Countervailing duties

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Countervailing duties (CVDs), also known as anti-subsidy duties, are trade import duties imposed under World Trade Organization (WTO).^[1] They are applied following an investigation that determines a foreign country's subsidies on exports have harmed domestic producers in the importing country. These duties aim to counterbalance the adverse impacts of such subsidies.^[2][1]

According to World Trade Organization rules, a country can launch its own investigation and decide to charge extra duties, provided such additional duties are in accordance with the GATT Article VI and the GATT Agreement on Subsidies and Countervailing Measures.

Since countries can rule domestically whether domestic industries are in danger and whether foreign countries subsidize the products, the institutional process surrounding the investigation and determinations has significant impacts beyond the countervailing duties.