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 ?
(8) Obviously, if export subsidies are set by the individual countries rather than the trade blocs then trade bloc formation will have no effect on the Nash equilibrium export subsidies.
The author does a workmanlike job of assessing the many forms of non-tariff barriers: including domestic subsidies (tax cuts, R & D, special depreciation), restrictive customs procedures, restrictive technical standards, export subsidies, antidumping regulations, controls over foreign investment, and discriminatory foreign exchange rates.
The government increased export subsidies in the next fiscal year draft budget by EGP 1.4bn to reach EGP 4bn, up from EGP 2.6bn in fiscal year (FY) 2017/2018.
In late January, Pakistan increased the amount of sugar eligible for export subsidies to 2 million tons from 500,000 tons to reduce its own excess supplies.
United States Trade Representative Michael Froman today announced that the United States and China have signed an agreement terminating the export subsidies China has provided through the Demonstration Bases-Common Service Platform Program.
Four African countries have proposed that their cotton exports receive duty-free, quota-free market access to other markets by 2015 and an immediate end to any export subsidies for cotton in developed countries.
The US is filing a case against China with the World Trade Organization over export subsidies for automobiles and parts, reports James Politi for the Financial Times.
Germany, Spain and the UK were also accused of export subsidies for the launch of Airbus A380.
It will funnel US$150 million to Bangladeshi export industries--mainly in the knitwear, garments and textiles sector--through direct export subsidies, fiscal policy support and assistance to lower input costs.
The final declaration contained some minor gains on agriculture, such as setting up a 2013 end-date for export subsidies and providing developing countries with extra flexibility to protect their small farmers.
Two types of prohibited subsidies were identified by the WTO panel: unscheduled export subsidies (i.e., subsidies applied to commodities not listed on a country's WTO schedule or made in excess of the value listed on the schedule);3 and import substitution subsidies which refer to subsidies paid to domestic users to encourage the use of domestic products over imported products.
'We need to end European and US export subsidies and enable developing countries to protect their vital industries.'