India vs USA @WTO
- The US had taken India to the WorldTrade Organization (WTO) in July.
- Its disagreement over retaliatorytariffs imposed by New Delhi on 28 American products.
- US imposed a tariff of 25% and 10% onimports of steel and aluminium products respectively.
- India blocked a US request to set up apanel to settle.
General Agreement on Tariffs and Trade
- 23 countries signed it on 30-Oct-1947
- GATT went into effect on 01-Jan-1948
- Legal agreement: minimizing barriersto international trade by eliminating or reducing quotas, tariffs and subsidies while preserving significant regulations.
- Eventually leading to the creationWTO on ________?
- The Council for Trade in Goods (GoodsCouncil) is responsible for the GATT and consists of representatives from all WTO member countries.
- The council has 10 committees thataddress subjects including market access, agriculture, subsidies, and antidumping measures.
- GATT aim: to end quantitative tradebarriers
- The agreement also provided a systemto arbitrate commercial disputes among nations.
- Key achievements: trade withoutdiscrimination
- Every signatory member of the GATTwas to be treated as equal to any other.
- This is known as the most-favorednation principle
- A practical outcome of this was thatonce a country had negotiated a tariff cut with some other countries (usually its most important trading partners), this same cut would automatically apply to all GATT signatories.
- Escape clauses did exist, wherebycountries could negotiate exceptions if their domestic producers would be particularly harmed by tariff cuts.
Rework export schemes
- India lost a key trade dispute with the USIndia will likely expedite a process toreplace or restructure various WTOincompatible export schemes in the coming months.
- New Delhi offered illegal export subsidiesand “thousands of Indian companies are receiving benefits totaling over $7 billion annually from these programmes” .
- Analysts say what comes as a blessingin disguise for India is the US move to block judges to the appellate tribunal, which will be crippled with just one judge left after December 11.
- In that case, the fate of any appeal byIndia against a verdict in favour of the US remains uncertain.
- Unless a decision is made by thetribunal on the appeal, the findings of the WTO’s dispute panel can’t be binding on India, they have added.
Pakistan’s Economical Troubles
Punjab Maharashtra Cooperative Bank
- Economic Offences Wing, MumbaiPolice registered FIR
- ₹4,355.46 crore alleged irregularities
- More than two-thirds of PMC Bank’sloan exposure is to the bankrupt real estate developer HDIL.
- A group of secretaries on Mondaycleared strategic sales
- Bharat Petroleum Corp. Ltd (BPCL)
- Container Corporation of India (Concor)
- Shipping Corporation of India (SCI)
- The Air India expression of interest(EoI) paperwork is also likely to be finalised and issued soon. GoI target this FY: ₹1.05 lakh crorefrom disinvestment
Core Output Growth Slips
- India’s core sector output contracted0.5% in August.
- July growth was at 2.7%
- The contraction, according to thecommerce and industry ministry data suggests lack of any recovery in the Q2.
- Core slowdown reflects situation ofmanufacturing, construction and an overall weakness in the economy