Fair Road Transport

Competition in the BSEC region

Haydar zkan
BSEC-URTA Secretary General

Competition
Merriam-Webster defines
competition in business as "the
effort of two or more parties acting
independently to secure the
business of a third party by
offering the most favourable
terms".

Benefits of Competition
Competition, according to the theory,
causes commercial firms to develop
new products, services and
technologies, which would give
consumers greater selection and
better products. The greater selection
typically causes lower prices for the
products or services, compared to what
the price would be if there was no
competition (monopoly) or little
competition (oligopoly)

Levels of competition
The

most narrow form is direct competition. The

products or services that perform the same function
compete against each other.

The

next form is substitute competition. The

products or services that are close substitutes for
one another compete, e.g. butter vs margarine.

The

broadest form of competition is budget

competition. It is about anything that the
consumer might want to spend according to its
available money. For example, a family that has
$20,000 available may choose to spend it on many
different items, which can all be seen as competing
with each other for the family's available money.

Fair Competition
Competition based on the factors
of price, quality and service; not on
the abuse of near-monopoly
powers, competitor bashing,
predatory pricing, etc.

Road Transport
Competition
Within

the road transport market

(direct competition)
With other modes of transport
(substitute competition)

Protectionism
Governmental policy aimed at
shielding a fragile economy, or a weak
or critical sector, from cheaper or better
imports through imposition of high duty
rates (tariff barriers), quotas, and/or
inordinately stringent or time
consuming inspection or quality
regulations (non-tariff barriers). All
countries practice protectionism in one
form or another but, generally, without
going to any extreme.

BSEC Road Transport

Market

BSEC Foreign Trade

Intra-regional Competition
Shrinking

market = harsher
direct and substitute competition
(compatriot + foreign)
Less freight = less revenues
Less trade = more costs (idle
capacity)
Stressed economy = stressed
creditors = higher interest,
impatient banks

Inter-regional Competition
Shrinking

EU market
Rising neo-protectionism
Plunging Economys Evil Cycle:
- Trade => - Production => +Unemployment
+ Neo-Protectionism => + Transport Costs =>
- Trade

BSEC-URTA Bucharest Resolution

on EU Competition
Strongly against artificial means of discrimination under the
umbrella of fighting against the social dumping.

Cost of such non-tariff barriers poses an inevitable increase in the

cost of transport, and hence the price of goods at stake, which is
ultimately paid by the EU citizens.

Increased transport costs equal with increased production costs

and higher unemployment in the EU, which endangers the quality
of life of the European citizens, directly.

Ask for harmonized framework to ensure a level playing field for

EU and BSEC hauliers not only on social matters, but in all other
relevant economic and financial matters.

Decision Makers Main Dilemma

Short sightedness = populism
Populism = short sightedness
Real solution for fair competition:
= +Trade = +Production =
-Unemployment

For more trade:

= -Tax // +Incentives // -Transport Costs
= No protectionism.

Thank you!
www.bsec-urta.org