PILLAR #3C: INTERNATIONAL ORGANIZATIONS & AGREEMENTS RELATED TO ECONOMY

Table of Contents
34 🌐🛒👨‍⚖️ Pillar #3C: Bretton Woods Organizations.......................................................................594
34.1 🌐🗡👨‍⚖️ Bretton Woods → 1) World Bank, Washington, 1945, Jul.........................................595
34.1.1 🌐🗡👨‍⚖️World Bank President?.............................................................................................596
34.1.2 🌐🗡👨‍⚖️😰 World Bank: Controversy?..................................................................................597
34.2 🌐🗡👨‍⚖️ (Non-Bretton Woods) → Multilateral Development Banks.......................................597
34.2.1 BRICS Bank and AIIB.............................................................................................................597
🌐🗡👨‍⚖️Multilateral Development Banks → Others...........................................................598
34.2.2
34.3 🌐🗡👨‍⚖️Bretton Woods → 2) IMF, Washington, 1945, Dec......................................................599
34.3.1 🌐🗡👨‍⚖️🛐 IMF LOAN WINDOWS: RFI, SBA EFF............................................................599
34.3.2 🌐🗡👨‍⚖️🛐 IMF bailout loans to Pakistan & SriLanka.........................................................600
34.4 🌐🛒 Theories of International Trade........................................................................................600
34.4.1 🏅 Bullionism...........................................................................................................................600
34.4.2 🏅 Mercantilist Theory: व्यापारी सिद्धांत..................................................................................600
34.4.3 Adam Smith’s Theory of Absolute Cost Advantage (1776)................................................600
34.4.4 David Ricardo’s Theory of Comparative/Relative Cost Advantage (1817).......................601
✈️👚 Heckscher and Ohlin’s Factor - Proporations Theory (1919)................................601
34.4.5
34.5 🌐🛒👨‍⚖️Bretton Woods → 3) GATT → WTO (Geneva)...........................................................601
35 🌐🛒👨‍⚖️ World Trade Organization: विश्व व्यापार संगठन................................................................602
35.1 🌐🛒👨‍⚖️ WTO → functions (जिम्मेदारियां या कार्य).......................................................................602
35.1.1 🌐🛒🚫: Tariff Barriers against international trade.............................................................602
35.1.2 🌐🛒🚫 Non-Tariff Barriers against international trade.....................................................603
35.1.3 💻 Non-Tarrif Barrier: Laptop import ban / license by Indian govt (2023) ......................603
35.2 🌐🛒👨‍⚖️: 📝 WTO → Notable Agreements................................................................................604
35.3 🌐🛒⚔️🧔 WTO Disputes involving India................................................................................605
35.3.1 🌐🛒⚔️📯🧔 WTO’s Appellate Body (AB) Crisis...............................................................606
35.3.2 🌐🛒⚔️📯🧔 WTO Multiparty Interim Arbitration (MPIA) mechanism.......................606
35.4 🌐🛒👨‍⚖️: 🤝 WTO negotiations / summits / packages...............................................................606
35.4.1 🤝 👨🏻‍⚖️ Most Favoured Nation (MFN)- अत्याधिक वरीयता वाले देश......................................606
35.4.2 🤝 👨🏻‍⚖️ Least Developed Countries (LDC: सबसे से कम विकसित देश)..................................607
35.4.3 🤲 Aid for Trade Initiative by WTO......................................................................................608

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 35.4.4 Some keywords:.......................................................................................................................608
35.4.5 🤝 👨🏻‍⚖️ Doha Development Round (Qatar 2001)...................................................................608
35.5 🪑 WTO ministerial conferences (MC)- notable list.................................................................608
35.5.1 🤝👨🏼‍🌾 👨🏻‍⚖️ Food subsidies & peace clause: खाद्य रियायतें और शान्ति अनुच्छेद/उपधारा.............609
35.5.2 🤝👨🏼‍🌾 👨🏻‍⚖️ Food subsidies: Cairns Group................................................................................610
35.5.3 🤝 👨🏻‍⚖️ Bali Package & Trade Facilitation Agreement / TFA (2013)...................................610
35.5.4 👩‍👦 Social and development subsidies....................................................................................610
35.5.5 🤝 👨🏻‍⚖️ Nairobi Package & SSM (2015)...................................................................................611
35.6 🐠 WTO-2022 Summit (Geneva)→ Fish Subsidies Agreement (मत्स्य सब्सिडी पर समझौता).....611
35.6.1 🤝🐠 Signing vs ratification(हस्ताक्षर बनाम अनुसमर्थन).........................................................611
35.6.2 🤝🐠 Ratification : Fisheries Agreement...............................................................................612
35.7 🐪 🤝 WTO-2024: Abu Dhabi, UAE Outcomes.........................................................................612
35.7.1 → 🤝 🛑 ✋ WTO-2024 → investment facilitation agreement (IFD) REJECTED..........612
🐪 🤝 Food Subsidy: Thailand opposed India......................................................................612
35.7.2
35.7.3 🐪 🤝 Women Exporters in the Digital Economy (WEIDE) Fund by WTO (2024) .......612
35.8 🤝 Conventional Gravity Model (पारंपरिक गुरुत्वाकर्षण मॉडल)...................................................613
35.9 🤝Trade Agreements Types: व्यापार समझौते के प्रकार..................................................................614
35.9.1 🤝 FTA: India Mauritius FTA/CECPA, 2021 (मॉरिशस के साथ मुक्त व्यापार समझौता)......616
35.9.2 🤝 FTA: India UAE CEPA, 2022...........................................................................................616
35.9.3 🤝 FTA: India Australia ECTA (आर्थि क सहकार और व्यापार समझौता)................................616
35.9.4 🤝⛰️ India-EFTA Trade and Economic Partnership Agreement (TEPA) 2024-Mar .....617
35.9.5 💍 Interim (early harvest) trade agreement ( शादी से पहेले सगाई).......................................617
35.10 🛒⛷📝Free Trade agreements → TPP, TPP11, TATIP, IPEF, RCEP...................................618
35.10.1 🛒⛷📝 Transatlantic Trade and Investment Pact (TTIP) #NOT-yet-Signed ...............618
35.10.2 🦅 U.S.-E.U. Trade and Technology Council (TTC) (2021)...........................................618
35.10.3 🦅 Atlantic Declaration - USA-UK (2023-June)................................................................618
35.10.4 🛒⛷📝 Trans Pacific Partnership (TPP: ट्रांस पैसिफिक साझेदारी) #FAIL.........................618
35.10.5 🛒⛷📝 TPP-11 or CPTPP...................................................................................................619
35.11 🌐🤝🤵 Indo-Pacific Economic Framework (IPEF)................................................................619
35.11.1 🌐🤝🤵IPEF → Clean Economy Investor Forum (CEIF)................................................619
35.12 🛒⛷📝 Regional Comprehensive Economic Partnership (RCEP)........................................620
35.12.1 ✍🏻 Introduction to RCEP......................................................................................................620

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 35.12.2 Why FTA increasing as per 📙ES23....................................................................................620
35.12.3🛒 ⚖️ India-ASEAN to review FTA by 2025......................................................................620
35.12.4 💼 Budget-2020: FTA ‘rules of origin’ (उत्पत्ति के नियम).....................................................621
35.12.5 📝 Commerce Ministry: Certificate of Origin ( उदगम प्रमाण पत्र)......................................621
35.12.6 📘 📘 Economic survey: Observations abt India’s Trade Agreements ............................621
35.12.7 🛒⛷📝 Trade agreements losing shine → NAFTA & SAFTA........................................621
35.13 🌐🛒🤼‍♀️ Burning issues in International trade.........................................................................622
35.13.1 🌐🛒🤼‍♀️ Protectionism, Trade war: संरक्षणवाद, व्यापार युद्ध................................................622
35.13.2 China shock 2.0, China+1 Strategy, Economic Decoupling.............................................622
35.13.3🌐🛒🤼‍♀️🎃USA’s Special 301 report....................................................................................622
35.13.4 🌐🛒🤼‍♀️🎃USA’s Generalized System of Preferences (GSP) list......................................623
35.13.5 🌐🛒🤼‍♀️🎃 Global System of Trade Preferences.................................................................623
35.13.6 💂🏼👋🏼BREXIT = BRITAIN EXIT & How will affect India?...............................................623
36 🌐🤝Other Notable Groupings related to economy....................................................................623
36.1 🌐🤝🦁🐘Groupings: Indian subcontinent...............................................................................623
36.1.1 🌐🤝🦁🐘 Mekong- Ganga Cooperation (2000).................................................................624
36.2 🌐🤝🈶 Groupings: ASEAN vs SCO..........................................................................................624
36.2.1 ☪️🤝Afghanistan 6+2+1 group for redevelopment of Afghanistan..................................625
36.3 🌐🤝🈶 Groupings: Ocean-rim walla........................................................................................625
36.4 🌐🤝🧱 Groupings: BRICS.........................................................................................................626
36.4.1 🌐🤝🧱 BRICS Johannesburg Declaration (2023) & Kazan Declaration (2024) .............627
36.5 🌐🤝Groupings: BRICS, OECD, OPEC & JAI..........................................................................627
36.6 🪷🌐🤝 G20 Summit at India.....................................................................................................628
36.6.1 🪷🌐🤝 G20: 3 tracks..............................................................................................................628
36.6.2 🪷 G20 Summit- 2023: 18th Summit @New Delhi, India: theme and logo......................628
36.6.3 🪷 G20 Summit- India's priorities (SIX:6)............................................................................628
36.6.4 🪷 G20 Summit-2023: Outcomes / New Delhi declaration (2023)...................................629
36.6.5 🪷🚢 G20 2023 Outcome ➡️ India-Middle East-Europe corridor (IMEC)......................629
36.6.6 🪷⛽️ G20 2023 Outcome ➡️ Global Biofuel Alliance (GBA).............................................629
36.6.7 📝📡⛷ G20-2019: Osaka Declaration on free flow of data India refused to sign ...........629
36.6.8 🔠 G20- Truckload of PYQs - जिसकी कोई इंतहा नहीं...........................................................629
36.7 🌐🤝🤵Groupings led by Gora (Whites) → G7.........................................................................630

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 36.7.1🌐🤝G7 - Group of Seven (1975)..........................................................................................630
36.7.2 🤝 NB8 - Nordic Group..........................................................................................................630
36.7.3 🤝🪑🪑🪑🪑🪑 UNSC Reform related groups....................................................................630
36.8 🤖💻 Tech Related Alliances.......................................................................................................631
36.8.1 🤖💻 Bletchley Declaration o AI Safety (UK-2023)............................................................631
36.8.2 🌐🤝📲 D10: 5G club proposed by UK (2020)....................................................................631
36.8.3 🌐🤝🦁🦅 iCET between India and USA (2022).................................................................631
36.9 🌐🤝🪫🔌 Minerals related groupings.......................................................................................631
36.9.1 🌐🤝🪫🔌 RISE by World Bank and Japan..........................................................................631
36.9.2 🌐🤝🪫🔌🦅 Minerals Security Partnership (MSP: अति महत्वपूर्ण खनिजों के लिए भागीदारी)
.............................................................................................................................................................. 632
🌐🤝🪫🔌🦅 MSP → Minerals Security Finance Network (MSFN)................................632
36.9.3
36.10 🌐🤝🛣️ Infrastructure related notable groups/initiatives.......................................................632
36.11 🌐🤝☪️Groupings: Middle East: GCC vs OIC.........................................................................633
36.11.1 ☪️🤝🔯 Abraham Accords (2020-Sept).............................................................................633
36.11.2 🌐🤝🤵 I2U2: Middle Eastern / West Asian QUAD (2021-22).......................................633
36.12 🌐🤝 Misc groupings / org → World Economic Forum (1971).............................................633
36.13 🌐🤝 Misc groupings / organizations Others...........................................................................633
36.14 🌐🛒🔫 Export control / Non-Proliferation regimes...............................................................634
36.15 🐻 Russia related org/agreements.............................................................................................635
36.15.1 🐻🌽🚢 Black Sea Grain Initiative (2022)..........................................................................635
36.15.2 🐻☢️ CTBT Nuke Treaty: Putin Exit (2023)......................................................................635
36.15.3 🔫👋🎃 USA related Arms Treaties....................................................................................635
36.15.4 🎺✍️ Mock Questions for Mains GSM2 (Intl. Org Related to Economy) ......................635

34 🌐🛒👨‍⚖️P ILLAR #3C: BRETTON WOODS ORGANIZATIONS

 Conference was held in Bretton Woods town, New Hampshire in USA after the WW2 (1939-45)
to restore the global economy. (सम्मेलन से तीन अंतरराष्ट्रीय सं स्थानों का जन्म)
 Total 44 nations participated, incl. India. It proposed 3 international institutions:
Outcome Relationship with United Nations (UN)
1) International Bank for Reconstruction and These two are considered “Specialized Agencies
Development (IBRD), commonly known as of UN (सं युक्त राष्ट्र की विशिष्ट एजेंसियां)”
World Bank.

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 Outcome Relationship with United Nations (UN)
2) International Monetary Fund (IMF).
3) (Proposed) International Trade WTO is considered “Related organization of
Organization (ITO). But could not UN (सं बं धित सं गठन)” because it doesn’t fulfil all
materialize due to American opposition. requirements of UN charter on specialized
Instead, nations later setup GATT → WTO agencies

34.1 🌐🗡👨‍⚖️ B RETTON WOODS → 1) WORLD BANK, WASHINGTON, 1945, JUL

 विश्व बैंक originally focused on reconstructing war-torn European countries. After 1950s focusing
on poor countries of Asia and Africa.
 World Bank = IBRD + IDA.
 World Bank Group = comprises of 5 institutions, namely
1) International Bank for Reconstruction and
Development (IBRD) Gives development loans with interest.
अंतरराष्ट्रीय पुनर्निर्माण और विकास बैंक
2) International Development Association (IDA) Assists the poorest countries via interest-free
अंतरराष्ट्रीय विकास सं घ loans (= “Concessional Loans: रियायती ऋण” or
“soft loans”).
3) International Finance Corporation (IFC) अंतर्राष्‍ supports enterprise of developing countries.
ट्रीय वित्‍त निगम Known for its Masala Bonds. (Ref Pillar1C)
offers (foreign) investors insurance against non-
4) Multilateral Investment Guarantee Agency
commercial risk (such as political instability,
(MIGA)
regime change etc.). This helps 3rd world
बहुपक्षीय निवेश प्रत्‍याभूति एजेंसी
nations attract foreign investment.
Helps in dispute resolution related to foreign
5) International Centre for the Settlement of
investment / foreign companies in 3rd world
Investment Disputes (ICSID)
countries. India is not a member of this
निवेश सं बंधी विवादों के निपटान का अंतर्राष्‍ट्रीय के न्‍द्र
organization.
🗳 Voting power?

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 ➢ In the first four organizations, voting power depends on the share capital provided by a
country. USA highest, followed by various European giants.
➢ 5th is “dispute settlement” body, so concept of ‘each country’s voting power’ does not apply

🔠⁉️MCQ. Which one of the following is not in the 'World Bank Group'? (UPSC-Geosci’24)
(a) International Centre for Settlement of Investment Disputes (ICSID) (b) Multilateral Investment
Guarantee Agency (MIGA) (c) Investment Policy Framework for Sustainable Development (IPFSD)
(d) International Finance Corporation (IFC)

34.1.1 🌐🗡👨‍⚖️World Bank President?

➢ Since USA and European powers collectively command large shareholding in World Bank &
IMF, so their informal arrangement is- USA’s favourite will be picked as World Bank chief,
while European countries’ favourite will be picked as IMF Chief.
➢ 2023: New President : Ajay Banga (USA) to replace David Malpass (USA).
➢ 📚World Bank Reports? World Development Report, Ease of doing business Index (More
in Pillar4B), Remittance & Migration Report, Global Economic Prospects report

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34.1.2 🌐🗡👨‍⚖️😰 World Bank: Controversy?
1. (2021) World discontinued the release of “Ease of Doing Business report” after an allegations
that IMF Chief Kristalina Georgieva (who was previously CEO of World Bank) had pressurized
the World Bank staff to give better ranking to China. (डेटा में छेड़खानी करके , चीन को व्यापार-सुगमता रिपोर्ट में
अच्छे नम्बर देने का आरोप।)
2. (2019) Trump demanded World bank should stop loaning to China because China has ‘lots of
money’. World Bank clarified, “As countries grow richer, we reduce loaning to them, and the
same is being done with China.” (अमीर देशों को हम कम कर्ज देंगे। चीन के साथ भी वही व्यवहार होगा।)
34.2 🌐🗡👨‍⚖️ (N ON-BRETTON WOODS) → MULTILATERAL DEVELOPMENT BANKS
A multilateral development bank (MDB: बहुपक्षीय विकास बैंक) is an institution, created by a group of
countries, that provides financing and professional advising for the purpose of development. Apart
from World bank, the other notable examples are →
34.2.1 BRICS Bank and AIIB
BRICS Bank: New Development AIIB: Asian Infrastructure Investment
Bank (NDB) नई विकास बेंक Bank एशियाई अवसं रचना निवेश बैंक
Started in 6th BRICS Summit in Fortaleza 2015-16
(2014) members signed treaty
Members Founding members: Brazil, Russia, China, India, UK, Switzerland, >100 nations
India, China, South Africa as of 2020.
originally each of above founding
members had 20% shareholding,
later diluted to 18.98% after
addition of some new members.
Voting power 2023-Nov. new shareholding Based on share capital contributed:
Shareholding pattern to be- ➢ China largest shareholding ~27%,
pattern - Brazil Russia India China South ➢ India second largest
Africa (18.98% each) shareholding~7%.
- + Bangladesh (1.79%) ➢ Asian countries control about 75%
- + UAE (1.06%) shareholding
- + Egypt (2.27%) ➢ 25% with non-Asian nations.
- Uruguay added as prospective
members but not yet have
shareholding. ## <read FAQ>
HQ Shanghai, China Beijing, China
- BRICS member have also setup $100 billion BRICS Contingent Reserve Arrangement: (आकस्मिक
रिजर्व व्यवस्था) to help members during BoP crisis- similar to IMF.
- BRICS nations also planning to setup their BRICS payment system parallel to SWIFT (ref: Pill1:
NPA handout), and BRICS rating agency (ref: 1C: SEBI-Share Market)

🙋🏼‍♀️FAQ: If Bangladesh is not a member of the BRICS group, then how could it became the member

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 ✅
in the new development bank? Ans. it is not compulsory for a country to be member of the
BRICS group to become member of the BRICS’s new development bank (NDB). Any country who is
a member of the United Nations can join the NDB.
🙋🏼‍♀️
FAQ: Some new members were added in BRICS in 2023- Egypt, Iran, Saudi Arabia, Ethiopia,
and UAE. Yet above NDB Bank table is not showing the names of all of those members? Ans. I ✅
have taken the data on 26_Oct_24 from official website. Perhaps some of the new members of BRICS
group are yet to join this bank.

🔠❓MCQ. Find correct statement(s) about AIIB: (UPSC-Prelims-2020)

1. AIIB has more than 80 member nations. 2. India is the largest shareholder in AIIB.
3. AIIB does not have any members from outside Asia.
Codes: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 only
🔠❓ MCQ. Which one of the following countries is not a founding member of the New Development
Bank? (CDS2019-II) (a) Brazil (b) Canada (c) Russia (d) India
🔠❓ MCQ. Find correct statement(s) about New Development Bank :(Pre-2016)
(1) It was set up by APEC. (2) The headquarters of New Development Bank is in Shanghai.
Codes: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

34.2.2 🌐🗡👨‍⚖️Multilateral Development Banks → Others

BIS: Bank for ➢ 1930: setup in BASEL, Switzerland.
International ➢ Made up of 60 countries’ Central Banks. Its committee on
Settlements banking supervision set norms in 1988 (I), 2004 (II), 2011(III)
अंतरराष्ट्रीय निपटान के लिए बैंक
to ensure global financial stability.(Ref: Pill1:NPA handout).
African Development ➢ 1964: setup in Abidjan in Ivory Coast
Bank ➢ India is a member, also gets loans.
Asian Development ➢ 1966: setup in Manila, Philippines
Bank (ADB) ➢ India is a member, also gets loans.
एशियन विकास बैंक
European Bank for ➢ 1991: setup at London.
Reconstruction & ➢ India became member (shareholder) in 2018. India will not be
Development (EBRD) eligible for loans from EBRD but India can initiate joint loan
पुनर्निर्माण और विकास के लिए
proposals for Asian, African, European nations for its soft-
यूरोपीय बैंक
diplomacy. (usually India does it for winning poor nations
friendship. so they vote in favour of India during Kashmir-
Arunanchal etc resolutions in UN General Assembly)

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 IDEAS 2005: Indian Development and Economic Assistance Scheme
भारत द्वारा विकासशील देशों को (IDEAS) to give loans to Developing countries. Ministry of
विकास और आर्थिक सहायता के External Affairs selects the loan-projects → FinMin's Dept of
लिए कर्ज में पैसा देना।
Economic Affairs will release the loan ₹₹ to the recipient country.
34.3 🌐🗡👨‍⚖️B RETTON WOODS → 2) IMF, WASHINGTON, 1945, DEC

 International Monetary Fund (IMF) helps in global currency exchange stability, helps against
balance of payment crisis. (अंतर्रार्ष्ट्रीय मुद्रा कोष: मुद्रा विनिमय दर स्थिरता भुगतान सं तुलन सं कट में मदद )
 Acts as a reservoir of the currencies of all the member countries, from which a borrower nation
can borrow the currency of other nations- using the Special Drawing Rights (SDR) mechanism.
(Ref: Previous Handout on Currency Exchange.)
 IMF important decisions need to be passed with 85% majority. USA has 16.52% voting power so
it can effectively block/veto it. (अमेरिका हर सुधार प्रस्ताव को रोक सकता है)
 What is SDR? (More in 📑Pillar#3A)
 IMF Chief? 2019: Kristalina Georgieva (Bulgarian economist, previously CEO of the World
Bank) becomes the second woman IMF Chief after Christine Lagarde, for five years tenure.
 IMF’ Chief Economist (CE)? Gita Gopinath, an Indian-American economist, she became the
first woman to be the Chief Economist of IMF (2019 to 2022-Jan). Previously Raghuram Rajan
has also served in this position. (मुख्य अर्थशास्त्री)
 2022: Gita Gopinath promoted to the post of First Deputy Managing Director (FDMD).
 📚Notable reports? Global Financial Stability Report, World Economic Outlook
 United Nations (UN) has 195 members, whereas IMF has 189 members. But pursuing this type
of KBC GK = poor cost:benefit for UPSC # 🕰थोड़ा-पढ़ो-आगे-बढ़ो
34.3.1 🌐🗡👨‍⚖️🛐 IMF LOAN WINDOWS: RFI, SBA EFF
Rapid Financing Instrument Stand-By Extended Fund
IMF loan windows
(RFI) Arrangement (SBA) Facility (EFF)
⏰ Duration Short- 3-6 months Medium: 1-2 years Longer: 3 to 5 years
How much loan Upto 145% of SDR Upto 435% of SDR
Upto 50% of SDR quota
given? quota quota
sudden and unexpected balance short-term
Given when medium-term buffer
of payments need. stabilization
Some other notable IMF Loan windows are: Flexible Credit Line (FCL), Catastrophe Containment
and Relief (CCR), High-Access Precautionary and Liquidity Line (HPCL).

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34.3.2 🌐🗡👨‍⚖️🛐 IMF bailout loans to Pakistan & SriLanka
 Shifted to Mains Handout
🔠❓MCQ. Rapid Financing Instrument” & “Rapid Credit Facility” are given by _ _ . (Pre-2022)
(a) Asian Development Bank (b) International Monetary Fund
(c) United Nations Environment Programme Finance Initiative (d) World Bank
🔠❓ MCQ. Who publishes 'Global Financial Stability Report'? (Asked in UPSC-Pre-2016)
a) European Central Bank b) IMF c) IBRD d) OECD
🔠❓ MCQ. Who publishes 'World Economic Outlook'? (Asked in UPSC-Pre-2014)
(a) IMF (b) UN Development Programme (c) World Economic Forum (d) World Bank
34.4 🌐🛒 T HEORIES OF INTERNATIONAL TRADE

34.4.1 🏅 Bullionism
Bullionism is an economic theory that defines wealth by the amount of precious metals owned.
Bullionism is an early form of mercantilism theory.
34.4.2 🏅 Mercantilist Theory: व्यापारी सिद्धांत
- From the 16th to 18th century, economists believed in mercantilism i.e. The amount of wealth in
the world is static. A nation's wealth and power were best served by ↑ exports and receiving
payments in gold, silver and precious metals. (आयात करने से राष्ट्रीय सं पत्ति का क्षय होता है ऐसा मानते थे)
- Therefore, any import was seen as loss of nation’s wealth in gold payment.
- So, colonial powers tried to flood their colonies with readymade goods but always prevented
entry of goods in their home country. (औपनिवेशिक शक्तियाँ भारत को गुलाम बनाने लगी)
34.4.3 Adam Smith’s Theory of Absolute Cost Advantage (1776)
Output per one laborer → 👨‍🔧 India 🦁 China 🐼
Wheat 🌽 30kg 🌽🌽 10kg 🌽
Rice 🍚 10kg 🍚 15kg 🍚🍚
 India has an absolute cost advantage over China in wheat production. (सं पूर्ण लागत लाभ)

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 So, India should focus on producing more wheat, and import rice from China. India should not
try to be a ‘rice production specialist’. (भारत को जो काम सही से करना आता है वह करना चाहिए चीन की नकल नहीं)
 Adam Smith’s theory assumes 1) there are no production costs except labourers 2) no transport
cost 3) there is free trade (no taxes on import exports)
34.4.4 David Ricardo’s Theory of Comparative/Relative Cost Advantage (1817)
तुलनात्मक लाभ सिद्धांत
How many workers required to produce → 1-meter textile 🧣
1 bottle of wine 🥂
France 10 workers 👨‍🔧 👨‍🔧
12 workers 👨‍🔧 👨‍🔧
England 9 workers 👨‍🔧
8 workers 👨‍🔧
 Here, we can see England requires less workers than France to produce wine and textiles. So, as
per Adam Smith’s absolute cost advantage, England should not import anything from France!
 But, if plotted on graphs, it’ll appear for England per unit labour cost to produce 1 meter textile is
(relatively) cheaper than 1 bottle of wine.(इंगलेंड के लिए कपड़ा बनाना, शराब बनाने से तुलनात्मक रूपसे सस्ता है।)
 So, England should shift domestic English wine workers towards textiles. England should export
textile to France and import wine from France. England should not try to become a ‘Wine
production specialist’. (इंग्लैंड में सस्ती लागत पर कपड़ा बना के निर्यात करें और शराब को आयात करें। खुद शराब न बनाए)
 Based on Ricardo’s theory, Economists prepare Revealed Comparative Advantage (RCA) index,
which can help monitoring which commodities should a country export?
 📔📔ES21: India’s top RCA (Relative cost advantage) export commodities are mainly
o Labour-intensive products [such as cotton, carpets, textiles- similar case in Bangladesh]
o some capital /technology intensive products [such as Indian pharmaceuticals.]
34.4.5 ✈️👚
Heckscher and Ohlin’s Factor - Proporations Theory (1919)
 Capital-abundant country will export the capital –intensive goods. E.g. USA’s Boeing company
exporting Jet planes. (क्योंकि विमान बनाने में मजदूर कम और पूंजी ज्यादा चाहिए. अमेरिका के पास मजदूर कम और पूंजी
विपुल मात्रा में है )
 Labour-Abundant Country will export labour-intensive goods. E.g. India exporting cotton (and
imports jet planes from USA).
34.5 🌐🛒👨‍⚖️B RETTON WOODS → 3) GATT → WTO (GENEVA)
 Initially, Bretton Woods conference proposed set up the International Trade Organisation (ITO)
But USA opposed → the idea could not materialize ( अमेरिकी विरोध के चलते बन नहीं पाया)
 1948: General Agreement for Tariffs and Trade (GATT: टैरिफ/शुल्क और व्यापार के लिए सामान्य समझौता)
 1986-1993: Uruguay Round of GATT negotiations → set up a permanent institution to
encourage international trade in goods & services and Intellectual Property Rights (IPR) सेवा और
वस्तुओं का व्यापार तथा बौद्धिक सं पदा अधिकार.
 1994: Marrakesh treaty → WTO started functioning from 1/1/1995 at Geneva, Switzerland.
India is a founding member. (भारत एक स्थापक सदस्य)

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35 🌐🛒👨‍⚖️ W ORLD TRADE ORGANIZATION: विश्व व्यापार सं गठन

✓ Supreme Decision-Making body.

✓ Usually meets once every two years, deliberates on trade agreements.
✓ One country = one vote. (unlike IMF & World Bank, where the money power
Ministerial
→ shareholding → determines the voting power)
Conference
✓ Appoints Director General (DG: महानिर्देशक ) to look after administrative work.
मंत्री सम्मेलन
✓ 2021: WTO new DG is Ngozi Okonjo-Iweala, replacing Brazil's Roberto
Azevêdo. She is a former finance minister of Nigeria, First woman and first
African WTO chief. She previously worked in the World Bank
✓ Day to day decision making body @Geneva.
✓ Implements the decision of ministerial conferences
General ✓ Has representative from each member country.
Council has two bodies, with separate chairmen
सामान्य 1. Dispute settlement body: विवाद निपटान निकाय → Appellate Body
परिषद 2. Trade policy review body: व्यापार नीति समीक्षा निकाय
Below general council, there are committees on individual agreements and annexes
e.g. Anti dumping, Subsidies & countervailing measures (SCM) etc.
35.1 🌐🛒👨‍⚖️ WTO → FUNCTIONS (जिम्मेदारियां या कार्य)
Today all countries try to protect domestic industries against foreign imports by creating two types
of barriers against the international trade:
35.1.1 🌐🛒🚫 : Tariff Barriers against international trade
Tariff Barriers: शुल्क बाधाएं : Increasing the taxes, duties, cess, surcharge, on imported goods and
services e.g. Trump imposed 25% custom duty on imported steel.
CVD Anti-Dumping Duty: प्रतिपाटन शुल्क
two scenarios when foreign goods will appear - If China exports goods to India at a price below
cheaper to Indians than domestic goods: their normal price in domestic Chinese market
- If foreign country is giving subsidies to their or at a price below their cost of production-
exporters AND / OR then it is termed as “Dumping”
- If Indian government imposes higher - Then, India's commerce ministry →
amount of taxes, cess or surcharge on the Directorate General of Trade Remedies : व्यापार
locally manufactured products उपचार महानिर्देशालय (DGTR) investigates →
recommends Finance ministry to impose
THEN Indian Govt tries to protect local “Anti-Dumping Duty” on such imported
(domestic) industry by imposing items.
Countervailing Duty (CVD: प्रतिकारी शुल्क), - E.g. $185 on every one tonne of imported
Special Countervailing Duty, Additional Chinese Steel, Then its prices will become
Customs Duty on imported items on imported equivalent to India Steel, thus Indian steel

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 CVD Anti-Dumping Duty: प्रतिपाटन शुल्क
items. Internal difference NOTIMP industry will be protected.
➢ Commerce Ministry → DG foreign trade (DGFT) launched ‘ARTIS’ portal (Application for
Remedies in Trade for Indian industry and other Stakeholders). Applicants can file
complaints against dumping.
➢ 💼Budget-2020: Purified Terephthalic Acid (PTA) is used in manufacturing (synthetic)
textile fibres and yarns. Cheap PTA = boost to Indian textile sector, so we’ll no longer charge
Anti-dumping duty on it.
35.1.2 🌐🛒🚫 Non-Tariff Barriers against international trade

गैर शुल्क बाधाएं : if USA does not increase import taxes but plays other tricks like:
1. Subsidies to domestic industries: Giving free electricity to Detroit car manufacturers. OR USA
govt. giving tax benefits & free car-insurance to USA residents for buying American made cars.
2. Public Procurement: सार्वजनिक खरीद/प्राप्ति : Making rule that only American companies can fill up
tender for supplying stationery, school bags etc. in government schemes.
3. Technical Barriers to Trade: व्यापार के लिए तकनीकी बाधाएं : e.g. imported mango must have 0%
pesticides residue, imported cars must have airbags for each passenger.
4. Quota system: e.g. not >50 metric tonnes of steel can be imported from a single foreign country.
WTO aims to reduce such tariff and non-tariff barriers to encourage international trade through its
agreements and dispute settlement body.
35.1.3 💻 Non-Tarrif Barrier: Laptop import ban / license by Indian govt (2023)

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35.2 🌐🛒👨‍⚖️: 📝 WTO → N OTABLE AGREEMENTS
Objective 📝Agreement(s)
↓ tariff barriers 1. 🚗 General Agreement on Tariffs and Trade (GATT) for goods- शुल्क और
व्यापार पर सामान्य समझौता
शुल्क बाधाएं 2. 📡 General Agreement on Trade in Services (GATS): सेवाओं के व्यापार पर
सामान्य समझौता
↓ non tariff 1. 🚗 For non-food: Agreement on Technical Barriers to Trade (TBT: व्यापार में
barriers तकनीकी बाधायें) e.g. talcum powder should not have more than x% of
asbestos.
गैर शुल्क बाधाएं 2. 🌽 For food: Agreement on Sanitary and Phytosanitary Measures (SPS:
स्वच्छता और पादप उपाय) e.g. ‘x’ food item must not have more than y%
pesticides residue.
↓ non tariff 1. 🚗 For non-food: Subsidies and Countervailing Measures (SCM:सब्सिडी और
barriers → काउंटरवेलिंग उपाय)
Subsidies 2. 🌽 For food: Agreement on Agriculture (AoA: कृ षि पर समझौता)- which aims
to regulate the subsidies on agriculture through its ‘box’ mechanism.
a. 📦 Subsidies that are classified in Green & Blue box category- are
allowed (e.g. Research, Cattle-Vaccination).
b. 📦 Amber (एम्बर) box category subsidies will be subjected to
quantitative limits (e.g. Fertilizer, Electricity, Diesel, MSP.)
Misc. measures to 1. Trade-Related Aspects of Intellectual Property Rights (TRIPS: → related
encourage global topics: Compulsory licensing, pharma-patents. 📑More in Pillar4B: IPR (
trade, protect बौद्धिक सं पदा अधिकारों के व्यापार-सं बंधित पहलू)
environment
2. Trade-Related Investment Measures on Foreigners. (TRIMs)- it applies to
foreign investment norms related to goods only. Doesn’t apply on foreign
investment norms on services. (विदेशियों पर व्यापार से सं बंधित निवेश के उपाय)
3. WTO's Agreement on Fisheries Subsidies (AFS-2022): to curb 'harmful'
subsidies that promote overfishing. (मत्स्य समझौता)
4. Plurilateral agreements : They are not signed by all the members of WTO
e.g. Agreements on aircrafts, dairy product, bovine meat, Information
Technology Agreement (ITA) (सभी सदस्य राष्ट्रों ने इस पर हस्ताक्षर नहीं किए)
🔠❓ Find correct about Trade-Related Investment Measures (TRIMS)? (UPSC-Prelims-2020)
1. Quantitative restrictions on imports by foreign investors are prohibited.
2. They apply to investment measures related to trade in both goods and services.
3. They are not concerned with the regulation of foreign investment.
Ans Codes: [a) 1 and 2 only [b) 2 only [c) 1 and 3 only [d) 1, 2 and 3
🔠❓ MCQ. 'amber box, blue box and green box' are related to? (UPSC-Pre-2016)
(a) WTO affairs (b) SAARC affairs (c) UNFCCC (d) India-EU negotiations

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🔠❓MCQ. The terms 'Agreement on Agriculture', 'SPS Agreement and 'Peace Clause' are in the
context of affairs of the _ _ _ (UPSC-Pre-2015)
(a) Food and Agriculture Organization (b) UN Framework Conference on Climate Change
(c) World Trade Organization (d) United Nations Environment Programme
🔠❓ MCQ. TRIPS Agreement pertains to (UPSC-CDS-2017-I)
(a) international tariff regime (b) intellectual property protection
(c) international practices on trade facilitation (d) international taxation of property
🔠❓ MCQ. Which of the following are the main functions of WTO? (UPSC-IES-2020)
1. To organize meetings of members to arrive at trade agreements covering international trade.
2. To ensure member countries conduct trade practices as per agreements signed by the members.
3. To provide a platform to negotiate and settle disputes of international trade between members.
codes: (a) 1 and 2 only (b) 1 and 3 only (c) 2 and 3 only (d) 1, 2 and 3
35.3 🌐🛒⚔️🧔 WTO D ISPUTES INVOLVING INDIA

Complaint at WTO’s Dispute Settlement Body (DSB) Outcome/Verdict

USA against India’s solar panel subsidies to local producers India lost.
USA against India’s ban on imported American chicken/poultry India lost.
USA against India’s export subsidies /tax benefits e.g. MEIS, SEZ, etc India lost.
Australia, Brazil and Guatemala against India’s sugar export subsidies India lost.

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In above cases, WTO’s Dispute Settlement Body (DSB) ordered India to stop such export
subsidies/tax benefits.
➢ 2019: India goes to WTO Appellate Body (अपीलीय निकाय) to appeal against DSB’s order.
➢ 2020: Indian Commerce Minister says, “we will not implement WTO's DSB’s orders, because
the appellate body (AB) is not functioning, so our appeal is pending.”
MCQ. Find Correct (Pre’24)
- Statement-I: India does not import apples from the United States of America.
- Statement-II: In India, the law prohibits the import of Genetically Modified food without the
approval of the competent authority.
Codes: (a) Both St-I and St-II are correct and St-II explains St-I
(b) Both St-I and St-II are correct, but St-II does not explain St-I
(c) St-I is correct, but St-II is incorrect. (d) St--I is incorrect, but St-II is correct
35.3.1 🌐🛒⚔️📯🧔 WTO’s Appellate Body (AB) Crisis
 It is a permanent body) to resolve appeals against DSB’s orders.
 It is ordinarily composed of 7 members, 4 year term & 1 reappointment.
 WTO Appellate Body members are appointed by the WTO members by consensus, (i.e. no
member-nation should formally object to candidate’s name).
 Since July 2017, the United States has been opposing AB appointments. So, body is under-
staffed/ dysfunctional. This has resulted in the ‘Appellate Body crisis’. (अपीलीय ट्रिब्यूनल में के स आगे बढ़
नहीं रहे, क्योंकि अमेरिका यहां पर नए जजों की नियुक्ति में बाधाएं डाल रहा है )
35.3.2 🌐🛒⚔️📯🧔 WTO Multiparty Interim Arbitration (MPIA) mechanism
➢ Due to the aforementioned appellate body crisis → some WTO members have created a
Multiparty Interim Arbitration (MPIA) body as a temporary solution.
➢ Members? EU, China, Brazil, Australia, New Zealand etc 20+ WTO members.
➢ India is not a member yet. India wants restoration of the original appellate body (AB). (उक्त
समस्या से अस्थाई रूप से लड़ने के लिए चीन सहित कु छ देशों ने 'बहुपक्षीय अंतरिम मध्यस्थता' प्रणाली बनाई है किं तु भारत उसका
सदस्य नहीं है, भारत डब्ल्यूटीओ की परंपरागत अपीलीय प्रणाली चाहता है)
35.4 🌐🛒👨‍⚖️: 🤝 WTO NEGOTIATIONS / SUMMITS / PACKAGES
Note: I have also given the outcome of the older submits because StatePSC examiners donot to
update their question bank regularly.
35.4.1 🤝 👨🏻‍⚖️
Most Favoured Nation (MFN)- अत्याधिक वरीयता वाले देश
(कु ल मिलाकर प्रत्येक देश ने बाकी देशो के साथ वही व्यवहार करना चाहिए जो वो अपने अति प्रिय मित्र देश के साथ कर रहा है)
 WTO agreements require that whatever treatment is being given to the Most Favoured Nation,
must also be extended to all other member countries. A member should not discriminate
between its trading partners- provided there is mutual-reciprocity.
 So even imported Chinese coal should be subjected to 0% import tax in India- but ONLY IF
there is reciprocity ke Indian shoes will be subjected to 0% import tax in China. (But, China may
not allow it, so India not bound to ↓ taxes on Chinese coal)

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 But in practice, MFN is not implemented in letter and spirit by some members. E.g. 1996: India
granted MFN status to Pakistan but Pakistan didn’t reciprocate (mainly) due to their local textile
industrialists’ lobby who feared competition from Indian textile imports.
 2019-Feb: India withdrew MFN status for Pakistan, following Pulwama attack on CRPF
personnel. India also ↑ customs duty by 200% on goods originating from Pakistan.
 Since Pak not giving India MFN treatment. So, there is no ‘legal-compulsion’ on India to give
them MFN status. even if Pak complained to WTO’s dispute redressal panel, it’ll lose the case.

🔠❓MCQ. MFN-Clause in WTO regime is based on the principle of [UPSC-CDS-2017-I]

a) non-discrimination between nations b] discrimination between nations
c) differential treatment between locals & foreigners d] uniform tariff across commodities

35.4.2 🤝 👨🏻‍⚖️
Least Developed Countries (LDC: सबसे से कम विकसित देश)
➢ are identified by the UN Economic and Social Council (ECOSOC: सं युक्त राष्ट्र आर्थिक और सामाजिक
परिषद). Somaliya, Ethiopia, Congo, etc.
➢ Least Developed Countries’ economic growth can ↑ if they are able to export more. So,
WTO agreements permit other countries to give duty free quota free access to exports from
LDC. and that is not considered as a violation of any other agreement.

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 ➢ e.g. If India levied 0% custom duty on Somalian pendrives, India will not be required to give
same treatment to Japanese pen drives under “MFN norm”, Bcoz Japan isnot LDC.
35.4.3 🤲Aid for Trade Initiative by WTO
WTO initiative to give funding to 3rd world countries and LDC for improving international trade.

35.4.4 Some keywords:

Before dwelling into summits, let’s keep a few terminologies in mind →
1. First world countries, Advanced Economies (AE), Developed Countries= such as USA Canada,
France and Germany etc. (प्रथम विश्व के देश, उन्नत अर्थव्यवस्थाएँ, विकसित देश)
2. Second world countries= USSR and its allied countries (e.g. Poland, Hungary, Cuba) which were
under the influence of Communist Socialist ideologies. However, with the collapse of USSR, the
term has become defunct (सोवियत सं घ के विघटन के बाद यह शब्द अप्रचलित/ मृत हो गया है.).
3. Third world countries, developing countries, Emerging market economies (EME)= India China,
Mexico, Brazil etc. Nowadays, “Global South” term also used for them. तीसरा विश्व, विकासशील देश,
उभरती हुई अर्थव्यवस्थाए, वैश्विक-दक्षिण
Some of the burning and contentious issues between 1st world vs. 3rd world at WTO →

35.4.5 🤝 👨🏻‍⚖️ Doha Development Round (Qatar 2001)

3rd world countries wanted following:

✓ 1st world should liberalize their trade regulation further so that 3rd world’s goods and services
can enter more easily in the first world’s domestic markets. अमरीकी बाजार में हमारे उत्पादों पे कम टेक्श लगे
✓ 3rd world should be allowed to keep various barriers to slow down the entry of 1st worlds
agriculture, manufactured goods and service exports in their domestic market. स्थानीय उद्योगों को
बचाने के लिए हम अमरीका के खिलाफ व्यापार-बाधाओं को कायम रखेंगे।
✓ 1st world shd give financial + technical assistance to 3rd world. आर्थिक व तकनीकी सहायता मिले
Obviously, USA and European countries would not like this. So, Doha round of negotiation
continues without conclusion. And in future summits the USA/EU would want WTO officials to
begin negotiations on the new matters lucrative to their MNCs (like ICT, E-Commerce) whereas 3rd
world nations will continue to insist that Doha round negotiations must be concluded first.
35.5 🪑 WTO MINISTERIAL CONFERENCES (MC)- NOTABLE LIST
Notable Place Year Comment / notable outcome if any
MC1 Singapore 1996 Started for first time.
MC4 Doha 2001 Doha Development Agenda: clash of first world versus

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 Notable Place Year Comment / notable outcome if any
third world. <learned in the previous section>
🌽1) food subsidy peace clause
MC9 Bali 2013
🚢 2) trade facilitation agreement
MC10 Nairobi 2015
🌽 Special Safeguard Mechanism (SSM) to protect
farmers in 3rd world countries.

MC11
Buenos Aires,
Argentina
2017 😰 failed to deliver any notable outcome.
Cancelled
@Nur-Sultan,
Kazakhstan
2020 😷 Cancelled by Corona
🐟 1) Fisheries subsidy agreement.
MC12 Geneva, Switzerland 2022
🧬 2) patent waiver for corona vaccines.
MC13 Abu Dhabi, UAE 2024 (1) 2 new members added. (2) food subsidy & fisheries
issue not resolved. (3) fund to help women exporters in
digital economy.

35.5.1 🤝👨🏼‍🌾 👨🏻‍⚖️ Food subsidies & peace clause: खाद्य रियायतें और शान्ति अनुच्छेद/उपधारा

Under WTO’s Agreement on Agriculture (AoA), 1st world and 3rd world countries are required to
limit their food-subsidies to 5% and 10% respectively to the value of their agriculture production.
➢ But, in absolute quantitative terms USA’s 5% will be much bigger than India’s 10% → 1 st
world countries are able to give larger amount of food subsidies to their farmers → export
them to 3rd world countries @cheap price, and ruining local farmers.
➢ India has a large population of poor farmers who need Govt support such as subsidies &
procurement at Minimum Support prices (MSP: न्यूनतम समर्थन मूल्य) More in Pill#4A.
➢ India also has a large number of malnourished poor families who need subsidized food
grains under National Food Security Act (NFSA खाद्य सुरक्षा अधिनियम/कानून) More in Pill#6.
➢ 2013: WTO ministerial conference at Bali (Indonesia) → India refused to sign any new
agreements until this food subsidy issue was resolved.
➢ So, WTO Peace Clause → it gave temporary immunity to India and other developing
countries. (अस्थायी- बचाव/ अल्पकालिक- प्रतिरक्षा)
➢ Basically, 3rd world nations can give any amt of subsidy for their food programs:
- (1) USA/Other countries cannot impose countervailing duty. प्रतिकारी शुल्क पर रोक
- (2) USA/Other countries cannot complaint to WTO about it. शिकायत पर गौर नहीं किया जाएगा

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 ➢ 2020: India informed WTO that in rice production, we've crossed the 10% subsidy limit (in
2018-19). But as per Peace clause, we’ve immunity! हम को खुली छू ट मिली है.
35.5.2 🤝👨🏼‍🌾 👨🏻‍⚖️
Food subsidies: Cairns Group
Agricultural exporting countries' group. Members: Thailand, Argentina, Australia, Bolivia, Brazil,
Canada etc. 20 nations. They want WTO members to ↓ /stop agri subsidies. India is not a member.
35.5.3 🤝 👨🏻‍⚖️Bali Package & Trade Facilitation Agreement / TFA (2013)
Bali Package is the trade agreement / outcome resulting from the WTO ministerial conference (मंत्री
सम्मेलन) 2013 @Bali, Indonesia. Its two significant components are :
1. Trade Facilitation Agreement (TFA: व्यापार सुविधा समझौता):

a. requires member countries to ↓ their bureaucratic delays, red tapes, inspector raj in
import-export of goods. (नौकरशाही, लाल फ़ीताशाही)
b. They’ve setup online portals where traders can seek permissions, pay fees, custom duties,
self declaration forms (like e-way bill) etc.
c. India & others ratified in 2016 → TFA became effective from 2017.
d. India set up a National Committee on Trade Facilitation (NCTF) under Cabinet
Secretary (IAS). Below him → a steering committee jointed headed by Revenue secretary
(IAS) and Commerce secretary (IAS). (व्यापार सुविधा पर राष्ट्रीय समिति → सं चालन समिति)
2. Peace Clause on subsidies → explained in previous section.
35.5.4 👩‍👦
Social and development subsidies
➢ - These subsidies provide food, housing, healthcare, education, and other basic needs to poor
families. We will learn about such schemes in pillar5 (Infra) and pillar6 (HRD)
➢ - WTO permits it- subjected to terms & conditions in Subsidies & Countervailing Measures
(SCM) and Agreement on Agriculture (AoA)
🔠❓MCQ. Find correct among the following statements: (Asked in UPSC-Pre-2017)
1. India has ratified the Trade Facilitation Agreement (TFA) of WTO.
2. TFA is a part of WTO’s Bali Ministerial Package of 2013.
3. TFA came into force in January 2016.
Answer Codes: (a) 1 & 2 only (b) 1 & 3 only (c) 2 & 3 only (d) 1, 2 and 3

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35.5.5 🤝 👨🏻‍⚖️ Nairobi Package & SSM (2015)

Nairobi Package resulted from the WTO ministerial conference 2015 @Nairobi, Kenya →
1. We’ll extend the Peace Clause for another “x” years.
2. Members must stop the subsidy on Agriculture Exports: 1st world countries must comply
immediately while 3rd world countries given a relaxed deadline.
3. If there is a surge of cheap agro exports from 1st world to 3rd world, then 3rd world countries
will have the right to temporarily increase tariff / taxes on them, to protect their local farmers. It’s
called “Special Safeguard Mechanism: विशेष सुरक्षा तंत्र (SSM).”
35.6 🐠 WTO-2022 S UMMIT (GENEVA)→ FISH SUBSIDIES AGREEMENT (मत्स्य सब्सिडी पर
समझौता)

WTO’s Agreement on Fisheries Subsidies (AFS) signed in WTO Sumit/ Ministerial Conference 2022
at Geneva. AFS prohibits three kinds of subsidies: (निम्न किस्म की मदद से सब्सिडी पर पाबं दी)
 ✋🚨 (1) illegal, unreported, or unregulated (IUU) fishing
 ✋🚨 (2) fishing of already over-exploited species/stocks
 ✋🚨 (3) fishing on unregulated high seas.
🚩👶🏻 FAQ: What do above things mean, how are they different from each others? ANS. NOTIMP.
Sufficient to know ke WTO wants to stop over-fishing.
India wants special and differential treatment (S&DT). (भारत को ख़ास और भिन्नकर छू ट चाहिए):
35.6.1 🤝🐠 Signing vs ratification(हस्ताक्षर बनाम अनुसमर्थन)
• step1: A country signs a global agreement.

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 • step2: The country’s government needs to ratify it, i.e., taking approval from the Country’s
Cabinet/President/King/Parliament, depending on the nature of the agreement and the
nature of the polity/constitution in a given country.
Nation India USA
rectification requires → Cabinet Approval Parliament (=Congress) approval.
Note: Above table from IndianExpress. ChatGPT giving double-dholki (=ambivalent) answers.
35.6.2 🤝🐠 Ratification : Fisheries Agreement
• 2/3rds of WTO members need to formally accept (=ratify) the agreement before it becomes
binding. (दो तिहाई सदस्य देशों के अनुसमर्थन के बाद ही कोई WTO का समझौता कानूनी रूप से बाध्य बनता है. )
• 2024-Feb: 70 nations ratified. (Target quota approx 110 members)
• So, the Fisheries Agreement is NOT YET come into force. (as of 2024-Apr).

35.7 🐪 🤝 WTO-2024: A BU DHABI, UAE OUTCOMES

35.7.1 🐪 🤝 🛑✋ WTO-2024 → investment facilitation agreement (IFD) REJECTED
• WTO allows member countries to form a group and have agreements among themselves-
even if all members do not sign it. Such agreements are called plurilateral agreements/ Annex
4 Agreement.
• 2017: China proposed Investment Facilitation for Development Agreement (IFD)-to
promote transparency of investment measures; streamlining and speeding-up investment-
related authorisations procedures; enhancing international cooperation, information
sharing, and the exchange of best practices.
• 2024: China and 100+ out of 160+ member-nations proposed IFD to be added as a
plurilateral agreement at the WTO-2024 Conference.
• But, India and [Link] opposed to IFD proposal, stating that it is a non-trade issue and falls
outside the mandate of the WTO.
• IFD agreement requires national government to consult (foreign) investors on policy
matters. India doesn’t like this, bcoz it affects countries’ sovereignty.
• (विकास के लिए निवेश सुविधा समझौता. चीन इसे वोट में लाने की वकालत कर रहा है किं तु भारत और दक्षिण अफ्रीका विरोध में
क्योंकि फिर सरकारों ने विविध नीति निर्माण में निवेशक की भी राय लेनी होगी - तो देश की सं प्रभूता पे जोखिम। )
35.7.2 🐪🤝 Food Subsidy: Thailand opposed India
• Thailand is the second largest rice exporter in the world, after India.
• WTO-2024 Conference: Thailand accused India of exporting rice at very low prices due to
government subsidies. but this matter is not resolved, YET.
35.7.3 🐪 🤝 Women Exporters in the Digital Economy (WEIDE) Fund by WTO (2024)
• Boss: WTO and the International Trade Centre (ITC, a joint-agency made by UN+WTO)
• Fund size: $ 50 million. (UAE was first to donate $ 5 million to it)
• Launched on the sidelines of the 13th WTO Conference @Abu Dhabi, UAE (2024)
• Objective: To help women entrepreneurs in 3rd world and LDC to adopt digital technologies
and expand the online presence of their enterprises. (महिला उद्यमियों/निर्यातकों को सहायता दी जाएगी
ताकि वे ऑनलाइन अंतर्राष्ट्रीय व्यापार में जुड़ सके )

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🔠❓MCQ. Find correct statements relating to WTO: [UPSC-CDS-2014-II]
1. The WTO deals with the global rules of trade between nations.
2. The goal of the WTO is to help producers of goods and services, exporters, and importers conduct
their business.
3. The WTO, which is a successor body of the General Agreement on Tariffs and Trade, came into
being following the Uruguay Round of Negotiations.
4. The WTO distances itself in framing of rules on trade in intellectual property rights.
Codes: (a) 1, 2 and 3 (b) 2, 3 and 4 (c) 1, 2 and 4 (d) 1 and 3 only
35.8 🤝C ONVENTIONAL GRAVITY MODEL (पारंपरिक गुरुत्वाकर्षण मॉडल)

 Developed by Jan Tinbergen, a Dutch economist in 1960s.

 It explains factors affecting trade between 2 countries: (दो देशों के बीच व्यापार को प्रभावित करने वाले कारक)
FACTOR PROPORTION EXAMPLE
A country with a larger GDP will attract more trade
Economic size/GDP Directly proportional
and investment from a smaller GDP country. e.g.
(सकल घरेलू उत्पाद) (सीधा अनुपात)
SriLanka-India vs Bhutan-India
Geographical
Inversely proportional more distance = less trade, due to transportation
distance (भौगोलिक
(विपरीत अनुपात) cost e.g. India-Mexico vs [Link]
दूरी/अंतर)
Over the time more economists have added following factors
➢ Exchange rates (विनिमय दर)

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 ➢ Income levels of customers (ग्राहकों की आय का स्तर)
➢ Tariff and non-tariff barriers (शुल्क और ग़ैर-शुल्क बाधाएँ)
➢ Infrastructure, skilled manpower (बुनियादी अवसं रचना, कु शल मानव सं साधन)
Therefore signing free trade agreements may not immediately show +ve impact on India from day1.
📙
It takes time for above factors to mature/show effect. Said ES23 ( इसलिए मुक्त व्यापार समझौता करने के पहले
दिन से ही भारत पर सकारात्मक असर नहीं दिखेगा क्योंकि उक्त कारकों को परिपक्व होने में और अपना असर दिखाने में समय लगता है)

MCQ. If India enters into Free Trade Agreements (FTAs) with other nations, then the growth of
exports of India would depend upon which of the following? (CDS-1-2024)
1. Extent of tariff reduction vis-à-vis MFN tariffs 2. Extent of relaxation in terms of rules of origin
3. Extent of relaxation in sanitary and phytosanitary measures
4. Level of infrastructure in India 5. Income in nations with which India enters into FTAS
Code: (a) 1, 3 and 4 only (b) 1, 2 and 4 only (c) 2, 3 and 5 only (d) 1, 2, 3, 4 and 5

35.9 🤝T RADE AGREEMENTS TYPES: व्यापार समझौते के प्रकार

1. 📝Partial Scope Agreement (PSA: आंशिक व्यापकता समझौता ): Trade between two countries for a
small list of goods @reduced tariffs.
2. 📝Preferential Trade Agreement (PTA: अधिमानी व्यापार समझौता) / Free Trade Agreement (FTA:
निःशुल्क व्यापार समझौता): Member= lower tariff; non-members: regular tariff.
a. All FTAs are not same. Tariff and list of allowed goods/services could vary depending on
country to country. E.g. India Mauritius Free trade agreement: Comprehensive
Economic Cooperation and Partnership Agreement (CECPA)- More than 300 Indian
goods from agriculture, textile, electronics will get concessional customs duties in
Mauritius. More than 600 Mauritius goods will get Similar treatment in Indian market.
(व्यापक आर्थिक सहयोग और भागीदारी समझौता जिसमें एक दूसरे पर रियायती सीमा शुल्क)
b. Depending on number of participants it can be bilateral or multilateral or regional or
global (e.g. WTO, ऐसे समझौते द्विपक्षीय बहुपक्षीय क्षेत्रीय या वैश्विक हो सकते हैं).
c. If countries go further beyond just lower tariffs e.g. relaxed norms for entry of foreign
investment (FDI) and foreign workers → then it becomes
i. CEPA = Comprehensive Economic Partnership Agreement or
ii. CECA = Comprehensive Economic Cooperation Agreement.
iii. PHD over CEPA vs CECA = NOT IMPORTANT. Sufficient to know- CEPA
covers more areas than CECA. E.g. IPR, visa, investment, taxation etc.
➢ Sometimes they come up with even more fancy names like i) CECPA = Comprehensive
Economic Cooperation and Partnership Agreement ii) ECTA (Economic Cooperation and
Trade Agreement). But pedantry over all such terms = NOT IMP for Exam.
3. 📝Customs Union (CU: सीमा शुल्क सं घ ): FTA in which members apply a common external tariff
(CET) for non- members. E.g. East African Community (EAC). Caribbean Community

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 (CARICOM, although according to some sources now it evolved into Common Union but that is
not imp. Location is imp.)

4. 📝Common Market (CM: सामान्य बाजार): Customs union where factors of production (capital/FDI,
labour) can move freely amongst members e.g. MERCOSUR- [Link].
5. 📝Economic Union (EU: आर्थिक सं घ): common market where member countries keep common
currency & tariff. Allow entry of goods, services, capital and labour among themselves with
minimum restrictions. They decide their fiscal policies and diplomatic policies through a

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 common parliament ‘European Parliament’, and their monetary policies through a common
central bank – ‘European Central Bank’.
35.9.1 🤝
FTA: India Mauritius FTA/CECPA, 2021 (मॉरिशस के साथ मुक्त व्यापार समझौता)
 India Mauritius Free trade agreement: Comprehensive Economic Cooperation and Partnership
Agreement (CECPA) came into effect from 1st April 2021.
 More than 300 Indian goods from agriculture textile electronics will get concessional customs
duties in Mauritius (300 से अधिक भारतीय निर्यात पर मॉरिशस द्वारा सीमा शुल्क में रियायत)
 More than 600 Mauritius goods will get Similar treatment in Indian market
35.9.2 🤝 FTA: India UAE CEPA, 2022
UAE to ↓ taxes on Indian products India to ↓ taxes on UAE products
Indian electronic goods, chemicals and 90% of the goods/services from UAE to India.
petrochemicals cement, ceramics and
machinery gems and jewelry, textiles, leather,
footwear, sports goods, engineering goods, and
pharmaceuticals.
 😍Agreement covers rules of origin, government procurement, intellectual property rights, and
e-commerce etc. (उत्पत्ति के नियम, सरकारी ख़रीद, बौद्धिक सं पदा अधिकार, इ-वाणिज्य)
 🤩 India-UAE CEPA marks the first time India has included a chapter on e-commerce/ digital
trade in an FTA. (ये भारत का पहला ऐसा व्यापारिक समझौता है जहाँ पर डिजिटल व्यापार की भी बात हुई है)
 🤩 This will give big market access to Indian exports to UAE → further towards not only in
UAE, but also in Middle East and Africa.
35.9.3 🤝 FTA: India Australia ECTA (आर्थिक सहकार और व्यापार समझौता)
India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA-2022)
💂 ‍♂️Aussie to↓ taxes on 🧔🏼
‍♂️India to↓ taxes on Aussie ✋
India kept these sensitive
Indian products products items OUT
Engineering goods, gems 0% customs duty on Coal, sheep Australian Dairy products,
and jewellery, leather, meat, wool, LNG, alumina, wheat, rice, sugar,
textiles, apparel, footwear- metallic ores,Avocados, onions, chickpeas, beef, apples, toys,
total 96% of India’s exports pistachios, blackberries, cashews, iron ore .
to Australia. blueberries, raspberries. Indian govt will not↓ taxes
↓ Customs duty on – wine, on above Aussie items.
almond, cotton, orange, lenthil etc
🤩 This create 1 million+ jobs 🤩
This will help Indian for energy 🤩
This will protect the local
in India security, cheap raw material Indian industry
(रोज़गार सृजन /नौकरी निर्माण) (ऊर्जा सुरक्षा और सस्ता कच्चा माल भारत को (भारत सरकार ने ऑस्ट्रेलिया से आने
मिले) वाले कु छ ऐसे सं वेदनशील चीज़ें जैसे कि
दूध गेहूँ चावल चीनी इत्यादि को इससे
बाहर रखा है ताकि भारत के किसानों का
नुक़सान न हो)

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 ➢ 🤩👩🏻‍🎓 Australian govt relaxed Work-visa norms for Indian graduates from STEM
(Science, Technology, Engineering and Mathematics).
➢ 😍💊 faster approval to Indian medicines in Australian market (if such medicine is already
approved in Canada / European Union) (यदि भारत की दवाई को कै नेडा/ यूरोपीय सं घ ने अनुमति मिल चुकी है
तो ऑस्ट्रेलिया में उसे जल्दी से अनुमति दी जाएगी।)
➢ 😍 🍋 double taxation avoidance agreement for specific category of IT companies. (More in
📑Pillar#2B: Tax Avoidance) (सूचना प्रौद्योगिकी से जुड़ी कं पनियों पर दोहरे कराधान से मुक्ति इत्यादि)
➢ 😍 bilateral trade will ↑ to $50 billion within 5 years and generate 1 million+ jobs in India.
35.9.4 🤝⛰️ India-EFTA Trade and Economic Partnership Agreement (TEPA) 2024-Mar

• 1960: European Free Trade Association (EFTA) organization with 4 nations viz. Switzerland,
Iceland, Norway & Liechtenstein. (यूरोपीय मुक्त व्यापार सं घ (ईएफटीए))
• 2024: EFTA-India signed Trade and Economic Partnership Agreement (TEPA) (व्यापार और
आर्थिक साझेदारी समझौता)
• with following features:
• EFTA will do FDI of USD 100 billion in India in the next 15 years → and this (FDI) will help
creating 1 million direct jobs in India. The investments do not cover foreign portfolio
investment (FPI). (इन यूरोपियन देशों ने भारत में 100 बिलियन डॉलर का प्रत्यक्ष विदेशी निवेश और एक मिलियन
नौकरियां निर्मित करनी होगी - अगले 15 सालों में)
• First time in the history of FTAs, a legal commitment is made to FDI and job creation.
(इतिहास का सबसे पहले मुक्त व्यापार समझौता जिसमें निवेश और रोजगार सृजन की बातें कानून रूप से बाध्य होंगी।)
• Tax reduction on import/export of more than 90% of items.
• However, gold, dairy, soya, coal and sensitive agricultural products are kept in exclusion list
(= no tax reduction on them). (इनके आयात निर्यात में टैक्स/करो में कोई छू ट नहीं दी जाएगी।)
• Mutual Recognition (of college degrees) in Professional Services like nursing, chartered
accountants, architects etc. (एक दूसरे की व्यवसायिक पदवी/डिग्रियों को मान्यता दी जाएगी)
MCQ. India signed TEPA with EFTA. Which one of the countries is not a member of this group?
(CDS-2024-2) (a) Switzerland (b) Norway (c) Iceland (d) England

35.9.5 💍
Interim (early harvest) trade agreement (शादी से पहेले सगाई)
 Signed between two countries on a small list of goods and services. (एक “अंतरिम व्यापार समझौता” जिसमें
वस्तुओं और सेवाओं की एक छोटी सूची पर टैक्स कम कीए जाए)
 They act as a frontrunner before signing a more comprehensive free trade agreement (FTA).
 2022: India and UK exploring to sign an “early harvest trade agreement” covering some 40-65%
goods and services. In the final free trade agreement (FTA) agreement, we aim to cover 90%
goods/services’ import export. (बाद में बड़ा मुक्त व्यापार समझौता करेंगे.)

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 Similarly, India-Canada Early Progress Trade Agreement (EPTA).
🔠❓How many nations are in CARICOM, a grouping of Caribbean nations? (UPSC-Geologist-
2020) a.10 b. 12 c. 15 d. 18
<While the answer is 15 but poor cost:benefit chasing such KBC GK. Better to skip>
35.10 🛒⛷📝F REE TRADE AGREEMENTS → TPP, TPP11, TATIP, IPEF, RCEP
35.10.1 🛒⛷📝 Transatlantic Trade and Investment Pact (TTIP) #NOT-yet-Signed
 अंतर-एटलांटिक व्यापार एवं निवेश समझौता:
 Proposed free trade agreement between USA & EU with objectives similar to TPP- reduce tariff,
easier entry of foreign investment etc. Negotiations are ongoing but it is not yet signed.
35.10.2 🦅 U.S.-E.U. Trade and Technology Council (TTC) (2021)

2021: Started by President Biden to coordinate technology and trade policy between the United
States and European Union - with 5 areas of cooperation
- 1) Export controls - 2) Foreign direct investment screening
- 3) Secure supply chains (especially semiconductors)
- 4) Technology standards & Artificial Intelligence - 5) Global trade challenges
🔠 MCQ. Statement-A: Recently, the United States of America (USA) and the European Union (EU)
have launched the ‘Trade and Technology Council’. [Prelims23-SET-A-Q087]
Statement-R: The USA and the EU claim that through this they are trying to bring technological
progress and physical productivity under their control.
A) Both A and R are true and R is the correct explanation of A.
B) Both A and R are true but R is not the correct explanation of A.
C) A is true but R is false. D) A is false but R is true.
35.10.3 🦅 Atlantic Declaration - USA-UK (2023-June)

Objective? To ensure international stability -- from

1. Authoritarian states e.g. Russia & China 2. Disruptive technologies e.g. A.I, Blockchain
3. Non-state actors e.g. Terrorists 4. Transnational challenges e.g. climate change

35.10.4 🛒⛷📝 Trans Pacific Partnership (TPP: ट्रांस पैसिफिक साझेदारी) #FAIL
USA proposed free trade agreement among 12 countries: US, Japan, Malaysia, Vietnam, Singapore,
Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru.

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– Aimed to have lower tariffs for participant countries, easier norms for labour, environment and
investment. भागीदार देशों के लिए टेक्स/करो में कमी, श्रम, पर्यावरण और निवेश के लिए आसान मानदंड।
– 2016: President Trump withdrew from the negotiation claiming, “TPP will take away jobs from
USA because companies will setup factories in Mexico where labour is cheaper, and then such
cheap products will be dumped in USA, yet we’ll not be able to impose heavy taxes on them.” So
TPP has become defunct.

35.10.5 🛒⛷📝 TPP-11 or CPTPP

➢ While USA-led TPP could not materialize, but some of the nations in Pacific region
separately worked out a ‘Comprehensive and Progressive Agreement for Trans-Pacific
Partnership’ (CPTPP or commonly called TPP-11) in 2018-Dec.
➢ Presently, it has 11 signatories: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico,
New Zealand, Peru, Singapore, and Vietnam.

35.11 🌐🤝🤵 I NDO-PACIFIC ECONOMIC FRAMEWORK (IPEF)

 Intro-Origin: 2022- USA launched it on the sidelines of QUAD Summit in Tokyo, Japan.
 President Biden launched IPEF bcoz 1) Trump pulled out of TPP11. Now President Biden need
to make friends again in Pacific 2) To counter RCEP, China’s Belt-Road-Initiative. (3) ↑
influence over Asia. (एशिया पैसिफिक में अपना प्रभुत्व वापस पुनः स्थापित करने के लिए अमेरिका की मुहिम है ये)
 includes 14 partners – Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic
of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States and Vietnam
 IPEF is not a traditional trade agreement. Has four pillars: (परम्परागत व्यापार समझौता नहीं।)
Pillar Matter India’s status as of 2024-Sept
Pillar I Trade Observer.
Pillar II Supply Chain Resilience (आपूर्ति श्रृंखला लचीलापन) Signed and Ratified.
Pillar III Clean Economy Signed 2024-Sept
Pillar IV Fair Economy: combat corruption, tax-evasion Signed 2024-Sept
35.11.1 🌐🤝🤵 IPEF → Clean Economy Investor Forum (CEIF)
IPEF launched Clean Economy Investor Forum (CEIF) to mobilise funding into sustainable
infrastructure, climate technology and renewable energy projects.
Org India’s Nodal organisation?
IPEF Department of Commerce
IPEF → Clean Economy Invest India - a company started by Commerce Ministry. It acts as
Investor Forum (CEIF) India’s National Investment Promotion Agency.

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35.12 🛒⛷📝 R EGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP (RCEP)

✍🏻
35.12.1 Introduction to RCEP
• RCEP (व्यापक आर्थिक भागीदारी का क्षेत्रीय समझौता) is a proposed free-trade agreement (मुक्त व्यापार
समझौता) between the 10 ASEAN countries and ASEAN’s six Free-Trade Agreements partners
viz. Australia, China, India, Japan, New Zealand and S. Korea. (मुक्त व्यापार समझौता)
• 2019: India refused to sign it- mainly fearing the damage to Indian dairy, spices, MSME
industry from cheap imports from China, New Zealands (dairy) etc. More Analysis given in
Mains HDT.
• 2022: ASEAN-India Trade in Goods Agreement (AITIGA) negotiations going on.
🔠❓MCQ. Consider the following countries:(Asked in UPSC-Pre-2018)
[Link] [Link] [Link] [Link] [Link]
Which of the above are among the 'free-trade partners' of ASEAN?
(a) 1, 2, 4 and 5 (b) 3, 4, 5 and 6 (c) 1, 3, 4 and 5 (d) 2, 3, 4 and 6
35.12.2 Why FTA increasing as per ES23 📙
 Free trade agreements between nations are increasing because
 Recent WTO summits have failed to give positive outcomes, due to bickering among nations
over Doha Development Agenda, Food Subsidy etc. (वर्तमान समय में डब्ल्यूटीओ परिषद बहुत सकारात्मक
परिणाम नहीं दे सकी, क्योंकि सदस्यों में आपसी मनमुटाव और पुराने मामलों पर झगड़े चलते रहते हैं)
 Free Trade Agreements are much easier to finalise than WTO agreements because friendly
nations show more flexibility towards each other. (e.g. Compared to USA vs China on Doha
Agenda) (डब्ल्यूटीओ के मुकाबले मुक्त व्यापार समझौते आसानी से निपट जाते हैं क्योंकि मित्र राष्ट्र एक दूसरे के प्रति ज्यादा लचीला
रवैया दिखाते हैं)
FTA give following benefits to member nation:
 Easier access to raw materials after tax-cuts. (कच्चा माल सस्ते दामों पर मिले.)
 Lower prices for consumers (ग्राहकों के लिए भी सस्ती कीमतें)
 increasing customers/market size for export products (ग्राहकों में बढ़ोतरी)
 Protecting against unfavourable trade policies of other countries, by finding new friends. e.g.
China vs India-Aussie. (अन्य देशों की नकारात्मक नीतियों के खिलाफ लिए नए दोस्त खोज लिए जाएं )
 promoting peace and stability (शांति और स्थिरता.)
35.12.3 🛒 ⚖️ India-ASEAN to review FTA by 2025

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 ➢ 2009: India-ASEAN FTA signed → 2023: Indian feels this FTA is asymmetric- bcoz It is
helping the ASEAN exporters more than it is helping the Indian exporters. (असं तुलित समझौता
जिसमें आसियान के निर्यातकों को ज्यादा फायदा हुआ है, भारत के निर्यातकों को कम फायदा हुआ है)
➢ So, India and the ASEAN countries will form a committee to review / modify the agreement
by deadline of 2025.

💼
35.12.4 Budget-2020: FTA ‘rules of origin’ (उत्पत्ति के नियम)
- 1998: India - Sri Lanka FTA. So ink manufactured in SriLanka = 0% Indian customs duty when
imported in India.
- But sometimes Chinese company manufacture ink bottles in China, transports to its Sri Lankan
company → Sri Lanka’s (phoney/namesake) company pastes a label “this bottle manufactured in
Sri-Lanka” → sell them in India @0% customs duty?
- So, FTA agreements contain 'rules of origin'. Which requires that minimum x%
manufacturing/processing/value addition must be done in originating country (SriLanka in our
example) before it’s eligible for 0% customs duty.
- Originating country (Srilanka) cannot dump goods from some third country (China) in the
Indian market by just putting a label on it. (ताकि, उदगम/ निर्यात करता देश किसी तीसरे देश की वस्तुओ पर अपना
लेबल चिपका के भारत में कर-मुक्ति के साथ न बेच सके .)
📝
35.12.5 Commerce Ministry: Certificate of Origin (उदगम प्रमाण पत्र)
 India has signed a free trade agreement with many countries. Such agreements provide that
foreign partner nations will levy 0% or reduced taxes on the imported items of India.
 But for this, Indian exporters need to submit a document to the Foreign partner country' landing
port that "indeed the item was manufactured and sent from India."
 Such Certificate of Origin (CoO) is issued by the Director general of foreign trade under the
commerce ministry. (भारत से निर्यात किया गया सामान भारत द्वारा ही बनाया गया है ऐसा प्रमाण पत्र ताकि मित्र राष्ट्र उस पर
मुक्त व्यापार समझौते के अंतर्गत टैक्स में रियायत दे)
35.12.6 📘📘 Economic survey: Observations abt India’s Trade Agreements
Shifted to Mains
35.12.7 🛒⛷📝 Trade agreements losing shine → NAFTA & SAFTA
NAFTA ➢ North American Free Trade Agreement; उत्तरी अमेरिका निशुल्क व्यापार समझौता (1994)
involves Canada, USA and Mexico.
1994 ➢ However, Trump felt NAFTA harms the American interests → 2018: He made a
deal with Mexico and Canada to replace NAFTA with a new agreement called
United States-Mexico-Canada-Agreement (USMCA).
SAFTA ➢ South Asian Free Trade Area (दक्षिण एशियाई मुक्त व्यापार क्षेत्र) is a trade agreement of
SAARC nations- Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal,
2004 Pakistan and Sri Lanka.
➢ 2016: India refused to attend SAARC Annual summit @Pakistan, after Uri-Attack.

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 In 2019 India raised duties on Pakistani goods so SAFTA’s is losing its shine.
AFCFTA ➢ African Union (AU) members have signed the African Continental Free Trade
2019 Agreement (AfCFTA) covering 54 nations.

35.13 🌐🛒🤼‍♀️ B URNING ISSUES IN INTERNATIONAL TRADE

35.13.1 🌐🛒🤼‍♀️ Protectionism, Trade war: सं रक्षणवाद, व्यापार युद्ध

Refer to Mains Handout

35.13.2 China shock 2.0, China+1 Strategy, Economic Decoupling
Refer to Mains HDT.
35.13.3 🌐🛒🤼‍♀️🎃USA’s Special 301 report

Annual report that lists the countries who are harming the Intellectual Property Rights: (IPR: बौद्धिक
सं पदा अधिकार)- copyrights, patents and trademarks of American companies.
- These countries are classified into categories such as “Priority Foreign Country” (Most
dangerous)> "Priority Watch List" > "Watch List" etc.
- Depending on classification, USA will complaint to WTO and / or spend money on those
countries to ↓ piracy (e.g. training and capacity building of Russian police officers & China’s
cybercrime courts etc.).
- 2018: India, Russia, China etc. are in priority watchlist. Mainly because of their hackers, movie

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 piracy, counterfeit products; India because of its drug patent norms & NPPA which reduce the
profitability of US pharma companies’ patented drugs.
35.13.4 🌐🛒🤼‍♀️🎃 USA’s Generalized System of Preferences (GSP) list
यूएसए की प्राथमिकताओं की सामान्यीकृ त प्रणाली सूचि
If a developing country’s name is in this list, its exports will be subjected to zero/lower import duties
in USA (for selected products only). (विकासशील देशों से अमेरिका जाने वाले कु छ वस्तुओं पर अमेरिका, टैक्स कम लगाएगा)
- 2019: Trump removed India from GSP list, citing India has imposed heavy import duties on
Harley Davidson bikes and other American exports. (हालाँकि ट्रम्प ने भारत को इस सूची से हटा दिया था)
- As such most of the Indian exported goods to USA are not in the GSP list in the first place, so
this blacklisting will not harm India much, albeit, Indian textile companies are worried that GSP-
removal will make Indian garments more expensive in USA.
35.13.5 🌐🛒🤼‍♀️🎃Global System of Trade Preferences
Deleting from handout because faded topic.
35.13.6 💂🏼👋🏼
BREXIT = BRITAIN EXIT & How will affect India?

Shifted to Mains. #RAFTAAR

🔠❓MCQ. The term ‘Digital Single Market Strategy’ seen in the news refers to(Pre-2017)
(a) ASEAN (b) BRICS ✅ (c) EU (d) G20
🔠❓MCQ. ‘Broad-based Trade and Investment Agreement (BTIA)’ is in the context of
negotiations between India and_ _ _ _(Asked in UPSC-Pre-2017)
✅ (a) European Union (b) GCC (c) OECD (d) SCO
✅ Note: I’ve directly ticked the answer for these TWO MCQs, as these terms are outdated CA for
🌐🤝O
2024-25. I gave MCQ here only for your observation.
36 THER NOTABLE GROUPINGS RELATED TO ECONOMY
36.1 🌐🤝🦁🐘G ROUPINGS: INDIAN SUBCONTINENT
SAARC, 1985 BIMSTEC, 1997
South Asian Association for Regional Bay of Bengal Initiative for Multi-Sectoral
Cooperation दक्षिण एशियाई क्षेत्रीय सहयोग सं घ Technical and Economic Cooperation
(BIMSTEC) बहुक्षेत्रीय तकनीकी और आर्थिक सहयोग के लिए
बं गाल की खाड़ी पहल

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 SAARC, 1985 BIMSTEC, 1997
HQ: Kathmandu, Nepal (1985) Dhaka, Bangladesh (1997)
8: Afghanistan, Bangladesh, Bhutan, India, 7 members: Bangladesh, India, Myanmar, Sri
Nepal, Maldives, Pak & Sri Lanka. Lanka, Thailand , Nepal and Bhutan.
- 2016: summit @Islamabad cancelled after  Summits every four years.
India and others boycotted due to Uri attack.  2018 summit @Kathmandu, Nepal.
- Then no annual summits in 2017, 2018 etc.  2022: summit @Colombo, Sri Lanka (virtual
mode)
😰Bitter areas: Myanmar coup & Rohingya crisis
→ outflow of refugees India and Thailand.
(म्यानमार शरणार्थियों की समस्या के चलते आपस में थोड़ी कड़वाहट)
- SAFTA losing its shine due to non-cooperation after Pakistan’s terror attacks on India.
- India has setup South Asian University (SAU-2010) @ Delhi (2010) for SAARC students.
- India launched South Asia Communication Satellite (GSAT-9) in 2017 to provide tele-
medicine, tele-education, banking, television broadcasting facilities to SAARC nations.
MCQ. Which of the following are the objectives of SAARC ? (CAPF-2023)
1. To promote the welfare of the peoples of South Asia and to improve the quality of life
2. To promote and strengthen collective self-reliance among the countries of South Asia
3. To contribute to mutual trust, understanding and appreciation of one another's problems
4. To work towards ending cross-border terrorism
Codes: (a) 1 and 2 only (b) 1, 2 and 3 only (c) 1, 2, 3 and 4 (d) 3 and 4 only

36.1.1 🌐🤝🦁🐘 Mekong- Ganga Cooperation (2000)

India + five of the ASEAN countries, namely, Cambodia, Laos, Myanmar, Thailand and Vietnam. for
cooperation in tourism, culture, education, transport, communications. (पर्यटन, सं स्कृ ति, शिक्षा, परिवहन,
सं चार). Mekong river starts from China → flows through Myanmar, Laos, Thailand, Vietnam,
Cambodia → drains in South China Sea.

36.2 🌐🤝🈶 G ROUPINGS: ASEAN VS SCO

ASEAN SCO
Association of Southeast Asian Nations : Shanghai Cooperation Organization :
दक्षिण पूर्व एशियाई राष्ट्र सं घ शं घाई सहयोग सं गठन
1969 → Bangkok declaration → HQ: Jakarta, - 2001 → HQ: Beijing, China.
Indonesia. - Regional Anti-Terrorist Structure (RATS)
8th August is celebrated as ASEAN Day. @Tashkent, Uzbekistan
10 Members: Brunei, Cambodia, Indonesia, - 6 founding members: Russia, China,
Laos, Malaysia, Myanmar, Philippines, Kazakhstan, Kyrgyzstan, Tajikistan and
Singapore, Thailand and Vietnam. Uzbekistan.
Chairmanship of ASEAN rotates annually - +2 new members: India & Pak (2017)
based on the alphabetical order of the English - +1 new member: Iran (2023)
names of Member Nations. - official languages of the SCO are Russian and

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 ASEAN SCO
Chinese.
- 2018: marked the 25th Anniversary of ✓ 2002: SCO enjoys observer status in the UN
ASEAN-India Dialogue Relation, their General Assembly.
leaders were invited to India → Delhi ✓ 2017: SCO summit at Astana, Kazakhstan →
declaration with the theme “Shared Values, India, Pak formally given membership.
Common Destiny” ✓ 2023: India; Theme- 'Towards a SECURE SCO"
- Their 10 leaders also graced our 26th ✓ 2024: Astana (Kazakhstan)
January 2018 Republic Day parade as chief ✓ 2024-Oct: SCO Annual council of Heads of the
guests. Govt summit- @Islamabad, Pak. India’s foreign
- 2023: @Indonesia. 2024: @Laos minister S Jaishankar attended.
🔠 MCQ. Which of the following statements about ASEAN are correct? (CDS-2023-ii)
1. The Chairmanship of ASEAN rotates annually based on the alphabetical order of the English
names of Member States.
2. The Chairmanship is decided by voting among the Member States.
3. "One Vision, One Identity, One Community" is the ASEAN motto.
4. 12th August is celebrated as ASEAN Day.
Codes: (a) 1 and 2 only (b) 1 and 3 only (c) 3 and 4 only (d) 1, 2, 3 and 4
MCQ. Find correct about SCO? (CDS-2024-2)
1. The official languages of the SCO are Russian and Chinese.
2. The SCO enjoys observer status in the UN General Assembly.
3. The SCO consists of 13 member states.
Codes: (a) 1 only (b) 1 and 3 (c) 1 and 2 (d) 2 and 3
36.2.1 ☪️🤝 Afghanistan 6+2+1 group for redevelopment of Afghanistan
6: neighbouring countries: China, Iran, Pakistan, Tajikistan, Turkmenistan and Uzbekistan;
+ 2 global players the United States and Russia, and +1: Afghanistan itself.
36.3 🌐🤝🈶 G ROUPINGS: OCEAN-RIM WALLA
Indian Ocean Rim Association (IORA); Asia-Pacific Economic Cooperation (APEC)
हिंद महासागर रिम/किनारा एसोसिएशन (IORA) एशिया-प्रशांत आर्थिक सहयोग
22 Indian Ocean rim nations. India is a member. 21 Pacific Rim ocean economies. India is not a
China-USA are dialogue partners. member, China-USA are members.
Setup in 1997, HQ: Ebene, Mauritius 1989, HQ: Singapore
- 2018 council of ministers’ meeting - 2018 summit @Port Moresby, Papua New
@[Link]’s Durban- established Mandela Guinea. India is keen to become member but
Scholarship, added Maldives as a member but not yet added.
blocked membership of Myanmar due to - 2019 summit @Chile cancelled due to civilian
[Link]’s opposition. unrest in the country.
2023: Summit at Colombo, SriLanka. - 2020-Virtual summit adopted “Putrajya
Vision 2040” for economic cooperation and
development partnership.

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36.4 🌐🤝🧱 G ROUPINGS: BRICS
Year Event
2001 Economist Jim O’Neill coined the term BRIC
2009 First summit by Brazil, Russia, India, China and South Africa.
2011 [Link] joined as member
2014 BRICS New Development Bank (NDB) formed
Summit @Johannesburg, [Link]. Theme: “BRICS and Africa: Partnership for Mutually
2023
Accelerated Growth, Sustainable Development and Inclusive Multilateralism”.
New members to join: Egypt, Iran, Saudi Arabia, Ethiopia, and UAE.
2024
(Meanwhile, Argentina was invited but refused to join)
2024 Summit @Kazan (Russia). Outcomes? Ref Mains HDT.
➢ Role of secretariat is played by its pro tempore presidency. e.g. 2022: China, 2023: [Link]
➢ BRICS aims for 3 pillars of cooperation:
o - (1) Political and Security Cooperation
o - (2) Financial and Economic Cooperation
o - (3) Cultural and People-to-People Cooperation

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36.4.1 🌐🤝🧱 BRICS Johannesburg Declaration (2023) & Kazan Declaration (2024)
Refer to Mains HDT.
36.5 🌐🤝G ROUPINGS: BRICS, OECD, OPEC & JAI
OPEC, - Organization of the Petroleum Exporting Countries: पेट्रोलियम निर्यातक देशों का सं गठन-
1961 1961 HQ@Vienna, Austria.
- a group of oil producing countries Saudi, UAE, Venezuela, Iran, Iraq etc.… total 14
members. Qatar withdrew from 1/1/19. Russia is NOT a member.
OECD, - Organisation for Economic Co-operation and Development: आर्थिक सहयोग तथा विकास
1961 सं गठन-1961 HQ@Paris, France.
- Works for International cooperation in the matters of economy and taxation.
Known for Base erosion and profit shifting (BEPS) Norms. India is not a member.
NAM - Non-Aligned Movement was founded under the leadership of Josip Broz Tito of
1961 Yugoslavia, Gamal Abdel Nasser of Egypt, Jawaharlal Nehru of India, Kwame
Nkrumah of Ghana, and Sukarno of Indonesia.
- They advocated 3rd world nations to abstain from allying with USA/USSR during
Cold war. (शीत युद्ध के दौरान असं युक्त रहेने का आंदोलन)
- Member nations are in Asia, Africa, Latin America, Caribbean, and Europe.
2+2 e.g. India Japan 2+2 = meeting of foreign minister & defense minister from each side.
JAI Prime Minister Narendra Modi, US President Donald Trump and Japan Prime Minister
2018 Shinzo Abe met in a trilateral format in the sidelines of G-20 Summit in Buenos Aires,
Argentina. It was called the first-ever ‘JAI-trilateral’ meeting. Objective? Economic
growth, common prosperity
QUAD • - Quadrilateral Security Dialogue is a strategic dialogue / group of political
democracies, market economies and pluralistic societies. between the United
States, Japan, Australia and India. (चतुर्भुज सुरक्षा सं वाद : रणनीतिक सं वाद, लोकतंत्र बाजार
आधारित अर्थतंत्र और एकाधिकतत्ववादी समाजों का एक समूह)
• 4th Quad Summit @ US Pres Joe Biden’s home town of Wilmington, Delaware,
USA. Outcomes? Ref Mains HDT
AUKU 2021: This trilateral security pact between Australia, the United Kingdom. Under the
S pact, the US and the UK will help Australia to acquire nuclear-powered submarines.
France doesn’t like this, because earlier they were going to sell submarine to Australia.
Paris - Paris Club: Informal group of nations that help a debtor nation when debtor nation
Club facing loan repayment problems. Members include Australia, Canada, France,
(1956) Germany et cetera. India is an observer state (meaning not full member yet)
IBSA - India Brazil South Africa dialogue group (2003)
🔠 MCQ. Which of the following statements about Quad is/are correct? (CAPF-2023)
1. It is a group of four countries, namely, India, Australia, USA and France.
2. Maritime cooperation is an important binding force among members of the Quad.
3. The Quad members formed a working group on COVID-19 vaccines.
Codes: (a) 1 only (b) 1 and 2 only (c) 2 and 3 only (d) 1, 2 and 3

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36.6 🪷🌐🤝 G20 S UMMIT AT INDIA
- 1999: A club of finance ministers and central bank governors- started in response to the East
Asian financial crisis of 1997-98 (Refer: capital account convertibility topic in pillar3B)
- 2008: membership expanded in response to USA-Subprime/ global financial crisis
- Before 2023: It had 19 nations + 1 EU as member: - Argentina, Australia, Brazil, Canada, China,
France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi
Arabia, South Africa, Turkey, UK, USA AND EU
- 2023: African Union (made up of 55 countries in the African continent) is given full
membership- similar to the EU.
- G20 Common Framework: G20 + Paris Club together devised a framework to help the low-
income countries in its loan repayment problems (2020)
36.6.1 🪷🌐🤝 G20: 3 tracks
G20 operates through 3 main tracks: (1) Finance Track, (2) Sherpa Track, (3) Engagement Groups.
Track Objectives
(1) Finance
issues related to Taxation, Infrastructure finance, Financial Inclusion of the poor etc
Track
Socio-economic issues like agriculture, anti-corruption, climate change, digital
(2) Sherpa economy, education, employment, energy, environment, health, tourism etc. Here,
Track each member send an official called Sherpa.
e.g. India’s SHERPA = Amitabh Kant (Retd. IAS)
(3) Non-governmental representatives’ Groups e.g. Business20, Civil20, Labour20,
Engagemen Parliament20, Science20, SAI20 (Supreme Audit Institutions), Startup20, Think20,
t Groups Urban20, Women20, and Youth20.
36.6.2 🪷
G20 Summit- 2023: 18th Summit @New Delhi, India: theme and logo
- G20 Summit is held annually with a rotating presidency
- G20 does not have a permanent secretariat and is supported by the previous, current, and future
holders of the presidency, known as the troika. e.g. 2023's troika consists of Indonesia (past-
summit 2022), India (present summit-2023) and Brazil (future summit in 2024)

 Theme:- “Vasudhaiva Kutumbakam” or “One Earth One Family One Future” - is drawn from
the ancient Sanskrit text of the Maha Upanishad
 Logo:- globe/earth resting on a lotus
36.6.3 🪷
G20 Summit- India's priorities (SIX:6)
1. Green Development, Climate Finance & LiFE 2. Accelerated, Inclusive & Resilient Growth
3. Accelerating Progress on SDGs4. Technological Transformation & Digital Public Infrastructure
5. Multilateral Institutions for the 21st century 6. Women-led Development

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36.6.4 🪷G20 Summit-2023: Outcomes / New Delhi declaration (2023)
➢ African Union (55 members) accepted as G20 member- just like how EU is member of G20.
➢ India – Middle East – Europe Economic Corridor (IMEC) launched.
➢ Global Biofuel Alliance (GBA) launched.
➢ We need more funds to fight climate change
➢ Next summit in BRAZIL. Brazil Summit’s priorities (1) social inclusion and the fight against
hunger; (2) energy transition and sustainable development (3) reform of global governance
institutions.
✍️ For more points/analysis- refer to Mains Handout
36.6.5 🪷🚢 ➡️
G20 2023 Outcome India-Middle East-Europe corridor (IMEC)
➢ Announced during G-20 Summit @India (2023)
➢ Players? India, Saudi Arabia,UAE, Jordan, Israel, USA, EU & others in G20.
➢ Objective? Build railway line, shipping connectivity and optical fibre Link. (- उद्देश्य? रेलवे, समुद्री
जहाज़ परिवहन, ऑप्टिकल फाइबर लिंक से आपस में जुड़ाव को बढ़ायेंगे।)
➢ Benefits? 😄 (1) Trade, Energy, digital connectivity among Asia, the Arabian Gulf, and
Europe; 😄 (2) Countering China’s belt and Road initiative. (- फ़ायदा? व्यापार/आयात-निर्यात, ऊर्जा,
डिजिटल सं चार; चीन की बेल्ट और रोड पहल का मुकाबला करना।)
➢ IMEC is sub-scheme / part of Partnership for Global Infrastructure Investment (PGII). Refer
to Infra related org section for more.
36.6.6 🪷⛽️ ➡️
G20 2023 Outcome Global Biofuel Alliance (GBA)
➢ Announced during sidelines of G-20 Summit @India (2023)
➢ Players? India, Singapore, Bangladesh, Italy, USA, Brazil, Argentina, Mauritius and UAE and
more- total 19 countries and 12 international orgs (- As of 2023-Sept.)
36.6.7 📝📡⛷ G20-2019: Osaka Declaration on free flow of data India refused to sign
Outdated. Removed
36.6.8 🔠 G20- Truckload of PYQs - जिसकी कोई इंतहा नहीं
🔠 MCQ. Which of the following are India's G20 priorities? (CAPF-2023)
1. Green Development 2. Women-led Development
3. Climate Finance 4. Digital Public Infrastructure
Codes: (a) 1 and 2 only (b) 1, 2 and 3 only (c) 3 and 4 only (d) 1, 2, 3 and 4
🔠 MCQ. Consider the following statements about G-20: (Prelims-2023)
1. The G-20 group was originally established as a platform for the Finance Ministers and Central
Bank Governors to discuss the international economic and financial issues.
2. Digital public infrastructure is one of India’s G-20 priorities.
Code: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
🔠 MCQ. Find wrong statement about the Group of Twenty (G20) is not correct? (EPFO-2023)
(a) It was founded in 1999.
(b) The G20 summit is held annually under the leadership of a rotating Presidency.

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(c) The G20 members represent around 85% of the global GDP.
(d) The G20 comprises twenty countries.
🔠 MCQ. In which groups are all the four countries members of G20? (UPSC-Prelims-2020)
[a) Argentina, Mexico, South Africa and Turkey [b) Australia, Canada, Malaysia and New Zealand
[c) Brazil, Saudi Arabia and Vietnam [d) Indonesia, Japan, Singapore and South Korea
🔠 MCQ. Find correct about “G20 Common Framework” (Prelims-2022)
1. It is an initiative endorsed by the G20 together with the Paris Club.
2. It is an initiative to support Low Income Countries with unsustainable debt.
Codes: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
🔠 [Link] of the following are India's G20 priorities? (CAPF-2023)
1. Green Development 2. Women-led Development
3. Climate Finance 4. Digital Public Infrastructure
Codes: (a) 1 and 2 only (b) 1, 2 and 3 only (c) 3 and 4 only (d) 1, 2, 3 and 4
MCQ. Find correct about the composition of the G20? (CAPF-2024)
1. All G7 countries are members of G 20 (2). All BRICS countries are members of G 20
3. All ASEAN countries are members of G 20
4. All permanent members of Security Council are members of G 20
Code: (a) 1, 2 and 3 (b) 2 and 4 only (c) 1 and 4 (d) 2, 3 and 4
36.7 🌐🤝🤵G ROUPINGS LED BY GORA (WHITES) → G7

36.7.1 🌐🤝 G7 - Group of Seven (1975)

➢ seven major developed countries: Canada, France, Germany, Italy, Japan, USA, UK.
➢ 1997: Russia was added so it became G8 but then Russia annexed Crimea region of Ukraine
to Russia was Expelled from this group so again it became G7 in 2014.
➢ 2020: Trump proposed Australia, India, South Korea, Russia etc should also be invited at G7.
Although the UK hates the idea of inviting Russia back. But, ball-by-ball notIMP.
➢ Newspaper Columnists had gone crazier than usual, suggesting expansion of membership to
G10 / G11 by adding above countries as new members.
➢ 2021's Summit @Cornwall, UK. While India, South Korea and Australia are not members of
G7, but their leaders are invited to attend. PM Modi attended it Virtually. This summit’s
theme, outcome, 15% Global Minimum Tax = Ref Pillar#2B Black Money.
➢ 2022: Summit@Germany.
36.7.2 🤝 NB8 - Nordic Group
8 nation from Nordic-Baltic region: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway
and Sweden.
36.7.3 🤝🪑🪑🪑🪑🪑 UNSC Reform related groups
What is UNSC, its Permanent-Members, Veto Power? Why India wants reforms? Ref. IR courses.
Group Info

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 Developing Countries from Africa, South America and the Caribbean, Asia and
L-69 Group
the Pacific. These countries advocate for UNSC reforms. India is a member
Group Four India, Brazil, Germany and Japan. They seek permanent membership and reform
(G4) Nations of the UN Security Council (UNSC)
36.8 🤖💻 T ECH RELATED ALLIANCES

36.8.1 🤖💻 Bletchley Declaration o AI Safety (UK-2023)

➢ 2023-UK PM hosted AI safety summit at Bletchley Park in England.
➢ India, China, Saudi Arabia, USA etc....total 28 nations AND European Union signed
Bletchley declaration.
36.8.2 🌐🤝📲 D10: 5G club proposed by UK (2020)
 UK proposed “D10” club of democratic partners including
o G7 countries — UK, US, Italy, Germany, France, Japan and Canada
o + 3 more plus Australia, South Korea and India
 Objective: create supply chain for 5G equipment and technologies. To avoid relying on China/
Huawei- for data security and data privacy. (5G उपकरण और प्रौद्योगिकियों के लिए आपूर्ति श्रृंखला= चीनी
कं पनियों द्वारा डाटा चोरी का खतरा कम हो)
36.8.3 🌐🤝🦁🦅 iCET between India and USA (2022)
• Initiative on Critical and Emerging Technologies (iCET),
• Under ICET, the two sides have identified six focus areas: innovation ecosystems, defence
innovation and technology cooperation, resilient semiconductor supply chains, space, STEM
talent, and next generation telecom.
• (STEM= science, technology, engineering and mathematics.)
36.9 🌐🤝🪫🔌 M INERALS RELATED GROUPINGS

36.9.1 🌐🤝🪫🔌 RISE by World Bank and Japan

➢ Partnership for Resilient and Inclusive Supply-chain Enhancement (RISE)
➢ for critical minerals, such as cobalt, lithium, vanadium, manganese and zirconium.
➢ Masterminds? World Bank and Japan. Later Canada, Italy, [Link] and UK also joined

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36.9.2 🌐🤝🪫🔌🦅 Minerals Security Partnership (MSP: अति महत्वपूर्ण खनिजों के लिए भागीदारी)
 US-led partnership to secure critical minerals and reducing dependency on China.
 🤔MSP includes Australia, Canada, Finland, France, Germany, Japan, the Republic of Korea,
Sweden, United Kingdom, and the European Commission.
 2023-June: India joins MSP grouping . (Originally, we were not invited.)
 🤩 Cobalt, Nickel, Lithium etc. Required for batteries used in electric vehicles, semiconductors
and high-end electronics manufacturing.
 🤩 Rare Earth Minerals available in India — such as lanthanum, cerium, neodymium,
praseodymium, samarium, etc.
 😥 Rare Earth Minerals NOT available in India- dysprosium, terbium, and europium. So, there
is a dependence on countries such as China.
36.9.3 🌐🤝🪫🔌🦅 MSP → Minerals Security Finance Network (MSFN)
 2022: Minerals Security Partnership (MSP) started by USA. 2023: India joined MSP.
 2024-Sept: India joined MSP’s Minerals Security Finance Network (MSFN)
 MSFN aims to bring DFIs (development finance institutions) and ECAs (export credit agencies)
together for funding the critical minerals related projects.

36.10 🌐🤝🛣️ I NFRASTRUCTURE RELATED NOTABLE GROUPS/INITIATIVES

Initiatives Mastermind Year
Belt and Road Initiative (BRI) / One belt one road
China 2013
(OBOR)
Blue Dot Network (BDN) USA, Japan, Australia 2019
Global Gateway Initiative EU 2021
Partnership for Global Infrastructure Investment (PGII) G7 (mostly USA’s brainchild) 2022
India-Middle East-Europe corridor (IMEC)- it as sub-
G20 Delhi summit 2023
scheme of PGII given in previous cell.
Partnership for Resilient and Inclusive Supply-chain
World Bank and Japan. Later
Enhancement (RISE)
Canada, Italy, [Link] and UK 2023
for critical minerals, such as cobalt, lithium, vanadium,
also joined
manganese and zirconium.

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36.11 🌐🤝☪️G ROUPINGS: MIDDLE EAST: GCC VS OIC
Gulf Cooperation Council (GCC); Organisation of Islamic Cooperation (OIC)
खाड़ी सहयोग परिषद (GCC) इस्लामिक सहयोग सं गठन (OIC)
1981: HQ-Riyadh, Saudi Arabia 1969: HQ-Jeddah, Saudi Arabia
6 members: Bahrain, Kuwait, Oman, Qatar, ~50 Islamic countries from across of the world.
Saudi Arabia, and the UAE
2017: some of these members have cut off 2019-March: While India is not a member, but
diplomatic and business ties with Qatar. first time invited in OIC meeting as guest of
2021: Extraordinary summit @Pakistan. honour.
36.11.1 ☪️🤝🔯 Abraham Accords (2020-Sept)
➢ UAE, Bahrain and Israel’s Peace agreement for normalization of relations. (रिश्तों को सामान्य करने
के लिए शांति समजोता) U.S. President Trump acted as mediator (मध्यस्थ की भूमिका)
➢ Abraham = regarded as a prophet by both the Jewish and Islam.
36.11.2 🌐🤝🤵 I2U2: Middle Eastern / West Asian QUAD (2021-22)
 Indo-Pacific Quad = India, USA, Japan and Australia
 Middle Eastern Quad / / West Asian QUAD = India Israel, UAE, and USA
 six areas for joint action: water, energy, transport, space, health, and food security.
 countering the influence of Chinese belt and Road initiative in Middle East.
 $2 billion to develop a series of integrated food parks across India → 2x farmers’ income.
 300-megawatt hybrid (Solar+Wind) renewable energy project in Gujarat → help to India’s goal
of 500 GW of renewable energy by 2030.
 Better implementation of the Abraham accords and other peace initiatives in Middle East.
Peaceful and prosperous Middle East = market for Indian Exports.
36.12 🌐🤝 M ISC GROUPINGS / ORG → WORLD ECONOMIC FORUM (1971)
 Not-for-profit think-tank in Cologny (a municipal area in Geneva), Switzerland. विश्व आर्थिक मंच-
मुनाफा-रहित विशेषज्ञ समूह
 Known for its annual summit at Davos resort in Switzerland where they invite selected world
leaders, thinkers, NGOs and industrialists.
 2021: Davos Summit 2021- cancelled by Corona’s Omicron variant.
 2022:Online Davos Agenda 2022 summit, held in virtual mode.
📚Annual reports: Global Competitiveness Report, Global Information Technology Report, Global
Gender Gap Report, Global Risks Report, Global Travel and Tourism Report, Financial Development
Report, Global Enabling Trade [Link].
🔠❓ MCQ. Global Competitiveness Report is published by the _ _ _ (UPSC Prelims-2020)
Codes: A) IMF B) UNCTAD C) World Economic Forum D) World Bank
36.13 🌐🤝 M ISC GROUPINGS / ORGANIZATIONS OTHERS
UN, NATO self study from IR-Diplomacy course/books/PDFs
UN specialized List not exhaustive:
agencies related - UNCTAD: United Nations Conference on Trade and Development → famous
to Economy for its World Investment Report. 2021’s report says that India is the fifth largest

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 recipient of Foreign Direct Investment (FDI) in the world.
- UNDP: United Nations Development Programme known for its Human
development report (more in pillar#6)
सं युक्त राष्ट्र की - UNIDO: UN Industrial Development Organization
विशिष्ट सं स्थाएं - World Intellectual Property Organization (WIPO: More in Pillar#4B-IPR) 📑
📑
- International Labour Organization (ILO: More in Pillar#4C:unemployment)
Their establishment years, HQ, reports etc. = KBC GK poor cost:benefit
Andean Free trade area of South American countries of Bolivia, Colombia, Ecuador, Peru.
Community
Southern Common Market of Argentina, Brazil, Paraguay, Uruguay + ANDEAN +
Mercosur
other countries. However Venezuela was suspended in 2016.
Pacific Alliance Chile, Colombia, Mexico, and Peru’s regional level free trade agreement (2016)
Visegrád Group 4 Central European countries: the Czech Republic, Hungary, Poland, and Slovakia.
(also known as V4 European Quartet)
Organization of cooperation among Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey and Uzbekistan.
Turkic States
World - is a global non-profit organisation started in 2013.
Government - Annual summit at Dubai, United Arab Emirates.
Summit - Focus areas: Global collaboration for humanity.
🔠❓ MCQ. Who are members of the Organization of Turkic States (Asked in Prelims-2022)
[Link] 2. Azerbaijan 3. Croatia 4. Romania 5. Uzbekistan
Codes: (a) 1, 2 and 4 (b) 1 and 3 (c) 2 and 5 (d) 3, 4 and 5
36.14 🌐🛒🔫 E XPORT CONTROL / NON-PROLIFERATION REGIMES
बहुपक्षीय निर्यात नियंत्रण / अप्रसार व्यवस्था:
NSG - Nuclear Suppliers Group (NSG: परमाणु आपूर्तिकर्ता समूह) is a group of countries that
1974 control the export of nuke materials, equipment and technology & aim to prevent
its use in making nuclear bombs.
- China is a member, India not a member yet due to China’s objection.
Australia - Informal group that encourages members not to export chemical or biological
Group weapons or technology.
1984 - China not a member, India became member (2018).
- Missile Technology Control Regime (मिसाइल प्रौद्योगिकी नियं त्रण व्यवस्था) is an informal
MTCR group that encourages members not to export missiles equipment, software,
1987 technology.
-
China not a member, India became member (2016)
-
Wassenaar is an area in Netherland. This arrangement (1996) requires members to
Wassenaar
be strict and transparent in the export of conventional arms and dual-use goods
Arrangeme
and technologies (e.g. Night Vision Googles). So they don’t fall in the hands of
nt
terrorists and rogue states like [Link].
1996
- China not a member, India became member (2017)
🔠❓ MCQ. India is member of _ _ _ (Prelims-2022)

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1. Asian Infrastructure Investment Bank 2. Missile Technology Control Regime
3. Shanghai Cooperation Organisation.
Codes: (a) 1 and 2 only (b) 3 only (c) 2 and 3 only (d) 1, 2 and 3
36.15 🐻R USSIA RELATED ORG/AGREEMENTS
36.15.1 🐻🌽🚢 Black Sea Grain Initiative (2022)
➢ Russia will allow ships to access 3 Ukrainian ports of Odesa, Chornomorsk and Pivdennyi
(Yuzhny), after inspection that they are not carrying arms.
➢ Benefits? (1) Ukraine can continue exporting wheat / corn / foodgrains = global food prices
remain stable. (2) UN Food aid program to poor nations - do not suffer from food shortage
➢ Mediators in the deal? 1) UN 2) Turkey.
➢ Controversy? Russia threatening to quit the deal.
36.15.2 🐻☢️ CTBT Nuke Treaty: Putin Exit (2023)

➢ Comprehensive Nuclear Test Ban Treaty (CTBT-1996) by United Nations.

➢ It bans all types of nuclear explosions, whether for military or peaceful/ Scientific purposes.
➢ 2000: Russia ratified the agreement.
➢ But China, Egypt, India, Iran, Israel, North Korea, Pakistan, USA not yet ratified it.
➢ 2023: Russian President Putin plans to withdraw from deal bcoz USA has not ratified it yet.

36.15.3 🔫👋🎃 USA related Arms Treaties

1. 1987:Intermediate-Range Nuclear Forces (INF) treaty between USA-Russia during to prohibit
development of missiles with ranges between 500 and 5,500 km. 2019: USA withdraws from it.
2. 1991: New Strategic Arms Reduction Treaty (New START) treaty between U.S. and Russia for
reducing nuclear weapons. 2021: Treaty will expire.
3. 1992: Open Skies Treaty (OST) signed between NATO and Warsaw Pact countries to
monitor/spy each other's territory through unarmed aeroplanes. 2020-May: USA wants to
withdraw from it.
4. Self-study: CTBT, NPT: NCERT Class12 Political Science ch4: India's external relations
✋for more on IR annual summits, treaties, etc. for prelims study from PDF/Mags/Courses
36.15.4 🎺✍️Mock Questions for Mains GSM2 (Intl. Org Related to Economy)
Question from this pillar mostly centre around what is the significance of X organisation for India,
how do the actions/agreements of Y nations affect the Indian interests.

NEXT Handout: Pillar4A: Sectors of Economy- Agriculture

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