Export promotion: the role of transportation subsidies

Export promotion: the role of transportation subsidies An important objective of recent General Agreement on Tariffs and Trade (GATT)/World Trade Organization (WTO) rounds of trade negotiations has been to urge member countries to adopt trade policies that are more transparent in their effects. One example in this regard has been the move towards tariffication of non‐tariff barriers in an effort to make the price effects of trade barriers more readily discernible. This goal remains largely unfulfilled, as many countries continue to implement barriers that are often complicated and “disguised” in their effects. Instead of adopting direct export subsidies, for example, some countries subsidize the use of a specialized input into the production of a final product. While the effect of this subsidization is similar to a direct export subsidy, the effects are not transparent in that the subsidy applies to an input and the effect that the subsidy has on trade depends on the importance of the input in the cost of producing the final product. Furthermore, there is often no way of calculating the effects of these disguised barriers in a straightforward manner. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Economic Studies Emerald Publishing

Export promotion: the role of transportation subsidies

Journal of Economic Studies, Volume 23 (4): 14 – Oct 1, 1996

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Publisher
Emerald Publishing
Copyright
Copyright © 1996 MCB UP Ltd. All rights reserved.
ISSN
0144-3585
DOI
10.1108/01443589610149915
Publisher site
See Article on Publisher Site

Abstract

An important objective of recent General Agreement on Tariffs and Trade (GATT)/World Trade Organization (WTO) rounds of trade negotiations has been to urge member countries to adopt trade policies that are more transparent in their effects. One example in this regard has been the move towards tariffication of non‐tariff barriers in an effort to make the price effects of trade barriers more readily discernible. This goal remains largely unfulfilled, as many countries continue to implement barriers that are often complicated and “disguised” in their effects. Instead of adopting direct export subsidies, for example, some countries subsidize the use of a specialized input into the production of a final product. While the effect of this subsidization is similar to a direct export subsidy, the effects are not transparent in that the subsidy applies to an input and the effect that the subsidy has on trade depends on the importance of the input in the cost of producing the final product. Furthermore, there is often no way of calculating the effects of these disguised barriers in a straightforward manner.

Journal

Journal of Economic StudiesEmerald Publishing

Published: Oct 1, 1996

Keywords: Canada; International trade; Quantitative techniques; Subsidies; Transport

References

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