Part of: Prelims and GS III – Economy
Context India has imposed anti-dumping duty on five Chinese products for five years to protect local manufacturers from cheap imports from the neighbouring country.
About Anti-dumping Duty
- An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are dumped.
- The imposition of anti-dumping duty is permissible under the World Trade Organization regime.
- It is aimed at ensuring fair trading practices and creating a level-playing field for local producers vis-a-vis foreign producers and exporters.
- These tariffs can also lead to higher prices for domestic consumers.