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EXPORT CARTEL

Statistics Directorate    
Definition:
An Export cartel is an agreement or arrangement between firms to charge a specified export price and/or to divide export markets.

Context:
Many competition law statutes exempt such agreements from the conspiracy provisions provided that the cartel does not lead to injurious effects on competition in the domestic market, e.g., give rise to price fixing agreements or result in reduction in exports.

The rationale for permitting export cartels is that it may facilitate cooperative penetration of foreign markets, transfer income from foreign consumers to domestic producers and result in a favourable balance of trade.

Source Publication:
Glossary of Industrial Organisation Economics and Competition Law, compiled by R. S. Khemani and D. M. Shapiro, commissioned by the Directorate for Financial, Fiscal and Enterprise Affairs, OECD, 1993.

Cross References:
Cartel

Hyperlink:
http://www.oecd.org/dataoecd/8/61/2376087.pdf

Statistical Theme: Financial statistics

Created on Thursday, January 03, 2002

Last updated on Wednesday, March 05, 2003