Suppose the Canadian government began subsidizing wheat farmers by paying them $25 per bushel of wheat produced.According to existing international trade agreements,other countries would be allowed to react to this subsidy by imposing a

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Other countries would be allowed to impose countervailing duties to counteract the effects of the subsidy on the Canadian wheat industry. Countervailing duties are tariffs imposed by importing countries to neutralize the negative effects of foreign subsidies on domestic industries.

Suppose the Canadian Government Began Subsidizing Wheat Farmers by Paying