Trade-balancing Requirement

Trade-balancing requirement in Global Commerce Policy

In this regard, trade-balancing requirement is: a requirement that an investor use earnings from exports to pay for imports. The entries on trade policy are here. It is based essentially on mercantilism. Such a condition always puts a limit on the growth of the firm concerned, and in this way also on the economic growth of host countries. Trade-balancing requirements contravene the provisions of the WTO Agreement on Trade-Related Investment Measures.[1]

Trade-balancing requirementin the wold Encyclopedia

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

Resources

Notes and References

1. Dictionary of Trade Policy, “Trade-balancing requirement” entry (OAS)

See Also