In U.S. trade law, the _allows for the imposition of restrictions on fairly traded imports that cause--?

Question

In U.S. trade law, the ________ allows for the imposition of restrictions on fairly traded imports that cause or threaten harm to domestic industry.

a. escape clause

b. GATT

c. countervailing duty

d. fair trade law

Answer 1

a. escape clause

Answer 2

c countervailing duty

The US has antidumping trade laws and it uses countervailing duty to prevent foreign countries from selling products at lower price than what they sell at their home country.  Lower prices from foreign countries can harm the domestic industry.