A subsidy to exports; that is, a payment to exporters of a good per unit of the good exported. Sometimes applied to any payments to producers that lead to an increase in exports.
Any form of government payment or other benefit provided to domestic producers of goods destined for sale in foreign markets. Examples include preferential government financing, income tax holidays, and rebates of direct taxes on exported products. Reflecting the belief among the founders of GA TT that export subsidies can distort normal trading patterns, GATI' Article 16 proscribes export subsidies on non-primary products that result in lower prices in foreign markets than prices charged for the "like product" in the domestic market. The Tokyo Round yielded an agreement that extended Article 16 by banning all export subsidies by industrial countries on manufactured and semi-manufactured goods (see Subsidies Code). See also domestic subsidy and countervailing duty.
a clear case of giving the foreigner something for nothing, by selling him goods for less than it costs us to make them