Improving International Competition Order

Improving International Competition Order

Improving International Competition Order An Institutional Approach Christian A. Conrad

Christian A. Conrad 2005 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First published in 2005 by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N.Y. 10010 Companies and representatives throughout the world. PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin s Press, LLC and of Palgrave Macmillan Ltd. Macmillan is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries. ISBN 978-1-349-52486-0 ISBN 978-0-230-00596-9 (ebook) DOI 10.1057/9780230005969 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Conrad, Christian, 1966 Improving international competition order: an institutional approach / by Christian Conrad. p. cm. Includes bibliographical references and index. 1. Competition, International. 2. Competition Government policy. 3. International economic relations. 4. Globalization. I. Title. HF1414.C6645 2005 338.6 048 dc22 2004051337 10 9 8 7 6 5 4 3 2 1 14 13 12 11 10 09 08 07 06 05 Printed and bound in Great Britain by Antony Rowe Ltd, Chippenham and Eastbourne

Contents List of Abbreviations vii Introduction: On the Way to an International Competition Order 1 1 The Theory of Competition Policy: an International Synthesis 5 The role of competition in national and international economic systems 5 The ordoliberalist concept of Walter Eucken 10 The workability concept of industrial organization and the German conception of functional competition: the pessimists 11 The concept of free competition, the Chicago School, the Austrian School and the theory of contestable markets: the competition optimists 14 Evaluation 19 Newer developments 23 A concept of a new neo-ordoliberalism as an economic ideal for an international system of competition regulations 27 2 Distortions in Competition: Dumping and Anti-Dumping Measures 33 The attractiveness of anti-dumping measures, or why anti-dumping measures are so popular 33 Dumping and anti-dumping measures from a competition and allocation perspective 43 3 A Possible Way to an International Competition Order 57 Synthesis of international competition policies 58 Requirements for an international competition authority 71 v

vi Contents Designing a new international system for competition regulation 72 4 Strategies to Reform the Regulations on International Competition 75 Criteria for an international system to regulate competition 75 Evaluation of selected reform strategies 77 Conclusion 100 5 Economic Policy Reform Strategies for International Regulations on Competition 102 Current interests 102 Economic policy reform strategies 104 What will come out of Doha? 113 Interviews 115 Notes 118 References 135 Index 149

List of Abbreviations AIA CABSSS CASUM CLP BGH DIAC DSB DSU EC ECJ EFTA EISA EU FTC GATS GATT GWB IAA ICPAC ICPO IISI IMF ITA ITC ITO JGTC KMU OECD OPEC SITC Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 Coalition of American Businesses for Stable Steel Supplies Coalition of Steel Using Manufacturers Committee on Competition Law and Policy Bundesgerichtshof (Supreme Court of Germany) Draft International Antitrust Code Dispute Settlement Body Understanding on Rules and Procedures Governing the Settlement of Disputes European Community European Court of Justice European Free Trade Association European Independent Steelwork Association European Union Federal Trade Commission General Agreement on Trade in Services General Agreement on Tariffs and Trade Gesetz gegen Wettbewerbsbeschränkungen International Antitrust Authority International Competition Policy Advisory Committee International Competition Policy Office International Iron and Steel Institute International Monetary Fund International Trade Administration International Trade Commission International Trade Organization Joint Group on Trade and Competition kleinere und mittlere Unternehmen Organisation for Economic Cooperation and Development Organization of Petrol Exporting Countries Standard International Trade Classification vii

viii List of Abbreviations UK UNCTAD USA WIPO WTO United Kingdom United Nations Conference on Trade and Development United States of America World Intellectual Property Organization World Trade Organization