The Importance of South–South Competition Cooperation Under the UFM: QIZ Case Study
13 Pages Posted: 11 Nov 2010
Date Written: November 10, 2010
This article is intended to address the importance of South–South cooperation between partner countries as recommended by the Union for the Mediterranean policies and recommendations.
The importance of cooperation is highlighted through exploring the competition law concerns arising from the protocol of the Qualified Industrial Zones (concluded between Egypt, Israel and U.S.A). It was chosen as an example amid complains from the Egyptian importers regarding the significantly high prices of the Israeli imports. With a closer look, the official figures of the Egyptian Authorities reveal that there is an increase in the prices of the Israeli imports around 20%-30% than their international prices. The article also shows that the Israeli market can hardly be described as a 'free and competitive market' as stated by the Egyptian Government. Moreover, it identifies possible anticompetitive restraints that the Israeli importers might be involved in.
Although the study cannot specify a specific anticompetitive conduct on part of the Israeli exporters (due to lack of the data), it clearly indicates that there are concerns that needs to be addressed.
These concerns and this study can never be accomplished or fully scrutinized without a close cooperation between the Egyptian and Israeli Competition Authorities. It is for the benefit of both countries to address this issue which may have adverse effects on their trade relations.
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