Research On The Legal System Of Export Credit Under WTO Framework

To support and expand exports of capital goods, the government provide interest subsidy which is named export credit encouraging financial institutions provide long-term loans to domestic exporters and foreign importers. It plays an important role in increasing exports, adjusting domestic industrial structure and promoting economic development. In order to promote foreign trade, countries are developing unique export credit and formed an operational system of its own. The economic system has been adjusted a lot since China joined the WTO. But we still have a long way to go before the external trade is in line with the international. Therefore, in the new century, studying the WTO rules relating to export credit system, as well as considering how to support and promote trade under these standards must be addressed in foreign trade development strategy.By introducing the basic theory of export credit and specific practice of different countries, then introduced the first part of the article, in the first part of writing, this paper studied the rules of WTO relating to the export credit systematically with the method of comparative analysis and linking theory with practice. In the WTO framework,"Agreement on Subsidies and Countervailing Measures","Gentleman's Agreement"of OECD and"Agriculture Agreement"signed by Uruguay Round are the specifications related to export credit. This part of the main focus on international export credit related specifications provision, the detailed analysis of the text on the basis of research specification in specific adjustment range and effectiveness of relationships.The second part analyses the clauses explicitly. What's more, the operating procedures for dispute-settling mechanism and the way of corresponding organization's interpretation can be explained very well. According to the cases, corresponding provisions of the WTO agreement can not eliminate the debate among countries in the field of export credit, which is also reflected in the game undertaken by all parties for economic development under multilateral trading system. This is more prominence between developing and developed countries.The third part will examine trends of export credit system under the framework of WTO. Analysis of some representative a new round of negotiations, such as the national legislature in a developing country, Brazil and India, as a developed member the European Union and the US, with some concrete suggestions for negotiations, looking to the WTO trends, according to the prospect of export credit regulation.Finally, the paper will fix its view in the development of China's export credit system and analyses the disadvantage of the regulation so that put forward a sound proposal. China's export credit business was set up in 1980 and be managed by the Export-Import Bank of China officially in 1994. Over the past 10-odd years, as a policy bank, Export-Import Bank has been playing an active role in the rapid development of export credit, and enhance the international competitiveness of our exports. However, the export credit system is still not perfect, there are a lot of problems, such as a lack of specific legislation and relevant international studies of regulations, unclearness of institutional orientation. Based on the study of export credit under WTO regulations, this paper attempts to find out the defaults of China's export credit system and offer a proposal especially on the legislation. So that we can make further perfecting on the legal system of export credit which can be in line with WTO provisions as well. In the face of new challenges, we will set foot on the international market and promote our foreign economic development better.