In: Economics
Describe the difference between safeguard and antidumping measures regarding the MFN principle
Binding tariffs, and applying them equally to all trading partners (most-favoured-nation treatment, or MFN) are key to the smooth flow of trade in goods.
Anti-dumping actions
If a company exports a product at a price lower than the price it normally charges on its own home market, it is said to be “dumping”. Governments take action against dumping in order to defend their domestic industries.
Difference Between Antidumping and Safeguard measures are:
Anti-Dumping Duty is imposed under the multilateral World Trade Organisation(WTO) regime and varies from product to product and from country to country. While in case of safeguard, WTO allows, through its safeguard clause, to impose temporary and nondiscriminatory safeguards measures on imports that are causing injury.