Member

These broad and overreaching powers will create an environment of uncertainty, and the business climate will be negatively affected as companies may be reluctant to innovate or expand their operations if they fear arbitrary inspections and product seizures. As businesses divert resources from innovation and growth to compliance and legal defence, the economy will suffer. We believe that investors will be more hesitant to invest in markets where the regulatory environment is unclear and businesses are at risk of having their products arbitrarily seized or destroyed. The result will be a decline in competition, a stagnation in product development and, ultimately, higher costs for consumers as market dynamics are stifled.