued by the Commission of the Cartagena Agreement. Title XVI contains provisions concerning intellectual property-related unfair competition practices.

Decision 456 of 1999, issued by the Commission of the Cartagena Agreement, on anti-dumping practices in the Andean Community (CAN) countries. (in Spanish)

Decision 457 of 1999, issued by the Commission of the Cartagena Agreement, Normas para prevenir o corregir las distorsiones en la competencia generadas por prácticas de subvenciones en importaciones de productos originarios de Países Miembros de la Comunidad Andina. (in Spanish)

Decision 462 of 1999, issued by the Commission of the Cartagena Agreement concerning a
Provisions Regulating the Integration and Liberalization of the Trade in Telecommunications Services in the Andean Community.

Decision 439 of 1998, issued by the Commission of the Cartagena Agreement concerning a General Framework of Principles and Rules and for Liberalizing the Trade in Services in the Andean Community.

Decision 419 of 1997 ,issued by the Commission of the Cartagena Agreement concerning
Modification of Decision 376 (Andean System of Standarization, Accreditation, Testing, Certification, Technical Regulations and Monopoly).

Decision 283 of 1991, issued by the Commission of the Cartagena Agreement containing rules for preventing or correcting distortions in competition caused by dumping or subsidy practices.

Decision 284 of 1991, issued by the Commission of the Cartagena Agreement containing rules and regulations for preventing or correcting distortions in competition caused by restrictions on exports.

Decision 285 of 1991, issued by the Commission of the Cartagena Agreement, on rules and regulations for preventing or correcting distortions in competition caused by practices that restrict free competition.

Decision 291 of 1991 (Andean Community's Regime for the Common Treatment of Foreign Capital and Trademarks, Patents, Licensing Agreements and Royalties), issued by the Commission of the Cartagena Agreement. Includes competition rules for the registration of technology transfer and intellectual property licensing.

No information available

From April 21-25th 2008, the Andean Community Member Countries will be holding the Third Round of Negotiations for the establishment of an Association Agreement with the European Union.

Joint Committee EU-CAN Final Declaration Brussels, January 21, 2005

General Secretariat

Resolutions

Brazil, June, 2006
Interview by Roberto Pereira and editing staff of La ONDA digital of scientific politician Luis Moniz Bandeira
What does Brazil want with South America? (In Spanish)

Bogota-Colombia, January 30, 2006
Andean Market: Special segment of the daily newspaper La República of Colombia related to the Andean Community (In Spanish)

Lima-Peru, April 11, 2005
Competencia transparente en la Comunidad Andina (in Spanish)

Caracas-Venezuela, April 11, 2005
Comunidad Andina moderniza marco legal antimonopolio (in Spanish)

Lima-Peru, March 21, 2003
Modernization of Competition Law within CAN (in Spanish)

Lima-Peru, March 3, 2003
CAN country rules of competition to be harmonized
with European Union assistance

Lima-Peru, June 8, 2001
European cooperation for harmonizing rules
on free competition in the Andean region

No information available

Documents and Publications available at the Andean Competition Website

Publicaciones(In Spanish)

Andean Trade Pillar spokesman underscores progress of CAN-EU negotiations

Lima, April 11, 2008 - The spokesman for the Andean countries in the Trade Pillar of the negotiation of an Association Agreement between the Andean Community and the European Union, Eduardo Brandes, today reported that the first two rounds of those negotiations have progressed satisfactorily and that the Third Round, scheduled to take place in Quito, Ecuador on April 21 to 25, is expected to do also. For more information, refer to the Andean Competition Website

Andean countries enter final phase of preparations for the Third Round of Negotiations with the European Union

Lima, April 10, 2008.- Meetings of the Negotiating Groups on Political Dialogue and on Cooperation marked the beginning of the final phase of preparations by the Andean Community countries for the Third Round of Negotiations to reach an Association Agreement between the CAN and the EU that are slated to take place from April 21 to 25 in Quito, Ecuador. For more information, refer to the Andean Competition Website

CAN Secretary General points up the Latin American unity demonstrated in the Rio Group

Lima, March 7, 2008.- The Secretary General of the CAN, Freddy Ehlers, drew attention to the success of the Rio Group Summit where Colombia and Ecuador overcame their differences and the first step was taken toward their reconciliation through a handshake, in which Venezuela and Nicaragua joined. For more information, refer to the Andean Competition Website

CAN Secretary General hails OAS Resolution

Lima, March 6, 2008.- The Secretary General of the CAN, Freddy Ehlers, hailed the Resolution adopted yesterday by the Organization of American States (OAS) that opens the way to a settlement of the conflict between two “sister countries,” Colombia and Ecuador, and called it a positive advance. For more information, refer to the Andean Competition Website

Andean countries prepare for virtual Presidential Summit

Bogotá, Feb 14 (SP*). The Andean Community countries are seeking to hold a virtual Presidential Summit in which to undertake a major reform of the regional group, Freddy Ehlers, CAN Secretary General, reported at the conclusion of a meeting with the President of Colombia, Álvaro Uribe Vélez. For more information, refer to the Andean Competition Website

CAN-UE negotiations are analyzed from the viewpoint of the workers

Lima, Feb. 4, 08 - Representatives of more than a dozen trade union organizations of Bolivia, Colombia, Ecuador and Peru started today, during an international seminar, to examine the advances made in negotiating an Association Agreement between the Andean Community and the European Union and the different mechanisms for participation in it by the CAN’s Advisory Councils. For more information, refer to the Andean Competition Website

CAN economic and social indicators show positive performance in recent years

Lima, Jan. 21 08.- The economic and social performance of the Andean Community has been positive in recent years, according to a preliminary report on the principal indicators of the CAN countries over the 2004-2007 period. For more information, refer to the Andean Competition Website

CAN Statistics Officers direct efforts towards harmonizing social and environmental statistics

Lima, Jan. 21 08.- The Heads of the Statistics Institutes of the Andean Community countries announced that efforts at the Community level, which up to the moment have centered on economic issues, will henceforth be directed toward more comprehensive harmonization that will take in social, environmental and food security matters also. For more information, refer to the Andean Competition Website

Andean Business Council speaks out about the CAN crisis

Lima, April 27, 2006 - The Andean Business Advisory Council (CCEA),which groups together the five Andean countries’ most important business organizations and associations, today called upon the governments of the Member Countries to seek solutions to the current crisis in the Andean Community and backed the initiative to urgently convene a Presidential Summit. The call was made by Andean Business Advisory Council Chairman, José Luis Betancourt, from Venezuela, who held a press conference at the General Secretariat headquarters in Lima to reveal the Andean businessmen’s declaration about the present state of the Andean integration process. (5 May 2005). For more information, refer to the Andean Competition Website

CAN General Secretariat receives official communication of Venezuela’s withdrawal

Lima, April 22, 2006 - The General Secretariat of the Andean Community received a communication today at its Lima headquarters from Venezuelan Foreign Minister Alí Rodríguez Araque, formally reporting the country’s decision to repudiate the Cartagena Agreement, a fact that was confirmed by the Secretary General of that organization, Ambassador Allan Wagner Tizón. For more information, refer to the Andean Competition Website

The Andean Economic Community has founded a 'sub-regional competition authority (5 May 2005)

The Andean Competition Website reports all the main communication and member countries' news related to competition law (in Spanish).

Comunidad Andina de Naciones, Secretaría General
Eco. Graciela Ortiz
Gerente de Proyectos de Competencia
Paseo de la República 3895, Esq. Aramburú, San Isidro Lima 27 - Perú
Tel: (511) 41114 00
Fax: (511) 2213329
http://www.comunidadandina.org
gortiz@comunidadandina.org

Andean Community, General Secretariat

Andean Community, Tribunal of Justice

Andean Community, Competition Website

Breve análisis económico de la ley argentina de defensa de la competencia (In Spanish)

Laws (In Spanish)

Ley 25.156

Decrees (In Spanish)

Decreto 89/2001, Reglamentación de la Ley No.25.156

Decreto 396/2001, Modificación de la Ley 25.156

Resolutions (In Spanish)

Resolucion 164/2001, Lineamientos para el Control de las Concentraciones Económicas. Mercado relevante. Definición e identificación de las empresas que actúan en el mismo. Cálculo de la concentración y participaciones de mercado. Barreras a la entrada en el mercado relevante. Competencia proveniente de productos importados. Concentraciones verticales. Concentraciones de conglomerado. Esquema de análisis de una concentración económica

Legislacion on the Comisión Nacional de Defensa de la Competencia Website (In Spanish)

Template on Merger Notification Procedures

"Under the Argentina-Brazil Economic Integration and Cooperation Program, the governments of the two countries formalize their intent to establish a Program of Cooperation in Defense of Competition, in order to join national forces for their common benefit and to contribute to the effectiveness of competition policy within the context of MERCOSUR.

The type of cooperation that is the subject of this Memorandum will be coordinated, proposed, decided, and effected by CADE, for Brazil, and by the Argentine National Commission on the Defense of Competition.

In order to enjoy the benefits stemming from this Cooperation Program, the parties agree to:

1. Promote an exchange of information and experiences in the field of defense of competition.
2. Include the following in this Program:
(a) Exchanges of specific legislation, case law, and documentation;
(b) Human resources training programs;
(c) Exchange of information on topics related to competition policy;
(d) Creation of reciprocal cooperation mechanisms, including the seminars, courses, and exchanges of technical personnel;
(e) Bilateral meetings for discussion and decisions on topics related to the implementation of this Program."

Brazil: Report on Developments and Enforcement of Competition Policy and Laws (1994 - 1996)

Fusiones (Mergers)

Important Decisions

Conductas

Decisions

2006: "Argentina: The CNDC has an active year." Jorge Otamendi. Competition & antitrust review 2006, 8th ed., p. 36-40.

May 2005: Mendoza Courts Halt Second M&A Transaction contributed by Marval O'Farrell & Mairal

March 2005: Court Subordinates Transaction Approval to Creation of Antitrust Tribunal
by Marval O'Farrell & Mairal

Memoria Trianual 2002/2003/2004 (In Spanish)

Annual Report 2003 (In English and in Spanish)

Annual Report 1999-2000-2001 (In Spanish)

Annual Report 1998 (In Spanish)

Annual Report 1997 (In Spanish)

Report on Development and enforcement of Competition Policy and Laws- FTAA(Free Trade Area of Americas)- January/2003

Competition problems in the distribution of television programs in Argentina, February 2007

OECD Competition Law and Policy in Argentina, October 2006

Fourth Latin American Competition Forum, El Salvador (San Salvador) from 11-Jul-2006 to 12-Jul-2006

The Forum held in El Salvador on 11 and 12 July. The agenda included discussions on: i) the relationships between competition authorities and sectoral regulators in Latin America; ii) competition policy and the financial sector in Latin America; iii) using competition to lower the costs of remittances; and iv) a peer review of Argentina.

Comisión Nacional de Defensa de la Competencia
Ministerio de la Producción
Av. Julio A. Roca 651
4 Piso, CP: 1322
Buenos Aires
ARGENTINA

Tel: (5411) 4349-3480/4097, 4349-4104/4107
Fax: +5411 4349-4125
Email: cndc@minecon.gov.ar

Secretaría de la Competencia, la Desregulación y la Defensa del Consumidor
E-mail: scdydc@mecon.gov.ar

Sistema Nacional De Arbitraje De Consumo
Av. Julio A. Roca 651, planta baja, Sector 8
Buenos Aires C1067AAB
Argentina
Tel: +5411 4349-4170 / 71 / 72 / 75
E-mail: snac@minproduccion.gov.ar

Comisión Nacional de Defensa de la Competencia

Secretaría de la Competencia, la Desregulación y la Defensa del Consumidor del Ministerio de Economia y Produccion

In Bolivia the adoption of a competition law for all sectors is a major concern.

The regulation of five specific sectors of economic activity (essential services, electricity, hydrocarbons, transport, and telecommunications) is undertaken by separate superintendencies, overseen by the agency SIRESE (Sistema de Regulación Sectorial). Each Superintendence has multiple legal mandates, of which promoting and protecting competition is one. In particular, the law covering SIRESE contains a single paragraph on competition-related matters, and regulations implementing the latter have yet to be elaborated.

Moreover, even though some of the transportation-related sectors are regulated by SIRESE, the perceived degree of competition is no more intense than in the rest of the economy. The likely obstacles to the promotion of competition are:

The absence of an economy-wide competition law (which itself reflects a lack of appreciation of the benefits of competition within Bolivian society as a whole);
Little capacity to enforce the existing competition-related provisions in SIRESE's law.
Previous attempts in 1997, 2000 and 2003 to draft an economy-wide competition law were not successful. This may be due to the costs and bureaucratic implications of adopting such a law and the political conditions in recent years.

However, there is continued will on the part of the Bolivian authorities to undertake reforms in the field of competition law and policy.

No competition law yet in force. However the government is considering a Competition Law project. (in Spanish):
At present, draft Laws on competition and consumer protection are being prepared. Moreover, under the Andean Community Treaty, Bolivia is obliged to enact a competition law. However, given the uncertain political situation, the prospects that the new law will be adopted in such a short time cannot be guaranteed.

Legal Framework:

Political Constitution. Articles 134, 142 and 233

Investment Law

Sectoral Regulation Systems Law (Sirese). This Law provides an innovative and comprehensive approach toward competition for firms operating in the telecommunications, electricity, transportation, hydrocarbon, and water sectors. In these sectors, firms must operate according to principles of free competition and economic efficiency and, as in other competition laws of the region, conduct and merger transactions likely to restrict or distort competition are prohibited (OAS 1997b).

Andean Community

1. Decision 284 of 1991, issued by the Commission of the Cartagena Agreement containing rules and regulations for preventing or correcting distortions in competition caused by restrictions on exports.

2. Decision 285 of 1991, issued by the Commission of the Cartagena Agreement, on anti-competitive practices in the Andean Community (CAN) countries.

3. Decision 291 of 1991 (Andean Community's Regime for the Common Treatment of Foreign Capital and Trademarks, Patents, Licensing Agreements and Royalties), issued by the Commission of the Cartagena Agreement. Includes competition rules for the registration of technology transfer and intellectual property licensing.

4. Decision 486 of 2000, (Andean Community's Industrial Property Regime), issued by the Commission of the Cartagena Agreement. Title XVI contains provisions concerning intellectual property-related unfair competition practices.

For the Andean Community Competition Law Website, please click here

Bolivia - MERCOSUR

Bolivia - Mexico

COMPAL Global Annual Report 2005, COMPAL Programme: Projects for Bolivia, Costa Rica, El Salvador, Nicaragua and Peru (01/05/06)

Inventory of Domestic Laws and Regulations relating to Competition Policy in the Western Hemisphere- FTAA- Negotiating Group on Competition Policy- 2002

2007 Investment Climate Statement for Bolivia

2006 Investment Climate Statement for Bolivia

Competition and Consumer Protection Policies in Latin America: New UNCTAD Publication (In Spanish)

COMPAL in Bolivia:
In Bolivia the adoption of a Competition Law for all sectors is a major concern. The COMPAL programme is a three-year Phase II Technical Assistance Programme on Competition and Consumer Protection Policies for Latin America supported by SECO (Switzerland). This programme will assist Nicaragua, Costa Rica, El Salvador, Peru and Bolivia. For more information, refer to UNCTAD COMPAL Website

The COMPAL Programme Project for Bolivia will concentrate its efforts on strengthening the enforcement capacities of the five Superintendencies (which constitute SIRESE) with a view to challenging existing anticompetitive practices. It is understood that the proposed measures will contribute to raising awareness of the benefits of adopting a comprehensive competition law and will complement efforts carried out through technical assistance.

It is worth noting that the Project for Bolivia foresees the possibility of supporting some activities once the Competition Law comes into existence.

Ministerio de Desarollo Económico
Viceministerio de Industria y Comercio Interno
Avda. Camacho 1488
Casila Postal 4430
La Paz
BOLIVIA

Tel: (5912) 372042/3/4
Fax: (5912) 370936

No information available

Text book of the Administrative Council for Economic Defense - CADE

Cartilha do Conselho Administrativo de Defesa Econômica - CADE (In Portuguese)

Introduction to the Competition Law in Brazil by Vicente Bagnoli, Lawyer, Master in Political and Economical Law by the Presbyterian University Mackenzie and Teacher of the Masters Degree in Law of the Presbyterian University Mackenzie, São Paulo, Brazil, e-mail: bagnoli@mackenzie.com.br

2005 draft Competition Law (-forthcoming-). President Lula presented the bill, officially, on 1 September, 2005. Its changes could be in place by next year. For a comparison of current provisions with proposed amendments, please click here.

Laws (In Portuguese)

Resolutions (In Portuguese)

La No. 11.482, 31 May 2007 (In Portugese)

Law No. 8884, 11 June 1994 (Please note that this law was modified by Law NO.10149/2000)

Law No. 10149 of 21st December, 2000
(Law introducing amendments to the original Law)

Brazilian Antitrust Law

Amendment made to the Antitrust Law to introduce the Brazilian Settlement Program in May 2007

Regulation of Leniency Program

CADE Resolution 15/98, which regulates CADE procedures and formalities applicable to
concentration acts.

CADE Resolution 18/98, which regulates CADE procedures and formalities on competition issues.

CADE Resolution 12/98, approves the Internal Rules of the Administrative Council of
Economic Defense — CADE

Seae - SDE Merger Guidelines

Summary of Merger Control Regulations in Brazil. Guidelines on the abbreviated proceedings that have been adopted by the Brazilian Antitrust Agencies (In Portuguese)

Merger Notification and Procedures Template

Horizontal Merger Guidelines

Leniency Policy Interpretation Guidelines

ICN Anti-Cartel Enforcement Template 2005

No information Available

United States of America

U.S. - Brazil Cooperation Agreement (26/10/99)

"...The mere enactment of a competition law is not enough to assure that markets will function well. World trade and welfare will only increase if national laws are implemented observing the principles of transparency and nondiscrimination among nations. This is why technical assistance should focus on institution building. It is less important to write new laws than to promote new, modern, independent, and transparent competition agencies. This is in line with the Panama Declaration, which resulted from the meeting of all competition agencies of the Americas in October 1998. The document expresses the participants' intention to "cooperate with one another, consistently with their respective laws, to maximize the efficacy and the efficiency of the enforcement of each country's laws, and to help disseminate the best practices for the implementation of competition policies, with emphasis on institutional transparency..."

The Group on Trade and Competition of the World Trade Organization (WTO) has also proved to be very useful for benchmarking and disseminating competition policy among the developing countries.

(Antitrust Policy in Brazil: Recent Trends and challenges Ahead: By Gesner Oliveira, Professor, Getulio Vargas Foundation in São Paulo, and President of CADE)

"Under the Argentina-Brazil Economic Integration and Cooperation Program, the governments of the two countries formalize their intent to establish a Program of Cooperation in Defense of Competition, in order to join national forces for their common benefit and to contribute to the effectiveness of competition policy within the context of MERCOSUR.

The type of cooperation that is the subject of this Memorandum will be coordinated, proposed, decided, and effected by CADE, for Brazil, and by the Argentine National Commission on the Defense of Competition.

In order to enjoy the benefits stemming from this Cooperation Program, the parties agree to:
1. Promote an exchange of information and experiences in the field of defense of competition.
2. Include the following in this Program:
(a) Exchanges of specific legislation, case law, and documentation;
(b) Human resources training programs;
(c) Exchange of information on topics related to competition policy;
(d) Creation of reciprocal cooperation mechanisms, including the seminars, courses, and exchanges of technical personnel;
(e) Bilateral meetings for discussion and decisions on topics related to the implementation of this Program."

Brazil: Report on Developments and Enforcement of Competition Policy and Laws (1994 - 1996)

Russia

Bilateral Agreement Between Russia and Brazil

Decisions
CADE’s decisions are subject to judicial review. However, limited competition experience and slowness on the part of Brazilian courts have meant that few CADE decisions have been referred to the courts. Thus, an overwhelming majority of recent merger cases have been approved after the first stage review (approx. 95%). In reality, only mergers resulting in a market share close to 100% have been subject to conditions. In fact, CADE has never completely blocked any merger.

Procedures
The competition authorities have 120 days to issue a decision. If CADE does not issue an opinion within this time, unless it requests additional information, the transaction is considered tacitly approved. In practice, a simple transaction may be approved within four months, but a complex submission will usually take more than six months.

In 1998, CADE introduced a two-stage system whereby straightforward cases are identified and resolved quickly . Efficiency defenses have to be considered only if harm to competition is deemed likely as a result of the transaction. If a transaction is neutral in terms of competition, it is approved without further considerations. Consequently, only a minority of more complex cases will require a second request for more detailed information. This, and other measures, has reduced the average waiting period significantly.

Failure to adhere to CADE’s guidelines for the submission of a notification of a transaction could result in a fine ranging from BRR 60,000.00 to BRR 6 million (approx. US$ 15,000 to US$ 3,000,000).

Competition Law in Brazil
By Johan A. Åkerud
Boccuzzi e Duarte Advogados Associados

Important cases by the Brazilian Competition Website

Pareceres 2005

Pareceres 2004

Pareceres 2003

Clipping 04 sept 2003

Brazil Peer Review of Competition Law and Policy (OECD) 2005

Annual Report on Competition Policy Developments in Brazil (OECD) 2005

Annual Report on Competition Policy Developments in Brazil (OECD) 2004

Annual Report on Competition Policy Developments in Brazil (OECD) 2003

Annual Report on Competition Policy Developments in Brazil (OECD) 2002

Annual Report on Competition Policy Developments in Brazil (OECD) 2001

Annual Report on Competition Policy Developments in Brazil (OECD) 2000

Annual Report on Competition Policy Developments in Brazil (OECD) 1999

Annual Report 2001-2006

Report on Development and enforcement of Competition Policy and Laws- FTAA (Free Trade Area of Americas)- January/2003

Inventory of Domestic Laws and Regulations relating to Competition Policy in the Western Hemisphere- FTAA- Negotiating Group on Competition Policy- 2002

Competition Law and Policy in Latin America (OECD) November 2006

Policy Brief: Competition Law and Policy in Brazil (OECD) September 2005

Antitrust Policy in Brazil: Recent trends and challenges ahead: By Gesner Oliveira, Professor, Getulio Vargas Foundation in São Paulo, and President of CADE

Report on developments and enforcement of Competition policy and laws in the Western hemisphere

OECD: Competition Law and Policy in Brazil -The substantive provisions of Brazil’s competition law appear in three articles (September 2005)

Improvement on Brazilian Antitrust Practice by Alessandro Marius Oliveira Martins, Associado, Antitruste e Imigração, Trench, Rossi e Watanabe Advogados

Brazilian Competition Website Website:

Papers

Working Papers

SEAE (Secretariat for Economic Monitoring)

Papers

Working Papers

SDE launches Leniency Policy Interpretation Guidelines, 18 February 2008

SDE and the Federal Police signs cooperation agreement to crack cartels, 3 January 2008

President Lula Presents the Bill of the New Competition Law
President Lula presented the new bill that reforms the Brazilian Competition Policy System (BCPS) For more information, refer to the Secretaria de Acompanhamento Econômico (SEAE) Website

Conselho Administrativo de Defesa Econômica (CADE)
Ministério da Justica
Setor Comercial Norte-SCN
Quadra 2, Projecão C
CEP 70712-9020 Brasília DF
BRAZIL

Tel.: (5561) 426 8599
Fax: (5561) 328 5523
E-mail: cade@cade.gov.br
Website: www.cade.gove.br

Secretaria de Dereito Economico
(Secretariat of Economic Law)
Esplanada dos Ministérios, Bloco "T", 5 andar
CEP 70064-900 Brasilia DF
BRAZIL

Tel.: (5561) 429 3112/3409
E-mail: sde@mj.gov.br
Website: www.mj.gov.br/sde

Secretaria de Acompanhamento Econômico (SEAE)
(Secretariat for Economic Monitoring)
Ministry of Finance
Esplanada dos Ministérios, Bloco "P", sala 307
CEP 70048-900 Brasilia DF
BRAZIL

Tel.: (5561) 412 2360
Fax: (5561) 225 0971
E-mail: seae@fazenda.gov.br
Website: www.fazenda.gov.br/seae

Conselho Administrativo de Defesa Econômica - CADE

Secretaria de Direito Econômico - SDE

Secretaria de Acompanhamento Econômico - SEAE

The Chilean system of protection of Competition in markets is integrated by The Tribunal for the Defense of Free Competition and The Economic National Prosecutor's Office. The Government, through such institutions, execute the role of prevention, investigation and sanction of the conducts against the legislation of defence of Competition. The Decree-Law 211 of 1973,which text has been revised, coordinated and systematized by DFL n.1 of 2005, is the legal framework of this system.

Constitution. Article 19 (21) and (22) (In Spanish)

DFL N°1 del año 2005 del Ministerio de Economía, Fomento y Reconstrucción que fija el texto refundido, coordinado y sistematizado del DL N° 211 de 1973 (DFL n.1 of 2005 issued by the Ministry of Economy which establishes the revised, coordinated and systematized text of DL n. 211 of 1973) (in Spanish)

Agreements/Treaties

Acuerdo entre la Comisión Federal de Competencia de los Estados Unidos Mexicanos y la Fiscalía Nacional Económica de Chile sobre la aplicación de su legislación en materia de competencia (Agreement between the Federal Competence Commission of Mexico and the Economic National Prosecutor Office of Chile regarding the application of their competition laws) (14-06-04)

Memorándum de Entendimiento en materia de defensa de la competencia entre el Ministerio de Economía, Industria y Comercio de la República de Costa Rica y la Fiscalía Nacional Económica de Chile. (Memorandum of Understanding between the Ministery of Economy, Industry and Commerce of the Republic of Costa Rica and the Economic National Prosecutor Office of Chile regarding issues of defence of competition) (06-08-2003)

Memorándum de Entendimiento entre el Comisionado de Competencia (Canadá) y el Fiscal Nacional Económico (Chile) relativo a la aplicación de sus respectivas leyes de competencia (17-12-2001) (in Spanish)

Memorandum of Understanding between the Commissioner of Competition (Canada) and the Fiscal Naiconal Economico regarding the application of their competition laws (17-12-2001) (in English)

Free Trade Agreement with the US, Chapter 16, Competition Policy, Designated Monopolies and State Enterprises

Free Trade Agreement with Korea, Chapter 14, Competition Policy

Free Trade Agreement with the European Union, Chapter VII, Competition (In Spanish)

Free Trade Agreement with Mexico, Chapter 14. Competition policy, monopolies and state enterprises (In Spanish)

Free Trade Agreement with Canada , Chapter J, Competition Policy, Monopolies and State Enterprises

Free Trade Agreement with Japan, Chapter 14, Competition

Free Trade Agreement with Chile, Chapter VI, Competition Policy

Tribunal de Defensa de la Libre Competencia (Tribunal for the Defense of Free Competition)

Sentencias

Resoluciones

Informes de Ley de Prensa (in Spanish)

Report on Development and enforcement of Competition Policy and Laws- FTAA(Free Trade Area of Americas)- January/2003

Inventory of Domestic Laws and Regulations relating to Competition Policy in the Western Hemisphere- FTAA- Negotiating Group on Competition Policy- 2002

Chilean System for the Defence of Free Competition: Is there a need for previous authorisation for approval of mergers? By Rodrigo Ferrada and Nicole Nehme, published in Gaceta Jurídica No. 240, 2005 www.gacetajuridica.com (In Spanish)

Competition Law and Policy in Chile: A Peer Review 21-Jan-2004 This report, which provides an overview of competition law and policy in Chile, was the basis of an in-depth peer review at the first meeting of the OECD/IDB Latin American Competition Forum on 7-8 April 2003.

Loreto Bresky, Associate of Albagli, Zaliasnik & Cïa, Chile Un Avance Importante published in El Mercurio, September 2005 (In Spanish).

Ferrada Nehme Newsletter CoRe (Competition and Regulation).

18 December 2007:The lower house of the Chilean Congress approved and passed to the Senate a bill that reforms the Anti-trust law (taken from Practical Law Company) Official press release (in Spanish)

February 2007: A new Chilean law on unfair competition has come into effect which expressly defines what should be understood as 'unfair competition acts' (taken from Practical Law Company)Further information on the new law can be found at Biblioteca del Congresso Nacional del Chile (in Spanish)

President Bachelet's announces proposal to amend the Competition Law in Chile, June 7, 2006 (In Spanish).

Tribunal de Defensa de la Libre Competencia News - Noticias

Fiscalia Nacional Economica News

Biblioteca del Congreso Nacional de Chile News

Fiscalia Nacional Economica
(Economic National Procecutor's Office)
Agustinas 853, Pisos 2 y 12
Santiago
CHILE

Tel: (562) 753 56 00
Fax: (562) 753 56 07/08
E-mail: MSalamanca@fne.cl

Tribunal de Defensa de la Libre Competencia (Tribunal for the Defense of Free Competition)
Agustinas 640, Piso 19
Santiago
CHILE

Tel: (562) 753 83 00
Fax: (562) 753 83 03

Ministry of Economy (Ministerio de Economia) Gobierno del Chile

National Congress Library (Biblioteca del Congresso Nacional del Chile)

Fiscalia Nacional Economica (Economic National Prosecutor's Office)

Tribunal de Defensa de la Libre Competencia

Free economic competition in Colombia enjoys constitutional status. Established for the first time in 1991 Colombia's Political Constitution as an specific economic right , free economic competition grants everyone the right to participate in the markets in equal conditions, and confers on consumers the right to opt for goods and services in conditions of free competition. The Colombian State has the constitutional obligation to prevent the obstruction or restriction of economic freedom, and to impede or control individuals or companies from abusing their dominant position in the national market.

At present, consumer welfare improvement is considered the main objective of Colombia's competition policy. Hence, with the enforcement of free competition provisions the State seeks the improvement of national production, the free participation of enterprises in the national market, and a greater variety of prices and qualities of goods and services for consumers.

Notwithstanding competition legislation in Colombia dates back to 1959, the fundamental application of competition policy was not truly initiated until the 1991 Constitution incorporated the right to free competition and the Government issued the Decree 2153 of 1992, by which pro-competition legislation was updated and the Superintendence of Industry and Commerce (SIC) was restructured.

The Superintendence of Industry and Commerce (SIC) is a high administrative authority in charge of the protection of economic public order and the preservation of free and loyal competition. SIC has also judicial a