Current Affairs 7 June 2021 – IAS Current Affairs

Current Affairs 7 June 2021  focuses on Prelims-Mains perspective. Major events are :

1. US Suspends Retaliatory Tariffs Against India
2. Project 75I (India)
3. Chemical Weapons Used By Syria
4. Fugitive Economic Offenders and Assets
5. Performance Grading Index (PGI)

US Suspends Retaliatory Tariffs Against India

Source : Economics Times
GS III : Indian Economy

Why in News ?

US Trade Representative announced on June 2 the plan for the 25 per cent increase in the tariffs on 26 items from India. Now it decided to hold the hikes till December.

Key Facts

• Background
  • India impose Digital Services Tax (DST) on tech giants.

    

    • A two per cent tax starting in April last year on earnings in the country by foreign technology and e-commerce companies like Amazon, Facebook and Google.
  • This was opposed by the administration of former President Donald Trump, and Biden has picked up the baton.
  • India’s DST is unreasonable or discriminatory and burdens or restricts US commerce.
  • Estimates indicate that the value of the DST payable by US-based company groups to India will be up to approximately $55 million per year.
• Other nations imposing DST.
  • United Kingdom, Austria, Italy, Spain and Turkey
• US threatened to increase duties include bamboo, window shutters, cigarette papers, pearl, copper foil and bedroom furniture.
  • This retaliatory tax aims for the international negotiations on taxation.
• India retaliated with higher tariffs on 28 US products that included walnuts and almonds.

What is Retaliation Tarrifs and Trade Wars ?

• What is tarrifs ?
  • It is a tax.
  • It adds to the cost borne by consumers of imported goods a country can enact.
  • This taxes owed on imports are paid by domestic consumers and not imposed directly on the foreign country’s exports.
  • It is mostly to make foreign products relatively more expensive for consumers than a domestic products.
• Why tariffs are imposed ?
  • To protect domestic industries
  • For Protecting Consumers
  • In order to boost domestic employment
  • Protecting competitive domestic infant industries
  • Reduce drain of economy and national security
  • Retaliations
• What is Retaliatory Tariffs ?
  • Countries set tariffs as a retaliation technique if they think that a trading partner has not played by the rules. 
  • For instance consider India put a tariff against a product from United States in the view to protect/reducing economic drain for beyond an expected time.
    • US at the same time imposes a higher tariffs to the import of other products from India as a retaliatory measure or for negotiations.
  • Also this type of Tariffs can be imposed when trading partner goes against the government’s foreign policy objectives of importing country. 
• What is the impact of Retaliatory Tariffs ?
  • Domestic industries benefit from a reduction in competition as import prices are artificially inflated.
  • For consumers and businesses this higher import prices means higher prices for goods.
  • It support the domestic Industries but negatively affected Consumer.

World Trade Organisation and Tariffs

• With the introduction of international organizations designed to improve free trade tariffs has declined.
• Countries have shifted to non-tariff barriers such as quotas and export restraints.
  • An import quota is a restriction placed on the amount of a particular good that can be imported.
  • Voluntary Export Restraints : Created by the exporting country rather than the importing one.
    • For Instances India placed export restrains on a product exporting from US in line with a request from US then US place restraints on exportation of other product to India.
• Apart from WTO Multilateral Agreements between governments increase the likelihood of tariff reduction.

Project 75I (India)

Source : The Hindu
GS III : Various Security forces and agencies and their mandate

Why in News ?

Defence Acquisition Council (DAC) headed by Defence Minister Rajnath Singh cleared the acquisition of six Project 75 ‘India’ class submarines for the Indian Navy.

Key Facts

• The deal aims to give the navy a fleet of modern conventional submarines with greater endurance and capabilities than the present one.

  

• India’s submarine fleet is ageing the bulk of its 15 boats are over 25 years old.
• Need for Acquisition
  • India is the world’s only major submarine-operating country that has not designed and built its own submarines.
  • Millions of dollars have been spent in obtaining submarine-building expertise from Germany, France and Russia.
  • India currently operates three different types of conventional submarines from Russia, France and Germany.
    • All three have separate training and spares and procurement.

Project 75I

• Project 75 (I) approved in 2007 is part of the Indian Navy’s 30 year Plan for indigenous submarine construction.
• Offers a chance to stabilise the entire submarine line on an in-service platform, whether French, Russian or German.
• P75I succeeded the P75 under which six diesel-electric attack submarines of the Kalvari class, based on the Scorpene class, were being built at MDL (Mazagon Dock Limited).
• P-75 ‘I’ contract will be placed on one shortlisted firm.

Chemical Weapons Used By Syria

Source : The Hindu
GS II : Important International institutions, agencies and fora- their structure, mandate

Why in News ?

Chemical Weapons Used By Syria : Organisation for the Prohibition of Chemical Weapons (OPCW) told the UN Security Council that its experts have  investigated 77 allegations against Syria, and concluded that in 17 cases chemical weapons were likely or definitely used.

Key Facts

• OPCW’s Investigation and Identification Team (IIT) issued its first report investigating the use of chemical weapons during Syria’s civil war.
• The presence of a new chemical weapons agent found in samples collected in large storage containers in Sept. 2020 from Syria.
• Chemical Weapons Used By Syria and its samples collected from the scene were analyzed for chlorine contamination.
• The use of any chemical substance in combat is prohibited by the Chemical Weapons Convention passed in 1997.

About Chemical Weapon

• Chemical Weapon is a chemical used to cause intentional death or harm through its toxic properties.
• Any equipment specifically designed to weaponize toxic chemicals also fall under the definition of chemical weapons.
• Chemicals used to produce chemical weapons (precursors) falls under chemical weapons.

Efforts against the use of Chemical Weapons

Chemical Weapons Convention

• Members:
  • It has 192 state parties and 165 signatories.

    

  • India is also a party in the treaty.
  • Syria was pressed to join the Chemical Weapons Convention in September 2013 by Russia.
• It is a multilateral treaty banning chemical weapons and requiring their destruction within the stipulated time.
• Convention aims to eliminate an entire category of weapons of mass destruction by prohibiting the development, production, acquisition, stockpiling, retention, transfer or use of chemical weapons by States Parties.
• States Parties must take the steps necessary to enforce that prohibition in respect of persons (natural or legal) within their jurisdiction.
• All States Parties have agreed to chemically disarm by destroying any stockpiles of chemical weapons.
• Challenge Inspection : State Party in doubt about another State Party’s compliance can request a surprise inspection.

Organisation for the Prohibition of Chemical Weapons (OPCW)

• Implementing body for the Chemical Weapons Convention.
• Headquarters: Hague, Netherlands.
• It have 193 Member States.
  • 98% of the global population live under the protection of the Convention
• It aims to permanently and verifiably eliminate chemical weapons.

Basel, Rotterdam and Stockholm Conventions (Hazardous Chemicals and Wastes)

• Multilateral environmental agreements, which share the common objective of protecting human health and the environment from hazardous chemicals and wastes.
• BASEL CONVENTION : Protect people and the environment from the negative effects of the inappropriate management of hazardous wastes worldwide.
• ROTTERDAM CONVENTION : Prior Informed Consent Procedure for certain hazardous Chemicals and Pesticides in international trade provides Parties with a first line of defence against hazardous chemicals.
• STOCKHOLM CONVENTION : Global treaty to protect human health and the environment from highly dangerous, long-lasting chemicals by restricting and ultimately eliminating their production, use, trade, release and storage.

Fugitive Economic Offenders and Assets

Source : PIB
GS II : Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests GS III : Money-laundering and its prevention

Why in News ?

Recently India called for a strong and aligned international cooperation on a serious emerging challenge of Fugitive Economic Offenders and Assets which flee across national jurisdictions.

• While addressing the United Nations General Assembly (UNGA) Special Session on Challenges and Measures to fight Corruption.

Key Facts

• Need the return of persons and assets sought for such offences, consistent with international obligations and domestic legal systems.
• The accused take shelter in foreign countries and conceal the proceeds of crime in complex legal structures spread over different countries and jurisdictions
• The gaps and weaknesses of international cooperation in this area are fully exploited by such fugitives to their advantage.
• Further strengthen UN Convention against Corruption (UNCAC) adopted by the General Assembly through resolution 58/4 in 2003.

India’s Fugitive Economic Offenders Act 2018 law

• The Bill allows for a person to be declared as a fugitive economic offender (FEO)
• What are the conditions for declaring a fugitive offender ?
  1. An arrest warrant has been issued against him for any specified offences where the value involved is over Rs 100 crore
  2. He has left the country and refuses to return to face prosecution.
• Procedure for declaration
  1. Application will be filed in a Special Court (designated under the Prevention of Money-Laundering Act, 2002) containing details of the properties to be confiscated, and any information about the person’s whereabouts.
  2. The Special Court will require the person to appear at a specified place at least six weeks from issue of notice.
  3. Proceedings will be terminated if the person appears.
  4. Bill allows authorities to provisionally attach properties of an accused, while the application is pending before the Special Court.
• What happen for an FEO ?
  • Properties of a person may be confiscated and vested in the central government, free of encumbrances (rights and claims in the property).
  • The FEO or any company associated with him may be barred from filing or defending civil claims.

Corruption issues and laws in order to tackle Corruptions

Ministry of External Affairs stated that over 30 businessmen, under investigation by the CBI and the Enforcement Directorate had absconded to avoid facing prosecution before Indian courts.

Law against corruptions

1. Prevention of Money-Laundering Act (PMLA)
2. Benami Properties Transactions Act, 1988
3. Companies Act, 2013 which punishes fraud and unlawful acceptance of deposits
4. Indian Penal Code, 1860 and the Code of Criminal Procedure, 1973

Performance Grading Index (PGI)

Source : PIB
GS II : Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources

Why in News ?

Union Education Minister approved the release of Performance Grading Index (PGI) 2019-20 for States and Union Territories of India today.

Key Facts

• PGI for States and Union Territories was first published in 2019 with reference year 2017-18.
• The PGI States/UTs for 2019-20 is the third publication in this series.
• Third year in a row, none of the states or Union territories reached Level-1.
• The PGI exercise envisages that the index would propel States and UTs towards undertaking multi-pronged interventions that will that will bring about the much-desired optimal education outcomes.
• The PGI helps the States/UTs to pinpoint the gaps and accordingly prioritise areas for intervention to ensure that the school education system is robust at every level.

Performance Grading Index (PGI) Details

• Most of the States/UTs have improved their grade in PGI 2019-20 compared to the earlier years.

  

• Punjab, Chandigarh, Tamil Nadu, Andaman & Nicobar Islands and Kerala occupy the highest grade (Grade A++) for 2019-20 at Level 2.
  • A score between 901 to 950 on a scale of 1,000.
• Seven regions, including Delhi, Maharashtra, Haryana, Gujarat, Puducherry, Himachal Pradesh, and Dadra and Nagar Haveli, scored 851-900, coming in Level-3.
• Access : Andaman & Nicobar Islands, Arunachal Pradesh, Manipur, Puducherry, Punjab and Tamil Nadu have improved overall PGI score by 10%, i.e., 100 or more points.
• Equity : Arunachal Pradesh, Manipur and Odisha have shown more than 10% improvement in the PGI domain.
• Governance Process : Nineteen States and UTs have shown improvement by 10% (36 points) or more in the PGI domain.
  • States such as Nagaland and Chhattisgarh which have scored less than 50%.
• Infrastructure and Facilities : As many as thirteen States and UTs have shown improvement by 10% (15 points) or more in the PGI domain. 
  • Bihar and Meghalaya, recorded the lowest scores in the infrastructure and facilities domain.

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