MAIN LEGAL SUPPORT TO COMPETITION

1. MAIN LEGAL SUPPORT TO COMPETITION

2. Customers & Quotas National type approval regulation-British safety and technical standards. 1981 Cassis de Dijon Rewe Zentral against German Federal Monopoly Administration Asterix & Cleopatre Art.36 Cartels & Monopoles Grunding-Consten Territorial Protection Nintendo Case Check Point Case ILLUSTRATIVE CASES

3. Governmental aid Tax Discrimination Schul Case Import to Holland from Monaco of second hand yacht

4. Article 81 (ex Article 85)   1. The following shall be prohibited as incompatible with the common market: all agreements between undertakings, decisions by associations of undertakings and concerted practices which may affect trade between Member States and which have as their object or effect the prevention, restriction or distortion of competition within the common market, and in particular those which:

5. (a) directly or indirectly fix purchase or selling prices or any other trading conditions;  (b) limit or control production, markets, technical development, or investment;  (c) share markets or sources of supply;  (d) apply dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage; (e) make the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

6. 2. Any agreements or decisions prohibited pursuant to this Article shall be automatically void.  3. The provisions of paragraph 1 may, however, be declared inapplicable in the case of:  — any agreement or category of agreements between undertakings;  — any decision or category of decisions by associations of undertakings;  — any concerted practice or category of concerted practices,

7. which contributes to improving the production or distribution of goods or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefit, and which does not:  (a) impose on the undertakings concerned restrictions which are not indispensable to the attainment of these objectives;  (b) afford such undertakings the possibility of eliminating competition in respect of a substantial part of the products in question.

8. Article 82 (ex Article 86)  Any abuse by one or more undertakings of a dominant position within the common market or in a substantial part of it shall be prohibited as incompatible with the common market insofar as it may affect trade between Member States.  Such abuse may, in particular, consist in:  (a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions;  (b) limiting production, markets or technical development to the prejudice of consumers;

9. (c) applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage; (d) making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

11. EU-ISRAEL ASSOCIATION AGREEMENT • PRINCIPLES • Political Dialogue (I) • Expansion of Trade in Goods (II) and Services • Progressive Liberalization of Public Procurements • Progressive Liberalization of Capital Movement • Intensification of Cooperation in Science & Technology • Encourage Regional Cooperation

12. Title III: Right of Establishment & Supply of Services • Title IV: Capital Movement, Payments, Public Procurement, Competition & Intellectual Property • Title V: Scientific & Technological Cooperation • Title VI: Economic Cooperation • Title VII: Cooperation on Audiovisual & Cultural Matter, Information & Communication • Title VIII: Social Matters

13. 12. NAFTA Agreement

14. NORTH AMERICAN FREE TRADE AGREEMENT January 1994 • OBJECTIVES • Eliminates Barriers to Trade • Promote Conditions of Fair Competition • Increase Investment Opportunities • Provide Protection of Intellectual Property • MOTIVATIONS • GATT Dissatisfaction Progress • EU Expansion • Attract Investments • Promote International Trade

15. OBJECTIVES • eliminate barriers to trade in, and facilitate the cross-border movement of goods and services between the territories of the Parties; • promote conditions of fair competition in the free trade area; • increase substantially investment opportunities in the territories of the Parties; • provide adequate and effective protection and enforcement of intellectual property rights in each Party's territory; • create effective procedures for the implementation and application of this Agreement, for its joint administration and for the resolution of disputes; and • establish a framework for further trilateral, regional and multilateral cooperation to expand and enhance the benefits of this Agreement."

16. Under the North American Free Trade Agreement (NAFTA), tariffs on virtually all originating goods traded between Canada and Mexico will be eliminated by 2003. Tariffs on qualifying goods traded between Canada and the United States became duty free on January 1, 1998.

17. OPERATIONS • Commission for Environment • Commission for Cooperation • (Montreal) • Commission for Labor Cooperation( Dallas) • North American Bank (San Antonio) • Working Groups • CONTENT • Trade In Agriculture • Fifteen Years Transition • Trade in Services, Telecommunication, Finance • Competition Policy • Intellectual Property • Rules of Origin

18. North American Free Trade Agreement PART ONE: GENERAL PART Chapter One: ObjectivesChapter Two: General DefinitionsPART TWO: TRADE IN GOODS Chapter Three:National Treatment and Market Access for GoodsAnnex 300-A: Trade and Investment in the Automotive SectorAnnex 300-B: Textile and Apparel Goods

19. Chapter Four:Rules of OriginChapter Five: Customs ProceduresChapter Six: Energy and Basic PetrochemicalsChapter Seven: Agriculture and Sanitary and Phytosanitary MeasuresChapter Eight: Emergency ActionPART THREE: TECHNICAL BARRIERS TO TRADE Chapter Nine: Standards-Related MeasuresPART FOUR: GOVERNMENT PROCUREMENT Chapter Ten:Government Procurement

20. Chapter Four:Rules of OriginChapter Five: Customs ProceduresChapter Six: Energy and Basic PetrochemicalsChapter Seven: Agriculture and Sanitary and Phytosanitary MeasuresChapter Eight: Emergency ActionPART THREE: TECHNICAL BARRIERS TO TRADE Chapter Nine: Standards-Related MeasuresPART FOUR: GOVERNMENT PROCUREMENT Chapter Ten:Government Procurement

21. PART FIVE: INVESTMENT, SERVICES AND RELATED MATTERS Chapter Eleven: InvestmentChapter Twelve: Cross-Border Trade in ServicesChapter Thirteen: TelecommunicationsChapter Fourteen:Financial ServicesChapter Fifteen: Competition Policy, Monopolies and State EnterprisesChapter Sixteen: Temporary Entry for Business Persons PART SIX: INTELLECTUAL PROPERTY Chapter Seventeen: Intellectual Property

22. PART SEVEN: ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS Chapter Eighteen: Publication, Notification and Administration of LawsChapter Nineteen: Review and Dispute Settlement in Antidumping and Countervailing Duty MattersChapter Twenty: Institutional Arrangements and Dispute Settlement ProceduresPART EIGHT: OTHER PROVISIONS Chapter Twenty-One: ExceptionsChapter Twenty-Two:Final ProvisionsAnnex 401: Specific Rules of Origin

23. RVC= regional value content TV ­ VNM--------------- TV TV is the transaction value of the good adjusted to a F.O.B. basis; and VNM is the value of non-originating materials used by the producer in the production of the good.

24. NAFTA RESULTS

25. NAFTA has enabled both Canada and Mexico to increase their exports to the United States: Canadian manufacturers now send more than half their production to the U.S., while Mexico’s share of the U.S. import market has almost doubled from 6.9% in pre-NAFTA 1993 to 11.6% in 2002. Today, 86.6% of total merchandise exports go to our NAFTA partners. And close to 2.3 million jobs have been created in Canada since 1994, representing an increase of 17.5% over pre-NAFTA employment levels.

29. U.S. Agricultural Exports to NAFTA PartnersHave Increased by $4 Billion Since 1994

30. Source: NAFTA AT SEVEN Its impact on workers in all three nations Economic Policy InstituteApril 2001 | EPI Briefing

33. 13. The World Trade Organization

34. WORLD TRADE ORGANIZATION • General Agreement on Tariffs & Trade (GATT) • From Geneva(1947) – 23 Countries to • Uruguay Round (86-94) 120 Countries • Constrain Governments from Imposing or Continuing a Variety of Measures that Restrain or Distort International Trade • Marrakech 15 April 1994 - WTO • China 2001(143 Members)

35. The new rules and commitments apply to: • market access— various trade restrictions confronting imports • domestic support— subsidies and other programmes, including those that raise or guarantee farmgate prices and farmers’ incomes • export subsidies and other methods used to make exports artificially competitive.

37. Agreement on AgricultureAgreement on Sanitary and Phytosanitary MeasuresDecision on Measures Concerning the Possible Negative Effects of the Reform Programme on Least-Developed and Net Food-Importing Developing CountriesAgreement on Textiles and ClothingAgreement on Technical Barriers to TradeAgreement on Trade-Related Investment MeasuresAnti-Dumping)Customs Valuation)Preshipment InspectionAgreement on Rules of OriginAgreement on Import Licensing ProceduresAgreement on Subsidies and Countervailing MeasuresAgreement on SafeguardsGeneral Agreement on Trade in ServicesAgreement on Trade-Related Aspects of Intellectual Property Rights, Including Trade in Counterfeit Goods

38. MAIN RESULTS • Agriculture Domestic Support less 20% (developing 13.3%) in 6 Years; Subvention to Exports 36%-21% • NTB’s Converted to Tariffs & cut by 36% • Textiles: MFA quota dismantled 1995-2005, tariffs reduced • Telecommunication services 69 Countries (Feb 1997) • Information Technology 49 Countries (Feb 1997) • Financial Services 70 Countries (Feb 1997)

39. The WTO holds its main ministerial conferences roughly every two years, and they are the WTO's highest authority. The first ministerial was held in Singapore in December 1996. The second was held in Geneva in May 1998. Seattle hosted the third ministerial conference between November and December 1999. Doha hosted the last conference in November 2001. 2003's WTO ministerial conference will take place in Cancun, Mexico in September.

40. Short Title Full Case Title and Citation Brazil – Aircraft (Article 22.6 – Brazil) Decision by the Arbitrators, Brazil – Export Financing Programme for Aircraft – Recourse to Arbitration by Brazil under Article 22.6 of the DSU and Article 411 of the  SCM Agreement, WT/DS46/ARB, 28 August 2000 Canada – Aircraft Credits and Guarantees (Article 22.6 – Canada) Decision by the Arbitrator, Canada – Export Credits and Loan Guarantees for Regional Aircraft – Recourse to Arbitration by Canada under Article 22.6 of the DSU and Article 411 of the SCM Agreement, WT/DS222/ARB, 17 February 2003 TABLE OF CASES CITED IN THIS REPORT

41. EC – Bananas III (Ecuador) (Article 22.6 – EC) Decision by the Arbitrators, European Communities – Regime for the Importation, Sale and Distribution of Bananas – Recourse to Arbitration by the European Communities under Article 22.6 of the DSU, WT/DS27/ARB/ECU, 24 March 2000, DSR 2000:V, 2243 EC – Bananas III (US) (Article 22.6 – EC) Decision by the Arbitrators, European Communities – Regime for the Importation, Sale and Distribution of Bananas – Recourse to Arbitration by the European Communities under Article 22.6 of the DSU, WT/DS27/ARB, 9 April 1999, DSR 1999:II, 725

42. EC – Hormones (US) (Article 22.6 – EC) Decision by the Arbitrators, European Communities – Measures Concerning Meat and Meat Products (Hormones) – Original Complaint by the United States – Recourse to Arbitration by the European Communities under Article 22.6 of the DSU, WT/DS26/ARB, 12 July 1999, DSR 1999:III, 1105 EC – Hormones (Canada) (Article 22.6 – EC) Decision by the Arbitrators, European Communities – Measures Concerning Meat and Meat Products (Hormones) – Original Complaint by Canada – Recourse to Arbitration by the European Communities under Article 22.6 of the DSU, WT/DS48/ARB, 12 July 1999, DSR 1999:III, 1135

43. VII AWARD AND DECISION OF THE ARBITRATORS 154 For the reasons set out above, we conclude that the European Communities may suspend obligations under GATT 1994 and the Anti-Dumping Agreement against imports from the United States.

44. But such rulings are hardly the norm. In one highly publicized case, the WTO ruled in January 1999 that the EU could no longer give preferential treatment to banana imports from former colonies in the Caribbean, a decision which is likely to hurt the region's already-impoverished, primarily small-scale banana farmers. Who brought up the complaint? The US -- home base to banana giants Chiquita, Dole, and Del Monte, which control an estimated two-thirds of world banana exports.

45. www.MotherJones.com But what's so terrible about global free trade?Trade is one thing, but unrestricted, worldwide, corporate-dominated trade runs roughshod over the environment, workers' rights, small nations, and local self-determination, critics say. Lori Wallach and Michelle Sforza, co-authors of Public Citizen/Global Trade Watch's "Whose Trade Organization?" have made a study of the 167 contested trade issues brought to the WTO as of last March. Their conclusion: In every case in which an environmental, health, or food safety law was challenged at the WTO, such laws have been declared illegal barriers to trade. WTO rulings have forced South Korea to lower meat safety rules and the US to weaken its Clean Air Act, to cite just two.

46. What's on the agenda at Cancun? WTO ministers will negotiate the "Doha Agenda", which is the current round of trade negotiations launched at the last Ministerial Meeting in Doha. Trade negotiations on different issues are linked together so that countries can make trade-offs between different agreements. At Cancun, the agenda includes four new issues: investment, competition policy, transparency in government procurement, and trade facilitation (ie custom procedures), as well as the huge number of on-going negotiations on issues like agriculture, market access and drug patent rules.

47. The 5th Ministerial Meeting in Cancun came to a dramatic end without agreement on 14 September 2003, leaving negotiations in a deadlock. On the agenda were a range of issues agreed upon at the 2001 Ministerial Meeting in Doha, including agriculture, services, e-commerce and the environment. The European Union had continued to push for an expansion of the WTO's powers to include new issues (investment, competition policy, government procurement and trade facilitation), until the eleventh hour, insisting that these issues get dealt with first before the development issues that should have been at the top of the agenda. Despite the Ministerial Meeting's abrupt ending, the outcome is not a negative one. It was the only option for the developing countries, as no deal is better than a bad deal at this stage. Developing countries refused to be pushed into a corner and have proven they are a force to be reckoned with at the WTO negotiating table.

48. Barry CoatesWorld Development Movement • We live in a world where the problem is not that the governments have too much control over corporations, and they use it to discriminate against multinationals, the problem is that multinationals have too much power and they discriminate against governments. That is the fundamental problem with the WTO. The WTO as an intergovernmental agreement is primarily there to stop governments from interfering with the market. And I think we have to question that as the pre-eminent system of global economic rules that it is becoming. • http://www.wdm.org.uk/campaign/cancun03/cancun.htm

49. How does the WTO affect workers rights? Why, then, will some of the biggest demonstrations in Seattle be organized by workers and labor unions? Outrage over abusive sweatshop conditions throughout the developing world, for one thing. But laborers in the United States are also feeling the impact of the global economy directly, especially in the aftermath of NAFTA. According to Ron Judd, executive director of the King County Labor Council, the US has lost 537,000 manufacturing jobs in the last 18 months alone as companies continue to move production overseas to places where labor costs are cheaper.

50. What about the environment? But critics say that WTO decisions on trade have undermined important environmental safeguards. Shrybman cites the Biosafety Protocol of the UN Convention on Biological Diversity as an example. Last February, more than 140 nations met in Colombia to complete the Biosafety Protocol, the result of seven years of international effort toward a policy to protect the public from the potential health and environmental threat of genetically modified organisms. The protocol was intended to give governments the right to consent to or to refuse shipments of genetically modified foods. But, as Global Trade Watch's Wallach and Sforza have documented, the US-led "Miami Group" consisting of several major exporters of genetically modified organisms blocked adoption of the protocol, citing conflicting trade obligations under the WTO. (See also "Hot Button: Genetically Modified Foods")