The Mexican ambassador to Canada knew exactly why he was being asked to attend a meeting in Ottawa. Mexican vegetable farmers were rumored to be subsidized by their government. Canadian farmers in British Columbia and Ontario (two Canadian provinces) had complained to the Canadian government calling for the imposition of ________________ on Mexican imports. The Mexican ambassador knew that if he was not careful in discussions with trade officials in Ottawa the matter could soon be before the World Trade Organization.

Question

Quizplus · Accepted Answer

The Canadian farmers had called for the imposition of countervailing duties on Mexican imports, which are tariffs imposed to counteract subsidies given by a foreign government to its producers. The Mexican ambassador knew that this issue could escalate and end up in front of the World Trade Organization, so countervailing duties are the most relevant term.

The Mexican Ambassador to Canada Knew Exactly Why He Was