24 November 2021
10:00–12:00

Beirut time

Webinar

Understanding competitive neutrality

Understanding Competitive Neutrality
Location
  • UN-HOUSE Beirut via Zoom App
Contact information
Share
twitter social icon linkedin social icon facebook social icon mail icon
Participants @ Competitive Neutrality

Participants @ Competitive Neutrality

This joint ESCWA, United Nations Conference on Trade and Development and Organisation for Economic Co-operation and Development webinar aims to raise awareness of the principles of competitive neutrality and its importance in promoting economic growth and creating an effective and attractive business environment. Competition authorities from around the world are presenting their experiences of competitive neutrality, particularly measures taken to ensure a fair level of competition between different types of companies in a way that supports the interests of both consumers and the economy. 

This webinar is part of the series of Arab Competition Dialogues that followed the second Arab Competition Forum. The topic was selected in response to the results of a survey circulated to Arab countries.
 

Outcome document

Shared experiences showed that particular advantages are often given to subsidized companies and state-owned enterprises (SOEs), such as better access to opportunities, financing, and eased regulatory frameworks, which distort competition and lead to certain market inefficiencies. Therefore, special emphasis was put on the importance of competitive neutrality in competition policy to create a neutral market that guarantees a level playing field for all enterprises, private and public, in order to ensure fair competition and a more efficient market that supports the interests of consumers and the economy.

Some of the recommendations were:

  • Ensuring application of competition law and enforcement; routine competition impact assessment; formal dealing with government businesses; fair, open, non-discriminatory government procurement; as well as transparent public service obligations and exemptions.
  • Include competitive neutrality as a principle in the competition policy legal framework
  • Fomenting dialogue between government agencies and competition authorities to avoid contradicting policies
  • Creating an effective mechanism for improving the environment, especially by simplifying administrative licenses through reforms; easing access to local markets through ensuring a level playing field, and supporting competitive neutrality as a principle by explicitly including it in legislation.

Professor Deborah Healy clarified the common aim of competitive neutrality to deliver efficiency, foster innovation, and benefit the economy and consumers. Her recommendations focused on ensuring the application of competition law and its enforcement. She described the positive experience of Australia in addressing competitive neutrality, wherein 1996, started to carry out routine competition assessments of any new legislation.

Professor Balisacan shared the Philippine experience in competitive neutrality. In this regard, the Philippines has been working towards studying the sectors with serious competition challenges, the roots of market inefficiencies, and the areas with a large impact on consumer welfare.

Ms. Moreira (UNCTAD) stressed the importance of raising awareness of competitive neutrality in the Arab region and advised reaching out to regulators and other government bodies and providing technical assistance.

Ms. Khaled shared ESCWA’s focus on filling gaps in competition laws, by providing recommendations based on the assessment of the Member State’s regulatory framework. 

​​Ms. Maiorano and Mr.Meester shared OECD international best practices and recommendations.

Finally, representatives from Kuwait, Ms. Alfahad, and the Kingdom of Saudi Arabia, Mr. Almaziad, shared their national experience towards achieving competitive neutrality.

Ensuring competitive neutrality is of especial importance in the Arab region as SOEs often provide important public services. Furthermore, given the region’s concerns to ensure dynamic economic development, ensure diversification, and increase the (low) foreign direct investment; removing legal uncertainties and fear of uneven competition landscape in the face of SOEs is crucial. Furthermore, having more data on SOEs is essential to study and analyze their objectives and performance

The final remarks stressed the importance of cooperation between government entities in ensuring competitive neutrality.

Initiatives: Improving competition and protecting consumers

Reports

Documents

Presentations

ESCWA - Shared Prosperity Dignified Life
Our vision

ESCWA, an innovative catalyst for a stable, just and flourishing Arab region.

Our mission

Committed to the 2030 Agenda, ESCWA’s passionate team produces innovative knowledge, fosters regional consensus and delivers transformational policy advice. Together, we work for a sustainable future for all.

Get the latest updates from ESCWA direct to your inbox.
arrow-up icon
Feedback