| Topic: GS2 – International Relations – Bilateral Relations |
| Context |
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Free Trade Agreements and WTO Regulations
- WTO follows the Most Favoured Nation (MFN) principle, which means that countries cannot discriminate between trading partners.
- FTAs create exceptions to the MFN principle, but they must cover “substantially all trade” between the involved countries, as required by Article XXIV.8(b) of GATT.
- The proposed BTA between India and the U.S. must eliminate tariffs and trade barriers on a large portion of trade to be legally valid.
- If the BTA reduces tariffs only on select products without extending similar benefits to other WTO members, it will violate WTO regulations.
Interim Agreements as a Legal Pathway
- WTO allows countries to sign an ‘interim agreement’ before finalizing an FTA.
- Under Article XXIV.5 of GATT, an interim agreement must:
- Be necessary for the formation of an FTA.
- Have a clear plan and timeline to establish a full FTA, typically within 10 years.
- If India and the U.S. notify the BTA as an interim agreement, it must lead to a full FTA in the future.
- Using an interim agreement to bypass WTO rules without a real intention to form an FTA is legally unacceptable.
The ‘Enabling Clause’ Exception
- WTO allows deviations from MFN rules under the ‘enabling clause’, which grants better market access to developing countries.
- However, the proposed India-U.S. BTA does not fall under this exception because:
- It involves lowering tariffs for U.S. products rather than supporting developing nations.
- The Joint Statement confirms that India is reducing tariffs specifically to benefit U.S. interests.
WTO Compliance and Challenges
- The U.S. has previously pursued ‘reciprocal tariffs’, which violate WTO rules by imposing tariffs that match those imposed by other nations.
- WTO principles, such as special and differential treatment (S&DT), allow developing countries to have more flexibility in trade policies.
- Bound tariff rates at WTO limit how high tariffs can be set, and reciprocal tariffs would breach these commitments.
- India must uphold WTO rules and resist any trade policies that go against global trade laws.
Conclusion
- The proposed India-U.S. BTA negotiations present an opportunity for economic cooperation, but they must comply with WTO regulations.
- If structured improperly, the agreement could face legal challenges at the WTO.
- India must ensure that the BTA does not undermine multilateral trade principles and maintains a rules-based trading system.
| Practice Question: Why must the proposed India-U.S. Bilateral Trade Agreement follow WTO rules? How can India ensure the agreement remains legally valid? (250 Words /15 marks) |
2. Flawed food regulations fuel the obesity crisis
| Topic: GS2 – Social Justice – Health |
| Context |
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Introduction
- A recent economic survey recommends imposing a ‘health tax’ on ultra-processed foods (UPFs) to reduce their consumption.
- The urgency of the problem is evident as one in four adults in India is obese, and a similar proportion is diabetic or pre-diabetic.
- However, weak food marketing regulations and lack of proper labeling may undermine efforts to combat obesity.
Challenges in Implementing Food Regulations
- Since 2017, multiple ministries and the food safety authority have failed to implement planned labeling and advertising regulations.
- Regulations remain unclear, leading to excessive marketing of unhealthy UPFs.
- Despite past commitments, India still does not have front-of-pack warning labels on unhealthy food products.
Problems with the Indian Nutrition Rating System
- The food safety authority proposed a ‘health star’ rating system in 2022, modeled after an unsuccessful international framework.
- This system rates food from half a star (least healthy) to five stars (healthiest), but it has flaws:
- It allows unhealthy foods to appear healthier than they are.
- High-fat, salt, and sugar (HFSS) foods receive misleading ratings.
- A sugary soft drink or a highly processed breakfast cereal may get two or three stars, creating a false sense of healthiness.
- The system was designed under strong industry influence, sidelining scientific input.
- In contrast, effective global models, such as Chile’s warning labels, have successfully reduced UPF consumption.
Inadequate Advertising Regulations
- India has four laws to curb misleading food advertisements, but they remain ineffective.
- Regulations lack clear definitions and thresholds for HFSS or UPFs.
- The Consumer Protection Act classifies misleading advertisements as those hiding important product information.
- However, current food regulations do not require advertisements to disclose sugar, salt, or fat content.
- As a result, advertisements continue to target children and youth without warning about the health risks.
Steps Needed to Strengthen Regulations
- The economic survey suggests stricter labeling and advertising controls.
- Key actions to improve regulations include:
- Scrapping the flawed health star rating system and adopting clear warning labels.
- Defining sugar, salt, and fat limits for HFSS foods based on established health guidelines.
- Closing advertising loopholes by amending or creating a new unified law to regulate UPF promotions.
- Launching public awareness campaigns in multiple languages about the risks of UPFs.
Conclusion
- The rising obesity crisis in India is not due to individual failure but weak policies.
- Without strict food regulations, the goal of controlling obesity by 2025 may not be achieved.
- A strong regulatory framework is essential to protect public health, especially for children, over corporate profits.
- Urgent action is needed to ensure the vision of a healthier nation becomes a reality.
| Practice Question: How can stricter food labeling and advertising regulations help address India’s rising obesity crisis? Suggest policy measures to improve public health. (150 Words /10 marks) |
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