After the Easter break and following consensus was reached at a technical table, deputies from different groups yesterday began the discussion of initiative 5074, Competition Law, which the plenary session of the Congress of the Republic heard in its first reading.
This is the creation of a new legal framework in Guatemala that will regulate competition practices, since there is a lack of specific legislation, which has been a constant demand of economic agents, apart from being a requirement to be met, according to current trade agreements. with the outside.
As part of the process, the second reading was scheduled for next week and it is expected that the third reading, final draft and approval by articles will be reached shortly, considering that it already has the favorable opinion of the Economy Commission, and in In the first quarter of the year the issue has been on the public agenda.
What does it consist of?
According to the opinion, the fundamental objective of the law is to promote and defend free competition, to strengthen economic efficiency in the pursuit of consumer well-being.
On the other hand, prevent, investigate, combat, pursue and sanction anti-competitive practices, irregular concentrations and other restrictions on the efficient functioning of markets, for the benefit of consumers, the text states.
The document indicates that the initiative focuses on the defense and promotion of free competition and defines anti-competitive practices, which are divided into absolute and relative, explaining the cases in which such practices can occur, which must be verified by the competition authority. .
Legal framework for business
The president of the advisory council of the Institute for Economic Competitiveness (ICE), Javier Nuñez, commented that the regulations are the door to the economic and productive relationship, aimed at future discussion.
“In the business environment, this type of regulatory instruments are adopted in best international practices and competition is an issue that is increasingly in demand to carry out international business and attract capital flows, which generates benefits for consumers,” he stated. .
Regarding the key points of competition regulations, Nuñez stressed that the first thing is always to define the objective, and from this, the faculties begin to be established, as well as the powers that may derive from legislation of this type. In that sense, he assured that the goal to be achieved is to improve the Guatemalan economy, from the point of view of efficiency.
While Ignacio De León, an international expert on the subject who was recently in Guatemala, emphasized that legislation that allows the promotion of the free market is only part of everything that is required to attract productive investments to the country.
In any case, he clarified that competition as an economic phenomenon brings benefits to the entire society because it creates a favorable environment for companies to innovate and that favors economic growth.
“Guatemala might make a lot of progress in the implementation of policies that promote competition in the markets, despite the fact that it already has significant progress, if the country’s situation is compared to what it was 30 years ago, when there was still no trade reform. and tariffs were around 150%. A lot of progress has been made,” she said.
In his opinion, other important steps might also be taken, such as greater assurance of property rights, especially those that are violated, while progress is made in identifying barriers that limit transportation or investment, for the transportation business. nearshoring.
“Guatemala might have many opportunities, but all of this is part of a discussion that goes far beyond adopting legislation to supposedly promote competition,” he concluded.
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