What Is an Export Restriction?

Export restrictions are the management system in which the state controls the export of goods. It is the embodiment of a country's foreign and foreign economic policies in export trade. Restricted commodities are usually: strategic materials and advanced technology; domestic shortages; cultural relics and antiques; "automatic" export-restricted goods, etc. The means of control include export quotas, export licenses and export exchange control.

Export restrictions

The main contents of export restrictions are as follows:

Voluntary export restrictions are measures in which the government of an importing country or an industry arranges with the government of an exporting country or a competing industry to limit the amount of one or more products that the latter exports. According to this definition, voluntary export restrictions are a general term for all mutually agreed measures that restrict exports. However, strictly speaking, voluntary export restrictions are actions that are unilaterally taken and enforced by the exporting country. They are called voluntary and mean that the exporting country has the formal right to cancel or modify restrictions. Voluntary export restrictions are usually due to pressure imposed by the importing country; therefore, one can consider export restrictions to be "voluntary" only because exporting countries may feel that such restrictions are more substitutable than importing countries may establish.

Export restrictions

The popularity of export restriction arrangements and their inherent shortcomings, especially their spread and the tendency to divide the trading system into a series of market-sharing arrangements dominated by major trading nations, have prompted some critics to suggest that export restriction arrangements should Control, the use of such arrangements should be subject to strict conditions and subject to multilateral supervision. This will encourage greater compliance with the trade rules of international agreements. These observers also point out that the General Agreement on Tariffs and Trade has sanctioned certain situations that violate non-discrimination principles, such as its customs union and free trade zone provisions. Others believe that the principle of non-discrimination is too important and should not be further weakened by the formal approval of export restriction arrangements. From an economic perspective, non-discrimination means that domestic producers can obtain a certain level of protection at the lowest cost to domestic consumers and the rest of the world. It also protects the interests of smaller trading nations and helps ensure that new exporters enter international markets. Its role in GATT rules makes international trade relations and domestic decision-making very clear and predictable. Based on this view, trading countries should firmly adhere to the principle of non-discrimination when formulating and implementing their trade policies, so that export restriction arrangements can be controlled.

This issue is on the agenda of the Uruguay Round of the recent multilateral trade negotiations, particularly in the context of the safeguards provisions of the General Agreement on Tariffs and Trade. The decisions of negotiators can have a significant impact on the future of the international trading system, and it goes without saying that it will also have a significant impact on the economic growth and employment prospects of the member countries of the organization. ^[1]