Intergovernmental Council of Copper Exporting Countries

The Intergovernmental Council of Countries Exporters of Copper (CIPEC) (French Conseil intergouvernemental des pays exportateurs de cuivre) was created in 1967 in Lusaka with the objective of coordinating policies of the country members looking for growth in the revenues coming from copper.

Many experts consider that the market power of this cartel was negligible, because the residual demand that it faced was elastic (much higher than OPEC, for example).

[1] There were three stages of the CIPEC that economists recognize: The OPEC embargo marked a turning point in the history of the international copper trade, waking up the countries that depended strongly on their exports of commodities.

Motivated by Rio Tinto Zinc (RTZ), in November 1974 in Lusaka the members of CIPEC reached an agreement to reduce copper exports by 10% -- later increased to 15% -- until the first half of 1976.

High inventories and the growth of sources outside of the cartel prevented the policies adopted by CIPEC from giving benefit to its members.