Exports
and the Trade Practices Act
Guidelines to the Commission's approach
to mergers,
acquisitions and other collaborative arrangements
that aim to
enhance exports and the international competitiveness
of Australian industry
Australia
September 1997
Section 5. Suggested checklist
When a proposed arrangement may enhance exports or otherwise improve
international competitiveness, parties might find it useful to
consult a checklist of relevant issues before approaching the
Commission to discuss the proposal. The following is a broad,
non-exhaustive list of such issues which may be of guidance.
Is the proposed arrangement likely
to breach s. 50 or another provision of Part IV of the Trade
Practices Act?
- What is the relevant market? Does it extend beyond Australia?
- To what extent are the matters listed in s. 50(3) relevant
to the proposal? In particular, do imports appear to provide
an effective check on the exercise of market power? If so, to
what extent are imports significant, sustained, independent and
comparable? Are there any dynamic characteristics of the market
that may be relevant to the Commission's assessment of a merger?
- What are tariff levels in the relevant sector?
- What sort of efficiencies are likely to accrue? Are they
durable and quantifiable? How do the efficiencies affect incentives
to compete in the relevant market? What is the likelihood that
the claimed efficiencies will accrue as a result of the proposal?
Are there other ways, besides the proposal, by which such efficiencies
can be achieved?
- Generally, are there other ways in which the arrangement may
be structured so that it does not breach Part IV and yet achieves
the parties' goals?
Is it more appropriate for the proposal to be considered under an application
for authorisation?
- What sort of public benefits are to be gained from the proposal?
Do the public benefits (e.g. enhancing international competitiveness)
outweigh the detriments associated with the proposal (e.g. reducing
competition in the domestic market)?
- How can the arrangement be structured so that operations do
not impact adversely on the competitiveness of the domestic market?
- What sort of international framework surrounds the proposal?
- Are the parties competitively disadvantaged (by tariff and
non-tariff barriers) in export markets? Are such barriers insurmountable?
[Section 1. Background to the guidelines]
[Section 2. The process of merger review and authorisation]
[Section 3. Forming other collaborative arrangements]
[Section 4. The international framework of collaborative arrangements]
[Section 5. Suggested checklist]
[ACCC export contact officers]