GLOBAL ANNUAL REPORT

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UNCTAD: The implementing agency of the COMPAL Programme

Headquarters: Geneva

History: UNCTAD was created in 1964 as a subsidiary organ of the United Nations General Assembly. This agency coordinated, within the UN, the comprehensive management of issues related to trade and development, along with linked issues such as finance, investment, competition, technology, and sustainable development. UNCTAD is also the main organism in the United Nations Inter-‐Agency Cluster on Trade and Productive Capacity.

Membership: 193 Member States Secretariat: 500 civil servants Secretary General: Supachai Panitchpakdi (Thailand) since September

2005 Budget: Around USD 65 million.

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Members of the COMAL Team in Geneva1

Hassan Qaqaya

Pierre M. Horna Patrícia Cordovilla Arnau Izaguerri

Lorenzo Martinez Solange Behoteguy

1 Pierre M. Horna, Responsible for the COMAPL Programme and Legal Affairs Officer, leads the COMPAL Team in Geneva. It also integrates: Patricia Cordovilla, Economic Affaire Officer; Arnau Izaguerri, Legal Affaire Officer; Solange Behoteguy, research and press assistant; and Lorenzo Martinez, administrative assistant. The Team benefits from the guidance and supervision of Hassan Qaqaya, Chief of the Competition and Consumer Policies Branch, DITC, UNCTAD.

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Abbreviations and Acronyms used in the present Report ALADI Asociación Latinoamericana de Integración Económica (Latin American

Economic Integration Association) ALADI Latin American Economic Integration AOP Annual Operational Plans of COMPAL national activities COMCO/WEKO Swiss Competition Commission COMPAL Programme on strengthening institutions and capacities in the areas of

competition policy and consumer protection. CONCADECO American Council of Consumer Protection COPROCOM Commission to promote

Competition (Costa Rica) COPROCOM Commission for the Promotion of Competition (Costa Rica) COSUDE Swiss Agency for Development and Cooperation CTG COMPAL Team in Geneva DPC Competition Law and Policy FIAGC American Forum of Government Agencies of Consumer Protection FOPREL Legislative Presidents of Central America and the Caribbean FTA Free Trade Agreement GAE Advisory Group of Experts of COMPAL II GAR Global Annual Report of COMPAL IGE Intergovernmental Group of Experts on Law and Competition Policy at UNCTAD INDECOPI National Institute of Competition and Intellectual Property (Peru) MIC Ministry of Industry and Commerce (Dominican Republic) MIFIC Ministry of Industry and Commerce (Nicaragua) MIPRO Ministry of Industry and Productivity (Ecuador) MOU Memorandum of Understanding NPC National Coordinator for each project NAR National Annual Report of COMPAL national activities PAC Anticompetitive practice PMC (country) Project Management Committee of COMPAL, integrated by UNCTAD and the

NPC of each country 2 POA Annual Operating Plan SDC Strategic Direction Committee SECO State Secretariat for Economic Affairs, Switzerland SIC Superintendence of Industry and Commerce (Colombia) SIECA American Economic Integration Secretariat SME Small and Medium Business TOR Terms of Reference UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Programme

2Every member country has its own CGP.

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Acknowledgements UNCTAD's COMPAL Team in Geneva would like to thank national coordinators of the Programme: Jaime Luna in Bolivia, Juanita De Castro in Colombia, Hazel Orozco and Marycruz Goñi in Costa Rica, Aldo Cacer, Regina Vargas and Nelson Guzmán in El Salvador, Maribel Macías and Haraxa Sandino in Nicaragua, Mauricio Gonzales in Peru, Maria Teresa Lara in Ecuador, Cynthia Andino in Paraguay, Anina Del Castillo and Magdalena Gil in the Dominican Republic and Javier Gomensoro in Uruguay. We would also like to welcome the new national coordinators joining our programme: Edgar Reyes in Guatemala, Oscar Lanza in Honduras and Pedro Martín García in El Salvador. UNCTAD is also grateful to the high authorities of the COMPAL member countries, especially to the Deputy Minister of Bolivia, Huáscar Ajata, Dr. Jose Miguel De la Calle of Colombia, Ana Victoria Velázquez and Cynthia Zapata of Costa Rica; Dr. Francisco Díaz and Yanci Urbina of El Salvador; Luis Humberto Guzmán and Saramelia Rosales of Nicaragua, Dr. Hebert Tassano of Peru; the Minister Santiago Rivas and Edgar Cuevas of Paraguay, and the Minister of Ecuador, Verónica Sion. Special thanks to INDECOPI in Peru for hosting the III Annual Conference of the COMPAL II Programme and for the immense efforts invested therein. UNCTAD salutes the leadership undertaken by INDECOPI in the organization and development of the present event. We would also like to thank Hans-‐Peter Egler and Barbara Jaeggin of SECO-‐ Headquarters in Bern, Christian Robin and Iris Roca Rey of SECO-‐Peru, Thierry Buchs and Catalina Pulido of SECO-‐Colombia; Freddy Ruiz of COSUDE-‐Nicaragua; Rafael Corazza and Markus Langenegger from COMCO in Bern, for their collaboration and constant help in the implementation of the COMPAL Programme since its beginning. Finally, the COMPAL Team in Geneva (CTG) would like to thank every member of the Advisory Group of Experts (AGE), for their invaluable contribution to the exchange of experiences among COMPAL member countries. This acknowledgement is also extensive to all consultants who have worked for the COMPAL Programme both in national as well as regional projects

Geneva, 14 June 2012

UNCTAD's COMPAL Team in Geneva

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Participants to the II Annual Conference of the COMPAL II Programme. Bogotá 6 to 8 July 2011.

From left to right: 1st row seated: Cynthia Andino, Maribel Macías, Magdalena Gil, delegate from Panama, José Miguel De La Calle, Hassan Qaqaya, Paulina (Ecuador), Marycruz Goñi, Evelyn Olmedo, delegate from del Peru. 2nd row standing: Pierre Horna, Armando Flores, Nelson Guzmán, Patrick Krauskopf, Mariana Villamizar, Dionisio (SIC), Alejandro Giraldo, Wilfredo Cruz, Edgar Reyes, Fernando Furlán, Freddy Rodriguez, Mauricio Gonzales, Luis Humberto Guzmán, Miguel Angel Luque, Haraxa Sandino, Manuel de Almeida, Ricardo Maguiña, Javier Gomensoro, David Sperber, Juan Araujo, delegate from Ecuador, Marvin Rodriguez y Hazel Orozco.

Participants to the I Annual Conference of the COMPAL II Programme. San Salvador 14 to 16 April 2010.

From left to right: 1st row seated: Barbara Jaeggin, Pierre Horna, Armando Flores, Hassan Qaqaya Jose Argumedo and Ana Maria Alvarez. 2nd row standing: Nelson Guzman, Victoria Velazquez, Juan Galan, the Brazilian representative, Hazel Orozco, Jaime Luna, Maricruz Goñiz, Gustavo Valbuena Cynthia Zapata, Haraxa Sandino, Javier Gomensoro, Luis Humberto Guzman, Hugo Figari, Maribel Macias, Freddy Rodriguez, Teresa Ramirez, representative of the SIC, Nicolle Rojas.

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TABLE OF CONTENTS

Executive Summary……………………………………………………………………………….…………………. 8 Section I. Background…………………………………………………………………….………………………… 9

• UNCTAD as implementing agency for the COMPAL II……………………..………… 10 • National Coordinators…………….………………………………………………………………... 11 • Donors and Partners ………………….…………………………………………………………….. 11 • The Advisory Group of Experts…………………………………………………………………. 12

Section II: COMPAL II during the period July 2011 to June 2012………………………………. 15

• The Nacional Component of COMPAL II……………………………………………… 16

• Bolivia……………………………………………………………………………………………….. 17 • Colombia………………………………………………………………………………………..….. 18 • Costa Rica…………………………………………………………………………………………… 20 • El Salvador………………………………………………………………………………………….. 23 • Nicaragua……………………………………………………………………………………………. 24 • Peru…………………………………………………………………………………………………….. 26

• New Beneficiaries.………………………………………………………………………………. 28

• Ecuador………………………………………………………………………………..……………… 29 • Dominican Republic………………………………………………………………………… 30 • Guatemala…………………………………………………………………………………………… 31 • Honduras……………………………………………………………………………………………. 32 • Paraguay…………………………………………………………………………………………….. 33 • Uruguay………………………………………………………………………………………………. 34

• The Regional Component of COMPAL II…………………………………………………… 35

• Dissemination and multiplier effect of COMPAL activities…………………. 36 • Specific activities of the regional component……..……………………………. 37

Section III. Lessons learned…………………………………………………………………………………………… 42 Section IV: Challenges in the implementation and way forward……………………………………… 45

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Executive Summary

Since the end of the II Annual Conference of COMPAL held in Bogota in July 2011, UNCTAD, within the framework of the COMPAL II Programme, has actively implemented technical assistance to countries benefiting from the Programme, namely, Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Paraguay, Peru, Uruguay and the Dominican Republic. In the case of the Dominican Republic, due to the recent appointment of the members of the Directive Council of Procompetencia, a new approach has been sought for COMPAL in that country, so activities will be implemented through the Ministry of Industry and Commerce.

National activities spring from the logical frameworks of each country and the Regional component is based in the general logical framework for COMPAL II. These were all approved by SECO when launching the Programme. These instruments have been of great relevance for the external evaluation of COMPAL undertaken recently. The role of UNCTAD in the implementation of COMPAL is to act as a technical supervisor of all activities of the Programme. The work of UNCTAD essentially involves the commitment of the beneficiary institutions through national coordinators and the support of UNDP country offices in each beneficiary country as well as various other local institutions. The lesson of COMPAL II in its second year can be summarized as striving for excellence in the preparation of the core products for the activities that create intra-‐COMPAL synergies, as well as for other initiatives in the Latin American region. This report aims at summarizing the implementation of the COMPAL Programme during the period from July 2011 to June 2012 and its expected impact, with reference to the activities conducted within the framework of national and regional projects. For that purpose, Section I outlines the general context in which COMPAL II was implemented in the relevant period. Section II summarizes relevant aspects of the implementation of national projects. National Annual Reports (NARs), which report on each country’s performance, have been submitted by national coordinators. They constitute the basis for drafing the present report, which is also complemented with the experience of the COMPAL Team in Geneva. An additional part of Section II deals with the Regional Component, highlighting the progress in this area. The indicators developed together with the Swiss cooperation and expressed in the logical matrix of the Programme, allow us to appreciate the link between COMPAL’s national and regional scopes.

Finally, Section III considers the lessons learned and the potential challenges for the future, as this is the last year of the COMPAL II Programme. Time has come to reflect and design the COMPAL III Programme, which is contained in Section IV: challenges in the implementation and way forward. The report intends to give a succinct picture of the operation and potential offered by the Programme. This report is prepared with the inputs of NARs, which are to be approved in the III Annual Conference of COMPAL in Lima from 20th to 22nd June 2012.

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Section I Background

The information from the National Annual Reports (NARs) of the 12 member countries in COMPAL from July 2010 to June 2012 is the primary source of the present report. COMPAL II was launched on 17th March 2009, when the Framework Agreement between UNCTAD and the Swiss government, through the State Secretariat for Economic Affairs (SECO), was signed. In view of the achievements and the experience gained in COMPAL I (2004 to mid 2008), the said Framework Agreement established the overall objectives of COMPAL II: (i) deepening the activities implemented and (ii) maximizing the impact of these activities.3

The COMPAL Programme is regarded as a platform for action that incorporates the three pillars of UNCTAD's strategy (analytical content of activities, capacity building and technical assistance, and consensus building). This strategy serves as a reference for projects and the exchange of experiences among developing countries. This platform also offers the possibility for other countries, which may be more advanced in the areas of competition and consumer protection, to provide support to the less advanced. This has been the case for Brazil. From the outset of COMPAL II, in agreement with the Swiss Cooperation, the "logical-‐framework" was put forward in order to serve as reference and guide for evaluating Programme activities. They naturally include key indicators and a means of verification for external factors that can impact the Programme's implementation. An important element of COMPAL is to assess impact indicators at both national and regional levels. This exercise has been very relevant for the final evaluation of COMPAL, to be completed in July 2012

3Please note that in preparation for COMPAL II, recommendations of the independent technical evaluation carried out by the donor were taken into consideration. In general, COMPAL II aims to help countries with the proper functioning of Competition and Consumer Protection systems, laws and policies, with the aim of improving the functioning of markets, and to enhance the competitiveness of local firms, including the informal sector, all of which result in higher consumer welfare. Within this framework, activities in the fields of Competition and Consumer Protection are carried out under the COMPAL Programme, which are mutually reinforcing and contribute to the protection of the rights and welfare of consumers through lower prices and a greater variety and better quality of products.

Si Signing of the COMPAL Frframework of Cooperation in GeGeneva on March 17, 2009, the GeGeneral Secretariat of UNCTAD anand the Ambassadors of the five cocountry founders ThThe COMPAL II Programme bebegan with five countries (CColombia, Costa Rica, El SaSalvador, Nicaragua, and Peru). D Due to the success of COMPAL I, fi five additional countries have Jo joined COMPAL (Bolivia, D Dominican Republic, Ecuador, G g Guatemala, Honduras, Paraguay, and Uruguay .

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COMPAL II Logframe

Intervention Strategy for the determination of the impact indicators I. Impact at the Regional Level a. Coherence between competition, trade and integration policies b. Capacity-building of the main stakeholders in order to enforce regional competition laws c. Strengthening of competition and consumer protection regional laws II. Impact at national level a.1. Legal Framework/Competition and Consumer Protection law enforcement a.2. Increased legitimacy of the competition authorities thanks to a better law enforcement and procedures. b. Better competitiveness of businesses (innovation and efficiency). c. Better prices and choice through the successful implementation of effective consumer protection policies. d. Contribution to a better market organization. e. Strengthening the cooperation between national competition and consumer protection authorities. Source: Logframes approved by SECO for COMPAL II.

1. UNCTAD, the implementing agency of COMPAL

According to the Memorandum of Understanding signed with each COMPAL beneficiary country, UNCTAD has the primary responsibility to guide the implementation of the countries’ Annual Operating Plans and activities. Moreover, it collaborates with National Coordinators in the beneficiary countries on the objectives of COMPAL. UNCTAD administers run the Programme budget according to the rules and procedures of the United Nations. Technical Supervision of the Activities The COMPAL Team in Geneva has monitored the specific implementation of all COMPAL activities with success and in a timely and effective fashion by means of, amongst others:

• Virtual meetings on a daily basis through Skype and/or other electronic media (see NARs), followed by formal exchanges of minutes of the meetings.

• To formalize meetings, videoconferences were organized periodically. For instance, a videoconference was organized when the New Procedures Manual of COMPAL was issued in December 2010.

• UNCTAD’s Competition and Consumer Policy Branch, composed of highly qualified officials of different national and professional backgrounds, analyze all COMPAL products in detail.

• Three officials at the Branch are devoted to COMPAL and are responsible for its performance.

In addition to the daily work of the COMPAL team in Geneva, the Programme counts on National Coordinators, who are also responsible for the implementation of activities in accordance with the approved logframes for each country. For example, regarding sectoral studies, COMPAL developed its own methodology for drafting of more than 24 sectoral studies to date. This methodology uses qualitative and quantitative

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economic analyses to study the performance of markets or sectors across the value chain. Further, it entails a multidimensional approach.4 Administrative oversight of the budget in accordance with UN rules

Another function of the COMPAL Team in Geneva is to manage the Programme budget and to issue reports on each activity. In this context, the Team has to ensure that rules and procedures of the United Nations are observed, including human resources regulations, travel expenses, shopping expenses, etc. The COMPAL Team in Geneva works with local offices of UNDP in each beneficiary country in order to ensure compliance with local contracts in each of these countries.

• Nacional Coordinators The involvement of beneficiary countries through National Coordinators has been a key element for the success of the COMPAL Programme. As members of the PMC in coordination with UNCTAD, National Coordinators are responsible for the timely and effective implementation of national activities. Moreover, National Coordinators actively participate in designing and carrying out regional activities. Thus, National Coordinators are responsible for the Programme along with UNCTAD. In some cases, two National Coordinators have been appointed, one in the area of Competition and one in the area of Consumer Protection. National Coordinators have diverse functions, namely: (i) to act as a liaison between the local authorities, the PMC and local and international consultants; (ii) to ensure coordination in the field and monitor the implemented activities; (iii) to participate in the preparation of studies, reports, seminars and workshops with members of the PMC; (iv) to identify consultants for the implementation of activities, according to COMPAL procedures; (v) to assist in the organization of activities and represent the PMC at the national level; (vi) to make proposals in order to improve the Programme’s performance and identify local opportunities to strengthen the Programme (through, for example, alliances with local entities); (vii) to participate in the design of training programmes as well as in the review of draft COMPAL documents such as manuals and reports; (viii) to contribute to the self-‐sustainability of the Programme at a national level, promoting the participation of civil society; and (ix) to monitor and review the work and products of the consultancies.

• Donors and partners

SECO is the main donor of the COMPAL Programme and part of the Strategic Direction Committee (SDC), which includes UNCTAD and COMCO. SECO's work does not only provide financial support to COMPAL activities, but also contributes with its vast experience of project management and technical cooperation. During Annual Conferences of COMPAL, SECO assesses the performance of activities and their impact as indicated in the logical frameworks. For example, in the 1st Annual Conference of COMPAL II held in San Salvador in April 2010, SECO played a key role in increasing coherence between the National Logframes, Annual Plans (POAs) and National Annual Reports (NARs) submitted by beneficiary countries. Therefore, new NARs and AOPs that have been submitted for the next COMPAL meeting in Lima will take into account SECO recommendations on this matter.

4 This methodology is different from those previously used, as it aims at conducting an exhaustive macroeconomic analysis of the sector at hand and also revising the legal framework (and highlighting cases where excessive regulation or the lack of it exists). The methodology includes the points of view of all relevant stakeholders along the value chain, and proposes public policy recommendations. This way, COMPAL ensures a tailor made product to developing countries.

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• The Advisory Group of Experts

The AGE is a group of independent professionals and experts in Competition and Consumer Protection Law and Policy in Latin America, who support the successful implementation of COMPAL activities. The AGE was launched along with the second phase of the COMPAL Programme. The functions of the AGE are: (i) to provide comments and suggestions to the COMPAL Team in Geneva for developing the strategy and activities of the Programme; (ii) to identify areas of potential interest to beneficiary countries of the COMPAL Programme; (iii) to contribute to the well-‐functioning and successful achievement of concrete activities of the Programme, namely, by providing comments and suggestions on reports, studies, legislation and bills on competition and consumer protection and participating in conferences, roundtables and other COMPAL events; and (iv) to participate in field missions in order to ensure the exchange of experiences and provide support to beneficiary countries of the COMPAL Programme. The AGE is composed of up to 12 persons known to have contributed to the design and implementation of Competition and Consumer Protection policies in Latin America. The membership of the AGE shows the geographical diversity of COMPAL members, although it is also open to nationals of non-‐member countries as long as their experience is deemed relevant to the COMPAL Programme. Due to the diverse nature of COMPAL activities, the AGE provides a significant contribution when analyzing national bills and regulations, elaborating sectoral studies and participating in capacity building workshops and disseminating events. Firstly, the AGE's support is particularly relevant in legal drafting as its comments and suggestions benefit from its members' experience from leading competition and consumer protection agencies. Thus, their views contribute to improve the content of proposed pieces of legislation. Secondly, regarding sectoral studies, the AGE participates not only at the substantive level (providing comments and improving the outcome) but also from the outset (helping in drafting the most suitable terms of reference). Finally, in relation to capacity building workshops and dissemination events, the AGE takes an active role in terms of design and participation. Each COMPAL Member State requires the support of the AGE when it deems it necessary. Although not all members of the AGE participate in all activities with the same dedication, they are all consulted for each activity. Therefore, documents released by the AGE contain a true collective view of all members. The AGE is one of the greatest assets of the COMPAL II for members lacking national funds, as it allows them to benefit from its vast experience at a very low cost.

Currently, the members of the AGE are:

1. Fausto Alvarado (Ecuador): Former Competition Authority of Ecuador; former member of the Andean Committee for Competition representing Ecuador. As an international consultant, he has participated in publications on competition and consumer protection. He holds a PhD in Jurisprudence and is an Attorney at law at the University of Cuenca. He has been linked to the public sector as Advisor and Secretary of the Permanent Commission for the Consumer of the Honourable National Congress of Ecuador. He is a consultant, Legal Intendant and Prosecutor of the Superintendence of Telecommunications; and advisor, consultant and Deputy Secretary of State of the Ministry of Industry and Productivity. He is also advisor to various international organizations such as: CAN, EU, CAF, UNDP. Finally, he is a Professor in Competition law (both at undergraduate and graduate levels) at the University of the Americas. 2. Julio Bendaña (Nicaragua): holds a master’s degree in Integration and International Trade Law from the University of Valladolid, Spain. He is the former Director General of Competition and Market Transparency in Nicaragua. He has held various executive posts in the private sector at both Nicaraguan and regional levels. He is an expert in Economic and Business Law, especially Competition and Consumer Law. He has been a leading drafter of bills while leading legislative procedures, especially regarding the economic efficiency of laws. He actively participated in actions aimed at improving the legal environment

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for trade and investment in Nicaragua. He has academic and working experience in economic integration issues and free trade agreements. He has published various articles on competition policy and has been a consultant to various businesses and public entities. 3. Luís Berenguer (Spain): holds a Degree in Law from the University of Valencia (Suma Cum Laude). He has practiced in corporate, competition and intellectual property law. He has been a Professor at the University of Valencia, Alicante, and at Carlos III (Madrid). He has also taught within master’s degree programmes and graduate studies on European and Competition Law. He is a former Minister of Public Administration of the Government of Valencia and Member of Parliament of Spain (spokesperson for European Affairs) during a period of thorough corporate legislation in Spain. He has been Member of the European Parliament, collaborating with the European Commissioner Mario Monti on European Competition Law reform. He is the former President of the Competition Law Court of Spain and participated in the reform of the Spanish Competition Law that created the National Commission for Competition in 2007. He was the first President of this Commission until his mandate expired on October 2011. Currently, he is the Special Counsellor to the Vice-‐President of the European Commission, Joaquín Almunia, on competition issues. He is also President of the Advisory Council on Competition Studies and President of the magazine "Gaceta Jurídica". He has published over fifty articles in the most prestigious law reviews, especially on competition law. 4. Juan Luís Crucelegui Garate (Spain): holds a Degree in Law by the University of Deusto and obtained a Diploma on European Law (1984) and a Diploma on Specialized Studies (1985) from the University Paris I Panthéon-‐Sorbone. Since March 2006 he has been a member of the Vasque Competition Law Court (President from 2006 until 2008 and currently Vice-‐President). He has been a member of the Vasque Regional Government (1994-‐2006) and an advisor of European Competition issues (1986-‐1994). He has a vast experience in academia. He is Professor of European Competition Law in the European Studies Institute since 1986, teaching a course on Competition Law in the Business Master’s degree at the University of Deusto since 2005. He has published numerous articles on the enforcement of competition law and policies at the Spanish and European levels, and has participated in various national and international roundtables. 5. Celina Escolán (El Salvador): is the former Superintendent of Competition of El Salvador and Judge of the Constitutional Chamber in the Salvadoran Supreme Court. She holds a Degree in Law from the University of Dr. José Matías Delgado and studied in the Iberoamerican School of Competition Law. She took part in the negotiation of international treaties with the EU and Canada on competition issues and is currently a member of the Advisory Group to the Consumer Protection Authority in El Salvador. She has written numerous academic and journalistic articles (especially in "La Prensa Gráfica"). 6. Fermando Furlan (Brazil): is the President of the Administrative Council for Economic Defence (CADE), since March 2011. He was the first President ad interim of CADE from November 2010 until March 2011. He was commissioner of CADE from 2008 until 2011. He was the Director of the Department of Commercial Defence in the Ministry of Development, Industry and International trade from 2005 until 2008. From 2003 until 2005 he was Chief of Cabinet for the same Ministry, where he has also been acting Minister. He was President of the Tax Council of the Brazilian Industrial Development Agency from 2004 until 2008. He has been a member of the Special Agency for Industrial Financing of the National Economic and Social Development Bank from 2005 and 2007. Prior to these responsibilities, he was CADE's Attorney General from 2001 until 2003. He has also held various posts in the Brazilian public service, such as the Supreme Court, and the National Congress. He has been a member and chief of delegations before international organizations (WTO, OCDE, UNCTAD, IADB, ICN). He received his PhD in 2006 from Paris I Panthéon-‐Sorbone and his master’s degree in 2000. He holds a Degree in Law from the University of Brasilia (1993) and a Degree in Business Administration from the University of Santa Catarina (1991). He has participated in various capacity building events in Brazil and abroad. 7. Patrick Krauskopf (Switzerland): is a partner at MCS-‐Law. He has previously worked in the Swiss Federal Supreme Court. He was the Director and Chief of International affairs of the Swiss Competition Agency (WEKO/COMCO). He has delivered conferences on contract law, civil responsibility and competition law at the University of Zurich (ZHAW), amongst others. He has been requested as an expert in competition law by various organizations: UNCTAD, WTO, ICN and CUTS. During his mandate at WEKO/COMCO he lead the revision of the Swiss Cartel Law of 2003, the resolution over automobiles (BER) of 2002 and the regulation over sanctions and the leniency programme of 2004. He studied at the University of Fribourg, the University of Berkeley (Master’s Degree, 1991 and PhD, 1999) and at Harvard University in 2005. He can practice before any Swiss Court and holds the New York Bar Exam.

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8. Ricardo Maguiña (Peru): holds a Master’s Degree in Business Administration (MBA) from the University of Piura (Peru) and IESE (Spain). In 1999, he obtained a Master’s Degree in Business Law. He is a Peruvian lawyer. He has taken various courses on competition, regulation, consumer protection, industrial property, marketing and commercial management from Argentina, Spain, Japan and Peru. He is a Professor in the Graduate Programme, lecturing on Consumer Protection, Advertisement, Competition, Institutional Strengthening, Crisis Management and Public Policies. He is a member of the Telecommunication Claims Tribunal and the President of the Competition and Consumer Institute (IPCYC), Executive Director of the National Self-‐Regulating Advertisement Council (CONAR), and Advisor to the National Advertisers Association (ANDA). He has been a consultant for several international organizations in over ten Latin American countries. He has been a member of the North South Decentralized Commission on Consumer Protection and of the Competition Commission (INDECOPI) from 1996 until 2002. 9. Edgar Odio (Costa Rica): is a former commissioner of COPROCOM, Costa Rica. He is a lawyer and holds degrees on EU Competition Law and Economics from Kings College, University of London. He holds a Master’s Degree on Economic Development in Latin America from the University of Essex. He has undertaken posts in the public and private sectors in Costa Rica. He has wide academic experience as Professor of State Theory at the University of Costa Rica and Professor in Competition Law at the University of La Salle, among others. He has several publications in the field of competition. 10. José Roa (Chile): is a lawyer from the University of Chile, where he teaches Consumer Rights. From 1999 to 2000 he worked in the Council of Paihuano in the programme Servicio País of the National Foundation for Overcoming Hunger. In 2000 he joined the National Consumer Service (SERNAC), where he became Director between 2005 and 2010. He was awarded a Fulbright Scholarship to study Human Rights in the Washington College of Law (2010-‐2011). 11. Santiago Roca (Peru): is the former President of the Directorate (2004-‐2006) of the National Institute for the Defence of Competition and Intellectual Property Protection (INDECOPI). Currently he is a Professor in Economy and Finance and Director of the CEPIC Centre of the Graduate Business School at ESAN University in Lima. He has been a Main Advisor (2008-‐2009) in the Office of Competition and Consumer Protection Policies of UNCTAD. He has been a member of the INDECOPI Competition Court (2002-‐2004). He has been a consultant for WIPO, IADB, ILO, and the World Bank, among others. He has been a visiting Professor in the Business School of Arizona State University (2000 and 2001) and Pennsylvania University (1985-‐1987). He has been a lecturer in The Hague Social Studies Institute (1981-‐1982). He holds a PhD and Master in Arts from the University of Cornell. 12. Gustavo Valbuena (Colombia): is the former Superintendent for Industry and Commerce of Colombia. He is a lawyer by the University of the Andes, with a specialization in Administrative Law from University Paris II Panthéon-‐Assas. He holds a master’s degree in Public Law from University Paris I Panthéon-‐Sorbonne; an LL.M. on European and International Business Law from the University Paris II Panthéon-‐Assas; and is a PhD candidate at the University Paris I Panthéon-‐Sorbonne. He has been linked to the public sector for most of his career, where he has been advisor to the Treasury Ministry. He was a member of the Legal Secretary to the President and of the Advisory Council of the Financial Superintendence of Colombia. He is a member of the Commission for the revision of the Administrative Jurisdiction and a permanent guest of the Intersectoral Commission on Public Procurement.

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Section II

COMPAL from

July 2011 to June 2012

The main source of information used for the preparation of this report comes from the National Annual Reports (NARs) prepared by the 12 member countries from July 2011 to June 2012. This year the original version of the NAR was modified towards better assessing the impact of national and regional activities. The new NAR 2011 was prepared by the CTG and used in the external evaluation of COMPAL II commissioned by SECO.

During the third year of COMPAL II (beginning after the approval of the AOPs in August 2011) and having accomplished the established priorities linked to the set strategy during the first year, deepened activities and maximized their impact on COMPAL II, they established a priority to further strengthen the exchange of experiences between COMPAL countries, to create synergies between the results of the activities initiated and completed. Also, in order to expand the spectrum of action of COMPAL and establish synergies between ongoing activities since the first year of COMPAL II, the Programme has expanded to a group of partner countries. COMPAL granted technical cooperation to the Ecuador, Guatemala and Honduras sustained by their own funding. Paraguay and Uruguay also have national projects and have

benefited from the COMPAL regional component. Thus, the scope of the COMPAL Programme in Latin America includes countries from Central America and the Caribbean (Costa Rica, El Salvador, Nicaragua and the Dominican Republic), member countries of the Andean Community of Nations -‐ ACN -‐ (Bolivia, Colombia, Ecuador and Peru), Chile and MERCOSUR (Brazil, Paraguay, Uruguay). The Programme is open to other initiatives from remaining Latin American countries and to other countries expressing interest in collaborating with COMPAL.

It is evident from the outset that beneficiary countries of COMPAL differ in experiences and development of competition and consumer protection policies. Therefore, each national project takes into account national priorities and designs the most effective activities that will promote learning among beneficiaries and partners. In addition, COMPAL has benefited from the experience of staff and consultants in the Latin American region, of UNCTAD experts and of consultants providing rigor, practical experience and knowledge of the region.

New NAR Model of 2011

The GAR 2011 is based upon NARs prepared by National Coordinators. For this purpose UNCTAD prepared a new model of NAR focusing on impact of COMPAL II to better design COMPAL III from June 2013.

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The National Component of COMPAL II5 The COMPAL Programme displays an inductive approach, that is, activities spring from local necessities to then grow synergies with other activities. The concentric circle begins with activities from the same national competition or consumer protection authority and other national institutions (sectoral regulators, academia, private sector, etc.) The value added of the national component is to achieve sustainability over time, even after COMPAL, by creating synergies between different activities and projects of the COMPAL Programme at the national level. Once activities are effectively consolidated at the national level, we can feed that experience into other COMPAL member countries and thus create cross-‐border exchanges of experiences. Here we find the link between national and regional components of the COMPAL II. National Annual Reports (NARs) presented by the National Coordinators report COMPAL activities on a yearly basis, making express reference to the impact they have had. These reports contain: a. The constant search by beneficiary countries for international best practices (i.e. activities in Nicaragua in the production of manuals, guidelines and methodologies). b. The commitment of the competition and consumer authorities to issue decisions of substance and quality (i.e. compilation of rules and resolutions in Colombia and Peru). c. The need to collect and disseminate information on each case under investigation (whether on competition or consumer protection) in a systematic way and in accordance with binding administrative jurisprudence. (i.e. Manual of Good Practice in Research Techniques in Nicaragua, Administrative Procedures Manual for COPROCOM in Costa Rica, etc). d. The need to draw public policies, reducing barriers in doing business (i.e. Policy Framework Antitrust in Bolivia). e. The search for coherence between competition policy and other public policies such as investment promotion, industrial policy, etc.

5 National ongoing activities are organized according to the agreed Intervention Strategy for COMPAL II. National projects have been implemented in accordance with national AOPs and fulfilled the strategy of the COMPAL intervention. These elements must be evaluated in conjunction with the NARs prepared by national coordinators. Reference is made for each activity to the issues that help in assessing their national and regional impact. Please see the NARs submitted by countries as well as COMPAL Logicical Frameworks.

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Bolivia

• Authorities: Mr. Huáscar Ajata, Deputy Minister of

Commerce and Exports, and Mr. Mattias Garrón, Executive Director for the Social Control of Enterprises (AEMP).

• National Coordinator: Jaime Luna and Mattias Garrón. • Membership: Since 2003, founder of COMPAL. • Results: Approval of the Supreme Decree of April 2008 for

the creation of the Superintendent of Businesses. Campaign to raise public awareness on:

1. Anti-‐monopoly Framework Policy 2. Consumer Protection Framework Policy 3. Sustainable Development 4. Anti-‐Competitive Practices Manual

• Perspectives: Capacity building for the new members of the AEMP and support for the government's drafting of the Anti-‐monopoly Law and the Consumer Protection Law.

Main achievements and results in 2011-2012 Bolivia has been successful in harmonizing its competition policy with its Constitution of 2009. The latter distinguishes four types of economic organizations (private, social-‐community, cooperative and State), which require legislation to enhance integration. In this sense, UNCTAD's Framework Policy of 2010 is the result of the work of Bolivian authorities and a task force specifically created for this purpose (composed by Fausto Alvarado, Julio Bendaña, Edgar Odio, Francisco Sigüeñas and members of the CTG). This policy intends to put monopoly prosecution in line with other public policies in order to ensure a smooth enforcement of all of them. One recommendation was to adopt an anti-‐monopoly law, among other measures. The Anti-monopoly Bill intends to: "regulate the relationships between actors of the plural economy, preventing and, if needed be, prosecuting the abuse of a dominant position in the market and any other practice aiming to control in exclusivity the production and distribution of goods and services". During the present period (2011-‐2012), the AGE has provided substantive comments on this Bill in order to ensure its correct enforcement. On 21st July 2012 there will be a Meeting of Bolivian Members of Parliament and Members of the CTG to present the AGE recommendations and carry out some other dissemination events.

Deputy Ministers of Bolivia: Fernando Fuentes and Huáscar Ajata, with Pierre Horna of UNCTAD.

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Colombia

• Institution: Superintendencia de Industria y Comercio (SIC),

responsible for competition and consumer protection. • Authorities: Mr. José Miguel De La Calle, Superintendent, Mr.

Pablo Marquez (on competition) and Ms. Carmen Ligia Valderrama (on consumer protection)

• National Coordinator: Juanita De Castro. Chief of International Affairs.

• Membership: 2009. • Results:

1. Web page containing legal digest with millions of consultations.

2. Sectoral Studies on: energy, gas (ongoing) and e-‐commerce.

3. Media Strategy with CD 3 million in free press. 4. Internships on ACODECO.

• Perspectives: third phase of legal digest and continuation of sectoral studies.

Main achievements and results in 2011-2012 Colombia has proved its commitment to the COMPAL II in its third year of membership. The Institutional Legal Memory on Competition Law and Consumer Protection (fulfilling SIC's mandate as contained in Law 1340 of 2009) has been a key activity and is being used in 50% of SIC's resolutions. This activity comprises not only primary documentation but also a series of technical factsheets analyzing SIC's case law. It is thus possible to understand SIC's resolutions within the larger context of Colombian law. Both civil servants and the general public have access to this programme, which increases its impact internally (for the resolution of cases) and externally (increasing transparency and visibility of SIC with more than two million searches since 2011). Available at: www.avencejuridico.sic.gov.co/sic/docs/. Civil servants consider this programme has significantly helped them at fulfilling their functions more efficiently. However, some improvements could still be made (such as fine-‐tuning search criteria). The final definition of the third and last phase is under way, and its implementation is expected in 2012-‐2013. Between July 2011 and June 2012 three sectoral studies have been carried out: energy, gas and e-‐commerce. The studies on energy and e-‐commerce are finalized, receiving very positive feedback from the SIC, which values the recommendations contained within. The study on the gas sector is not yet in its final stage. The Sectoral study on energy recommends that the SIC, along with other sectoral authorities (CREG and SSPD), defines the basic information needed to monitor the behaviour of economic agents and to identify competition related practices. Moreover, it recommends the SIC and CREG to phase out the content of article 1 of CREG's Regulation 183 of 2009 and to study the possibility of implementing mechanisms for those generators whose size is representative, to offer a certain percentage of their output to other markets, thus limiting their market power. It is worth noting that the study has had a decisive impact on the

Dr. José Miguel De la Calle with the Deputy Secretary General of UNCTAD and Hassan Qaqaya.

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handling of claims and the definition of relevant markets in investigations for anticompetitive practices. Finally, a Capacity Building Workshop was held on 12 April 2012. The Sectoral study on e-commerce points to the fact that fares for internet services, due to their high cost in Colombia, show that operators hold high market power in a market with little competition. Thus, it is necessary to revise the schemes to allow for an increase in the degree of banking transactions and their security. It is also necessary to establish mechanisms to allow the population without access to banking to

be able to access alternative payment systems. Finally, it is important to invest resources in raising awareness on the safe use of e-‐commerce. SIC took these recommendations into consideration when proposing regulations to Law 1929 of 2007 before the Ministry of Commerce, Industry and Tourism. The Media Strategy on competition and consumer protection issues has standardized the institutional brand of SIC, obtaining 100% coverage of its activities. This has been possible by portraying the Superintendent as a reliable source of information for media and by achieving a better use of their communication niches. In this sense, the SIC has established better mechanisms for the diffusion of trending topics through the strategy "not everything is news". It is estimated that there has been an exposure

of over USD 3,000,000 in free press. Lastly, the Internships in ACODECO have produced a positive impact. Interns considered this experience to be very beneficial, since it has allowed them to know the day-‐to-‐day work of a model of consumer protection that is a source of inspiration for the Colombian one. In this sense, SIC has been able to get acquainted with the management of virtual records, brand strategies and decentralization of services.

Bogotá, September de 2011: Presenting the E-Commerce Study Results.

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Costa Rica

• Authorities: Ms. Victoria Velazquez, Executive Director of COPROCOM and Ms. Cynthia Zapata,

Executive Director of DAC • National Coordinator: Hazel Orozco (COPROCOM) and

Marycruz Goñi (DAC). • Membership: Since 2003, founder of COMPAL. • Results:

1. New market monitoring system 2. Proposal for the Regulation to article 19 of the

Patent Law 3. New fact capturing System 4. New web page 5. Update of printed materials

• Perspectives: UNCTAD will establish a programme for capacity building on enforcement for DAC's civil servants.

Main achievements and results in 2011-2012

Costa Rica has grown to currently become of the most vibrant defenders of competition and consumer protection in Central America. COPROCOM has received a Proposal for Regulation on Article 19 of the Patent Law, following the conclusions of the roundtable: "Competition Policy and its enforcement on Industrial Property Rights". The report commissioned for the proposed regulation has had very positive feedback in COPROCOM, since it fills a vacuum of legal uncertainty. Likewise, during the period 2011-‐2012, a new design of COPROCOM's webpage has been produced (www.coprocom.go.cr), which is currently in trial. This webpage includes a search function for COPROCOM's resolutions using various search criteria (resolution number, vote number, name of parties, keywords, etc). It is also possible to subscribe to COPROCOM's news bulletin, which increases visibility and relevance of the agency while providing legal certainty to all stakeholders. The design of a Search Programme for Consultations and Claims is to be carried out during 2012-‐2013. DAC has an Automatic System for Market Monitoring (SAMM) that provides information in real time on studies and reports in a user-‐friendly manner to all stakeholders (encompassing over 3300 products of various sectors). On 21 May 2012, UNCTAD and DAC organized the official launch of the system before various consumer organizations. One of the main conclusions of this event was the need to link the information contained within the programme to the information used by COPROCOM for investigation purposes. Additionally, there have been presentations on the Case Handling System and a Seminar on Safe Products. These events have brought together civil servants from the Ministry of Economy, Industry and Commerce, consumer associations, lawyers and other stakeholders of the private sector. The event has allowed the public to get to know the methodology used by DAC in these cases. Indeed, one of the most important activities this year has been the successful hosting of ICPEN, with over 134 participants from19 counties, two international organizations and the NGO Consumer International.

Hassan Qaqaya and Cynthia Zapata

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The conference included a 'Best Practices Workshop' and various master’s courses (taught by members of academia and high authorities of consumer protection agencies) that allowed all civil servants of DAC to be trained in depth. DAC is also currently undertaking the Updating of all Graphic Materials, including: the Regulation on the Competition Promotion and Consumer Protection Law, the Regulation on Credit and Debit Cards and the upcoming Regulation for Instalment Sales. The design is finalized for Law and Regulations in pocket and hardcover formats, as well as the design for brochures. DAC is waiting for the enactment of the Regulation for Instalment Sales to begin printing them. Once printed, they will be massively disseminated, thus increasing popular awareness.

San José, May de 2012: Presentation of SAAM to Consumer Associations

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El Salvador

• Authorities: Mr. Francisco Diaz Rodriguez,

Superintendent of Competition and Ms. Yanci Urbina, President of the Consumer Defence Office.

• National Coordinator: Aldo Calder and Regina Vargas (Superintendencia de Competencia) and Pedro Martín García (Defensoría del Consumidor)

• Membership: Since 2003, founder of COMPAL. • Results:

1. Competitive funds for Consumer Associations.

2. Forum on the education and promotion of consumer rights.

3. Guides on sustainable development. 4. Study on decentralized offices.

Perspectives: continuing to strengthen capacities of consumer associations. Final phase for sectoral studies and continuation of judges' capacity building.

Main achievement and results in 2011-2012 El Salvador has been an active member of COMPAL during the period 2011-‐2012. Regarding competition,

SC and UNCTAD organized a Capacity Building Workshop for Members of the Supreme Court on the Application of Competition Law from 17 to 19 October 2011. The workshop was chaired by Mercedes Pedraz (Audiencia Nacional of Spain) and Carolina Horn (TDCL-‐Chile), with the support from experts from UNCTAD (Pierre Horna and Pablo García). The event was preceded by a series of preparatory videoconferences between members of the Supreme Court of El Salvador, judges from Chile and Spain and members of the CTG. This four day workshop analyzed the following topics: (i) the role of economics in competition cases; (ii) the multi-‐disciplinary approach to competition cases; (iii) the handling of proof in

competition cases; and (iv) fines and compensation to be imposed and judicial revision of cases. The workshop received very positive feedback from those present and succeeded in strengthening regional and international cooperation. A second workshop is planned for the second half of 2012.

El Salvador Supreme Court Training: The Role of the Judicial Power in Competition Law Enforcement. October 2011

Francisco Diaz and Regina Vargas with Pablo Garcia and Pierre Horna of UNCTAD.

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Moreover, a Study on the Port Sector is due to be carried out in 2012-‐2013, in order to shed light over such an important sector for the local economy. A very positive synergy has been established between the SC, INDECOPI (Peru) and CFC (Mexico) by which the latter will share their experience and case law in this matter. This evidence of regional cooperation allows for cost reduction and harmonization of approaches in this sector. Regarding consumer protection, the DAC has been able to handle 188,471 cases and to initiate 5,999 inspections to date. Fulfilling the mandate of strengthening consumer protection culture in El Salvador, the activity Competitive Funds for Consumer Associations has already executed 5 of the 7 projects planned. The main theme was the enforceability of consumer rights before public service providers under the Consumer Protection Law. This activity allows funding consumer association projects being awarded after

a national competition. This way, associations are empowered with legal and technical instruments. On the other hand, associations developed their technical capacities when carrying out their projects; inter alia, on meter reading, detection of water leaks, and wrongful registration of electricity and water volumes used. Participating organizations also carried out didactic workshops on the rational use of public services and the need to preserve them. Further exchange of experiences meetings among between associations are planned for next year. Finally, the “Consumer Rights and Consumer Education Forum” gathered 156 participants from academia and consumer associations. The event benefited from an excellent media coverage, which reinforces the visibility of DAC vis-‐à-‐vis Costa Rican civil society. On this same didactic line, DAC and the Ministry of Education organised 10 capacity building sessions for 9 schools on a pilot project for producing Didactic Guides on Sustainable Consumption. This experience will be the base for a 2012-‐2014 strategy on its implementation at various levels of the education ladder. Lastly, a Report on Decentralized Offices of DAC has been

submitted. These offices have already received 3,187 consumer claims and thus needed some assessment. The main recommendations revolve around the need to strengthen human resources, to analyze increases in claims and to standardize response mechanisms to those claims.

"The project has contributed to the strengthening of associations at the municipal level through the promotion, spreading and resolution of basic problems related to consumer rights” David Molina, President of the Santa Elena Consumer Association on the Competitive Funds activity.

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Nicaragua

• Authorities: Mr. Luis Humberto Guzmán, President of the Directive Council of Procompetencia and Ms. Verónica Rojas, Deputy Minister of Indutry, Public Works and Commerce (MIFIC)

• National Coordinator: Mr. Haraxa Sandino (Procompetencia) and Ms. Maribel Macias (Protección del Consumidor)


1. Legal Advice to the President of PROCOMPETENCIA.

2. Market Fact Sheets for most relevant markets. 3. Study on the Legal Status of Public Aids. 4. Manual on the procedures on Consumer

Protection. 5. Legal registry of 32 cooperatives. 6. Study on the Regulation of the National

Market 7. Increase of 10 products in the Market Price Observatory.

• Perspectives: Increase in technical cooperation and capacity building activities. New case-‐law search motor. Seminary on Consumer Law and Internships in other Latin American Agencies.

Main achievement and results in 2011-2012 Nicaragua has become one of the most active members of COMPAL II. PROCOMPETENCIA has benefit form the Legal Counsel to its President on various matters, and has been able to handle 630 administrative decisions in the periods 2011-‐2012. The activity is framed within the institutional strengthening policy of UNCTAD in strategic public policy formulation, meaning that UNCTAD shares its experience and capacities with PROCOMPETENCIA in other to accompany and advise the young agency in defining its institutional strategy. This cooperation has been most fruitful, enriching the COMPAL Programme as a whole. In particular, 14 Market Fact Sheets have been produced comprising: agricultural chemicals, banking, beer, cement, edible oil, hydrocarbons, meat, medicines, milk, mobile phone services, poultry, sugar, rice, and wheat flour, thus contributing to improve their functioning and serving as base for subsequent investigations. Additionally, a Study on the Legal Status of Public Aids has been conducted, containing an exhaustive compilation of public aids, a comparative study, and a methodology for PROCOMPETENCIA. In order to maximize its relevance and visibility, a new webpage has been designed for the agency (www.procompetencianic.org) Further, PROCOMPETENCIA has carried out 50 Training Workshops (gathering over 500 people) on the promotion of competition culture in Nicaragua The Substantive Working Group is a new initiative that has been taking place over the last months. It aims at training the economist team working in PROCOMPETENCIA, through online meetings on a weekly basis. Up to now the main topic under discussion has been the economic analysis of mergers, but future ones will delve on: the theory of harm, abuses of dominant positions and public aids. The teaching team is composed by: Walter Bonora (Chief of the Mergers in CNDC, Argentina), Germán Coloma (consultant, UNCTAD), Juan Pablo Herrera (Chief of Economic Studies in SIC, Colombia) and Pablo García and Patricia Cordovilla (CTG, UNTAD). This support scheme for the Nicaraguan competition agency could be replicated in other COMPAL beneficiaries in the near future.

Deputy Minister Verónica Rojas, Saramelia Rosales and Maribel Macias of MIFIC along with Hassan Qaqaya of UNCTAD

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MIFIC has been very active in consumer protection. The Manual on Proceedings has had a very positive feedback and includes: a guide for consumers when filing claims; a manual to handle administrative claims; working instructions in this area; and a general guide for consumers. Its implementation will begin in July 2012. Further, MIFIC has been able to Legalise 32 cooperatives (incorporated in INFOCOOP and establishing accounting books), which has benefit over 1,000 people. MIFIC’s mandate to supervise markets has been supported by a Report on the Regulation of Retail Sales, the Manual on Good Business Practices and the Wholesale Price Observatory (all of them are in their final stage). Lastly, ten more products have been added to the Market Price Observatory (adding up to a total of 41 products since 2005: www.observatorio.ific.gob.ni/sisprecio/).

February 2011: Training workshop on merger control (Procompetencia).

Legalizing Cooperatives (MIFIC).

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Peru

• Authorities: Dr. Hebert Tassano. President of del

Directorio del Instituto Nacional de la Defensa de la Competencia y Propiedad Intelectual (INDECOPI).

• National Coordinator: Mr. Mauricio Gonzales, Chief of International Relations of INDECOPI.


1. Compilation of peremptory decisions on competition and consumer protection.

2. ABC on unfair competition. 3. 7 educational programmes on consumer

protection for children (with 2D/3D animation).

4. Study to measure the impact of bureaucratic barriers in the market.

• Perspectives: continuing with the decentralization plan (training for ORIS) and creation of a Regional Consumer Centre.

Main achievement and results in 2011-2012 Peru has continued to consolidate its central role within the COMPAL Programme throughout 2011 and 2012. UNCTAD has also provided strategic guidance in the drafting of public policies in the country. UNCTAD and INDECOPI have undertaking various initiatives, such as the Strategy for Consumer Code Implementation and the Bill of Mergers and Acquisitions. In this sense, the CTG met Mr. Jaime Delgado, President of the Commission for Consumer Protection of the Congress of the Republic to analyze the implications of the Consumer Code for Peruvian society. Moreover, the Bill on Mergers and Acquisitions has received comments form the AGE and various dissemination events have been organized. A round table on: "National Experiences on Merger Control" has been included in the agenda of the III Annual Conference of COMPAL. During 2011 and 2012 various activities of COMPAL II were carried out. One of the most successful ones was the production of Seven Educational Programmes on Consumer Protection. These are presented by children and include 2D/3D animations. This activity has received very positive feedback from INDECOPI and from the general public. A key to its success is not only its attractive format, but also the way in which it succeeds in explaining difficult issues in a didactic manner. The topics covered are: consumer rights and obligations, right to information, right to non-‐discrimination, suppliers obligations and the role of INDECOPI in protecting consumers. Massive dissemination should follow throughout 2012. Moreover, the agency has received and validated an Online Course on Consumer Protection directed towards civil servants posted in local/decentralized offices of INDECOPI. This activity derives from the decentralization strategy adopted by INDECOPI pursing the improvement and uniformity of services provided nationwide. The course has been validated by INDECOPI and comprises the following topics: financial services, education, health, security, real state, transportation and regulated sectors. Likewise, the course also delves on common misunderstanding on consumer rights and on the sanctioning procedures

Dr. Hebert Tassano con Hassan Qaqaya y Pierre Horna en la UNCTAD XIII, Doha, Qatar en aril de 2012

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against law breaches. This activity aims at ensuring that agents in decentralized offices (ORIs) hold the same level of excellence as in the central office in Lima. Nevertheless, face-‐to-‐face training has also been a priority for COMPAL. Agents in ORIs have received Technical Training through various exchange programmes between them and central offices and from master classes taught by international experts. This aims at ensuring the uniformity and quality of services provided by ORIs. Due to the success of the activity its continuation is foreseen for 2012 and 2013. Lastly, COMPAL has developed a Manual for Labelling targeting retailers. This activity has sprung from addressees who required INDECOPI some kind of guide for labelling products. The manual has received positive feedback as it provides much needed legal certainty to the retail sector. Ultimately, it directly benefits consumers, who will be better and more evenly informed when taking their consumption decisions. All these activities support INDECOPI in training consumers, suppliers and its own civil servants.

Peru, March 2012: Support campaign for the Bill on Mergers and Acquisitions

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New Beneficiary Countries

We have so far summarized the activities of COMPAL member countries enjoying a national component funded by SECO. We now present the developments in institutional strengthening and capacity building in competition and consumer protection in Ecuador, the Dominican Republic, Honduras, Guatemala, Paraguay, and Uruguay. These countries are benefiting from the COMPAL Programme through their own funding and through the regional component of COMPAL II. The strategy pursued in these countries encompasses the exchange of experiences and also the adaptation of COMPAL products to their own needs. The AGE has been particularly relevant in so doing, since many of its members have taken part in national projects where ‘know how’ can be transmitted to other countries.

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Ecuador

• Authorities: Ms. Verónica Sión, Minister of Industry and Productivity.

• National Coordinator: Ms. Maria Teresa Lara, Deputy Secretary of Competition and Consumer Protection.

• Membership: Since 2009, with ad-‐hoc activities, and since 2011 as a full member of the COMPAL following the conclusion of the MOU in the II Annual Conference in Bogota, July 2011.

• Results: 1. Debate on the Law on Regulation and Control

of Market Power. 2. 2 Academic Seminars on the Law on

Regulation and Control of Market Power. • Perspectives: capacity building programme for the

new competition agency.

Main achievement and results in 2011-2012 The COMPAL Programme has supported the legislative process leading to the enactment of the Law on Regulation and Control of Market Power in Ecuador. Well before its adoption, Hassan Qaqaya and Pablo García of UNCTAD were invited to participate in a Debate on the Bill on Regulation and Control of Market Power organized by SEMPLADES and MIP on 15 August 2011. This event aimed at supporting and disseminating the content of the Law before the public and private sectors, as its object is to: “prevent, correct, remove and sanction the abuse of economic operators with market power; to prevent, prohibit and prosecute collusive agreements and other restrictive practices; to control and regulate mergers and acquisitions; and to prevent, prohibit and sanction unfair competition, towards market efficiency, fair trade and general welfare of consumers and users, for the establishment of a social, supportive and sustainable economic system.” In order to support the legislative process, Gustavo Valbuena travelled to Ecuador as a delegate of the AGE. The Law was finally enacted in October 2011. It was then time to reflect on the implications of this new legal framework, and the possible adoption of some kind of regulation. Once the text of the regulation was developed, the Ecuadorian agency and UNCTAD organized two Academic Seminars to debate the content and the repercussions of the Law and the Regulation (especially regarding abuses of dominant position). The first Seminar took place in the Espíritu Santo University in Guayaquil on 8 March 2012 and the second one in the University of the Americas in Quito on 9 March 2012. Both events gathered numerous members of the academic world and the private sector and all their conclusions were taken into consideration in the administrative process for adopting the Regulation on the matter. It is important to note that the executive branch has proposed a short list of Candidates to lead the new Competition Authority. Once the agency starts operating, cooperation between Ecuador and UNCTAD will swiftly develop into concrete activities. In this sense, UNCTAD will continue supporting the young agency through various capacity building programmes.

UNCTAD’s Secretary General with the Foreign Affairs Minister, Minister Verónica Sión, Maria Teresa Lara and Hassan Qaqaya

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Dominican Republic

• Authorities: Ms, Anina del Castillo, Deputy Minister of

Industry and Commerce, Ms. Altagracia Paulino, Executive Director of Proconsumidor, and Mr. Luis Reyes Santos (since 2011), President of the Directive Board of Procompetencia.

• Nacional Coordinator: Mr. Antonio Rodriguez (Procompetencia) and Ms. Alba Moya (Proconsumidor)

• Membership: Since 2009 funded by the Spanish Cooperation Agency. Currently, the new competition agency is negotiating its accession. Proconsumidor is a member of COMPAL since 2010.

• Results: 1. Conclusion of Dominican Republic-‐UNCTAD

MOU 2. Foundations for a National Competition Policy 3. Participation ICPEN

• Perspectives: strengthening of Procompetencia's capacities. Active participation of Proconsumidor in international fora.

Main achievement and results in 2011-2012 The government of the Dominican Republic applied for membership of the COMPAL Programme in 2009, after the success of COMPAL I. A programme of technical assistance was made possible by the funds of the Kingdom of Spain. Its main goal was to support the institutional building process since the enactment of the Competition Law of 2008. Three sectoral studies were carried out in 2010 (on construction, poultry and load/freight transportation). These were followed by dissemination events on competition issues before civil servants from the Ministries of Finance, Economy and Public Administrations. Upon request of the Minister of Public Administrations, it was agreed to hold a Benchmarking Event on the best institutional outfit for the competition agency (which is an integral part of the National Competition Policy). This event took place in February 2011 with the participation of the President of the Competition Commission of Spain, a representative from the Free Trade Commission of the USA, a representative of CADE (Brazil) and the former Superintendent of El Salvador. It is worth noting that the event was sponsored by the Ministry of Public Administrations, who is responsible for overseeing the development of the new competition agency in the Dominican Republic. Finally, in 2011 the President of the Republic appointed the members of the Board of Directors of Procompetencia, which marks la milestone in the relationship with COMPAL regarding institutional strengthening. Regarding consumer protection, the Dominican Republic has innovated in the South-‐South cooperation fluxes. During the ICPEN meeting in Costa Rica, Peru agreed to cede its intellectual property rights over various COMPAL products to the Dominican Republic to enable replication of activities.

Dr. Anina Del Castillo and Dr. Altagracia Paulino with Hassan Qaqaya of UNCTAD.

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Guatemala

• Authorities: Mr. Abel Cruz, Deputy Minister of

Commerce. • National Coordinator: Edgar Reyes. Director General

of Competition • Membership: Since 2011 following the conclusion of

the MOU in the II Annual Conference in Bogota, July 2011.

• Results: 1. Conclusion of Guatemala-‐UNCTAD MOU 2. Foundations for a National Competition

Policy. • Perspectives: launching of capacity building and

technical cooperation activities. Drafting of a Competition Bill. Drafting of a National Competition Policy

Main achievement and results in 2011-2012

A new period of cooperation has opened between Guatemala and UNCTAD since the recent signature of the Guatemala-UNCTAD MOU. COMPAL is ready to put its experience to the service of competition and consumer protection in the country. One of the first steps after the launching of any cooperation agreement with UNCTAD is the drafting of a National Competition Policy (for which UNCTAD’s Framework Policy can be a source of inspiration). The National Competition Policy does not only stress the importance of enacting a competition law, but also explains the need to harmonize competition policies with the rest of public policies in the country (industrial, trade, universal services, etc.) To this end, members of the CTG went on mission to Guatemala in October 2011 to conduct consultations with stakeholders from the executive and legislative branches, the academic world, and the private and associative sectors. This mission was also composed of delegates from competition agencies of El Salvador and Costa Rica, who contributed with their experience in drafting competition policies. The result was a wide consultation on the impact of competition in Guatemala, along with the comparative analysis with other regional agencies. UNCTAD’s Model Law on Competition, a worldwide landmark, was presented as a model for Guatemala’s coming competition law. Finally, Guatemalan representatives met the members of the CTG to establish the foundations of future cooperation projects and to draft the Guatemalan Competition Policy.

National event in Guatemala City

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Honduras

• Authorities: Mr. Oscar Lanza Rosales, President of the Commission for the Defence and Promotion of Competition.

• National Coordinator: Mr. Efraín Correa, Director of the Commission for the Defence and Promotion of Competition.

• Membership: Since 2011 following the conclusion of the MOU in the II Annual Conference in Bogota, July 2011.

• Results: 1. Conclusion of Guatemala-‐UNCTAD MOU 2. 2 Seminars on Competition

• Perspectives: 1. Launching of capacity building and technical

cooperation activities 2. Participation of Honduras in the regional

component

Main achievement and results in 2011-2012

Honduras was formalized its accession to the COMPAL Programme in May 2010 through the conclusion of the Honduras-UNCTAD MOU. Previously, the CDPC organized a roundtable on: “State Interventionism and Competition Policy” which gathered over 30 high authorities of Honduras (including Members of Parliament) and members of the CTG. One of the results of this round table was the launching of a task force including representatives from the legislative and executive branches (also the CDPC) for the establishment of a common agenda in phasing out technical barriers to competition among other anticompetitive practices. This is equivalent to the drafting of a National Competition Policy and is essential to ensure the success of competition in the country. In order to raise awareness among the traditionally sceptical private

sector on the benefits of competition, the CDPC organized a seminar on: “The Importance of Competition for Businesses, Consumers and National Development.” This event also presented the channels for cooperation between Honduras and the COMPAL Programme. This well attended seminar foresees a promising future of cooperation within COMPAL II.

National Event in Tegucigalpa on 15 May 2012.

May 2012: Official Launching of the COMPAL Programme in Honduras.

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Paraguay

• Authorities: Mr. Edgar Cuevas, Deputy Minister of

Industry and Trade (MIC). • National Coordinator: Mr. Ricardo Herreros,

Director of Trade Defence of MIC. • Membership: Since 2009, beginning of COMPAL II. • Results:

1. Enactment of the Paraguayan Competition Law

2. Conclusion of Paraguay-‐UNCTAD MOU • Perspectives:

1. Launching of capacity building and technical cooperation activities.

2. Participation of Paraguay in the regional component.

Main achievement and results in 2011-2012 President Fernando Lugo showed his interest in the COMPAL Programme by receiving the CTG in the Palacio de los López in November 2009. It was at that time when the fruitful process of cooperation between UNCTAD and Paraguay began, particularly with the legislative process on competition. It is worth noting that COMPAL was able to provide such technical assistance thanks to the regional component of COMPAL II. The Bill on Defence of Competition received the active support of UNCTAD since the outset. The Bill was approved in August 2011. This proposed law is ever more solid since it underwent a process of consultations for over two years, which gained the consensus of all relevant actors (especially MIC, FEPRINCO and AAM). It is crucial for the success of any competition law to gather the support and appropriation of its addressees, that is, the private sector. Since this goal has been accomplished, the law is to be adopted anytime soon. In September 2011, members of the CTG met Minister Santiago Rivas to follow-‐up on the legislative process and to formalize technical cooperation with UNCTAD through the signature of the Paraguay-UNCTAD MOU. This way, the COMPAL Programme will be able to share its experience on competition promotion in Latin America with Paraguay, beginning a new stage in technical assistance and institutional strengthening.

June 2011: Bilateral consultations between UNCTAD, Brazil, Spain (TVDC) and the Private Sector.

Junio de 2011: Consultas bilaterales entre la UNCTAD, Brasil, España (TVDC) y el Sector Privado para la finalización del proyecto de ley de competencia.

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Uruguay

• Authorities: Mr. Javier Gomensoro, President of the

Commission for the Defence and Promotion of Competition

• Nacional Coordinator: Mr. Javier Gomensoro. • Membership: Since 2011, following the conclusion of

the MOU in the II Annual Conference in Bogota, July 2011.

• Results: 1. Conclusion of the Uruguay-‐UNCTAD MOU. 2. Sectoral Study on Professional Services.

• Perspectives: Institutional strengthening and technical cooperation activities to be carried out.

Main achievement and results in 2011-2012 Uruguay formalized its accession to COMPAL in the II Annual Conference in Bogotá (2011) through the signature of the Uruguay-UNCTAD MOU. This instrument contains Uruguay's commitment towards strengthening the Commission for the Defence and Promotion of Competition. The Sectoral Report on Professional Services contained a call to phase out all tariffs/fares applied by Professional Associations (lawyers, accountants, etc.), since they aim at: "restricting, distorting or impeding competition". According to an UNCTAD report on the issue, and a concordant report of the Competition Commission, Uruguayan professional associations "maintain tariffs forcing affiliates (and even non-‐affiliates) to set their honoraries according to the criteria set by them". The existence of fixed tariffs in the market of professional services "is in accordance with conceptions that were valid and legitimate for a long time between Uruguayan professionals and their clients." The Commission has succeeded in making professional associations accept the report's recommendations. The activities of technical cooperation in Uruguay will be integrated into the 'ONE UN' system, carried out by UNDP. Mr. Guillermo Valles, Director of the DITC division of UNCTAD plans to visit Paraguay shortly in order to flesh out the content of Uruguay's cooperation with UNCTAD.

Javier Gomensoro and Luciana Macedo with Pierre Horna of UNCTAD.

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The Regional Component of COMPAL II

The third part of each NAR submitted by beneficiary countries gives a specific assessment of the "regional dimension" of national activities carried out in each of the national projects. This way, UNCTAD and national coordinators have had the opportunity to meet several times during the implementation period since the I Annual Conference in San Salvador, 2010, followed by II Annual Conference in Bogota 2011, and this year's Annual Conference in Lima, 2012. Further contacts and synergies have intensified with every regional activity. Below are the primary objectives, scope, justification and details of the activities of this important component of COMPAL II. (1) Objectives: The regional component has a fundamental objective to disseminate the activities of COMPAL by increasing its impact and multiplier effect on the different countries of Latin America and the Caribbean. (2) Scope and modalities of the implementation: The regional component has different ways of implementation. Firstly, there are simple exchanges of experiences between COMPAL countries to ensure synergies and avoid duplication of efforts. Second is the spread of COMPAL activities in countries without direct national projects, as in the case of Paraguay and Uruguay. Thirdly, there are those countries that have their own resources from the beneficiary institution and who wish to join COMPAL. This is the case of Ecuador and will soon be the case of Guatemala, Honduras and Panama. Finally there is a fourth embodiment where donor countries finance all or part of the national component as in the case of the Dominican Republic with funds from the Kingdom of Spain. (3) Rationale: There is a growing need for regional South-‐South cooperation between a number of international players involved in commercial integration processes. This is the case of the countries in Latin America. Natural networks of Competition and Consumer protection agencies exist in the region and do contribute to the essential purposes of COMPAL II. Therefore UNCTAD has given priority to sub-‐regional groupings such as the Andean Community of Nations, MERCOSUR and the Working Group on Competition (Central America) and CONCADECO. In addition, UNCTAD approached other networks such as FOPREL’s and the Central American Court of Justice.

The regional component of COMPAL II is probably the most important aspect of cooperation since it has allowed other Latin American countries to benefit from COMPAL products and experiences as a whole since its inception in 2004.

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Dissemination and multiplier effect of COMPAL II activities

The two-‐tiered approach of COMPAL (at the national and regional level) provides a unique opportunity to share knowledge through the exchange of experiences. This way, successful activities of one member are presented to the rest should they be interested in replicating or adapting those experiences to their national contexts. Naturally, the Annual Conference is the ideal forum for this exercise. Throughout 2011 and 2012 there has been various exchanges of experiences. Some examples are: (i) the proposal of Peru to share its intellectual property rights over COMPAL Products with the Dominican Republic; (ii) the synergy between El Salvador and Peru to share experiences and case law over the port sector; (iii) the synergy between Costa Rica and Ecuador over intellectual property issues. Through this exercise, the activity on the regulatory development of Costa Rica on the Law of Patents could inspire a similar activity in Ecuador; and (iv) the parallel activity in Colombia and Peru on building an institutional memory system.

When experiences are shared another phenomena might arise: that the implementation of national activities unveils the regional dimension of a concrete issue. This was the case of the reports on the iron sector in El Salvador and on basic grains in Nicaragua. Regional cooperation has also grown through internships programmes among Latin American agencies. This year civil servants from Colombia's SIC have benefited from an internship programme in ACODECO. Finally, two key dissemination activities have been carried out in international fora: (i) ICN International Conference (Rio, 2012): The

COMPAL Programme organized, with the support of the host country's agency (CADE), a special event on how the COMPAL Programme can support agency effectiveness in Latin America. Additionally, a special session was organized on "Competition Policy in Latin America" where the COMPAL Programme was celebrated due to its regional contributions.

(ii) Event in UNCTAD XIII Conference (Doha, 2012) Mr.

Supachai Panitchpakdi, UNCTAD's Secretary General, Mr. José Rivera, Permanent Secretary of SELA, Mr. Hans-‐Peter Egler, Chief of the Trade Promotion Division of SECO, and Mr. Herbet Tassano, President of INDECOPI, presented the COMPAL Programme, its activities and its impact before Ministers of many countries. This event aimed at enlarging the visibility of the Programme in order to replicate it in other regions of the world. INDECOPI produced a video clip of COMPAL and presented it before the international community.

Doha, Qatar: COMPAL event in UNCTAD XIII.

Video clip of COMPAL II presented in Doha, Qatar

Dr. Rafael Corazza in the ICN Conference in Rio, in an

interview about COMPAL

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Specific activities within the regional component

The regional component of COMPAL II aims at ensuring the sustainability and the multiplier effect of its national activities. It also aims at providing an adequate approach to cross-‐border issues that overwhelm national jurisdictions. In this sense, COMPAL has studied the relationship between trade and competition, common methodologies of economic analysis of anticompetitive practices, as well as their cross-‐border implications, among other activities. In order to favour synergies and avoid duplicities, the COMPAL Programme has engaged in a long-‐term cooperation with other existing regional platforms (Andinean Community, CONCADECO, Central American Competition Group, MERCOSUR, SELA, SICA and SIECA) as well as with other institutions such as FOPREL or the Central American Court of Justice Below are some of the most outstanding activities carried out under the regional component:

Sub-component 1 (S1): Develop common methodologies in analytical techniques for market investigations The successful experience of 2010 and 2011 in producing common methodologies in analytical techniques for market investigations in Colombia and Peru has been replicated in Central America. The main idea underlying the project is to determine common denominators. At a later stage, this would allow the harmonization of investigation techniques for horizontal practices and their effects in cases of abuses of dominant position. UNCTAD, with the support of an international consultant, carried out this project in Colombia and Peru during 2010 and 2011. In November 2011 the same consultant adapted his report to the Central American context (in particular for: Costa Rica, the Dominican Republic, El Salvador, Honduras, and Nicaragua). This report was followed by a validation workshop in San Salvador gathering all Central American agencies and also delegates from Colombia and Peru. All reports were translated into English and the final outcome was presented in the ICN International Conference in Rio de Janeiro in April 2012.

San Salvador, November 2011: Validation Workshop for UNCTAD's reports.

San Salvador, November 2011 : Validation Workshop for UNCTAD's reports.

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Sub-component 2 (S2): Preparation of regional studies on the challenges that competition agencies face from openly competitive sectors affected by anticompetitive practices, and (S.3): To promote cooperation between competition agencies and related institutions.

Another project in which COMPAL has taken part consists in producing a Regional report for Central America on the possible existence of cross-border anticompetitive practices, which has sparked the interest of competition agencies to strengthen intra-‐agency cooperation. The report: "Identification of sectors in Central America where there is evidence of cross-border anticompetitive practices" complements the work of the Central American Group on Competition. The main goal is to identify sectors/industries/markets where cross-‐border anticompetitive practices might be taking place. Additionally, it will identify the indicators of supply and demand in each of those sectors/industries/markets. The report will also include some public policy recommendations as to the need of enacting regulations for each of the sectors/industries/markets posing threats to competition in order to enhance competition and improve the business environment. The report should also propose ways to strengthen capacities of Central American agencies (COPROCOM, PROCOMPETENCIA, SC, CDPC, and the Ministry of the Economy in Guatemala, so procedural methodologies for this issue are common to all of them.

The project is particularly relevant due to the increasing number of Central American companies with a regional scope that conduct strategic business alliances among themselves, and the economic integration

process among Central American countries (actually, article 21 of the Framework Convention for the Establishment of a Customs Union, foresees the adoption of regional Competition rules). This activity is divided into two phases. Phase I began in 2011 by preparing a national inventory of all sectoral studies conducted by the competition agencies, national authorities, and other international organizations. UNCTAD submitted a questionnaire to the UNCTAD-‐SELA Working Group on Trade and Competition for it to circulate it among its members. This phase also built a methodology for the subsequent report. The second phase has produced a draft report, which was presented in a regional meeting in Costa Rica (March 2011).

Costa Rica, October 2010: Dissemination event of the work of

UNCTAD in the IV Central American Competition Annual Forum

UNCTAD reference document containing recommendations for

Central American

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Sub-component 4 (S4): Dissemination and implementation of Section F of the UN Set on Competition: In 1980, the United Nations Conference on Restrictive Business Practices approved the Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices (United Nations Set). The UN Set is a multilateral agreement on competition policy that basically provides a set of equitable rules for the control of anti-‐competitive practices; recognizes the development dimension of competition law and policy; and, provides a framework for international operation and exchange of best practices. This framework also provides vital technical assistance and capacity-‐building for interested member States so that they are better equipped to use competition law and policy for development. Each year, an Intergovernmental Group of Experts (IGE) on Competition Law and Policy meets to monitor the application and implementation of the UN set. In paragraphs 75 and 103 of the Accra Accord (outcome of UNCTAD's General Conference of 2008), member States have agreed on the following: "75. States are encouraged to implement the voluntary consultation mechanism provided for in section F of the Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices, with a view to finding mutually acceptable solutions.6" (...) "103. UNCTAD should further promote and support cooperation, including by facilitating voluntary consultations among member States and regional groupings, in line with section F of the Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices, adopted by the General Assembly in 1980 and reaffirmed in the São Paulo Consensus and at the Fifth Conference to Review All Aspects of the Set, held in 2005." In this connection, the paper "Modalities for Facilitating Voluntary Consultations among Member States and Regional Groupings in line with Section F of the UN Set" was prepared by the COMPAL Team in Geneva. This paper aimed at operationalizing the goals of Section F while providing a sound and general context for its implementation. The paper also proposed a series of guidelines for inter-‐agency cooperation on consultations and fact-‐finding. The Modalities paper was presented to the SELA-‐UNCTAD Working Group on Trade and Competition and FOPREL, thus gathering the necessary regional consensus for this initiative. The results will be presented in the upcoming IGE meeting in Geneva in July 2012.

Subcomponent 5 (S5): Analysis of the interaction between Trade and Competition, and their contribution to development:

Two Regional Seminars on Trade and Competition were held in April 2009 in Caracas, Venezuela, and in May 2010 in Brasilia, Brazil, organized jointly by SELA Permanent Secretariat and UNCTAD, and CADE-‐Brazil in the case of the Second, with the financial support of the Spanish Government. Ministers and senior officials of institutions responsible for Competition and Trade policies participated, as well as UNCTAD’s

6 Section F of the UN Set: International measures: […] (4): Consultations: (a) Where a State, particularly of a developing country, believes that a consultation with another State or States is appropriate in regard to an issue concerning control of restrictive business practices, it may request a consultation with those States with a view to finding a mutually acceptable solution. When a consultation is to be held, the States involved may request the Secretary-General of UNCTAD to provide mutually agreed conference facilities for such a consultation; (b) States should accord full consideration to requests for consultations and upon agreement as to the subject of and the procedures for such a consultation the consultation should take place at an appropriate time; (c) If the States involved so agree, a joint report on the consultations and their results should be prepared by the States involved and be made available to agree, Secretary-General of UNCTAD for inclusion in the annual report on restrictive business practices.

Section F of the UN Set: November 2010.

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Secretary-‐General Mr. Supachai Panitchpakdi. Both Seminars concluded with a series of recommendations aiming at enhancing cooperation between the Competition and Trade areas, and among all SELA country members. In particular, a proposal was made at the end of the Second Regional Seminar to establish a Working Group on Trade and Competition (WGTC) within SELA, which would count with the substantive support of UNCTAD.

On the 19 October 2010, SELA’s Council endorsed the proposal and created the WGTC. The mandate of the WGTC is to establish contact and dialogue between trade and competition officials of SELA countries (among which, COMPAL countries); to agree on collective actions needed to fight cross-‐border anti-‐competitive business practices; to promote studies at regional level on issues of interest to trade and competition authorities; and to share information and experiences as regards these two policy areas.

The First Annual Meeting of SELA’s WGTC was held in Bogotá, Colombia, on 4 -‐ 5 July 2012. The main objective of the meeting was to shape to the WGTC as a regional forum for cooperation between authorities, and to increase coherence of trade and competition policies within the Latin America and the Caribbean regions. It also aimed at analyzing priorities and discussing regional prospects regarding the topics to be discussed during the 11th UNCTAD Intergovernmental Group of Experts in Competition, which took place in Geneva in July 2011. Other issues addressed were: (i) Comparative analysis of national and subregional rules on competition; (ii) Comparative review of the efficiency of competition agencies in Latin America and the Caribbean; (iii) Role of government policies and their links with competition policies. Such policies include, for instance, subsidy programmes, monopolies, anti-‐dumping, concessions, etc.; and (iv) Needs and possibilities for technical assistance and cooperation, at the bilateral, subregional and multilateral levels.

WGTC members agreed on the designation of Brazil as President and of Costa Rica and the Dominican Republic as Vice-‐presidents of the WGTC for the period 2011-‐2014. UNCTAD would act as a Technical Secretariat whereas SELA Permanent Secretariat would act as Executive Secretariat. S

In order to engage member countries into the substantive work of the WGTC, four Sub-‐working groups were established, which would be led by different member countries, on the following issues:

1. Enforcement of trade and competition rules, capacity building and advocacy (México)

2. Legal instruments involving competition and bilateral, regional and multilateral trade (Chile)

3. Consultations on competition and trade policies (Jamaica)

4. Research and sector studies (Panamá)

During that year, by means of email and Skype, it was decided that Subgroups 1 and 3 would be encouraged to participate more actively during the period 2012-‐2013, as it was thought that the simultaneous work of the four subgroups would put too much of a burden on member countries. Thus, Subgroups 2 and 4 have been working on two questionnaires that were agreed upon and circulated to all SELA competition and trade authorities. The questionnaires deal with: Coherence between Trade and Competition Policies; and Competition and Trade issues in the Health Sector. The Subgroups’ leaders will present a report on the findings during the Second Annual Meeting of SELA‘s WGTC to be held in Lima, Peru, on the 18th and 19th of June 2012 (back-‐to-‐back with the Third COMPAL Annual Conference on the 20th, 21st and 22nd of June 2012).

CREATON OF THE WORKING GROUP ON TRADE AND

COMPETITION

The creation of the Working Group on Trade and Competition in Latin America and the Caribbean is supported by Decision 519 of 19 October 2010 of SELA’s Council

OBJECTIVES

To promote cooperation, consultations and coordination in relation to the work on trade and competition in Latin America and the Caribbean countries. To agree on collective actions in order to fight against cross-‐border business practices that affect competition Share information and experiences To promote studies at regional level on the linkages between trade and competition policies in Latin American and Caribbean countries.

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Subcomponent 7 (S7): To promote cooperation between the authorities responsible for Consumer Protection (i.e. cross-border system to prosecute cases of consumer protection). A recent example of cooperation between consumer protection authorities in COMPAL member countries is their engagement in the drafting of the United Nations Model Law on Consumer Protection. This project originates in the IGE's initiative to draft a model law for consumer protection following the successful Model Law on Competition. Through this multilateral initiative, the COMPAL Programme intends to compile and systematize all Latin American proposals to UNCTAD’s Project. Three members of the AGE (Mr. Ricardo Maguiña, Mr. José Roa and Mr. Gustabo Valbuena) are leading this task force and receiving the technical support of the CTG. Mr. Maguiña proposed a methodology for the project. Alter several meetings between the AGE, national authorities and the CTG; the object of discussion was narrowed down to "Mechanisms for the exercise of consumer rights". These include administrative, judicial and social mechanisms that consumers have at hand to protect their rights. They also include the legal instruments with which States can enforce consumer laws. National contributions will be debated in the III Annual Conference in Lima, July 2012. Mechanisms for the exercise of consumer rights

1-‐ Administrative Mechanisms for Consumer Conflict Resolution 1.a Penalty Systems 1.b Correction Measures for Consumers 1.c Complementary Measures against Offending Suppliers 2-‐ Judicial Mechanisms for Consumer Conflict Resolution 2.a Compensation Actions before the Judiciary 2.b Collective Actions 3-‐ Alternative Conflict Resolution Mechanisms 3.a Consumer Arbitration 4-‐ Promotion and Legal, Institutional and Economic Strengthening of Consumer Associations

5-‐ Other Mechanisms The activity is quite ambitious but it counts with the support of all Latin American consumer protection agencies, so its development into other issues of interest is foreseen.

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Section III

Lessons Learned One way to classify the lessons learned from COMPAL is to take into account the purpose and the expected impact of the Programme, as contained in the logical framework agreed at the outset of COMPAL II. As a result they could be structured as follows:

Excellence and impact of the products/results of COMPAL The constant search for international best practices A fundamental lesson has been the deployment of efforts towards activities in the Programme that have a foothold in international best practices on competition and consumer protection. This is achieved in different ways, such as the adaptation of Best Practice Manual created by UNCTAD in investigative techniques, extended this year to Central America. The commitment of the competition and consumer authorities to issue decisions of substance and quality Within the COMPAL Programme, Colombia has reconstructed and integrated the legal and institutional memory related to standards, doctrines and jurisprudence on competition law in previous phases, digitizing all the information (a million records and documents) and developing more than 100 chips for the Delegate of the Colombian competition authority. Thus, the COMPAL project directly impacts the commitment of the competition authorities and consumer (SIC in Colombia), as it is able to make decisions of substance and quality. Similar impact occurs with the activity of INDECOPI in Peru. The success of both cases has sparked the interest of Procompetencia in Nicaragua The need to collect and disseminate information in each of the cases investigated The recently disseminated Administrative Procedural Manual for COPROCOM in Costa highlights the need to collect evidence when enforcing competition laws. It became clear that a law simplifying administrative procedures is not enough; specific rules for competition authorities are needed in order to allow for evidence and economic data collection, thus ensuring an efficient analysis for each case. Additionally, it is important for stakeholders (public and private sector) to know and value competition and consumer protection agencies. In this sense, Colombia and Nicaragua have already carried out media strategies. On public policies: reducing barriers for promoting business Taking into account the mandate of INDECOPI on the issue of reducing bureaucratic barriers in Peru, COMPAL prepared a study measuring the impact of the bureaucratic barriers in the Peruvian market. The consistency of competition policy with investment promotion, industrial policy, and other public policies The Competition Policy Framework prepared for Bolivia by UNCTAD, with the help of Bolivian national consultants, was a fundamental tool for Bolivian consumers to understand the relationship between the different models of economy described in the 2009 Constitution. This paper showed the importance of a coherent public policy, dealing with competition, investment and industrial policies conjunctively.

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Institutional Aspects of the Programme: Flexibility COMPAL

Relevance and timeliness of the programme The COMPAL programme coincides with a period of true dynamism in the promotion of competition and protection of consumers in the region. Indeed, COMPAL has run parallel to the life of agencies in the region. The COMPAL Programme is willing to continue cooperating with national authorities in developing their technical and institutional capacities. National regional and international dimensions of the Programme The Programme is a model for technical cooperation in Latin America and elsewhere. The transition between national activities (COMPAL I) and regional ones (COMPAL II) has been rather natural. The challenges in competition and consumer protection overwhelm national jurisdictions and require a regional approach in order to effectively enforce the law and perhaps even achieve a solid economic integration. The unanimous opinion of COMPAL members is that the regional component is a success. Actually, it thanks to this component that COMPAL can take the lead in multilateral fora such as the IGE of UNCTAD. Strengthening the consultation process Since the beginning, a constant exchange of information has been developed between donors, National Coordinators, consultants, government institutions and other stakeholders. Comparative advantage of COMPAL consultants and responsible national authorities Thanks to the close link between UNCTAD and National Coordinators, consultants and implementing institutions have the experience required to carry out the activities. The fact that COMPAL prefers local consultants increases efficiency, since their 'in the field' grasp is much greater than that of international

consultants. Contribution of the National Coordinators in the substantive monitoring of the programme The COMPAL Programme is founded in the professionalism of its members and the confidence built among them, which reduces transactional costs in all activities. The support of national authorities guarantees the success of implementation and appropriation of the programme. Doubtlessly, national coordinators are the alma matter of COMPAL. Commitment of the Programme with the strategy of poverty reduction COMPAL is a Programme that promotes the living standards of low-‐income populations and defends their access to basic goods, thus contributing to the efforts to achieve poverty alleviation, gender balance and other issues related to the fulfilment of the Millennium Development Goals of the UN. Human and institutional capacity building The contribution in terms of job opportunities and institutional strengthening at the level of beneficiary countries is significant. The internship programme provided by the Swiss competition agency – COMCO/WEKO -‐ and other competition agencies in Latin American with seminars and workshops on issues of competition and consumer protection, which resulted in training activities.

Additionally, several seminars have been organized on competition and consumer protection that result in the building of capacities.

Sustainability While efforts have been made to implement Programme activities sustainably, it is also true that there is still room for improvement at a later stage of COMPAL. Although COMPAL II will initially run for four years,

Managua, Nicaragua: UNCTAD pays a visit to the recently launched Procompetencia agency in September 2009.

National Coordinator's participation in the I Annual Conference of COMPAL II

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a clear goal is to maximize the benefits of all progress made so that institutions will receive sustainable results in the long term.

UNCTAD's contribution In regard to the contribution of UNCTAD’s COMPAL Programme, there are two main contributions (i) the overall supervision of the Programme, including aspects of both analytical and administrative management, and (ii) the participation of UNCTAD staff in support of national, regional and international activities to support the programme, through to the transmission of knowledge in seminars and workshops.

Monitoring reports, management and evaluation The CTG prepares a series of annual reports to assess the implementation of activities at local level. The CTG prepares the Global Annual Report (GAR) using the National Annual Reports (NARs) submitted by National Coordinators. It also prepares documentation requested by donors to assess the Programme when required.

Contribution to South - South cooperation generated and integration schemes By implementing the activities, the Programme produces a good occasion for the negotiation of bilateral trade treaties and/or regional cooperation efforts of member countries. Similarly, through its regional component, the Programme contributes to the South-‐South cooperation strategy promoted by UNCTAD. In the present administration, Brazil has shown great commitment to COMPAL through countless activities in which CADE was involved, including the implementation of national projects in Bolivia and Paraguay, among others.

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Section IV: Challenges in the implementation and way forward

In final phase of COMPAL II, we can already appreciate concrete results of the activities and projects agreed at the beginning of the Programme as the natural continuation of the results harvested in COMPAL I. Like in any technical assistance programme, important challenges are before us, especially on how to continue to build synergies with new members of the Programme and design regional initiatives with established networks. In this regard, some suggestions are listed below, which should be reinforced during the fourth year of COMPAL II by each of its key players: • For UNCTAD To continue strengthening the technical input in relation to the design of activities and to seek excellence for COMPAL products in line with international standards. In this regard, UNCTAD will continue to provide guidance in the development of content, for example, the design of legislation, manuals, training Programmes, as well as networking at regional and sub-‐regional levels. Synergies will always be promoted and duplication of efforts be avoided by COMPAL and other donors, such as the United States, the European Union and IADB. A very relevant initiative for this purpose is the AGE of COMPAL II. Its 12 members from the Iberoamerican region have already received positive feedback from beneficiary countries. In this last year of COMPAL II, strengthening the AGE will be a priority. The strategies for capacity building have developed. UNCTAD has recently established ad hoc Substantive Working Groups as a pilot project for Nicaragua. This initiative tries to ensure high quality training to guarantee greater impact of national agencies’ work. Actually, the expected impact of activities has become the most relevant criteria to decide upon coming activities, and will continue to be so. Another priority for the CTG and the AGE is to increase resources to strengthen the Regional component of COMPAL II. Its importance is reflected in the Colombian suggestion of using this regional platform to tackle challenges with a regional dimension. UNCTAD wishes to develop this component further in an eventual COMPAL III.

• For National Coordinators: The National Coordinator is the key player of COMPAL II. Strengthening institutions is necessary to ensure the expected impact of COMPAL activities. Indeed, most national coordinators have been trained in

.

Aril de 2012: Meeting between SECO, Colombia and Peru in UNCTAD XIII, Doha, Qatar. From left to right: Pierre Horna, Hassan Qaqaya, Hebert Tassano, Hans-Peter Egler and the Colombian permanent representative in Geneva.

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substantive issues, although in some agencies there is still a dissociation between national coordinators and the handling of substantive work. Ideally this would take place if the competition and consumer protection agencies had enough staff so they can follow the implementation of COMPAL in addition to its own National Coordinator. Nevertheless, in view of scarce resources, agencies hold COMPAL accountable to accomplish this task, and UNCTAD constantly seeks new partners and strategic allies to support this work. To this end, the research platform launched by UNCTAD (Research Partnership Platform -‐ RPP)16 may be of much importance to complement the work of National Coordinators within COMPAL. To continue strengthening coordination between the CTG and the NPCs This has been crucial towards ensuring that activities are executed successfully and in line with the Annual Operational Plans (AOPs) of each country project. Increased competition advocacy in decision-‐making bodies of the state In some national projects there has been some limitations to cover all the expectations of the beneficiaries, particularly when they relate to key issues such as staff support on basic competition agency work. UNCTAD has supported and continues to support this need, but it must be established and coordinated as a joint strategy in order to seek additional funds for those agencies that have been recently established. One of the main strategies is to create national awareness within the powers of the State (i.e. National Parliament on the agency's regular budget) in order to justify the existence of such an agency for the welfare of society. The need to include a long-‐term strategy on human resources This should allow preparing competition agencies’ staff through internship programmes organized by COMCO. UNCTAD is in contact with other authorities (Spain) to offer such cooperation.

• For other strategic partners: Another strategic partner that UNCTAD tries to liaise with National Coordinators is the University of Applied Sciences Zurich (ZHAW -‐ Switzerland) and the University of St. Gallen. Negotiations have been progressing to form a strategic alliance between COMPAL and ZHAW which refers to the component of academic Programmes that can be implemented in COMPAL countries. This is even more likely as a professor from ZHAW is a member of the AGE. Finally, COMCO/WEKO in Bern has been a strategic ally since the beginning of COMPAL I. COMPAL has been benefitting from the COMCO Internship Programme since 2005 and recently, COMCO has been part of the training programmes of UNCTAD, particularly with the presence of the Director of COMCO at the workshops on collusion and abuse of the dominant position held in Bogota and Lima in March and in San Salvador in November 2011. This link should be reinforced so that COMPAL can further benefit from COMOCO’s experience. • For the donor The Strategic Direction Committee (SDC) Programme was created according to COMPAL and bilateral MOUs between beneficiaries and UNCTAD. SDC consists of the COMCO, SECO and UNCTAD. The PMC has been regularly informed on developments of the SDC programme and also responded to requests for information from them. Regular communication has facilitated these activities. In this regard, UNCTAD will continue to strengthen communication channels with SECO in Bern, taking into account that sometimes there is a need to eventually improve the speed in providing feedback to the consultations at COMPAL given the urgency required to implement Programmes in the field. Additionally it will also be important to better define the role of SECO offices in the field in relation to the implementation and monitoring of national logical frameworks, including the Swiss Agency for Development and Cooperation (COSUDE) in Central America. This will further strengthen ties with National Coordinators and build synergies between the different projects of bilateral cooperation with COMPAL in Switzerland.

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• For international cooperation in general: For COMPAL to accomplish its goals of creating an impact on beneficiary countries in technical assistance, it is extremely important to create synergies with all fora, institutions, organizations, and networks of government agencies (formal or informal, national or regional). Thus, there is a challenge to avoid duplicities and to disseminate best practices through international cooperation among all actors involved in promoting competition and consumer protection in Latin America.

GLOBAL ANNUAL REPORT - Compal

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