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Anti-dumping duty

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.

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