Trade Networks Monopoly Getting Limited
24.05.2012 / 11:36
Draft law On State Regulation of Trade introduced in Belarus.
Belarus has developed a draft law On State Regulation of Trade aimed at countering the country's consumer market monopolization by large retail chains. This was stated by the head of the Republican Confederation of Entrepreneurs (RCE), Viktar Marhielau, on May 23. According to him, active development of large retail chains forces out small and medium-sized trading business of the market.
The head of the RCE says that the bill clarifies the scope of the regulation terms, which is important in resolving conflicts in the court and off the court. It also distributes power in the sphere of state regulation of trade, while leaving the basic antitrust function to the Ministry of Commerce.
According to Viktar Marhielau, the bill offers a reasonably well-balanced and available structure of the co-existence in the country's consumer market of major retail chains and stores. Everybody will lose in the long run without such a balance, because after the monopolization of trade is inevitably followed by a producer’s monopoly. Thus, consumers suffer as a result, he added.
The bill also strictly regulates the relationship between producers and trading entity: tightens requirements for paying for the goods, cancels supplier’s requirements of additional payments (payment for a place on the trading floor, for repacking, etc.).
Viktar Marhielau also offers to create a ‘Bona fide business community ECR-BEL,’ “whose mission would be to oppose the monopoly and unfair competition in the wholesale and retail trade. In addition, the ‘Code of Good Practice’ would help set the rules of fair play in the consumer market, providing a balance between the commercial interests of suppliers, trading companies and consumers,” he said.