Export Subsidies

Export subsidies are financial aids given by governments to local producers, enabling them to sell goods at lower prices in international markets. Examples include grants, tax reliefs, and low-interest loans. These measures help domestic companies compete with foreign firms by reducing the costs of production and export.

Governments employ export subsidies to boost their country’s export volumes. This practice can lead to trade disputes, as it affects global market dynamics. The World Trade Organization regulates such subsidies to maintain fair competition.