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Imports: India takes most safeguard measures
 
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December 06, 2006 15:17 IST
India, which is the world's largest user of anti-dumping measures, also tops the list of countries that have taken the maximum number of safeguard actions such as restricting imports of a product to protect the domestic industry, according to the latest WTO statistics.

The country has initiated the largest number of safeguard investigations (15) and also applied the most final measures (8) on imports from other countries, since the World Trade Organisation was formed in 1995, the data released by the global trade body shows.

Safeguard measures are emergency actions that a WTO member is allowed to take for protecting a specific domestic industry from a rise in imports of any product that is causing or threatening to cause serious injury to the industry.

As per the WTO agreement on safeguards, a WTO member must first initiate safeguard investigations and then take final measures. Such actions can consist of quantitative import restrictions or increasing the customs duty to higher than bound rates.

They are one of three types of contingent trade protection steps, along with anti-dumping and countervailing measures, available to WTO members. As per WTO statistics, since January 1, 1995 and until October 23, 155 investigations were initiated and 76 safeguard measures were imposed by member countries.

These figures are much smaller compared to anti-dumping measures - 2,938 investigations and 1,875 measures for the period January 1995June 2006. It is also relatively small compared to countervailing duty - 183 initiations and 113 measures during January 1995June 2006. India is also the world's largest user of anti-dumping measures on imports from other nations since 1995, with 448 investigations and 323 such measures.

Out of the 15 safeguard investigations started by India since 1995, 10 were in the chemicals, two in plastics and one each in vegetables, animal or vegetable oil and leather, raw hides and skin. The country took final measures in seven cases of chemicals and related products and one in case of plastics.

In terms of investigations, India was followed by Chile and Jordan with 11 initiations each. Turkey and the US started 10 probes each during the period.

Regarding the final safeguard steps, India was followed by Chile, Turkey and the US with six measures each, while Jordan and the Philippines came next with five measures each.

The number of investigations initiated during January 1 October 23, was 13. The number of safeguard probes peaked in 2002 at 34, but declined to 15, 14 and 7 initiations in 2003, 2004 and 2005, respectively.

Out of the 13 initiations reported so far this year, Turkey led the pack with five investigations. Argentina, Chile, Indonesia, Jordan, Panama, the Philippines and Tunisia started two new probes each.

Concerning application of new final safeguard measures, during January 1October 23, six new measures have been imposed. Turkey accounted for four of these. The low level of final safeguard measures this year is in line with the recent trend - there were only four measures in 2004 and six in 2005.

The most frequent subject of investigations since 1995 were chemical products with 26 initiations, metals (21), food items (16), and ceramics and vegetables with 14 each.

During January-October, four new investigations related to electrical appliances, while ceramics and footwear accounted for two each and animal products, mineral products, chemical, plastics and vehicles accounted for one each.

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