Tuesday, September 08, 2009


IWS Documented News Service
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations
-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor
---------------------- Stuart Basefsky
New York, NY 10016
-------------------------------Director, IWS News Bureau

United States International Trade Commission (USITC)
Staff Publications and Working Papers

Export Controls: An Overview of Their Use, Economic Effects, and Treatment in the Global Trading System
Publication ID-23
Joanna Bonarriva, Michelle Koscielski, and Edward Wilson, Office of Industries
August 2009
[full-text, 26 pages]

Export controls can take a variety of forms (e.g., export bans, taxes, quotas,
or restrictive licensing), and are applied by both developing and developed countries to meet
economic and noneconomic goals. This paper reviews some of the recent economic literature
discussing the rationale for and economic impact of government controls, the patterns of use of
export controls and the current treatment of these controls in trade agreements. Rationales for
export controls include increasing government revenue, promoting downstream industries,
controlling price fluctuations, as well as certain noneconomic objectives (e.g., strategic arms
control, environmental protections, etc.). With respect to economic effects, when a country
imposes an export control, it typically has the intended effect of lowering the domestic price of
the restricted product in the short run because of increased supply in the domestic market. In
the long run, however, export controls may have unintended and undesirable effects. The most
comprehensive source of information on the use of export controls is the Trade Policy Review
(TPR) mechanism reports generated by the World Trade Organization. Data from the TPR's
indicate that export taxes on agricultural products and raw materials are the most frequently
used export control, and are employed principally by lower-middle and lower income
economies. Many countries contend that quantitative export restrictions and other border
measures such as export taxes are market distorting. Consequently, many recent trade
agreement negotiations have been used as platforms to reduce the use of quantitative export
controls and taxes on exports.

This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
Telephone: (607) 255-2703                
Fax: (607) 255-9641                       
E-mail: smb6@cornell.edu                  

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