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

7/28/2019 Mrunal [Economic Survey Ch7] International Trade, FTA, PTA, ASIDE, E-BRC, CEPA vs CECA Difference Explained

1/23

9/7/13 Mrunal [Economic Survey Ch7] International Trade, FTA, PTA, ASIDE, E-BRC, CEPA vs CECA Difference Explained Print

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

[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
http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://mrunal.org/http://mrunal.org/http://mrunal.org/http://mrunal.org/http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://-/?-http://mrunal.org/


2/23


mrunal.org/2013/04/economic-survey-ch7-international-trade-fta-pta-aside-e-brc-cepa-vs-ceca-difference-explained.html/print/ 2

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
http://-/?-


3/23



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


4/23



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.


5/23



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


6/23



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.


7/23



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)


8/23



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


9/23



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.


10/23



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


11/23



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


12/23



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


13/23



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


14/23



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


15/23



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


16/23



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.


17/23



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


18/23



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


19/23



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


20/23



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


21/23



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


22/23



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.


23/23


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

Date post:	14-Apr-2018
Category:	Documents
Upload:	jitendra-raghuwanshi
View:	228 times
Download:	0 times

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

Documents