[Economy] WTO: Bali Summit, Trade Facilitation Agreement (TFA), De-minimus level, 10% Subsidy Limit, Why Modi Opposed?

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IAS Mock Interviews
  1. Prologue
  2. WTO: Structure and functions
  3. Tariff and Non-Tariff Barriers to Trade
  4. WTO agreements
  5. Agreement on Agriculture (AoA)
    1. Green. Blue and Amber subsidies
    2. Amber box: De Minimus limits
  6. What is Bali summit and Peace clause?
  7. What is Trade Facilitation Agreement?
  8. Why Modi opposed Trade Facilitation Agreement


Consider this a “Fork” of the Economic Survey chapter 9 on Agriculture and food production.

WTO: Structure and functions

Q. Write a note on origin, structure and functions of WTO? 200 words
1944: Bretton Woods summit leads to birth of three institutions

InstitutionKEY IDEA
World bankCheap loans for development projects in third world
IMFBalance of payment and Exchange rates
  • To reduce barriers to international trade.
  • Bretton Woods wanted to setup an international trade organization (ITO) but USA did not ratify.
  • Thus, GATT was born as a stopgap arrangement.
  • General Agreement on Tariffs and Trade.
  • GATT’s Uruguay round of talks => Marrakesh Treaty’94=> World trade organization (WTO) born in 1995, India founding member.

WTO organization chart

WTO structure
  • Supreme Decision Making body
  • 160 members, Latest member Yemen (Capital: Sanaa)
  • Meets once every two years,
  • deliberates on trade agreements
  • Appoints Director general
  • day to day Decision Making body
  • Meets regularly at Geneva.
  • implements decision of ministerial conferences
  • Has Representative from each member state.

has two bodies, with separate chairmen

  1. Dispute settlement body
  2. Trade policy review body
  • Below general council, there are Committees on individual agreements and annexes- Anti dumping, Subsidies & countervailing measures (SCM) etc.
  • Roberto Azevêdo
  • Appointed by ministerial conference
  • Has four years term.
  • heads the Secretariat at Geneva

WTO Functions

  1. Ensure the developing countries benefit from world trade, especially the least Developed countries.
  2. Reduce barriers to international trade – both tariff barriers and non-tariff barriers.
  3. Get the members Enter into multilateral trade agreements to achieve above objectives.
  4. Provide forum for negotiation and dispute settlement for the members, if the agreements are violated.
  5. Cooperate with UN, World and IMF for a global economic policy that improves livelihood, protects environment and promotes sustainable Development.

Tariff and Non-Tariff Barriers to Trade

All countries want to protect domestic industries and prevent entry of foreign players.  So, they create two types of barriers to International trade:

Tariff BarrierIf US President Obama imposes 56% custom duty on Indian Cars.
Non-Tariff BarrierIf Obama tries to restrict entry of Indian cars without imposing heavy taxes on Indian cars, for example

  1. Subsidies: Giving free electricity to Detroit car manufacturers. OR If American residents buy American made cars, Obama administration will pay 50% of your vehicle insurance premium, and so on.
  2. Public Procurement: Making rule that only American companies can fillup tender for new sarkaari cars.
  3. Other obstacles like not giving custom clearance quickly. Putting “quota” on each exporter country and so on.
  • World Trade organization (WTO) aims to reduce such tariff and non-tariff barriers to international trade.
  • But what if China starts manufacturing cheap cars with poor breaks, bad steering and carcinogenic paint. Can Obama ban such dangerous foreign products? Does WTO permit that?
  • Yes, WTO made two special agreements for “safety”:
Non-food productsTechnical Barriers to Trade Agreement (TBT)
Food Products
  • Sanitary and Phytosanitary Measures Agreement (SPS)
  • EU had banned Indian Alphonso under this provision.

WTO agreements

Gist of the WTO bali summit article

Gist of the whole controversy surrounding India, WTO and TFA

Q. Write a note on WTO agreements 200 words

Five categories of agreements (or 6, depending on which book you refer!)

T1: Goods

  1. General Agreement on Tariffs and Trade (GATT)
  2. Agreements on
    1. Agriculture
    2. Textile
    3. Antidumping
  3. Safety / quality checks related
    1. Sanitary and phytosanitary agreement  (SPS)
    2. Technical barriers to trade (TBT)
  4. Trade related investment measures (TRIMS)
  5. Subsidies and countervailing measures (SCM)

T2: Services

  • General Agreement on Trade in Services (GATS)
  • To ensure that services’ import/export enjoys the same principles of free and fair trade, just like the trade in goods.


  • Trade related intellectual property rights (TRIPS)
  • Protects seven categories of IPR viz.
  1. copyrights
  2. patents
  3. trademarks
  4. Geographical indicators
  1. industrial designs
  2. integrated circuit layout-designs
  3. Trade secrets

T4: Dispute settlement

  • to enforce the trade agreements and commitments made by individual member country
  • once a complaint is filed,  first, the parties are allowed to sort the issue through mutual consultation
  • If that fails, formal adjudication by an expert panel.
T5: Policy reviewT6: plurilateral agreements
Periodically, WTO carries out audit/inspection/review of the trade policy of member states and gives them constructive feedback.Not signed by all countries:

  1. Civil aircrafts
  2. government procurement
  3. Dairy Products
  4. Bovine meat

~204 words

WTO has many other agreements but hard to memorize and fit into a 200 word answer anyways.

For exams in 2014-17, the important agreement is AoA. (Because it’ll stay in news due to 10% food subsidy issue)

Agreement on Agriculture (AoA)

Agreement on Agriculture De-minimus subsidies

WTO’s Agreement on agriculture (AoA) has three pillars
PillarWhat they want from member states?
1.Market accessreduce import duties
2.export competitionreduce export subsidies
3.domestic supportreduce Amber box subsides

AoA classifies subsidies into two parts:

mostly by third world to keep help farmers and keep vote bank happymostly by first world, to keep their MNC-corporatized farmer lobby happy.
to increase food production, food securityto capture “Foreign market” by flooding their cheaper products
India doesn’t give much “export” subsidies to farmers- except a select horticulture and floriculture Items
AoA further classifies them into 3 parts

  1. GREEN
  2. BLUE
  3. AMBER (WTO wants to reduce these subsidies)
AoA wants members to reduce export subsides

  • developed countries: cut by 36%
  • Developing: by 24%
  • Least developed: not applicable.

Green blue and Amber subsidies

  • Just like traffic signal has three colors: green (GO), orange (caution) and red (STOP).
  • Similarly, WTO classifies DOMESTIC AGRICULTURE subsides into three categories: green (GO), blue and amber (reduce).
  • There is no “RED” box meaning WTO doesn’t wish to completely STOP subsides, because it is impractical anyways!
  • Subsidies that don’t disrupt trade balance OR
  • Only cause minimum damage to trade balance.
  • E.g. agriculture research-development, extension services, farmer training programs, pest-disease control program, flood/drought relief money paid to farmers etc.
  • WTO Limit: nothing. Governments can give as much as they want.
  • Amber type Subsidies that aim to limit production.
  • Subsidies that don’t increase with production. For example subsidies linked with acreage or number of animals.
  • Very few countries use blue box- Iceland, Norway, Slovenia etc.
  • WTO limit: Nothing.
  • Subsidies that disturb trade balance like, subsidies on fertilizers, seeds, power and irrigation.
  • They distort trade balance because they encourage excessive production,therefore given country’s product becomes cheaper than others, in the international market.
  • WTO limits: yes- explained below

Amber box: De Minimus limits

Q. Explain De-Minimus limits in WTO’s agreement on agriculture. Why is India opposed to it? (200 words)

  • Under WTO’s agreement on agriculture (AoA), domestic-subsidies are classified into three groups: Green, Blue and Amber.
  • Amber box subsidies create trade distortion because they encourage excessive production e.g. fertilizers, seeds, electricity and irrigation subsidies.
  • Therefore, WTO wants to limit the amber box subsidies.
  • De Minimus is the Minimal amounts of Amber box subsides permitted by WTO, even though they distort trade.
  • De minimus limits are calculated on the agriculture production of the given member state in 1986-88.
CountryDe-Minimus: Amber box subsides quota
Developed5% of agriculture production in 1986-88
Least developedExempted.**

** Besides if they’re L.D.C=> they’ve no “AUKAAT” to give truckload of subsidies anyways.

Why is India opposed?

Food n Fertilizer Subsidy India Budget 2014

India fears it’ll have to cut down its food subsidy to comply with WTO’s De-minimus level

  1. In 1986: USA agriculture production was far ahead of India. So, their 5% De-minimus quota will be far bigger than our 10% quota (in absolute figures).
  2. Input costs have skyrocketed in these decades. But, De-minimus doesn’t consider inflation factor.
  3. So, if India has to limit its (Amber box) agro. subsides to a non-inflation adjusted 86’s production, we cannot continue the MSP to farmers or food security to poors.
  4. These subsidized foodgrains are meant for feeding the poors only, they do not distort international trade.

~190 words

India’s subsidy Expenditure in Crores (Rs.)
Subsidy componentRE-2013BE-2014

Ranking 2013: Food > Petroleum > Fertilizer

Ranking 2014: Food > Fertilizer > Petroleum

What is Bali summit and Peace clause?

Q. What is hell is “Bali Package” and “Peace clause”? (200 words)

  • December 2013: 9th WTO ministerial conference held at Bali, Indonesia
  • “Bali Package” is the collection of three prime outcomes of this summit.
Trade facilitation agreement
  • To cut down the red tape in customs clearance
LDC exports
  • Exporters from Least developing countries, will get Duty free, quota free (DFQF) access to markets in foreign countries.
food stockholding
  • this lead to peace clause, explained below
  • as per the original Agreement on agriculture (AoA), the developed and developing countries have to keep their Amber box subsidies within De-minimus level i.e. 5% and 10% of their agriculture production in 1986-88 respectively.
  • India opposed this base year and limits, because it’d make impossible to implement the food security programs for the poor and MSP for the farmers.
  • Therefore, as a measure of temporary relief, Bali summit enacted a “peace clause” for the AoA

Salient features of Peace Clause

  • No member, can drag any developing country to Dispute settlement mechanism of WTO.
  • for violation of De-minimus limits in AoA
  • Provided that the said developing country
  1. is paying subsidies for staple foodcrops
    • for public stockholding program
    • For food security purpose.
  2. is providing annual information of its food security Program to WTO.
  3. Permanent solution will be taken no later than 11th ministerial conference i.e. at December 2017.

~215 words.

What is Trade Facilitation Agreement?

WTO Trade Facilitation Agreement TFA

Manniram is happy knowing that Modi has refused to sign TFA!

Q. Write a note on the salient features of Trade facilitation agreement (200 words)

ORIGIN9th WTO ministerial conference held at Bali, Indonesia in 2013
AIMreduce red tapes and bureaucratic hassles in customs clearance

Under TFA, Every member:

  1. Will have to publish a detailed list of procedure for import-export, fees, inspection rules, penalties etc.
  2. Minimize the proof documents and clearance required for customs clearance.
  3. Make all the information available on INTERNET to foreign traders, governments and interested parties
  4. Provide electronic payment of fees, duties, taxes.
  5. Setup a single window mechanism to help trader submits all documents at a single point- preferably online.
  6. Trader should be notified immediately, If goods are detained at customs.
  7. Provide faster customs clearance to perishable goods (Fruits, veggies, flowers).
  8. Member must not ask foreign traders to compulsorily route their applications/fees via local customs brokers/middlemen.
  9. Give Advance ruling, as and where applicable. (Recall advance ruling provision on taxes, under Budget-2014.)

Least developed countries

They’ll get financial and technical help to comply with above rules.

New Bodies under TFA
LEVELbody to implement Trade facilitation agreement
  • Every nation will have to setup a Committee on Trade Facilitation.
  • it’ll implement this agreement and coordination with the international body
  • WTO will setup a Committee on Trade Facilitation
  • all members can participate
  • It’ll will provide dispute settlement for violation of any provisions under this agreement.
  • will elect its separate chairman
  • Will meet at least once every year, review agreement every four years.

Benefits of TFA:

A simplified customs clearance mechanism will boost international trade, and thereby it will

will increase in global GDP$1 trillion (~Rs 60 lakh crore)
will create more jobs21 million


Deadlines under TFA
deadline to sign TFA2014, July, 31stBut India refused.
Agreement becomes effective from2015

~280 words. But in exam, all points can’t recalled so it’ll automatically “FIT” the 200 words limit!

Why Modi opposed Trade Facilitation Agreement

Q. Why has India refused to sign Trade Facilitation agreement? (200 words)

  • WTO’s Trade Facilitation agreement (TFA) aims reduce the redtape and bureaucratic hassles in customs clearance and thereby facilitate international trade.
  • But, TFA maintains that it doesn’t “diminish” the rights and obligations of members under other agreements of WTO.
  • For example, under the Agreement on Agriculture (AoA) if a developing country is giving Amber box subsidies beyond 10% of its national agriculture production (base year 1986), THEN other members will be justified in putting trade sanction or WTO-complaint against the said country.
  • 2013: In Bali Summit, the then UPA Government agreed to sign TFA, after WTO “Peace clause”, which gave temporary exemption to developing countries from 10% de-minimus provision until 2017.
  • 2014: Change of regime,

Modi Government has refused to sign TFA before deadline (31st July 2014), because:

  1. Once India has signed TFA, the developed countries may stonewall her demands for a rational change in base year and ceiling limits on agro. Subsidies.
  2. Then India will have to cut down agro. Subsidies in MSP and food security programs, else they’ll put sanctions on us, soon as Peace-clause “temporary” deadline is over in 2017!
  3. And yet, we’ll have to keep giving them easy customs clearance because we signed the TFA!

Therefore, Government has decided to use TFA signature as a “Bargaining Chip” for a permanent solution of food subsidies issue.

~220 words

Mrunal recommends

  1. (free) NCERT, NIOS, TN-Books 4 History,Geo,Sci
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  3. Spectrum: Modern History (Hindi | English)
  4. Maths: Quantam CAT Sarvesh Kumar
  5. Objective General English SP Bakshi
  6. Word Power made Easy -Norman Lowe
  7. Topic wise Solved Paperset by Disha

172 Comments on “[Economy] WTO: Bali Summit, Trade Facilitation Agreement (TFA), De-minimus level, 10% Subsidy Limit, Why Modi Opposed?”

  1. tropical savannah like African savanna llanos campos(sa), Carpentaria and nullarbor (aus).
    bsh like us prairies, pampas, aus downs and African veld

  2. grasslands devoid of shrubberies and trees they have perennial cover of grasses but savannah are home to many tree varieties dominated by deciduous trees.

  3. plzzz help me…if anybody has instructions along with admit card bcz i forgot to download instructions …plzzzz reply

    1. Kirti, you can visit the upsc link (to download the admit card) again. It shows the instructions first before proceeding to the admit card, even if you have already downloaded the card.

  4. Plz help!!!
    Two trains for Mumbai leave Delhi at 6am and 6.45am and travel at 100kmph and 136kmph respectively.how many kilometers from Delhi will the two trains be together?

    1. train 1 – 100 km/hr @ 6 AM
      train 2 – 136 km/hr @6:45 AM

      Relative speed = 136-100 = 36 km/hr
      Train 1 at 6:45 AM would have already covered 75 km (100 * 45/60)

      So this is the distance that train 2 has to cover with relative speed of 36 km/hr
      So time taken by it in covering it = 75/36 = 2.0833hr = 125 minutes(multiply by 60 for minutes)

      So to calculate the distance at which they meet = take any trains speed and multiply with 125 minutes
      so lets take train 1: 100 km/hr for 125 minutes = 208.33
      to this 208.33 km add 75 km as we took time after 6:45 AM(so we will have to add distance traveled by train 1 in those 45 minutes) = 208.3+75 = 283.33 km

      or simply calculate distance traveled by train 2 in 125 minutes = 136*125/60 = 283.33 km

      1. i think the simpler way wud be(no need to cal time and then dist)..

        Let “X” be the dist wen they meet from Delhi..Train A travelled X+75(Dist traveled from 6 am to 6.45 am) and train B travelled X dist, so

        X+75/100 = x/136
        x=283.3 km

        1. @Hriti
          I was just explaining in very simple terms taking concept of relative speed.
          As per ur concept of time equality
          If they meet at X Km distance
          equation would be: (X-75)/100 = X/136 = 283.3 (as we are equating the time since you have already taken X km as a variable)

          1. yeah..i got ur intention of making it simple..
            also..actually i solved it with equation X+75/136 = X/100 , but while putting up here..i made it incorrect..thanks for pointing out..

            ur explainations are very good.

          2. Thnxzz @maharaj n @hriti

            @maharaj how u know everything abt everything ????……amazed by ur knowledge n ofcourse ur initiative to help everyone.

  5. Mrunal sir, it is said that De Minimus is the Minimal amounts of Amber box subsides permitted by WTO. i.e., 10% is minimum. So, we can give more than 10% na?, then what’s the problem?. It should be maximum 10% allowed.

    1. Hi Mallikarjuna,

      I think you missed “within”.
      Article says “as per the original Agreement on agriculture (AoA), the developed and developing countries have to keep their Amber box subsidies within De-minimus level i.e. 5% and 10% of their agriculture production in 1986-88 respectively”.
      5% and 10% are the limits within which subsidies are permitted.
      Read it again for better understanding.

      1. Thanks for ur reply. I understood the concept-it is within 5% & 10%, but under the subheading “Amber box: De Minimus limits” of the article it is given that De Minimus is the Minimal amounts of Amber box subsides permitted by WTO, which implies 10% is min limit (but actual is up to 10% or max 10%)

  6. Hi .. pls explain the below question:

    Q. Consider the following data table. Which statement best explains the climate variation between these two cities?
    CITY A 110 -36 23.8 31.9
    CITY B 90 -19 38.2 92.9

    a) City A and city B are located at the same longitude
    b) City A is located at a high elevation,and city B is located at Sea level
    c) City A is located far inland, city B is located near a large body of water
    d) City A is located on the east coast, and city B is located on the west coast

    1. Loking at the annual range of temp we can say the weather of A is of continental type with low pecipitation. for B the annual range is less and rainfall is high due to influnce of ocean or alrge water body .. So My answer would be C

  7. Hehe Mrunal i must say that the pics of Gangajal are very pertinent in all the places u have used them…funny…i especially liked the life expectancy one…:D

  8. hi mrunal
    please explain the blue box subsidy and De-minimus quota ill effects for india.i could not understand both the concepts.

  9. Q: In a test, a student attempted only six questions and having got full marks for each question, secured 40% marks in the test. how many questions did he not attempt?

    3 , 6 , 9 , 12

    how to solve this kind of qusn?

      1. for getting 40% u need 2 get 6 ques
        for 100% =100*6/40=15
        so total 15 q,u answered 6,remaining 9

        1. @VINAY
          just a query since ur here
          is right to food a fundamental right or has it been converted to a “legal right” after food security act
          as SC takes “right to food” as incorporated in “right to live” under article 21

          1. Right to food is out of many, one of the liberal interpretation of Art. 21 by Supreme court after Maneka case(1978), but using this interpretation, no one can drag the govt. in court and that is why supreme court order(only) to the govt release the food grain which is rotting in go-down and govt places many reasons so then how a govt would be punished? This matter also falls welfare of people under Directive principle of state policy where govt is punished through election.
            Now this right to food gets legal feather so supreme court able to drag govt/their functionaries into court room and ask you will be punished latter through election that’s sure but today I’m going to punish you and that is why often supreme court ask enact the law regarding night shelter to punish on deficiencies…
            Hope it would work,

          2. @B+ve
            Yes i was kind of thinking this only.
            These interpretations made by SC on Fundamental rights are in a right direction to make DPSP’s justiciable as our constituent assembly members wanted it.
            Thanx a lot for confirming !!
            Best of luck..!!!

        2. thanks vinay..bdwy..got the ansr with the same strategy…thnks anyway…gud luck for prelims.

        3. Dont we need one condition to conclude this answer that all the questions carry equal weightage of marks?

  10. Guys just help how to calculate that when a calander will repeat. For example 1992

  11. Six bells commence tolling together and toll at intervals 2,4,6,8,10 and 12 seconds respectively. In 30 minute?

    Four bells begin to toll together and then each one at intervals of 6 s, 7 s, 8 s and 9 s respectively?

  12. what is the difference between balance of trade and trade balance ncert class 12 microeconomics says trade balance is just difference between export and import of goods.

    1. start with Current Account of BOP:
      Current a/c Balance=Balance of trade in goods(BOTg)+Balance of trade in services(BOTs)+ Payment Transfer
      if it is not mention whether it is for goods or services then it is taken for goods and it also called trade balance
      means Balance of trade in goods=balance of trade=trade balace

  13. PLS publish the remaining article..

  14. Can someone please provide a link for the list of endangered species in India as well as IUCN red list…

  15. I think it would be advisable for bloggers to comment/upload their queries/doubts/confusions as per the subject matter. If its related to CSAT 2, post it under the relevant topics under the CSAT article which Mrunal has listed. If it is Polity, post it under the relevant polity articles and so on. And with this WTO topic, let comments be related to WTO and related matters, that way discussions can be held if required and it would be more organised. Anyhow, its just a suggestion since i find it distracting to see unrelated comments when i scroll down to see if there has been any supplementary information added by bloggers.
    Big thanks again to Mr. Mrunal.

  16. Hello sir,

    I’ve a question here. When the present De-minimus quota for developing nations is already 10%, why should we fight for the limits agreed under AoA?
    so, is it like, India wants to provide subsidy beyond 10% quota with a revised base year or the WTO wants us to cut down subsidy level to less than 10 % with existing base year?


    1. Hi Gayathri,
      I can explain what I understood.
      Actually 10% limit is based on 1986-88 but inflation rate increased manifold since then in India. As India may exceed this limit under NFSA therefore, India wants WTO to raise the % limit with same base year.
      Hope this will help.

    2. let MSP which india give for wheat = $10 per tonne
      let Fixed external reference price (world market price)(1986-88 levels) = $1 per tonne
      let Domestic production of wheat = 100 tonnes

      Wheat Aggregate measure of support
      ($10–$1) x 100 tonnes = $900
      this $900 should be under 10% of total production limit which is less likely

      had the external refernece price been set for suppose year 2000 when the market price of wheat was suppose $5 per tonne than AMS would have been ($10-$5)*100 = $500 which is more likely to be under 10 percent of total production

      all figures are hypothetical.

  17. How many biodiversity hotspots r there in India?? 2 or3 ..western ghats , n-e himalayas??

    1. @ manisha….3 biodiversity hotspots are there in India…

      1. Western ghats
      2. north east Himalaya
      3. Indo-Malaya…..A & N islands considered as a part of this biodiversity hotspot

      1. Thanx a lot vk…

    2. Hi Manisha and VK

      As per my update there are 36 biodiversity hot spots in the world out of which 4 are in India.
      1. Eastern Himalaya
      2. Western Ghats
      3. Hilly areas of Indo-Mayanmar border
      4. Gulf of Mannar
      Among these, 2 are critically threatened:
      Eastern Himalaya
      Western Ghats

      Hope this will help. If there is any correction please share

      1. Thanx Ritu…for making it clear

        1. There are 34 biological hotspots. India has 3:
          1. Eastern Himalaya
          2. Indo-Burma
          3. Western Ghats and Sri Lanka.

          1. There are 4 hotspots in south asia, in india there are two biological hotspots.

  18. Is kaveri a perennial river ?

    1. Strickly speaking it is not perennial….but generally in some books they refer it as a perennial as it gets rain during two seasons…one during south west monsoon….and other during north east monsoon….

    2. Another logic is if it is perennial why so much fight between karnataka and tamil nadu for its water…;)

      1. I guess applying logic in such depth prove more harmful than beneficial in UPSC pre examination,it has been proven in past , if they are asking about perenniality of Kavery than obviously they are asking it because it has something which is an exception otherwise every one know that peninsular rivers are not perennial in general…. and about the fight between states ….even india bangladesh and india pakistan are also fighting and that too over “perennial rivers” , !!!

        1. Cool dude…..obviously its a debatable topic…and thats the reason i mentioned strickly speaking…dont go by majid hussain or saddam hussain in such depth it might be more harmful than beneficial…if upsc asks about perenniality of kaveri doesnt mean it is perennial…ur logic is more dangerous than mine….;)

          Official link…..for ur info…

    3. Kaveri is a rain fed parennial river because its drainaige recieve water from rainfall both in summer and winter monsoon, refer Majid Hussain Geography of India

      1. read Indian geography ncert – its mentioned that its perennial..

        1. @hriti I am also saying that its parennial and was not able to find anything about perenniality of Kaveri in tinkusrinivas’ link instead it says that the tributaries of kaveri hemavathi and kabini are perennial rivers ….and @tinkusrinivas its good that you rely more on authentic govt sources but plz dont mock a respected teacher I have read geography from his book only and respect him a lot … newys peace :)

          1. Nikhil…

            See buddy i have not come across any where about perenniality of kaveri explicitly…if u have any authentic ( govt source ) please do tell me….in that link also they have not mentioned it explicitly…so just chill…n sorry if i hurt ur feelings..

  19. Please update about India-Israel foreign policy.

  20. sir mujhe ye samajh nhi aya ki 10% of production ar subsidy me kya relation hai?and how is it related to msp?
    plz help..

    1. one more thing.. why the year is 1986-88? why ot some other year?is there ant reason for it?

  21. which one is not liquid financial asset ?
    time deposit
    demand deposit
    currency in circulation
    foreign aid

    a or d ?

    1. Time deposit are basically fixed deposit, and can not be withdrawn anyday – hence less liquid. So its d.

      1. your explanation is correct but the answer will be ‘a’ read his question :)

        1. Time deposit, DD, CU are parts of aggregate money supply and hence are liquid assets. So option D is the most likely answer.

          1. @Chaitanya
            Regarding Foreign aid
            It comes in form of Internationally recognized currencies ( such as dollars or euros or yen)
            it is the most liquid asset in a country after a country’s domestic currency.
            its swapping mechanism with banks are most easiest of processes.
            So its a highly liquid asset with government to deal internationally and domestically also

  22. can any one tell simplest way to solve the x vs y questions.
    a linear graph is gvn we hav to match the relation with the graph and findout the crrct option gving said relation.

    1. a linear graph will always be of a linear equation that is y=mx +c just learn the shape of logarithmic ,exponential,cubic (y = x^3) and square polynomial (x = y^2) and you will be able to answer the question

      1. thnx bro googled it and learned the equation,thnx a lot.

  23. hey does anyone has “instructions” page which we need to carry with hall ticket?

    Plz share..

      1. Do we have to carry it to the exam hall? Nothing is mentioned on admit card as such. While downloading admit card, we were just asked to download the instructions (no mention of CARRYING it).

        1. no need to carry it

          1. Guess we need to carry it…


            @ Hriti – thanks, I would’ve missed it

          2. Yes it is mandatory…if its not mandatory also i will take atleast i can use as a rough paper…;)

          3. its mandatory, need to carry

          4. @gayathri @hriti thanks for pointing that out, would have missed it and sry for above comment :)

      2. Thanks Nikhil.

        i dont think we have time to discuss over it. Just take the print and take..no penalty in doing that..

    1. no need to carry it.

  24. Sir,
    very informative articles posted by you but if the posted articles are pre-set for printing on A4 size sheet or if it can be available for download in pdf file format set on A-4 size sheet then it will be great. I tried all possible combination of A4-Legal size/margin width/page layout to get print out but at some point or other the text was half printable on any given page.please sir, do look into it as after a particular time your eyes get strained by working on computer.A hard copy is the best way to be accessible to the topic at any time.

  25. in the sub heading why india is opposed- Input costs have skyrocketed in these decades. But, De-minimus doesn’t consider inflation factor….
    But in the calculation of AMS inflation is considered….. please correct me if i am wrong…

  26. What kind of action can WTO takes if India denies to sign on TFA ,or what India will suffer by WTO now when India already raise voice to change of base year and for minimal subsidies.

  27. Are 3 months enough for Mains preparation if i have not prepared anything before prelims? Please guide Mrunal Sir

    1. Yes very much. Just give ur 100%.

  28. can any one help me out for statement assumption implication type question being asked in po exam or please send me a pdf link regarding this or tell about boot thats must be refferd,please help me out i am in need of this topic……

  29. Hi ! What are the intangible cultural assets in India (notified by UNESCO) ?

  30. Gajab sir ! Thank you

  31. in the sub heading why india is opposed- Input costs have skyrocketed in these decades. But, De-minimus doesn’t consider inflation factor….
    But in the calculation of AMS inflation is considered….. please correct me if i am wrong…

  32. thanks a lot mrunal , the above information is very easy to to understand..

  33. @Mrunal -Really helpful article.
    I would like to add few points.
    1) In the peace clause agreement , it only covers agreement on agriculture so no one can take India to Dispute Settlement mechanism, but India could be dragged to DSM for violating Subsidies and countervailing mechanism (SCM)
    2) Peace Clause was provided in 1994-95 when WTO was established , at that time US and EU get 10 yr period relaxation, Why India and other emerging economies got only 4 years?
    3)Under Green Box, USA gives $120 billion out of $130 billion of its food security programmes which is not correct ,also USA provide Incorrect data for its trade distorting subsidies to WTO.
    4) As mentioned in the articles, US major subsidies are export subsidies i.e for cotton, soyabean, meat etc while India procures food for its poor.

    P.S : please refer http://triplecrisis.com/?p=8920 – THE HYPOCRISY CLAUSE.

  34. thanks sir for given detailed information on this topic

  35. Mrunal Sir nobody has given me the answer which I had asked two months back ,now again I m putting those question. Qus1. What will happen if India won’t be ready to sign after the given ultimatum by WTO after 2017. Secondary why WTO members are not ready to change the base year 1986-87 production even they might aware that there is lot of changes happened in economy since 1986-87.

    1. First Thing first

      1. WTO is an organisation which works by consensus(which largely explains its inability to realize its vision-to make world trade barrier free)

      you need to realize that it is not only India .In fact Indonesia (Soybean),Thailand(Rice) ,China(Cotton) etc has similar problems.So they formed a league(recall G-33)

      Coming to your problem specifically nothing new as it seems is going to happen in future.There are chances that deadlock will continue or in the meantime solutions through mutual concessions have to be worked out.As said WTO is a consensus organisation so everyone has to agree for new deal but yes bilateral rifts seems more imminent in near future

      2. Second question can be answered by common mathematical sense.I mean what actually is subsidy it is just difference in the current price minus base price which subsequently multiplied by amt produced in current year

      Now according to developed world there is not much overall change in base price as inflation in developed world is too low,but going by India’s stand the price have undergone dramatic change so on average there is case for early revision.But we are at the same place by going whole circle—-Yes,WTO is a consensus organisation

      Now the question is why Developed countries not want revision to happen?

      Think over it !!!!!!

  36. So what is the solution? I think WTO should revise the agreement which would be something like:
    For any member country ‘x’, the cap should be specifically calculated using its average inflation rate, with the base year same as before..

    So, suppose the inflation factor in US is say,3.. Then the cap would be 3*some constant…. Inf factor in India is say,15.. Then the cap would be 15*the constant…

    :D I went too deep… M the next Azevêdo.

  37. 1.sir what is relation between MSP and ERP(external reference price) and how ERP is decided by WTO.
    2. I think developed country is giving subsidy more then 5% then how can they presser on India to reduce subsidy by 10%.

  38. What is the main fact of 1991 economy? and how indian economy was damage?

  39. sir, please write about the recent WTO summit, nairobi…. plzzzzzzzzzz sir plzzzzzz :)

  40. WTO bali conference and peace clause and patent rights plz explain

  41. Wow! Great to find a post knnkicog my socks off!

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