OVERVIEW 1. What is Competition Law? 

Competition law refers to the framework of rules and regulations designed to foster the competitive environment in a national economy. It consists of measures intended to promote a more competitive environment as well as enactments designed to prevent a reduction in competition. 

What is Competition Policy? 

Competition policy broadly refers to all laws, government policies and regulations aimed at establishing competition and maintaining the same. It includes measures intended to promote, advance and ensure competitive market conditions by the removal of control, as well as to redress anti-competitive results of public and private restrictive practices. 

What are the goals of Competition Policy? · To promote economic efficiency, which comprises three (3) components: 

• Productive efficiency – firms use the least cost production techniques to produce maximum possible goods and services from given inputs. 

• Allocative efficiency – resources are channeled to those sectors where they are best utilized in order to produce goods and services that are valued most highly by consumers. 

• Dynamic efficiency – firms strive to maintain their competitiveness by investing in research and development, innovation, marketing and management to keep abreast of the changes in technology, preferences and products. · To correct market failure · To enhance consumer welfare · To achieve higher economic growth · To promote competitiveness in both domestic and foreign market 

What are the basic market structures in which the degree of competition affects prices, output and profits? 

• Perfect Competition - an ideal or extreme form of competition. It occurs when a market consists of many firms selling an identical product to many buyers. Any firm that wishes to do so can enter or leave the market. · 

• Monopoly - a market with a sole supplier of a good, service or resource for which there is no close substitute. In addition, there are barriers to entry of new firms. · 

• Natural Monopoly - arises from natural barriers to entry (such as a unique source of supply) or situation in which one firm can supply the entire market at a lower price than two or more firms could offer. 

• Monopolistic Competition - similar to perfect competition, but rather than firms producing identical products, these are many firms competing against each other by producing similar but slightly different products. · 

• Oligopoly - is characterized by a small number of firms where quantity sold by any one firm is influenced by its choice in respect of strategic variables (such as prices, product design, research and development, advertising, and sales locations) and these choices are strongly influenced by other firms in the industry. 

What is market failure? 

Market failure occurs when the market is unable to achieve an efficient and equitable allocation of resources. 

What are the sources of market failure? · 

• Public Goods – which if provided to one consumer, is freely available to all consumers. · 

• Income Distribution – the market will not necessarily ensure equitable distribution of incomes. This may motivate government to introduce policies to redistribute wealth through measures, i.e., income taxes and social security benefits. · 

• Monopoly – the operations of monopoly or natural monopoly often result in misuse of market power and inefficient allocation of resources, which reduce community welfare. For this reason, governments generally regulate monopoly and enforce laws preventing cartels. This type of market scenario is a major rationale for a comprehensive competition policy. · 

• Externalities – arise when an activity confers a benefit (like the benefit of education or immunization) or imposes a cost (pollution) on a third party, without the cost or benefit being included in the market price of that activity. · 

• Information Asymmetries – in theory, buyers and sellers in a competitive market have complete knowledge about a product or service characteristics and quality. Information asymmetries between producers and consumers can lead to market failure and reduce community welfare. 

What are the competitive conduct rules? 

• Competitive Conduct – describes the decision-making processes of firms in a competitive market, where price, quantity and profit choices are dictated by overall market conditions and these are not unduly influenced by the actions of one or more large firms. In essence, competitive conduct describes firm behavior under conditions of perfect competition. 

• Competitive Conduct Rules – are government’s response to the absence of perfect competition in a market. Their primary objective should be to protect or enhance the competitive process in markets where it is only partially operating. · Competitive conduct rules codify acceptable behavior in an economy. Typically, such rules prohibit arrangements that can be construed as anti-competitive, in that they either: 

• Increase the power of firms within a market to the extent that this inhibits competitive conduct; or 

• Prohibit existing competitors or potential market entrants from effectively competing. 

• Competitive Process – competitive conduct that reduces costs and prices, which is driven by impersonal and diffuse market forces and the threat of entry of additional suppliers. It results in efficient resource allocation and pricing, which can be attained in open, dynamic markets resembling perfect competition. 

What are anti-competitive agreements? 

The Hilmer Report (Hilmer 1993) identifies several market outcomes or agreements which can be viewed as anti-competitive. These are: · 

• Horizontal Agreements – exist between firms (suppliers or consumers) at the same level of production chain. This is often referred to as collusion. Collusion usually takes the form of an agreement on price, such a combination of firms provides them with a degree of pricing power, or in other words, the ability to at least influence the price of a good. · 

• Vertical Agreements – may vary where firms at different stages of the production chain collude. In most cases, vertical collusion occurs between suppliers and users of business inputs. This may relate to price or other matters (i.e. quotas, exclusive dealings, etc.). · 

• Misuse of Market Power – a type of anti-competitive conduct which occurs when a single firm in a dominant position in a market misuses its market power. Ex: predatory pricing · Mergers and acquisitions - can constitute inappropriate market behavior where they lead to market outcomes of the type described above. It is unlikely that a move towards increasing market concentration will normally be viewed as favorably affecting competition. Potential solutions to anti-competitive conduct include: · Per se Prohibition – the most direct form of anti-competitive measure that an authority can undertake. It refers to those activities which are ambiguously detrimental to regular competitive behavior in a market (e.g., price fixing). · Rule of Reason (Competition Test) – a wide variety of business practices that while inhibiting competition, may not require total prohibition. The most widely used determinant in such a case is whether or not such activity reduces competition in the market. · Authorization – a mechanism through which the public benefit from ostensibly anti-competitive conduct can be assessed as a counter balancing consideration. The process involved here is a direct intervention or inquiry by a governing commission. Authorization implies that the commission can “authorize” certain conduct where there is a perceived net benefit to the community from anticompetitive conduct. 

• Notification – involves the approval of certain types of anti-competitive conduct upon the offender being granted immunity, conditional on the consent of the market regulator. This type of arrangement relies on absolute openness and transparency. Examples of anti-competitive conduct are:

• Price-fixing agreement – competitors agree to fix prices at a particular level, use of less obvious devices such as “recommended prices”, in reality, fix prices by agreement. 

• Market sharing agreement – agreement among competitors to share a market. Ex: a number of producers may choose to restrict their sales to certain geographic areas, thus developing local monopolies. · 

• Exclusionary provision – agreement between competitors to limit dealings with a particular supplier or customer or a particular class of customer. Ex: primary boycotts, secondary boycotts. These actions are taken to prevent new firms from entering the market, or to force existing firms out of the market. Primary boycotts or exclusionary provisions occur when a group of people or firms agree not to deal with a particular supplier or customer. This is subject to per se prohibition. Secondary boycotts occur when a group of people who may not otherwise deal with the target organization persuade another uninvolved (supplier) not to deal with the target organization. 

• Tie-in arrangements and third line forcing – when the supply of goods or services to a person is made provisional upon them, also purchasing additional goods and services, either from the same supplier (tie in arrangement) or from another specified supplier (third line forcing)  

• Retail price maintenance – refers to action by suppliers, manufacturers or wholesalers specifying a minimum price below which goods or services may not be resold or advertised for resale. In addition, the following are identified conducts that might restrict the freedom of action of the parties or if it has objects or effect the prevention, distortion or restriction of competition1 : 

• Bid-rigging - includes cover bidding to assist an undertaking in winning the tender. An essential feature of the tender system is that tenderers prepare and submit bids independently. 

• Limiting or controlling production or investment – involves agreements which limit output or control production, by fixing production levels or setting quotas, or agreements which deal with structural overcapacity or coordinate future investment plans. 

1 ASEAN Regional Guidelines on Competition Policy Date of Last Revision: January 2016 

Abuse of a dominant position - occurs where the dominant enterprise, either individually or together with other undertakings, exploits its dominant position in the relevant market or excludes competitors and harms the competition process. It is prudent to consider the actual or potential impact of the conduct on competition, instead of treating certain conducts by dominant enterprises as automatically abusive. 

• Exploitative behaviour towards consumers, customers and/or competitors (e.g., excessive or unfair purchase or sales prices or other unfair trading conditions, tying). 

• Exclusionary behaviour toward competitors (e.g., predatory pricing by an undertaking which deliberately incurs losses in the short run by setting prices so low that it forces one or more undertakings out of the market, so as to be able to charge higher prices in the longer run; margin squeeze).

• Discriminatory behaviour (e.g., applying dissimilar pricing or conditions to equivalent transactions and vice-versa). 

• Limiting production, markets or technical development to the prejudice of consumers (e.g., restricting output or illegitimate refusal to supply, restricting access to/use of/ development of a new technology). 

What are regulatory restrictions? 

Regulatory restrictions are government’s own restrictions on competitive conduct, either through legislated regulation or direct ownership. These restrictions can detract from overall competitiveness in the economy, in much the same way as market failure, in the sense that they detract from the regular workings of the market. Regulatory restrictions may entrench a smaller number of players in a less competitive environment. Consequences of these are higher prices, poorer quality goods and a group of firms that have a diminished response to their market. Regulatory restrictions in the Philippines include: · Regulatory barriers to market entry, including licensing and franchising agreements; · Government monopolies, including monopolies on public utilities such as electricity generation and supply, telephone services and the shipping industry; · Rural marketing, especially restrictive marketing boards; and · Other restrictions on competitive conduct. 10. What forms of regulation impact on competition? 

There are two (2) forms of regulation that impact on competition directly: · Barriers to entry are burdens or limitations forcing any firm not presently operating in a market. 

• Economies of scale due to market share achieved by the incumbents; 

• Capital requirements (including investment in brand development through advertising and the like); 

• Cost savings accruing to existing firms from their experience and familiarity with the particular industry; 

• Monopoly access to key infrastructure; and ü Monopoly of key industry knowledge. · Regulations that restrict competitive behavior: 

• Price control; and ü Advertising restrictions The negative impact of above-mentioned regulations is: higher prices; lower quality goods; and less consumer choice as a result of reduced competition. In the case of monopolies, competition in the market is prevented. 

What is an essential facility? 

Within the framework of competition policy, an essential facility is a major infrastructure which exhibits two characteristics: · The facility is essential to the effective operation of an economic organization; and · The facility exhibits natural monopoly characteristics. Ex: electricity grids, rail infrastructure, roads, port facilities, pipelines and telecom network. 

What is a natural monopoly? 

The distinguishing feature of a natural monopoly is that a single facility can supply the entire market demand more efficiently than two or more smaller facilities. Typically, natural monopolies have the following features: 

• large development and start-up costs; and 

• economies of scale, i.e., as output is increased, the average cost per unit output declines. Natural monopoly is an outcome of the size of the market and the type of technology available to meet demand. It is not a market structure, rather a cost-minimizing method of production. There are two major implications: · An industry may consist of more than one firm even though the existing technology would suggest that monopoly is more economically efficient. · The existence of natural monopoly conditions in an industry may vary as demand varies and as the prevailing technology changes. 

What are the main areas/concerns which competition policy and law should address? · 

preventing enterprises from entering into agreements which do not have any beneficial features and which will restrict competition, either amongst themselves or between them and third parties; · controlling attempts by monopolists or dominant firms from abusing their market position and preventing new firms from entering the market; · ensuring that workable competition is maintained in oligopolistic industries; and · Monitoring mergers between independent enterprises, where the effect of the merger may result in market concentration and reduction in competition. B. PHILIPPINE EXPERIENCE 

Where is the Philippines now in terms of Competition Policy and Law? 

In his State of the Nation Address (SONA) in July 2010, President Benigno Simeon C. Aquino III stated: “What we intend to achieve is simple; an economy where growth is powered by private enterprise, but for the benefit of the greatest number of citizens; a nation where free enterprise is harnessed for growth, in an environment that promotes transparency, equal competition, and accountable governance.” xxxx xxxx xxxx xxxx xxxx xxxx “… it is the government’s duty to ensure that the market is fair for all. No monopolies, no cartels that kill competition. We need an ANTITRUST LAW that will give life to these principles.” On 21 July 2015, the President signed Republic Act 10667 (“Philippine Competition Act”) providing for a national competition policy prohibiting anti-competitive agreements, abuse of dominant position and anti-competitive mergers and acquisitions, and establishing the Philippine Competition Commission. 

What are the Philippines’ major competition-related laws? 

The Philippines has approximately 30 competition/antitrust-related laws, leading examples of which include the following: · 

• 1987 Constitution - Prohibits monopolization and combination in restraint of trade (on a rule of reason basis), but has no imposable sanctions for violation · 

• Revised Penal Code of the Philippines (Article 186) - Describes monopolization and combinations in restraint of trade as acts punishable and describes penalties, including imprisonment and fines of between P200,000.00 and P600,000.00; it is similar in nature to Section 2 of the US Sherman Act · 

• Republic Act 3247 – Known as the Act to Prohibit Monopolies and Combinations in Restraint of Trade, this law provides for treble damages for civil liabilities arising from anti-competitive behaviour.  

• Republic Acts 165 and 166 - These are the Patent Law and Trademark Law, respectively, and describe the appropriate civil actions which can be resorted to and penalties imposable for breaches. (Intellectual Property Office website: www.ipophil.gov.ph) · 

• Presidential Decree 49 - This is the Copyright Law and penalizes copyright infringement. (Intellectual Property Office website: www.ipophil.gov.ph) · 

• Republic Act 386 - This is the Civil Code of the Philippines and stipulates the collection of damages arising from unfair competition. · 

• Republic Act 7581 - The Price Act protects consumers by stipulating price manipulation (hoarding, profiteering and cartels) as illegal for certain commodities in cases of emergency. (Department of Trade and Industry website: www.dti.gov.ph) · 

• Republic Act 7394 - The Consumer Act of the Philippines imposes penalties for behavior such as deceptive, unfair and unconscionable sales practices in both goods and credit transactions. (Department of Trade and Industry website: www.dti.gov.ph) · 

• Philippine Corporation Code - Provides for rules and proceedings for approving mergers, consolidations and combinations for the Securities and Exchange Commission (Securities and Exchange Commission website: www.sec.gov.ph) · 

• Executive Order (EO) No. 45, series of 2011 - Designating the Department of Justice (DOJ) as the Competition Authority. (DOJ website: www.doj.gov.ph). 

What is the Office for Competition? 

The Office for Competition (OFC) is the country’s central body on competition created pursuant to EO No. 45 (Designating the Department of Justice as the Competition Authority) signed on June 9, 2011. OFC is under the Office of the Secretary of Justice. 

What are the duties and responsibilities of OFC? · 

Investigate all cases involving violations of competition laws and prosecute violators to prevent, restrain and punish monopolization, cartels and combinations in restraint of trade; · Enforce competition policies and laws to protect consumers from abusive, fraudulent, or harmful corrupt business practices; · Supervise competition in markets by ensuring that prohibitions and requirements of competition laws are adhered to, and to this end, call on other government agencies and/or entities for submission of reports and provision for assistance; · Monitor and implement measures to promote transparency and accountability in markets; · Prepare, publish and disseminate studies and reports on competition to inform and guide the industry and consumers; and Date of Last Revision: January 2016 Page 10 · Promote international cooperation and strengthen Philippine trade relations with other countries, economies, and institutions in trade agreements. 

What are the OFC Working Groups (WG)? 

OFC created and chairs the following Working Groups: · Advocacy and Partnerships ü WG Co-chair: Tariff Commission (TC) · Business and Economics ü WG Co-chair: Securities and Exchange Commission (SEC) · Enforcement and Legal ü WG Co-chair: Bureau of Internal Revenue (BIR) · Consumer Protection and Welfare ü WG Co-chair: Department of Trade and Industry (DTI) · Policy and Planning ü WG Co-chair: Philippine Institute for Development Studies (PIDS) · Administration 

When is National Competition Day? 

President Aquino issued Proclamation No. 384 (signed on 18 May 2012) declaring December 5 of every year as “National Competition Day.” C. PHILIPPINE PARTICIPATION IN INTERNATIONAL FORA The ASEAN Experts Group on Competition 

What is the ASEAN Experts Group on Competition? 

The Association of Southeast Asian Nations (ASEAN) Experts Group on Competition (AEGC) is a formal body composed of representatives of competition authorities of all ASEAN Member States (AMSs) nominated by their respective Senior Economic Officials Meeting (SEOM) Leaders. The body was established by the ASEAN Economic Ministers (AEM) in August 2007 as a regional forum to discuss and coordinate policies with the goal of promoting a healthy competitive environment in the ASEAN region. AEGC also aims to develop competition policy through exchange of information, networking and dialogue. 

What are the different competition authorities in the ASEAN? 

Country Competition Authority Website Brunei Darussalam Department of Economic Planning and DevelopmentPrime Minister’s Office www.depd.gov.bn Cambodia Ministry of Commerce www.moc.gov.kh Indonesia Commission for the Supervision of Business Competition (KPPU) http://eng.kppu.go.id Date of Last Revision: January 2016 Page 11 Country Competition Authority Website LAO People’s Democratic Republic Ministry of Industry and Commerce www.moic.gov.la/default.asp Malaysia Malaysia Competition Commission (MyCC) http://www.mycc.gov.my Myanmar Ministry of National Planning and Development Philippines Department of Justice-Office for Competition (DOJ-OFC) www.doj.gov.ph Singapore Competition Commission Singapore http://www.ccs.gov.sg Thailand Office of Trade Competition Commission www.dit.go.th Vietnam Viet Nam Competition Authority (VCA) Viet Nam Competition Council (VCC) www.vca.gov.vn 22. What are the AEGC publications? · ASEAN Regional Guidelines on Competition Policy (Regional Guidelines) ü What are the Regional Guidelines? o The Regional Guidelines serves as a non-binding general framework guide for the AMS as they endeavoured to introduce, implement and develop competition policy in accordance with the specific legal and economic context of each AMS. o It is based on country experiences and international best practices and taking into account the varying development stages of competition policy in AMS, the Regional Guidelines set out different policy and institutional options that serves as a reference guide for AMS in their efforts to create a fair competition environment. o Launched on 24 August 2010 during the 42nd ASEAN Economic Ministers (AEM) Meeting in Da Nang, Vietnam, the Regional Guidelines illustrate the objectives and benefits of competition policy and provide explanations as to the scope of competition policy, the role and institutional structure of competition regulatory bodies, and the competition enforcement framework. It also considers the issues of technical assistance, capacity building and international cooperation. o The AEGC will update the Regional Guidelines within the next five years to reflect any changes and developments in ASEAN and in international best practices. Date of Last Revision: January 2016 Page 12 ü What was the role of the Tariff Commission in the drafting, preparation, finalization and launch of the Regional Guidelines? As Philippine AEGC representative then, the Tariff Commission was the lead agency in the preparation of the Regional Guidelines. Collaborative help was also given by the Bureau of Trade Regulation and Consumer Protection of the DTI and the DOJ during the drafting, discussion and finalization of the Regional Guidelines. · Handbook on Competition Policy and Law in ASEAN for Business (Handbook) ü What is this Handbook? The Handbook is for use by regional and transnational businesses operating in the ASEAN region and is intended to reflect nationwide Competition Policy and Law (CPL) provisions and sector specific provisions related to CPL, inform the domestic and transnational business community an investors on current approaches and practices relating to CPL in AMSs, as well as raise awareness among this target group and improve compliance on CPL issues where lacking. It was launched on 24 August 2010 during the 42nd AEM Meeting in Da Nang, Vietnam. ü What does the Handbook contain? The Handbook provides a basic explanation of the basic principles of CPL and covers, in relation to each AMS, the key areas of CPL that are of relevance for businesses, such as provisions concerning: substantive issues, (restrictive agreements, abuse of dominant position, mergers and acquisitions), procedural issues (notification systems, enforcement procedures, decisions) and the organization of competition authorities. It also includes summaries of competition cases in selected AMSs. ü What was the role of the Tariff Commission in the drafting, preparation, finalization and launch of the Handbook? As Philippine AEGC representative then, the Tariff Commission was the lead agency in the preparation of the Handbook. · Regional Core Competencies (RCC) Manual ü What is this Manual? This Manual consists of international and regional best practices on competition policy and law with specific focus on the following areas: institutional building; enforcement; and advocacy. ü What was the role of the Tariff Commission in the region-wide advocacy socialization workshops? In cooperation with the ASEAN Secretariat and with funding support from InWent, the Tariff Commission organized the successful Philippine launch of the AEGC-5th Forum on “Handbook on CPL in ASEAN for Business” on 12 November 2012. The forum was well attended by key government officials, businessmen, academe, and consumer groups. Date of Last Revision: January 2016 Page 13 Competition Provisions in Free Trade Areas 

Are there competition provisions in Free Trade Areas (FTAs) that the Philippines is a party to? 

Yes, there are, namely: · Philippines-Japan Economic Partnership Agreement (PJEPA) Chapter 12 of the PJEPA is devoted to Competition Policy. There are 3 Articles included in Chapter 12, namely: (1) Article 135 which deals with the promotion of competition by addressing anti-competitive activities, (2) Article 136 on Cooperation on Promoting Competition by Addressing Anti-competitive activities, and (3) Article 137 on the non-application of Chapter 15 of the PJEPA. The Tariff Commission was Philippine lead negotiator for the Chapter on Competition. · ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) Chapter 14 of the AANZFTA is devoted to Competition Policy. There are 4 Articles included in Chapter 14: (1) Article 1 discusses Basic Principles, (2) Article 2 is on Cooperation, (3) Article 3 deals with contact points, and (4) Article 4 is on the non-application of Chapter 17 of the AANZFTA (Consultation and Dispute Settlement). The Tariff Commission was Philippine lead negotiator for the Chapter on Competition. · ASEAN - Japan Comprehensive Economic Partnership Agreement (AJCEPA) Competition policy is cited in Chapter 8, Article 53 (Fields of Economic Cooperation), where it is provided that “the Parties, on the basis of mutual benefit, shall explore and undertake economic cooperation activities in the identified fields under Article 53.” Competition Policy is one of the identified activities. The Tariff Commission was Philippine lead negotiator on the area of Competition in the AJCEPA. International Bodies on Competition Policy and Law 

What is the International Competition Network (ICN)?

 ICN is an international network devoted exclusively to competition issues. At its inception in 2001, it had 16 founding authorities from 14 jurisdictions. ICN operates as follows: · It is a voluntary organization composed of different competition authoritiesmembers. Date of Last Revision: January 2016 Page 14 · It has no formally established headquarters, secretariat or even its own financial funding source. · ICN operates through an established working group network. These working groups produce relevant work programmes and products based on a consensus basis, made possible through the holding of various conferences (including an annual ICN conference) and e-mail communications between the ICN members. · The ICN working groups are: (i) Mergers; (ii) Advocacy; (iii) Capacity-building; (iv) Regulated sectors; (v) Cartels; (vi) Telecommunications; (vii) Unilateral Conduct; and (viii) Agency effectiveness. · There is also an established ICN Support Program wherein ICN members can request from other members for information and help in identifying and familiarizing themselves with relevant ICN work programs. 

What are the goals of ICN? ICN seeks to achieve better competition enforcement and advocacy through: · 

enhanced convergence and harmonization of competition laws and policies which are at par to global standards, with the aim of producing and promoting an economic development through enhanced productivity and efficiency · To strengthen the cooperation among competition agencies, in particular, the preferential giving of support to newly established competition authorities. 

What is the Organization for Economic Cooperation and Development (OECD)? 

The OECD is an influential organization with 30 Member States, comprised mostly of the rich countries in the world. It has a Standing Committee on Competition Policy and Law, which has its regular 30 Member countries as Members, and 5 observers, namely: Argentina, Brazil, Israel, Lithuania and Russia. The OECD has been regularly cooperating with a variety of Non-OECD countries to provide capacity building. With the advent of the OECD’s Global Forum on Competition, OECD’s cooperation activities with non-OECD members extends beyond capacity building to include high-level policy dialogue that will build mutual understanding, identify “best practices” and provide informal advice and feedback on the entire range of competition issues. The Global Forum on Competition meets annually and serves a flat form for the exchange of views and experience. 

What is the East Asia Top Level Officials Meeting on Competition Policy? 

This meeting was organized for purposes of strengthening the cooperative relationship amongst competition authorities in East Asia. The holding of an annual high level conference enabled the officials of competition authorities to hold face to face discussions and frank exchange of views towards the development of a common understanding on the importance of competition law and policy in East Asia. Date of Last Revision: January 2016 Page 15 An annual meeting called “East Asia Conference on Competition Law and Policy” was held since its inception in the year 2004 until to date. The Tariff Commission has actively participated in all such meetings and conferences. Below is the list of top-level meetings held from 2004 to date: Date Venue Meeting Conference March 2004 Kuala Lumpur, Malaysia - 1 st May 2005 Bogor, Indonesia 1 st 2 nd June 2006 Bangkok, Thailand 2 nd 3 rd May 2007 Hanoi, Viet Nam 3 rd 4 th April 2008 Kyoto, Japan 4 th - June 2009 Ulaanbaatar, Mongolia 5 th 5 th September 2010 Seoul, Korea 6 th - September 2011 Singapore 7 th 6 th May 2012 Kuala Lumpur, Malaysia 8 th 7 th August 2013 Manila, Philippines 9 th 8 th D. TC COMPETITION ADVOCACY 

What is the mandate of the Tariff Commission on competition policy? TC was streamlined/reorganized pursuant to EO No. 143 (signed on 21 August 1999) entitled “Instituting Effective Operational Mechanism and Strategies in the Tariff Commission”. The Commission, as an agency responsible for undertaking a thorough study of the Philippine trade and tariff system, was mandated to adopt operational strategies and activities to make it more effective in encouraging the development and growth of efficient, self-reliant, innovative, progressive and globally competitive Philippine industries. Section 1 of EO 143 reads, in part: “Section 1. Roles of the Commission. In the light of a freer and more liberal trading environment, the following functions of the Commission shall be strengthened and emphasized: 1.1 Institutionalization and acceleration of economic reforms to raise levels of competition, encourage economic efficiency, and improve consumer welfare; xxxx xxxx xxxx xxxx 1.5 Reinforcement of research activities regarding competition policy and the contestability of trade practices and activities of all other countries, economies and institutions in the international community; and 1.6 Conduct of a continuing program of advocacy to promote new developments in international trade and tariff policy.” 30. What is the current role of TC on competition policy? As competition advocate, the TC accepted the invitation from DOJ-OFC to co-chair the OFC Working Group on Advocacy and Partnerships. Date of Last Revision: January 2016 Page 16 29. What activities has TC undertaken following its advocacy? · CPL Seminars/Workshops ü AEGC - 5th Forum on “Handbook on CPL in ASEAN for Business” in EdsaShangrila, Manila (12 November 2012) ü AEGC 2nd Regional Guidelines Workshop on Competition Policy and Law at Intercontinental Hotel, Makati City (29-30 September 2009) ü Seminar on “Improving Trade Policy in the Philippines: An Assessment of the Economy wide Impact of Philippine Tariff Changes in the Early 2000s” at Mandarin Oriental Hotel, Makati City (24 August 2006) ü 1st Asia Pacific Economic Cooperation (APEC) Training Course on Competition Policy for APEC Member Economies at Mandarin Oriental, Manila (2-4 August 2005) ü TC-Japan Fair Trade Commission Seminar/Workshop on Competition Policy at TC Conference Room (17 November 2003) ü Seminar/Workshop on the “Study on a Comprehensive and Integrated Draft Legislation on Competition Policy and Law” held in Discovery Suites, Pasig City (13-14 August 2001) ü Seminars/Roundtable discussions by the Curtin Consultancy Services on “A Policy Framework for Competition Policy in the Philippines” in Manila (20-23 April 1999) · CPL-Related Studies/Publications ü “An Assessment of the Economy Wide Impact of Philippine Tariff Changes in the Early 2000s (March 2006)” - a study undertaken with the Philippine Tariff Commission funded by the Australian Agency for International Development (AusAid) under the Public Sector Linkages Program 2004-05 Round 1 – “Improving Trade Policy in the Philippines: An Assessment of the Economywide Impact of the Tariff Reforms and Implementation of Safeguard Measures under the WTO” By: U-Primo E. Rodriguez (Department of Economics, University of the Philippines, Los Banos, Laguna) Helen Cabalu (John Curtin Institute of Public Policy, Curtin University of Technology, Perth, Western Australia) ü Issues in the Implementation of Competition Policy in the Philippines (August 2001) - a study undertaken for the Philippine Tariff Commission, funded by AusAid through the Philippines-Australia Governance Facility (PAGF) By: Helen Cabalu, Noelle Doss, Peter Kenyon, Paul Koshy, Vicar Valencia, Nick Wills-Johnson (The Institute for Research into International Competitiveness) Stephanie Fryer-Smith (School of Business Law, Curtin Business School, Curtin University of Technology, Perth, Western Australia) Emmanuel A. Cruz (Philippine Tariff Commission) Date of Last Revision: January 2016 Page 17 ü TARFCOM: A CGE Model of the Philippines - Quantifying the Impact of Competition Policy on the Philippine Economy (August 2001) - a study undertaken for the Philippine Tariff Commission, funded by AusAid under the PAGF By: Mark Horridge (Centre of Policy Studies, Monash University, Melbourne, Australia) James Giesecke (Centre for Regional Economic Analysis, University of Tasmania, Hobart, Tasmania) Helen Cabalu (Institute for Research into International Competitiveness, Curtin Business School, Curtin University of Technology, Perth, Western Australia) Marilou P. Mendoza (Philippine Tariff Commission) U-Primo Rodriguez (Department of Economics, University of the Philippines, Los Banos, Laguna) ü A User’s Guide to the TARFCOM Model (October 2005) - shows how to conduct experiments using TARFCOM and can illustrate how tariff changes can be used to achieve selected policy targets. By: U-Primo Rodriguez (Department of Economics, University of the Philippines, Los Banos, Laguna) Helen Cabalu (Institute for Research into International Competitiveness, Curtin Business School, Curtin University of Technology, Perth, Western Australia) ü Improving Trade Policy in the Philippines: An Assessment of the Economy - wide Impact of the Tariff Reform Program and the Implementation of the WTO Safeguard Measures" - a research study jointly undertaken by TC and John Curtin Institute of Public Policy of the Curtin University of Technology, Western Australia under the auspices of AusAid ü A Policy Framework for Competition Policy in the Philippines (March 1999) - a study undertaken for the Philippine Tariff Commission, funded by the United Nations Office for Project Services (UNOPS) and organized through Curtin Consultancy Services. By: Helen Cabalu, Noelle Doss, Ian Firns, Therese Jefferson, Peter Kenyon, Paul Koshy, Lee Kian Lim (The Institute for Research into International Competitiveness, Kevin Brown School of Business Law, Curtin Business School, Curtin University of Technology, Perth, Western Australia ü Competition Policy for the Philippines - a pamphlet prepared jointly by the Philippine Tariff Commission, and the Institute for Research into International Competitiveness, Curtin University of Technology, Perth, Western Australia. The project was funded by AUSAid through the PAGF. ü A Primer on Developments in Tariff and Trade Policy (2013 edition) – a publication by the Tariff Commission which contains a chapter on competition policy