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Recent Trends in Export Restrictions

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  • Jeonghoi Kim

    (OECD)

Abstract

Prices for commodities such as minerals and metals have increased significantly over the past few years. At the same time, there has also been an increase in restrictions on the export of raw materials which has led policy makers and business people to address free trade of raw materials. This paper provides information on the present situation regarding the use of export restrictions and international disciplines on these measures. Export restrictions are maintained to achieve diverse policy objectives, including environmental protection or conservation of natural resources, promotion of downstream processing industries, controlling inflationary pressures, and for fiscal receipts reasons. Export restrictions take various forms such as export duties, quantitative restrictions, and licensing requirements. The number of countries applying export duties over the period 2003-2009 was higher than in previous years and that such duties were introduced primarily by developing and least developed countries. Under the current WTO rules, unlike quantitative export restrictions which are in principle prohibited, there is no substantive discipline on export duties, although there have been efforts to revise this at the multilateral and bilateral levels. The WTO accession process imposes several disciplines. Export restrictions have also been discussed during the DDA negotiations in both NAMA (Non-Agricultural Market Access) and agriculture negotiations. Several regional trade agreements (RTAs) went beyond the WTO by including prohibition of export duties. Export restrictions, by creating a differential between the price available to domestic processors and the price charged to foreign processors, provide domestic processing industries with an advantage. Although several governments apply export restrictions to achieve diverse policy objectives, not all rely on such restrictions. Alternative policy options with different trade impacts are used. In view of the significant impacts of export restrictions on global supply chains, transparency on the use and implementation of such measures should be substantially improved.

Suggested Citation

  • Jeonghoi Kim, 2010. "Recent Trends in Export Restrictions," OECD Trade Policy Papers 101, OECD Publishing.
  • Handle: RePEc:oec:traaab:101-en
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    File URL: http://dx.doi.org/10.1787/5kmbjx63sl27-en
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    Citations

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    Cited by:

    1. Gourdon, Julien & Monjon, Stéphanie & Poncet, Sandra, 2016. "Trade policy and industrial policy in China: What motivates public authorities to apply restrictions on exports?," China Economic Review, Elsevier, vol. 40(C), pages 105-120.
    2. Gafarova, Gulmira & Perekhozhuk, Oleksandr & Glauben, Thomas, 2015. "An econometric analysis of market power in Azerbaijani wheat market: Evidence from Kazakhstan and Russia," 2015 Conference, August 9-14, 2015, Milan, Italy 211642, International Association of Agricultural Economists.
    3. 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.
    4. Estrades, Carmen, 2015. "The Role of Export Restrictions in Agriculture Trade," Proceedings Issues, 2014: Trade and Societal Well-Being, December 13-15, 2015, Clearwater Beach, Florida 229229, International Agricultural Trade Research Consortium.
    5. Charlier, Christophe & Guillou, Sarah, 2014. "Distortion effects of export quota policy: an analysis of the China-Raw Materials dispute," China Economic Review, Elsevier, vol. 31(C), pages 320-338.
    6. Ayako Obashi, 2016. "Optimal Trade Policy and Production Location," Working Papers DP-2016-25, Economic Research Institute for ASEAN and East Asia (ERIA).
    7. Mancheri, Nabeel A., 2015. "World trade in rare earths, Chinese export restrictions, and implications," Resources Policy, Elsevier, vol. 46(P2), pages 262-271.
    8. Eisenbarth, Sabrina, 2017. "Is Chinese trade policy motivated by environmental concerns?," Journal of Environmental Economics and Management, Elsevier, vol. 82(C), pages 74-103.
    9. Liefert, William M. & Westcott, Paul C., 2016. "Modifying agricultural export taxes to make them less market-distorting," Food Policy, Elsevier, vol. 62(C), pages 65-77.
    10. Myers, Rodd, 2015. "What the Indonesian rattan export ban means for domestic and international markets, forests, and the livelihoods of rattan collectors," Forest Policy and Economics, Elsevier, vol. 50(C), pages 210-219.

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