delete The Export and Investment Guarantees (Limit on Exports and Insurance Commitments) (No. 2) Order 2024
This Order increases the maximum financial commitments the UK government can guarantee under the Export and Investments Guarantees Act 1991 from the previous limit to 77,700 million special drawing rights (SDRs). The scheme provides government-backed insurance and guarantees to support British exporters and investors, covering risks like non-payment by foreign buyers or political instability abroad. The limit increase expands the scale of state exposure to support more such transactions.
Export credit guarantees distort free markets by artificially propping up otherwise uncompetitive exports, misallocating capital, and exposing taxpayers to foreign credit risks. Private insurance markets exist to price and underwrite genuine commercial risks. Government intervention creates moral hazard, encourages malinvestment, and picks winners in trade—exactly the economic calculation errors that Mises and Hayek warned against. The scheme should be wound down, not expanded.