Abstract
ABSTRACTThis study estimates the degree of trade mispricing in the form of undervalued import from the Democratic Republic of Congo (DRC) to the European Union (EU) and the U.S. between 2000 and 2010 based on a method using an inter-quartile price-filter approach. The study estimates that the undervalued amount of EU import from the DRC is €9.95 billion, exceeding the declared total import value of €8.06 billion. Almost all of the underpricing in the EU import from the DRC, 98% of the undervalued amount, is through underpriced non-industrial diamonds imported by Belgium and cobalt ore and mattes imported by Finland.
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