Working Party 3 on Co-operation and Enforcement, OECD
Roundtable on National Security
Considerations in Competition Enforcement
Tohoku University
Prof. Daisuke KORENAGA
• Economy and national security are inextricably linked
The structural vulnerabilities embedded in the global supply chains of critical materials (e.g., minerals, energy, food)
An increasing number of states are tightening export controls to prevent the transfer of sensitive technologies.
Wars and domestic conflicts have triggered sharp increases in commodity prices and geopolitical imbalances.
There is an urgent necessity to construct a highly autonomous economic structure.
Japan’s National Security Strategy (2022)
Strategic Autonomy Strategic Indispensability
• Avoid excessive dependence
• Diversify procurement sources
• Secure true resilience
• Establish irreplaceability in global industry
• Serves as a strategic deterrent
• Use exclusively for self-defense
Promotion of International Order
• Sustain collaboration with the global community
• Be based on fundamental values and rules
full-supply agreement for molybdenum-99
• In the past, Y had faced significant price increases from Nordion.
• Y planned to procure molybdenum-99 from multiple sources.
• Y was negotiating with IRE to conclude a transaction agreement.
• Nordion proposed entering into an exclusive purchasing agreement.
• Y repeatedly requested a nonexclusive agreement.
• Nordion refused to accept the request.
• Y ultimately decided to sign the exclusive purchasing agreement.
approval of mergers with high market shares preferential government treatment
Consumer Welfare Level
Playing Field
• Incentives for firms to invest in innovation diminish.
• Market structures lead to predictable economic inefficiencies.
• Other efficient firms face a relative disadvantage.
• Selective support significantly increases the risk of crowding out.
• Companies allocate critical resources to political lobbying and rent-seeking to secure state protection
Thank you for your kind attention.