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 a countervailing duty to offset the impact of the subsidy on their own domestic wheat farmers. This is a type of trade remedy that allows countries to defend their own industries against unfair practices from other countries.

Suppose the Canadian Government Began Subsidizing Wheat Farmers by Paying