restrictive trade agreement
restrictive trade agreementan agreement entered into by two or more suppliers of a product which contains restrictions relating to such matters as prices, terms and conditions of supply, restrictions on the type of persons or businesses supplied etc. Such agreements, while conferring advantages to those firms party to them (for example enabling them to charge higher prices), may serve to limit or suppress competition in a market to the detriment of other suppliers and to the buying public. Restrictive trade agreements are prohibited by the COMPETITION ACT, 1998. See COLLUSION, CARTEL, CONCERTED PRACTICE.
The term restrictive trade agreement can be used also for an agreement entered into between a supplier and his distributors if it contains restrictions (for example EXCLUSIVE DEALING provisions) which deprive other suppliers of access to distribution outlets. See COLLUSION, CARTEL, RESTRICTIVE TRADE PRACTICES ACTS (1956,1968,1976).