More extensive retaliation can be envisaged, including the imposition of import surcharges or countervailing duties, if currency manipulation is deemed a countervailable
subsidy like any other.
2378, 111th Congress (2009) (requiring the Department of Commerce to investigate foreign government currency practices as a countervailable
subsidy); Trade Facilitation and Trade Enforcement Act of 2015.
to consider the nature of any countervailable
subsidy in determining
For the purpose of the countervailing duty investigations, countervailable
subsidies referred to financial assistance from foreign governments that benefit the production of goods from foreign companies and are limited to specific enterprises or industries.
Department of Commerce determined that Chinese manufactured crystalline silicon solar cells, a key component of the most common type of solar panel, had dumping margins ranging from 18.32 to 249.96 percent [ITA 2012], In addition, in the course of its joint CVD investigation, Commerce found that Chinese manufacturers had received countervailable
subsidies between 14.78 and 15.97 percent, including an export subsidy rate of 10.54 percent [ITA 2012], As a result of these investigations, the Department of Commerce implemented AD duties equal to the dumping margins of the Chinese manufactured solar cells reduced by the export subsidy rate, in order to avoid double charging for the same violation in its collection of CVD duties.
(125.) Aluisio de Lima-Campos, A Case for Misaligned Currencies as Countervailable
Subsidies, 33 (UNCTAD 2012), http://unctad.org/meetings/en/SessionalDocuments/ditc_dir_2012d2_deLima-Campos.pdf.
Last August, the Commerce Department preliminarily determined Mexican sugar imports were subject to countervailable
government subsidies at margins ranging from 2.99 percent to 17.0 percent for individually investigated exporters, with an "all-others" rate of 14.87 percent.
Funds will be allocated to the countervailable
subsidy, which includes the maintenance of municipal administrations, and capital costs.
was a countervailable
subsidy, the Commerce Department stated that
112-99 amended the countervailing duty statute by adding a new provision that gives the DOC the authority to adjust the antidumping duty amount to take account of the double counting of subsidies if a countervailable
subsidy "has been demonstrated" to lower the export price of the subject merchandise, and if the DOC "can reasonably estimate" the magnitude of the double counting of subsidies.
These range from insisting that the Treasury Department refer the matter to the International Monetary Fund (IMF), to requiring that the US Trade Representative bring a formal complaint to the WTO, treating China's alleged currency manipulation as a source of dumping or countervailable
subsidies that would permit the imposition of antidumping or countervailing duties on Chinese imports.