WORLD TRADE ORGANISATION (WTO)
1. Context
The recently concluded meeting of the G20 working group on trade and investment focused on the important issue of WTO reform. This has been on the global agenda for a while including that of the G20, whose members are key players in the WTO.
2. World Trade Organisation (WTO)
- WTO is an international organization set up in 1995 by replacing the General Agreement on Trade and Tariffs (GATT) under the Marrakesh Agreement.
- It is the only global international organization dealing with international Trade between nations.
- Its HQ is located in Geneva, Switzerland.
- Currently, WTO has 164 members and India is a founding member of WTO.
- Currently, the head (Director-General) of WTO is Ngozi Okonjo-Iweala.
3. Objectives of WTO
- To formulate and implement rules for international trade.
- To provide a platform for negotiating and monitoring further trade liberalization.
- To provide a platform for the settlement of disputes.
- Providing assistance to the developing, least-developed, and low-income countries in transition to adjust to WTO rules and disciplines through technical cooperation and training.
- To cooperate with the other major economic institutions (like the UN, World Bank, IMF, etc.) involved in global economic management.
4. Important trade agreements of WTO
- Agreement on Agriculture (AoA),
- Agreement on TRIPS (Trade-Related Aspects of Intellectual Property Rights),
- Agreement on the Application of Sanitary and Phytosanitary Measures (SPS),
- Agreement on Technical Barriers to Trade (TBT),
- Agreement on Trade-Related Investment Measures (TRIMS),
- General Agreement on Trade in Services (GATS) etc.
5. Geoeconomic Shift and the Need for WTO Reforms
- Over 50 years ago, Richard Cooper argued that "trade policy is foreign policy," emphasizing the value of economic interdependence to deter security confrontation.
- Today, the world is characterized by heightened securitization of international economic relations and a shift towards geoeconomic considerations, challenging the belief in economic interdependence as a deterrent to security issues.
- The WTO, established to legalize and monitor economic interdependence, faces challenges due to unilateralism in international economic relations, particularly by developed countries like the US, who show little regard for WTO law.
- Economic policies such as industrial subsidies and local content requirements have resurfaced, forgotten WTO rules like security exceptions are gaining prominence, and efforts to weaken trade multilateralism in favor of external plurilateral alignments are being made.
- Jeffrey Schott argues that expecting the G20 countries, especially the developed ones, to reform the WTO for the better is naïve, as a weak WTO aligns with the US foreign policy objective of strategic rivalry with China.
- Schott suggests that middle powers like India, Indonesia, Brazil, and South Africa should take the lead in pushing for WTO reforms to address the current challenges.
- Developing countries should prioritize four critical areas for WTO reform, with special attention on preserving the principle of special and differential treatment (SDT), which provides special rights to developing countries and obligates developed countries to treat them more favorably.
6. Key Areas for WTO Reforms
Strengthening Special and Differential Treatment (SDT): Lawyers Vineet Hegde and Jan Wouters highlight that only 21% of SDT provisions in WTO agreements obligate developed countries to provide differential treatment to developing countries. Efforts should focus on giving more enforceability to SDT provisions.
Reviving the Appellate Body: The WTO's appellate body has been paralyzed since 2019 due to the US's indifference. Other G20 countries need to either convince the US to change its stance or revive the appellate body without US participation to restore the WTO's dispute settlement mechanism.
Balancing Consensus and Plurilateral Discussions: With consensus-based decision-making in the WTO proving slow, there has been a shift towards plurilateral discussions on specific issues. While plurilateral agreements offer opportunities for rule-making, there is a need to establish a multilateral governance framework that incorporates key principles of non-discrimination, transparency, and inclusivity.
Addressing Transparency Gap: The WTO lacks transparency in terms of notification requirements. Members have a poor record of notifying laws and regulations affecting trade, leading to increased trade costs, particularly for developing countries. Efforts should be made to improve compliance with notification obligations.
Importance of Trade Multilateralism: Despite current trends, trade multilateralism remains crucial for countries like India. India, as the G20 President, should collaborate with other nations to drive the WTO reforms agenda, promoting inclusive trade multilateralism.
|
For Prelims: World Trade Organisation (WTO), General Agreement on Trade and Tariffs (GATT), Trade-Related Aspects of Intellectual Property Rights (TRIPS), and General Agreement on Trade in Services (GATS). For Mains: 1. Discuss the key areas for reforms in the World Trade Organization (WTO) and their significance for promoting inclusive trade multilateralism. (250 Words) |
Previous year Questions
|
1. In the context of the affairs which of the following is the phrase "Special Safeguard Mechanisms" mentioned in the news frequently? (UPSC 2010) A. United Nations Environment Program B. World Trade Organization Agreement C. ASEAN-India D. Free Trade G-20 Summits Answer: B 2. Consider the following statements: (UPSC 2017) 1. India has ratified the Trade Facilitation Agreement (TFA) of the WTO 2. TFA is a part of WTO's Bali Ministerial Package of 2013 3. TFA came into force in January 2016 Which of the statements given above is/are correct? A. 1 and 2 only B. 1 and 3 only C. 2 and 3 only D. 1, 2 and 3 Answer: A 3. In the context of which of the following do you sometimes find the terms 'amber box, blue box, and green box' in the news? (UPSC 2016) A. WTO affairs B. SAARC affairs C. UNFCCC affairs D. India-EU negotiations on FTA Answer: A |
Source: The Indian Express
LIVESTOCK AND LIVESTOCK PRODUCT BILL
1. Context
The Centre has withdrawn the proposed draft of the Live-stock and Live-stock Product (Importation and Exportation) Bill, 2023.
2. What is the Bill say?
- The Livestock and Livestock Products (Importation and Exportation) Bill-2023 aims to replace the existing Livestock Importation Act, of 1898, and the Livestock (Amendment) Act, of 2001.
- The bill focuses on providing guidelines for the import and export of live animals, raising concerns among animal lovers.
- The draft of the bill was prepared by the Department of Animal Husbandry and Dairying (DAHD) under the Ministry of Fisheries, Animal Husbandry, and Dairying.
- On June 7, the department released the 4-page bill in the public domain, inviting comments and suggestions.
- The public was given a 10-day window to provide their feedback on the proposed bill.
- The bill introduces three significant changes compared to the existing law:
- It permits the export of live animals.
- It expands the scope of animal import-export, now including cats and dogs within the definition of 'livestock.'
- It reduces the regulatory powers of state governments in this domain.
3. Livestock Importation Law Reform in India
- The Livestock Importation Act, of 1898, which currently regulates the import of live animals in India, is 125 years old.
- The Department of Animal Husbandry and Dairying (DAHD) recognizes the need to update the law to align it with contemporary requirements and prevailing circumstances related to sanitary and phytosanitary measures.
- In 2001, during the tenure of Prime Minister Atal Bihari Vajpayee's NDA government, amendments were made to the 1898 law.
- Initially, an ordinance called "The Livestock Importation (Amendment) Ordinance, 2001" was promulgated, which later got replaced by the Livestock Importation (Amendment) Bill, 2001.
- The key change introduced by the Vajpayee government was the inclusion of the import of livestock products in addition to live animals.
- The amended law defined "livestock products" to include various items such as meat and meat products, organs of poultry, pig, sheep, and goat, eggs and egg powder, milk and milk products, embryos, ova, and semen of bovine, ovine, and caprine species, pet food products of animal origin, and other animal products specified by the Central Government.
- The 2001 amendment also granted the Central Government the power to regulate, restrict, or prohibit the trade of any livestock product that may pose a risk to human or animal health.
4. Proposed Live-stock and Live-stock Product (Importation and Exportation) Bill, 2023
- The existing Live-stock Importation Act, of 1898, consists of 5 sections and only regulates the importation of livestock.
- The proposed draft Bill aims to replace the 1898 Act and expands its scope to include regulation of live-stock exports as well.
- The draft Bill comprises 10 sections and grants the government the authority to promote and develop exports of live-stock and live-stock products.
- The proposed Bill defines its purpose as framing measures for regulating the importation of live-stock and live-stock products while promoting and developing their exports.
- The definition of live-stock has been expanded in the draft Bill to include equines, bovines, caprines, ovines, swines, canines, felines, avian species, laboratory animals, aquatic animals, and any other animals specified by the Central Government, except those prohibited by other acts.
- The draft Bill categorizes live-stocks and live-stock products as commodities and defines them as "live-stock, products of live-stock origin, live-stock genetic material, biological products, and pathological material of live-stock origin."
5. Criticism of Proposed Livestock and Livestock Products (Importation and Exportation) Bill, 2023
- Stakeholders, including animal rights organizations, have strongly criticized the proposed Livestock and Livestock Products (Importation and Exportation) Bill.
- Concerns have been raised regarding the potential for animal cruelty and abuse resulting from the live export of animals from India.
- Animals rights organizations, such as the Federation of Indian Animal Protection Organisations (FIAPO), argue that the draft Bill opens the door to widespread mistreatment of millions of animals raised for food and other purposes.
- Citing UN data from 2021, FIAPO states that nearly 2 billion out of the 80 billion land animals globally raised for food are exported alive to various countries.
- Critics fear that the proposed Bill could have negative consequences for animal welfare, prompting concerns about the ethical implications of such exports.
6. Withdrawal of Live-stock and Live-stock Products (Importation and Exportation) Bill, 2023
- In response to the criticism received, the Centre has decided to withdraw the draft Live-stock and Live-stock Products (Importation and Exportation) Bill, 2023.
- The Ministry of Fisheries, Animal Husbandry, and Dairying issued an office memorandum announcing the withdrawal of the bill.
- The memorandum states that more time is needed to comprehend the proposed draft and gather additional comments and suggestions.
- Concerns expressed by stakeholders regarding animal welfare and related emotional aspects were taken into consideration during the consultation process.
- The memorandum emphasizes the necessity for broader consultations and wider discussions on the proposed draft.
- The decision to withdraw the bill was made with the approval of the competent authority, as stated in the memorandum issued by GN Singh, Joint Secretary, Department of Animal Husbandry and Dairying.
|
For Prelims: Livestock and Livestock Products (Importation and Exportation) Bill-2023, Livestock Importation Act, of 1898, and the Livestock (Amendment) Act, of 2001, Department of Animal Husbandry and Dairying (DAHD), AND Federation of Indian Animal Protection Organisations (FIAPO).
For Mains: 1. What are the sections included in the Live-stock Importation Act, 1898, and how does it currently regulate the importation of livestock? (250 Words)
|
Source: The Indian Express
EMPLOYMENT PROVIDENT FUND ORGANISATION
1. Context
Recently released Employees Provident Fund Organisation's (EPFO) provisional payroll data revealed that EPFO has added 17.20 lakh net members in April this year as compared to the net addition of 13. 40 lakh members during March 2023.
2. Key points
- Out of 17.20 lakh members, around 8.47 lakh new members have come under the social security coverage of EPFO for the first time.
- Among the newly joined members, the age group of 18-25 years constitutes 54.15 per cent of the total new members added during the month.
- The age group of 18-25 years indicates that the majority of the members joining the organised sector workforce of the country are mostly first-time job seekers.
3. About EPFO
- EPFO is one of the World's largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken. At present it maintains 27.74 crore accounts for its members.
- The Employees Provident Fund came into existence with the promulgation of the Employee's Provident Funds Ordinance on the 15th of November 1951.
- It was replaced by the Employees Provident Funds Act, of 1952.
- The Employees Provident Funds Bill was introduced in Parliament as Bill Number 15 of the year 1952 as a Bill to provide for the institution of provident funds for employees in factories and other establishments.
- The Act is now referred to as the Employees Provident Funds and Miscellaneous Provisions Act, 1952 which extends to the whole of India.
- The Act and Schemes framed there under are administered by a tri-partite Board known as the Central Board of Trustees, Employees Provident Fund, consisting of representatives of Government (Both Central and State), Employers and Employees.
- The Central Board of Trustees administers a contributory provident fund, a pension scheme and an insurance scheme for the workforce engaged in the organized sector in India.
- The Board is assisted by the Employees PF Organization (EPFO), consisting of offices at 138 locations across the country.
- The Organization has a well-equipped training set-up where officers and employees of the Organization, as well as Representatives of the Employers and Employees, attend sessions for training and seminars.
- The EPFO is under the administrative control of the Ministry of Labour and Employment, Government of India.
- The Board operates three schemes -EPF Scheme 1952, Pension Scheme 1995 (EPS) and Insurance Scheme 1976 (EDLI).
4. Vision
An innovation-driven social security organisation aiming to extend universal coverage and ensure Nirbadh (Seamless and uninterrupted) service delivery to its stakeholders through state-of-the-art technology.
5. Mission
- To meet the evolving needs of comprehensive social security in a transparent, contactless, faceless and paperless manner.
- To ensure Nirbadh services with multi-locational and auto claim settlement process for disaster proofing EPFO.
- To ensure ease of living for members and pensioners and ease of doing business for employers by leveraging the Government of India's technology platforms for reaching out to millions.
6. Schemes
6.1. EPF Scheme 1952
- Accumulation plus interest upon retirement and death.
- Partial withdrawals allowed for education, marriage, illness and house construction.
- Housing Scheme for EPFO Members to achieve the Hon'ble Prime Minister's Vision of Housing for all Indians by 2022.
6.2. Pension Scheme 1995 (EPS)
- The monthly benefit for superannuation/ retirement, disability, survivor, widow (er) and children.
- Minimum pension on disablement.
- Past service benefit to participants of erstwhile Family Pension Scheme, 1971.
6.3. Insurance Scheme 1976 (EDLI)
- Benefit provided in case of death of an employee who was a member of the scheme at the time of death.
- The benefit amount is 20 times the wages.
- Maximum benefit of 6 lakh.
|
For Prelims: Employees Provident Fund Organisation, social security, Employees Provident Funds Act, of 1952, EPF Scheme, EPS, EDLI Insurance Scheme,
For Mains:
1. Explain the role and functions of the Employees Provident Fund Organisation (EPFO) in India's social security system. Discuss the key schemes administered by EPFO and their benefits for employees in the organized sector. (250 Words)
|
|
Previous Year Questions
1. The maximum assurance benefit payable in the Employees’ Deposit Linked Insurance Scheme (EDLI) has been enhanced to Rs. _________ from the earlier maximum benefit of Rs.6 lakh (DSSSB PGT 2021)
A. 7 lakh B. 10 lakh C. 9 lakh D. 8 lakh
Answer: A
|
Source: EPFO
NEW COLLECTIVE QUANTIFIED GOAL (NCQG)
1. Context
The recentlyconcluded Bonn climate conference in Germany, expected to outline the political agenda for the crucial endofyear Conference Of Parties28 (COP28) in Dubai, was critical for reviewing and reforming the climate finance architecture.
2. What is the NCQG?
- 2009 COP set a target of '$100 billion per year till 2020' for developed countries to provide financial support to developing nations.
- Estimates indicate that addressing climate change may cost billions or even trillions of dollars.
- The 2015 Paris Climate Agreement established a New Collective Quantified Goal (NCQG) for climate financing before 2025.
- The NCQG is considered the most important climate goal as it increases the commitment from developed countries and considers the needs and priorities of developing nations.
- It takes into account scientific evidence and aims to address the increasing funding required for Loss and Damage due to inadequate financial support.
- Climate groups emphasize the significance of the NCQG in responding to evolving needs and priorities.
3. Issues with Climate Finance and Promised Funding
- Developed countries provided $83.3 billion in 2020 out of the promised $100 billion per year for climate finance.
- However, an Oxfam analysis suggests that these figures may be inflated by as much as 225% due to misleading and shady reporting practices.
- The $100 billion target set in 2009 was considered more of a political goal, lacking a clear definition or source of 'climate finance.'
- Developed countries, benefiting from economic growth, bear a greater responsibility due to their high carbon emissions.
- Although funds for climate finance have increased, they are often privately sourced and inaccessible to countries in need.
- Countries must wait for years to access funds, leading to delayed implementation of climate projects.
- A study by the Centre for Science and Environment reveals that only about 5% of climate finance comes as grants, while the majority is in the form of loans and equity.
- This reliance on loans burdens developing countries with a debilitating debt crisis.
- Developing countries face high-interest rates when accessing climate finance, further increasing their debt burden.
- The countries most in need of finances often experience significant delays in receiving funds, hindering their climate change mitigation and adaptation efforts.
4. Concerns and Perspectives on Climate Finance
- Developed countries argue that the New Collective Quantified Goal (NCQG) should be considered a collective goal for both developed and developing nations.
- Experts express concerns that this argument may shift the burden of achieving "net zero" pathways onto developing countries.
- Developing nations may struggle to afford mitigation, adaptation, infrastructure development, and addressing loss and damage simultaneously.
- Countries emphasize the importance of mobilizing private-sector investments and loans as a critical component of climate finance.
- They believe private-sector involvement can provide additional financial resources for climate action.
- The Global Stocktake, scheduled to take place at COP28, will play a crucial role in charting the pathway for long-term climate action.
- It will assess progress, identify gaps, and guide future efforts to address climate change.
6. Key considerations for NCQG in 2023
- In 2023, countries face a tight deadline to reach an agreement on the New Collective Quantified Goal (NCQG) before 2024.
- A global transition to a low-carbon economy necessitates investments ranging from $4 trillion to $6 trillion annually, according to the Sharm el-Sheikh implementation Plan from the previous year.
- Instead of a single aggregate figure, some suggest that the NCQG could establish separate targets or sub-goals for specific areas such as mitigation, adaptation, and loss and damage.
- This approach aims to prioritize scaling up concessional financing, halting debt creation, and allowing the NCQG to be more of an ongoing process rather than a fixed goal.
- The objective is to ensure that the NCQG promotes an equitable transition and involves meaningful participation from communities.
- By emphasizing concessional financing and debt considerations, the aim is to support a transition that benefits people and addresses their specific needs.
|
For Prelims: New Collective Quantified Goal (NCQG), Conference Of Parties28 (COP28), Loss and Damage fund, Climate Financing, Net Zero target, and Sharm el-Sheikh Implementation Plan.
For Mains: 1. Discuss the concept of the New Collective Quantified Goal (NCQG) in climate financing and its significance in addressing the needs of developing nations. What are the key considerations for reaching an agreement on the NCQG in 2023?
|
Previous year questions
|
1. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016)
1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017
2. The Agreement aims to limit greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels.
3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below:
A. 1 and 3 only
B. 2 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: B
2. The United Nations Framework Convention on Climate Change (UNFCCC) is an international treaty drawn at (UPSC 2010)
A. United Nations Conference on the Human Environment, Stockholm, 1972
B. UN Conference on Environment and Development, Rio de Janeiro, 1992
C. World Summit on Sustainable Development, Johannesburg, 2002
D. UN Climate Change Conference Copenhagen, 2009
Answer: B
|
Source: The Hindu
GE F414 ENGINE
1. Context
During Prime Minister Narendra Modi's State Visit to the United States, an important agreement is expected to be announced between General Electric (GE) and Hindustan Aeronautics Limited (HAL).
This agreement aims to facilitate the transfer of at least 11 critical jet engine technologies allowing India to manufacture GE's F414 engine under license for the indigenous Light Combat Aircraft (LCA) Tejas Mk2.
2. Background
- Discussions regarding the technology transfer agreement took place between Defense Minister Rajnath Singh and US Secretary of Defense Lloyd Austin earlier this month.
- The agreement was also a key focus during the meeting between National Security Advisor Ajit Doval and his American Counterpart Jake Sullivan in February, marking the operationalization of the US India Initiative on Critical and Emerging Technologies (iCET).
3. About GE F414 Engine
- The GE F414 engine is a turbofan engine that has been utilized by the US Navy for over three decades.
- With more than 1, 600 engines delivered, it has accumulated over 5 million flight hours across various missions.
- The Engine features advanced technologies such as Full Authority Digital Electronic Control (FADEC), which digitally controls engine performance, and incorporates advanced materials and cooling techniques to enhance performance and component life.
- The F414 engine powers several aircraft in service or on order across eight nations.
- The US Navy's Boeing F/A-18E/F Super Hornet and EA 18G Growler electronic attack aircraft utilize the F414-GE-400 engines.
- Saab's Gripen E/F fighters are equipped with the F414G, the single-engine variant of the F414-GE-400.
- Additionally, there is potential for F414 engines to power emerging platforms like the Korean KF-X.
.png)
Image source: The Indian Express4. Indian Applications
- For the Indigenous LCA Tejas Mk2, the Aeronautical Development Agency (ADA) of the Defense Research Development Organisation (DRDO) has selected the India-Specific version of the engine, the F414-INS6.
- The current LCA Tejas is powered by a GE-404-IN20 engine, which shares design similarities with the F414.
- The F414 engine may also be considered for the prototypes and initial batch of the Advanced Medium Combat Aircraft (AMCA), India's future fifth-generation fighter aircraft.
5. Significance of the Agreement
- Only a select few countries have mastered the technology and metallurgy required to manufacture engines for combat aircraft.
- By securing the technology transfer agreement with GE, India aims to overcome its historical challenges in developing advanced fighter aircraft engines.
- This pact marks a significant milestone in India's pursuit of self-reliance in critical technologies and strengthens its manufacturing capabilities.
- The agreement has the potential to end India's reliance on other countries for advanced combat jet engine technology.
6. Conclusion
- The expected agreement between GE and HAL for the transfer of critical jet engine technologies is a remarkable development during Prime Minister Modi's visit to the US.
- This collaboration will enable India to manufacture the GE F414 engine domestically, further enhancing its indigenous defence capabilities and advancing its goals of self-reliance.
|
For Prelims: India-US relations General Electric (GE), Hindustan Aeronautics Limited (HAL), Light Combat Aircraft, Tejas Mk2, Full Authority Digital Electronic Control, Boeing F/A-18E/F Super Hornet, EA 18G Growler electronic attack aircraft, Korean KF-X, Aeronautical Development Agency, Defense Research Development Organisation, F414-INS6, Advanced Medium Combat Aircraft,
For Mains:
1. Analyze the features and applications of the GE F414 engine. How does its technology benefit modern combat aircraft? Discuss its potential applications in the Indian defence sector. (250 Words)
|
Source: The Indian Express
