One of the most enduring problems inLatin-American countries is the legislation for exporting goods. Export hasrisen in the past years, but is still lacking when compared to countries like Spain and Australia.
Improving export conditions may help thedistribution, in turn improving the state of the market. Less governmentinterference is also crucial in keeping up with neighbouring states like Brazil.Furthermore, a more realistic exchange rate can be a stimulant for a profitableexport. A way to reach this is to introduce a tax on import and to subsidiseexport. Of course, government funding has its limitations when dealing with setexport rates, like in the WTO-Mercosur treaty. However, even within theseboundaries, creative solutions can be made.
Possibilities for government funding
Three forms of government backing springto mind: a restitution for exporters to prevent false competition; favourableloans to exporters to meet international interest rates; and providingfavourable credit.
Three forms of government backing springto mind: a restitution for exporters to prevent false competition; favourableloans to exporters to meet international interest rates; and providingfavourable credit.
Another possibility to enforce marketposition is to lower costs, like a decrease in wage taxation. All of thesechanges are difficult to implement. But the export of fruit like the citrus isnow so dire that something has to happen. Exporters are now forced to take bigfinancial risks. A government mitigation of existing legislation seemsunavoidable to improve the export of the citrus.
Source: Lagaceta