Describe the four legal procedures available to U.S. firms to seek protection from foreign competition. What circumstances would warrant a request under each? How frequently is each used? What would be the result if the firm won?

What will be an ideal response?


Countervailing duties are granted in response to foreign subsidies.
Anti-dumping duties are granted in response to imports being sold at “unfair” prices or dumping.
Escape clause relief is granted as a temporary protection against a sudden surge in imports.
Section 301 retaliation is used to unilaterally punish a nation for “unfair” trade.
Generally, tariffs are imposed if a firm is successful in its appeal for subsidies, dumping, or escape clause relief. Section 301 is likely to be a broader response to a country’s practices. Anti-dumping duties are the most common today.