Question

Q. Which of the following statements is correct about the Special Safeguard Mechanism (SSM)?

• A. It is a mechanism under WTO (World trade organization) according to which developed countries can restrict imports from other countries on the basis of quality.
• B. It is a mechanism that allows countries to take loans from the IMF (international monetary fund) in case of a Balance of payment crisis.
• C. It is a protectionist tool under WTO (World trade organization) that allows developing countries to increase tariffs temporarily to suppress import surges or price falls of agricultural products.
• D. It is a mechanism under which the World Bank provides loans to developing countries.

Answer 1

The correct option is C It is a protectionist tool under WTO (World trade organization) that allows developing countries to increase tariffs temporarily to suppress import surges or price falls of agricultural products.

Explanation:

A Special Safeguard Mechanism (SSM) is a protectionist tool under WTO that will allow developing countries to increase tariffs temporarily to suppress import surges or price falls. It is especially used for agricultural imports that can cause damage to the country’s farmers.