TNPSC Current Affairs May 2017
1.India to boycott China’s One Belt One Road
India to boycott China's high profile belt and Road initiative called as One Belt one Road project, the 2 day forum which is going to be held on Sunday in Beijing, which is being attended by 29 leaders from various countries including Pakistan, US, Russia, IMF and Other international Organisation.
India is going to boycott forum due to sovereign issue over Rs 5,000 crore China-Pakistan Economic Corridor(CPEC), which passes through Pakistan-occupied Kashmir
About One Belt One Road project:
- To review the Ancient Silk road which connects Asia with Africa and Europe, Chinese President Xi Jinping announced One Belt One Road project in 2013
- The initiative will include Road, Ports and Railways by linking the countries for greater trade.
- The project was already launched in various countries like Kenya, Tajikistan, Thailand and Vietnam
- India was worried about the project, because as part of China's One Belt One Road project , there was a proposed $1.3 B Karakoram Highway Expansion as part of the China-Pakistan Economic Corridor (CPEC).
- CPEC runs through PoK (Pakistan Occupied Kashmir) which was a Indian Territory illegally occupied by Pakistan.
- China Pakistan Economic Corridor includes power plants, roads and railways which will link China’s western region of Xinjiang to the Gwadar port of Pakistan.
- This will give more access to Pakistan and China in PoK Region, which will be major concern of Sovereignty and integrity of India
2. India , Chile implementation of Expanded PTA
India and Chile have entered trade relations as an agreement on expansion of India-Chile PTA which was signed on September, 2016 is finally being implemented on 16th May, 2017.
It will help both sides as a wide array of concessions has been offered by both sides on a number of tariff lines which will facilitate more two way trade.
About expanded PTA.
- India and Chile had earlier signed PTA on 2006 which came into effect from 2007, which has limited number of tariff lines.
- The expanded Preferential trade agreement (PTA) has a wider coverage, wherein Chile has offered concessions to India on 1798 tariff lines with Margin of Preference (MoP) ranging from 30%-100% and India has offered concessions to Chile on 1031 tariff lines at 8-digit level with MoP ranging from 10%-100%.
- Currently Chile is the fourth largest trading partner of India in LAC region after Brazil, Venezuela and Argentina
- India’s exports to Chile consist of transport equipment, drugs and pharmaceuticals, yarn of polyester fibres, tyres and tubes, manufacture of metals, articles of apparel, organic/inorganic and agro chemicals, textiles, readymade garments, plastic goods, leather products, engineering goods, imitation jewellery, sports goods and handicrafts
- Import from Chile are copper ore and concentrates, iodine, copper anodes, copper cathodes, molybdenum ores & concentrates, lithium carbonates & oxide, metal scrap, inorganic chemicals, pulp & waste paper, fruits & nuts excluding cashews, fertilizers and machinery.
About Preferential trade agreement (PTA) .
The trade agreement between countries that reduce the tariffs for certain goods to the country which signed the agreement.
In simple the tariffs are lower for the country which signed the PTA, than the country which is not the part of Preferential Trade agreement.