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Upstream subsidies
08/12/2022 06:16
There are special rules allowing an investigation of subsidies to an input used in producing the product under investigation ('upstream subsidies'). For example, in an investigation of steel disc wheels from Brazil, the Commerce Department investigated possible subsidies to the Brazilian steel industry- not surprisingly, steel was the single most important input in making steel disc wheels.
These specific rules are beyond the scope of this chapter. From a practical perspective, this issue is most likely to occur when the United States has already conducted a countervailing duty investigation of an industry in a certain country and found subsidies, and then a downstream industry in the same country is subject to a new investigation. In such situations, foreign exporters have a much greater risk of needing to address these special rules.
