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RESEARCH AND ANALYSIS:  WORKING PAPERS
WTO Rules and Good Practice on Export Policy

The WTO has increased international disciplines on export policy, but there is still scope for the use of export subsidies and other measures to promote exports. Under macroeconomic and trade reforms of the last decade, many countries have reduced or eliminated import measures which operate as an implicit tax on their own exports. 

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No: TPRD-97-01 

Author:
Sam Laird 
World Trade Organization 

Manuscript date: April 1997 

Abstract  Back to top

The WTO has increased international disciplines on export policy, but there is still scope for the use of export subsidies and other measures to promote exports. Under macroeconomic and trade reforms of the last decade, many countries have reduced or eliminated import measures which operate as an implicit tax on their own exports. While more needs to be done in this regard, various export promotion measures other than subsidies may be useful as a transitional device for countries which are proceeding in a phased manner towards more outward oriented policies. It is also important to identify and eliminate internal constraints to export, including fiscal burdens and bureaucratic procedures. Such efforts can be complemented by continued efforts to open external markets in trade negotiations. However, trade liberalization and domestic deregulation also contribute to efforts to increase productivity, which together with macroeconomic stabilization programmes, help maintain a realistic, stable real exchange rate that is so crucial to a successful export effort. 

Keywords  Back to top

WTO; export promotion, developing countries, dumping, subsidies. 

JEL codes: [F13] 

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