Domestic support and export subsidy policies have been employed largely by developed economies to protect their agricultural sectors. Under the Export Competition commitments, each member undertakes not to provide export subsidies or any financial contribution other than in conformity with the Agreement and with the commitments as specified in that member's schedule. The financial contribution may involve a direct transfer of funds, potential direct transfers (such as loan guarantees), the forging of revenue by the government, or the public provision of goods and services, other than infrastructure, or the government purchase of goods; or any form of income or price support. The Agreement prohibits subsidies contingent upon export performance or upon the use of domestic goods in preference to imported goods. GATT members have also entered into commitment to reduce those classes of subsidies specified in the Agreement as actionable with accompanying target dates and a desired level of action required. The bound reduced of export subsidies are defined in Article 9(1) of the Agreement. These are to be reduced by 24% in terms of value (budget outlays) and 14% in volume over a 10-year period by developing countries. For developed countries, the corresponding figures are 36% and 21%
over 6 years.
African Development Bank Economic Research Working Paper Series Enhancing Africa’s Trade: From Marginalization to an Export-Led Approach to Development Milton A. Iyoha Professor, Department of Economics & Statistics University of Benin, Nigeria Economic Research Working Paper No 77 (August 2005)
To learn more about this author, visit African Development Bank's Website.
Like this article? Share it with your friends
|
|
African Development Bank
(Visit African's Website)
The African Development Bank is the
premier financial development institution
of Africa, dedicated to combating poverty
and improving the lives of people of the
continent and engaged in the task of
mobilizing resources towards the economic
and social progress of its Regional Member
Countries.The Bank’s s mission is to
promote economic and social development
through loans, equity investments, and
technical assistance.
The ADB is a multilateral development bank
whose shareholders include 53 African
countries and 24 non-African countries
from the Americas, Asia, and Europe. It
was established in 1964, with its
headquarters in Abidjan, Côte d’Ivoire,
and officially began operations in 1967.
|
|
|
African Development Bank's
Complete
List Of
African-Accounts
Articles
|
|
If you enjoyed this article, get African Development Bank's Complete List of African-Accounts Articles For FREE!
|
|
|
|
![[Get Copyright Permissions]](http://license.icopyright.net/images/icopy-w.gif){kind=small}
