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ARCTIC
There are 8 nations which are called Arctic Nations which are scrambling for the resources in
this area. Major players being Russia, Norway, US, Canada, Sweden and Finland. Except Russia
all other nations are part of NATO.
Currently Arctic Council is the grouping that represents the interests of Arctic nations.
ARCTIC vs ANTARCTIC
While Antarctica is protected by the Antarctica Treaty framed during the Cold War,
there is no such treaty to protect the resources and ecology of Arctic. Arctic is warming
twice as fast as rest of globe.
Antarctic is not touched by landmass from anywhere, while Arctic is touched by many
Antarctica is mainly for scientific and other purposes while arctic is coming under
commercial exploitation
NATURAL RESOURCES
Oil and Gas Reserves - The US Geological Survey estimates that 13 per cent of the
world's undiscovered oil and 30 per cent of its untapped natural gas is in the Arctic.
RARE EARTHS
Russia is exploring minerals in Barents and Kara Sea, its 1/3rd resources lie in
Arctic circle
US is exploring minerals in Chukchi Sea
Greenland is rich in rare earths which are used extensively in mobile phones and
electronics items manufacturing.
SHIPPING
Shipping lanes could be regularly open across the Arctic by 2030 as rising temperatures
continue to melt the sea ice, according to a National Research Council analysis
commissioned by the US Navy last year.
Opening up of shipping lanes will shorten trade routes for US and other countries.
ARCTIC and INDIA
India has its research station named HIMADRI in Norway, Arctic (On Antarctica, India
has research stations called Maitri and Gangotri)
According to SVALBARD TREATY that India signed with Norway before Independence,
It has rights of commercial activities in the Arctic region. It was under this treaty that
India established its research station in Norway in 2007.
RECENT EVENTS
Russia and Norway recently agreed to improve their military relations in a strategic
move and have resolved their four decade old boundary dispute.
AUSTRALIA GROUP
The Australia Group is control regime and is an informal group of countries (now joined by the
European Commission) established in 1985 (after the use of chemical weapons by Iraq in 1984)
to help member countries to identify those of their exports which need to be controlled so as
not to contribute to the spread of chemical and biological weapons .
It now has 41 members. The name comes from Australia's initiative to create the group.
Australia manages the secretariat.
During visit of Obama in 2010, he promised to support India's membership to this group.
This is one of the four key multilateral groups on sensitive and restricted technologies. The four
groups being Nuclear Suppliers Group (NSG), Missile Technology Control Regime (MTCR),
Australia Group and the Wassenaar Arrangement.
BASEL CONVENTION
Basel Convention is an international treaty that was designed to reduce the movements of
hazardous waste between nations, and specifically to prevent transfer of hazardous waste from
developed to less developed countries (LDCs).
It does not, however, address the movement of radioactive waste.
India is a signatory to the treaty.
BOLSA FAMILIA
Bolsa Familia (Family Grant) is a direct cash transfer scheme of Brazil started in 2002. It provides
money to the 14 million poor families of Brazil. Conditions for getting this benefit are
compulsory vaccination of children and their attendance in schools. According to a recent report
by UN, Brazil has seen significant fall in the poverty numbers in the last decade, owing to this
scheme.
Bolsa Familia not enhances the incomes of poor, but also target menace of illiteracy and child
mortality.
Starting a business Procedures, time, cost and minimum capital to open a new business
Dealing with construction permits Procedures, time and cost to build a warehouse
Getting electricity procedures, time and cost required for a business to obtain a permanent
electricity connection for a newly constructed warehouse
Registering property Procedures, time and cost to register commercial real estate
Getting credit Strength of legal rights index, depth of credit information index
Protecting investors Indices on the extent of disclosure, extent of director liability and ease of
shareholder suits
Paying taxes Number of taxes paid, hours per year spent preparing tax returns and total tax
payable as share of gross profit
Trading across borders Number of documents, cost and time necessary to export and import
Enforcing contracts Procedures, time and cost to enforce a debt contract
Resolving insolvency The time, cost and recovery rate (%) under bankruptcy proceeding
EURASIAN UNION
The Eurasian Union is a proposal for Belarus, Kazakhstan, Russia, Kyrgyzstan, and Tajikistan to
deepen economic and political integration for these countries into a supranational union of
erstwhile USSR. The idea, based on the European Union's integration, was brought to attention
in October 2011 by the Prime Minister of Russia, Vladimir Putin, but was first proposed as a
concept by Kazakhstan's president, Nursultan Nazarbayev, during a 1994 speech at a Moscow
university.
The Union will also act as a check against NATO in the region and its growing influence.
In 2014, Russia, Kazakastan and Belarus formed Eurasian Economic Commission as an economic
bloc for greater cooperation.
FINANCIAL ACTION TASK FORCE FATF
The purpose of the FATF is to develop policies to combat money laundering and terrorist
financing. The FATF Secretariat is housed at the headquarters of the OECD in Paris.
It has a mandate to establish international standards for combating money laundering and
terrorist financing.
It lays out 40+9 principles to combat money laundering and terrorist financing.
India is a member of FATF. India will now have access to information on suspicious financial
transactions in Switzerland, China, US and UK who are also a party to FATF. Other institutions
Helps Countries in Balance of Payment Difficulties When financial problems cause the price
of a member's currency and the price of its goods to fall out of line, balance of payments
Development vs Monetary Function The fundamental difference is this: the Bank is primarily a
development institution the poorer the country, the more favorable the conditions under which
it can borrow from the Bank; the IMF is a cooperative institution that seeks to maintain an
orderly system of payments and receipts between nations. i.e. World bank looks at development
aspect, IMF looks at monetary aspects - promotes exchange stability and orderly exchange
relations among its member countries.
II.
Lending vs Stabilizing Function To help nations abide by the code of conduct, the IMF
administers a pool of money from which members can borrow when they are in trouble. The
IMF is not, however, primarily a lending institution as is the Bank.
III.
Size and Complexity The IMF is small (about 2,300 staff members) and, unlike the World Bank,
has no affiliates or subsidiaries. Most of its staff members work at headquarters in Washington,
D.C. The structure of the Bank is somewhat more complex. The World Bank itself comprises two
major organizations: the International Bank for Reconstruction and Development and the
International Development Association (IDA).
IV.
Source of Funding While World Bank acts as an investment banker and raise funds via bonds
and partly by donations, IMF has its resources as pooled funds by members in different
proportions which determine their SDR share also.
V.
Recipient of Funding In case of World Bank, only developing countries can seek assistance In
contrast to World Bank, all member nations, both wealthy and poor, have the right to financial
assistance from the IMF.
SOURCE OF FUNDING: WORLD BANK ISSUING of BONDS, DONATIONS
The World Bank is an investment bank and acts as intermediary between investors and
recipients, borrowing from the one and lending to the other. Its owners are the governments of
its 180 member nations with equity shares in the Bank.
The IBRD obtains most of the funds it lends to finance development by market borrowing
through the issue of bonds (which carry an AAA rating because repayment is guaranteed by
member governments) to individuals and private institutions in more than 100 countries.
Its concessional loan associate, IDA, is largely financed by grants from donor nations. The Bank is
a major borrower in the world's capital markets and the largest nonresident borrower in
virtually all countries where its issues are sold. It also borrows money by selling bonds and notes
directly to governments, their agencies, and central banks.
III.
IV.
While all the UN members are default members of International Court of Justice,
membership to ICC is a functions of Individual Nations will to join by signing and ratifying
the Rome Statute of the International Criminal Court treaty. India and China are both not
member of ICC.
While ICC prosecutes individuals, ICJ deals more with inter-state disputes
ICC deal with criminal cases, ICJ deals more or less with territorial and other sovereign
disputes like water sharing etc.
Its members are chosen by the state members who has ratified the treaty and not by UN
general Assembly and Security Council members as in the case of ICJ.
Unlike the International Court of Justice whose decisions can be vetoed by Security Council,
the ICC is legally and functionally independent from the United Nations.
ICJ is funded by UN, while ICC is funded by contribution of member states.
Recently, a major verdict came in Sierra Leonean Blood Diamonds Case in which former Liberian
president Charles Taylor was convicted. It was the first time when the head of state was
convicted by an international tribunal.
LIMITATIONS of ICC, ICJ and AD-HOC TRIBUNALS
They dont have coercive penal power and for police support and conviction, they depend
upon support from the respective states.
Long time taken Often trials are delayed so much that the perpetrators are either dead or
on verge of natural death. The crimes committed in Cambodia (Khmer Rogue) are at least
30 years old; those committed in Bosnia (former Yugoslavia) are already 15 years old.
Impartial Judgments No Western politician that has ever been indicted. No indictments
for NATO officials - even though the ICTY indicted and convicted individuals from every
nation involved in the Yugoslav Wars
Expensive Judgments Yugoslavia tribunal till date has cost more than $2 billion and similar
IDA The International Development Association (IDA) is the part of the World Bank
that helps the world's poorest countries.
It supports anti-poverty programs in the poorest developing countries with long-term
(30-40 years maturity), no interest loans. IDA loans address primary education, basic
health services, clean water supply and sanitation, environmental safeguards, businessclimate improvements, infrastructure and institutional reforms. Approximately half of
the IDA's resources come from the 45 donating countries (developed ones), rest are
raised by issuance of Bonds.
II.
IBRD It is the World Bank's other lending arm the International Bank for
Reconstruction and Development (IBRD) which serves middle-income countries with
capital investment and advisory services for development activities. In Asia, its parallel
can be drawn with ADB.
IFC The International Finance Corporation (IFC) promotes sustainable private sector
investment in developing countries. Within the World Bank Group, the World Bank
finances projects with sovereign guarantees, while the IFC finances projects without
sovereign guarantees. Private sector financing is IFC's main activity, and in this respect is
a profit-oriented financial institution. IFC's activities, however, must meet a second test
of contributing to a reduction in poverty in line with its mandate.
III.
WORLD BANK
IDA Poorest
Countries, No
Interest
IBRD
Middle
Income
Inflation level It should be higher than the three best performing countries.
Annual government deficit The ratio of the annual government deficit to gross
domestic product (GDP) must not exceed 3% at the end of the preceding fiscal year.
Government debt The ratio of gross government debt to GDP must not exceed 60% at
the end of the preceding fiscal year.
It also lays down guidelines about the exchange rate and long term debt.
MAARAKESH TREATY
This is a new treaty that aims to make access of books to disabled easier. It will allow copyright
waiver to facilitate publication of books in disability friendly manner like audio, Braille etc.
MINAMATA CONVENTION
It is a convention which is sponsored by UN to contain mercury poisoning and mercury trade
and use. Its draft was signed in Minamata, Japan where inhabitants have suffered for decades
due to mercury contaminated fish and the consequent mercury poisoning after more than 140
countries agreed on it in Geneva. It aims to phase out use of mercury by 2020. Hazards of
mercury are increased through process of Bio Accumulation and Bio Magnification. It also
provides certain concessions where there is no alternative, but to use mercury. For example in
certain vaccines, mercury is used as a preservative. India is one of the largest mercury emitting
countries as it uses coal fired plants which also emit mercury.
MISSILE TECHNOLOGY CONTROL REGIME (MTCR)
It is an informal and voluntary partnership between 34 countries to prevent the proliferation of
missile and unmanned aerial vehicle technology capable of carrying a 500 kg payload at least
300 km.
This is one of the four key multilateral groups on sensitive and restricted technologies. The four
groups being Nuclear Suppliers Group (NSG), Missile Technology Control Regime (MTCR),
Australia Group and the Wassenaar Arrangement.
Impact on India It can be assessed in various terms for example - India received first NERPA
(akula class) submarines in January 2012, renamed INS Chakra from Russia, however didnt
get the long range missile system because of the restriction by treaties like MTCR. This delayed
Nuclear Triad capabilities of India, which will be achieved only after induction of INS Arihant
the indigenous nuclear submarine with long range missile carrying capacity (which can carry
nuclear warheads).
MULTIDIMENSIONAL POVERTY INDEX
It bars States Parties to the Treaty from placing nuclear weapons or any other weapons
of mass destruction in orbit of Earth, installing them on the Moon or any other celestial
body
It exclusively limits the use of the Moon and other celestial bodies to peaceful purposes
and expressly prohibits their use for testing weapons of any kind
The treaty also states that the exploration of outer space shall be done to benefit all
countries and shall be free for exploration and use by all the States.
The treaty explicitly forbids any government from claiming a celestial resource such as
the Moon or a planet, claiming that they are the Common heritage of mankind.
However, the State that launches a space object retains jurisdiction and control over
that object.
PARIS PRINCIPLES
The Paris Principles were defined at the first International Workshop on National Institutions for
the Promotion and Protection of Human Rights held in Paris in 1991. They were later adopted by
the United Nations Human Rights Commission. The Paris Principles relate to the status and
functioning of national institutions for the protection and promotion of human rights.
The Paris Principles list a number of responsibilities for national institutions, which fall under
five headings. It includes details the role of National Institutions over keeping a watch on
human rights violation, advising the governments and coordinating with the international
agencies.
Evaluation of the national institutions is done by a peer review system.
PULITZER PRIZES
The prizes were established by Hungarian-American publisher Joseph Pulitzer and are
administered by Columbia University in New York City.
These are given for the following
I.
II.
III.
Journalism
Literature
Musical composition
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First, it establishes a detailed legal framework setting out the rights and obligations of
States with respect to uses of the oceans. All the nations involved in the dispute are part
of UNCLOS
Second, UNCLOS sets out the maritime zones which coastal States can claim from land
territory over which they have sovereignty. For example, coastal States have a right to
establish a 12 nautical mile (nm) territorial sea adjacent to their coast in which they
have sovereignty, subject to the right of all States to innocent passage. UNCLOS also
provides that coastal States have the right to an exclusive economic zone (EEZ)
extending out to 200 nm from their coasts in which they have sovereign rights for the
purpose of exploring and exploiting the living and non-living resources of the waters and
of the seabed and subsoil. Under the EEZ regime, coastal States have sovereign rights to
exploit the fisheries resources in their EEZ
Third, UNCLOS sets out the maritime zones that can be claimed by coastal States from
Copyright terms must extend to 50 years after the death of the author.
Copyright must be granted automatically, and not based upon any "formality," such as
registrations or systems of renewal.
The obligations under TRIPS apply equally to all member states, however developing countries
were allowed extra time to implement the applicable changes to their national laws, in two tiers
of transition according to their level of development. It has therefore been argued that the
TRIPS standard of requiring all countries to create strict intellectual property systems will be
detrimental to poorer countries' development.
Flexibilities under TRIPS
Compulsory licensing
Flexibility to define invention by the member countries (however, a constant pressure
from developed nations is maintained against the implementation of these provisions.
For example US wants other countries like India to make strict provisions related to
IPR with less scope of flexibilities)
Parallel importation: Process of importing affordable medicines from cheaper markets.
TRIPS does not cover a number of areas of IP subject matter like traditional knowledge,
handicrafts which are of particular interest to LDCs
Among other things it defines EEZs The EEZs 200 nautical miles from the baseline
were introduced to halt the increasingly heated clashes over fishing rights, although oil
was also becoming important.
It also defines jurisdiction powers of a state in International waters. A coastal state is
free to set laws, regulate use, and use any resource within 12 nautical miles.
Although India do not have major maritime conflicts with her neighbors relating to demarcation
of boundaries, one particular issue is with Bangladesh in Bay of Bengal.
Another significant law that deals with jurisdiction over international waters is SUA
Convention (Convention for the Suppression of Unlawful Acts of Violence against Safety of
Maritime Navigation).
India is signatory to both and these were the two conventions that were often evoked when
India held the Italian Ship Enrica Elixia for many days which raised the issue of jurisdiction over
the Ship. Italy claimed that it has the jurisdiction since it was travelling under Italys flag and
under UNCLOS it was the one who has to decide about it. India on the other hand argued that it
was under its territory and UNCLOS has provision to that effect, further SUA Convention has
precedents and ICJ has also given similar rulings in past.
UNIVERSAL DECLARATION OF HUMAN RIGHTS 1948
All human beings are born free and equal in dignity and rights.
They are endowed with reason and conscience and should act towards one another in a spirit of
brotherhood,
slavery and the slave trade shall be prohibited in all their forms,
Everyone has the right to recognition everywhere as a person before the law,
Everyone has the right to an effective remedy by the competent national tribunals for acts
violating the fundamental rights granted him by the constitution or by law,
Everyone has the right to rest and leisure, including reasonable limitation of working hours and
periodic holidays with pay,
Everyone is entitled to a social and international order in which the rights and freedoms set
forth in this Declaration can be fully realized,
Everyone has the right to freedom of peaceful assembly and association and No one may be
compelled to belong to an association.
UN PRINICPLE ORGANS
There are six principle organs
I.
General Assembly
II.
Security Council
III.
Economic and Social Council The Economic and Social Council (ECOSOC) of UN
consists of 54 members state. It is elected by a 2/3rd majority of the general assembly
for a three year term
IV.
Secretariat
V.
VI.
Trusteeship Council
G-4 group is currently promoting the cause of four nations for membership of UNSC.
One out of every six humans is an Indian
India is worlds biggest and most vibrant democracy
It is responsible and peace loving country
Times have changed and it is now 4th biggest economy.
It contributes significantly to UN peacekeeping operations
UN WOMAN
It was a new entity created in 2010 to accelerate woman empowerment and gender equality.
Four existing UN Bodies dealing with the womens issues will now come under a single umbrella
WASHINGTON CONSENSUS
In late 1980s the economic growth of the of the Latin American countries like Bolivia, Brazil, Argentina
etc. had slowed down abysmally and was not even matching the rate of population growth. At that time
English Economist John Williamson had proposed the Washinton Consensus to help these developing
countries come out of the grip of recession. It had proposed set of 10 policy changes like trade
liberalization, Government expenditure cut, Government debt reduction, tax reforms, market
determined foreign exchange, liberalization for FDI, Privatization of debt enterprises etc.
WASSENAAR ARRANGEMENT
The Wassenaar Arrangement The Wassenaar Arrangement on Export Controls for
Conventional Arms and Dual-Use Goods and Technologies is a multilateral export control
regime.
Every six months member countries exchange information on deliveries of conventional arms to
non Wassenaar members. List of restricted technologies is broken into two parts, the List of
Dual-Use Goods and Technologies (also known as the Basic List) and the Munitions List.
WIPO INTELECTUAL PROPERTY RIGHTS
The World Intellectual Property Organization (WIPO) is one of the 16 specialized agencies of the
United Nations. WIPO was created in 1967 to encourage creative activity, to promote the
protection of intellectual property throughout the world.
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III.
IV.
Council for Trade in Goods There are 11 committees under the jurisdiction of the
Goods Council each with a specific task. All members of the WTO participate in the
committees.
Council for Trade-Related Aspects of Intellectual Property Rights Information on
intellectual property in the WTO, news and official records of the activities of the TRIPS
Council, and details of the WTO's work with other international organizations in the
field.
Council for Trade in Services The Council for Trade in Services operates under the
guidance of the General Council and is responsible for overseeing the functioning of the
General Agreement on Trade in Services (GATS). It is open to all WTO members, and can
create subsidiary bodies as required.
Trade Negotiations Committee The Trade Negotiations Committee (TNC) is the
committee that deals with the current trade talks round. The chair is WTO's directorgeneral.
Every other member provides MFN status which simply means that there will not be
discrimination among trading partners. Nearly 150 countries are members of the WTO. It always
strives to make the movement of goods and services freely across the nations. Which is however
unacceptable for many countries like India.
Uruguay Rounds lead to its formation. Uruguay rounds started in 1986 as 8th round of GATT
negotiation and they focused on not only on goods and tariffs, but also on intellectual property
rights and services also. In these rounds for the first time apart from tariff and non-tariff
barriers, TRIPS and Trade in Services were discussed for the first time. The main objectives of
the Uruguay Round were
WTO
The WTOs rules the agreements are the result of negotiations between the members.
The WTO oversees about 60 different agreements which have the status of international legal
texts. Member countries must sign and ratify all WTO agreements on accession. The current set
were the outcome of the 198694 Uruguay Round negotiations which included a major revision
of the original General Agreement on Tariffs and Trade (GATT). Major agreements of the WTO
are
I.
II.
III.
General Agreement on Tariffs and Trade (GATT) or Agreement in Goods GATT is now
the WTOs principal rule-book for trade in goods.
General Agreement on Trade in Services (GATS) or Agreement in Services Applicable
to banks, insurance firms, telecommunications companies, tour operators, hotel chains
and transport companies and so on. It divides all tradable services into 4 modes of
supply
Mode 1: It includes services which can be provided across the border without
the provider or consumer crossing borders. For example, financial trading, BPO,
IT etc. These are not covered in GATS.
Mode 2: It includes services for which consumers have to travel abroad. For
example, education, tourism.
Mode 3: It includes services where commercial presence of service provider in
the foreign country is essential. For example, banking, insurance, telecom etc.
Developed countries have expertise in this and their opening up has harmed
India.
Mode 4: It includes services that require physical presence of a natural person in
the foreign country. For example, skilled professionals like engineers doctors
etc. These are not covered in GATS. India prefers this mode as it has expertise in
this.
Sanaitary and Phyto-Sanitary Agreement The SPS Agreement was signed as a part of
the Final Act of the Uruguay Round and came into effect in 1995. The Agreement took
effect with the establishment of the WTO. The objective of the SPS Agreement is
IV.
V.
VI.
VII.
VIII.
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twofold. First, it aims to reduce the arbitrary nature of sovereign governments using SPS
measures as trade restricting devices. Second, it seeks to promote the harmonization of
national SPS measures to the international standards while protecting member
governments' rights to regulate their own food safety, animal and plant health issues.
Codex Alimentarious Commission is one of the premier body which sets SPS standards.
TRIPS The rules state how copyrights, patents, trademarks, geographical names used
to identify products, industrial designs, integrated circuit layout-designs and undisclosed
information such as trade secrets. It was negotiated in Uruguay round and was a result
of intense lobbying by USA supported by other developed nations. Important aspects of
the TRIPs were as follows (a) product patents, and (b) the scope of IPRs was widened
to cover patents, copyrights and related rights, geographic information (GI), industrial
designs, layout design of ICs, and trade secrets.
Dispute Settlement Agreement
Agreement on Agriculture (AoA) The Agreement on Agriculture came into effect with
the establishment of the WTO at the beginning of 1995. It includes relevant guidelines
on subsidies, special and differential treatment and so on. The AoA has three central
concepts, or pillars: domestic support, market access and export subsidies. Under
Domestic Support clause Agreement on Agriculture, there are 3 types of subsidies
Red (prohibited as these are export subsidies), Green (permissible and non-actionable.
For example subsidies on pest control, agriculture research), Amber (permissible, but
actionable. They are mainly domestic support subsidies). Limit to domestic support
subsidies is fixed at 10 % of agriculture output fixed at 1987-89 prices
Agreement on Technical Barriers to Trade It prohibits technical requirements created
solely for the purpose of limiting trade. It ensures that technical negotiations and
standards, as well as testing and certification procedures, do not create unnecessary
obstacles to trade. It allows such requirements for legitimate purposes like consumer
and environment protection.
TRIMS or Agreement on Trade Related Investement Measures Trade Related
Investment Measures In general any measure taken by government that may affect
trade is TRIMS. According to WTO, some TRIMS might cause trade distortion and violate
WTO principles. Therefore a multilateral agreement was signed during Uruguay rounds
in 1994. It requires phasing out of those TRIMS that are distorting. Policies such as local
content requirements and trade balancing rules that have traditionally been used to
both promote the interests of domestic industries and combat restrictive business
practices are now banned. US sought to drag India to WTO under provision of this
agreement in case of solar panel issues as a part of Jawahar Lal Nehru National Solar
Mission phase 1 biddings.
Information Technology Agreement The aim of the treaty is to lower all taxes and
tariffs on information technology products by signatories to zero.
Doha Rounds are an attempt to set the framework for global trade and it commenced in 2001.
Its major objective is to lower the trade barriers to facilitate free flow of goods and services. Key
II.
III.
IV.
V.
VI.
Single undertaking: Every item of the negotiation is part of a whole and indivisible
package and cannot be agreed separately. Some developed countries on the other hand
demand that separate agreements should be put into effect to make some progress on
Doha round.
Participation: The negotiations are open to all WTO members and to observer
governments negotiating or intending to negotiate membership. But decisions on the
outcomes are only taken by members.
Transparency: The negotiations have to be transparent.
Special and differential treatment: The negotiations have to take fully into account the
principle of special and differential treatment for developing and least-developed
countries.
Sustainable development.
Subjects not negotiated: Non trade issues like labor, environment etc.
Agriculture India have to curtail subsidies in many areas to comply with WTO rules and
as a result its products may become less competitive on the one hand and on the other
hand, its farmers and fledgling industry may face adverse effect in form of loss of
income of poor farmers and loss to domestic industries.
Services India is also unhappy over non-opening of mode-IV services in which it has
expertise. On the other hand opening of mode-III services has impacted its domestic
service industry as developed nations have expertise in it.
TRIPS In TRIPS, Indian pharma industry has faced huge challenges in European and
American markets due to stringent provisions. It has also resulted in poor access to
medicines in developing countries like India as they are not able to develop cheaper
generic drugs due to tight TRIPS norms.
Sanitary and Phyto Sanitary Measures Developed countries have also used SPS to
erect non-tarrif barriers which have harmed Indian farm export. Ban on mango import is
the most recent example.
However, WTO rules have benefitted India as well in terms of lower tariffs in other
markets which are more easily accessible for India and domestic consumers have also
benefitted from cheaper imports and have more choice now. Trade has also increased
many a times and there has also been technology transfer which has benefitted Indian
industry.
India strongly supports Special and Differential treatment for the developing countries.
As a result of efforts of countries like India, several clauses and flexibilities have been
introduced in the agreements, like, compulsory licensing clause in TRIPS, higher subsidy
clauses, peace clause extension and so on.
As a part of special and differential clause, India also supports Duty-Free and QuotaFree (DFQF) market access for the least developed countries. India became the first
developing country to extend this facility to LDCs when it announced a Duty Free Tariff
Preference (DFTP) Scheme for LDCs in 2008 on about 85 per cent of India's total tariff
lines and preferential access (Positive List) on about 9 per cent of tariff lines. Only 6 per
cent tariff lines were under the Exclusion List.
In agriculture, India wants substantial and effective reductions in overall tradedistorting domestic support (OTDS) of the US and EU; An operational and effective
Special Safeguard Mechanism (SSM); Simplification and capping of developed country
tariffs and along term permanent solution to the problem of food security in developing
countries.
In Non-Agricultural Market Access (NAMA), India wants adequate and appropriate
flexibilities for protecting economically vulnerable industries.
In case of rules/agreements, India wants tightening of disciplines on anti-dumping
(deletion of zeroing clause and reiteration of the lesser duty rule).
In case of TRIPS, India wants certain flexibilities to alleviate hunger, poverty and
disease. It also wants enhanced protection for geographical indications (GIs) other than
wines and spirits and enhanced safeguards to check bio-piracy and access and benefit
sharing.
Safeguard mechanisms To protect domestic vulnerable industries and economy, WTO
provides for three measures
I.
II.
Safeguard Mechanism.
Anti-dumping.
Among the two most important outcomes of the Bali package were the
decisions on the Agreement on Trade Facilitation (TF) which relates to the
reduction of administrative barriers to trade like dealing with custom
barriers, documentation and transparency
It was made amply clear that while being fully prepared to engage, India will
never compromise on fundamental issues pertaining to food security, livelihood
security, and the welfare of its poor.
Special and differential treatment is a must for developing countries as
provided under the provisions of the WTO. It is also in complete conformity with
the commitment of member states in other multilateral fora like the United
Nations (UN) and the Food and Agriculture Organization (FAO) where the fight
against poverty and hunger is accorded highest priority.
India emphasized that an interim solution cannot be a temporary solution nor
can it be terminated until a negotiated permanent solution is in place.
It was made clear that without a satisfactory decision on food security, India
considered the Bali Package as lacking in horizontal balance and would,
therefore, not be able to support it. The outcome on the food security proposal
provides an opportunity to begin correcting some of the imbalances in the trade
rules which are part of the historical legacy of imbalance in the WTO.
Industry in India supports a trade facilitation agreement at Bali. The industry is
of the view that such an agreement could go a long way in bringing down
transaction costs that is critical to tap markets in the current global economic
environment.
But there is a word of caution emerging from the industry. It is clear that the
New Delhi had decided not to ratify WTO's Trade Facilitation Agreement (TFA).
India raised its voice in the current round of the talks saying that it will not back
TFA till concerns over domestic support for public stockholding are sorted out.
A permanent solution to the domestic stockholdings of food grains is important
regarding the issue of food security. India argued that the adoption of the
protocol on trade facilitation should be postponed till a permanent solution to
public stockholding for food security had been worked out. Despite intense
pressure from the developed countries, including the United States, India stuck
to its stand even as the deadline for adopting the protocol on TF passed on July
31.
III.
IV.
V.
VI.
VII.