2012 Competition Law in Paraguay

By Rodrigo Aguirre, Berkemeyer Attorneys & Counselors

In 2010, the lower chamber of the Paraguayan Congress tried unsuccessfully to introduce the competition draft bill. The lack of political agreements and will, have delayed the adoption of any type of legislation to regulate competition in Paraguay.

In the past days there have been concerns by suppliers in the commercial sector due to the absence of law regulating competition, creating unfavourable conditions to many products.

The law is intended to regulate commercial entities and merchants domiciled in Paraguay or abroad that are conducting economic activities within the country that might affect market competition. The law proposes the creation of a National Competition Commission as the authority in charge of the enforcement of the law. The commission is competent in the Paraguayan territory and has the authority to conduct investigations and penalize according to the law.

A representative of the Chamber of the House of Suppliers of Goods and Services of Paraguay (Capro - Cámara de Proveedores de Bienes y Servicios del Paraguay (Capro)),has recognized that if there is no political support a competition law in Paraguay is hardly reality.

The manufacturers' representative stated that with the adoption of a competition law authorities would be able to punish "practices of dominant position" within the market. This sector has insisted that without a competition law commercial practices that threat the Paraguayan market today, will continue.

On the other hand, the president of the Chamber of Paraguayan Importers Center (CIP) has drafted a competition law which counts with the approval of unions and key players in the sector. The main objective of the draft law is to protect Paraguayan markets and promote competition.

The project reflects the situation of Paraguay in all sectors and is supported by similar laws abroad. The new draft legislation has taken recommendations of United Nations agencies

The competion law debate has been revived in Paraguay. The need to protect the market and consumers is a priority according to all the parties involved.