Antitrust and trade policies
This chapter is concerned with hindrances caused by the anti-competitive behaviour of domestic private firms to market access by foreign firms. In particular, the chapter examines the roles that antitrust and trade policies play in addressing this issue and the factors which may limit the role of either policy in this regard. The chapter considers the relationship between antitrust and trade policy, since, as will be seen, there are implications for both policies, especially in the case of hybrid practices. The purpose of the chapter, however, is not to give a detailed analysis of both policies independently, but rather to examine how antitrust policy interacts with trade policy in an increasingly integrated and liberalised global economy. In so doing, the chapter evaluates the implications and lessons which one policy holds for the other.
The chapter is structured as follows. The first part gives an overview of some important points. The second part describes the different restraints which may affect the access of foreign firms to domestic markets. The third part deals with the differing perspectives of antitrust and trade policy. The fourth part highlights the possible approaches currently available under antitrust and trade policy which can be used to address market access concerns involving anti-competitive behaviour of private firms. It also outlines the shortcomings of these approaches in both the short and long term. The fifth part advocates an alternative approach to deal with these practices. The sixth part gives an account of developments in the area during the course of the last decade. The seventh part contains some implications of the analysis and the eighth part gives a conclusion.
The efforts of the international community have, for many years, been primarily concentrated on removing hindrances to the flows of trade and