What is a countervailing duty?

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Multiple Choice

What is a countervailing duty?

Explanation:
Countervailing duties are tariffs imposed by an importing country to offset subsidies provided by the exporting country’s government to its producers. When subsidies make imported goods cheaper, they can injure domestic industries, so the importing country imposes a countervailing duty to level the playing field. This measure is specifically aimed at counteracting unfair government support, not at taxing exports, restricting imports through quotas, or fees related to joining international bodies. So the best description is that these are special taxes on imported goods designed to offset subsidies.

Countervailing duties are tariffs imposed by an importing country to offset subsidies provided by the exporting country’s government to its producers. When subsidies make imported goods cheaper, they can injure domestic industries, so the importing country imposes a countervailing duty to level the playing field. This measure is specifically aimed at counteracting unfair government support, not at taxing exports, restricting imports through quotas, or fees related to joining international bodies. So the best description is that these are special taxes on imported goods designed to offset subsidies.

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