Export subsidies, countervailing duties, and welfare

Against the Current: Countervailing Duties, Upstream Subsidies and the Trade Remedies Reform

Ambivalence underlies the U.S. trade policy on government participation in the marketplace. This ambivalence is evidenced by certain trade laws and agreements which are based on competing economic theories that simultaneously sanction free trade principles and government interventionist policies [2]. It is exemplified by certain countervailing duty (CVD) determinations made by the International...

Countervailing Duties, Antidumping Tariffs, and the Byrd Amendment: A Welfare Analysis*

This paper determines the effect that offset payments under the Continued Dumping and Subsidy Offset Act (CDSOA also known as the “Byrd Amendment”) have on tariff levels that are lobbied for by U.S. producer groups. We derive the optimum antidumping tariff that would maximize the welfare of producers receiving CDSOA offset payments. We compare and contrast this newly derived “optimal antidumpin...

A Welfare Comparison between Export Subsidies and Exchange Rate Depreciation

This paper develops a Bertrand price competition model with di erentiated goods in which export subsidies are compared to exchange rate depreciation as di erent government policies for promoting exports. National governments may wish to help domestic rms to expand market shares in pro table areas and might do this through either one of these two tools.Their e ects on equilibrium values are anal...

Tax Distortion, Countervailing Subsidies and Income Redistribution

A persistent controversy in the economics of higher education is the distributional consequences of tuition-fee subsidies. There are two points at issue. First, subsidies affect income distribution between rich and poor households, analyzed by cross-sectional studies. Second, there may also be long-run effects on income distribution, i.e., toward graduates who benefited from public higher educa...

The Economics of WTO Rules on Subsidies and Countervailing Measures