Commodity Cartels

Commodity cartels in Global Commerce Policy

In this regard, commodity cartels is: public or private cartels formed to maintain the price of a commodity above what it would fetch on open markets. The usual mechanisms are the imposition of export quotas and collusion to maintain prices above real market levels. Such cartels can only be successful if they include all of the important producers and if no commodity can be readily substituted. The entries on trade policy in the Encyclopedia are here. OPEC was a successful cartel for more than a decade, but its ability to keep prices up led to the entry of higher-cost producers into the market. The international diamond cartel based in South Africa has also operated profitably for many years, but it is being challenged increasingly by diamond producers selling on alternative markets. See also commodity policy, international commodity agreements, international steel cartel and resources diplomacy.[1]

Commodity cartelsin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Commodity cartels” entry (OAS)

See Also