Export Credits

Export credits in Global Commerce Policy

In this regard, a definition of this issue is as follows: the granting to the importer (purchaser) of goods and services an extended term to pay for them. The entries on trade policy in the Encyclopedia are here. OECD members handle their government-supported export credits according to the Arrangement on Guidelines for Officially Supported Export Credits. The accepted practice today is to consider repayment terms of less than two years as short-term, between two and five years as medium-term and above five five years as long-term. Many exporting countries have mechanisms to manage, support or guarantee export credits since, especially in the case of large contracts like power stations or port facilities, favourable terms of credit can influence considerably the competitiveness of a bid. The WTO Agreement on Subsidies and Countervailing Duties declares export credits prohibited if they are made at less than commercial rates. The entries on trade policy are here. Export credits extended by OECD members in accordance with the OECD Arrangement are exempt from this prohibition.[1]

Export creditsin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Export credits” entry (OAS)

See Also