International Economy - Current Affairs for June, 2017

Commerce Secretary Rita Teaotia, while addressing the 22nd APEDA Export award function in New Delhi on 12 June 2017, announced that India has emerged as the 7th largest exporter of agri-products globally.

There is a significant increase in the exports of food products from the country and it represents more than 12 percent of total exports.

Total merchandise exports during 2016-2017 are more than 276 billion dollars out of which agricultural exports comprised nearly 33 billion dollars.

Indian food products are majorly exported to countries such as Vietnam, UAE, Saudi Arabia, USA, Iran, Iraq and Nepal.

Further, the exporters even in times of economic slowdown have continued to grow and added that opportunities in newer markets have to be searched for further growth.

The awards function witnessed the presentation of 82 APEDA awards for the year 2014-2015 and 2015-2016. It included 2 Diamond Trophies, 33 Gold, 29 Silver and 18 Bronze awards.

APEDA: Know More

• It is an apex body of the Ministry of Commerce, Government of India, to promote the export of agricultural commodities and processed food products.
• APEDA links Indian exporters to global markets besides providing comprehensive export-oriented services.
• It provides referral services and suggests suitable partners for joint ventures.
• Its export basket ranges from typically Indian ethnic products like pickles, chutneys, sauces to rice, honey, fresh and processed fruits and vegetables, beverages, poultry, agri-products, food grains and other Indian delicacies.

India and the United Nations Office for South-South Cooperation (UNOSSC) on 8 June 2017 launched a partnership fund to support the Sustainable Development Goals (SDGs) across the developing world.

The fund was launched on the occasion of the World Oceans Day at a special ceremony held at the Permanent Mission of India to the UN.

The India-UN Development Partnership Fund will implement country-level projects that are catalytic towards achieving the 17 Sustainable Development Goals of the 2030 Agenda.

The initiative is aimed at reducing poverty and hunger, improving health, education and equality, and expanding access to clean water, energy and livelihoods.

The fund will focus on Least Developed Countries (LDCs) and Small Island Developing States (SIDS).

CEWSPIC: Know More

• Initially, the fund will start with an initial contribution of USD 1 million for its first project Climate Early Warning System in Pacific Island Countries (CEWSPIC).
• CEWSPIC Project was formulated by India and the UN Development Programme in consultation with the governments of Cook Islands, Kiribati, Marshall Islands, Micronesia, Nauru, Solomon Islands and Tonga.
• The project will increase resilience to natural disasters in these seven Pacific island countries.

India has moved the World Trade Organisation (WTO) against the US as it has not yet complied with the rulings of the WTO pertaining to imposition of high import duty on certain Indian steel products.

In December 2014, the WTO’s appellate body pronounced a ruling against the act of US which is imposing high import duty on certain Indian steel products.

It had ruled that the imposition of import duty on steel products was inconsistent with various provisions of the Agreement on Subsidies and Countervailing Measures.

The Agreement on Subsidies and Countervailing Measures (the SCM Agreement) - addresses two separate but closely related matters

1. The multilateral disciplines on the use of subsidies and the
2. Conditions under which Members may apply countervailing measures.

India has sought consultation with the US for compliance of the WTO’s rulings.

If the US refuses to comply then India has planned to approach the WTO’s compliance panel.

In order to comply with the WTO rulings on countervailing duties on imports of hot-rolled carbon steel products from India, the US needs to amend its domestic norms.

Earlier, the US had moved the arbitration panel of the World Trade Organisation against India as it complained that India had failed to remove trade restrictions on American poultry.

WTO: Know More

• The WTO is an inter-governmental organization for governments to negotiate global trade agreements and progressively liberalizing trade.
• The WTO operates a system of trade rules that apply to all its members. The World Trade Organisation is also a place for Member governments to settle their trade disputes.
• It’s located in Geneva, Switzerland.
• It was established on 1 January 1995 and its official languages are English, French and Spanish. Countervailing duties are those duties that are imposed by a country to counter the negative impact of import subsidies to protect domestic producers.