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[Economic Survey Ch7] International Trade, FTA, PTA, ASIDE, E-BRC,CEPA vs CECA Difference Explained
1. Baltic Dry Index (BDI)
2. Indias Chief import exports
3. Market Diversification
4. Top three trading partners
5. Trade surplus / deficit?
6. WTONegotiations and India
7. Trade agreements
1. PTA2. FTA
3. Customs Union
4. Common Market
5. Economic union
6. CEPA vs CECA
8. Indias 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. RBIs measures
10. Anti-Dumping
11. Chindus 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
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14. Important Summits
15. Trade Blocs/ Regional Groups
16. Mock Question
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 raw
material / pre-production items= something bad is about to happen with world
economy.
In the recent times, BDI was highest in 2008 and then started falling. There was a
small rise in BDI index during Nov.2012, but still it is nowhere near to the high
level of 2008.
Meaning, world economy hasnt yet recovered from the fallout in US and EU.
Indias Chief import exports
Import Export
1. Petroleum
2. Gold
3. Electronic goods
4. Pearls, precious stones
5. Machinery except electronics
1. Petroleum (crude and products)
2. Gems and jewelry
3. Transport equipment, machinery
4. Drugs, pharmaceuticals, chemicals
^As per Commerce chapter India 2013 (Yearbook.)
Compositional changes in Indias export basket have been taking place over the
years.
The share of manufacturing exports fell drastically, mainly due to the fall in
shares of traditional items like textiles and leather and leather manufactures even
though the share of engineering goods and chemicals and related products
increased.
The rise or fall in Indias export depends mainly on following factors
World growth
Trading partners growth
Exchange rates
Market Diversification
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India has been fairly successful in diversifying its export markets from
developed countries like the US and Europe to Asia and Africa
This has helped us get reduce the damage from global crisis of 2008 and the
recent global slowdown.
Region-wise, while Indias exports to Europe and America have declined, its
exports 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 musical chairs).
For 2011-12: first is China, second is UAE and third is USA. (2012-13 data yet
to come)
Trade surplus / deficit?
Indias 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 2012
though)
2. USA,
3. Singapore
4. Hong Kong.
1. China
2. 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 trade
diplomat, 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 capital and
chief port of Qatar)
Doha negotiations are still unfinished due to differences among members on
various issues.
Since multilateral trade negotiations (WTO) are stalled/pending, the regional
trading agreements are on rise.
Trade agreements
What?Level of
integration
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PTAPreferential trade agreements
lower customs duty on the products
originating from the member countries.shallow
FTA
Free Trade Agreements
It is a special case of PTA where all tariff
and non-tariff barriers are abolishedfree access is allowed to the products of
member countries.
Example NAFTA (among Mexico, US and
Canada).
Shallow
CustomsUnion
A Customs Union moves beyond a free
trade area by establishing a common
external tariff on all trade between,
members and non-members.Customs Unions typically contain
mechanisms to redistribute tariff revenue
among members
Example: Mercosur
Shallow
Common
Market
free flow labour, capital, and output
(goods/services) among the members.
Example, SICA (in Central America)
Deep
Economic
union
members share a common currency and
macro-economic policies (Example
European Union).
Example, European Union.
deep
CEPA vs CECA
Both are examples of Free trade agreements.
CECA CEPA
Comprehensive Economic Cooperation
Agreement
Comprehensive Economic partnership
Agreement
Reduce the tariffs (custom/import duties).Reduce tariffs + cooperation in trade in
services, investment. = wider scope.
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Countries sign CECA first and then gradually
move towards CEPA like agreement.-
Example, India has CECA with
1. Malaysia
2. Singapore
3. ASEAN (under negotiation)
Example, India has CEPA With
1. Japan
2. South Korea
3. Sri Lanka (under negotiation)
Indias trade agreements
So far, India has signed 10 free trade agreements (FTAs) and 5 preferential trade
agreements (PTAs) and these FTAs/PTAs are already in force.
FTA/PTA: Already concluded
10 FTA with 5 PTA with
1. Sri lanka
2. SAFTA (India, Pakistan, Nepal, Sri
Lanka, Bangladesh, Bhutan and
Maldives)
3. Nepal
4. Bhutan
5. Thailand, + early harvest Scheme
(EHS)
6. Singapore (CECA)7. ASEAN (CECA)
8. S.Korea: CEPA
9. 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. MERCOSUR
5. Chile
^as per commerce chapter, India 2013 (Yearbook).
Further, India is currently negotiating 17 FTAs, including review/expansion of
some 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 cheaper than
primary gold (raw material) available in India!
Trade agreements: Recent development
SAFTA
Signed and came into force.South Asia Free Trade AreaUnder
SAFTA, India has granted zero basic custom duty to all LDCs,
viz. Afghanistan, Bangladesh, Bhutan, and Maldives, on all
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items, except alcohol and tobacco products.
IndiaThailandFTA
Signed but negotiations still on.
India-
ASEANCECA
Signed, broader framework already in force. Minor details
remain to be negotiated.
RECPamong
ASEAN+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 this
agreement.
Itll 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 still
going on.
GSTP
Global System of Trade Preferences among Developing
Countries (GSTP)
It is a preferential trade agreement to increase trade
between developing countries in the framework of the
UNCTAD (United Nations Conference on Trade and
Development).
India has unilaterally offered special concessions to
Least developed countries under this agreement.
Cabinet approved implementing Indias schedule of
concessions under GSPT.
India has also unilaterally offered special concessions to
LDC
Japan
In Nov. 2012, India and Japan signed a pact to enable
Japan to import rare earth minerals from India. (This
will help reduce Japans reliance on China for rare earth
minerals).
Rare earth minerals are important for high-tech
electronics, mobile phones and hybrid cars, missile
guidance systems etc.
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Problem Areas: Export
Jawaharlal Nehru Port Trust (JNPT) Port at Mumbai, entry gates closing
prematurely resulting in export consignments being dumped in the buffer yard at
a 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 good
practice 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 to
complete an export transaction!
If we want to increase our exports, then Government must reduce these
procedures and costs need to the barest minimum.
Measures to improve trade?
Indias foreign trade policy covers the period of 2009-14.
Under that, Commerce Ministry (and not finance ministry) releases Annual
supplement 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 products
Incentives for labour intensive industries, North East, agriculture etc.
Foreign Trade Policy annual supplement 2013
Released in April 2013, by Ministry of Commerce, Industry and Textiles
Although Government did not launch any new scheme in it
But the existing schemes were modified to provide for more relaxations and
benefits to importers who are also exporters.
Salient Features FTP Annual Supplement 2013
1. Reduced Minimum land area requirement for SEZ, by half
2. No minimum land requirement for settingup IT SEZ
3. Permitted sale and transfer of units inside SEZ.
4. Zero Duty Export Promotion Capital Goods Scheme
5. Government will give 2% Interest Subvention Scheme for more sectors. (upto
31st March 2014)
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6. Duty Credit Scrips issued under Focus Market Scheme, Focus
7. 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 issuance of
a bank export and realization certificate (BRC).
Thus their time and money will be saved.
For electronic transmission of foreign exchange realization from the respective
banks to the Directorate General of Foreign Trade (DGFT) server on a daily
basis.
ASIDE scheme
Assistance to States for Developing Export Infrastructure and Allied Activities
(ASIDE) Scheme
It provides assistance to State and union territories to create infrastructure for
export Development.
Top 5 exporter states in India (also top-5 in terms of ASIDE allocation): Gujarat,
Maharashtra, Tamil Nadu, Karnataka, and Andhra Pradesh. (Why? Think about 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. Abad
Textiles
2. Kolhapur
3. Shaharanpur Handicraft
2013
4. Morbi Ceramic
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5. Gurgaon Apparel
^this list in not exhaustive. Ive only listed the new towns of export excellence under
2012 and 2013s annual supplements to foreign trade policy. But if and when youre
preparing for UPSC interview, dig all the export excellence towns in your home state.
Interest SubventionEarlier Government gave 2% interest subvention on handlooms, handicrafts,
carpets, and SMEs
This scheme has been extended to labor-intensive sectors viz. toys, sports goods,
processed agricultural products, and readymade garments.
Scheme is applicable upto 31 March 2014.
Special Economic Zones
Asias first Export processing zone (EPZ) was setup in Kandla, Gujarat, 1965
Special Economic Zones (SEZ) Act, enacted in 2005 and and Rules were
notified in February 2006.
Government has given formal approvals to setup 579 SEZs, of which 384 have
been 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 route
Problem area: land acquisition. (some of that is addressed under the 2013s
annual 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.
RBIs 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 initiated 10
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.
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Chindus budget speech (2013): Foreign Trade
CAD worrysome
India is part of the global economy: our exports and imports amount to43
percent of GDP
But 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 gold
4. slow down in exports.
This year, and perhaps next year too, we have to find over USD 75 billion to
finance the CAD.
(To finance Current Account deficit) , there are only three ways before us:
1. FDI
2. FII3. External Commercial Borrowing (ECB).
That is why I have been at pains to state over and over again that India, at the
present juncture, does not have the choice between welcoming and spurning
foreign investment.
If I may be frank, foreign investment is an imperative.
What we can do is to encourage foreign investment that is consistent with our
economic objectives.
To boost trade
Peak rate of basic customs duty = 10% (for non agro products)
Normal excise duty = 12%
Normal service tax= 12%
What?Duty
Increase/decrease?Chindu said
Import
Machineryfor leather
factory
Decrease
Leather and leather goods is a thrust sector
for exports. I propose to reduce the duty onspecified machinery for manufacture of
leather and leather goods and footwear.
Taxation: Export
Precious
stones Decrease
To encourage exports, I propose to reduce the duty on
pre-forms of precious and semi-precious stones from
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exporting 10 percent to 2 per cent.
oil cake Eliminated
Export duty on de-oiled rice bran oil cake has made
our exports uncompetitive. Hence, I propose to
withdraw the said duty.
Ilmenite Increased
Prices of unprocessed ilmenite have gone up several
fold in the export market.
Considering the need to conserve our natural
resources, I propose to impose a duty of 10 percent
on 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 coating industry.Titanium is used in aircraft, tank, weapons, artificial
joints, sporting equipment and high performance
alloys.
Coal Streamlined
At present both Steam coal and Bituminous coal are
used in thermal power stations, but attract different
rates of customs duty and counter veiling duty.
I propose to equalize the duties on both kinds of coal
and levy 2 per cent customs duty and 2 per cent CVD.
Luxury
vehicleIncreased
There is an affluent class in India that consumes
imported luxury goods such as high end motor
vehicles, motorcycles, yachts and similar vessels. I
am sure they will not mind paying a little more.
Hence, I propose to increase the duty on such
vehicles.
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 into
account, there is no alternative except to import coal and adopt a policy of
blending 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 the
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production of coal. Coal ministry will announce the policies in this regard.
IT
The Rangachary Committee was appointed to look into tax matters relating to
Development Centres & IT sector and Safe Harbour rules for a number of
sectors.
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 by
Indian 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 or
The Indian producers are required to pay more taxes hence desi variety has
become more expensive than the American product.
In such case, Indian Government can imposes addition tax on the imported item
to 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 Indian Government
provides lot of incentives, subsidies and tax reliefs to Indian shrimp exporters, so US
Government should impose a CVD on the shrimps imported from India.
Conclusion
Gold and CAD
In the earlier article on Gold ETF, we saw the measures taken by govt. to reduce
the gold import(click me) While the supply of gold through organized channels
can be constricted, there is need to be vigilant regarding gold inflows through
unauthorized channels (= Smuggling).
Ultimately, the best way to reduce gold imports in a sustainable way will be to
offer the public financial investment opportunities that generate attractive
returns.
This means bringing down inflation as well as expanding the range of investments
investors have easy access to. (e.g. Rajiv Gandhi Equity savings scheme
RGESS).
Trade Agreement
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India always stood for open, unbiased, international trading system, but since
WTO negotiations are not moving in positive direction, we need to focus on
Regional Trade agreements (RTAs). Particularly for exporting our technology-
intensive items.
There is also need to address the inverted duty structure in sectors like
electronics, textiles, and chemicals and the artificial inverted duty structure
caused 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, Mexico
St. Petersburg, RussiaBrisbane, Australia
Trade Blocs/ Regional Groups
List is not exhaustive.
APEC Asia-Pacific Economic Cooperation
1. Australia
2. Brunei
3. Canada
4. Chile
5. China
6. HongKong
7. Indonesia
8. Japan9. SouthKorea
10. Malaysia
11. Mexico
12. New Zealand
13. Papua NewGuinea
14. Peru
15. Philippines
16. Russia
17. Singapore
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18. Taiwan
19. Thailand
20. United States
21. Vietnam
APTA Asia Pacific Trade agreement
1. Bangladesh
2. China3. India
4. S.Korea
5. Sri Lanka
ASEAN Association of South East AsianNation
1. Brunei
2. Cambodia
3. Indonesia
4. Laos
5. Malaysia6. Burma (Myanmar)
7. Philippines
8. Singapore
9. Thailand
10. Vietnam
BIMSTEC
Bay of Bengal Initiative for
Multi-Sectoral Technical andEconomic Cooperation.
Bangladesh, India, Myanmar,
Sri Lanka, and Thailand
Economic Cooperation
1. Bangladesh
2. Bhutan
3. Myanmar4. India
5. Nepal
6. SriLanka
7. Thailand
BRICSBrazil, Russia, India, China and South
Africa
1. Brazil
2. Russia
3. India
4. China
5. South Africa
CELACCommunity of Latin American and
Caribbean States
33 countries in that region.
Names not worth the space
hahaha.
1. Armenia
2. Azerbaijan
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CIS Commonwealth of Independent States
3. Belarus
4. Kazakhstan
5. Kyrgyzstan
6. Moldova
7. Russia
8. Tajikistan
9. Uzbekistan
COMESACommon Market for Eastern and
Southern Africa
20 member states
stretching from Libya to
Zimbabwe.
ECOWASEconomic Community of Western
African States
15 members in Western
Africa.
EFTA European Free Trade association
1. Iceland
2. Liechtenstein
3. Norway
4. Switzerland
EU European Union
1. Austria
2. Belgium
3. Bulgaria
4. Cyprus
5. Czech Republic
6. Denmark
7. Estonia
8. Finland
9. France
10. Germany
11. Greece
12. Hungary
13. Ireland
14. Italy
15. Latvia
16. Lithuania
17. Luxembourg18. Malta
19. Netherlands
20. Poland
21. Portugal
22. Romania
23. Slovakia
24. Slovenia
25. Spain
26. Sweden
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27. UK
G20 Group of 20
1. Argentina
2. Australia
3. Brazil
4. Canada
5. China6. European Union
7. France
8. Germany
9. India
10. Indonesia
11. Italy
12. Japan
13. Mexico
14. Russia
15. SaudiArabia16. SouthAfrica
17. SouthKorea
18. Turkey
19. UnitedKingdom
20. UnitedStates
G8 Group of 8 (Wealthiest nations)
1. Canada
2. France
3. Germany4. Italy
5. Japan
6. Russia
7. UK
8. US
GCC Gulf cooperation council
1. Bahrain
2. Kuwait
3. Qatar
4. Saudi Arabia
5. Oman
6. United Arab Emirates
(UAE)
GSTP Global system of trade preferences
44 developing countries.
List is not worth the table
space hahaha.
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IBSA India Brazil South Africa
1. India
2. Brazil
3. South Africa
IORARC/Ocean
Rim
Indian Ocean Rim association of
regional cooperation.
1. Australia
2. Bangladesh
3. Comoros
4. India
5. Indonesia
6. Iran
7. Kenya
8. Madagascar
9. Malaysia
10. Mauritius
11. Mozambique
12. Oman13. Seychelles
14. Singapore
15. S.Africa
16. Sri Lanka
17. Tanzania
18. Thailand
19. UAE
20. Yemen
MERCOSURSouthern Common Market. (Mercado
Comun Del sur)
1. Argentina
2. Brazil
3. Paraguay
4. Uruguay
5. Venezuela (member
since 2012)
NAFTA North American Free TradeAgreement
1. Canada
2. US
3. Mexico
SAARCSouth Asian Association for Regional
Cooperation
1. Afghanistan
2. Bangladesh
3. Bhutan
4. India
5. Maldives
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6. Nepal
7. Pakistan
8. Sri Lanka
SACU Southern African Customs Union
1. South Africa
2. Botswana
3. Lesotho4. Swaziland
5. Namibia
SAFTA South Asia Free Trade Agreement
1. India
2. Paki
3. Nepal
4. Lanka
5. Bangladesh
6. Bhutan7. Maldives
8. Afghanistan (latest
member)
SCO Shanghai Cooperation Organisation
1. China,
2. Kazakhstan,
3. Kyrgyzstan,
4. Russia,
5. Tajikistan,6. Uzbekistan.
IMF: Advanced Economies in ASIA
1. S.Korea
2. Hong Kong
3. Singapore
4. Taiwan
Mock Question
1. Baltic dry index measures
a. change in crude oil prices
b. change in dollars value against major currencies.
c. Performance of share markets in Baltic nations
d. None of Above
2. Increase in Baltic Dry index means
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a. World economy is moving in negative direction
b. World economy is moving in positive direction
c. World economy is moving towards a stalemate
d. None of above
3. Which of the following is not among the top 3 trading partners of India?
a. US
b. UAE
c. Chinad. Japan
4. India doesnt have trade surplus with
a. Singapore
b. Hong Kong
c. Switzerland
d. All of above
5. India doesnt have PTA agreement with
a. Chile
b. Mercosur
c. Afghanistand. Sri Lanka
6. India doesnt have FTA agreement with
a. Thailand
b. Japan
c. Malaysia
d. Afghanistan
7. With Japan, India has ______ agreement
a. CEPA
b. CECAc. PTA
d. No trade
8. GSTP aims to increase trade between _____ countries under ______.
a. Developed, UN
b. Developing, UNCTAD
c. All, WTO
d. member, ASEAN
9. India has high current account deficit mainly because of
a. coal import
b. crude oil importc. slow down in export
d. All of above
10. Current Account Deficit can be financed through
a. Only FDI, FII
b. Only FDI and ECB
c. Only ECB and FII
d. FDI, FII and ECB
11. Ilmenite is the primary ore of
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a. Copper
b. Aluminum
c. Titanium
d. Magnesium
12. Which of the follow coal is used in Thermal power stations?
a. steam coal
b. Bituminous coal
c. bothd. none
13. Rangachary Committee is associated with taxation of ____ sector.
a. IT
b. Fisheries
c. Coal
d. gems and jewelry
14. Addu declaration is associated with
a. UNESCO
b. G20
c. SAARCd. G8
15. For 2013, SAARC summit will be held in
a. Kathmandu
b. Delhi
c. Lahore
d. Thimpu
16. Durban summit, 2013, is associated with
a. BRICS
b. G20c. G8
d. UNESCO
17. In 2012, G20 summit was held in
a. Los Angeles
b. Phnom Penh
c. Los Cabos
d. None of above
18. Phnom Penh hosted the _____ summit in 2012.
a. ASEAN
b. BRICSc. G20
d. G8
19. Correct order in terms of membership (smaller to bigger)
a. ASEAN, BIMSTEC, G20
b. BIMSTEC, ASEAN, G20
c. BIMSTEC, G20, ASEAN
d. None of above
20. Switzerland is a member of
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a. EU
b. EFTA
c. Both
d. None
21. Which of the following is associated with African Continent?
a. COMESA,
b. ECOWAS
c. SACUd. All of above
22. Who among the following, is a member of GCC?
a. Syria
b. Iraq
c. Bahrain
d. Iran
23. G8 doesnt have member from which continent?
a. Europe
b. Australia
c. Asiad. North America
24. MERCOSUR membership doesnt include
a. Brazil
b. Paraguay
c. Uruguay
d. Venezuela
25. NAFTA includes
a. only US, Canada
b. only US, Mexicoc. Only Canada, Mexico
d. US, Canada and Mexico
26. SAARC has ___ members
a. 5
b. 6
c. 7
d. 8
27. SAFTA doesnt include
a. China, Pakistan and Afghanistan
b. China and Myanmarc. Nepal and Myanmar
d. Myanmar and Maldives
28. As per IMF classification, which of the following is not an Advanced economy
a. Taiwan
b. Singapore
c. South Korea
d. China
29. ___, ____ and ____ are the chiefs of World Bank, IMF and WTO respectively
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a. Christine lagarde, Pascal Lamy, Jim Yong Kim
b. Pascal Lamy, Christine lagarde, Jim Yong Kim
c. Jim Yong Kim, Christine lagarde, Pascal Lamy
d. Christine lagarde, Jim Yong Kim, Pascal Lamy
30. To reduce its dependence on China, Japan recently inked a pact with India to
import ____.
a. Rice
b. Eggs and unprocessed meatc. Iron ore
d. Rare earth minerals
31. The annual supplements to Foreign Trade policy are released by
a. Finance ministry
b. Commerce Ministry
c. External Affairs ministry
d. PMO
32. Which of the following is a town of export excellence for Apparel
a. Ahmedabad
b. Kolhapurc. Gurgaon
d. Shaharanpur
33. In 2013, Morbi was declared a town of export excellence for its ____ sector
a. Electronics
b. Leatherwork
c. Ceramic
d. Handicraft
34. In 2013, Gurgaon was declared a town of export excellence for its ___ sector
a. Automobileb. IT
c. Apparel
d. Service
35. Government provides interest subvention to
a. Farmers
b. Handloom, handicraft exporters
c. both
d. none
36. Who benefits from E-BRC scheme?
a. Indian Exportersb. Indian IT companies
c. Indian Embassies in Brazil, Russia and China
d. All of Above
37. ASIDE Scheme is meant to
a. Provide assistance to physically challenged
b. improve infrastructure for Export development
c. provide loans to farmers
d. provide assistance to HIV positive people.
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38. Matters related to dumping falls under the purview of
a. Commerce Ministry
b. Finance Ministry
c. External Affairs Ministry
d. Home ministry
39. Countervailing Duty: correct statements
a. It is an example of Indirect Tax
b. It is imposed on imported goods in certain circumstances.c. Both
d. None
40. What is the purpose of countervailing duty?
a. Protect domestic industry against foreign industry
b. Protect exporters against domestic industry in the foreign country
c. Protect exporters against currency exchange rate fluctuations
d. None of above
41. Ease of Doing business data is released by
a. OECD
b. WTOc. World Bank
d. 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