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EXPORT CARTELS : A Developing Country Perspective

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  • Aditya Bhattacharjea

    (Delhi School of Economics)

Abstract

Export cartels are exempted from the competition laws of most countries. While some scholars and several WTO members have recently condemned such cartels, others have argued that they allow efficiency gains that actually promote competition and trade. This paper examines the various issues involved, with special reference to developing countries and to recent discussions on trade and competition policy. After summarising the contending views on export cartels, and also the scanty theoretical literature on the subject, it reviews the treatment of such cartels in various jurisdictions and the limited empirical evidence that is available on their prevalence, efficiency justifications, and effects on international trade. Insights from economic theory are then applied to the arguments for and against export cartels, suggesting criteria that could help to determine their validity and an importing country’s best response. The paper concludes that while importing countries should evaluate foreign export cartels under a “rule of reason”, most of them will be constrained by a lack of technical expertise and limited enforcement capacity. It suggests a novel approach, based on parallels with anti-dumping procedures, which would strengthen their hands.

Suggested Citation

  • Aditya Bhattacharjea, 2004. "EXPORT CARTELS : A Developing Country Perspective," Working papers 120, Centre for Development Economics, Delhi School of Economics.
  • Handle: RePEc:cde:cdewps:120
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    File URL: http://www.cdedse.org/pdf/work120.pdf
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    References listed on IDEAS

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    Cited by:

    1. Bernard Hoekman & Kamal Saggi, 2018. "Tariff bindings and bilateral cooperation on export cartels," World Scientific Book Chapters, in: Kamal Saggi (ed.), Economic Analysis of the Rules and Regulations of the World Trade Organization, chapter 12, pages 283-298, World Scientific Publishing Co. Pte. Ltd..

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    More about this item

    Keywords

    antitrust; competition policy; trade negotiations; WTO.;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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