May 2005Economic Policy Programme1 ECONOMIC POLICY PROGRAMME TOWARDS AN ECONOMICALLY-VIABLE PALESTINIAN STATE: The Regulation of External Trade Monday May 23, 2005 Grand Park Hotel, Ramallah

May 2005Economic Policy Programme2 Towards a Sovereign Trade Framework: Competition Law Ross Denton

May 2005Economic Policy Programme3 This document is an output from a project funded by the UK Department for International Development (DFID) for the benefit of developing countries. The views expressed are not necessarily those of DFID.

May 2005Economic Policy Programme4 Competition Law Competition law is not necessary for WTO accession Important but not necessary for regulating economy

May 2005Economic Policy Programme5 What Problems Does Palestine Face? Need to attract and keep international investment Reliance on trade with contiguous States, including Israel Limited administrative resources

May 2005Economic Policy Programme6 Principles of Regulation Simple but flexible administrative structure, subject to review by courts Prohibition and where established violation fines Rigorous system of penalties that increase per violation Private right of action Possible use of “extraterritorial” penalties if consistent with international law obligations Detailed implementing regulations required

May 2005Economic Policy Programme7 Areas for Regulation Abuse of market power Anti-competitive agreements (horizontal and vertical?) State-approved entities operating under special or exclusive rights Mergers Other activity

May 2005Economic Policy Programme8 Public Procurement Public procurement law is not necessary for WTO accession (except where violations of GATT may occur (i.e. Article III) Important but not necessary for regulating economy

May 2005Economic Policy Programme9 Should Palestine Adhere to the WTO GPA? Not obliged to do so Can accede as a “developing country” under Article V. Two main benefits: –The laws of developed countries must facilitate increased imports from developing countries –Development objectives of developing countries should be taken into account in the negotiation of coverage of procurement by entities in developed and developing countries Main disadvantage: does Palestine want to accept this differential treatment?

May 2005Economic Policy Programme10 Current Laws Law Number 8 of 1999 Concerning Government Works Tenders (“Law 8”) Law No. 9 of 1998 Concerning Public Supplies (“Law 9”) Possibly have integrated procurement law with detailed regulations? Neither totally consistent with GPA in that under both Laws, preference must be given to Palestinian suppliers that meet the requirements of the tender. In the case of works, it seems that only Palestinian nationals can become qualified in the first place.

May 2005Economic Policy Programme11 ECONOMIC POLICY PROGRAMME TOWARDS AN ECONOMICALLY-VIABLE PALESTINIAN STATE: The Regulation of External Trade Monday May 23, 2005 Grand Park Hotel, Ramallah