Скачать презентацию Unfair Trade Practices Philippine Experience Josef T Скачать презентацию Unfair Trade Practices Philippine Experience Josef T

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Unfair Trade Practices – Philippine Experience Josef T. Yap 11 March 2011 Unfair Trade Practices – Philippine Experience Josef T. Yap 11 March 2011

Some data on the Philippine Economy Some data on the Philippine Economy

Competitiveness Indicators Ease of Doing Business Economy 2010 Rank Out of 183 Singapore 1 Competitiveness Indicators Ease of Doing Business Economy 2010 Rank Out of 183 Singapore 1 Thailand 12 Malaysia 23 China 89 Viet Nam 93 Brunei 96 Indonesia 122 Philippines 144 Cambodia 145 Lao PDR 167 Source: World Bank Doing Business Report 2010.

Lack of Economic Transformation Lack of Economic Transformation

Explaining the Performance of the Philippine Economy Explaining the Performance of the Philippine Economy

Low Investment Rate a Key Factor Low Investment Rate a Key Factor

Literature • Toward a National Competition Policy for the Philippines. Edited by E. M. Literature • Toward a National Competition Policy for the Philippines. Edited by E. M. Medalla. PIDS: 2002. • “Assessing Competition in Philippine Markets, ” by R. M. Aldaba. PIDS Discussion Paper 2008 -23 (September 2008). • “The Role of the Private Sector in Regional Economic Integration: a View from the Philippines, ” by M. D. Rosellon and J. T. Yap. PIDS Discussion Paper 2010 -23 (October 2010).

Q: Is the private sector its own enemy? • Resistance to reform • Two Q: Is the private sector its own enemy? • Resistance to reform • Two groups in the private sector (Bocchi 2008) • Several examples of unfair trade practices: cement, airlines • Oligarchy and weak institutions are related • How to reform an oligarchy?

Example of Unfair Trade Practices • Cement - only 3 big firms and what Example of Unfair Trade Practices • Cement - only 3 big firms and what they usually do is schedule their plant maintenance at the same time which affects the flow/delivery of cement. • Drugs - most mainstream physicians prescribe and support expensive branded drugs over the more affordable, but poorly perceived generic medicines. This tendency has been reinforced by the high promotion and gift-giving practices by drug companies to promote expensive branded medicines to physicians and pharmacists. This gift -giving behavior seems to be anti-competitive.

Example of Unfair Trade Practices • Airline Ø PAL has exclusive use of one Example of Unfair Trade Practices • Airline Ø PAL has exclusive use of one terminal Ø PAL does not payment take-off and landing fees Ø PAL pays franchise tax of 2% of gross revenues, other airlines pay 5% • Ports – Philippine Ports Authority (PPA) has multiple roles—developer, operator, regulator— and this has resulted in conflict of interest

Regulatory Framework • Republic Act 3815 (1930): Revised Penal Code Ø Article 186 – Regulatory Framework • Republic Act 3815 (1930): Revised Penal Code Ø Article 186 – defines and penalized monopolies and combinations in restraint of trade Ø Article 187 – penalties

Regulatory Framework • Republic Act 386 (1949): Civil Code of the Philippines Ø Allows Regulatory Framework • Republic Act 386 (1949): Civil Code of the Philippines Ø Allows collection of damages arising from unfair competition in agricultural, commercial, or industrial enterprises or labor Ø Civil code does not define unfair competition and merely lists the means by which it can be committed: force, intimidation, deceit, etc.

Proposed Legislation • 13 th Congress (2004 -07) Ø Philippine Anti-Trust Act of 2004 Proposed Legislation • 13 th Congress (2004 -07) Ø Philippine Anti-Trust Act of 2004 Ø Fair Trade Act of 2004 • 14 th Congress (2007 -2010) Ø Competition Act of 2009 Ø Anti-Trust Act of the Philippines • 15 th Congress (2010 to present) Ø Competition Act of 2010 Ø Fair Trace Act of 2010

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