Export Inflation Insurance Schemes

Export inflation insurance schemes in Global Commerce Policy

In this regard, export inflation insurance schemes is: schemes operated by governments particularly in the high-inflation environment of the 1970s. They were designed to minimize or eliminate the effects of monetary inflation on the cost of export contracts. Countries not maintaining such schemes held that they conferred a competitive advantage to exporters benefiting from them. These exporters could bid more aggressively in international markets, since they were secure in the knowledge that they would not have to bear the cost of inflation alone. The entries on trade policy are here. A panel established by the GATT in 1978 to examine whether such schemes amounted to a subsidy concluded that this would be true if the premium rates were “manifestly inadequate to cover long-term operating costs and losses”. The entries on trade policy are here. It also noted that the meaning of “long-term” still would have to be defined. The entries on trade policy are here. In the current environment of low inflation any schemes of this nature which might still exist appear to be unused.[1]

Export inflation insurance schemesin the wold Encyclopedia

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

Resources

Notes and References

1. Dictionary of Trade Policy, “Export inflation insurance schemes” entry (OAS)

See Also