A man walks past a supermarket that has been set on fire in Noumea, New Caledonia, on May 24, 2024. The crises are conducive to excesses, and the one that has been affecting New Caledonia since May 13 does not seem to be an exception. This was indicated by a statement from the Competition Authority, released in early August, announcing an investigation into suspicions of collusion among operators aiming to form importation monopolies. The Authority is particularly vigilant about ensuring that the restructuring of the economic landscape benefits all New Caledonians and does not create opportunities for some to further enlarge, which could harm consumers.
The investigation is taking place against a backdrop of significant impoverishment, with nearly one in four employees currently unemployed and local governments struggling to finance a large number of social aid programs due to insufficient tax revenues. A local producer in New Caledonia dismissed the concerns raised by the Competition Authority, stating that everything started from a government-initiated meeting to discuss support for industrial businesses affected by the recent unrest. The idea emerged to allocate import quotas to local producers to enable them to substitute imported products with their own production, causing opposition from the Importers and Distributors Syndicate (SID).
The SID argues that there is a lack of transparency in this project, which could lead to the creation of cartels benefiting from additional advantages, and expresses concerns about the government’s intention to resort to legislative measures to implement the quotas. Currently, the allocation of these import quotas would be illegal under existing regulations. The SID emphasizes the need for a good supply of the market to prevent potential food riots in the coming months, as some businesses are struggling with shortages and lack of consumers. The SID advocates for fair and transparent practices to ensure the stability and availability of essential goods in the market.
The economic challenges faced by New Caledonia have exacerbated tensions and led to disagreements between stakeholders on how to address the issues of import monopolies and market access. The Authorization of the Competition Authority’s investigation highlights the need for careful oversight and regulation to prevent unfair market practices and safeguard consumer interests. The economic crisis, compounded by social unrest and political disagreements, has heightened the urgency for constructive dialogue and collaboration among all parties involved in order to find sustainable solutions to the economic challenges facing New Caledonia.
The government’s proposed measures to allocate import quotas to local producers have sparked debate and criticism, with concerns raised about potential repercussions on the market and distribution of goods. It is essential for a balanced approach to be adopted that takes into account the needs of both local producers and importers to ensure a fair and competitive market environment that benefits all stakeholders. Transparency and collaboration will be crucial in navigating the complex economic landscape of New Caledonia and overcoming the challenges posed by the current crisis. It is imperative for all parties to work together towards shared goals of economic recovery and stability.
