Upcoming Mentoring Sessions
Mentoring Session (2024-25) - How to Make Notes?
RMS - Polity - Judiciary 1
General Mentoring Session
RMS - History - Constitutional Developments - Important Acts in British India
RMS - Ancient History - Buddhism and Jainism
RMS - Economics - Human Resource and HRD
RMS - History - Ancient India - Mahajanpadas
RMS - Economics - Balance of Payment and Foreign Trade
Mentoring Session (2024-25) – How to Read and Analyse Newspaper?
Mentoring Session (2024-25) - How to write an Answer?
RMS - Economics - Money and Banking-I
Article
28 Mar 2024
WTO’s Investment Facilitation Negotiations Are Not Illegal
Context
- The 13th Ministerial Conference (MC13) of the World Trade Organisation (WTO) in Abu Dhabi witnessed a significant development with the non-adoption of the agreement on investment facilitation for development (IFD).
- Despite considerable support, including from around 120 member countries, the IFD Agreement faced opposition, notably from India and South Africa.
- Amid these developments, it is important to understand India's stance against the IFD Agreement and concerns regarding its compatibility with WTO principles, particularly regarding the nature of investment within the realm of trade and the process followed in negotiating the agreement.
Understanding the IFD Agreement
- Despite opposition from countries such as India, negotiations for an IFD agreement at the WTO were launched in 2017 on a plurilateral basis by 70 countries.
- This was done through a process known as the Joint Statement Initiative. The IFD agreement was finalised in November 2023.
- Today, around 120 of 166 WTO member countries (more than 70% of the membership) back the IFD agreement.
- This agreement aims to create legally binding provisions to facilitate investment flows.
- The IFD Agreement, among other things, will require states to augment regulatory transparency, and streamline administrative procedures to bolster foreign investment inflows.
- Importantly, this agreement does not contain provisions on market access, investment protection, and investor-state dispute settlement (ISDS).
- ISDS, which allows foreign investors to bring treaty claims against the state admitting investment, has been a contentious issue in recent years.
Reason Behind India’s Opposition to IFD Agreement
- Given the existing structure of the WTO’s dispute settlement mechanism, where only states can bring legal claims against other states, it is implausible that ISDS can be a part of it.
- India and South Africa played a crucial role in not letting the IFD agreement become a part of the WTO rulebook.
- India does not seem to be exceedingly concerned about the text of the IFD agreement.
- Instead, India’s principal concerns are twofold. First, the question of whether investment can be part of the WTO. And second, the process followed to make the IFD agreement a part of the WTO rulebook.
India’s Concerns with IFD Agreement at WTO’s 13th Ministerial Conference (MC13)
- Investment and its Relationship with Trade
- India’s Stance Challenges the Rethinking of Investment-Trade Nexus
- India's contention regarding the relationship between investment and trade reflects a nuanced understanding of the evolving dynamics shaping international commerce.
- While traditional economic perspectives often portray investment and trade as inherently intertwined, India's stance challenges this conventional wisdom by highlighting the diverse nature of investment activities and their implications for cross-border trade.
- The Proposed Role of Investment in Global Economics
- At the heart of India's argument lies the recognition that investment, though integral to global economic activities, does not always lead to the immediate facilitation of cross-border trade.
- Unlike trade in goods and services, which involve the exchange of tangible or intangible products, investment encompasses a broader spectrum of activities, ranging from capital injections into foreign enterprises to the acquisition of assets in overseas markets.
- These investment activities may not always result in immediate trade flows, especially in cases where investments are made for strategic or long-term purposes, rather than for the explicit purpose of engaging in trade.
- Linkage of Global Value Chains and Investment-Trade
- Furthermore, India points to the complexities of global value chains (GVCs) to underscore the multifaceted nature of investment-trade linkages.
- While it is undeniable that GVCs rely on both trade and investment to facilitate the seamless movement of goods and services across borders, India argues that the relationship between the two is not always straightforward.
- Investment in GVCs often serves to enhance production efficiencies, reduce costs, and access new markets, but may not necessarily translate into direct trade activities.
- Particularly in cases where intermediate inputs are destined for domestic consumption or further processing within the host country.
- Concerns with the Process of Negotiating the IFD Agreement
- Procedural Concerns in IFD Agreement Negotiations
- India's opposition to the IFD Agreement also encompasses procedural concerns regarding the negotiation process.
- India asserts that there was no mandate for conducting negotiations on investment within the WTO framework.
- This assertion is grounded in previous WTO decisions, such as the 2004 General Council decision, which excluded discussions on trade and investment from the Doha Round of negotiations.
- India contends that this decision implicitly signalled a reluctance to engage in negotiations on investment-related matters within the WTO framework.
- Consensus Requirement and Legitimacy of Negotiations
- Moreover, India points to the consensus requirement for launching multilateral negotiations on new issues, as outlined in the 2015 WTO Nairobi ministerial decision.
- This decision emphasised the necessity of unanimous agreement among WTO members to initiate negotiations on novel topics.
- India argues that since there was no consensus among all members to launch negotiations on an IFD Agreement, the subsequent negotiations and the text that emerged are legally questionable.
- Upholding WTO Integrity and Transparency
- India's objection raises fundamental questions about the legitimacy of negotiating agreements outside the established framework of WTO mandates.
- By invoking past decisions and procedural requirements, India underscores the importance of adhering to established norms and principles in shaping global trade governance.
- This stance reflects India's commitment to upholding the integrity of the WTO's decision-making processes and ensuring that negotiations are conducted transparently and inclusively.
- Scope and Mandate of WTO Negotiations
- Furthermore, India's concerns extend beyond mere procedural objections to broader questions about the scope and mandate of WTO negotiations.
- India contends that discussions on investment-related matters were explicitly excluded from previous rounds of negotiations, suggesting a reluctance among members to address such issues within the WTO framework.
- This reluctance underscores the need for clarity regarding the scope of WTO negotiations and the parameters within which member states can engage in discussions on novel topics.
- Procedural Concerns in IFD Agreement Negotiations
Conclusion
- India's opposition to the IFD Agreement at the WTO reflects broader debates surrounding the intersection of investment and trade, as well as procedural intricacies within the organisation.
- While concerns regarding the nature of investment and the negotiation process are valid, reconciling divergent perspectives is essential for fostering consensus and advancing global trade governance.
- As the WTO seeks to navigate evolving trade landscapes, engaging constructively with initiatives like the IFD Agreement can contribute to revitalising its legislative function and addressing contemporary trade challenges.
Editorial Analysis
Current Affairs
March 28, 2024
Afanasy Nikitin Seamount
India recently applied to the International Seabed Authority (ISBA) for rights to explore two vast tracts in the Indian Ocean seabed, including a cobalt-rich crust long known as the Afanasy Nikitin Seamount (AN Seamount).
About Afanasy Nikitin Seamount:
- The AN Seamount is a structural feature in the Central Indian Basin, located about 3,000 km away from India’s coast.
- It comprises a main plateau, rising 1200 m above the surrounding ocean floor (4800m). It is rich in deposits of cobalt, nickel, manganese, and copper.
What is a Seamount?
- It is an underwater mountain formed through volcanic activity. These are recognised as hotspots for marine life.
- Like volcanoes on land, seamounts can be active, extinctor dormant volcanoes.
- These are formed near mid-ocean ridges, where the earth’s tectonic plates are moving apart, allowing molten rock to rise to the seafloor. The planet’s two most-studied mid-ocean ridges are the Mid-Atlantic Ridge and the East Pacific Rise.
- Some seamounts have also been found near intraplate hotspots—regions of heavy volcanic activity within a plate—and oceanic island chains with volcanic and seismic activity called island arcs.
- Significance of seamounts:
- They provide information about the mantle’s composition and how tectonic plates evolve.
- These are helpful in understanding their influence on how water circulates and absorbs heat and carbon dioxide.
- They are good places for life because they can cause localised ocean upwelling, the process by which nutrient-rich water from deep within the ocean moves up to the surface.
Geography
Current Affairs
March 28, 2024
What is Solar and Heliospheric Observatory (SOHO)?
Recently, a citizen scientist spotted a comet in an image from the Solar and Heliospheric Observatory (SOHO) spacecraft.
About Solar and Heliospheric Observatory (SOHO):
- It is a project of international collaboration between the European Space Agency (ESA) and the U.S. National Aeronautics and Space Administration (NASA). It was launched in December 1995, SOHO was designed to study the Sun.
- In order to provide continuous observations, it was maneuvered to orbit the first Lagrangian point (L1), a point some 1.5 million km (900,000 miles) from Earth toward the Sun where the gravitational attraction of Earth and the Sun, combine in such a way that a small body remains approximately at rest relative to both.
- It carries 12 scientific instruments to study the solar atmosphere, helioseismology and the solar wind.
- Though its mission was scheduled to run until only 1998, it has continued collecting data, adding to scientists' understanding of our closest star, and making many new discoveries, including thousands of comets. It is the longest-lived Sun-watching satellite to date.
Science & Tech
Current Affairs
March 28, 2024
South East Africa Montane Archipelago (SEAMA)
A recent study in southern Africa has unearthed a wealth of previously undocumented biodiversity in a newly recognised ecoregion called the South East Africa Montane Archipelago (SEAMA).
About South East Africa Montane Archipelago (SEAMA):
- It is a newly recognised mountainous ecoregion. It stretches across northern Mozambique to Mount Mulanje in Malawi, southern Africa’s second-highest mountain.
- The ecoregion encompasses 30 granitic inselbergs reaching > 1000 m above sea level, hosting the largest (Mt Mabu) and smallest (Mt Lico) mid-elevation rainforests in southern Africa, as well as biologically unique montane grasslands.
- SEAMA has distinctly higher annual rainfall and humidity, especially in the dry season, compared to surrounding regions.
- Since 2000, the SEAMA has lost 18% of its primary humid forest cover (up to 43% in some sites)—one of the highest deforestation rates in Africa.
- The major cause of montane forest loss in SEAMA is slash and burn shifting agricultural practices, typically used for subsistence food production by local communities, along with charcoal production, for household cooking, and as a source of revenue.
What are Inselbergs?
- Inselberg, or Monadnock, is an isolated, steep-sloped ridge, hill, or small mountain that stands above well-developed plains. It appears like an island rising from the sea.
- Inselbergs are generally erosional remnants. Often, inselbergs are composed of harder igneous rock (such as granite) that is more resistant to erosion. However, inselbergs may also form in sedimentary rocks.
- These structures are one of several varieties of landforms called paleoforms that can survive with little modification for tens of millions of years.
- In inselberg landscapes, the active erosional processes are confined to valley sides and valley floors.
Environment
Current Affairs
March 28, 2024
What is Polar Vortex?
The polar vortex circling the Arctic is swirling in the wrong direction after surprise warming in the upper atmosphere triggered a major reversal event recently.
About Polar Vortex:
- The polar vortex is a large area of low pressure and cold air surrounding both of the Earth’s poles. It weakens in summer and strengthens in winter.
- The term "vortex" refers to the counter-clockwise flow of air that helps keep the colder air near the poles.
- Many times, during winter in the northern hemisphere, the polar vortex will expand, sending cold air southward with the jet stream.
- This occurs fairly regularly during wintertime and is often associated with large outbreaks of Arctic air in the United States and Canada.
- Portions of Europe and Asia also experience cold surges connected to the polar vortex.
- The polar vortex extends from the tropopause (the dividing line between the stratosphere and troposphere) through the stratosphere and into the mesosphere (above 50 km).
- Low values of ozone and cold temperatures are associated with the air inside the vortex.
Key Facts about Jet Streams:
- Jet streams are narrow bands of strong wind that generally blow from west to east all across the globe.
- Earth has four primary jet streams: two polar jet streams, near the north and south poles, and two subtropical jet streams closer to the equator.
- What Causes Jet Streams?
- Jet streams form when warm air masses meet cold air masses in the atmosphere.
- The sun doesn’t heat the whole earth evenly. That’s why areas near the equator are hot and areas near the poles are cold.
- So, when Earth’s warmer air masses meet cooler air masses, the warmer air rises higher in the atmosphere while cooler air sinks to replace the warm air.
- This movement creates an air current or wind. A jet stream is a type of air current that forms high in the atmosphere.
- Since these hot and cold air boundaries are most pronounced in winter, jet streams are the strongest during both the northern and southern hemisphere winters.
- On average, jet streams move at about 110 miles per hour.
- They are located about five to nine miles above Earth’s surface in the mid to upper troposphere, the layer of Earth’s atmosphere where we live and breathe.
Geography
Current Affairs
March 28, 2024
What are Stomata?
Scientists recently discovered a novel regulatory mechanism that controls the opening of stomata in plants.
About Stomata:
- They are tiny openings or pores in plant tissue that allow for gas exchange. They are typically found in plant leaves but can also be found in some stems.
- They allow a plant to take in carbon dioxide, which is needed for photosynthesis. They also help to reduce water loss by closing when conditions are hot or dry.
- Stomata look like tiny mouths which open and close as they assist in transpiration. Plants that reside on land typically have thousands of stomata on the surfaces of their leaves.
- The majority of stomata are located on the underside of plant leaves, reducing their exposure to heat and air currents.
- In aquatic plants, stomata are located on the upper surface of the leaves.
- A stoma (singular for stomata) is surrounded by two types of specialized plant cells that differ from other plant epidermal cells. These cells are called guard cells and subsidiary cells.
- Guard cells are large, crescent-shaped cells, two of which surround a stoma and are connected to at both ends.
- A stomate opens and closes in response to the internal pressure of guard cells. These cells enlarge and contract to open and close stomatal pores.
- Guard cells work to control excessive water loss, closing on hot, dry, or windy days and opening when conditions are more favourable for gas exchange.
- Guard cells also contain chloroplasts, the light-capturing organelles in plants.
- Subsidiary cells, also called accessory cells, surround and support guard cells.
- They act as a buffer between guard cells and epidermal cells, protecting epidermal cells against guard cell expansion.
- For most plants, dawn triggers a sudden increase in stomatal opening, reaching a maximum near noon, which is followed by a decline because of water loss.
Science & Tech
Current Affairs
March 28, 2024
Moyar Valley
Moyar valley is the biggest nesting colony of critically endangered Gyps vultures in the wild.
About Moyar Valley:
- Location: It extends from Gudalur through the core area of Mudumalai Tiger Reserve. This entire stretch is an important biome in the Nilgiri Biosphere Reserve.
- It is sheltering several vital species like tiger and elephant and the critically endangered Gyps vulture. It is the only region in peninsular India where you have the biggest nesting colony of Gyps vultures in the wild.
- How it supports Gyps population?
- This valley offers plenty of wild kills and natural deaths of wildlife from Moyar village to Bhavanisagar.
- This provides a stable food-chain to nature’s scavengers, simply because these carcasses are mostly free from NSAIDs (Non-Steroidal Anti-inflammatory Drugs) and other poisonous chemicals.
Key facts Mudumalai Tiger Reserve
- It is located in the Nilgiris District of Tamil Nadu, at the tri-junction of three states, viz, Karnataka, Kerala and Tamil Nadu.
- It lies on the Northeastern and Northwestern slopes of Nilgiri hills which is a part of the Western Ghats. It is part of the Nilgiris Biosphere Reserve, the first Biosphere Reserve in India.
- It has a common boundary with Wayanad Wildlife Sanctuary (Kerala) on the West, Bandipur Tiger Reserve (Karnataka) on the North, the Nilgiris North Division on the South and East, and Gudalur Forest Division on the South West.
Environment
Current Affairs
March 28, 2024
Quantum cryptography
Scientists are proposing new technology known as quantum cryptography to protect sensitive communications.
About Quantum cryptography:
- It is also known as quantum encryption which uses the naturally occurring properties of quantum mechanics to secure and transmit data in a way that cannot be hacked.
- It is completely secure against being compromised without the knowledge of the message sender or the receiver.
- It is impossible to copy or view data encoded in a quantum state without alerting the sender or receiver. It uses individual particles of light, or photons, to transmit data over fiber optic wire.
- Process:
- Quantum cryptography is not replacing traditional cryptography; rather, it allows for a more secure transfer of the keys used in encoding and decoding.
- The amount of information which can be transferred using quantum cryptography is not very large or very fast, but it is very secure.
- The maximum speed, scale and security of the transfer is achieved by sending the secret key using quantum coding, but encoding and sending the data itself using traditional methods and algorithms.
- Benefits of quantum cryptography
- Provides secure communication: Instead of difficult-to-crack numbers, quantum cryptography is based on the laws of physics, which is a more sophisticated and secure method of encryption.
- Detects eavesdropping: If a third party attempts to read the encoded data, then the quantum state changes, modifying the expected outcome for the users.
- Offers multiple methods for security: There are numerous quantum cryptography protocols used. Some, like QKD, for example, can combine with classical encryption methods to increase security.
Science & Tech
Current Affairs
March 28, 2024
Investment Facilitation for Development (IFD)
One of the significant developments at the 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) in Abu Dhabi was the non-adoption of the agreement on Investment Facilitation for Development (IFD).
About Investment Facilitation for Development:
- It is a joint Initiative launched at the 11th WTO Ministerial Conference (MC11) in December 2017 on a plurilateral basis by 70 countries. This was done through a process known as the Joint Statement Initiative.
- Aim: This agreement aims to create legally binding provisions to facilitate investment flows. It also aims to develop predictable, transparent and open investment rules that will contribute to more efficient investment flows and increased business confidence and it is now in a formal negotiation phase.
- Objective: A core objective of the framework is to facilitate greater participation by developing and least-developed WTO Members in global investment flows.
- The IFD agreement was finalised in November 2023 and at present around 120 of 166 WTO member countries (more than 70% of the membership) back this agreement.
- Key areas included in the IFD Agreement to promote and facilitate investment
- Improving regulatory transparency and predictability: such as publishing investment-related measures and establishing enquiry points;
- Streamlining and speeding up administrative procedures: such as removing duplicative steps in approval processes and simplifying applications;
- Enhancing international cooperation and addressing the needs of developing members – such as providing technical assistance and capacity-building for developing countries and least developed countries; and
- India is not a part of this initiative.
Economy