Information note on the recently agreed changes to the rules on minimum premium for officially supported export credits
After two years of intensive negotiations, the Participants to the Arrangement on Officially Supported export Credits, at their 112th Meeting held on 3 February 2010, concluded the details of an agreement to revise and expand the premium-related rules of the Arrangement [TAD/PG(2010)10].
The rules and principles of the Knaepen Package were designed with the perspective of the exporter in mind. This means that they are meant to provide for a level playing field with regard to the premium cost of official export credit support for exporters in competition for overseas sales. Since official export credit support is provided through insurance, guarantees and direct credits, these different systems are taken into account in the premium rules; mainly through differentials in the required Minimum Premium Rates (MPRs) for various types of products. The premium rules of the arrangement on officially supported export credits (the knaepen package) were explained in [TD/PG(2004)10/FINAL].
The Knaepen Package was concluded on 20 June 1997 and integrated formally into the Arrangement in December 1997. The actual rules of the Arrangement related to premium can be found in Articles 22 - 28, 43, 44 and Annexes V through VIII. References in this document to the “Knaepen Package” should be understood to represent these articles and annexes as a whole.
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