Export Subsidy

An export subsidy is a government payment or benefit provided to domestic producers to encourage them to sell more goods abroad. By lowering the cost of exporting, these subsidies help make a country's products more competitively priced in international markets. The goal is to boost exports, support local industries, and strengthen the economy. However, export subsidies can also lead to trade distortions, create unfair advantages over foreign competitors, and may violate international trade agreements if they are considered to give unfair assistance.