Countervailing

Countervailing refers to trade remedy measures taken by the government of an importing country against financial subsidies (such as cash grants, tax breaks, low-interest loans, etc.) granted by the government of an exporting country to its exporting enterprises, usually in the form of countervailing duties, to offset the harm caused by subsidies to the importing country's industry. Usage scenario: When the importing country's industry suffers material injury or threat due to subsidized foreign products, it may apply to the investigating authority to initiate a countervailing investigation. Notes: It is necessary to prove the existence of subsidies, injury, and causation; subsidies must be specific; investigation procedures must comply with the WTO Agreement on Subsidies and Countervailing Measures. Difference from anti-dumping: Anti-dumping targets dumping by exporters below normal value, while countervailing targets government subsidy behavior; countervailing involves governments and is more politically sensitive. Difference from safeguard measures: Safeguard measures address fair trade but surge in imports, without needing to prove unfair practices.