Some countries pay export subsidies in order to dispose of their surplus agricultural production on world markets. These payments impose substantial costs on taxpayers in the subsidizing countries and reduce the world prices to the detriment of producers in developing and least developed countries. However, they also benefit consumers in food-importing countries, many of which are developing. This analysis suggests that while longer-term reforms of export subsidies are desirable, the immediate removal of export subsidies is likely to cause some hardships for some developing country consumers, which will need to be addressed with appropriate support mechanisms.

Roadblock to Reform: The Persistence of Agricultural Export Subsidies (Policy Issues in International Trade and Commodities Study) PDF

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