IDEAS home Printed from
   My bibliography  Save this paper

Linking competition and trade policies in Central and Eastern European countries


  • Hoekman, Bernard M.
  • Mavroidis, Petros C.
  • DEC


The authors explore options for Central and Eastern Europe (CEE) governments to make competition law enforcement more sensitive to trade and investment policy, thereby supporting liberal trade policy. The competition laws of these countries tend to resemble European Union (EU) competition disciplines (Article 85 - 86 of the Treaty of Rome), but give competition authorities great scope for discretion in interpreting the relevant statutes. Much can be done through appropriate wording of criteria and implementation guidelines within the framework of existing legislation to subject trade policy to competition policy scrutiny. A liberal trade policy and active enforcement of competition laws will be crucialnot only for national welfare, but also for eliminating the threat of contingent protection by EU firms. When CEE countries face antidumping threats or action from EU countries, the authors suggest that they seek a link between competition law enforcement and antidumping investigation in the context of the association agreements with the European Union. That is, the European Commission could be asked to apply competition policy criteria in antidumping investigations against products originating in CEE countries, ensuring that there is a threat to competition, not just a threat to a European Union competitor. This treatment could be sought informally during the transitional period. Generally, since the CEE countries have adopted competition legislation comparable to that of the European Union, it seems safe to assume that if they enforce their competition laws vigorously, EU consistent minimum standards will be respected. Until the association agreements are fully implemented, it is important to reduce to a minimum the risk of being treated as an"unfair trader."Safeguard actions will remain possible until EU membership has been attained. But safeguard protection is more difficult to seek and obtain if there is only a weak case for arguing that Central and Easter European firms are benefiting from trade barriers, state aids, or various government maintained entry barriers.

Suggested Citation

  • Hoekman, Bernard M. & Mavroidis, Petros C. & DEC, 1994. "Linking competition and trade policies in Central and Eastern European countries," Policy Research Working Paper Series 1346, The World Bank.
  • Handle: RePEc:wbk:wbrwps:1346

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Hay, Donald, 1993. "The Assessment: Competition Policy," Oxford Review of Economic Policy, Oxford University Press, vol. 9(2), pages 1-26, Summer.
    2. Sapir, Andre & Buigues, Pierre & Jacquemin, Alexis, 1993. "European Competition Policy in Manufacturing and Services: A Two-Speed Approach?," Oxford Review of Economic Policy, Oxford University Press, vol. 9(2), pages 113-132, Summer.
    3. Gray, C.W., 1993. "Evolving Legal Frameworks for Private Sector Development in Central and Eastern Europe," World Bank - Discussion Papers 209, World Bank.
    4. Jacquemin, Alexis, 1990. "Horizontal concentration and European merger policy," European Economic Review, Elsevier, vol. 34(2-3), pages 539-550, May.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Martin, Philippe, 1996. "A sequential approach to regional integration: The European Union and Central and Eastern Europe," European Journal of Political Economy, Elsevier, vol. 12(4), pages 581-598, December.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:1346. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.