Plain meaning
In trade-remedy law, a financial contribution or support by a foreign government that confers a benefit and may be countervailable.
Also called
subsidized goods
Key points
- A subsidy can involve grants, loans, tax incentives, goods or services, or other government support.
- To be countervailable, the subsidy must meet legal tests under trade-remedy rules.
- CBSA investigates subsidy amount, while the CITT considers injury to domestic industry.
- Subsidy analysis is different from dumping analysis, although both can apply to the same imported goods.
Why it comes up
Subsidy findings can lead to countervailing duties and affect import costs, domestic industry protection, and trade disputes.