What is the primary purpose of countervailing duties charged in an importing country?

CA Foundation · Business Economics · PYQS · January 2026
What is the primary purpose of countervailing duties charged in an importing country?
(A) A. To counteract low quality of goods in importing countries
(B) B. To neutralize artificially low prices charged by exporter resulting from export subsidies in their home country
(C) C. To prevent tariff evasion by importers
(D) D. To address variations in the quality of goods in importing country

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. To neutralize artificially low prices charged by exporter resulting from export subsidies in their home country

Topics: International Trade

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