Market Studies
The OFT actively investigates markets that do not appear to be meeting the needs of consumers and publishes the results of these inquiries.Some inquiries will be in response to super-complaints, a route for designated consumer bodies to bring complaints to the attention of the OFT.Market studies will be in areas where there are concerns that a particular market is not working well for consumers but where competition or consumer regulation enforcement action does not appear, immediately, to be the appropriate response. The studies will involve probing examinations of markets, practices and regulation to explore whether the needs of consumers are being well served. These will be exploratory studies to gain the best possible understanding of how markets are working. If a study reveals the need for further investigation or action under any of our enforcement powers, we will act accordingly.The Barker Review ('Delivering stability: Securing our future housing needs') recommends that the OFT should in certain circumstances undertake a market study on new housing.Possible results of market studies include:
enforcement action by the OFT
a reference of the market to the Competition Commission
recommendations for changes in laws and regulations
recommendations to regulators, self-regulatory bodies and others to consider changes to their rules
campaigns to promote consumer education and awareness
a clean bill of health.
Saturday, June 9, 2007
World Trading Datas and Statistics
World Trading Datas and Statistics
Stronger industrial activity was mirrored in world trade.Merchandise trade growth grew 11.0 percent during the first eight months of 2006, up from 6 percent the year before.Most of the acceleration occurred in the China, Japan and the United States and was concentrated in the first quarter.Weaker U.S. consumption and investment demand, and growing domestic demand in the developing world combined with the lagged effects of past depreciations to boost U.S. export volumes by an annualized rate of 13 percent in the first half of 2006, compared with 7 percent in the last half of 2005.Measured on the same basis and over the same period, exports in Japan and China increased by 10 and 30 percent, respectively.Trade flows weakened in the second quarter but show signs of picking up once again in the third quarter.Over the medium term, growth in merchandise trade volumes is projected to ease to about 9 percent, in line with slower global GDP growth.The recent relative strength of U.S. export volumes is projected to persist.
Those volumes are projected to rise by more than 9 percent in 2007 and 2008 as the cumulative effect of past and expected future depreciations increase the international competitiveness of U.S. products.
For developing countries, weaker U.S. import demand should be partially compensated by stronger demand from Europe, but, overall, developing-country export growth is projected to slow from an estimated 12.2 percent in 2006 to 10 percent in 2008, even as countries continue to increase their market share.Developing-country trade reached a landmark in 2006. Following 25 years of solid growth, the value of China’s exports overtook those of the United States, making it the world’s second-largest exporter.Increasing exports in other developing countries, notably Brazil and India, have further increased the weight of developing countries in world trade.
Over the long term, as these trends continue, the share of developing countries in world trade is projected to reach some 45 percent by 2030 (see chapter 2).
While the phenomenal success that China has enjoyed in expanding its world market share since the introduction of market reforms has increased competitive pressure on both developing and developed countries (see chapter 4), Chinese imports also have grown very rapidly (up 477 percent in value terms over the past decade), and China is a growing destination for the exports of other developing countries (Dimaranan, Ianchovichina, and Martin 2006).
Sixty-three percent of China’s imports are intermediate goods, 31 percent in the form of parts and components.
Overall, 79 percent of China’s imports are sourced from developing countries. Partly as a result of China’s rapid increase in imports, the value of other developing countries non-oil exports has risen by 153 percent, and their global market share has increased by 2.3 percentage points.
In addition to these direct effects, the expansion of developing-country commerce means that these countries are increasingly becoming privileged destinations for FDI, both as an export platform for multinational companies, and because they represent the fastest-growing market segment.
The extent to which other developing countries will be able to take advantage of the expected continued strong growth of China and India (see chapter 2) will depend on their ability to expand exports.
This requires eliminating the anti-export bias in their incentive framework, reducing costs of produced services, and improving customs procedures that undermine competitiveness.
It also requires investments in transport systems to reduce transit times (Newfarmer 2005) and in other forms of infrastructure, such as electrical generators. so as to facilitate the expansion of capacity.
In addition, as discussed in chapter 4, countries need to reduce rigidities in product, labor, and financial markets so that firms can react with agility to new opportunities to expand the range of products they produce and sell.
On the multilateral front, the suspension of talks on the Doha Round in July 2006 poses significant challenges.
Weakened confidence in the multilateral system could lead to trade disputes, rising protectionist sentiment, and trade diversion arising from proliferating bilateral and regional trade agreements.
To capitalize on progress already made in the Doha Round, such as the offer to end agricultural export subsidies by 2013, it is important that parties return to the negotiating table with the necessary flexibility to conclude an ambitious deal.
Stronger industrial activity was mirrored in world trade.Merchandise trade growth grew 11.0 percent during the first eight months of 2006, up from 6 percent the year before.Most of the acceleration occurred in the China, Japan and the United States and was concentrated in the first quarter.Weaker U.S. consumption and investment demand, and growing domestic demand in the developing world combined with the lagged effects of past depreciations to boost U.S. export volumes by an annualized rate of 13 percent in the first half of 2006, compared with 7 percent in the last half of 2005.Measured on the same basis and over the same period, exports in Japan and China increased by 10 and 30 percent, respectively.Trade flows weakened in the second quarter but show signs of picking up once again in the third quarter.Over the medium term, growth in merchandise trade volumes is projected to ease to about 9 percent, in line with slower global GDP growth.The recent relative strength of U.S. export volumes is projected to persist.
Those volumes are projected to rise by more than 9 percent in 2007 and 2008 as the cumulative effect of past and expected future depreciations increase the international competitiveness of U.S. products.
For developing countries, weaker U.S. import demand should be partially compensated by stronger demand from Europe, but, overall, developing-country export growth is projected to slow from an estimated 12.2 percent in 2006 to 10 percent in 2008, even as countries continue to increase their market share.Developing-country trade reached a landmark in 2006. Following 25 years of solid growth, the value of China’s exports overtook those of the United States, making it the world’s second-largest exporter.Increasing exports in other developing countries, notably Brazil and India, have further increased the weight of developing countries in world trade.
Over the long term, as these trends continue, the share of developing countries in world trade is projected to reach some 45 percent by 2030 (see chapter 2).
While the phenomenal success that China has enjoyed in expanding its world market share since the introduction of market reforms has increased competitive pressure on both developing and developed countries (see chapter 4), Chinese imports also have grown very rapidly (up 477 percent in value terms over the past decade), and China is a growing destination for the exports of other developing countries (Dimaranan, Ianchovichina, and Martin 2006).
Sixty-three percent of China’s imports are intermediate goods, 31 percent in the form of parts and components.
Overall, 79 percent of China’s imports are sourced from developing countries. Partly as a result of China’s rapid increase in imports, the value of other developing countries non-oil exports has risen by 153 percent, and their global market share has increased by 2.3 percentage points.
In addition to these direct effects, the expansion of developing-country commerce means that these countries are increasingly becoming privileged destinations for FDI, both as an export platform for multinational companies, and because they represent the fastest-growing market segment.
The extent to which other developing countries will be able to take advantage of the expected continued strong growth of China and India (see chapter 2) will depend on their ability to expand exports.
This requires eliminating the anti-export bias in their incentive framework, reducing costs of produced services, and improving customs procedures that undermine competitiveness.
It also requires investments in transport systems to reduce transit times (Newfarmer 2005) and in other forms of infrastructure, such as electrical generators. so as to facilitate the expansion of capacity.
In addition, as discussed in chapter 4, countries need to reduce rigidities in product, labor, and financial markets so that firms can react with agility to new opportunities to expand the range of products they produce and sell.
On the multilateral front, the suspension of talks on the Doha Round in July 2006 poses significant challenges.
Weakened confidence in the multilateral system could lead to trade disputes, rising protectionist sentiment, and trade diversion arising from proliferating bilateral and regional trade agreements.
To capitalize on progress already made in the Doha Round, such as the offer to end agricultural export subsidies by 2013, it is important that parties return to the negotiating table with the necessary flexibility to conclude an ambitious deal.
Proper Trading Knowledge and Business
Proper Trading Knowledge and Business
A business related to proper trading knowledgeOnce your business is up and running, you will need to be aware of the laws that govern fair trading in the day-to-day operation of your business. This is not as onerous as you may think, because our fair trading laws are a two-way street. They also recognise the fact that traders as well as consumers can suffer from unfair operators. The laws are reviewed from time-to-time to ensure competition and fairness in the marketplace and businesses and industry associations are invited to comment on proposed changes.Many of the NSW Government's fair trading laws are the same as in other states and countries around the world. These laws reflect the United Nations Guidelines for Consumer Protection which recognise the 'eight consumer rights' developed by Consumers International. These rights include the right to information, choice, safety, representation, redress and consumer education.The main law covering business behaviour in NSW is the Fair Trading Act 1987.Under the Act, amongst other things, it is unlawful to:
make false claims about a product or service
operate in a misleading or deceptive way, or in a way that is likely to mislead or deceive your customers. You are required to tell the truth to your customers and not hide any relevant information. This also includes advertising your business.
take unfair advantage of vulnerable customers, which is also known as unconscionable conduct. This may occur where customers have no alternative than to do business with you (for example, you may be the only shop in a country town) or where you have a product or service that is in high demand, and you abuse your bargaining power. A common example of this is where customers are pressured to sign a contract that they can't understand and which includes unfair conditions.A good way to check whether you are engaging in unconscionable conduct is to ask yourself - is there any significant difference in what my customers pay and the way they are treated compared to businesses in similar situations? (think of location, product/service, sales tactics and customers). If there is, then you need to think whether the differences are justified. It could be that you offer other benefits to your customers.The Fair Trading Act gives the government a number of options to enforce the law and empowers the courts to punish those who have broken it.These include:
an enforceable undertaking. This is a legally-binding agreement to do certain things so that you comply with the law
an injunction to stop you continuing to do something which breaks the law. For example, you may have to cancel booked advertisements that have been considered to be misleading under the Act
a public warning notice
prosecution through the courts
financial penalties
a notice to place corrective advertising. For example, you may be required to place an advertisement in a major paper that gives customers certain information about your business such as fees not disclosed in previous advertisements
freezing of bank accounts
referral of complaints to other authorities or bodies.Consumers and businesses also have a right to compensation through the courts for any loss or damage that occurs due to the law being broken.
Running a business, you should be aware that Federal laws will also have a bearing on your operations. One of the most important Federal laws is the Trade Practices Act 1974 which complements the NSW Fair Trading Act.
The consumer protection/fair trading provisions of the Trade Practices Act and the Fair Trading Act are virtually the same - the Fair Trading Act is used within NSW while the Trade Practices Act may be used for NSW, national or cross-border issues.
The Trade Practices Act also provides protection for consumers against unfair practices by prohibiting anti-competitive or restrictive behaviour that lead to consumer problems.
The Trade Practices Act is administered by the Australian Competition and Consumer Commission (ACCC) which also looks at prices surveillance (are the prices customers pay, reasonable?) and strategies to prevent marketplace failure (where key industries are not delivering proper benefits for their customers).
The ACCC can be contacted on 1300 302 502.
Codes of practice and service chartersCodes of practice and service charters are guidelines for fair dealing between you and your customers. What they do is let your customers know what you as a business agree to do when dealing with them. Sometimes they relate to a single business. At other times they can represent a whole industry.
Codes of Practice and Service Charters can assure customers that your business is trading fairly and ethically. The Office of Fair Trading has already endorsed several voluntary codes of practice developed in consultation with different industry groups. These codes have resulted in better customer/trader relations by establishing agreed minimum standards of behaviour and conduct for handling various trading situations.
Service charters, on the other hand, are usually created on a business by business basis and give certain guarantees to customers about the service levels that they can expect and what will happen if they are not met. Areas identified in service charters are those of importance to customers.
If you decide to adopt a service charter or a code of practice, the most important thing to remember is that they are active documents. In other words, customers and the government expect you to live by the code or charter and not to simply launch it and forget about it. The code or charter is your written promise to the world about how your business deals with customers, not just a vague motto.
A business related to proper trading knowledgeOnce your business is up and running, you will need to be aware of the laws that govern fair trading in the day-to-day operation of your business. This is not as onerous as you may think, because our fair trading laws are a two-way street. They also recognise the fact that traders as well as consumers can suffer from unfair operators. The laws are reviewed from time-to-time to ensure competition and fairness in the marketplace and businesses and industry associations are invited to comment on proposed changes.Many of the NSW Government's fair trading laws are the same as in other states and countries around the world. These laws reflect the United Nations Guidelines for Consumer Protection which recognise the 'eight consumer rights' developed by Consumers International. These rights include the right to information, choice, safety, representation, redress and consumer education.The main law covering business behaviour in NSW is the Fair Trading Act 1987.Under the Act, amongst other things, it is unlawful to:
make false claims about a product or service
operate in a misleading or deceptive way, or in a way that is likely to mislead or deceive your customers. You are required to tell the truth to your customers and not hide any relevant information. This also includes advertising your business.
take unfair advantage of vulnerable customers, which is also known as unconscionable conduct. This may occur where customers have no alternative than to do business with you (for example, you may be the only shop in a country town) or where you have a product or service that is in high demand, and you abuse your bargaining power. A common example of this is where customers are pressured to sign a contract that they can't understand and which includes unfair conditions.A good way to check whether you are engaging in unconscionable conduct is to ask yourself - is there any significant difference in what my customers pay and the way they are treated compared to businesses in similar situations? (think of location, product/service, sales tactics and customers). If there is, then you need to think whether the differences are justified. It could be that you offer other benefits to your customers.The Fair Trading Act gives the government a number of options to enforce the law and empowers the courts to punish those who have broken it.These include:
an enforceable undertaking. This is a legally-binding agreement to do certain things so that you comply with the law
an injunction to stop you continuing to do something which breaks the law. For example, you may have to cancel booked advertisements that have been considered to be misleading under the Act
a public warning notice
prosecution through the courts
financial penalties
a notice to place corrective advertising. For example, you may be required to place an advertisement in a major paper that gives customers certain information about your business such as fees not disclosed in previous advertisements
freezing of bank accounts
referral of complaints to other authorities or bodies.Consumers and businesses also have a right to compensation through the courts for any loss or damage that occurs due to the law being broken.
Running a business, you should be aware that Federal laws will also have a bearing on your operations. One of the most important Federal laws is the Trade Practices Act 1974 which complements the NSW Fair Trading Act.
The consumer protection/fair trading provisions of the Trade Practices Act and the Fair Trading Act are virtually the same - the Fair Trading Act is used within NSW while the Trade Practices Act may be used for NSW, national or cross-border issues.
The Trade Practices Act also provides protection for consumers against unfair practices by prohibiting anti-competitive or restrictive behaviour that lead to consumer problems.
The Trade Practices Act is administered by the Australian Competition and Consumer Commission (ACCC) which also looks at prices surveillance (are the prices customers pay, reasonable?) and strategies to prevent marketplace failure (where key industries are not delivering proper benefits for their customers).
The ACCC can be contacted on 1300 302 502.
Codes of practice and service chartersCodes of practice and service charters are guidelines for fair dealing between you and your customers. What they do is let your customers know what you as a business agree to do when dealing with them. Sometimes they relate to a single business. At other times they can represent a whole industry.
Codes of Practice and Service Charters can assure customers that your business is trading fairly and ethically. The Office of Fair Trading has already endorsed several voluntary codes of practice developed in consultation with different industry groups. These codes have resulted in better customer/trader relations by establishing agreed minimum standards of behaviour and conduct for handling various trading situations.
Service charters, on the other hand, are usually created on a business by business basis and give certain guarantees to customers about the service levels that they can expect and what will happen if they are not met. Areas identified in service charters are those of importance to customers.
If you decide to adopt a service charter or a code of practice, the most important thing to remember is that they are active documents. In other words, customers and the government expect you to live by the code or charter and not to simply launch it and forget about it. The code or charter is your written promise to the world about how your business deals with customers, not just a vague motto.
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