ABSTRACT
Competition in export credits, spurred on by countries actively using subsidized finance as a promotion weapon, has expanded the scope of official export credit activity well beyond what is needed to compensate for a lack of access to commercial finance. US policy aimed at reducing the distortions of subsidized competition in export credits has been to seek an effective international agreement controlling export credit subsidies. International agreements limiting government intervention in international trade are by their nature a result of compromise among differing national interests and trade policy goals. The status of export credit negotiations directly affects the Eximbank's policies. Export credits in the US market directly affect Eximbank because of the provision in the 197S Amendments for Eximbank financing of US suppliers facing subsidized financing competition in domestic sales. The chapter concludes with an analysis of the implications of the resulting Eximbank policies for broader trade policy objectives.
