a tripartite report - Unctad
a tripartite report - Unctad a tripartite report - Unctad
TANZANIA Section 96(6) of the Act provides an important caveat that a person shall not contravene the Act by reason only of engaging in conduct required in order to comply with an enactment other than an enactment referred to under Section 96(3). It is equally noteworthy that under section 65(2) (i) of the FCA, the FCC has an exceptional power/ privilege to participate in deliberations and proceedings of Government, Government commissions, regulatory authorities and other bodies in relation to competition and consumer welfare. This provision assumes that the subject deliberations and/or proceedings are known by the FCC. The FCC is yet to exercise this power. 5.4 Research and competition advocacy The FCC has carried out research work in the cement industry to study the competition dynamics therein and made policy recommendations to the Minister of Trade which bordered on removing the barrier of importation of cement into the United Republic of Tanzania. The FCC has engaged consultants in some projects but theses have not produced desirable results. One of quires more time to understand competition law by engaging more with the competition authority through seminars, workshops and other joint training sessions. The FCC has generally found research based advocacy that has been done thus far using the academia has not brought out or its use. A complaint was also made that the FCC does appear to forget to put required value on research work. Sector regulators such as EWURA and TCRA were said to pay far better than the FCC on research work and their output has not been a subject of poor quality compared to work done for the FCC. The FCC should work closely with the academia and assist in developing competition and other related industrial sector studies from which it can ment. It is evident then that the FCC may need to refocus its terms of reference as well as resources devoted to research undertaken by the academia. 79 The FCC conducted a study in the cement industry which addressed the supply and distribution constraints that required Government attention. However, considering that at least 70 per cent of the Tanzanian economy is in the agriculture sector, the FCC needs to focus on key agriculture sectors in particular the outgrower schemes for cotton, coffee and other cash crops involving big multinationals, which may be engaged in predatory pricing strategies as well as collusion. It would be pertinent that FCA be amended to include provisions on abuse of buyer power, which could then be used against anticompetitive (abusive) practices in the agricultural sector in the United Republic of Tanzania. It may be a problem amongst farmers that they are effectually compelled to sell cotton, coffee etc at very low prices due to abusive practices by enterprises buying from them. The FCC is yet to carry out a study in any agricultural sector. Furthermore, another potential problem that may be experienced amongst farmers may be that smallholder farmers are forced to sell their basic crops such as cotton and coffee at very low prices to large, usually transnational, companies which have much more negotiating power vis-à-vis small farmers. Oligopolistic markets where these transnational companies operate are usually prone to such practices on the buyer side. Therefore, it would be a welcome development if the FCA was amended to include provisions on abuse of buyer power, which could then be used against such anticompetitive (abusive) practices in the agricultural sector in the United Republic of Tanzania. 6.0 INTERNATIONAL COOPERATION AND TECHNICAL ASSISTANCE 6.1 International Cooperation The FCC has been an active participant member in most international and regional organizations dealing with competition policy. These are: (i) The Southern and Eastern Africa Competition Forum (SEACF), of which it is a founding member. The FCC has been engaged in bilateral training programmes with the Zambia Competition Commission (now Competition and Consumer Protection Commission) and the Kenya Competition Commission, and TANZANIA
80 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE the South African Competition Commission where its staff have been attached. The in the founding of the African Competition Forum. (ii) Africa Competition Forum, of which FCC is a founding member. (iii) Consumers International where its consumer staff have been engaged in peer learning experiences. (iv) International Competition Network (ICN), the annual conferences, merger and cartel workshops. (v) East African Community, where the United Republic of Tanzania played an active role in the formulation of the EAC Competition Act, collaborating with Kenya to foster their regional integration arrangement. However, the Tribunal appear to have been left out in the various cooperation arrangements, which makes the interface with the FCC uneven where the FCC participates more in the regional Technical Assistance and international cooperation arrangements and the FCT does not. 6.2 Technical Assistance The FCC has been a recipient of unprecedented to and during its establishment as part of assistance to the Government of the United Republic of Tanzania during the implementation of the programmes under the auspices of UNCTAD and OECD Global Forum on Competition, as well as the International Competition Network (ICN). The Commission is an active member of the Africa Dialogue Network under the auspices of the Federal Trade Commission. programmes under the American Bar Association on case analysis and the Fordham University in New York on investigation skills and economic analysis. The technical assistance received by the FCC is as indicated below: Facilitator Description Funds Year Drafting FCA Booz Allen Hamilton Drafting process of the FCA World Bank (IDA) 2000–2003 Guidelines Deloit & Touch Development of Merger Guidelines and rules World Bank (IDA) 2000–2003 Staff training JICA Competition Law and policy JICA 2011 KOICA Competition Law and policy KOICA 2010 UNCTAD Investigation techniques UNCTAD 2010 FTC Competition Law and policy American Embassy 2010 FTC IPR American Embassy 2010 Nathan Associates Competition Economics and Competition Law World Bank (IDA) 2009 Competition assessment frame work for Southern African Countries World Bank (IDA) 2008 Institute for Public Private Partnership (IP3) Managing regulatory authorities World Bank (IDA) 2007 IP3 Rate setting World Bank (IDA) 2007 IP3 United States Anti-trust Law World Bank (IDA) IP3 European Union Competition Law World Bank (IDA) 2007 WTO Intensive course on Trade and Competition Policy for Anglophone Africa Mauritius 2004 WTO Competition Policy for African Countries Kenya 2003 WTO Intensive three-day exploration of topics before the WTO in the area of competition policy (i) the relationship between competition policy and economic development; (ii) the challenges involved in implementing competition policy in developing countries; and (iii) the role that the WTO can play in this area, including consideration of the pros and cons of a possible multilateral framework on competition policy South Africa 2001 Source: FCC
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80 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE<br />
the South African Competition Commission<br />
where its staff have been attached. The<br />
<br />
in the founding of the African Competition<br />
Forum.<br />
(ii) Africa Competition Forum, of which FCC is a<br />
founding member.<br />
(iii) Consumers International where its consumer<br />
staff have been engaged in peer learning<br />
experiences.<br />
(iv) International Competition Network (ICN),<br />
the annual conferences, merger and cartel<br />
workshops.<br />
(v) East African Community, where the United<br />
Republic of Tanzania played an active role<br />
in the formulation of the EAC Competition<br />
Act, collaborating with Kenya to foster their<br />
regional integration arrangement.<br />
However, the Tribunal appear to have been left<br />
out in the various cooperation arrangements,<br />
which makes the interface with the FCC uneven<br />
where the FCC participates more in the regional<br />
Technical<br />
Assistance<br />
and international cooperation arrangements and<br />
the FCT does not.<br />
6.2 Technical Assistance<br />
The FCC has been a recipient of unprecedented<br />
<br />
to and during its establishment as part of assistance<br />
to the Government of the United Republic<br />
of Tanzania during the implementation of the<br />
<br />
programmes under the auspices of UNCTAD and<br />
OECD Global Forum on Competition, as well as<br />
the International Competition Network (ICN). The<br />
Commission is an active member of the Africa Dialogue<br />
Network under the auspices of the Federal<br />
Trade Commission.<br />
<br />
programmes under the American Bar Association<br />
on case analysis and the Fordham University in New<br />
York on investigation skills and economic analysis.<br />
The technical assistance received by the FCC is as<br />
indicated below:<br />
Facilitator Description Funds Year<br />
Drafting FCA Booz Allen Hamilton Drafting process of the FCA World Bank (IDA) 2000–2003<br />
Guidelines Deloit & Touch Development of Merger Guidelines and rules World Bank (IDA) 2000–2003<br />
Staff training JICA Competition Law and policy JICA 2011<br />
KOICA Competition Law and policy KOICA 2010<br />
UNCTAD Investigation techniques UNCTAD 2010<br />
FTC Competition Law and policy American Embassy 2010<br />
FTC IPR American Embassy 2010<br />
Nathan Associates Competition Economics and Competition Law World Bank (IDA) 2009<br />
Competition assessment frame work for Southern<br />
African Countries<br />
World Bank (IDA) 2008<br />
Institute for Public<br />
Private Partnership (IP3)<br />
Managing regulatory authorities World Bank (IDA) 2007<br />
IP3 Rate setting World Bank (IDA) 2007<br />
IP3 United States Anti-trust Law World Bank (IDA)<br />
IP3 European Union Competition Law World Bank (IDA) 2007<br />
WTO Intensive course on Trade and Competition Policy<br />
for Anglophone Africa<br />
Mauritius 2004<br />
WTO Competition Policy for African Countries Kenya 2003<br />
WTO Intensive three-day exploration of topics before the WTO in<br />
the area of competition policy (i) the relationship between<br />
competition policy and economic development;<br />
(ii) the challenges involved in implementing competition<br />
policy in developing countries; and<br />
(iii) the role that the WTO can play in this area, including<br />
consideration of the pros and cons of a possible multilateral<br />
framework on competition policy<br />
South Africa 2001<br />
Source: FCC