Question

Q30. The 'Special Safeguard Mechanism', recently in news, is related to

• A. (a) New financial inclusion initiative by the Central Government targeting tribals in Left Wing Extremism affected areas
• B. (b) Initiative by RBI to restructure Non-Performing Assets (NPAs) of scheduled commercial banks.
• C. (c) Trade remedy that allows developing countries to temporarily hike duties on heavily subsidized imports.
• D. (d) Cyber security project to protect the critical economic infrastructure.

Answer 1

The correct option is C

(c) Trade remedy that allows developing countries to temporarily hike duties on heavily subsidized imports.

WTO's Special Safeguard Mechanism (SSM) is a protection measure allowed for developing countries to take contingency restrictions against agricultural imports that are causing injuries to domestic farmers.

The contingency measure is imposition of tariff if the import surge causes welfare loss to the domestic poor farmers. The design and use of the SSM is an area of conflict under the WTO.