What is Anti-Dumping and Countervailing Duties?

Anti-dumping and countervailing duties are both forms of trade remedies employed by governments to protect domestic industries from unfair competition by foreign producers.

  1. Anti-dumping Duty: This duty is imposed on imported goods that are sold at a price lower than their fair market value in the importing country, causing injury to domestic producers of similar products. It aims to level the playing field for domestic producers by offsetting the advantage gained by the dumping exporter.
  2. Countervailing Duty: This duty is levied on imported goods that benefit from subsidies provided by their government, which are deemed to be harmful to domestic industries producing similar products. It seeks to neutralize the effect of such subsidies and prevent unfair competition that could harm domestic producers.

Both anti-dumping and countervailing duties are usually imposed after investigations by national authorities to determine whether dumping or subsidization is occurring and whether it is causing material injury or threatening to cause material injury to the domestic industry. These duties are often temporary measures intended to provide relief to domestic industries while they adjust to market conditions or pursue other remedies.

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