Cabinet Approves India-Bangladesh Cooperation In Trade

22 April 2021 Current Affairs:The Union Cabinet approved the Memorandum of Understanding signed between the Director General of Trade Remedies of India and Trade and Tariff Commission of Bangladesh. The agreement was once signed to expand the cooperation in the region of exchange remedies. The agreement was signed on March 27, 2021.

♦ The agreement objectives to promote trade of information, alternate treatments and other things to do in accordance with the provisions of World Trade Organisation.
♦ The settlement generally centered on countervailing, anti-dumping and protect measures in bilateral alternate between India and Bangladesh.
♦ The Countervailing Duties, also known as CVDs are import tariffs. They are imposed to nullify the unfavourable results of subsidies. CVDs are additionally called anti-subsidy duties.
♦ Suppose a country finds out that a foreign country is subsidising its imports. This will purpose damage to home suppliers. Thus, the domestic country can impose responsibilities on such goods to shield its home suppliers. These obligations are imposed solely beneath World Trade Organisation rules.
♦ The countervailing obligations are imposed on subsidised products on exporting country. On the other hand, anti-dumping obligations are imposed on imports that are of low price.
♦ Let us anticipate that China is exporting silicon wafer to India.
♦ Case 1: Chinese Government affords subsidy to silicon wafer manufacturers. Now when India imposes import duties, then it is called countervailing duties.
♦ Case 2: No subsidies are provided to silicon wafer via Chinese Government. But the exporter is promoting at very low prices. In this case, when India imposes duty, it is known as anti-dumping duties.

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