The US department of commerce recently published a final regulation for imposing countervailing duties on products that benefit from unfair currency subsidies which, in turn, harm the domestic industry. “This Currency Rule is an important step in ensuring that unfair trade practices are properly remedied,” said secretary of commerce Wilbur Ross.
“While successive administrations have balked at countervailing foreign currency subsidies, the Trump Administration is taking action to level the playing field for American businesses and workers,” he said in a statement posted on the department’s website.The US department of commerce recently published a final regulation for imposing countervailing duties on products that benefit from unfair currency subsidies which, in turn, harm the domestic industry. "This Currency Rule is an important step in ensuring that unfair trade practices are properly remedied," said secretary of commerce Wilbur Ross.#
US law defines a countervailable subsidy as a financial contribution from a government or public entity that is specific and that provides a benefit to a foreign producer or exporter.
The final regulation identifies the criteria the department would use to determine if countervailing duties should be imposed for subsidies in the form of currency undervaluation that results from government action on the exchange rate during the relevant period.
In assessing whether there has been such government action, the commerce department will not normally include monetary and related credit policy of an independent central bank or monetary authority.
In May 2019, the department published a proposed version of this currency regulation. After its publication, the department received dozens of public comments that helped to inform the final rule regarding the issue of subsidies resulting from currency undervaluation.
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