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The Inclusion of Competition Clauses in Bilateral Trade Agreements Between India and Canada: Issues and Challenges

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Nation-Building, Education and Culture in India and Canada

Abstract

There has been a recent trend to include competition clauses pertaining to trade in trade agreements. This paper aims at analysing the trade relationship between India and Canada with special reference to the competition issues. It assesses the role and scope of bilateral trade agreements and highlights the importance of harmonization of competition rules between the two countries. Simultaneously, it emphasizes the need for a cautious approach while executing so that the anti-competitive practices of the market players may not deface or annul the gains envisaged by such agreements. The article concludes with certain suggestions in this regard.

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Notes

  1. 1.

    Competition Commission of India versus Steel Authority of India Ltd. and Anr. (2010) 10 SCC 744 Para 1–7.

  2. 2.

    Sec. 3, The Indian Competition Act, 2002.

  3. 3.

    http://cci.gov.in/index.php?option=com_content&task=view&id=35; Also see Sect. 3, The Competition Act, 2002.

  4. 4.

    The Indian Competition Act, 2002; Sections 3, 4, 5 and 6.

  5. 5.

    Bhattacharjea (2013) at 47. See Also, Levenstein and Suslow (2004).

  6. 6.

    Bilal and Olarreaga (1998).

  7. 7.

    Section 3(5)(ii) of the Indian Competition Act, 2002.

  8. 8.

    http://www.acc.com/legalresources/publications/topten/canadian-competition-act.cfm.

  9. 9.

    45.(1) Every person commits an offence who, with a competitor of that person with respect to a product, conspires, agrees or arranges

    (a) to fix, maintain, increase or control the price for the supply of the product;

    (b) to allocate sales, territories, customers or markets for the production or supply of the product; or

    (c) to fix, maintain, control, prevent, lessen or eliminate the production or supply of the product.

    (5) No person shall be convicted of an offence under subsection (1) in respect of a conspiracy, agreement or arrangement that relates only to the export of products from Canada, unless the conspiracy, agreement or arrangement

    (a)…

    (b)…

    (c) is in respect only of the supply of services that facilitate the export of products from Canada.

  10. 10.

    See http://www.ficci.com/internationalcountries/canada/canada-commercerelationships.html as viewed on 20.05.2014.

  11. 11.

    Ibid.

  12. 12.

    See http://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/home.

  13. 13.

    Jenny (2010).

  14. 14.

    Ibid.

  15. 15.

    http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/india-inde/cepa-consultapeg.aspx?lang=eng.

  16. 16.

    http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/india-inde/index.aspx?lang=eng.

  17. 17.

    As noted by a background paper on negotiations towards a CEPA; See also, Dobson (2011).

  18. 18.

    http://commerce.nic.in/eidb/iecntq.asp; last viewed on 25th May, 2014.

  19. 19.

    Obradovic (2012).

  20. 20.

    Sahu and Gupta (2008).

  21. 21.

    Aditya Bhattacharjea, Supra Note 5.

  22. 22.

    Research Report, available at http://cci.gov.in/images/media/ResearchReports/gautam-report_20080730102843.pdf.

  23. 23.

    https://www.cci.gov.in/sites/default/files/bilateral_trade_treaties_20080508105059.pdf.

References

  • Bhattacharjea, A. (2013). Trade, development and competition law: India and Canada compared. Trade Law and Development, 5(1), 43.

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  • Bilal, S., & Olarreaga, M. (1998). Regionalism, competition policy and abuse of dominant position. European Institute of Public Administration (EIPA, Netherlands), Working Paper 98/W/01.

    Google Scholar 

  • Dobson, W. Does Canada have an India strategy? Why it should and what both sides can gain from comprehensive trend talks. (138) C.D. Howe Insti. Backgrounder, June 2011.

    Google Scholar 

  • Jenny, F. (2010). Global potash trade and competition. Economic Times, November 25, 2010.

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  • Levenstein, M., & Suslow, V. Y. (2004). Contemporary international cartels and developing countries: Economic effects and implications for competition policy. 71 Antitrust L.J. 801.

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  • Obradovic, L. (2012). The role of bilateral and regional trade agreements in the modernisation of taxation and revenue policy in developing economies. Worlds Customs Journal, 6(2). Available at www.worldcustomsjournal.org/media.wcj/-2012/2/oradovic.pdf.

  • Sahu, S., & Gupta, N. Competition clauses in bilateral trade treaties: Analysing the issues in the context of India’s future negotiation strategy. Working Paper No. 204, Indian Council for Research on International Economic Relations, February 2008. Available at www.saber.eaber.org.sites/default/files/documents/ICRIER_Sahu_2008.pdf.

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Gupta, R. (2019). The Inclusion of Competition Clauses in Bilateral Trade Agreements Between India and Canada: Issues and Challenges. In: Gayithri, K., Hariharan, B., Chattopadhyay, S. (eds) Nation-Building, Education and Culture in India and Canada. Springer, Singapore. https://doi.org/10.1007/978-981-13-6741-0_10

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  • DOI: https://doi.org/10.1007/978-981-13-6741-0_10

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