Prelim questions — international
1. Doklam is a disputed territory claimed by
a) China and Nepal
b) Bhutan and China
c) India and Pakistan
d) Nepal and Bhutan
There was a recent standoff between India and China at the Doklam plateau which lies at a tri-junction between the India, China, and Bhutan.
2. Hambantota Port is located in
d) Sri Lanka
It is a port in Sri lanka. It was recently handed over by the Sri Lankan government to the Chinese. India sees it as a part of ‘’string of pearl’’ ie a Chinese strategy of encircling India.
3. The ‘Two Plus Four Agreement’ is associated with
a) Israel and Palestine
c) North and South Korea
The Treaty on the Final Settlement With Respect to Germany or the Two Plus Four Agreement ,was negotiated in 1990 between the Federal Republic of Germany and the German Democratic Republic (the eponymous Two), and the Four Powers which occupied Germany at the end of World War II in Europe: France, the Soviet Union, the United Kingdom, and the United States. In the treaty the Four Powers renounced all rights they held in Germany, allowing a united Germany to become fully sovereign the following year.
4. Consider the following statements about Aggregate Measurement of Support (AMS)
1. It consists of only product-specific subsidies
2. Under Agreement on Agriculture (AoA), developing countries can give AMS up to 50
per cent of the value of agricultural production
Select the correct statements
a) 1 Only
b) 2 Only
c) Both 1 and 2
d) Neither 1 nor 2
The AMS means annual level of support (subsidies) expressed in monetary terms, provided for an agricultural product in favour of the producers (product specific) of the basic agricultural product and non-product specific support provided in favour of agricultural producers in general.
As per the WTO provision, AMS is a trade distorting subsidy. Since it distorts trade by directly influencing production and price in an economy, the AMS is categorized as a ‘reducible’, ‘non permissible’ or ‘non-exempted’ subsidy.
The Aggregate Measurement of Support consists of two parts—product-specific subsidies and non-product specific subsidies. Product-specific subsidy refers to the total level of support provided for each individual agricultural commodity. For example wheat AMS is the subsidy given specifically to wheat. Non-product specific subsidy, on the other hand, refers to the total level of support given to the agricultural sector as a whole, i.e., subsidies on inputs such as fertilizers, electricity, irrigation, seeds, credit etc. Usually, these non product subsidies are given to all crops.
As per the WTO norms, the AMS can be given up to 10 % of a country’s agricultural GDP in the case of developing countries. On the other hand, the limit is 5% for a developed economy. This limit is called de minimis level of support.