Event 14 Oct. 2022
Curtis Provides Capacity Training to the Government of Uganda
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Event 21 Sep. 2022
Kalidou Gadio Speaks at AIEN 2022 International Energy Summit
News 15 May. 2023
Curtis represents e-commerce retailer in its fight to recover monies withheld by PayPal, the global payment giant
News 16 Dec. 2022
Curtis Trade Team is top ranked in Chambers Asia-Pacific 2023
Event 08 May. 2023
Partner Irene Petrelli to Participate in ICC YAAF Event
News 02 May. 2023
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Event 23 May. 2023
Partners Luciana Ricart and Fernando Tupa Will Teach a Workshop on Hearings in Investment Arbitration for Arbanza School of Arbitration’s Online Program
Publications 23 Feb. 2023
Fernando Tupa Publishes Book on Forum-Specific Consent to International Arbitration in Investment Agreements
Event 03 May. 2023
Dr. Borzu Sabahi to Speak at ICSID-ADGM Joint Conference: Investment Protection and Armed Conflict
News 27 Sep. 2022
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News 25 May. 2023
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News 06 Mar. 2023
Russia Sanctions at the First Anniversary: An Overview of Current Sanctions in the US, UK, and EU and How Global Companies Can Navigate Evolving and Conflicting Sanctions Regimes
Client Alert 30 Aug. 2022
The EU Adopts the “Maintenance and Alignment” Sanctions Package
Client Alert 24 Jun. 2021
Update on Virtual Notarization (Executive Order 202.7) During the COVID-19 (Coronavirus) Pandemic (Updated: June 24, 2021) — U.S. Insight
Update on Virtual Witnessing (New York Executive Order 202.14) During The COVID-19 (Coronavirus) Pandemic (Updated: June 24, 2021) — U.S. Insight
International Trade
Countervailing duties are duties imposed by nations that are intended to offset, or “countervail,” the price effect of significant foreign government subsidies on a product or good. For example, if Nation A provides large exploration and production subsidies to oil and gas firms, Nation B may impose a countervailing duty on oil and gas from Nation A to put its domestic oil and gas producers on an equal footing with its foreign competitors.
The importer of record pays all Customs duties, including countervailing duty, associated with the entry of a good into a country. Of course, the answer isn’t that simple, as these costs are almost always passed on in some way, shape, or form to the end consumer of a product in the form of a higher price. In a fuller sense, then, everyone in the supply chain pays a portion of a countervailing duty.
The function of a countervailing duty is to counteract the effect of an unfair or excessive subsidy provided by a foreign government to the producers or sellers of a good. Because the producers or sellers of a good are unable to sell their product at an artificially low price, their domestic competitors are able to compete fairly.
Typically, the nation who seeks to impose a countervailing duty must conduct an in-depth investigation of the industry and country where the products or goods are produced. Once the amount and impact of the offending subsidies are calculated, a countervailing duty that would increase the price of the good to where it would be without the subsidy is imposed. The procedures for this are set out in the WTO Agreement on Subsidies and Countervailing Measures.
Daniel Porter
Partner
ITC Injury Proceedings
WTO and International Trade Dispute Settlement
Trade Remedy Practice
Economic Sanctions
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