Doha Reform of WTO Export Credit Provisions in the SCM Agreement: The Perspective of Developing Countries

Abstract

Export credit instruments are important tools for enterprises used by developing and developed countries to face risks of default of transactions and to offer purchasers extended payment of their goods. Although they contribute to foster international trade, their misuse is likely to distort competition in the marketplace. In order to prevent competition being based on the amount of support received by the domestic Export Credit Agencies more than on price and quality of goods traded, states developed international rules within the framework of the Organization for Economic Cooperation and Development (OECD) and World Trade Organization (WTO). However, the manner in which those rules have been written creates an unbalanced playing field between developing and developed countries. During the Doha Development Round, some countries proposed amendments in the current WTO norms in order to modify items (j) and (k) of the Illustrative List of Annex I of the Subsidies and Countervailing Measures (SCM) Agreement and reduce the unbalances due to the financial and risk conditions of developing countries against developed countries. This contribution will analyse the interests of developing and developed countries in the Doha proposed reforms aimed at restoring a level playing field among WTO Members.