OECD ARRANGEMENT AND THE OFFICIALLY SUPPORTED EXPORT CREDIT GLOBAL SCENARIO

Abstract

Over the 1970s and 1980s, the industrialized countries established an international regime, based on a set of rules agreed upon within the framework of the Organisation for Economic Co-operation and Development (OECD), aiming to restrain subsidies granted through officially supported export credits. Since the mid-2000s, some emerging countries started to offer a growing share of the overall volume of export credits, which has been challenging the efficacy of the existing regime. In this article, we will present a theoretical framework seeking to explain the reasons why States tend to subsidize their export, even though a non-cooperative equilibrium, in which all States act this way, is a suboptimal outcome. Additionally, we will seek to analyze the economic, political and institutional preconditions that made the construction of the existing regime possible and compare those preconditions with the ones prevailing in the contemporary scenario. Then, we will focus on the current practices of export credits agencies from China and the response taken from some of the OECD countries, aiming to demonstrate that the efficacy of the existing regime is under threat. After building a perspective of the global scenario, this article analyzes the main challenges faced by the Brazilian export credits policy. Finally, we will indicate some of the pros and cons of a possible accession of Brazil to the export credits guidelines set by the OECD Arrangement.

Keywords

• oecd
• arrangement
• export credits
• international regimes
• trade policy