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.