Official export credit support: competition and compliance issues

Dawar, Kamala (2019) Official export credit support: competition and compliance issues. Journal of World Trade. ISSN 1011-6702 (Accepted)

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Abstract

Aggressive competition in the official export credit support market has resulted in an increase in activity that lies outside of the main instruments regulating competition and sustainable development in export finance terms – the OECD Arrangement on Officially Supported Export Credits, and the OECD Common Approaches. By default, the World Trade Organization’s Agreement on Subsidies and Countervailing Duties (SCM) is becoming the main legal deterrent, despite its weakness in not covering trade in services or the sustainable development dimensions of official export credit support. Yet the playing field is also unruly because of the apparent reluctance on the part of WTO Members to challenge these measures.

The current economic slowdown in export growth, coupled with the rise of unruly export credit support programmes, presents a strategic dilemma for the Participants to the OECD Arrangement. They are faced with the difficult choice between taking a strong pro-competition position domestically, or by fighting fire with fire and developing their own non-Arrangement type export credit support programmes. The former option is the more preferable for economic efficiency considerations and long-term competitiveness, although it may result in a controversial reduced role for their ECAs.

There is a collective interest in preventing publicly-funded, yet opaque, subsidy wars in export credit terms and conditions, with negative economic, political, social and environmental repercussions. This calls for heightened cooperation among ECA governments within international bodies such as the WTO, OECD and the International Working Group (IWG) on Export Credit Support.

Item Type: Article
Keywords: Export Credit Agencies (ECAs), the OECD Arrangement, the OECD Common Approaches, the WTO SCM, International Working Group on Export Credit Support (IWG)
Schools and Departments: School of Law, Politics and Sociology > Law
Subjects: H Social Sciences > HF Commerce > HF1371 International trade
H Social Sciences > HF Commerce > HF1371 International trade > HF1383 International trade agencies
H Social Sciences > HF Commerce > HF1371 International trade > HF1383 International trade agencies > HF1385 World Trade Organization
K Law
Depositing User: Kamala Dawar
Date Deposited: 13 Aug 2019 08:48
Last Modified: 13 Aug 2019 09:00
URI: http://sro.sussex.ac.uk/id/eprint/85426

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RESPECTUnsetHorizon 2020770680