Indeed, there is not at present any evidence that the liner conference sector needs to be protected from competition in order to provide its services.

The exemption from competition rules for liner conferences is a relic of the past.

Price-fixing by liner conferences actually results in higher prices for exporters.

During the 1970s, a number of attempts were made to develop laws in particular areas such as liner conferences, the environment and pilotage.

One of the most controversial topics is the application of competition law to maritime transport and, in particular, liner conferences.

The Commission is very pleased with the report’s recognition that price- fixing liner conferences are no longer justified in today’s market conditions, either legally or economically.

Many other countries such as Singapore, Japan and China, in an effort to prevent destructive competition, are allowing price-setting immunity of liner conferences.

Roughly 18% of imports and 21% of EU exports are affected by carriers’ ability to fix prices jointly under the liner conference block exemption.

It is abolishing the exemption, granted in 1986, of liner conferences from the competition rules that, alone, has been the subject of genuinely bitter discussions between all the players in this sector.

Between 1986 and 2006, the EC had a special regime exempting many liner conferences from the application of the prohibition on anti-competitive arrangements (i.e. Article 81 of the EC Treaty).

We are aware that liner conferences are tolerated in other jurisdictions and have engaged in bilateral contacts so as to ensure that our partners are aware of whatever changes are brought to our legislation.

There is a general acknowledgement that the repeal of the liner conference block exemption by the EU will not cause conflicts of law with third countries and that it is a process that responds to today’s market conditions.

In view of the two-year transitional period, the guidelines will be in place before the repeal of the liner conference block exemption takes effect, thus giving industry ample time to adjust to a new competitive environment in the knowledge that what it seeks to do is lawful.

As has already been said, the exemption for liner conferences has traditionally given balance to the maritime sector, but it is also true that the decline in conferences has been made obvious by the figures on individual shipments – the 1994 law – and by the appearance of effective and independent major carriers.