The conversations, meetings and agreements to discuss a competition law began with the Ministry of Economy (Mineco), and the structure of a “dialogue” of how a new proposal or existing ones already advanced in Congress will be constructed, some of it is rescued. , fits or adapts, depending on the official position.
This Wednesday, February 28, convened by the National Business Council (CNE) and Oxfam, the President of the Republic, Bernardo Arévalo and the Minister of Economy, Gabriela García-Quinn, participated in a conference on the foundations for a competition law.
Minister García-Quinn announced that these are the two guidelines that are being explored to reach a competition law. Meanwhile, the specific commission installed in Congress for this issue will be in charge of guiding efforts “so that we are all in order,” with more structure between the public and private sectors.
Start of dialogue
The official commented that all sectors would be called to be able to participate in the dialogue, and regarding the timing of the results of a preliminary approach, “the ideal scenario, considering that a structuring of the entity that manages or has can be reached. “We are in charge of implementing a competition law, our goal is to have a consensus law that is brought to Congress in June.”
The Government’s approach is that by 2025 competition regulations will already be in operation, while an entire regulatory structure process is concluded.
He clarified that since there is no competition law, there is no starting point or lesson learned, “but you have to understand the modalities of similar countries, and a law that works in the context of the country.”
In any case, he pointed out that it has to be a fair, adequate law that allows what is sought, which is free competition, and reiterated that consensus must be reached on what is best for the country, in the sense that if there is a preference by a new law or some of the initiatives you previously addressed will be rescued.
“Our goal is to have something in June, a consensual law that is brought to Congress”
Gabriela García-Quinn, Minister of Economy
“What should be a clear message is that it is a permanent dialogue between all sectors,” he assured.
President Bernardo Arévalo declared that, in Congress, the block of deputies and their allies have reached an agreement to form a special commission to carry out the discussion of a law, without privileges, without unjustified exceptions, and to provide the society and the State the necessary tools to guarantee equal opportunities and market efficiency through a solid and independent competition authority.
“I have full confidence that this commission has the capacity to promote the competition law that Guatemala needs to catch up with other economies in the world, and finally unleash the enormous potential of our ingenuity, effort and work,” he noted during a public event.
The idea is to create the conditions for people and companies to generate prosperity in a fair and inclusive way, and for society as a whole to reach higher levels of well-being.
Positions
Paul Boteo, executive director of the Libertad y Desarrollo Foundation, and José Andrés Ardón, executive director of the Institute for Economic Competitiveness (ICE), expressed positions related to the beginning of the dialogue between the different sectors and provided perspectives on what may be on the table. installed in Congress.
Boteo considers that when talking regarding a competition law there is no ideal world, but rather understanding how the de facto market works, and from there, it will be found that certain industries, due to economies of scale, will find markets where they will operate few. He exemplified the aviation industry in which there are two large companies that compete as ship producers, and the same will happen with the telecommunications sector with very few operators that is repeated in each of the countries; the steel industry, it will be the same.
We must assume that there are markets in which we will operate with economies of scale, and that does not mean that there is competition, and there might be few operators competing within them.
In his opinion, if there is going to be a competition law, what has to be combated are anti-competitive practices, such as, for example, exclusivity contracts, and other issues that place the consumer at disadvantages, with respect to companies, small companies. with respect to large companies, but regulations should not aspire to a model where there will be many companies in each of the markets.
A second point is that the issue should not be treated from a criminal point of view, which is something of the past, as happened in Chile, but it has occurred from an administrative point of view, which is something important that has to be handled. .
The third observation is that the competition office must be designed with a scale of debate that we must have as Guatemalans, to ensure that it has true independence, that it is not a political instrument, so that arbitrary decisions can be presented, due to institutional fragility. .
For Ardón, there is increasing traction to begin the discussion of a competition law and the formation of the specific table to analyze and understand in more depth, address the technical and achieve consensus. At the social level, there are increasing pronouncements from both the organized private and public sectors to promote discussion on technical issues as it should be.
“It is an extremely technical, complex issue that has already been covered and is worth doing well”
José Andrés Ardón, executive director of ICE
Regarding the results expected from this specific table, the director of ICE emphasized that the main thing that should be focused on is listening to different sectors and institutions, to be able to make observations, what principles, what best practices and recommendations a bill should contain. .
He clarified that this commission will not have the power to issue an opinion, and will not review a particular initiative, but simply to listen to the different sectors, achieve a series of consensuses, and a summary of those points can emerge. that can be prioritized so that the law has.
In any case, he stated that a new bill would be presented in the middle of the year, by the Executive Body, based on the ideas that are collected on the table and finish providing the final adjustments to the initiative, which can be channeled through of the Congressional Economic Commission, for a new opinion.
“It is an extremely technical, complex issue that has already been covered and it is worth doing it well,” he concluded.
Opening with all sectors
Independent deputy Samuel Pérez Álvarez, who chairs the aforementioned working group, explained that a work schedule was established and one of the first tasks is to have an inventory of other initiatives on competition law.
People who have experience in promoting the issue of competitiveness will also be invited to provide an overview, coordination with Mineco to obtain a consensual model, to present a new bill or to work with existing ones.
He stated that openness will be maintained with the organized private sector to listen to their proposals, and collect the positions of the social, economic, political sectors, among others, in order to reach consensus.
He reiterated that at the end of the year a recommendation would be presented to Congress as to whether new regulations are presented or those already addressed are resumed.
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