Current Affairs – January, 2017

Latest Current Affairs January, 2017 with Current Affairs, news summary on current events of National and International importance of January, 2017 for Banking, SSC, CLAT, UPSC, State PCS, IBPS, Railways and other Competitive Examinations.

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US President Donald Trump signs executive order to pull US out of TPP

US President Donald Trump signed an executive order to formally pull US out of the negotiating process of the Trans-Pacific Partnership (TPP), a mega trade deal of 12 Pacific Rim countries.

TPP was one of the major international trade initiatives of his predecessor Barack Obama aimed to set trade rules for the 21st century and bind US allies against growing Chinese economic clout.

During the Presidential election campaign, Trump had vowed to withdraw the US from the TPP which he argued was harmful to American workers and manufacturing.

About Trans-Pacific Partnership (TPP) 

  • The TPP is a trade agreement under negotiation among 12 Pacific Rim nations accounting for 40% of the world economy. It was promoted by US and signed by 12 countries in 2015.
  • 12 members are Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, US and Vietnam. India was not part of TPP.
  • The aimed to ease the flow of goods, services and investments among member countries and set trade rules for 21st century especially on labour standards, environmental issues, origin criteria and intellectual property.
  • The mega trade deal was considered as counterweight to growing global economic clout of China, the largest economy in the Pacific Rim.
  • TPP’s Impact on India: It might have led to market share losses for certain categories of India’s exports due to preference erosion. It could have indirectly impacted exports in several industrial sectors such as textiles, leather, clothing, plastics, cotton and yarn. Even India’s pharmaceutical sector might had suffered due to higher standards compared WTO norms, including on IPR and ever-greening of patents.

Month: Categories: International

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India rejects attempts of EU, Canada for global investment agreement

India, along with Brazil, Argentina and some other nations rejected an informal attempt of European Union (EU) and Canada to work towards a global investment agreement at World Trade Organisation (WTO)-level.

The EU and Canada proposed agreement incorporates a contentious Investor-State Dispute Settlement (ISDS) mechanism. They wanted their investment pact to be the template for a similar multilateral agreement.

What is Investor-State Dispute Settlement (ISDS) mechanism?

The ISDS mechanism permits companies to drag governments to international arbitration without exhausting the local remedies. It also allows them to claim huge amounts as compensation citing losses they suffered due to reasons, including policy changes. The contentious ISDS mechanism already has been incorporated by investment pact by the EU and Canada.

What is India’s position?

India has rejected such mechanism. It clearly held that only after all local options have been exhausted for settling disputes between a corporate and a government, then the issues can be taken up in international arbitration tribunals. It also held that such provisions could be a part of bilateral agreements but they can’t be allowed in a multilateral agreement.

Month: Categories: Business, Economy & Banking

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