India-UK trade pact includes safeguard clause to protect domestic industries from import surge

The free trade agreement with the UK allows India to temporarily raise tariffs or suspend concessions if a sudden surge in British imports harms domestic industries, the Commerce Ministry said on Saturday.

The India-UK free trade agreement was signed on July 24 in London.

''In this agreement, there are bilateral safeguard measures. It allows India to temporarily increase tariffs or suspend tariff concessions on certain goods if there is a significant surge in imports from the UK that causes or threatens to cause serious injury to Indian domestic industries,'' it said.

The duration of a bilateral safeguard measure under this pact is initially up to two years, it added.

This period can be extended for an additional two years if an investigation determines that the safeguard measure is still needed to prevent or remedy serious injury and to facilitate adjustment for the domestic industry.

''Thus, the total maximum duration of a bilateral safeguard measure is four years,'' it said.

Further, if a bilateral safeguard measure is implemented for only two years, neither country has the right to retaliate.

But if this measure is extended up to 4 years, then countries will have the right to retaliate.

''Provisional measures can be used in critical or emergency situations to prevent irreparable harm to domestic industry. These can be imposed for up to 200 days based on preliminary evidence but must be followed by a full investigation,'' it said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)