Should countervailing measures be taken in cases where subsidization has not caused any 'injury to domestic industry'? Justify your answer by analyzing important parameters that determine countervailing measures.

Countervailing duties, also known as anti-subsidy duties, are trade import duties imposed under World Trade Organization (WTO) rules to neutralize the negative effects of subsidies. They are imposed after an investigation finds that a foreign country subsidizes its exports, injuring domestic producers in the importing country. No, in case of no injury, the measure is not taken. The Agreement on subsidies and countervailing measures addresses two separate but closely related issues, multilateral disciplines regulating the provision of subsidies and countervailing measures to offset injury caused by subsidized imports. Countervailing duty can be imposed only after it is determined that there are subsidized imports, injury to a domestic industry and a causal link between the subsidized imports and the injury. Types of subsidies against which action is permitted: Action against subsidy is normally in the form of levy of countervailing duty by the importing country, which would be equivalent to the amount of subsidy provided by the exporting country. In this regard, subsidies that are specifically provided to an enterprise or industry or group of enterprises or industries are restricted and against which action is permissible. This is for the reason that subsidies of such nature can distort, the allocation of resources within an economy and accordingly are subjected to discipline. In case a subsidy is widely available within an economy, then such a distortion in the allocation of resources is presumed not to occur. Accordingly, only subsidies that are specific are subjected to the levy of countervailing duty. Exempted specific subsidies: The following subsidies have been exempted even if they are considered to be specific: research activities conducted by or on behalf of persons engaged in the manufacture, production or export; or assistance to disadvantaged regions within the territory of the exporting country; or assistance to promote adaptation of existing facilities to new environmental requirements. Countervailing measures would mean levy of countervailing duty on import of specified subsidized articles. The countervailing measures would be resorted only when the subsidizing nation refuses to remove/withdraw the specific subsidy. Further, countervailing measures are levied only when subsidies are of such nature that causes serious injury to the domestic industry.