# Countervailing Duty

*Last updated: 2026-06-26*

> A countervailing duty (CVD) is imposed on imported goods when foreign government subsidies artificially lower the export price and thereby cause or threaten material injury to domestic producers in the importing country.

A countervailing duty (CVD) is imposed on imported goods when foreign government subsidies artificially lower the export price and thereby cause or threaten material injury to domestic producers in the importing country. The investigation is typically triggered by a petition from the affected domestic industry and must comply with the WTO Agreement on Subsidies and Countervailing Measures (SCM Agreement). The duty may not exceed the amount of the subsidy determined to exist. Countervailing duties differ fundamentally from antidumping duties: CVDs address government-granted financial contributions, while antidumping duties respond to below-normal-value pricing by individual exporters.

**Source:** [https://www.wto.org/english/tratop_e/scm_e/scm_e.htm](https://www.wto.org/english/tratop_e/scm_e/scm_e.htm)

## Quick Facts

| Property | Value |
|---|---|
| Term | Countervailing Duty |
| Language | EN |
| Word count | 94 |
| Last updated | 2026-06-26 |
| Source | https://www.wto.org/english/tratop_e/scm_e/scm_e.htm |

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