Countervailing duties (
CVDs), also known as
anti-subsidy duties, are trade import duties imposed under
World Trade Organization (WTO) rules to neutralize the negative effects of
subsidies. They are imposed after an investigation finds that a foreign country subsidizes its exports, injuring domestic producers in the importing country. According to
World Trade Organization rules, a country can launch its own investigation and decide to charge extra duties, provided such additional duties are in accordance with the
GATT Article VI and the GATT Agreement on Subsidies and Countervailing Measures.