Governments provide subsidies for a variety of reasons and they are an important tool "to promote important objectives of national policy. The Organization for Economic Co-operation and Development (OECD) is comprised of industrialized countries, all of which are Members of the OECD Convention also have shown a steady rise in the provision of subsidies. The policy behind the fact that subsidies are addressed in international agreements is that they create a distortion in international trade and that they can quickly and destructively spread from nation to nation. They create a disparity between the actual costs incurred in producing a particular good and those which must be borne by the firm undertaking its production. But because the concentrated interests of producers command greater political support than the diffuse interests of consumers, national governments find it much easier to emulate the vices of protection than the virtues of free trade. This thesis deals in particular with the treatment of domestic subsidies in the WTO Agreement on Subsidies and Countervailing Measures (SCM Agreement) and the imposition of countervailing duties to offset them under Section 701 of the Tariff Act of 1930.