The article asks if the lowering of the tariff on imported cement will be able to stimulate competition in the domestic cement industry (with its alleged cartel). The paper argues that while the elimination of trade barriers is a necessary condition, it is not sufficient to generate effective competition if firms can successfully engage in anti-competitive practices. To effectively discipline domestic firms with collusive tendencies, trade liberalization must be accompanied by strict competition policy, which becomes all the more important in the presence of international cement cartels.
