ACCA Applied Skills · Corporate and Business Law (Global) · International trade, international legal regulation and conflict of laws
A government wants to protect a domestic industry from a sudden surge of imports that is causing serious injury, and applies a temporary restriction on imports of that product from all sources. Which WTO measure is this?
This is a safeguard measure. It is a temporary restriction applied to imports of a product from all sources when a surge causes serious injury to a domestic industry. Anti-dumping and countervailing duties instead respond to dumping or subsidies from particular exporters.
- AAn anti-dumping duty
- BA countervailing duty
- CA safeguard measureCorrect
- DA most favoured nation exemption for developing states
Explanation
Safeguard measures are temporary restrictions applied to imports from all sources to address a surge causing serious injury to domestic producers. Anti-dumping duties target goods sold below normal value from specific exporters, and countervailing duties target subsidised imports.
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