International Cartels, And Its Foreign Trade In Developing Countries

International cartel is one of the key issues which the trade and competition policy workgroup of WTO recently voiced concern about, the formation and development of it do great harm to the effectiveness and the health operation of the world market, it also challenge the implement of the WTO rules and multilateral negotiation outcomes, therefore, it arouses the concern of many countries and international organizations. International cartel is illegal in most of the developed countries nowadays, and more and more developed countries have prosecuted international cartels. But there has been relatively little activity on the part of developing country governments or developing country consumers to respond to these cartels even after they have been shown to exist. The reason of this phenomenon is because the international cartel has no effect on the economy of developing countries? as this paper demonstrates, a lack of impact on developing countries is probably not one. We found that international cartel did great negative impact on the developing countries' international trade and economics. The price-fixing and market division agreements of international cartel affect the effectiveness of trade liberalization; developing countries should give more concern on the international cartel issue. And more importantly, despite of the various difficulties, developing countries should understand that they can limit the negative effect of international cartel and protect the domestic market by adopting the experiences of other countries, strengthening the knowledge of international cartel and perfecting their marketing rules and the competitive rules.The first section of this paper is the introduction, in this section we raise the issue and the research significance, we also note the research status quo in the academic field, the research orientation and the structure arrangement of this paper. In chapter 1,we give a detail description and theory analysis of international cartel, after definition, classification, the description of international cartel and the theory analysis, we put forward the basic proposition of this paper-international cartel did great harm to the world economy. In Chapter 2 we give a cross-section study of forty-two private international cartels from the 1990s that prosecuted by DOJ and EC on developing country trade. After given a quantitative snapshot of the effect of these international cartels on international trade and the barrier which international cartel set to the outsiders, we get a clearer sense of the magnitude of the negative effect that these cartels had on developing countries and the great hamper to the world trade liberalization. Based on chapter 1 and chapter 2,chapter 3 emphases the increasingconcern of international organizations and developing countries to international cartel, we also bring forward the standpoint that developing countries can take effective methods to international cartel by referring to other countries experience and perfecting domestic competition policy. Chapter 4 is the conclusion part of this paper; we also give some suggestion that could ameliorate this situation besides of the concluding remarks.This paper's basic emphasis is on the international cartel's effect on the international trade of developing countries, but international cartel is a complicated issue due to its secrecy, any definitive estimate of the impact of these cartels on developing countries is undermined by the paucity of the data available to analyze this question. The unavailability of the data makes this papers research have many limitation. Although this paper get some persuasive conclusion, the international cartel's effect on the international trade of developing countries need more penetrating empirical research.