Lesser Duty Rule (LDR)

  • December 7, 2021
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Lesser Duty Rule (LDR)

Subject – Economy

Context – India also follows the Lesser Duty Rule (LDR) while pursuing anti-dumping measures.

Concept –

  • The Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (the “AD Agreement”) governs the application of anti-dumping measures by Members of the WTO.
  • Article 9 establishes the general principle that imposition of anti-dumping duties is optional, even if all the requirements for imposition have been met, and establishes the desirability of application a “lesser duty” rule
  • India also follows the Lesser Duty Rule (LDR) while pursuing anti-dumping measures.
  • Under this, authorities impose duties at a level lower than the margin of dumping if this level is adequate to remove injury.
  • The removal of lesser duty rule will help in checking undisciplined exporters.
economy Lesser Duty Rule (LDR)