Export subsidies are financial support provided by governments to domestic producers to lower the price of their goods in international markets, making them more competitive abroad.

• They can increase exports, protect domestic jobs, and help industries grow.
• However, they often cause overproduction, inefficient use of resources, and distortions in global trade.
• They may also provoke retaliation from other countries through their own trade barriers, leading to trade conflicts that harm the overall economy.