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Vol. 1, N° 2, Summer 1994 EC COMPETITION POLICY NEWSLETTER PAGE 59

It was agreed that trade between the European Union and

Russia should take place free of unfair competition. The

parties have committed themselves to remedy or remove

through the application of their competition law or otherwise

restrictions on competition by enterprises or those caused by

state intervention. For the latter point there should be no

export aids favouring certain undertakings or the production

of products other than primary products. Furthermore, after

a transitional period of three years starting with the entry

into force of the PCA, strict discipline will be applicable to

other aids which distort or threaten to distort competition

affecting trade.

For a transitional period of five years starting with the entry

into force of the PCA, Russia has the right to use aids other

than export aids in order to support enterprises that are

undergoing restructuring, or those that are facing serious

difficulties, particularly when these difficulties entail serious

problems in Russia. A deviation from strict prohibition of

aids, other than direct export aids, is also possible in

situations where Russian enterprises face the elimination or

a drastic reduction of their total market shares or when

industries are just emerging.

In the case of State monopolies of a commercial character,

after a transitional period of three years, there shall be no

discrimination between nationals of the parties regarding the

conditions under which goods are procured or marketed.

Public undertakings or undertakings to which Member States

or Russia grant exclusive rights will also be subject to

competition rules.

The possibility is envisaged that these transitional periods

may be extended. The Cooperation Committee will be the

forum for consultation and information on competition rules.

The European Union has committed itself to providing

Russia with information on competition and with technical

assistance for the development and implementation of

competition rules.

It should be added that competition is one of the areas

covered by the obligation of approximation of legislation.

c) Other

NIS

Regarding Ukraine, a PCA similar to the one with Russia

was already signed earlier in 1994. The competition rules

contained therein are also similar to those concluded with

Russia.

Negotiations with Kazakhstan

and Kyrgyzstan have also led

in 1994 to the conclusion of PCAs. With respect to

competition rules it is foreseen that there shall be

approximation of legislation on the part of Kazakhstan and

Kyrgyzstan. Parties have further agreed that they shall

endeavour to use their competition laws on a concerted basis

in such cases where trade between them is affected.

III. Conclusion

This summary shows that competition rules are being

introduced in a modulated manner according to the degree of

integration of the partner's economy in the European Union

economy.

This should offer a recognisable legal environment for all

economic agents in the Union and in its partner countries.

The question arises now to examine whether the same logic

could be followed at a world-wide scale.

SECOND SEMINAR ON EUROPEAN UNION/JAPAN COMPETITION POLICY - BRUSSELS CONGRESS

CENTRE - FRIDAY 16 SEPTEMBER 1994

European Commissioner, Mr Karel Van Miert and

Japanese Fair Trade Commission Chairman, Mr Masami

Kogayu, are pleased to preside a Seminar on competition

issues to be held on September 16, 1994 in Brussels. This

Seminar is a follow-up to the one on competition policy held

in Tokyo on November 4, 1993 which compared the European

Union and Japanese approaches to a number of competition

issues which have particular relevance to international trade.

New challenges to competition policy have arisen with the

increasing globalization of the world economy. The growth of

international trade in goods and services, the increase in

foreign direct investment, the rising importance of

multinational companies, and the increasing operations of

private actors mean that events taking place in one market

sphere affect the competitivie situation in other market

spheres around the world.

Despite the important progress that has been attained in the

reduction of public obstacles to trade by the successive rounds

of the GATT, including the recent closure of Uruguay Round,

private restraints to trade have not been addressed. Private

restraints are being increasingly used to protect markets and

are just as damaging to free trade as are public restraints.

Therefore, bilateral cooperation in eliminating private

restraints would provide a secure framework for agreement on

competition issues until a multilateral accord is negotiated.

The Seminar scheduled for September 16, 1994, will allow

the European Union and the Japanese authorities to share their

experiences on competition policy and enforcement issues.

The Seminar will focus on important topics of concern to both

parties, namely 1) enforcement of competition laws and

deregulation, and 2) distribution problems.

Enforcement and deregulation issues will cover the impact

of competition policy on industry by addressing :

1. The effective implementation of existing regulations and,

2. The reinforcement of regulations and the extension of their

scope to all economic activity.

The topic of distribution will address how competition

policy can and must continue to improve distribution for the

benefit of consumers and to enhance the integration of

national economies. The speakers on these issues will be

representatives from both competition authorities but also

from all interested parties such as industry, consumer

associations, European Parliament and academic circles.

IP/94/647

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