General Electric also established a trading company after the Export Trading Company Act was introduced -- forecasting sales of $2 billion by 1987.
Other reasons for the poor performance of the Export Trading Company Act can be found in the banking industry's relative inexperience with export trading, unduly restrictive conditions of Title II (10 per cent restriction on extension of credit and 5 per cent of consolidated capital and surplus restrictions), lack of formal ties between banks and manufacturers and the fact that US bankers are notoriously risk averse and asking them to become exporters was, and would still be, destined for failure.
The Export Trading Company Act of 1982 started banks getting more involved in the creation of export trading companies.
1987), "The future of the Export Trading Company Act", Business America, 12 October, pp.
1983), "The US Export Trading Company Act of 1982", Journal of World Trade Law, Vol.
Much of the motivation for passage of the Export Trading Company Act was a desire to protect small U.
The large majority of Export Trading Company certificates of review protect the holder from vertical antitrust suits.
The Webb-Pomerene Act (1918) and the Export Trading Company Act (1982) both offer a limited level of antitrust immunity for certain conduct.
One of the most important benefits sought by advocates of the 1982 Export Trading Company Act was the inclusion of U.
Another anticipated benefit of the 1982 Export Trading Company Act was that banks could help to organize ETCs.
The final major difference between the ETC and Webb-Pomerene programs is that applicants for Export Trading Company certification must undergo an examination by the Departments of Commerce and Justice to insure that the conduct proposed by the applicant meets the standards of the Act.
If the application process for Export Trading Company certification were costly or burdensome, it seems unlikely that such a high proportion of small ETCs would have applied.