Import cartels

Import cartels involve agreements concluded among competing firms in one or several countries. Such cartels may collectively limit the aggregate amount of specified imported goods, determine the sources of supply for such imports and/or fix the prices and terms of purchase the cartel members will pay for such imports. Such activities may be: a defensive measure to achieve lower purchase prices for imported products because their importers encounter aggressive export policies pursued by suppliers through 'natural' monopolies, or export cartels or centralized State selling agencies; an aggressive measure aimed at preventing or limiting imports in order to protect members of the cartel from import competition, or to ensure that imports take place before rather than after the processing of the goods in question, or to minimize the buying prices paid by cartel members; part of an exclusive arrangement between exporters and importers of a particular product with the purpose of excluding other firms from the business. From the point of view of the developing countries, an aggressive import cartel would appear to be a most harmful activity since it could restrict the volume of exports from those countries and the range of the prices paid to them for the imports permitted.