Countervailing Duty
/ˌkaʊntərˈveɪlɪŋ ˈdjuːti/
Definitions
- (n.) A tariff imposed by a domestic government on imported goods to offset subsidies made to producers or exporters in the exporting country, aiming to protect domestic industries from unfair competition.
The government imposed a countervailing duty to neutralize the effect of foreign subsidies.
Forms
- countervailing duty
- countervailing duties
Related terms
See also
Commentary
Countervailing duties are a form of trade remedy used in international trade law to counteract subsidies granted by foreign governments. When drafting or interpreting, clarity about the origin of subsidies and calculation of duties is essential.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.