babel-plugin-transform-export-extensions enables the use of export extensions in Babel, allowing developers to write code like export { foo } from "./module.js" and export * from "./module.js";. This simplifies module re-exporting, improving code readability and maintainability. The plugin ensures proper translation of these modern syntax features into compatible JavaScript code, facilitating broader compatibility across different environments and build tools while leveraging the benefits of the updated export syntax.