Page 11 - Defence Wing Booklet

Chapter-1

Global Trends in Trade Defence

1. The WTO allows its member countries to impose Anti-Dumping, Anti-
Subsidy and Safeguard measures against the imports of products to
prevent injury or threat of injury to the domestic industry of the importing
country. These trade remedial measures are an integral component of
Trade Defence instruments available to the WTO members. They can be
applied within the disciplines of the following WTO Agreements:

(i) Agreement on Subsidies & Countervailing Measures (ASCM)
(ii) Agreement on Implementation of Article VI of GATT 1994
(iii) Agreement on Safeguards

2. These trade remedial measures may be classied as under:-
(a) Anti-Dumping Duty (“ADD”): A member country imposes ADD
against imported goods when the export price of the goods is lower
than normal value of the goods in the domestic market of the
exporting country and there is a causal link between the dumping
and injury suffered by the competing domestic industries.

(b) Countervailing Duty (“CVD”): A member country imposes CVD to
offset the unfair advantage to imports on account of subsidy policies,
rules, regulations by the Government of exporting countries, if such
subsidized imports are causing injury to the domestic industry of the
importing country.

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