National Current Affairs – UPSC/IAS Exams- 5th November 2019

RCEP

Topic: International Relations/ Economy

In News: Seven years after India joined negotiations for the 16-nation ASEAN (Association for South East Asian Nations)-led RCEP (Regional Comprehensive Economic Partnership) or Free Trade Agreement India dropped out of the agreement, citing its negative effects on “farmers, MSMEs and dairy sector”.

More on the Topic:

Reasons for India’s Exit:

• Inadequate Protection against Import-surge: India has apprehensions that the rising imports due to the signing of the Free Trade Agreement (FTA) would lead to flooding of Chinese products in the Indian market.
• India had already been demanding an auto-trigger mechanism that would allow it to raise tariffs on products in instances where imports cross a certain threshold; which now won’t happen with this deal.
• Trade Deficit: Despite having separate bilateral FTAs with most RCEP nations, India has recorded trade deficits with these countries.
• India already has a trade deficit of over $50 billion with China, and the current deal will further lead to increasing of this deficit.
• Lack of Market Access: India has not received any credible assurance on its demand for more market access with respect to mobility of Indian labour, services and agricultural commodities, and its concerns over non-tariff barriers.
• RCEP participants (like China) have used non-tariff barriers in the past to prevent India from expanding its exports to the country.
• A nontariff barrier is a way to restrict trade by using barriers other than a tariff. These include quotas, embargoes, sanctions, and levies.
• Problem with Base Year: India’s demands regarding the base year that would be used to reduce tariffs on the products (traded as part of the pact) was not considered.
• India demanded for considering 2014 as the base year for tariff reductions instead of 2013, as India raised import duties on several products between 2014 and 2019. Using a base year before 2014 would lead to a drastic drop in the import duties on these products which would negatively impact Indian interests.
• Sectors Impacted: Due to the availability of cheaper alternatives from other participant countries, some domestic sectors may take a hit.
• For instance, the Indian dairy industry would face stiff competition from Australia and New Zealand, if India signs this deal.
• Likewise, steel and textiles sectors have also demanded protection from similar competition.
• Rules of Origin: India has concerns over possible circumvention of these rules.
• Rules of Origin is the criteria used to determine the national source of a product. Their importance is derived from the fact that duties and restrictions in several cases depend upon the source of imports.
• Current provisions in the deal reportedly do not prevent countries from routing their products through other countries (on which India would originally maintain higher tariffs).
• This may allow countries like China to dump in more products into India.

What are the Benefits of Joining RCEP?

• India desperately needs to sign-on to both an export-oriented growth model and a regional integration strategy if it is to ever stimulate its latent manufacturing prowess and overcome its steep development challenges. RCEP provided a gateway on both these fronts.
• RCEP afforded a fleeting opportunity for New Delhi to hitch to the global epicentre of ‘open regionalism’ at a time when protectionism and populism are casting a pall over India’s economic rise in the global system.
• Without an economic integration strategy in Asia, India will have no strategy in Asia and the sum total of its ‘Act East’ policy will amount to little more than becoming the naval doorman of the Indo-Pacific.
• By signing on to RCEP and instituting structural reforms at home, India had an opportunity to integrate India within Asian trade regionalism.
• Sections of Indian industry feel that being part of RCEP would allow the country to tap into a huge market, if the domestic industry becomes competitive.
• Pharmaceuticals and cotton yarn are confident of gains, and the services industry too, may have new opportunities.

About RCEP:

• The Regional Comprehensive Economic Partnership (RCEP) is a proposed free trade agreement (FTA) between the ten member states of the Association of Southeast Asian Nations (ASEAN) (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam) and its five (formerly six) FTA partners (China, Japan, South Korea, Australia and New Zealand). In November 2019, India, the sixth FTA partner, decided to opt out of the pact. In light of India’s departure, China announced that India is welcome to join the RCEP whenever it’s ready.
• RCEP negotiations were formally launched in November 2012 at the ASEAN Summit in Cambodia. In 2017, the 16 prospective signatories accounted for a population of 3.4 billion people with a total Gross Domestic Product (GDP, PPP) of $49.5 trillion, approximately 39 percent of the world’s GDP

Source: Hindu

‘ATITHI’ app

Topic: e Governance

In News: Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman launched ‘ATITHI’ app, an IT initiative to facilitate electronic filing of customs baggage and currency declarations by arriving international passengers.

More on the Topic:

• Passengers can use this app to file declaration of dutiable items as well as currency with Indian Customs even before boarding the flight to India.
• The ATITHI app has been introduced by CBIC (Central Board of Indirect Taxes and Customs). It is available on both, iOS and Android.
• The app will facilitate hassle free and faster clearance by Customs at the airports and will enhance the experience of international tourists and other visitors at Indian airports. The app would also create a tech savvy image of India Customs and would encourage tourism and business travel to India.

Source: Hindu

ICEDASH Dashboard

Topic: e-Governance

In News: Union Minister of Finance and Corporate Affairs launched new IT initiative called ICEDASH for improved monitoring and pace of Customs clearance of imported goods.

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• It is an Ease of Doing Business monitoring dashboard of Indian Customs. It will help the public see daily Customs clearance times of import cargo at various ports and airports.
• With ICEDASH, Indian Customs will provide an effective tool that helps businesses compare clearance times across ports and plan their logistics accordingly, thus taking a lead globally.
• This dashboard has been developed by CBIC (Central Board of Indirect Taxes and Customs) in collaboration with NIC (National Informatics Centre). ICEDASH can be accessed through the CBIC website.

Source: Hindu

East Asia Summit

Topic: International Affairs

In News: The latest edition of the East Asia Summit (EAS) is being held in Bangkok.

More on the Topic:

• EAS is an initiative of ASEAN and is held annually by leaders of 18 countries in the East Asian, Southeast Asian and South Asian regions.
• The first summit was held in Kuala Lumpur, Malaysia on 14 December 2005.
• There are six priority areas of regional cooperation within the framework of the EAS. These are – Environment and Energy, Education, Finance, Global Health Issues and Pandemic Diseases, Natural Disaster Management, and ASEAN Connectivity. India endorses regional collaboration in all six priority areas.

Why EAS is Important for India?

• For India, EAS acts as an alternative to the APEC in which India doesn’t enjoy the membership. India’s membership to the EAS is a recognition of its fast growing economic and political clout.
• In order to build multi-faceted relations with ASEAN and other multilateral nations and strengthen bilateral relations India has emphasised upon its Act East Policies for which EAS will prove crucial.
• China’s assertiveness in the South China Sea and the nature of its growing investments has led the ASEAN countries to view India as a potential power that could balance a rising China.
• India’s strength lies in service sector and information-technology and Japan has a sound capital base. Thus there are complementarities in trade and production structures of the EAS members.
• India’s deep cultural and civilizational links with the EAS countries are widely known. India can play a major role in cultural and people to people cooperation with the region, which can reinforce the economic momentum for community building.

Source: Hindu

SCOJTEX- 2019

Topic: International Relations

In News: The latest edition of Shanghai Cooperation Organization Joint Exercise on Urban Earthquake Search & Rescue being held in India.

More on the Topic:

• It is hosted by NDRF and aims to rehearse the disaster response mechanism, share knowledge, experience, technology & also for mutual coordination, etc.
• The participants of all 08 member countries namely China, India, Kazakhastan, Kyrgyzstan, Pakistan, Russia, Tajikistan and Uzbekistan shall be participating in this exercise.
• Main focus shall be to test the region’s preparedness and resilience towards effective activation of Inter- governmental interaction for immediate response.

About SCO:

• The Shanghai Cooperation Organisation, also known as the Shanghai Pact, is a Eurasian political, economic, and military organisation which was founded in 2001 in Shanghai.
• Presently, the SCO comprises eight member states, namely India, Kazakhstan, China, the Kyrgyzstan, Pakistan, Russia, Tajikistan, and Uzbekistan.

Source: Hindu

Dustlik 2019

Topic: Defence Cooperation

In News: Dustlik 2019 the first-ever India-Uzbekistan Joint Exercise being held at Tashkent in Uzbekistan.

More on the Topic:

• The exercise will enable sharing of best practices and experiences between the Armed Forces of the two countries and would lead to greater operational effectiveness.
• The primary focus will be on counter terrorism.

Source: Hindu

New Frog Species

Topic: Environment and Ecology

In News: Scientists have reported the discovery of a new species of frog from the urban habitats of West Bengal.

More on the Topic:

• The mid-sized tree frog is the 26th species under the genus Polypedates, found throughout south and southeast Asia.
• The new species has been named Brown Blotched Bengal Tree Frog ( Polypedates bengalensis) from the series of six to nine dark brown blotches that extend laterally from behind the frog’s eye to the vent. The frog’s body colour is yellowish-brown to greenish-brown.

Source: Hindu