Govt sets end of Sept as deadline to finalise proposed competition law

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Munima Sultana
The government has set end of September as a deadline to finalise the country's first ever competition law as part of an intensified move to curb unholy practice of the business cartels, officials said Sunday.
Commerce ministry officials said the draft law, which is two years in the making, still needs to settle some tricky issues on a proposed competition commission before it is completed by end of next month.
"We have almost finished the task. The body of the law has already been drafted. But we need to make further review and fine-tuning over the next few weeks so that it does not overlap the country's existing trade laws," an official said.
He said the authorities have set end of September as the deadline to complete the drafting work and "then we'll send it to the Cabinet for approval."
Officials said they are also reviewing the roles of the Bangladesh Competition Commission, which would be entrusted to combat anti-competition elements in the local market.
The move comes amid renewed allegations that the country's top food and trading companies are manipulating prices of essential commodities by forming "so-called syndicates."
Commerce minister Faruk Khan has repeatedly urged the businessmen to keep prices in line with their global rates, but his requests fell on deaf ears.
Prices of major food items had a fresh round of escalation last week just days after Khan spoke to the country's top traders, pleading them to keep commodities at a tolerable level ahead of the Muslim holy month of Ramadan.
Officials said the new law --- which has been drafted after consulting competition rules in other countries --- has provisions to tackle the business cartels effectively.
"The law will create a new tribunal and have provision for leniency for the businessmen or witnesses who would tip the government on any business cartels or malpractices," the official said.
"The government needs to offer leniency to the approver if it wants to break the so-called cartels responsible for anti-competition practices in local market," he said.
R Shyam Khemani, an international expert, hailed the Bangladesh's draft competition law, saying it would help the government keep the market stable.
"It's almost done. I have seen the draft law and all I can say that it's one of the best in the world. It has incorporated best international practices and principles," he told the FE.
Khemani, who has been hired by Bangladesh Investment Climate Fund, has advised 24 countries around the globe on formulating competition laws.
He said the proposed law would also make the businessmen happy.
"There is no anti-business element in the draft competition law. It would serve both small and large businesses while at the same time curb cartels," he said.
"The proposed law won't control business but would protect consumers' interest. It won't regulate trade or prevent the businessmen from doing business, but process and promote competition," he added.