A cartel is a group of manufacturers who work together to protect their interests. Agreements arise when some large producers decide to cooperate on aspects of their market. Once created, agreements can set prices for members, avoiding price competition. In this case, the agreements are also called price circles. They can also limit productions on the market, for example. B with OPEC and oil exploitation rates, and establish rules on other aspects of members` behavior. The definition of rules is particularly important in oligopolistic markets, as predicted in game theory. One of the points of interest of the agreements for producers is that they establish rules that members follow, thereby reducing the risks that would be at stake in the absence of the agreement. A cartel has less control over a sector than a monopoly – a situation in which a group or company has almost all or almost the market for a particular product or service. Some cartels are formed to influence the price of goods and services legally traded, while others exist in illegal industries such as drug trafficking. In the United States, virtually all cartels, regardless of their field of activity, are illegal under U.S. cartel and abuse of dominance legislation. Coffee.
In 1962, coffee-producing countries, which accounted for 90% of the world`s coffee production, and almost all developed coffee producing countries signed the International Coffee Agreement (ICA) with the aim of stabilizing world coffee prices through binding export quotas. Rising coffee prices have encouraged the emergence of new producers. For example, two non-ICA members, the former USSR and the German Democratic Republic in Vietnam, provided technical and financial assistance to the development of its own coffee industry during the successive period of ICAs (until 1989, when the last iteration collapsed). In 1970, Vietnam produced only 0.7 per cent of the world`s 59 million bags. By the early 2000s, it had overtaken Colombia as the world`s second largest coffee producer after Brazil. Today, 20% of the world`s coffee production. Natural rubber. The last such regime, which included natural rubber, collapsed during the Asian financial crisis due to currency developments in three major producers, Indonesia, Malaysia and Thailand. A rubber buffer stock was used to keep rubber prices in a desired area.