A countervailable subsidy refers to financial aid provided by a foreign government to a company that exports goods to another country. This subsidy can come in various forms, including tax benefits, loans with low interest rates, or support for research and development. If the importing country determines that this subsidy is negatively impacting its domestic industry, it has the authority to impose a countervailing duty on the imported goods. The purpose of this duty is to neutralize the advantage that the subsidy provides to the foreign company.
Countervailable subsidies refer to financial contributions made by foreign governments or public entities that provide benefits to exporters in another country. These subsidies can come in various forms, including tax breaks, low-interest loans, or research-and-development support. For instance, if a foreign government offers a low-interest loan to a company that exports goods to the United States, it would be considered a countervailable subsidy. In such cases, the United States may impose a countervailing duty on these goods if they pose a threat to domestic industry. Another example of a countervailable subsidy is when a foreign government provides raw materials to a company at below-market prices, giving them an unfair advantage in the global market. This type of subsidy can harm domestic industries in other countries and may lead to the imposition of countervailing duties. In summary, countervailable subsidies are financial contributions made by foreign governments that benefit exporters and can harm domestic industries in other countries. To counter these subsidies, countervailing duties may be imposed on the imported goods.
A countervailable subsidy is a financial assistance provided by a government or public entity to a domestic industry that gives it an unfair advantage over foreign competitors.
A countervailable subsidy can distort international trade by making it difficult for foreign competitors to compete on a level playing field.
The process for determining if a subsidy is countervailable involves an investigation by the relevant government agency, which will examine the subsidy and its effects on the domestic and international markets.
If a subsidy is found countervailable, the importing country may impose countervailing duties on the subsidized products to offset the unfair advantage given to the domestic industry.
Yes, countervailing duties can be imposed retroactively for up to 90 days prior to the initiation of the investigation.
Yes, a countervailable subsidy can be challenged by affected parties through the relevant government agency or through the World Trade Organization.
A countervailable subsidy is a financial assistance provided by a government or public entity, while an anti-dumping duty is a tariff imposed on imported goods that are sold at a lower price than the domestic market price.
No, a countervailable subsidy can only be provided by a government or public entity.
The World Trade Organization oversees the rules and regulations related to countervailable subsidies and provides a forum for resolving disputes related to them.
A company can protect itself from countervailing duties by ensuring that it is not receiving any countervailable subsidies and by monitoring the actions of its competitors to ensure that they are not receiving any unfair advantages.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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