IDEAS home Printed from https://ideas.repec.org/a/spr/minecn/v32y2019i2d10.1007_s13563-018-0161-z.html
   My bibliography  Save this article

Trade restrictions on minerals and metals

Author

Listed:
  • Jane Korinek

    (Organisation for Economic Co-operation and Development (OECD))

Abstract

Import tariffs and export taxes that are imposed on products far upstream in global supply chains increase trade costs strongly since they are applied on products that will most likely be traded many times before they are sold for final consumption. This paper examines the export and import restrictions in place on minerals and metals. This paper provides a backdrop to the recent trade restrictions on minerals and metals. This issue has had much resonance lately since the United States imposed import tariffs of 25% on steel and 10% on aluminium from some major producing countries. The use of export restrictions by producers of minerals and metals is increasing. Moreover, once export restricting measures are in place, they are rarely lifted. Export taxes on minerals and metals can be high, and some are prohibitively high. High export taxes negatively affect exports by countries that impose them. Import policies are very different to those that apply to exports: in major markets for minerals and metals, import tariffs have been substantially lower on average compared with the export taxes imputed by producing countries. Eight successive rounds of multi-lateral trade negotiations have taken place since 1947, resulting in fairly low import tariffs with many countries having bound their tariffs, i.e. pledged not to raise them above an agreed maximum, at successively lower levels. Export taxes are not subjected to multi-lateral oversight. Trade restrictions are used particularly frequently on metallic waste and scrap, which is generated either as a by-product of the mining and refining process or from recycled goods. Since recovered materials can re-enter the production cycle as inputs, trade restrictions pose a particular challenge to the aim of decoupling industrial production from resource use, which is deemed necessary to achieve compliance with the 2030 Agenda and Sustainable Development Goals (SDGs).

Suggested Citation

  • Jane Korinek, 2019. "Trade restrictions on minerals and metals," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 32(2), pages 171-185, July.
  • Handle: RePEc:spr:minecn:v:32:y:2019:i:2:d:10.1007_s13563-018-0161-z
    DOI: 10.1007/s13563-018-0161-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13563-018-0161-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s13563-018-0161-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wyatt Thompson & Grégoire Tallard, 2010. "Potential Market Effects of Selected Policy Options in Emerging Economies to Address Future Commodity Price Surges," OECD Food, Agriculture and Fisheries Papers 35, OECD Publishing.
    2. Will Martin & Kym Anderson, 2012. "Export Restrictions and Price Insulation During Commodity Price Booms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(2), pages 422-427.
    3. Hofmann,Claudia & Osnago,Alberto & Ruta,Michele, 2017. "Horizontal depth : a new database on the content of preferential trade agreements," Policy Research Working Paper Series 7981, The World Bank.
    4. Rutten, Martine & Shutes, Lindsay & Meijerink, Gerdien, 2013. "Sit down at the ball game: How trade barriers make the world less food secure," Food Policy, Elsevier, vol. 38(C), pages 1-10.
    5. Kym Anderson & Maros Ivanic & William J. Martin, 2014. "Food Price Spikes, Price Insulation, and Poverty," NBER Chapters, in: The Economics of Food Price Volatility, pages 311-339, National Bureau of Economic Research, Inc.
    6. Annelies Deuss, 2017. "Impact of agricultural export restrictions on prices in importing countries," OECD Food, Agriculture and Fisheries Papers 105, OECD Publishing.
    7. Headey, Derek, 2011. "Rethinking the global food crisis: The role of trade shocks," Food Policy, Elsevier, vol. 36(2), pages 136-146, April.
    8. Piermartini, Roberta, 2004. "The role of export taxes in the field of primary commodities," WTO Discussion Papers 4, World Trade Organization (WTO), Economic Research and Statistics Division.
    9. Tanaka, Tetsuji & Hosoe, Nobuhiro, 2011. "Does agricultural trade liberalization increase risks of supply-side uncertainty?: Effects of productivity shocks and export restrictions on welfare and food supply in Japan," Food Policy, Elsevier, vol. 36(3), pages 368-377, June.
    10. Jane Korinek & Jessica Bartos, 2012. "Multilateralising Regionalism: Disciplines on Export Restrictions in Regional Trade Agreements," OECD Trade Policy Papers 139, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Steinfatt, Karsten, 2020. "Trade policies for a circular economy: What can we learn from WTO experience?," WTO Staff Working Papers ERSD-2020-10, World Trade Organization (WTO), Economic Research and Statistics Division.
    2. Marc Schmid, 2021. "The Revised German Raw Materials Strategy in the Light of Global Political and Market Developments," Review of Policy Research, Policy Studies Organization, vol. 38(1), pages 49-75, January.
    3. Katarzyna Guzik & Krzysztof Galos & Alicja Kot-Niewiadomska & Toni Eerola & Pasi Eilu & Jorge Carvalho & Francisco Javier Fernandez-Naranjo & Ronald Arvidsson & Nikolaos Arvanitidis & Agnes Raaness, 2021. "Potential Benefits and Constraints of Development of Critical Raw Materials’ Production in the EU: Analysis of Selected Case Studies," Resources, MDPI, vol. 10(7), pages 1-36, June.
    4. Abdelaaziz Ait Ali & Mohammed Al Doghan & Muhammad Bhatti & Carlos Braga & Uri Dadush & Abdulelah Darandary & Anabel González & Niclas Poitiers, 2020. "How the World Trading System Promotes and Impedes the Diversification of Developing Countries," Research papers & Policy papers 1930, Policy Center for the New South.
    5. Ewa Lewicka & Katarzyna Guzik & Krzysztof Galos, 2021. "On the Possibilities of Critical Raw Materials Production from the EU’s Primary Sources," Resources, MDPI, vol. 10(5), pages 1-21, May.
    6. Jack Barrie & Patrick Schröder, 2022. "Circular Economy and International Trade: a Systematic Literature Review," Circular Economy and Sustainability,, Springer.
    7. Gedam, Vidyadhar V. & Raut, Rakesh D. & Lopes de Sousa Jabbour, Ana Beatriz & Agrawal, Nishant, 2021. "Moving the circular economy forward in the mining industry: Challenges to closed-loop in an emerging economy," Resources Policy, Elsevier, vol. 74(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anania, Giovanni, 2013. "Agricultural Export Restrictions and the WTO: What Options Do Policy-Makers Have For Promoting Food Security?," Price Volatility and Beyond 320191, International Centre for Trade and Sustainable Development (ICTSD).
    2. Estrades, Carmen, 2015. "The Role of Export Restrictions in Agriculture Trade," 2015: Trade and Societal Well-Being, December 13-15, 2015, Clearwater Beach, Florida 229229, International Agricultural Trade Research Consortium.
    3. Paolo E. Giordani & Nadia Rocha & Michele Ruta, 2012. "Food Prices and the Multiplier Effect of Export Policy," CESifo Working Paper Series 3783, CESifo.
    4. Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci & Luca Salvatici, 2017. "Agricultural (Dis)Incentives and Food Security: Is There a Link?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(4), pages 847-871.
    5. Rutten, Martine & Shutes, Lindsay & Meijerink, Gerdien, 2013. "Sit down at the ball game: How trade barriers make the world less food secure," Food Policy, Elsevier, vol. 38(C), pages 1-10.
    6. Hans G. Jensen & Kym Anderson, 2017. "Grain Price Spikes and Beggar-thy-Neighbor Policy Responses: A Global Economywide Analysis," The World Bank Economic Review, World Bank Group, vol. 31(1), pages 158-175.
    7. Giordani, Paolo E. & Rocha, Nadia & Ruta, Michele, 2016. "Food prices and the multiplier effect of trade policy," Journal of International Economics, Elsevier, vol. 101(C), pages 102-122.
    8. Sartori, Martina & Schiavo, Stefano, 2015. "Connected we stand: A network perspective on trade and global food security," Food Policy, Elsevier, vol. 57(C), pages 114-127.
    9. Karapinar, Baris & Tanaka, Tetsuji, 2013. "How to Improve World Food Supply Stability Under Future Uncertainty: Potential Role of WTO Regulation on Export Restrictions in Rice," 135th Seminar, August 28-30, 2013, Belgrade, Serbia 160387, European Association of Agricultural Economists.
    10. Michele Ruta & Anthony J. Venables, 2012. "International Trade in Natural Resources: Practice and Policy," Annual Review of Resource Economics, Annual Reviews, vol. 4(1), pages 331-352, August.
    11. Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci & Luca Salvatici, 2014. "Agricultural Trade Policies and Food Security: Is there a Causal Relationship?," Working Papers 9/14, Sapienza University of Rome, DISS.
    12. Vasilii Erokhin & Tianming Gao, 2020. "Impacts of COVID-19 on Trade and Economic Aspects of Food Security: Evidence from 45 Developing Countries," IJERPH, MDPI, vol. 17(16), pages 1-28, August.
    13. Magrini, Emiliano & Montalbano, Pierluigi & Nenci, Silvia & Salvatici, Luca, 2014. "Agricultural trade distortions during recent international price spikes: what implications for food security?," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182726, European Association of Agricultural Economists.
    14. Elleby, Christian, 2014. "Poverty and Price Transmission," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182722, European Association of Agricultural Economists.
    15. Tangermann, Stefan, 2011. "Risk Management in Agriculture and the Future of the EU's Common Agricultural Policy," National Policies, Trade and Sustainable Development 320171, International Centre for Trade and Sustainable Development (ICTSD).
    16. Christiane Baumeister & Lutz Kilian, 2014. "Do oil price increases cause higher food prices? [Biofuels, binding constraints, and agricultural commodity price volatility]," Economic Policy, CEPR;CES;MSH, vol. 29(80), pages 691-747.
    17. Susanne Fricke & Lodovico Muratori, 2017. "Spatial price transmission and trade policies: new evidence for agricultural products from selected sub-Saharan African countries with high frequency data," Working Papers 5/17, Sapienza University of Rome, DISS.
    18. Xi He, 2022. "Political and economic determinants of export restrictions in the agricultural and food sector," Agricultural Economics, International Association of Agricultural Economists, vol. 53(3), pages 439-453, May.
    19. Kym Anderson, 2016. "Agricultural Trade, Policy Reforms, and Global Food Security," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-1-137-46925-0, September.
    20. Thennakoon, Jayanthi & Anderson, Kym, 2015. "Could the proposed WTO Special Safeguard Mechanism protect farmers from low international prices?," Food Policy, Elsevier, vol. 50(C), pages 106-113.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:minecn:v:32:y:2019:i:2:d:10.1007_s13563-018-0161-z. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.