Taiwan widget manufacturers are selling widgets

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Suppose Taiwan widget manufacturers are selling widgets in the United States, Taiwan, and Japan at prices below the actual cost of production. Are these manufacturers engaged in "dumping"? Suppose an investigation by the USITC determines that the government of Taiwan is offering tax credits to the manufacturers, but only for widgets that are shown to reduce air pollution. Would the United States be justified under GATT if it imposed a tariff on imports of widgets manufactured in Taiwan?

Reference no: EM132232163

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