Export control and regulations are in the law of every country. However, is there a good reason behind it?
A country’s exports can be one of the pillars of its economy. Many countries treat exports and import as the backbone of their rolling economical matters and growth. Which is why export is widely considered as one of the top trades of countries that are good at producing in high quantity or quality.
However, with power comes responsibility. Moreover, the political tension and troubles between the two countries can close these economical doors and shut the gate for exports. In some cases, countries impose strict laws on their manufacturers and prevent them from exporting to these said countries. So, what is the reason behind it? Is it more than just political or regional? Let us find out.
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What Is Export?
Export is one of the earliest trades that humankind learned. In fact, some experts claim that this began more than 150,000 years ago. What is export exactly? One of the reasons behind it is when a country and its producers are creating more product than the local population requires, their heads turn towards exporting it. However, that is not the only reason a country could export.
Some country, especially the US, China, UK, Japan and Germany are ones who export just to grow their local economy. Moreover, the global dominance of the trading scene depends on how much a country can export. It also implies the total and complete satisfaction of the local population, so that manufacturers sell their products overseas.
What Is Export Control?
So, what is export control? It is a law or regulation that forbids local manufacturers, conglomerates and corporations from exporting to another country, person, company or corporation. So, countries impose these laws in order to not only avoid harmful usage of products or services but also to prevent other countries or corporations from gaining access to sensitive commodities or technology.
Export control in modern times is mostly employed by the USA. With some countries receiving stricter laws than the other. However, there are various services online that help other countries, whom they have good connections with, to get the products that they like. But, one sign of a banned product is available in a country would be its high price, caused by various export ventures.
So Why Do Countries Control Certain Exports?
So, what is the reason behind controlling exports? Here are a few reasons some major exporting countries do it:
· To Keep Supply & Demand In Check
One of the top reasons that many smaller countries put a check on excessive export is local demand. For instance, if the local demand for food is high and the export is higher, then the country would end up importing the said product. To avoid this misfortune, countries place strict laws for food and grain manufacturers that prevent them from exporting ahead of a designated amount.
· To Avoid Getting Wrong Products In Wrong Hands
Some of the top exporting countries do not wish for their technology or products to get in the wrong hands. For instance, if a country with known disdain towards the other wishes to import, then the country effectively ends up feeding their opposition.
· Potential Military Or Armed Implications
Perhaps one of the reasons any country bans or restricts export to another certain country is to reduce military or armed aid. In today’s world, export like this is most common between countries with good connections, or countries that fall into the same block. So, the manufacturer of such sensitive tech does not want to allow their opposing country to get their hands on their technology. In effect, the country’s government and law prohibit the export to them.
What Products Are Usually Controlled?
So, now that we know the reasons behind export controls then what are some of the products or commodities that government monitor particularly? Here is a few of them:
· Information
Information is the top concern for countries with the most to hide. For instance, countries in super-power races are always going above and beyond to avoid exporting information. Including books, educational material, state history etc.
· Military Equipment
One of the most commonly controlled commodities for exports around the world is military equipment. While the countries that have good connections will always follow through, the list of banned or restricted countries cannot export such commodities.
· Raw Material, Toxins And Chemicals & others
With the growing threats of unrest, the United Nations restricts many countries to export raw material, toxins and chemicals that do not fulfil their criteria. Post-Vietnam and cold war era has also increased awareness in other countries, so they have introduced various laws about this as well. Other export-controlled produces include electronics, microchips or computers in general.
What Happens When An Organization Or Person Avoids These Laws?
One of the most common punishments for this offence in the United States is jail-time. However, more sensitive the commodity, the stricter the punishment. Which is why experts advise understanding the laws and regulations fully before trying to import and export out of US. Including a lot of research about exportable commodities and services. So that there are no mishaps.
Does it take long to come up with laws to strict exports?
In case of many laws about export controls, they came up after some sort of miscommunication or mishap between two countries. While there are many countries that abide by the laws of the United Nations, some do not fall in their category for them to mark them “Safe” for trade. So, these laws come into effect.
Are China and the US on friendly terms to export?
Yes, they are. In fact, their trade is one of the most profitable for both countries, with it amounting to 600 billion US dollars in 2017.
What is the example of export control country today?
For the United States, the list is long. However, one of the most common names on the list in countries around the world today is Iran.
