This paper analyzed countervailing duties aimed at offsetting the effects of a production subsidy, with specific application to the case of hog production subsidies in Canada and countervailing duties on hogs and pork by the United
States. Whether only hog imports, or both hog and pork imports, should be countervailed depends on the objective pursued with countervailing duties. If the objective is to restore the welfare of hog producers only, a duty on hog
imports will suffice. On the other hand, if the objective is to offset the effects of the subsidy on both U.S. hog and pork producers, duties on
both hog and pork imports are necessary.