Are Subsidies to be Blamed? A Reexamination of U.S. Countervailing Duty on Hog Imports From Canada

This paper studies the relationship between the profits of firms and countervailing duties in vertically related markets characterized by oligopolies. It is shown that a countervailing duty equal to the foreign export subsidy is required to neutralize the impact of foreign export subsidies on the profits of domestic firms. The domestic country has an incentive to impose a countervailing duty on foreign final goods even though foreign governments only subsidize exports of intermediate goods. In addition, foreign exporting firms may benefit from a countervailing duty more than a foreign export subsidy.

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Why are Countervailing Duties Imposed? The Firms’ Viewpoint

Wang

2009

SSRN Journal

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Are Subsidies to be Blamed? A Reexamination of U.S. Countervailing Duty on Hog Imports From Canada

Cited by 3 publications

References 8 publications

Illusion therapy: How to impose an economic shock without social pain

Illusion therapy: How to impose an economic shock without social pain

The Profits of Firms and Countervailing Duties in Vertically Related Markets

Why are Countervailing Duties Imposed? The Firms’ Viewpoint

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