A trade remedy is a legal measure used by governments to protect domestic industries from unfair or disruptive import competition. Common trade remedies include anti-dumping duties, countervailing duties, and safeguard measures. These actions may be applied when imported goods are sold below fair market value, benefit from unfair foreign subsidies, or enter a market in volumes that seriously harm local producers. In international trade, trade remedies can increase landed costs and affect sourcing decisions.
A trade remedy is a government measure designed to protect domestic industries from unfair or injurious import competition. The three main types are anti-dumping duties, countervailing duties, and safeguard measures.
Types of Trade Remedies
- Anti-dumping duties (ADD): counter imports sold below fair market value
- Countervailing duties (CVD): counter imports benefiting from foreign government subsidies
- Safeguard measures: temporary import restrictions when a surge of imports causes serious injury
U.S. Trade Remedy Process
Domestic industries file petitions with the U.S. International Trade Commission (ITC) and the Department of Commerce. After investigation, orders are issued imposing additional duties at rates designed to offset the injury caused.
For related logistics context, see glossary entries on Anti-Dumping Duties, Countervailing Duties, Customs Entry, and Country of Origin.
