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• W83944141 abstract "The growth and development of free trade agreements (FTAs) as well as other types of regional trade arrangements has in recent years produced strong expectations for these arrangements. Following conclusion of Uruguay Round in Marrakesh, attention of many has shifted somewhat to these regional relationships as a likely basis for future steps forward on a range of issues, including trade in services, telecommunications, financial services, customs procedures, standards and conformance, and government procurement.(1) Given growing interest in future role of FTAs and regional trading blocs, paper by Richard O. Cunningham and Anthony J. LaRocca is a thoughtful discussion of potential for competition policy harmonization within regional trade arrangements, as well as a useful starting point for debate and analysis.(2) Part I of this Comment identifies four prerequisite issues that Cunningham and LaRocca do not address but which must be examined prior to any harmonization of competition policy. Part II will discuss authors' analysis of predatory pricing, and Part III will refute in general idea that competition law policies should replace trade law policies, either within or outside free trade areas.(3) I. UNDERLYING ISSUES IN THE HARMONIZATION OF COMPETITION LAW Within North American Free Trade Agreement (NAFTA) countries, expectations about potential for competition policy harmonization have been driven in part by Article 1504 of NAFTA, which establishes a Working Group on Trade and Competition.(4) This group is charged with examining the relationship between competition laws and policies and trade in free trade area.(5) Cunningham and LaRocca begin by discussing three levels at which harmonization of competition policies can occur: harmonization of substantive law, harmonization of procedural requirements, and harmonization of enforcement practices. While such tripartite analysis may be appropriate, it is premature without first considering and reaching agreement on certain core questions. First, it is important to consider what mode of enforcement should underlie various competition policies. Substantive law, procedural requirements, and enforcement practices of competition law will vary significantly depending on whether a policy is designed to regulate conduct, to deter highly objectionable conduct, or to compensate parties for harm incurred. Therefore, harmonization of any of three areas identified by Cunningham and LaRocca requires that there first be recognition of modes of enforcement underlying competition policies. Much of existing U.S. antitrust law focuses on deterring conduct through threat of criminal penalties and civil fines and compensating harmed parties through private rights of action. If, by contrast, regulating conduct were focus of antitrust law, substantive legal standards would be different and procedural rules would be less demanding. U.S. antidumping laws, for example, focus on regulating injurious conduct, and they do not impose criminal penalties or provide compensation to injured parties. As a result, perhaps, of these different modes of enforcement, substantive legal standards and procedural rules under antidumping laws vary significantly from those under antitrust law. Where competition policies are enforced in different ways, differing substantive legal standards and procedural rules may well be appropriate. Where criminal sanctions are not available and conduct is only being regulated, for example, substantive standard might focus on whether questioned conduct involves sales below full cost; where criminal sanctions are threatened, conduct might be actionable only where there is no economic justification (e.g., sales below marginal cost). Similarly, due process protections are presumably of greater concern where criminal sanctions or civil penalties are being imposed than where conduct is simply being regulated. …" @default.
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• W83944141 title "Trade Law and Competition Policy in Regional Trade Arrangements" @default.
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