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Consider following statements about Countervailing Duty (CVD)
1. It is imposed on cheap imported goods being subsidized by producing country to make prices equal to but not higher than domestic prices.
2. It is allowed under WTO.
Codes:
Only 1
Only 2
None
Both
1st statement is incorrect. Countervailing duties (CVDs), also known as anti-subsidy duties, are trade import duties imposed under World Trade Organization (WTO) rules to neutralize the negative effects of subsidies.
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