United States or otherwise restrains trade therein.(1) Initially, a Webb-Pomerene Association (WPA) had to serve as a foreign selling agent for its members in order to qualify for an exemption from domestic antitrust laws.
I assumed that an industry was interested in an export cartel if any firms in the industry registered as a Webb-Pomerene Association in 1962 according to the U.S.
Existing evidence concerning Webb-Pomerene Associations in practice
(1) See United States Federal Trade Commission, Webb-Pomerene Associations: A 50-Year Review 73-75 (1967) [hereinafter A 50-Year Review].
AUTHOR'S NOTE: I Wish to thank Leonard Weiss and my colleagues at Occidental College for their comments on earlier drafts of this article, Carl Hevener of the Federal Trade Commission for his assistance in accessing information on Webb-Pomerene Associations, and Stephen Gambee for his research assistance.
How do ETCs differ from Webb-Pomerene Associations?
The Webb-Pomerene Act continued in force after the Export Trading Company Act was passed, and new Webb-Pomerene Associations have been formed since 1982.
Firms belonging to both Webb-Pomerene Associations and ETCs
There are at least six cases in which Webb-Pomerene Associations and ETCs have shared at least one member in common.
Table 4 shows that Webb-Pomerene Associations have usually had much higher average levels of exports than have ETCs.
Export Trading Companies and Webb-Pomerene Associations both offer their members limited antitrust immunity, but the two groups of organizations differ in several ways.