Safeguard duty
Q. Which of the following is/are true about the Safeguard duty?
1) Safeguard duty is termed illegal and is not accepted by World Trade Organization.
2) It helps to counter the adverse impact caused to the domestic industry.- Published on 01 Apr 16a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
ANSWER: Only 2
- The safeguard duty is a trade remedy recognised by the World Trade Organisation.
- It is a temporary measure to counter the adverse impact caused to the domestic industry due to a sudden and unforeseen surge in (low-priced) imports of the item.
- Government is planning on extending safeguard duty on steel imports for three years.The DG Safeguards said the surge in imports was significant in relation to domestic production and total demand. It said the domestic steel makers have suffered serious consequences due to the huge increase in imports.
