The Contribution of Bilateral Trade or Competition Agreements to Competition Law Enforcement Cooperation between Canada and Costa Rica

Abstract

Chapter XI of the Canada-Costa Rica Free Trade Agreement contains provisions relating to competition law enforcement cooperation between these two countries. This Chapter includes terms covering inter alia the following cooperative concepts: comity, consultations, conflict avoidance, confidentiality, information exchange and technical assistance. The effectiveness of these provisions can be evaluated by considering the following conflicting hypotheses: (1) competition arrangements in bilateral trade arrangements do not create significant value added over and above the spontaneous co-operation that evolves between competition agencies, and that agreements initiated and negotiated directly by competition agencies are likely to be more effective, especially in terms of achieving the objectives of the agencies; or (2) that because international competition cooperation is likely to involve trade, there is value added in putting competition cooperation agreements into trade agreements and that this is likely to assist the evolution of natural cooperation including follow-on inter agency agreements.