UNCTAD will support the Government of Paraguay in the design and enforcement of a national competition and consumer protection framework, aimed at enhancing efficiency for economic growth and development.

UNCTAD's Competition Policy and Consumer Protection Branch (CPCB) supports developing countries in designing and enforcing competition laws and policies that are best adapted to their development objectives and in formulating consumer protection programmes intended to raise consumer welfare.

In a mission to Paraguay, Mr. Hassan Qaqaya, Acting Chief of the CPCB, met with H.E Fernando Lugo, President of the Republic of Paraguay, and Mr. Francisco Rivas, Minister of Industry and Commerce, to discuss UNCTAD's support to the Government of Paraguay in the drafting and enforcement of a competition law.

Such support will be instrumental in helping Paraguay develop a market economy based on clear and transparent rules aimed at enhancing the development gains of the country from domestic and international trade.

H.E. Fernando Lugo, President of the Republic of Paraguay (left), with Mr. Hassan Qaqaya, Competition Policy and Consumer Protection Branch, UNCTAD

The meeting took place in the Palacio de López on Monday,
9 November 2009 and included Mr. Agustín Perdomo, Vice-Minister of Commerce, other key representatives from the Government of Paraguay and experts from UNCTAD.

Mr. Rivas commented that, as part of the establishment of a competition framework, it will be necessary to encourage businesses in Paraguay to rationalize production and distribution as well as develop an ability to constantly adapt to technical and scientific progress.

During the discussions, it was stressed that the promotion of competition should not be a target in itself but rather a means to the greater ends of economic growth and development.

The major objectives are to promote competition in order to enhance economic efficiency among businesses. Not only will this help to enhance the international competitiveness of Paraguayan enterprises but it will also have the added benefit of enabling Paraguayan consumers to have access to a greater variety of high quality goods and services at affordable prices, with resulting welfare gains.

UNCTAD is expected to collaborate closely with the national authorities in Paraguay in the coming years in the design and enforcement of a development-oriented competition and consumer protection framework.

This support to the Government of Paraguay falls within the COMPAL programme of UNCTAD, which aims to strengthen institutions and capacities in the area of competition and consumer protection in Latin America.

The COMPAL project, funded mainly by the Swiss Government and national governments in Latin America, has been extended this year to nine countries: Bolivia (Plurinational State of), Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Nicaragua, Peru and Uruguay, with discussions ongoing with other countries for further potential collaboration.

COMPAL comprises both a national country-level component and a regional component aimed at enhancing regional cooperation on competition policy issues.