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[Economy] WTO: Bali Summit, Trade Facilitation Agreement (TFA), De-minimus level, 10%
Subsidy Limit, Why Modi Opposed?

[Economy] WTO: Bali Summit, Trade

Facilitation Agreement (TFA), De-minimus
level, 10% Subsidy Limit, Why Modi
Opposed?
Economy1 year Ago170 Comments
For Aptitude, I recommend
Maths: Fast-track RajeshReasoning: MK PandeyEnglish: SP Bakshi
1. Prologue
2. WTO: Structure and functions
3. Tariff and Non-Tariff Barriers to Trade
4. WTO agreements
5. Agreement on Agriculture (AoA)
1. Green. Blue and Amber subsidies
2. Amber box: De Minimus limits
6. What is Bali summit and Peace clause?
7. What is Trade Facilitation Agreement?
8. Why Modi opposed Trade Facilitation Agreement

Prologue
Consider this a Fork of the Economic Survey chapter 9 on Agriculture and food production.

WTO: Structure and functions

Q. Write a note on origin, structure and functions of WTO? 200 words
1944: Bretton Woods summit leads to birth of three institutions

Institution
KEY IDEA
World
Cheap loans for development projects in third world
bank
IMF
Balance of payment and Exchange rates

GATT

To reduce barriers to international trade.

Bretton Woods wanted to setup an international trade organization (ITO)

but USA did not ratify.

Thus, GATT was born as a stopgap arrangement.

General Agreement on Tariffs and Trade.

GATTs Uruguay round of talks => Marrakesh Treaty94=> World trade

organization (WTO) born in 1995, India founding member.

WTO structure
MinisterialConference

Supreme Decision Making body

GeneralCouncil

160 members, Latest member Yemen (Capital: Sanaa)

Meets once every two years,

deliberates on trade agreements

Appoints Director general

day to day Decision Making body

Meets regularly at Geneva.

implements decision of ministerial conferences

Has Representative from each member state.

has two bodies, with separate chairmen

1. Dispute settlement body
2. Trade policy review body

Below general council, there are Committees on individual

agreements and annexes- Anti dumping, Subsidies &
countervailing measures (SCM) etc.

Roberto Azevdo

Appointed by ministerial conference

Has four years term.

heads the Secretariat at Geneva

DirectorGeneral

WTO Functions
1. Ensure the developing countries benefit from world trade, especially the least
Developed countries.
2. Reduce barriers to international trade both tariff barriers and non-tariff barriers.
3. Get the members Enter into multilateral trade agreements to achieve above objectives.

4. Provide forum for negotiation and dispute settlement for the members, if the
agreements are violated.
5. Cooperate with UN, World and IMF for a global economic policy that improves
livelihood, protects environment and promotes sustainable Development.

Tariff and Non-Tariff Barriers to Trade

All countries want to protect domestic industries and prevent entry of foreign players. So,
they create two types of barriers to International trade:
Tariff
If US President Obama imposes 56% custom duty on Indian Cars.
Barrier
If Obama tries to restrict entry of Indian cars without imposing heavy taxes on
Indian cars, for example

Non-Tariff
Barrier

1. Subsidies: Giving free electricity to Detroit car manufacturers. OR If

American residents buy American made cars, Obama administration will
pay 50% of your vehicle insurance premium, and so on.
2. Public Procurement: Making rule that only American companies can
fillup tender for new sarkaari cars.
3. Other obstacles like not giving custom clearance quickly. Putting quota
on each exporter country and so on.

World Trade organization (WTO) aims to reduce such tariff and non-tariff barriers to
international trade.

But what if China starts manufacturing cheap cars with poor breaks, bad steering and
carcinogenic paint. Can Obama ban such dangerous foreign products? Does WTO
permit that?

Yes, WTO made two special agreements for safety:

Non-food products Technical Barriers to Trade Agreement (TBT)

Sanitary and Phytosanitary Measures Agreement (SPS)

EU had banned Indian Alphonso under this provision.

Food Products

WTO agreements

Gist of the whole controversy surrounding India, WTO and TFA

Q. Write a note on WTO agreements 200 words
Five categories of agreements (or 6, depending on which book you refer!)
T1: Goods
1. General Agreement on Tariffs and Trade (GATT)
2. Agreements on
a. Agriculture
b. Textile
c. Antidumping
3. Safety / quality checks related
a. Sanitary and phytosanitary agreement (SPS)
b. Technical barriers to trade (TBT)
4. Trade related investment measures (TRIMS)
5. Subsidies and countervailing measures (SCM)
T2: Services

General Agreement on Trade in Services (GATS)

To ensure that services import/export enjoys the same principles of free and fair
trade, just like the trade in goods.

T3: IPR

Trade related intellectual property rights (TRIPS)

Protects seven categories of IPR viz.

1. copyrights

industrial designs

2. patents

integrated circuit layout-designs

3. trademarks

Trade secrets

4. Geographical indicators

T4: Dispute settlement

to enforce the trade agreements and commitments made by individual member

country

once a complaint is filed, first, the parties are allowed to sort the issue through mutual
consultation

If that fails, formal adjudication by an expert panel.

T5: Policy review

T6: plurilateral
agreements
Not signed by all countries:
1. Civil aircrafts

Periodically, WTO carries out audit/inspection/review of the

trade policy of member states and gives them constructive
feedback.

2. government
procurement
3. Dairy Products
4. Bovine meat

~204 words
WTO has many other agreements but hard to memorize and fit into a 200 word answer
anyways.
For exams in 2014-17, the important agreement is AoA. (Because itll stay in news due to
10% food subsidy issue)

Agreement on Agriculture (AoA)

WTOs Agreement on agriculture (AoA) has three pillars

Pillar
What they want from member states?
1.Market access
reduce import duties
2.export competition
reduce export subsidies
3.domestic support
reduce Amber box subsides

AoA classifies subsidies into two parts:

DOMESTIC SUBSIDY
mostly by third world to keep help
farmers and keep vote bank happy
to increase food production, food
security

AoA further classifies them into 3

parts

EXPORT SUBSIDIES
mostly by first world, to keep their MNC-corporatized
farmer lobby happy.
to capture Foreign market by flooding their cheaper
products
India doesnt give much export subsidies to
farmers- except a select horticulture and floriculture
Items
AoA wants members to reduce export subsides

1. GREEN

developed countries: cut by 36%

2. BLUE

Developing: by 24%

3. AMBER (WTO wants to

reduce these subsidies)

Least developed: not applicable.

Green blue and Amber subsidies

Just like traffic signal has three colors: green (GO), orange (caution) and red (STOP).

Similarly, WTO classifies DOMESTIC AGRICULTURE subsides into three

categories: green (GO), blue and amber (reduce).

There is no RED box meaning WTO doesnt wish to completely STOP subsides,
because it is impractical anyways!

Box

GREEN

subsidies

Subsidies that dont disrupt trade balance OR

Only cause minimum damage to trade balance.

E.g. agriculture research-development, extension services, farmer training

programs, pest-disease control program, flood/drought relief money paid to
farmers etc.

WTO Limit: nothing. Governments can give as much as they want.

Amber type Subsidies that aim to limit production.

BLUE

AMBE
R

Subsidies that dont increase with production. For example subsidies linked
with acreage or number of animals.

Very few countries use blue box- Iceland, Norway, Slovenia etc.

WTO limit: Nothing.

Subsidies that disturb trade balance like, subsidies on fertilizers, seeds,

power and irrigation.

They distort trade balance because they encourage excessive

production,therefore given countrys product becomes cheaper than others,
in the international market.

WTO limits: yes- explained below

Amber box: De Minimus limits

Q. Explain De-Minimus limits in WTOs agreement on agriculture. Why is India opposed
to it? (200 words)

Under WTOs agreement on agriculture (AoA), domestic-subsidies are classified into

three groups: Green, Blue and Amber.

Amber box subsidies create trade distortion because they encourage excessive
production e.g. fertilizers, seeds, electricity and irrigation subsidies.

Therefore, WTO wants to limit the amber box subsidies.

De Minimus is the Minimal amounts of Amber box subsides permitted by WTO, even
though they distort trade.

De minimus limits are calculated on the agriculture production of the given member
state in 1986-88.

Country
Developed
Developing
Least developed

De-Minimus: Amber box subsides quota

5% of agriculture production in 1986-88
10%
Exempted.**

** Besides if theyre L.D.C=> theyve no AUKAAT to give truckload of subsidies

anyways.

Why is India opposed?

India fears itll have to cut down its food subsidy to comply with WTOs De-minimus level
1. In 1986: USA agriculture production was far ahead of India. So, their 5% De-minimus
quota will be far bigger than our 10% quota (in absolute figures).
2. Input costs have skyrocketed in these decades. But, De-minimus doesnt consider
inflation factor.
3. So, if India has to limit its (Amber box) agro. subsides to a non-inflation adjusted 86s
production, we cannot continue the MSP to farmers or food security to poors.
4. These subsidized foodgrains are meant for feeding the poors only, they do not distort
international trade.
~190 words
Indias subsidy Expenditure in Crores (Rs.)
Subsidy component

RE-2013

BE-2014

Food

92000

115000

Petroleum

85480

63427

Fertilizer

67971

72970

Ranking 2013: Food > Petroleum > Fertilizer

Ranking 2014: Food > Fertilizer > Petroleum

What is Bali summit and Peace clause?

Q. What is hell is Bali Package and Peace clause? (200 words)

December 2013: 9th WTO ministerial conference held at Bali, Indonesia

Bali Package is the collection of three prime outcomes of this summit.

Trade facilitation
agreement

To cut down the red tape in customs clearance

LDC exports

Exporters from Least developing countries, will get Duty free,

quota free (DFQF) access to markets in foreign countries.

food stockholding

this lead to peace clause, explained below

as per the original Agreement on agriculture (AoA), the developed and developing
countries have to keep their Amber box subsidies within De-minimus level i.e. 5%
and 10% of their agriculture production in 1986-88 respectively.

India opposed this base year and limits, because itd make impossible to implement
the food security programs for the poor and MSP for the farmers.

Therefore, as a measure of temporary relief, Bali summit enacted a peace clause for
the AoA

Salient features of Peace Clause

No member, can drag any developing country to Dispute settlement mechanism of

WTO.

for violation of De-minimus limits in AoA

Provided that the said developing country

1. is paying subsidies for staple foodcrops

o for public stockholding program
o For food security purpose.
2. is providing annual information of its food security Program to WTO.
3. Permanent solution will be taken no later than 11th ministerial conference i.e. at
December 2017.
~215 words.

What is Trade Facilitation Agreement?

Manniram is happy knowing that Modi has refused to sign TFA!

Q. Write a note on the salient features of Trade facilitation agreement (200 words)
ORIGIN
AIM

9th WTO ministerial conference held at Bali, Indonesia in 2013

reduce red tapes and bureaucratic hassles in customs clearance

Under TFA, Every member:

1. Will have to publish a detailed list of procedure for import-export, fees, inspection
rules, penalties etc.
2. Minimize the proof documents and clearance required for customs clearance.

3. Make all the information available on INTERNET to foreign traders, governments

and interested parties
4. Provide electronic payment of fees, duties, taxes.
5. Setup a single window mechanism to help trader submits all documents at a single
point- preferably online.
6. Trader should be notified immediately, If goods are detained at customs.
7. Provide faster customs clearance to perishable goods (Fruits, veggies, flowers).
8. Member must not ask foreign traders to compulsorily route their applications/fees via
local customs brokers/middlemen.
9. Give Advance ruling, as and where applicable. (Recall advance ruling provision on
taxes, under Budget-2014.)
Least developed countries
Theyll get financial and technical help to comply with above rules.
New Bodies under TFA
body to implement Trade facilitation agreement

LEVEL

Every nation will have to setup a Committee on Trade

Facilitation.

itll implement this agreement and coordination with the

international body

WTO will setup a Committee on Trade Facilitation

all members can participate

Itll will provide dispute settlement for violation of any

provisions under this agreement.

will elect its separate chairman

Will meet at least once every year, review agreement every four
years.

NATIONAL

INTERNATIONAL

Benefits of TFA:
A simplified customs clearance mechanism will boost international trade, and thereby it will

will increase in global GDP

will create more jobs

$1 trillion (~Rs 60 lakh crore)

21 million

Deadlines under TFA

deadline to sign TFA
2014, July, 31stBut India refused.
Agreement becomes effective from
2015
~280 words. But in exam, all points cant recalled so itll automatically FIT the 200 words
limit!

Why Modi opposed Trade Facilitation

Agreement
Q. Why has India refused to sign Trade Facilitation agreement? (200 words)

WTOs Trade Facilitation agreement (TFA) aims reduce the redtape and bureaucratic
hassles in customs clearance and thereby facilitate international trade.

But, TFA maintains that it doesnt diminish the rights and obligations of members
under other agreements of WTO.

For example, under the Agreement on Agriculture (AoA) if a developing country is

giving Amber box subsidies beyond 10% of its national agriculture production (base
year 1986), THEN other members will be justified in putting trade sanction or WTOcomplaint against the said country.

2013: In Bali Summit, the then UPA Government agreed to sign TFA, after WTO
Peace clause, which gave temporary exemption to developing countries from 10%
de-minimus provision until 2017.

2014: Change of regime,

Modi Government has refused to sign TFA before deadline (31st July 2014), because:
1. Once India has signed TFA, the developed countries may stonewall her demands for a
rational change in base year and ceiling limits on agro. Subsidies.
2. Then India will have to cut down agro. Subsidies in MSP and food security programs,
else theyll put sanctions on us, soon as Peace-clause temporary deadline is over in
2017!
3. And yet, well have to keep giving them easy customs clearance because we signed
the TFA!

Therefore, Government has decided to use TFA signature as a Bargaining Chip for a
permanent solution of food subsidies issue.
~220 words
Tags: EcoPill4-BoP, Rajtanil

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So far 170 Comments posted

1. Reply
SAKSHI
tropical savannah like African savanna llanos campos(sa), Carpentaria and nullarbor
(aus).
bsh like us prairies, pampas, aus downs and African veld
2. Reply
SAKSHI
grasslands devoid of shrubberies and trees they have perennial cover of grasses but
savannah are home to many tree varieties dominated by deciduous trees.
3. Reply
kirti dalal
plzzz help meif anybody has instructions along with admit card bcz i forgot to
download instructions plzzzz reply
1. Reply
AJ

Kirti, you can visit the upsc link (to download the admit card) again. It shows
the instructions first before proceeding to the admit card, even if you have
already downloaded the card.
4. Reply
Ageya
Plz help!!!
Two trains for Mumbai leave Delhi at 6am and 6.45am and travel at 100kmph and
136kmph respectively.how many kilometers from Delhi will the two trains be
together?
1. Reply
Maharaj
train 1 100 km/hr @ 6 AM
train 2 136 km/hr @6:45 AM
Relative speed = 136-100 = 36 km/hr
Train 1 at 6:45 AM would have already covered 75 km (100 * 45/60)
So this is the distance that train 2 has to cover with relative speed of 36 km/hr
So time taken by it in covering it = 75/36 = 2.0833hr = 125 minutes(multiply
by 60 for minutes)
So to calculate the distance at which they meet = take any trains speed and
multiply with 125 minutes
so lets take train 1: 100 km/hr for 125 minutes = 208.33
to this 208.33 km add 75 km as we took time after 6:45 AM(so we will have to
add distance traveled by train 1 in those 45 minutes) = 208.3+75 = 283.33 km
or simply calculate distance traveled by train 2 in 125 minutes = 136*125/60 =
283.33 km
1. Reply
Hriti
i think the simpler way wud be(no need to cal time and then dist)..
Let X be the dist wen they meet from Delhi..Train A travelled
X+75(Dist traveled from 6 am to 6.45 am) and train B travelled X dist,
so
X+75/100 = x/136
x=283.3 km
1. Reply

Maharaj
@Hriti
I was just explaining in very simple terms taking concept of
relative speed.
As per ur concept of time equality
If they meet at X Km distance
equation would be: (X-75)/100 = X/136 = 283.3 (as we are
equating the time since you have already taken X km as a
variable)
1. Hriti
yeah..i got ur intention of making it simple..
also..actually i solved it with equation X+75/136 =
X/100 , but while putting up here..i made it
incorrect..thanks for pointing out..
ur explainations are very good.
2. Ageya
Thnxzz @maharaj n @hriti
@maharaj how u know everything abt everything ????
amazed by ur knowledge n ofcourse ur initiative to
help everyone.
5. Reply
Mallikarjuna
Mrunal sir, it is said that De Minimus is the Minimal amounts of Amber box subsides
permitted by WTO. i.e., 10% is minimum. So, we can give more than 10% na?, then
whats the problem?. It should be maximum 10% allowed.
1. Reply
Ritu
Hi Mallikarjuna,
I think you missed within.
Article says as per the original Agreement on agriculture (AoA), the
developed and developing countries have to keep their Amber box subsidies
within De-minimus level i.e. 5% and 10% of their agriculture production in
1986-88 respectively.
5% and 10% are the limits within which subsidies are permitted.
Read it again for better understanding.
Thanks

1. Reply
Mallikarjuna
Thanks for ur reply. I understood the concept-it is within 5% & 10%,
but under the subheading Amber box: De Minimus limits of the
article it is given that De Minimus is the Minimal amounts of Amber
box subsides permitted by WTO, which implies 10% is min limit (but
actual is up to 10% or max 10%)
6. Reply
ABC
Hi .. pls explain the below question:
Q. Consider the following data table. Which statement best explains the climate
variation between these two cities?
LOCATION MAX TEMP(F) MIN TEMP(F) MEAN ANNUAL PRECIPITATION(in)
MEAN ANNUAL SNOWFALL(in)
CITY A 110 -36 23.8 31.9
CITY B 90 -19 38.2 92.9
a) City A and city B are located at the same longitude
b) City A is located at a high elevation,and city B is located at Sea level
c) City A is located far inland, city B is located near a large body of water
d) City A is located on the east coast, and city B is located on the west coast
1. Reply
Biswajit
Loking at the annual range of temp we can say the weather of A is of
continental type with low pecipitation. for B the annual range is less and
rainfall is high due to influnce of ocean or alrge water body .. So My answer
would be C
7. Reply
Ayan
Hehe Mrunal i must say that the pics of Gangajal are very pertinent in all the places u
have used themfunnyi especially liked the life expectancy one:D
8. Reply
abhineet

hi mrunal
please explain the blue box subsidy and De-minimus quota ill effects for india.i could
not understand both the concepts.
9. Reply
amit
Q: In a test, a student attempted only six questions and having got full marks for each
question, secured 40% marks in the test. how many questions did he not attempt?
3 , 6 , 9 , 12
how to solve this kind of qusn?
1. Reply
VINAY
@ AMIT
1. Reply
VINAY
for getting 40% u need 2 get 6 ques
for 100% =100*6/40=15
so total 15 q,u answered 6,remaining 9
1. Reply
Maharaj
@VINAY
just a query since ur here
is right to food a fundamental right or has it been converted to a
legal right after food security act
as SC takes right to food as incorporated in right to live
under article 21
1. B+ve
Right to food is out of many, one of the liberal
interpretation of Art. 21 by Supreme court after Maneka
case(1978), but using this interpretation, no one can
drag the govt. in court and that is why supreme court
order(only) to the govt release the food grain which is
rotting in go-down and govt places many reasons so
then how a govt would be punished? This matter also
falls welfare of people under Directive principle of state

policy where govt is punished through election.

Now this right to food gets legal feather so supreme
court able to drag govt/their functionaries into court
room and ask you will be punished latter through
election thats sure but today Im going to punish you
and that is why often supreme court ask enact the law
regarding night shelter to punish on deficiencies
Hope it would work,
Cheers!
2. Maharaj
@B+ve
Yes i was kind of thinking this only.
These interpretations made by SC on Fundamental
rights are in a right direction to make DPSPs justiciable
as our constituent assembly members wanted it.
Thanx a lot for confirming !!
Best of luck..!!!
2. Reply
amit
thanks vinay..bdwy..got the ansr with the same strategythnks
anywaygud luck for prelims.
3. Reply
Nirav
Dont we need one condition to conclude this answer that all the
questions carry equal weightage of marks?
10. Reply
vinayRana
Guys just help how to calculate that when a calander will repeat. For example 1992
11. Reply
sneha
thanks sir
12. Reply
Nameless

Six bells commence tolling together and toll at intervals 2,4,6,8,10 and 12 seconds
respectively. In 30 minute?
Four bells begin to toll together and then each one at intervals of 6 s, 7 s, 8 s and 9 s
respectively?
13. Reply
abhilakshya
what is the difference between balance of trade and trade balance ncert class 12
microeconomics says trade balance is just difference between export and import of
goods.
1. Reply
vinay kumar
start with Current Account of BOP:
Current a/c Balance=Balance of trade in goods(BOTg)+Balance of trade in
services(BOTs)+ Payment Transfer
if it is not mention whether it is for goods or services then it is taken for goods
and it also called trade balance
means Balance of trade in goods=balance of trade=trade balace
14. Reply
B+ve
PLS publish the remaining article..
15. Reply
Joy
Can someone please provide a link for the list of endangered species in India as well
as IUCN red list
16. Reply
Nikhil
guys do go through these 100 mock questions on polity which were posted by Mrunal
last year, will help a lot in revision
http://mrunal.org/2013/05/polity-100-mock-mcq-questions-from-the-static-portionconstitution-of-india.html
Mrunal are you going to post similar mock this time too or too busy with eco survey?

17. Reply
Optimus
I think it would be advisable for bloggers to comment/upload their
queries/doubts/confusions as per the subject matter. If its related to CSAT 2, post it
under the relevant topics under the CSAT article which Mrunal has listed. If it is
Polity, post it under the relevant polity articles and so on. And with this WTO topic,
let comments be related to WTO and related matters, that way discussions can be held
if required and it would be more organised. Anyhow, its just a suggestion since i find
it distracting to see unrelated comments when i scroll down to see if there has been
any supplementary information added by bloggers.
Big thanks again to Mr. Mrunal.
18. Reply
Gayathri
Hello sir,
Ive a question here. When the present De-minimus quota for developing nations is
already 10%, why should we fight for the limits agreed under AoA?
so, is it like, India wants to provide subsidy beyond 10% quota with a revised base
year or the WTO wants us to cut down subsidy level to less than 10 % with existing
base year?
Thanks
1. Reply
Ritu
Hi Gayathri,
I can explain what I understood.
Actually 10% limit is based on 1986-88 but inflation rate increased manifold
since then in India. As India may exceed this limit under NFSA therefore,
India wants WTO to raise the % limit with same base year.
Hope this will help.
Thanks
2. Reply
Nikhil
let MSP which india give for wheat = $10 per tonne
let Fixed external reference price (world market price)(1986-88 levels) = $1
per tonne
let Domestic production of wheat = 100 tonnes

Wheat Aggregate measure of support

($10$1) x 100 tonnes = $900
this $900 should be under 10% of total production limit which is less likely
had the external refernece price been set for suppose year 2000 when the
market price of wheat was suppose $5 per tonne than AMS would have been
($10-$5)*100 = $500 which is more likely to be under 10 percent of total
production
all figures are hypothetical.
19. Reply
manisha
How many biodiversity hotspots r there in India?? 2 or3 ..western ghats , n-e
himalayas??
1. Reply
vk
@ manisha.3 biodiversity hotspots are there in India
1. Western ghats
2. north east Himalaya
3. Indo-Malaya..A & N islands considered as a part of this biodiversity
hotspot
1. Reply
manisha
Thanx a lot vk
2. Reply
Ritu
Hi Manisha and VK
As per my update there are 36 biodiversity hot spots in the world out of which
4 are in India.
1. Eastern Himalaya
2. Western Ghats
3. Hilly areas of Indo-Mayanmar border
4. Gulf of Mannar
Among these, 2 are critically threatened:
Eastern Himalaya
Western Ghats

Hope this will help. If there is any correction please share

Thanks
1. Reply
manisha
Thanx Ritufor making it clear
1. Reply
V
There are 34 biological hotspots. India has 3:
1. Eastern Himalaya
2. Indo-Burma
3. Western Ghats and Sri Lanka.
1. SAKSHI
There are 4 hotspots in south asia, in india there are two
biological hotspots.
20. Reply
sanat
Is kaveri a perennial river ?
1. Reply
Tinkusrinivas
Strickly speaking it is not perennial.but generally in some books they refer
it as a perennial as it gets rain during two seasonsone during south west
monsoon.and other during north east monsoon.
2. Reply
Tinkusrinivas
Another logic is if it is perennial why so much fight between karnataka and
tamil nadu for its water;)
1. Reply
Nikhil
I guess applying logic in such depth prove more harmful than
beneficial in UPSC pre examination,it has been proven in past , if they

are asking about perenniality of Kavery than obviously they are asking
it because it has something which is an exception otherwise every one
know that peninsular rivers are not perennial in general. and about
the fight between states .even india bangladesh and india pakistan
are also fighting and that too over perennial rivers , !!!
1. Reply
Tinkusrinivas
Cool dude..obviously its a debatable topicand thats the
reason i mentioned strickly speakingdont go by majid
hussain or saddam hussain in such depth it might be more
harmful than beneficialif upsc asks about perenniality of
kaveri doesnt mean it is perennialur logic is more dangerous
than mine.;)
Official link..for ur info
http://india-wris.nrsc.gov.in/wrpinfo/index.php?title=Cauvery
3. Reply
Nikhil
Kaveri is a rain fed parennial river because its drainaige recieve water from
rainfall both in summer and winter monsoon, refer Majid Hussain Geography
of India
1. Reply
Hriti
read Indian geography ncert its mentioned that its perennial..
1. Reply
Nikhil
@hriti I am also saying that its parennial and was not able to
find anything about perenniality of Kaveri in tinkusrinivas link
instead it says that the tributaries of kaveri hemavathi and
kabini are perennial rivers .and @tinkusrinivas its good that
you rely more on authentic govt sources but plz dont mock a
respected teacher I have read geography from his book only
and respect him a lot newys peace

1. TS

Nikhil
See buddy i have not come across any where about
perenniality of kaveri explicitlyif u have any
authentic ( govt source ) please do tell me.in that link
also they have not mentioned it explicitlyso just
chilln sorry if i hurt ur feelings..
21. Reply
Ahmad Nafees
Please update about India-Israel foreign policy.
22. Reply
arun
thanks rahul
23. Reply
keshav
sir mujhe ye samajh nhi aya ki 10% of production ar subsidy me kya relation hai?and
how is it related to msp?
plz help..
1. Reply
keshav
one more thing.. why the year is 1986-88? why ot some other year?is there ant
reason for it?
24. Reply
biswajit
which one is not liquid financial asset ?
time deposit
demand deposit
currency in circulation
foreign aid
a or d ?
1. Reply
Hriti

Time deposit are basically fixed deposit, and can not be withdrawn anyday
hence less liquid. So its d.
1. Reply
Nikhil
your explanation is correct but the answer will be a read his question

1. Reply
chaitanya
Time deposit, DD, CU are parts of aggregate money supply and
hence are liquid assets. So option D is the most likely answer.
1. Maharaj
@Chaitanya
Regarding Foreign aid
It comes in form of Internationally recognized
currencies ( such as dollars or euros or yen)
it is the most liquid asset in a country after a countrys
domestic currency.
its swapping mechanism with banks are most easiest of
processes.
So its a highly liquid asset with government to deal
internationally and domestically also
25. Reply
mnu!!
can any one tell simplest way to solve the x vs y questions.
a linear graph is gvn we hav to match the relation with the graph and findout the crrct
option gving said relation.
1. Reply
Nikhil
a linear graph will always be of a linear equation that is y=mx +c just learn the
shape of logarithmic ,exponential,cubic (y = x^3) and square polynomial (x =
y^2) and you will be able to answer the question
1. Reply

mnu!!
thnx bro googled it and learned the equation,thnx a lot.
26. Reply
Hriti
hey does anyone has instructions page which we need to carry with hall ticket?
Plz share..
1. Reply
Nikhil
http://upsconline.nic.in/eadmitcard/instructions.php
1. Reply
Mama
Do we have to carry it to the exam hall? Nothing is mentioned on
admit card as such. While downloading admit card, we were just asked
to download the instructions (no mention of CARRYING it).
1. Reply
Nikhil
no need to carry it
1. Gayathri
Guess we need to carry it
IT IS MANDATORY FOR THE CANDIDATE TO
TAKE PRINT OUT OF IMPORTANT
INSTRUCTIONS TO THE CANDIDATE BEFORE
DOWNLOADING THE E-ADMIT CARD AND
BRING THE SAME ALONG WITH THIS eADMITCARD TO BE PERMITTED TO ENTER THE
EXAMINATION HALL
@ Hriti thanks, I wouldve missed it
2. Tinkusrinivas
Yes it is mandatoryif its not mandatory also i will
take atleast i can use as a rough paper;)

3. NIk
its mandatory, need to carry
4. Nikhil
@gayathri @hriti thanks for pointing that out, would
have missed it and sry for above comment

2. Reply
Hriti
Thanks Nikhil.
i dont think we have time to discuss over it. Just take the print and
take..no penalty in doing that..
2. Reply
neeraz
no need to carry it.
27. Reply
prakash kumar
Those who are appearing for prelims CSE 2014 on 24th aug 2014 ..Important
instructions has been uploaded on UPSC website http://www.upsc.gov.in/
http://www.upsc.gov.in/exams/misc/2014/CSP_2014/Press_note_Eng_CSP_2014_21
Aug.pdf
Regarding English passage questions not to be attempted ..whose english translation
is not given ..
28. Reply
Arpit Gupta
Sir,
very informative articles posted by you but if the posted articles are pre-set for
printing on A4 size sheet or if it can be available for download in pdf file format set
on A-4 size sheet then it will be great. I tried all possible combination of A4-Legal
size/margin width/page layout to get print out but at some point or other the text was
half printable on any given page.please sir, do look into it as after a particular time
your eyes get strained by working on computer.A hard copy is the best way to be
accessible to the topic at any time.

29. Reply
lockthat1
in the sub heading why india is opposed- Input costs have skyrocketed in these
decades. But, De-minimus doesnt consider inflation factor.
But in the calculation of AMS inflation is considered.. please correct me if i am
wrong
30. Reply
sourabh pandey
What kind of action can WTO takes if India denies to sign on TFA ,or what India will
suffer by WTO now when India already raise voice to change of base year and for
minimal subsidies.
31. Reply
Abhijit Roy
Are 3 months enough for Mains preparation if i have not prepared anything before
prelims? Please guide Mrunal Sir
1. Reply
shilpa
Yes very much. Just give ur 100%.
32. Reply
ABHISHEK
can any one help me out for statement assumption implication type question being
asked in po exam or please send me a pdf link regarding this or tell about boot thats
must be refferd,please help me out i am in need of this topic
33. Reply
Pavithra Maduram
Hi ! What are the intangible cultural assets in India (notified by UNESCO) ?
34. Reply
praveen
Gajab sir ! Thank you

35. Reply
lockthat1
in the sub heading why india is opposed- Input costs have skyrocketed in these
decades. But, De-minimus doesnt consider inflation factor.
But in the calculation of AMS inflation is considered.. please correct me if i am
wrong
36. Reply
vinod
thanks a lot mrunal , the above information is very easy to to understand..
37. Reply
ANVIT Agarwal
@Mrunal -Really helpful article.
I would like to add few points.
1) In the peace clause agreement , it only covers agreement on agriculture so no one
can take India to Dispute Settlement mechanism, but India could be dragged to DSM
for violating Subsidies and countervailing mechanism (SCM)
2) Peace Clause was provided in 1994-95 when WTO was established , at that time
US and EU get 10 yr period relaxation, Why India and other emerging economies got
only 4 years?
3)Under Green Box, USA gives $120 billion out of $130 billion of its food security
programmes which is not correct ,also USA provide Incorrect data for its trade
distorting subsidies to WTO.
4) As mentioned in the articles, US major subsidies are export subsidies i.e for cotton,
soyabean, meat etc while India procures food for its poor.
P.S : please refer http://triplecrisis.com/?p=8920 THE HYPOCRISY CLAUSE.
38. Reply
srinu
thanks sir for given detailed information on this topic
39. Reply
Sourabh pandey
Mrunal Sir nobody has given me the answer which I had asked two months back ,now
again I m putting those question. Qus1. What will happen if India wont be ready to
sign after the given ultimatum by WTO after 2017. Secondary why WTO members
are not ready to change the base year 1986-87 production even they might aware that
there is lot of changes happened in economy since 1986-87.

1. Reply
Chirkut
First Thing first
1. WTO is an organisation which works by consensus(which largely explains
its inability to realize its vision-to make world trade barrier free)
you need to realize that it is not only India .In fact Indonesia
(Soybean),Thailand(Rice) ,China(Cotton) etc has similar problems.So they
formed a league(recall G-33)
Coming to your problem specifically nothing new as it seems is going to
happen in future.There are chances that deadlock will continue or in the
meantime solutions through mutual concessions have to be worked out.As said
WTO is a consensus organisation so everyone has to agree for new deal but
yes bilateral rifts seems more imminent in near future
2. Second question can be answered by common mathematical sense.I mean
what actually is subsidy it is just difference in the current price minus base
price which subsequently multiplied by amt produced in current year
Now according to developed world there is not much overall change in base
price as inflation in developed world is too low,but going by Indias stand the
price have undergone dramatic change so on average there is case for early
revision.But we are at the same place by going whole circle-Yes,WTO is a
consensus organisation
Now the question is why Developed countries not want revision to happen?
Think over it !!!!!!
40. Reply
amit
thanks a lot
41. Reply
pawan
So what is the solution? I think WTO should revise the agreement which would be
something like:
For any member country x, the cap should be specifically calculated using its
average inflation rate, with the base year same as before..
So, suppose the inflation factor in US is say,3.. Then the cap would be 3*some
constant. Inf factor in India is say,15.. Then the cap would be 15*the constant

 I went too deep M the next Azevdo.

42. Reply
chander shekhar
1.sir what is relation between MSP and ERP(external reference price) and how ERP is
decided by WTO.
2. I think developed country is giving subsidy more then 5% then how can they
presser on India to reduce subsidy by 10%.
43. Reply
Shashank Vajpayee
What is the main fact of 1991 economy? and how indian economy was damage?
44. Reply
Kirti shekhar
sir, please write about the recent WTO summit, nairobi. plzzzzzzzzzz sir plzzzzzz

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