Recently, the Executive Yuan handed over a draft version of the Fair Trade Bill to the Legislative Yuan for three readings before it can become law.
The stated purpose of the Bill is to maintain order in trading in order to ensure the continuity of fair competition and promote stability and prosperity in the national economy. In this study, we attempt to give an overall evaluation of the Bill from an economic perspective. Attention is focused on the enforcibility, the degree of fair competition between state-owned and private enterprises, the legal status and membership of the Fair Trade Committee, and the approriateness of criminal penalties. After pointing out the apparent shortcomings, we have recommended changes which we believe are necessary.
