No. 4. Export competition: selected issues and the empirical evidence
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There is broad agreement that interventions to support exports of agricultural commodities have the potential to distort competition on world commodity markets. In particular, the use of export subsidies can displace not only third-country exporters but also domestic producers in importing countries, with particularly detrimental effects to the development prospects of developing countries. In principle, it is also possible that other government interventions, e.g. through the use of export credits, the activities of state trading enterprises, or the use of food aid to dispose of surplus production, could have similar effects to direct export subsidies in distorting markets and trade flows.