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The literal meaning of Italian cartello, a derivative of carta, “leaf of paper,” is “placard.” The word is also used for a letter of defiance or a challenge. In this sense the Italian word was borrowed into Middle French as cartel, and the French word was borrowed into English. In English, a cartel was originally a letter of defiance. Later the word came to be used for a written agreement between warring nations to regulate such matters as the treatment and exchange of prisoners. Another type of agreement, a combination of commercial enterprises, is now called a cartel.
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A cartel is an organization of a few independent producers for the purpose of improving the profitability of the firms involved. This usually involves some restriction of output, control of price, and allocation of market shares. Members of a cartel generally maintain their separate identities and financial independence while engaging in cooperative policies. Cartels can either be domestic or international. Because cartels restrict competition and result in higher prices for consumers, they are outlawed in some countries. The only industry operating in the U.S. with a blanket exemption from the antitrust laws is major-league baseball.
Examples of cartel in a Sentence
Christine Fernando, Los Angeles Times, 9 July 2025
Both Maduro and Interior Minister Diosdado Cabello are under federal indictment in the U.S. for allegedly leading the Los Soles drug cartel.
—Antonio Maria Delgado
july 9, Miami Herald, 9 July 2025
Since his first term in the White House, Trump has had a tough relationship with Mexico over his stringent immigration policies that secure the southern border and target Mexico’s drug cartels.
—David Zimmermann, The Washington Examiner, 8 July 2025
Not cartel members, not gang members, not drug dealers.
—Edward Segarra, USA Today, 8 July 2025
See All Example Sentences for cartel
Cite this Entry
“Cartel.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/cartel. Accessed 18 Jul. 2025.
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cartel
noun
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