Promoting exports directly
Context
The logic of trade liberalization is that tariffs should be as low as possible to avoid any element of discrimination. But where significant import protection aims, governments can consider offsetting the discrimination against exports with administrative measures to provide imported inputs at world prices or with subsidies. Directly promoting exports in this way may also help to form a constituency for continued protection.
Claim
Promoting exports directly is crucial for economic growth and global competitiveness. In an increasingly interconnected world, countries that prioritize export strategies can boost their GDP, create jobs, and foster innovation. Neglecting this vital area stifles potential, leaving businesses struggling to reach international markets. Governments must implement robust policies and support systems to empower exporters, ensuring they can thrive on the global stage. Ignoring this issue jeopardizes national prosperity and undermines our position in the global economy.
Counter-claim
Such measures may come to be seen as a long-term alternative to further import liberalization. It is a difficult alternative to cuts in import protection. It raises administrative problems and often requires significant budgetary resources. Like any other selective intervention, it will also encourage rent seeking. The risk of trade disputes and of countervailing duties in importing countries has made direct export promotion increasingly unattractive.
Broader
Narrower
Facilitates
SDG
Metadata
Database
Global strategies
Type
(D) Detailed strategies
Subject
Communication » Promotion
Commerce » Import, export
Content quality
Yet to rate
Language
English
1A4N
J5533
DOCID
12055330
D7NID
217806
Last update
Dec 3, 2024