Competition policy and MERCOSUR, Volumes 23-385 by Malcolm Rowat, Michele Lubrano, Rafael Porrata

By Malcolm Rowat, Michele Lubrano, Rafael Porrata

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In May of 1995, the MERCOSUR Trade Council approved a draft Protocol for the Defense of Competition within MERCOSUR which contained a list of acts of conduct that should be prohibited by national law as well as provisions regarding concentration acts that result in at least a 20% share in the relevant market. g. Argentina has no merger guidelines) while Paraguay and Uruguay have no competition law at all. This was superceded by the approval of a ''final" protocol (Decision No. 18/96) for the defense of competition within Mercosur on December 17, 1996 by the Mercosur Trade Council.

Such a system would protect the interests of creditors and consumers in situations involving the insolvency of an enterprise engaged in cross border operations. 6. MERCOSUR and its member states need to determine the appropriate relationship between any community insolvency law and the national insolvency law. Page 1 Introduction MERCOSUR, the ''Common Market of the Southern Cone," was formed on March 26, 1991 by the Treaty of Asunción and currently consists of Argentina, Brazil, Paraguay and Uruguay, with Chile and Bolivia becoming associate members as of October 1, 1996 and March 1, 1997, respectively.

Also, to improve the likelihood of enforcement, consideration should be given to the creation of specialized courts including special training for competition judges. Similarly, Paraguay needs to develop a modern legislative framework in the areas of consumer protection, intellectual property and bankruptcy. In the case of foreign Page xii investment regulation, while its legal framework is more than adequate, foreign investment interest has been modest and declining attributed in part to the less than transparent business practices, significant corruption in government agencies and uncertainty of enforceability of contracts due to a lack of confidence in the judiciary.

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