What is Countervailing Duties
Definition: Duties that are imposed in order to counter the negative impact of import subsidies to protect domestic producers are called countervailing duties.
Description: In cases foreign producers attempt to subsidize the goods being exported by them so that it causes domestic production to suffer because of a shift in domestic demand towards cheaper imported goods, the government makes mandatory the payment of a countervailing duty on the import of such goods to the domestic economy.
This raises the price of these goods leading to domestic goods again being equally competitive and attractive. Thus, domestic businesses are cushioned. These duties can be imposed under the specifications given by the WTO (World Trade Organization) after the investigation finds that exporters are engaged in dumping. These are also known as anti-dumping duties.
Also See: Import Tariff, Export Subsidy, Trade Sanction, Voluntary Export Restraints, Free Trade Agreements
Check out: Incurred But Not Reported Reserves Definition, Early Adapters Definition, Sunk Cost Dilemma Definition, Cash Cows Definition, Net Asset Value Definition, Arbitrage Fund Definition, Market Share Definition, 5 Forces Analysis Of The Environment Definition, Maven Definition, Guts Options Gut Spread Definition
Description: In cases foreign producers attempt to subsidize the goods being exported by them so that it causes domestic production to suffer because of a shift in domestic demand towards cheaper imported goods, the government makes mandatory the payment of a countervailing duty on the import of such goods to the domestic economy.
This raises the price of these goods leading to domestic goods again being equally competitive and attractive. Thus, domestic businesses are cushioned. These duties can be imposed under the specifications given by the WTO (World Trade Organization) after the investigation finds that exporters are engaged in dumping. These are also known as anti-dumping duties.
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Also See: Import Tariff, Export Subsidy, Trade Sanction, Voluntary Export Restraints, Free Trade Agreements
Check out: Incurred But Not Reported Reserves Definition, Early Adapters Definition, Sunk Cost Dilemma Definition, Cash Cows Definition, Net Asset Value Definition, Arbitrage Fund Definition, Market Share Definition, 5 Forces Analysis Of The Environment Definition, Maven Definition, Guts Options Gut Spread Definition
