PHOTO CUTLINE: Minister of Tourism, Economic Affairs, Transportation and Telecommunications Hon. Romeo Pantophlet
Based on the outcome of a Feasibility Study, the Ministry of Tourism, Economic Affairs, Transportation and Telecommunications (MinTEZVT) has commissioned the Social Economic Research Institute (SEO) affiliated with the University of Amsterdam in The Netherlands, to develop a Competition Act, as well as a Competition Authority Policy and an Implementation Plan in order to legalize the Competition Authority.
This project is structured into two phases: phase 1 is to develop the Competition Authority Policy (deadline April/May 2013) and phase 2 is development of draft legislation and implementation Plan (deadline July 2013).
PHOTO CUTLINE: Left, representatives from the Ministry of Tourism, Economic Affairs, Transportation and Telecommunications, Consultant (center), and Right, members of the Council of Ministers. DCOMM Photo
More and more countries are implementing Competition Act’s and establishing a Competition Authority. In addition to large countries such as the United States of America and European countries, there are more and more small (island) economies that have established a Competition Authority. Examples in the Caribbean region are Jamaica and Barbados, as well as Curacao and Aruba who are in the process of developing Competition Authority legislation.
On Thursday, a presentation was provided to the Council of Ministers on the topic of Competition Authority by the Ministry of TEZVT and SEO consultants drs Koert van Buiren and drs Cees van Gent.
During the week of March 18 to 21, SEO were on island to conduct consultation rounds with all relevant internal and external stakeholders in order to gather the necessary information and feedback on the development of such a Competition Authority for the country.
In 2011, a Feasibility Study –which was funded by USONA and carried out by SEO – on St. Maarten demonstrates that the island is confronted with significant distortions to competition in several markets. These distortions to competition increase the cost of living in St. Maarten, decreases purchasing power, pushes up the cost of doing business and affects St. Maarten’s international competitive position (in particular for international investors) negatively.
The goal of the Sint Maarten Competition Authority is to function as an independent regulatory and monitoring oversight authority for all business mergers, cartel formation as well as consumer protection on the island.
The Authority should oversee (i) the prohibition of cartel agreements, (ii) the prohibition of abuse of a dominant position, and (iii) merger control regulation, and (iiii) consumer protection.
In addition, in light of the spiraling high cost of living, due to the high prices on the island, Government also commissioned Stichting Overheidsaccountant Bureau (SOAB) to review the margins of the ‘basket of necessities’ and review the existing price regulation system. SOAB should complete this in May 2013.
Both projects are geared to come with feasible solutions for the Government of St Maarten to provide relief to the population of St Maarten, by increasing overall competition on the island and ultimately decreasing the cost of living.
Attendees from Ministry of TEZVT in the COM meeting on Thursday were: Secretary General TEZVT, Miguel de Weever, Acting Head EVT Erika Radjouki and Statistical Analyst from STAT, Saskia Thomas-Salomons.