14/11/17 Countervailing Duties
Countervailing duties apply to offset any competitive advantage held by foreign businesspersons due to export subsidies paid by their home governments. As with dumping laws (discussed in our previous e-Legal Lesson), material domestic injury is required to invoke countervailing duties. Defining subsidies is also difficult.
The countervailing duties are imposed in an amount equivalent to the foreign subsidy and in addition to whatever normal duty would be imposed on the goods.
In our next e-Legal Lesson: escape clause.