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Glite Dictionary
countervailing duty

countervailing duty

1 8.6
A tax on imported goods to reduce unfair government help to foreign companies
  • noun
  • /ˌkaʊntərˈveɪlɪŋ ˈdjuːti/
  • Formal
translation icon : derecho compensatorio
  • Many countries use a countervailing duty to ensure that their domestic industries are not harmed by subsidized foreign goods.
  • countervailing duty law
  • subsidies and countervailing duties
  • imposing countervailing duties

Examples

  • The SCM Agreement contains rules concerning government subsidies and the imposition of countervailing duties against such subsidies.

    Fiction book (2000)

  • The introduction of a countervailing duty helped stabilize the local market by leveling the playing field against subsidized imports.

  • Are we just going to get the lawyers to do the countervailing duty?

    Academic text (2000)

  • Another example can be found in the countervailing duty on subsidized imports.

    Academic text (1999)

  • Antidumping duties can be distinguished from countervailing duties, which are meant to overcome subsidies provided by a foreign government.

    Academic text (1993)

  • The tax was proposed to provide a restriction akin to a dumping duty or a countervailing duty that is imposed on goods.

    Academic text (1997)

  • The government decided to implement a countervailing duty on imports to protect local manufacturers from unfair competition.

Antonyms

subsidy
226 4.1

Money that a government gives to a business or industry to help keep prices low

How Protective

embargo
  • Formal
150 6.8
countervailing duty
  • Formal
1 8.6
anti-dumping duty
  • Specialized
6.8
tariff
270 5.6
free trade
57 3.5

Surface Forms

countervailing duty singular
countervailing duties plural

Morphology

countervailing + duty

The meaning is directly compositional: 'countervailing' means counteracting and 'duty' is a tax, so the phrase straightforwardly denotes a tax used to counteract subsidies. Although somewhat technical/legal in register, the overall sense is predictable from the constituents and is expressed similarly in many other languages, making it accessible to learners who know both words.

Etymology

The noun countervailing duty comes from the parts counter and vailing, where counter means 'to go against' and vailing means 'to balance an advantage'. So a countervailing duty is a tax put on imported goods to cancel government help for foreign producers and make trade fairer.