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FTA utilisation cell set up to improve use of trade pacts
వార్తల్లో ఎందుకు?
Trade pacts exist, yet exporters barely use them: the FTA utilisation gap GS3 external sector asks about
A cell to raise FTA utilisation as India looks to diversify exports.
Why it matters: factual, Prelims-type
What you need to know
2 నిమి
The Commerce Secretary said a dedicated FTA utilisation cell has been set up to help exporters actually use the preferences in India's trade agreements.
Separately, the RBI Governor said diversifying export markets and products, and new free trade agreements, can cushion the impact of a possible tariff shock if the India-US trade deal is not finalised.
మూలాలు: Topper IAS editorial (PIB / The Hindu / Indian Express)
ముఖ్య వాస్తవాలు
Remember these
- A dedicated FTA utilisation cell has been set up, as announced by the Commerce Secretary, to help exporters use the preferences in India's trade agreements.
- FTA utilisation means the share of eligible exports that actually claim preferential tariffs, usually by meeting rules of origin and filing a certificate of origin.
- The RBI Governor said diversifying export markets and products, plus new FTAs, can cushion a possible tariff shock if the India-US trade deal is not finalised.
- Rules of origin and compliance costs are well-established reasons why exporters under-use FTA concessions.
ప్రిలిమ్స్ · మెయిన్స్
How the exam will ask it
ప్రిలిమ్స్
- A free trade agreement lowers or removes tariffs on a large share of trade between the signatory countries, while each country keeps its own tariffs on non-members.
- Rules of origin decide whether a product qualifies for preferential tariff treatment under an FTA, and exporters usually prove this with a certificate of origin.
- FTA utilisation refers to the extent to which exporters actually claim the preferential benefits available under an agreement, not merely the signing of the agreement.
మెయిన్స్
GS3 Economy (external sector, trade policy). Signing FTAs does not guarantee benefits: low utilisation, owing to rules-of-origin compliance and awareness gaps, blunts their value, and a possible US tariff shock raises the stakes. The way forward is a facilitation cell, simpler certification, MSME outreach, and diversification of export markets and products.
Quick recall
Answer before you reveal
Under Project Cheetah, the first site in India where cheetahs from Namibia were reintroduced in 2022 was:
- Gandhi Sagar Wildlife Sanctuary, Madhya Pradesh
- Kuno National Park, Madhya Pradesh
- Ranthambore Tiger Reserve, Rajasthan
- Nagarjunasagar-Srisailam Tiger Reserve, Andhra Pradesh
సమాధానం చూడండి
సమాధానం: B — Correct: Kuno National Park, Madhya Pradesh — Kuno National Park in Sheopur received the first batch of cheetahs from Namibia in September 2022. • Gandhi Sagar Wildlife Sanctuary, Madhya Pradesh — wrong: Gandhi Sagar in Mandsaur became a cheetah habitat later, as the second site, not the first. • Ranthambore Tiger Reserve, Rajasthan — wrong: Ranthambore is a tiger reserve in Rajasthan and was not the 2022 release site. • Nagarjunasagar-Srisailam Tiger Reserve, Andhra Pradesh — wrong: Nagarjunasagar-Srisailam is a tiger reserve in Andhra Pradesh and has no link to the 2022 release.
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