Nonactionable Subsidy

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Nonactionable Subsidy

A subsidy on which the World Trade Organization does not permit a member state to impose countervailing duties. Most of the time, a country may impose a countervailing duty (which is a type of tariff) on an import if the exporting country has subsidized it so as to make it significantly less expensive than domestically produced products. Nonactionable subsidies, however, are not subject to these tariffs. For example, environmental and scientific subsidies are nonactionable.