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Authors

Robert Dziubla

Abstract

The countervailing duty has long been a favorite tool of the Congress to achieve what it considers to be fair trade between the United States and her trading partners. Countervailing duties are extra duties imposed upon goods that enjoy subsidies, in whatever form, from a foreign government. In Zenith Radio Corp. v. United States, the Supreme Court agreed with the Department of Treasury that a remission by the Government of Japan of a domestic indirect commodity tax upon electronic goods was not a subsidy requiring a countervailing duty. This Note will suggest that the Court's dependence upon the legislative history of the countervailing duty statute, the longstanding practice of the Treasury Department, and the reliance interests that have arisen because of this practice, are misplaced. Rather, an analysis of circumstances surrounding the case reveals that it is unarticulated political considerations, such as pressure from the Government of Japan and the Department of State, which make logic of an otherwise illogical decision.

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