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Does the EU Competition Model Satisfy the Needs of the Emerging Economies? Lessons from Countries without a Carrot

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Botta, M. (2012). Does the EU Competition Model Satisfy the Needs of the Emerging Economies? Lessons from Countries without a Carrot. Framework for Economic Development in EU External Relations, 51-74.

Cite as: https://hdl.handle.net/11858/00-001M-0000-002D-4E50-E
The paper discusses the institutional aspects of transplantation of the EU competition model to emerging economies which has taken place during the last two decades within the enlargement and the European Neighbourhood Policy (ENPI). The model which was designed to satisfy the needs of developed economies characterized by well functioning markets has been implemented by both the States under enlargement and the ENP conditions as well as other third countries. The paper relies on the experience of two emerging economies – Brazil and Argentina - which did not have any “carrot” of EU membership or closer economic relations with the EU, to adopt the EU competition model. The case studies showed that the non-orthodox institutional model established in Brazil, where an independent NCA enforces the competition law together with two bodies connected to the executive branch, proved to be more successful than the Argentinean model. The latter, which referred directly to the EU institutional model, opted for a fully independent Competition Tribunal. This institution, however, has never been established in this country. In particular, the Brazilian institutional model proved to be more successful in terms of competition advocacy of the NCA vis-à-vis other State bodies. A lesson, in the view of the discussed experiences should also be learnt when considering adoption of the EU competition model by the EU partner countries.