Swing Mechanism

Swing mechanism in Global Commerce Policy

In this regard, a definition of this issue is as follows: this refers to an interpretation by some WTO members of the right to use export subsidies for agricultural products. The Agreement on Agriculture sets annual limits on the level of export subsidies members may apply. Some now say that if a country does not use up its ceiling level in any year, it should be able to use the unused amount in another year, provided that the total permissible amount is not exceeded. This proposition does not enjoy widespread support. The swing mechanism is an accepted method under the Agreement on Textiles and Clothing. The Agreement permits swing (transfer of part of an export quota for one product to quota for another product), subject to certain established guidelines and practices.[1]

Swing mechanismin the wold Encyclopedia

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

Resources

Notes and References

1. Dictionary of Trade Policy, “Swing mechanism” entry (OAS)

See Also