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Dumping and Subsidies - Assignment Example

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The paper "Dumping and Subsidies" explores the cases when the country of import can take stern measures through the introduction of dumping duties. On the other hand, subsidizing occurs when the foreign government provides financial assistance to goods imported into the local market…
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Dumping and Subsidies
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Extract of sample "Dumping and Subsidies"

Some of the common subsidies may include loans at low-interest rates, grants, and tax incentives. The number of goods that have been subsidized may be offset through applying the countervailing duty (Giannakopoulos, 2004).

In every subsidy and dumping investigation, it is to be established whether an industry has been injured or threatened with a material injury by the imported products. In addition, it must establish whether the industry has become materially retarded because of the imports that are under investigation which have been sold at lower prices than the fair value in the local market or subsidized. In case the investigations turn negative, the case is terminated. However, in case the investigations turn negative, the extent of the injury is determined whether it is negligible (Bentley & Silberston, 2007). In case it’s not, a countervailing duty is issued and enforced by the Customs Service.

 

 

 

 

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