Anti-Dumping and Countervailing Duty (AD/CVD)

Anti-Dumping and Countervailing Duties (AD/CVD) are tools used by countries to protect their domestic industries from unfair trade practices. Anti-dumping duties are tariffs imposed when foreign companies sell products at unfairly low prices, harming local businesses. Countervailing duties target subsidies given by foreign governments that make exports cheaper than they should be, giving those producers an unfair advantage. Essentially, these measures aim to level the playing field, ensuring fair competition by compensating for price distortions caused by unfair pricing or government support.