Export Incentives

Export Incentives in International Trade

Meaning of Export Incentives, according to the Dictionary of International Trade (Global Negotiator): Assistance provided by governments to enable or assist their suppliers in securing foreign markets. Incentives take may forms. Some, such as assisting exporters in locating foreign importers through a country's foreign service post or providing government-sponsored credit insurance, do not distort markets. Others such as direct subsidies promote unfair competition and violate World Trade Organization rules. A third class of incentives -reduced taxation of export-related profits – are highly controversial and government programmes are referred to the World Trade Organization for rulings on a regular basis.