Skip to main content
Article
An Analysis of a Rules-Based Approach to Disciplining Export Credits in Agriculture
International Economic Journal (2007)
  • James I Rude, University of Manitoba
  • Jean-Philippe Gervais, Laval University
Abstract

This paper examines the comparative static effects of rules-based disciplines for government supported export credit arrangements. The arrangements provide traders in the country offering the guarantees more favourable borrowing conditions. This may provide an advantage relative to rival exporters since the supported trader may offer better financial terms to importers. Rules that discipline implicit interest rate subsidies are appropriate when an importing country does not face liquidity constraints when borrowing. However, these rules may not be appropriate with liquidity constraints because of the potential for additionality and benefits for all exporting countries. Rules on benchmarks for insurance premiums are always appropriate because insurance subsidies unambiguously have the potential to distort markets.

Keywords
  • Export credit,
  • WTO Agreement on Agriculture,
  • Export subsidy.
Disciplines
Publication Date
2007
Citation Information
James I Rude and Jean-Philippe Gervais. "An Analysis of a Rules-Based Approach to Disciplining Export Credits in Agriculture" International Economic Journal Vol. 21 (2007)
Available at: http://works.bepress.com/jp_gervais/18/