(U.S.) subsidy in the same industry. This does not create a level playing
field.
Softwood lumber (spruce, pine, and fir) is used extensively in North
America for the framing of houses and small buildings. For many years,
the United States levied countervailing duties on Canadian softwood
lumber exports, alleging that Canadian provinces unfairly subsidized
production.
Christina Richards/Shutterstock
Over time, the type of subsidy that is subject to countervailing duties has
evolved until almost any government program that affects industry now
risks becoming the object of a countervailing duty. Because all
governments, including most U.S. state governments, have programs that
provide direct or indirect assistance to industry, the potential for the use
of countervailing duties as thinly disguised trade barriers is enormous.