Chapter 10.D: Agricultural Export Subsidies

Governments can intervene to both promote and restrain exports. Export-promoting policies include export subsidies, while export-reducing policies range from outright bans to export licensing regimes. Under the Uruguay Round Agreement on Agriculture (URAA), countries agreed to cap and reduce their export subsidies, and not to introduce new export subsidies. These rules have helped lead to a reduction in export subsidies. Governments may also introduce measures to reduce or control exports. Such policies are widely employed and do not appear to be disappearing over time (Figure 1).