Export subsidies, countervailing duties, and welfare

Using a simple Cournot duopoly model, this paper provides an important policy implication for trade disputes involving export subsidies. In this paper, the possibility that a foreign export subsidy could benefit the domestic country as well as the foreign country by appropriately using countervailing duties is identified.

Antidumping and countervailing duties in a Western Hemispheric free trade agreement

Includes bibliography

Countervailing Duties in the USA

This paper reveals the characteristics of the ITC's decisions on countervailing duties, which have seldom been studied. The empirical evidences based on time series data show that there is a long run equilibrium relationship between affirmative countervailing decisions and macroeconomic variables such as economic growth rates and import penetration ratios. The error correction models show that there is a unidirectional causality from affirmative countervailing decisions to slower economic growth.

A aplicação do acordo sobre subsídios e medidas compensatórias pelo estado brasileiro

The Multilateral Trading System has evolved and presented new international mandatory rules to States. Along with the World Trade Organization constitutive treaty, Brazil has incorporated the Agreement on Subsidies and Countervailing Measures (ASCM) in the national legal system. That treaty limits de scope of subsidies concession by governments since this practice can constitute a mechanism of commercial disloyalty, affecting national industrial development in the importing country. At the same time, the multilateral agreement grants defense legitimate instruments to States, among them the possibility of domestically and unilaterally imposing countervailing measures to subsidized products that enter the national territory. Since the issue concerns both international and domestic level in complementary grounds, this research, besides investigating the treaty related obligation, aims at studying the national legal fundaments to ASCM s application by the Brazilian State. Therefore, the essential point resides in the State s conduction of its international trading and also in its available and constitutionally established mechanisms of economic intervention. State s regulating power reveals itself as a fundamental prerogative to succeed in the internalization of international agreement s requirements in the domestic legal system, which represents a basic prerequisite to the implementation of countervailing measures. Once the whole normative outlines are apprehended, this study shall scan the administrative process of trading defense main elements, along with the means of controlling public administration acts. The action taken by the public organs that directly intervene in foreign trade shall be analyzed as well, so as to enable reasoning if the unilateral application of countervailing duties by the Brazilian State is happening on legitimacy grounds