GATT allows importing countries to retaliate against export subsidies throughSelect one:a.Increase in pricesb.Import dutiesc.Countervailing dutiesd.Export duties
Question
GATT allows importing countries to retaliate against export subsidies throughSelect one:a.Increase in pricesb.Import dutiesc.Countervailing dutiesd.Export duties
Solution
The General Agreement on Tariffs and Trade (GATT) allows importing countries to retaliate against export subsidies through countervailing duties. Here's a step-by-step explanation:
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GATT is an international trade agreement that aims to reduce barriers to trade, such as tariffs and subsidies.
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Export subsidies are financial benefits given by a government to domestic producers to encourage exports. This can make the products cheaper in the international market, potentially harming producers in importing countries.
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To protect their domestic industries, importing countries can retaliate against these subsidies. One way to do this is through countervailing duties.
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Countervailing duties are tariffs imposed on imported goods that have benefited from export subsidies. They are designed to level the playing field and counteract the negative effects of the subsidies.
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Therefore, the correct answer is c. Countervailing duties.
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