Azerbaijan, Baku, April 24 / Trend I.Khalilova /
Azerbaijan is ready to complete the process of adopting the Code on competition passed in the parliament at the second reading Dec. 25, 2007, at the spring session, Parliamentary Economic Policy Committee Chairman Ziyad Samadzade said.
"Presently, the Azerbaijani Presidential Administration conducts latest updates on the document," Samadzade added.
Delays in the adoption of the Code have been associated with changes in the structure of the Economic Development Ministry, consolidation of the two departments and creation of public service on competition policy and consumer protection on their basis. New state service has begun work in 2010.
"No change was made in the bill after the second reading and I think that in the coming days will be decided on its submission to the debate in the parliament in the third reading," he said.
The code defines a legal framework for ensuring free and fair competition and protection in the field of entrepreneurial activity, and regulates the businesses relations existing in the commodity and financial services markets.
Under the project, the entity having 35 percent or more share in the market is considered to be a monopolist, but in the banking, insurance, leasing services and private pension insurance owner of more than 25 percent is recognized monopolist, and the securities market - more than 10 percent. Subjects having a monopoly position, have no right to unreasonably raise prices on its products (services) in the event of a shortage, and to prevent opportunities for a competitive environment.
The industries of natural monopolies include: transportation of oil and petroleum products through pipelines; transportation services; natural gas distribution and supply; services for the production, transmission and supply of electricity and thermal energy; local and trunk lines and railways services ; exploitation of road equipment and buildings ; management and safety of traffic, railway stations and railway stations; exploitation of main highways and roads of general importance, as well as other services.
The bill on code was adopted by the Parliament in first reading in the autumn of 2006.
The IMF mission, which conducted a review of Azerbaijan on Article IV Feb.18 -March 3, also recommended the government to accelerate the adoption of the code on competition. According to the IMF mission, the legislative framework (antitrust and investment legislation) is required to achieve the objectives of the government to promote non-oil exports and entry into the World Trade Organization.
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