ABSTRACT
An export subsidy, by definition, is one which exclusively supports goods and services marketed abroad. To camouflage the true nature of export subventions, Machiavellian governments may disburse taxpayers money in such a manner that the aid accrues not exclusively but only predominantly to exporting entrepreneurs. Exporters in several countries benefit from a remission of the social security employer contributions; Australian exporters receive a rebate on the labour tax. These are obvious statutory measures to reduce the labour cost in merchandise intended for foreign markets and, consequently, General Agreement on Tariffs and Trade feels entitled to intervene. But is nothing improper or illegal about the generally low wage levels in the Less-developed countries and the Comecon economies. The reasoning was to the effect that the substantive Mexican fuel subsidies are available not exclusively for exports but for all production. The reasoning was to the effect that the substantive Mexican fuel subsidies are available not exclusively for exports but for all production.
