In June 2013, Mexico passed a constitutional reform modifying the institutional landscape in the areas of telecommunications, broadcasting and competition. The reform :
- created two different competition authorities, the Federal Economic Competition Commission (COFECE) or the Federal Telecommunications Institute (IFT),
- established specialised courts in these areas and
- enacted a new Federal Economic Competition Law endowing the Federal Executive Branch by itself or through the Ministry of Economy to request the competition authorities to start investigations and special procedures, perform studies and issue non-binding opinions.
In December 2014 Mexico's Ministry of Economy and the OECD signed an Agreement to help Mexico strengthen its competitiveness through economic competition.
The support provided by the OECD through this agreement aims to help the Ministry to promote competition in Mexico, by the identification of restrictions or distortions that unduly limit competition in its markets.
The project is co-ordinated by the Vice-Ministry for Competitiveness and Standardisation of the Ministry of Economy of Mexico. The outputs of the agreement are developed by the Competition Division of the OECD.
A long-standing partnership
Prior competition and regulation work with Mexico includes the 2008 Mexico-OECD Co-operation to Strengthen Competitiveness in Mexico that was constructed around 2 pillars: competition and regulatory improvement. This multi-year project supported improving the competitiveness of the Mexican economy by reforming and modifying the regulatory and institutional framework to encourage higher levels of investment, employment and growth.
The competition pillar focused on increasing competition in product markets. This process identified regulations and policies that unnecessarily restricted competition, and developed alternatives to make regulation more pro-competitive, using the framework of the Competition Assessment Toolkit. This work was done in co-operation with the former Mexican Federal Competition Commission (CFC) and the Ministry of Economy of Mexico.
The project was co-ordinated by the Vice-Ministry for Competitiveness and Standardisation of the Ministry of Economy of Mexico. Toolkit project proposals were developed by a technical group overseen by CFC in co-operation with the Competition Division of the OECD.
Competition Assessment Toolkit
OECD Recommendation on Competition Assessment
Using the Competition Assessment Toolkit
The Toolkit contains a checklist that signals when there is a potential competition problem that should be investigated in more depth (along the lines of those regularly conducted by Competition Authorities). The checklist identifies potential problems if the policy, law or regulation will:
Limit the number or range of suppliers, e.g. establishes a license process as an operation requirement
Limit the ability of suppliers to compete, e.g. significantly raises production costs of new entrants relative to incumbents
Reduce the incentive of suppliers to compete vigorously; reduce mobility of consumers between suppliers
If a more in-depth investigation reveals that there is an undue restriction on competition, the Toolkit contains advice on alternatives that may offset or mitigate potential harm to competition while still achieving the policy objective of the original law/regulation.
Mexico has been using the toolkit to identify barriers to competition in the sectors of medicines and meat. Read more at Mexico: Competition Assessment Project.
OTHER PAPERS AND PRESENTATIONS
Eliminación de restricciones a la participación extranjera en México - Evaluación de los beneficios potenciales en algunas industrias, OECD/CFC
Competition: The rules of the game | La competencia: la regla del juego, Speech by Angel Gurría, OECD
The OECD's Competition Assessment Toolkit in Mexico, Eduardo Perez Motta, CFC
Efectos distributivos y espaciales de las empresas, Carlos Urzúa
Australia's national competition policy / Política nacional de competencia de Australia, Simon Corden, OECD
Competition assessment, Sean Ennis, OECD
Competencia en el crédito bancario al consumo, Eduardo Perez Motta, CFC
Competencia en el mercado farmacéutico
Competencia en la interconexión entre redes de telecomunicaciones
Competition screening of normas, Craig Conrath, OECD
Domestic airline sector in Mexico, Agustín Ros, OECD - Airline report - working paper - presentation
Regulación y competencia en el autotransporte foráneo de pasajeros
Mexican Federal Commission for Economic Competition (CFC)
Vice-Ministry for Competitiveness and Standardisation of the Ministry of Economy of Mexico