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Voluntary Peer Review of Competition Law and Policy - Egypt
UNCTAD Voluntary Peer Reviews on Competition Law and Policy have been facilitated by UNCTAD since 2005 promoting the exchange of experience and knowledge between advanced and less experienced Competition Authorities and fostering international cooperation. These exercises are one of the technical cooperation products of UNCTAD in the field of competition law and policy being included in the UNCTAD Toolbox (2020). The voluntary peer review on competition law and policy of Egypt is the second of an Arab member State (the first one was Tunisia in 2006). The scope of this exercise is focused on the substantive provisions of Egyptian competition law and enforcement practices of the Egypt Competition Authority (ECA) as well as ECA’s international cooperation and the gathering of the necessary information and testimonials which is currently underway. It will contribute to the improvement of Egypt’s legal and institutional framework law enforcement and cooperation on competition law and policy between relevant stakeholders.
Evolution of Egyptian competition law
ECL was promulgated on 15 February 2005. Article 4 of its preamble stated that it would be enacted 3 months later on 16 May 2005. It came into force with the enactment of ECLER on 18 August 2005 and subsequently the appointment of ECA’s Board of Directors on 24 August 2005. This was followed by the hiring of technical staff which took place from that date until early 2006.
Recommendations
UN Trade and Development (UNCTAD) voluntary peer review of competition law and policy of Egypt recommends among others: 1) substantial amendments and updates to the provisions in ECL and ECLER; 2) ECA is advised to publish merger guidelines and soft laws given its sole jurisdiction over all competition matters in all sectors and to cooperate in a more formal manner with Central Bank of Egypt and Financial Regulatory Authority; and 3) ECL and ECA need to be revised to give ECA overall more authority and independence to enhance efficiency and ensure more effective law enforcement. In this way the legal and institutional frameworks for competition law in Egypt could be strengthened.
Legal framework
ECL prohibits certain horizontal agreements anti-competitive vertical agreements abuse of dominant position and economic concentrations that substantially restrict lessen or harm the freedom of competition. However several issues have emerged from this legal framework and it does not adequately cover exploitative abuses or digital market issues. Debate also arises from competition jurisdiction in the telecommunications sector stemming from the anti-trust and merger control powers of the Central Bank of Egypt (CBE) and the Financial Regulatory Authority (FRA). This necessitates a comparison to international best practices which could offer useful recommendations for reformation.
Foundation and history
Over the past few decades the Egyptian economic system has undergone significant changes transitioning from protectionism in the 1950s to an open-door policy in the late 1960s. The Egyptian Competition Law (ECL) was eventually enacted in 2005 aiming to regulate economic activities and prevent anti-competitive practices. Subsequent amendments in 2008 2014 and 2022 introduced merger control regimes a leniency program and enhanced the Egyptian Competition Authority (ECA)’s independence. ECL is enforced through a criminal enforcement model with a dual-tier system: ECA makes administrative decisions while the judiciary imposes fines on cases brought by the public prosecution.
Acknowledgements
Voluntary peer reviews of competition law and policy of United Nations Conference on Trade and Development (UNCTAD) are conducted at annual meetings of the Intergovernmental Group of Experts on Competition Law and Policy or at five-yearly United Nations Conference to Review All Aspects of the Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices.
Institutional design
The ECA is the sole governmental institution responsible for applying ECL. However in its application challenges arise in enforcement structures and practices including fines calculation imposition of administrative monetary sanctions and binding remedies limiting its effectiveness. Regarding the institution itself ECA’s lack of independence budget and staffing issues could impact its operational capacity. ECA’s private enforcement of competition laws is also underdeveloped which limit the effectiveness of compensating victims of anti-competitive practices.
Acknowledgements
The Review of Maritime Transport 2024 was prepared by UNCTAD under the overall guidance of Shamika N. Sirimanne Director Division on Technology and Logistics UNCTAD by Regina Asariotis Mark Assaf Celine Bacrot Hassiba Benamara Liliane Rose Flour Poul Hansen Jan Hoffmann Onno Hoffmeister Tomasz Kulaga Luisa Rodríguez Camila Struempfler Hidenobu Tokuda and Frida Youssef.
Making the legal and regulatory environment fit for purpose
It is essential that legal and regulatory frameworks in the maritime industry remain fit for purpose in the face of changing circumstances and growing challenges. This chapter draws inspiration from the theme of World Maritime Day 2024 “Navigating the future: Safety first!” and examines legal considerations regarding two distinct sets of risks for maritime transport: a) the safety of ship and port operations in the light of changing weather- and climate-related risks and b) fraudulent ship registration and registries.
International maritime trade
UNCTAD forecasts maritime trade volume to expand by 2 per cent in 2024 and containerized trade volume by 3.5 per cent. In the period 2025–2029 UNCTAD projects that total seaborne trade will grow on average by 2.4 per cent and containerized trade by 2.7 per cent. This growth is driven by increased demand for major bulks such as bauxite coal containerized goods grain iron ore and oil. Infrastructure developments technological advancements and the transition to cleaner energy are also expected to support continued trade growth. However significant risks could still hinder a sustainable recovery in maritime trade. Geopolitical tensions and the growing severity and frequency of extreme weather events add to the underlying threats and vulnerabilities that could persist into 2025 and beyond.
Foreword
Maritime transport serves as the main artery of global trade. Intricate networks of shipping routes ports and maritime chokepoints have enabled globalization and strengthened the interconnectedness of the world economy. However the sector is facing numerous challenges that threaten the efficiency reliability resilience and sustainability of maritime transport.
Note
The Review of Maritime Transport is a recurrent publication prepared by the UNCTAD secretariat since 1968 with the aim of fostering the transparency of maritime markets and analysing relevant developments. Any factual or editorial corrections that may prove necessary based on comments made by Governments will be reflected in a corrigendum to be issued subsequently.
Freight rates, maritime transport costs and their impact on consumer prices and economic activity
At the end of 2023 and into 2024 disruptions in the Red Sea the Suez Canal and the Panama Canal caused container shipping rates to rise and become more unpredictable. This surge in prices followed a period of relative stability in 2023 which came after several years of extreme fluctuations including record highs. The performance of the container shipping market was mixed across different trade routes influenced by changes in supply and demand throughout 2023.
Review of Maritime Transport 2024
Navigating Maritime Chokepoints
Global maritime trade grew by 2.4% in 2023 recovering from a 2022 contraction but the recovery remains fragile. Key chokepoints like the Suez and Panama Canals are increasingly vulnerable to geopolitical tensions conflicts and climate change. These disruptions are extending shipping routes straining supply chains and raising costs with profound impacts on food security energy supplies and the global economy as over 80% of world trade volume is carried by sea. Vulnerable economies especially small island developing States and least developed countries are hit hardest by rising shipping costs from rerouted vessels. The Review of Maritime Transport 2024 highlights these challenges calling for urgent action to strengthen industry resilience accelerate decarbonization and support vulnerable economies. It underscores the need for new infrastructure that is sustainable and resilient a faster transition to low-carbon shipping and a crackdown on fraudulent ship registrations to safeguard global trade.
World shipping fleet and services
In 2023 and the first half of 2024 the shipping industry faced significant disruptions and volatility. The global fleet grew at an annual rate of 3.4 per cent in 2023 up from 3.2 per cent in 2022 and below the average 5.2 per cent of 2005–2023. Total fleet capacity reached about 2.4 billion dead weight tons.
Port performance and maritime trade and transport facilitation
In 2023 and early 2024 port performance worldwide showed positive trends with an increase in port calls better connectivity and improved cargo handling. After experiencing congestion and slowdowns during the COVID-19 pandemic ports are now recovering and stabilizing thanks to trade facilitation and investments in infrastructure. However this stability may be short-lived as mid-2024 is showing signs of renewed congestion due to deviations and disruptions resulting from the disruptions in the Red Sea and reduced capacity in the Panama Canal.
Monthly Bulletin of Statistics, August 2024
Each issue of the Monthly Bulletin of Statistics (MBS) presents current economic and social statistics for more than 200 countries and territories of the world. Written in French and English it contains over 50 tables of monthly and/or annual and quarterly data on a variety of subjects illustrating important economic trends and developments including population prices employment and earnings energy manufacturing transport construction international merchandise trade and finance. The annual subscription rate for the Monthly Bulletin of Statistics in print includes access to the MBS Online.