export subsidy


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export subsidy

a direct payment, or tax concession, made by the government to firms to encourage them to increase their EXPORTS. This is done in order to generate greater foreign exchange earnings, thereby assisting the balance of payments and helping to create additional domestic jobs.

export subsidy

a direct payment, or tax concession, or low-interest ‘soft loan’ made by the government to domestic firms to enable them to reduce their EXPORT prices. Although the widespread use of export subsidies by a country can increase its exports and assist its balance of payments, such subsidies are viewed as an ‘unfair’ trade practice by the WORLD TRADE ORGANIZATION and are likely to lead to retaliatory action by other countries. See COUNTERVAILING DUTY, BEGGAR-MY-NEIGHBOUR POLICY, COMMON AGRICULTURAL POLICY.
References in periodicals archive ?
The export subsidy arrears are valued at about EGP 7bn.
Pakistan last had an export subsidy in 2015-16, set at Rs13, 000 ($124) per ton for exports of 650,000 tons of the sweetener.
However, the sector is already benefitting from export subsidy (4 to 7 per cent on FOB value of exports).
Developed country members should eliminate their scheduled export subsidy entitlements from the date of adoption of this decision and developing country members should eliminate their export subsidy entitlements by the end of 2018.
India could use only a special and differential provision of AoA that allows developing countries to use subsidies aimed at reducing the cost of marketing including internal and external transport as well as handling and processing costs provided that these are not applied in a manner that would circumvent export subsidy reduction commitments.
The nine-page decision states that WTO members that are developed countries will immediately eliminate their remaining export subsidy entitlements.
Murtaza Mughal, President PEW said the decision to deregulate prices, allowing export of half million tonnes of sugar and an export subsidy of Rs 13 per kg should be reconsidered as it will put additional burden of Rs7 billion on public exchequer.
Consensus also emerged on creating buffer stock, restructuring of loan, promotion of ethanol output, export subsidy on white sugar to help solve the current crisis faced by farmers and millers.
This would involve dramatically cutting export subsidy allowances and imposing a 540-day limit on repaying export credit.
The export subsidy program that we are challenging today is implemented through dozens of Chinese legal instruments," Kirk said.
Export Plus has been replaced by a more comprehensive export subsidy program dubbed "Agri Plus," IDAL has recently announced.
31, 2009 the export subsidy (known as CAT in Spanish) worth 10-15% of the added value of exports disappeared.

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