Colombian Competition Authority Imposed Historical Fines in the Sugar Sector by an Anticompetitive Agreement to Impede Imports

April 7, 2016

Colombian Competition Authority Imposed Historical Fines in the Sugar Sector by an Anticompetitive Agreement to Impede Imports – Aura María García Pabón & Juan Pablo Herrera Saavedra¹ (Colombian Competition Authority, SIC)

Intro by Iratxe Gurpegui (OECD, Competition Expert)².

With its decision of 6 October 2015, the Colombian competition authority (SIC) has sent a clear message to companies active in the highly protected agricultural sector. The SIC imposed the highest total fine on companies participating in a cartel agreement in the sugar sector. The SIC has also made it clear that, despite not been able to intervene in relation to funds initially designed to stabilize prices in the agricultural sector, it is not acceptable that they allow unjustified anticompetitive conducts.

According to the International Sugar Organization, Colombia is the 14^th most important producer of sugar in the world, representing 1.4% of the worldwide production. The sugar sector in Colombia has been one of the most protected agricultural sectors by the government. In 2001, the country adopted a mechanism to stabilize prices through a centralized fund (Fondo de Estabilización de Precios del Azúcar, FEPA).

The main trade partners of Colombia are Brazil, Peru, Bolivia, Chile and the USA. Nevertheless, this has changed over the time, especially during the last decade. For example, Bolivia went from representing 90% of the total sugar imports of Colombia in 2009, to 0% in 20