Theoretical and Applied Economics (Sep 2023)
Competition policies and legislation regarding the European-Asian economic corridors
Abstract
Competition policy has become an important issue in the context of global trade and capital liberalisation processes over the past decade. The set of rules is established on several levels (at national level or at group level in the case of trade or financial unions, but also taking into account the sectors of activity taken individually). The average level of duty on imports decreased significantly and various non-tariff restrictions were removed. However, trade barriers put in place by private parties have remained largely unaddressed, even though these trade practices can distort trade and investment flows and lead to conflicts between countries. Competition policy refers to anti-competitive business practices (sometimes referred to as restrictive business practices). Competition laws were first introduced in the United States and later in European countries. Latin American countries have recently adopted competition laws. The subject is complex and interdisciplinary. It brings together the areas of international law, company law, industrial organisation, innovation policy, transnational corporations, international trade and transport. Competition policy aims to prevent undertakings from reducing the efficiency of market mechanisms. The aim is to discourage undertakings from forming cartels or monopolies and abusing a dominant position, and to ensure that mergers and acquisitions are subject to adequate control. These practices often limit competition and remove incentives for excellence, innovation, price reductions and improved customer service. Anti-competitive practices can also act as barriers to trade, distorting trade and investment flows. They can reduce global prosperity and lead to conflicts between countries. Therefore, some kind of international agreement may be needed to prevent or remove these new types of trade barriers.
