There are direct and indirect export subsidies. The export subsidies listed in the subsidy and countervailing duty rules reached in the Tokyo Round mainly include: 1. Political theory directly subsidizes the export performance of departments or enterprises; 2. Allow exporters to keep part of export foreign exchange; 3. Give exporters a discount when collecting direct taxes; 4. Exemption and reduction of indirect taxes on export commodities.
GATT is an anti-export subsidy. It stipulates that if a contracting state directly or indirectly uses any form of export subsidy, it shall report its nature, degree and estimated impact in writing. If the interests of other contracting parties are harmed, both parties shall limit the possibility of using subsidies through negotiations. Although GATT has no strict restrictions on export subsidies, it does not allow export subsidies for commodities other than primary products.
Some countries impose countervailing duties on goods subsidized by exporting countries at the time of import to offset the impact of export subsidies. On the issue of agricultural products, the interests among GATT members are very deep. Countries with high production efficiency, such as Canada, Australia, New Zealand and the United States (for some products), demand to cancel or greatly restrict any form of export subsidies, while Europe * * * thinks that subsidies are of great value because they are crucial and quite common with agricultural policies, but at the same time advocates some form of market segmentation to limit costs. In this regard, the United States resolutely opposes it.
Special tariffs imposed on imported goods that exceed the normal tariffs. This tariff is a response to the favorable economic conditions of foreign suppliers who receive import subsidies from the government. The purpose of countervailing duty is to offset the impact of incentives and subsidies from foreign competitors, thus protecting manufacturers in importing countries. Such incentives and subsidies include direct payments to foreign manufacturers to stimulate exports; Tariff reduction and exemption will be given to export commodities, and low-cost financing or similar material subsidies will be given to export projects. The United States implements subsidy tax through the International Trade Bureau of the Ministry of Commerce.