economics medium True/False

A 'Safeguard Duty' is a temporary trade protection measure imposed against a specific country that is found guilty of violating WTO intellectual property rules.

  1. True
  2. False

Answer: False

Safeguard duties are not punitive measures against unfair trade practices like dumping or IP theft. Instead, they are emergency 'escape valves' applied on a Most-Favoured-Nation (MFN) basis against *all* importing countries when there is a sudden, massive, and unforeseen surge in imports that threatens to cause serious injury to the domestic industry, allowing them time to adjust.

Topic Indian Economy - Trade
Exam Relevance UPSC Prelims, SSC CGL
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