(CVDs) are a means to restrict international trade
. They are imposed when a foreign country subsidizes
its exports, hurting domestic producers. According to World Trade Organization
rules, a country can launch its own investigation and decide to charge extra duties, provided such additional duties are in accordance with the WTO's Dispute Settlement Mechanism (DSM). Since countries can rule domestically whether domestic industries are in danger and whether foreign countries subsidize the products, the institutional process surrounding the investigation and determinations has significant impacts beyond the countervailing duties.