mrunal [economic survey ch7] international trade, fta, pta, aside, e-brc, cepa vs ceca difference...

4/19/2014 Mrunal [Economic Survey Ch7] International Trade, FTA, PTA, ASIDE, E-BRC, CEPA vs CECA Difference Explained » Mrunal

http://mrunal.org/2013/04/economic-survey-ch7-international-trade-fta-pta-aside-e-brc-cepa-vs-ceca-difference-explained.html/print/ 1/21

[Economic Survey Ch7] International Trade, FTA, PTA, ASIDE, E-BRC,CEPA vs CECA Difference Explained

1. Baltic Dry Index (BDI)

2. India’s Chief import exports

3. Market Diversification

4. Top three trading partners

5. Trade surplus / deficit?

6. WTO Negotiations and India

7. Trade agreements

1. PTA

2. FTA

3. Customs Union

4. Common Market

5. Economic union

6. CEPA vs CECA

8. India’s trade agreements

9. Trade agreements: Recent development

1. Problem Areas: Export

2. Problem Areas: Ease of Doing business

10. Measures to improve trade?

1. Foreign Trade Policy annual supplement 2013

2. Salient Features FTP Annual Supplement 2013

3. E-BRC

4. ASIDE scheme

5. Towns of Export Excellence

6. Interest Subvention

7. Special Economic Zones

8. VKGuy

9. RBI’s measures

10. Anti-Dumping

11. Chindu’s budget speech (2013): Foreign Trade

1. CAD worrysome

2. To boost trade

3. Taxation: Export

4. Coal dependence

5. IT

12. What is countervailing duty (CVD)?

13. Conclusion

14. Important Summits

15. Trade Blocs/ Regional Groups

16. Mock Question

http://mrunal.org/



Baltic Dry Index (BDI)

London based Baltic Exchange, releases this index number on daily basis.It measures changes the cost to transport raw materials by sea.If Baltic Dry index number increases = more raw material is getting shipped=world economy is doing good (and will do good).If Baltic Dry index number decreases = there is decrease in export of rawmaterial / pre-production items= something bad is about to happen with worldeconomy.In the recent times, BDI was highest in 2008 and then started falling. There wasa small rise in BDI index during Nov.2012, but still it is nowhere near to thehigh level of 2008.Meaning, world economy hasn’t yet recovered from the fallout in US and EU.

India’s Chief import exports

Import Export

1. Petroleum2. Gold3. Electronic goods4. Pearls, precious stones5. Machinery except electronics

1. Petroleum (crude and products)2. Gems and jewelry3. Transport equipment, machinery4. Drugs, pharmaceuticals, chemicals

^As per Commerce chapter India 2013 (Yearbook.)

Compositional changes in India’s export basket have been taking place over theyears.The share of manufacturing exports fell drastically, mainly due to the fall inshares of traditional items like textiles and leather and leather manufactureseven though the share of engineering goods and chemicals and related productsincreased.

The rise or fall in India’s export depends mainly on following factors

World growthTrading partner’s growthExchange rates

Market Diversification

India has been fairly successful in diversifying its export markets fromdeveloped countries like the US and Europe to Asia and AfricaThis has helped us get reduce the damage from global crisis of 2008 and therecent global slowdown.Region-wise, while India’s exports to Europe and America have declined, itsexports to Asia and Africa have increased

Top three trading partners



In recent years, the top three trading partners of India = US, UAE, China(whoever their rank /position keeps changing like in the game of musicalchairs).For 2011-12: first is China, second is UAE and third is USA. (2012-13 data yetto come)

Trade surplus / deficit?

India’s trade deficit = 10% of GDP. This is one of the highest in the world, andhence very disturbing.As per 2011-12 data, Countrywide, India has

Trade surplus with Trade deficit with

1. UAE (this turned negative in 2012though)

2. USA,3. Singapore4. Hong Kong.

1. China2. Switzerland (mainly due to gold

imports)

WTO Negotiations and India

Basics of WTO explained: http://mrunal.org/2012/05/wto-doha-made-easy.html

Pascal Lamy= Chief of WTO.(update: Roberto Azevedo, a top Brazilian tradediplomat, will replace Pascal Lamy as the head of the WTO in September 2013)In 2001, WTO started Doha Round of trade negotiations. (Doha is the capitaland chief port of Qatar)Doha negotiations are still unfinished due to differences among members onvarious issues.Since multilateral trade negotiations (WTO) are stalled/pending, the regionaltrading agreements are on rise.

Trade agreements

What?Level ofintegration

PTAPreferential trade agreementslower customs duty on the productsoriginating from the member countries.

shallow

FTA

Free Trade AgreementsIt is a special case of PTA where all tariffand non-tariff barriers are abolishedfree access is allowed to the products ofmember countries.Example NAFTA (among Mexico, US andCanada).

Shallow

http://mrunal.org/2012/05/wto-doha-made-easy.html



CustomsUnion

A Customs Union moves beyond a freetrade area by establishing a commonexternal tariff on all trade between,members and non-members.Customs Unions typically containmechanisms to redistribute tariff revenueamong membersExample: Mercosur

Shallow

CommonMarket

free flow labour, capital, and output(goods/services) among the members.Example, SICA (in Central America)

Deep

Economicunion

members share a common currency andmacro-economic policies (ExampleEuropean Union).Example, European Union.

deep

CEPA vs CECA

Both are examples of Free trade agreements.

CECA CEPA

Comprehensive Economic CooperationAgreement

Comprehensive Economic partnershipAgreement

Reduce the tariffs (custom/import duties).Reduce tariffs + cooperation in trade inservices, investment. = wider scope.

Countries sign CECA first and then graduallymove towards CEPA like agreement.

-

Example, India has CECA with

1. Malaysia2. Singapore3. ASEAN (under negotiation)

Example, India has CEPA With

1. Japan2. South Korea3. Sri Lanka (under negotiation)

India’s trade agreements

So far, India has signed 10 free trade agreements (FTAs) and 5 preferential tradeagreements (PTAs) and these FTAs/PTAs are already in force.

FTA/PTA: Already concluded

10 FTA with 5 PTA with



1. Sri lanka2. SAFTA (India, Pakistan, Nepal,

Sri Lanka, Bangladesh, Bhutan andMaldives)

3. Nepal4. Bhutan5. Thailand, + early harvest Scheme

(EHS)6. Singapore (CECA)7. ASEAN (CECA)8. S.Korea: CEPA9. Japan: CEPA

10. Malaysia: CEPA

1. Asia Pacific Trade Agrment (APTA):Bangladesh, China, India, S.Korea,Sri Lanka

2. Global system of trade preferences(GSTP)

3. Afghanistan4. MERCOSUR5. Chile

^as per commerce chapter, India 2013 (Yearbook).Further, India is currently negotiating 17 FTAs, including review/expansion ofsome of the existing ones.Issue: Government needs to review the inverted duty structure under the India-Thailand FTA. Because finished jewelry imports from Thailand are cheaperthan primary gold (raw material) available in India!

Trade agreements: Recent development

SAFTA

Signed and came into force.South Asia Free Trade AreaUnderSAFTA, India has granted zero basic custom duty to all LDCs,viz. Afghanistan, Bangladesh, Bhutan, and Maldives, on allitems, except alcohol and tobacco products.

IndiaThailandFTA

Signed but negotiations still on.

India-ASEANCECA

Signed, broader framework already in force. Minor detailsremain to be negotiated.

RECPamongASEAN+6

Regional Comprehensive Economic Partnership (RCEP)Agreement among ASEAN + 6 (Australia, China, India,Japan, Korea, and New Zealand).During 20th ASEAN summit in Phnom Penh Cambodia(in 2012), the ASEAN states agreed to move towards thisagreement.It’ll provide economic partnership among ASEAN + itsFTA partners. RCEP will cover trade in goods, services,IPR, dispute settlement etc.

India-EUBroad based trade and investment agreement. Negotiations stillgoing on.



GSTP

Global System of Trade Preferences among DevelopingCountries (GSTP)It is a preferential trade agreement to increase tradebetween developing countries in the framework of theUNCTAD (United Nations Conference on Trade andDevelopment).India has unilaterally offered special concessions toLeast developed countries under this agreement.Cabinet approved implementing India’s schedule ofconcessions under GSPT.India has also unilaterally offered special concessions toLDC

Japan

In Nov. 2012, India and Japan signed a pact to enableJapan to import rare earth minerals from India. (Thiswill help reduce Japan’s reliance on China for rare earthminerals).Rare earth minerals are important for high-techelectronics, mobile phones and hybrid cars, missileguidance systems etc.

Problem Areas: Export

Jawaharlal Nehru Port Trust (JNPT) Port at Mumbai, entry gates closingprematurely resulting in export consignments being dumped in the buffer yard ata very high cost and delay in shipments

Problem Areas: Ease of Doing business

Ease of doing business index is an index created by the World Bank.

India ranks 132. (Singapore 1st)India requires 9 export documents to be cleared, while China needs 8, with goodpractice economies like France needing 2.Time to export is 16 days for India and five for Denmark.On an, average an Indian exporter is required to sign at about 130 places tocomplete an export transaction!If we want to increase our exports, then Government must reduce theseprocedures and costs need to the barest minimum.

Measures to improve trade?

India’s foreign trade policy covers the period of 2009-14.Under that, Commerce Ministry (and not finance ministry) releases Annualsupplement to foreign trade policy every year.2012: Government has reduced the import duty on various capital goods/machinery required for fertilizer, mining, infrastructure, horticulture projects



etc.Support for export of green technology productsIncentives for labour intensive industries, North East, agriculture etc.

Foreign Trade Policy annual supplement 2013

Released in April 2013, by Ministry of Commerce, Industry and TextilesAlthough Government did not launch any new scheme in itBut the existing schemes were modified to provide for more relaxations andbenefits to importers who are also exporters.

Salient Features FTP Annual Supplement 2013

1. Reduced Minimum land area requirement for SEZ, by half2. No minimum land requirement for settingup IT SEZ3. Permitted sale and transfer of units inside SEZ.4. Zero Duty Export Promotion Capital Goods Scheme5. Government will give 2% Interest Subvention Scheme for more sectors. (upto

31st March 2014)6. Duty Credit Scrips issued under Focus Market Scheme, Focus7. Product Scheme and Vishesh Krishi Gramin Udyog Yojana(VKGUY) can be

used for payment of service tax.8. Import of cars/vehicles is permitted through designated ports only. Now import

of cars/vehicles would also be allowed at Faridabad and Ennore Port (TN)9. System for online issuance of Registration Certificate for export of Cotton,

Cotton Yarn, Non Basmati Rice, Wheat and Sugar.

E-BRC

The exporter will not be required to make any request to the bank for issuanceof a bank export and realization certificate (BRC).Thus their time and money will be saved.For electronic transmission of foreign exchange realization from the respectivebanks to the Directorate General of Foreign Trade (DGFT) server on a dailybasis.

ASIDE scheme

Assistance to States for Developing Export Infrastructure and Allied Activities(ASIDE) SchemeIt provides assistance to State and union territories to create infrastructure forexport Development.Top 5 exporter states in India (also top-5 in terms of ASIDE allocation):Gujarat, Maharashtra, Tamil Nadu, Karnataka, and Andhra Pradesh. (Why? Thinkabout the geographical, social, political, economic factors).

Towns of Export Excellence

These get more attention / funds under ASIDE scheme and other schemes of



commerce ministry for boosting exports.

year Place Sector

2012

1. A’bad

Textiles

2. Kolhapur

3. Shaharanpur Handicraft

2013

4. Morbi Ceramic

5. Gurgaon Apparel

^this list in not exhaustive. I’ve only listed the new towns of export excellence under2012 and 2013’s annual supplements to foreign trade policy. But if and when you’repreparing for UPSC interview, dig all the export excellence towns in your home state.

Interest Subvention

Earlier Government gave 2% interest subvention on handlooms, handicrafts,carpets, and SMEsThis scheme has been extended to labor-intensive sectors viz. toys, sportsgoods, processed agricultural products, and readymade garments.Scheme is applicable upto 31 March 2014.

Special Economic Zones

Asia’s first Export processing zone (EPZ) was setup in Kandla, Gujarat, 1965Special Economic Zones (SEZ) Act, enacted in 2005 and and Rules werenotified in February 2006.Government has given formal approvals to setup 579 SEZs, of which 384 havebeen notified.As a whole, SEZs have provided employment to more than 9 lakh people.100 per cent FDI is allowed in SEZs through the automatic routeProblem area: land acquisition. (some of that is addressed under the 2013’sannual supplement to Foreign trade policy.)

VKGuy

Vishesh Krishi and Gram Udyog Yojana (VKGUY)To promote the export of produce from agro, minor forest, gram udhyog etc.

RBI’s measures



RBI increased ceilings for External Commercial Borrowings (ECBs)RBI allowed the banks to determine their interest rates on loans to exporters (inforeign currency).

Anti-Dumping

Directorate General of Anti-dumping and Allied Duties (DGAD) has initiated10 fresh cases. Against China PR, the European Union, South Korea, Malaysia,Mexico, Taiwan, Thailand, Turkey, Saudi Arabia, and the USA.DGAD falls under Commerce Ministry.

Chindu’s budget speech (2013): Foreign Trade

CAD worrysome

India is part of the global economy: our exports and imports amount to 43percent of GDPBut My greater worry is the current account deficit (CAD).The CAD continues to be high mainly because of

1. our excessive dependence on oil imports,2. the high volume of coal imports,3. our passion for gold4. slow down in exports.

This year, and perhaps next year too, we have to find over USD 75 billion tofinance the CAD.(To finance Current Account deficit) , there are only three ways before us:

1. FDI2. FII3. External Commercial Borrowing (ECB).

That is why I have been at pains to state over and over again that India, at thepresent juncture, does not have the choice between welcoming and spurningforeign investment.If I may be frank, foreign investment is an imperative.What we can do is to encourage foreign investment that is consistent with oureconomic objectives.

To boost trade

Peak rate of basic customs duty = 10% (for non agro products)Normal excise duty = 12%Normal service tax= 12%

What?DutyIncrease/decrease?

Chindu said

ImportMachineryfor leatherfactory

Decrease

Leather and leather goods is a thrust sectorfor exports. I propose to reduce the duty onspecified machinery for manufacture ofleather and leather goods and footwear.



Taxation: Export

Preciousstonesexporting

DecreaseTo encourage exports, I propose to reduce the dutyon pre-forms of precious and semi-precious stonesfrom 10 percent to 2 per cent.

oil cake EliminatedExport duty on de-oiled rice bran oil cake has madeour exports uncompetitive. Hence, I propose towithdraw the said duty.

Ilmenite Increased

Prices of unprocessed ilmenite have gone up severalfold in the export market.Considering the need to conserve our naturalresources, I propose to impose a duty of 10 percenton export of unprocessed ilmenite.

Side note:Ilmenite is the primary ore of titanium. Found in TN,Odisha, Kerala.Titanium dioxide is used in paint and coatingindustry.Titanium is used in aircraft, tank, weapons, artificialjoints, sporting equipment and high performancealloys.

Coal Streamlined

At present both Steam coal and Bituminous coal areused in thermal power stations, but attract differentrates of customs duty and counter veiling duty.I propose to equalize the duties on both kinds of coaland levy 2 per cent customs duty and 2 per cent CVD.

Luxuryvehicle

Increased

There is an affluent class in India that consumesimported luxury goods such as high end motorvehicles, motorcycles, yachts and similar vessels. Iam sure they will not mind paying a little more.Hence, I propose to increase the duty on suchvehicles.

Coal dependence

Despite abundant coal reserves, we continue to import large volumes of coal.If the coal requirements of the existing and future power plants are taken intoaccount, there is no alternative except to import coal and adopt a policy ofblending and pooled pricing.



In the medium to long term, we must reduce our dependence on imported coal.One of the ways forward is to devise a PPP policy framework to increase theproduction of coal. Coal ministry will announce the policies in this regard.

IT

The Rangachary Committee was appointed to look into tax matters relating toDevelopment Centres & IT sector and Safe Harbour rules for a number ofsectors.By the way, Rangachary was also a member of Shome Panel (for GAAR).

What is countervailing duty (CVD)?

Suppose we imported xyz thing from USA. And that xyz thing is also manufactured byIndian producers as well.

But the American Government provides some subsidies to their exporters,hence the price of imported XYZ item is more than the locally produced “desi”variety. And orThe Indian producers are required to pay more taxes hence desi variety hasbecome more expensive than the American product.In such case, Indian Government can imposes addition tax on the imported itemto protect the domestic industry. This is known as countervailing duty (CVD).

In 2013, US Department of Commerce started investigation a countervailing duty(CVD) investigation against India and six other countries on export of shrimp.Because the (domestic) American shrimp industry had complained that IndianGovernment provides lot of incentives, subsidies and tax reliefs to Indian shrimpexporters, so US Government should impose a CVD on the shrimps imported fromIndia.

Conclusion

Gold and CAD

In the earlier article on Gold ETF, we saw the measures taken by govt. to reducethe gold import(click me) While the supply of gold through organized channelscan be constricted, there is need to be vigilant regarding gold inflows throughunauthorized channels (= Smuggling).

Ultimately, the best way to reduce gold imports in a sustainable way will be tooffer the public financial investment opportunities that generate attractivereturns.This means bringing down inflation as well as expanding the range ofinvestments investors have easy access to. (e.g. Rajiv Gandhi Equity savingsscheme RGESS).

Trade Agreement

India always stood for open, unbiased, international trading system, but since

http://mrunal.org/2013/04/economy-gold-exchange-traded-funds-etf-gold-deposit-scheme-elasticity-of-demand-explained.html



WTO negotiations are not moving in positive direction, we need to focus onRegional Trade agreements (RTAs). Particularly for exporting our technology-intensive items.There is also need to address the inverted duty structure in sectors likeelectronics, textiles, and chemicals and the artificial inverted duty structurecaused by some FTAs/RTAs.

Important Summits

2012 2013

SAARC Addu, Maldives (2011) Kathmandu

ASEAN Phnom Penh, Cambodia Brunei

BRICS Delhi Durban, S.Africa

G20Los Cabos, MexicoSt. Petersburg, Russia

Brisbane, Australia

Trade Blocs/ Regional Groups

List is not exhaustive.

APEC Asia-Pacific Economic Cooperation

1. Australia2. Brunei3. Canada4. Chile5. China6. HongKong7. Indonesia8. Japan9. SouthKorea

10. Malaysia11. Mexico12. New Zealand13. Papua NewGuinea14. Peru15. Philippines16. Russia17. Singapore18. Taiwan19. Thailand20. United States21. Vietnam



APTA Asia Pacific Trade agreement

1. Bangladesh2. China3. India4. S.Korea5. Sri Lanka

ASEANAssociation of South East AsianNation

1. Brunei2. Cambodia3. Indonesia4. Laos5. Malaysia6. Burma (Myanmar)7. Philippines8. Singapore9. Thailand

10. Vietnam

BIMSTEC

Bay of Bengal Initiative forMulti-Sectoral Technical andEconomic Cooperation.Bangladesh, India, Myanmar,Sri Lanka, and ThailandEconomic Cooperation

1. Bangladesh2. Bhutan3. Myanmar4. India5. Nepal6. SriLanka7. Thailand

BRICSBrazil, Russia, India, China and SouthAfrica

1. Brazil2. Russia3. India4. China5. South Africa

CELACCommunity of Latin American andCaribbean States

33 countries in that region.Names not worth the spacehahaha.

CISCommonwealth of IndependentStates

1. Armenia2. Azerbaijan3. Belarus4. Kazakhstan5. Kyrgyzstan6. Moldova7. Russia8. Tajikistan9. Uzbekistan

COMESACommon Market for Eastern andSouthern Africa

20 member statesstretching from Libya to



Zimbabwe.

ECOWASEconomic Community of WesternAfrican States

15 members in WesternAfrica.

EFTA European Free Trade association

1. Iceland2. Liechtenstein3. Norway4. Switzerland

EU European Union

1. Austria2. Belgium3. Bulgaria4. Cyprus5. Czech Republic6. Denmark7. Estonia8. Finland9. France

10. Germany11. Greece12. Hungary13. Ireland14. Italy15. Latvia16. Lithuania17. Luxembourg18. Malta19. Netherlands20. Poland21. Portugal22. Romania23. Slovakia24. Slovenia25. Spain26. Sweden27. UK

G20 Group of 20

1. Argentina2. Australia3. Brazil4. Canada5. China6. European Union7. France8. Germany9. India

10. Indonesia11. Italy



12. Japan13. Mexico14. Russia15. SaudiArabia16. SouthAfrica17. SouthKorea18. Turkey19. UnitedKingdom20. UnitedStates

G8 Group of 8 (Wealthiest nations)

1. Canada2. France3. Germany4. Italy5. Japan6. Russia7. UK8. US

GCC Gulf cooperation council

1. Bahrain2. Kuwait3. Qatar4. Saudi Arabia5. Oman6. United Arab Emirates

(UAE)

GSTP Global system of trade preferences44 developing countries.List is not worth the tablespace hahaha.

IBSA India Brazil South Africa1. India2. Brazil3. South Africa

IORARC/OceanRim

Indian Ocean Rim association ofregional cooperation.

1. Australia2. Bangladesh3. Comoros4. India5. Indonesia6. Iran7. Kenya8. Madagascar9. Malaysia

10. Mauritius11. Mozambique12. Oman



13. Seychelles14. Singapore15. S.Africa16. Sri Lanka17. Tanzania18. Thailand19. UAE20. Yemen

MERCOSURSouthern Common Market.(Mercado Comun Del sur)

1. Argentina2. Brazil3. Paraguay4. Uruguay5. Venezuela (member

since 2012)

NAFTANorth American Free TradeAgreement

1. Canada2. US3. Mexico

SAARCSouth Asian Association forRegional Cooperation

1. Afghanistan2. Bangladesh3. Bhutan4. India5. Maldives6. Nepal7. Pakistan8. Sri Lanka

SACU Southern African Customs Union

1. South Africa2. Botswana3. Lesotho4. Swaziland5. Namibia

SAFTA South Asia Free Trade Agreement

1. India2. Paki3. Nepal4. Lanka5. Bangladesh6. Bhutan7. Maldives8. Afghanistan (latest

member)

http://saarc-sec.org/areaofcooperation/detail.php?activity_id=36



SCO Shanghai Cooperation Organisation

1. China,2. Kazakhstan,3. Kyrgyzstan,4. Russia,5. Tajikistan,6. Uzbekistan.

IMF: Advanced Economies in ASIA

1. S.Korea2. Hong Kong3. Singapore4. Taiwan

Mock Question

1. Baltic dry index measuresa. change in crude oil pricesb. change in dollar’s value against major currencies.c. Performance of share markets in Baltic nationsd. None of Above

2. Increase in Baltic Dry index meansa. World economy is moving in negative directionb. World economy is moving in positive directionc. World economy is moving towards a stalemated. None of above

3. Which of the following is not among the top 3 trading partners of India?a. USb. UAEc. Chinad. Japan

4. India doesn’t have trade surplus witha. Singaporeb. Hong Kongc. Switzerlandd. All of above

5. India doesn’t have PTA agreement witha. Chileb. Mercosurc. Afghanistand. Sri Lanka

6. India doesn’t have FTA agreement witha. Thailandb. Japanc. Malaysiad. Afghanistan

7. With Japan, India has ______ agreementa. CEPA



b. CECAc. PTAd. No trade

8. GSTP aims to increase trade between _____ countries under ______.a. Developed, UNb. Developing, UNCTADc. All, WTOd. member, ASEAN

9. India has high current account deficit mainly because ofa. coal importb. crude oil importc. slow down in exportd. All of above

10. Current Account Deficit can be financed througha. Only FDI, FIIb. Only FDI and ECBc. Only ECB and FIId. FDI, FII and ECB

11. Ilmenite is the primary ore ofa. Copperb. Aluminumc. Titaniumd. Magnesium

12. Which of the follow coal is used in Thermal power stations?a. steam coalb. Bituminous coalc. bothd. none

13. Rangachary Committee is associated with taxation of ____ sector.a. ITb. Fisheriesc. Coald. gems and jewelry

14. Addu declaration is associated witha. UNESCOb. G20c. SAARCd. G8

15. For 2013, SAARC summit will be held ina. Kathmandub. Delhic. Lahored. Thimpu

16. Durban summit, 2013, is associated witha. BRICSb. G20c. G8d. UNESCO

17. In 2012, G20 summit was held ina. Los Angeles



b. Phnom Penhc. Los Cabosd. None of above

18. Phnom Penh hosted the _____ summit in 2012.a. ASEANb. BRICSc. G20d. G8

19. Correct order in terms of membership (smaller to bigger)a. ASEAN, BIMSTEC, G20b. BIMSTEC, ASEAN, G20c. BIMSTEC, G20, ASEANd. None of above

20. Switzerland is a member ofa. EUb. EFTAc. Bothd. None

21. Which of the following is associated with African Continent?a. COMESA,b. ECOWASc. SACUd. All of above

22. Who among the following, is a member of GCC?a. Syriab. Iraqc. Bahraind. Iran

23. G8 doesn’t have member from which continent?a. Europeb. Australiac. Asiad. North America

24. MERCOSUR membership doesn’t includea. Brazilb. Paraguayc. Uruguayd. Venezuela

25. NAFTA includesa. only US, Canadab. only US, Mexicoc. Only Canada, Mexicod. US, Canada and Mexico

26. SAARC has ___ membersa. 5b. 6c. 7d. 8

27. SAFTA doesn’t includea. China, Pakistan and Afghanistan



b. China and Myanmarc. Nepal and Myanmard. Myanmar and Maldives

28. As per IMF classification, which of the following is not an Advanced economya. Taiwanb. Singaporec. South Koread. China

29. ___, ____ and ____ are the chiefs of World Bank, IMF and WTO respectivelya. Christine lagarde, Pascal Lamy, Jim Yong Kimb. Pascal Lamy, Christine lagarde, Jim Yong Kimc. Jim Yong Kim, Christine lagarde, Pascal Lamyd. Christine lagarde, Jim Yong Kim, Pascal Lamy

30. To reduce its dependence on China, Japan recently inked a pact with India toimport ____.

a. Riceb. Eggs and unprocessed meatc. Iron ored. Rare earth minerals

31. The annual supplements to Foreign Trade policy are released bya. Finance ministryb. Commerce Ministryc. External Affairs ministryd. PMO

32. Which of the following is a town of export excellence for Apparela. Ahmedabadb. Kolhapurc. Gurgaond. Shaharanpur

33. In 2013, Morbi was declared a town of export excellence for its ____ sectora. Electronicsb. Leatherworkc. Ceramicd. Handicraft

34. In 2013, Gurgaon was declared a town of export excellence for its ___ sectora. Automobileb. ITc. Appareld. Service

35. Government provides interest subvention toa. Farmersb. Handloom, handicraft exportersc. bothd. none

36. Who benefits from E-BRC scheme?a. Indian Exportersb. Indian IT companiesc. Indian Embassies in Brazil, Russia and Chinad. All of Above

37. ASIDE Scheme is meant to



a. Provide assistance to physically challengedb. improve infrastructure for Export developmentc. provide loans to farmersd. provide assistance to HIV positive people.

38. Matters related to dumping falls under the purview ofa. Commerce Ministryb. Finance Ministryc. External Affairs Ministryd. Home ministry

39. Countervailing Duty: correct statementsa. It is an example of Indirect Taxb. It is imposed on imported goods in certain circumstances.c. Bothd. None

40. What is the purpose of countervailing duty?a. Protect domestic industry against foreign industryb. Protect exporters against domestic industry in the foreign countryc. Protect exporters against currency exchange rate fluctuationsd. None of above

41. “Ease of Doing business” data is released bya. OECDb. WTOc. World Bankd. IMF

URL to article: http://mrunal.org/2013/04/economic-survey-ch7-international-trade-fta-pta-aside-e-brc-cepa-vs-ceca-difference-explained.html

Posted By Mrunal On 26/04/2013 @ 21:45 In the category Economy

mrunal [economic survey ch7] international trade, fta, pta, aside, e-brc, cepa vs ceca difference...

Documents

indias trade agreements9

trade agreements1

baltic dry index bdilondon

baltic dry index bdi2

bdi index

indias export basket

indias exports

trade surplus deficit