G 20 Finance Minister’s meeting concluded at the German spa town of Baden Baden is a break from the past. The meeting witnessed a clash between the resurged US economic nationalism and the rest of the G20 who are worried about the future of globalisation. There was an uneasy air as well as debate about the wording against protectionism. In the past, the G20 was the forum that passes resolution against trade barriers. Last year, the official summit communiqué adopted a tougher language to “resist all forms of protectionism”. But this year, the meeting declared that members were “working to strengthen the contribution of trade to our economies”.
IMF and WTO
The EU’s effort to create an investor-state dispute settlement mechanism (ISDS) at WTO was opposed by countries led by India, Japan and Brazil. According to Commerce Minister Nirmala Sitharaman, EU and Canada have made an informal proposal for creating such an arrangement within the present WTO format at the end of the Davos WEF. The WTO’s eleventh Ministerial Conference is about to take place in December at Buenos Aires, Argentina. A fresh wave of new issues is expected to be launched at least at the discussion level during the MC. Already, investor disputes are settled under Bilateral Investment Protection Treaties (BIT). India has signed nearly 84 BITs so far, g
Nearly one year after the tenth Ministerial Conference of the WTO, India indicated intention to join the one of the most engaged new issues – ecommerce. Officials from Department of Industrial Policy and Promotion (DIPP) indicated that the country is going to engage with the new issues to be tabled at the Eleventh Ministerial Conference. The WTO is going to conduct the Eleventh MC at Buenos Aires, Argentina between December 11 -14, 2017. Indications are that several WTO members are seriously discussing the new issues including ecommerce, investment and government procurement. But of these, only ecommerce may materialize some agreement as members have serious divergences amo
Trade battle between the US -world’s largest economy and India world’s fastest growing economy is on an uptrend and WTO battles have increased in recent years. the latest incident is the US’s follow up compensation demand out of its poultry trade dispute victory at WTO’s DSB(Dispute Settlement Body). In the latest development, the US has requested WTO to initiate compensation from India for the poultry trade restrictions against US imports. Earlier, the US had won a case against India’s import restrictions against US imports including poultry, egg and live pigs at WTO’s DSB. The DSB in June 2015, ruled that Indian ban on import of poultry meat,
India has demanded special and differential treatment for the country’s small fishermen at World Trade Organization. According to a report in the Business line (July 4, 2016), New Delhi has insisted the concession at a recent Geneva meeting. The meeting was organized to design rules for a global agreement to check overfishing. India has also demanded capacity-building assistance to developing countries for its implementation. Special and differential treatment under WTO gives special concessions to developing countries for giving subsidies and retaining permissible level of restrictions. Backwardness and subsistence agricultural practices are the main ground for providing s
India has opened debate for the next big reform in the administration of global economy. institutions. The country’s representative Shaktikant Das has demanded that the next Managing Director of the IMF should be from emerging economies. The demand for an emerging market head for the world’s top financial institution came after the whole 187 members ratified a second term for France’s Christina Legarde who was the MD of the Fund for the last five years. “This time, there was no candidate from any other country. It was proposed by all European countries. India supported her candidature. But while doing so we have indicated, we have informed the Fund t
Indirectly launching criticism on countries especially China for adopting currency war strategies, Prime Minister Modi highlighted that India has followed a neighbor friendly trade policy. The Prime Minister was speaking at Advancing Asia Conference jointly conducted with IMF. In his speech the PM stressed two points about India’s growth story. First, the country has achieved growth in the context of a vibrant democracy. India has dispelled the myth that growth and democracy can’t go together. “India’s growth rate of over seven per cent is being achieved in a country that is also a vibrant democracy.” Secondly, the PM indicated that India&rsquo
India has approached the Dispute Settlement Mechanism of the WTO against the US government’s decision to make an abnormal hike in visa fees. According to the WTO officials, India has initiated a dispute settlement procedure at the WTO by inviting the US to make a consultation on the issue. As per the WTO’s Dispute Settlement Body’s procedure, consultation between the two countries is the first step in dispute settlement. WTO gives a 60 day time line for the members to settle their dispute through consultation. If it is not resolved, then only the next step of framing a panel on the dispute will be made. From here onwards, the WTO’s DSB will hear cas
Five years after the IMF Board of Governors approved the historic quota reforms of the IMF, the US Congress has given consent to it on December 18th. The Congress has passed the quota reform after rejecting the IMF Board of Governor’s decision several times during the last five years. IMF’s voting pattern is peculiar as it gives vote share (and the quota or share of money that a member country has to give to the IMF) in accordance with the economic weight of members. Every important decision including the quota reforms need 85% of votes in the IMF. The US has nearly 17% of the total votes and that gives it a veto power. In the US, international treaties need the c
The Nairobi Ministerial Conference has been extended to few more hours and the closing ceremony extended to Saturday amidst unsettled rift between India led developing nations and the advanced countries. Closing ceremony of the conference was postponed twice on Friday and ultimately to the next day with developing countries demanding firm trade distorting domestic subsidy removal commitment from the developed countries. Negotiations are also going on is other two critical issues related to agriculture- public stockholding of food grains and special safeguard mechanisms. In another development the developing countries have developed more unity with the African group attacking the
Dictionary on Indian Economy
- Logic of withdrawing Rs 1000 and Rs 500 notes
- Why the GST reform is transformational?
- Raghuram Rajan: The Gladiator returns to Chicago
- Good intention but poor thinking - what troubles demonetization?
- India Black Money Report: CBI underestimates black money at Rs 25 lakh crore
- High interest rate rather than inflation is the macroeconomic problem for India right now
- Japan’s first trade deficit in 30 years is part of the Global Shift
- Arvind Subramanian rocks with 'Chakravyuha' in Economic Survey
- Why we need an emergency monetization plan as well?
- NREGS: give respect to the tax payer’s money