International regulation of government-backed export financing: Subsidized export credits under the OECD Arrangement and the GATT-MTN system.

Abstract

This study examines the regulation of export credit subsidies under the OECD Arrangement and the GATT-MTN system. It is divided into three major segments. The introductory segment focuses on the mechanics of export credit subsidization, including the mechanisms through which OECD countries subsidize export credits and the structure of export credits as exemplified in select OECD systems. The second segment deals with the regulation of export credits and tied aid financing (TAF) under the OECD Arrangement. This segment covers the evolution of international export credit discipline and the economic and political variables underlying the regulatory scheme. It also analyzes the current regulatory model governing TAF and its deficiencies and suggests ways to improve the existing regulation. The last segment focuses on the definition and regulation of export credit "subsidies" under the GATT-MTN System and the countervailing duty laws of the US and the EEC and on the interface of these regulatory schemes with the OECD Arrangement.