The Role Of Competition Law And Its Effects On The Local Market And South African Economy Essay

1380 WordsDec 4, 20166 Pages
My interest in this paper is to consider a complex network prospective; the application of Competition Law, and more specifically related to its effects on monopolistic competition, and its effects on the local market and South African economy as a whole. South Africa (SA) was distant from many other major markets and production centers. This made it complex for international trade to compensate for these conditions, even though trade has expanded since 1994, mainly with the European (EU) and the United States (US). Tariff levels have declined on average, but anti-dumping duties protect key industries such as steel, where the state has long had an interest and an exclusive export agent can prevent arbitrage between export and local markets. SA’s history of import substitution and the attendant habits of business practice and government policy favored local insiders thus challenging other market entrants. This encouraged the new SA government to review the SA competition law regime in the White Paper on Reconstruction and Development in 1994. The need for a new competition policy in SA was because of excessive economic concentration and ownership, collusive practices by enterprises and the abuse of economic power by firms in dominant positions. A need for further transition emanated from the effects of globalization and trade liberalization and the need to redress past inequality and non-participation in the national economy. Thus fundamental principle of competition policy
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