UNCTAD: IGE on Competition law and policy

The Lusophone competition network (LCN),
Contribution by Portugal

The LCN aims at promoting an effective competition policy as an instrument to foster economic development and sustainable growth among its members: Angola, Cape Verde, Guinea-Bissau, Mozambique, Portugal, Sao Tome and Principe and Timor.
The founding document of the LCN is the Rio Declaration on competition and development, signed in 2004 during the I Lusophone meeting on competition.

The I Lusophone meeting on competition (Rio de Janeiro, Brazil, 2004):
It was organized by the Portuguese Competition Authority. All Portuguese-speaking countries, except Cape Verde and Timor, participated.
An ambitious rage of topics was discussed, for example:
competition and development and its role in promoting economic growth in lusophone countries
competition and regulation
competition policy instrument
trade and competition
the institution design, including independent agency model (Portugal) vs. dual model (Brazil)
international cooperation


The Memorandum of Understanding (MoU) between the Portuguese competition authority and UNCTAD:
In this context of LCN, it is important to stress the role played by UNCTAD.
The Portuguese competition authority and UNCTAD celebrated a MoU focused on the lusophone countries and based on the share objective of assisting those countries in adopting and enforcing competition law and maximizing the benefits for these countries of well functioning markets.
Te main areas of cooperation covered by the MoU are: 1) capacity building and sharing of publications on competitions issues for dissemination among lusophone countries, 2) cooperation to strengthen competition networks, and 3) cooperation in training activities.
Furthermore, the MoU was significant to the organization of the II Lusophone meeting on competition.


The II Lusophone meeting on competition (LMC) (Lisbon, Portugal, 2006):
The II LMC was held with the participation of delegations from Angola, Brazil, Cape Verde, Guinea-Bissau, Mozambique, Portugal, Sao Tome and Principe and Timor, in the spirit of the “Rio declaration”.
Among the main topics of the debate were “Competition in Economic Development”, “Reducing the Burden of Regulation”, and “Competition and Institutional Development”.
Despite the institutional and legal differences, the following conclusions were drawn:
practices that restrict competition, most particularly cartels, are harmful and carry a heavy price where social well-being and development are concerned and should therefore be combated effectively
a clear definition of the strategy for investigating restrictive practices on the part of the competition authorities is essential if cases are to be investigated successfully
the prosecution of restrictive practices depends on the quality of the proof collected during the investigations
cooperation with the competition authorities by the parties involved in restrictive practices may prove decisive in the case investigation and the gathering of evidence
competition authorities should possess diversified and effective powers of investigation that allow a full investigation of restrictive practices

During the closing of the II LMC particular emphasis was given on the role of competition policy in the pursuit of economic development in the attending countries and, also, on the importance of cooperation and support for institutional empowerment within the LCN.


Future activities:
The LCN continues engaging in a comprehensive dialog not only on the institutional level, but also aiming at the business community, including the Community of Portuguese-speaking Countries Corporate Stakeholders.
In 2008, the III Lusophone Biannual Meeting on Competition will be organized by Angola, focusing on a progressive enacting of competition legislation in selected countries.