Economics Trade Barriers Questions
Countervailing duties are a type of trade barrier that involves the imposition of additional import taxes or tariffs on goods that are subsidized by foreign governments. These duties are implemented by a country to counteract the negative effects of foreign subsidies on domestic industries. The purpose of countervailing duties is to level the playing field and prevent unfair competition by making the subsidized goods more expensive and less competitive in the domestic market. By imposing countervailing duties, countries aim to protect their domestic industries from the adverse effects of subsidized imports and maintain a fair and competitive trading environment.