Why do governments regulate exports and imports?
The United States imposes export controls and sanctions to protect national security interests and promote foreign policy objectives.
To protect nascent industries. To fortify national defense programs. To support domestic employment opportunities. To combat aggressive trade policies.
Standards and regulations in overseas markets can protect the health and safety of consumers or be a barrier to trade.
The Export Administration Regulations (EAR) are implemented by the Bureau of Industry and Security (BIS) within the Department of Commerce. The EAR regulates the export of “dual use” goods and services (goods and services having both military and civilian uses) that are identified on the Commerce Control List (CCL).
The U.S. government uses two types of policies—monetary policy and fiscal policy—to influence economic performance. Both have the same purpose: to help the economy achieve growth, full employment, and price stability. Monetary policy is used to control the money supply and interest rates.
Government regulations are necessary because they protect public safety and market fairness. For example, food safety regulations help protect consumers from pathogens that could cause widespread illness. By creating regulations, the government can make food-borne illness less likely.
The four main types are protective tariffs, import quotas, trade embargoes, and voluntary export restraints. The most common type of trade barrier is the protective tariff, a tax on imported goods. Countries use tariffs to raise revenue and to protect domestic industries from competition from cheaper foreign goods.
The United States imposes export controls to protect national security interests and promote foreign policy objectives related to dual-use goods and less-sensitive military items through implementation of the Export Administration Regulations (EAR) (15 CFR Parts 730 – 774).
Federal export control laws restrict the export of goods, technology, related technical data, and certain services in the interest of protecting the national security and domestic economy.
The policy for import and export is EXIM policy also known as Export-Import (EXIM) or Foreign Trade Policy. It frames rules and regulations for exports and imports of a country and also provides policy and strategy of the government to be followed for promoting exports and regulating imports.
What are the reasons for export restrictions?
Export restrictions may be applied for a number of reasons: protection of the environment, preservation of natural resources, protection of downstream industries, or as a response to a number of different market imperfections.