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Economic Impact of the U.S. Export Trading Company Act

Archived Abstract of Former PSC Researcher

Levenstein, Margaret, and Valerie Y. Suslow. 2007. "Economic Impact of the U.S. Export Trading Company Act." Antitrust Law Journal, 74(2): 343.

Over the past fifteen years, countries around the world have embraced global markets. This increased economic integration has required a corresponding commitment to policies that promote effective global competition. Within the context, many have questioned the longstanding practice in which countries provide exemptions from national antitrust laws to firms engaged in joint export activities. Numerous countries have eliminated such exemptions over the last decade. In this article, the authors contribute to the policy discussion by providing an empirical analysis of the largest extant policy certifying joint export activity, the US Export Trading Company Act (1982). Congress passed the Export Trading Company Act (ETC Act) in 1982 in response to a concern that American firms were at a disadvantage in international markets, especially relative to Japanese firms that were encouraged to cooperate with one another by government agencies, such as the Ministry of International Trade and Industry. The purpose of the ETC Act is to "encourage exports by facilitating the formation and operation of export trading companies, export trade associations, and the expansion of export trade services generally."

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