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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
Mark Michalek, Denver Post, 28 June 2025
President Trump’s tariffs on Mexican imports and threats of U.S. drone strikes on cartel targets have sparked a surge of nationalism here.
—Kate Linthicum, Los Angeles Times, 27 June 2025
Trump has demanded that Beijing do more to stop the flow of such precursor ingredients to Mexican drug cartels, which use them to make fentanyl for sale in the U.S.
—Elaine Kurtenbach, Chicago Tribune, 27 June 2025
In February, Trump signed an executive order designating Mexican drug cartels and other Latin American groups, including TdA and MS-13, as terrorist organizations.
—Billal Rahman, MSNBC Newsweek, 24 June 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 12 Jul. 2025.
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cartel
noun
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