Current Context: India has imposed a 12% provisional safeguard duty for 200 days on five categories of steel products to protect domestic industries from a surge in low-cost imports.

Key Points:

• Definition: A safeguard duty is a temporary measure imposed to protect a domestic industry from serious injury caused by a sudden surge in imports.
• WTO Compliance: It is permitted under the rules of the World Trade Organization (WTO) as a trade remedy measure.
• Application: Unlike anti-dumping duties, safeguard duties are imposed at a uniform rate on imports from all countries, regardless of pricing practices.
• Purpose: Acts as an emergency response to give domestic industries time to recover and adjust without facing unfair competition from imports.
• Duration: Safeguard duties are time-bound and subject to review and investigation before imposition.