Competition can be a powerful force for economic development, growth and productivity. Both competition policy and trade policy can play a role in harnessing competition for these purposes, but the interaction between the two is not often considered. This may change in the years ahead, as policymakers consider how to promote development through competition in a world characterised by different economic and trading systems, as well as growing recognition of the need for a level international playing field.
In December 2021, the 20th edition of the Global Forum on Competition tried to make the link between these two policy areas, and explored where there are tensions and common ground. Some key questions that were covered included:
- Should competition policy should take into account differences in economic systems or distortions in trade, and if so how?
- How can competition and trade policy be used to maintain a level playing field in the wake of the COVID pandemic, which has increased interest in industrial policy and the promotion of “national champions”
- Can trade policy be used to promote greater harmonisation of competition policy across jurisdictions?
- Are there areas of conflict between trade and competition policy?
The session was led by a panel of experts from both policy areas to debate these questions, and discuss with delegates in an interactive Q&A format.
