DOHA: The economy ministry’s clarification about a 13-year-old law that restricts trade monopolies and allows non-agents to import new cars for sale has sent cheers in trade and industry circles.
But some wonder why the law is being applied only to automobile trade and not the consumer goods sector and medicines which are expensive and have exclusive dealers. Because of the clarification by the Ministry of Economy and Commerce new cars are expected to be 25 to 30 percent cheaper, says a prominent businessman.
According to the clarification, non-agents can also import from overseas new automobiles for sale from sources other than manufacturers. An end to exclusive dealers’ monopoly over automobile imports and fair competition in the local market would lead to a fair reduction in the prices of new cars.
Mohamed Kazim Al Ansari, a former board member of Qatar Chamber (QC), representative body of the private sector, said allowing non-agents to import new cars would give a wider choice to buyers. “It would mean cheaper cars for users,” he said in remarks published by local Arabic daily Al Raya yesterday.
Non-agents must, however, have valid licence to import new cars for sale in the local market.
Another businessman, Ali Al Khalaf, said that to compete, non-agents in the automobile trade must ensure they provide warranties and the mandatory after-sales services.
Former QC vice-chairman Abdulaziz Al Emadi wondered why the law that restricts monopolistic business practices was being applied to only the automobile trade. There are consumer goods whose exclusive agencies are operating in Qatar and the goods are expensive in Qatar compared to neighbouring GCC states, he said.
Al Eamdi cited medicines and said they were the most expensive in Qatar compared to neighbouring states because their dealerships here were a monopoly. The market for medicines must also be made free and non-agents whose names appear in the import register should be allowed to import them as has been done in respect of the auto trade.
If competition is allowed in the pharmaceutical trade and importers with valid licence are free to get medicines for sale from abroad, it would lead to a drastic reduction in the prices of medicines, said Al Emadi.
Businessmen point out many reasons for consumer prices being quite high in Qatar: The market is small, people have high purchasing power, commercial property rents are high and labour is expensive. They said the application of the anti-monopolies law to the consumer sector and pharmaceuticals would help slash prices.
The Peninsula
