Trade and Environment Briefings: Export Restrictions

Export restrictions are implemented nowadays with the aim of achieving a number of goals, such as food security, industrial development, environmental protection and natural resource conservation. Nevertheless, the current paper brings about a rethinking of the needs and policy objectives behind such measures.

The document presents the following findings:

• in most cases, export restrictions are implemented as one element of a larger resource management strategy
• most restrictions have been imposed by LDCs and developing countries, which account for a high proportion of natural resources produced worldwide
• rules under the WTO governing the use of export restrictions are less developed than those on the import side
• in some cases, export restrictions have served a role in reducing incentives to produce, and have sometimes exacerbated price spikes and volatility on the global markets that they sought to respond to

The authors indicate that countries may wish in the future to multilaterally negotiate better-adapted disciplines and policies, yet they underline these considerations:

• taking into account the functioning of commodity markets, as well as the relationship between export restrictions and sustainable development is critical
• the willingness of industrialised countries to deal with negotiations on natural resources trade and export restrictions is a prerequisite
• free trade agreements are expected to serve as a practical “testing-ground” for novel approaches on export restrictions, which could help inform potential future multilateral disciplines
• conducting more research about the relevant conditions under which export restrictions can achieve their stated objectives is important.

This summary was prepared by Eldis.