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GS Paper: GS2-20.Important International institutions, agencies and fora- their structure, mandate.

  • Trump’s new forced labour tariffs face global pushback and legal questions

    Why in News?

    The United States’ new forced labour tariffs under Section 301, covering more than 60 countries, face legal pushback from Brazil and Australia over WTO compliance.

    Key Highlights

    • Tariffs are imposed under a Section 301 forced labour enforcement investigation, covering over 60 trading partners.
    • Brazil and Australia are contesting the tariffs’ compliance with WTO rules.
    • The dispute remains open, legally and diplomatically.

    Section 301 (U.S. Trade Act, 1974)

    • Empowers the Office of the United States Trade Representative (USTR) to investigate and respond to unfair foreign trade practices.
    • Authorises the U.S. to impose tariffs or other trade restrictions if another country’s actions are found to burden or restrict U.S. commerce.
    • Frequently used in disputes involving intellectual property, market access, subsidies, and labour practices.

    World Trade Organization (WTO)

    • Established in 1995, succeeding the General Agreement on Tariffs and Trade (GATT), 1947.
    • Headquarters: Geneva, Switzerland.
    • Objective: Ensure rules-based, predictable, and non-discriminatory international trade.
    • Functions include administering trade agreements, resolving disputes, monitoring trade policies, and providing technical assistance.

    Value Addition

    • Most-Favoured-Nation (MFN) Principle (Article I, GATT): WTO members must treat all trading partners equally unless an exception applies.
    • Dispute Settlement Understanding (DSU): Discourages unilateral trade retaliation and requires members to resolve disputes through the WTO mechanism.
    • Relevance for India: Increasing use of unilateral tariffs by major economies can affect export competitiveness and test the credibility of the multilateral trading system.

    [2018, GS2, 15 marks] What are the key areas of reform if the WTO has to survive in the present context of ‘Trade War’, especially keeping in mind the interest of India?”

  • US to announce nuclear agreement with Saudi Arabia

    Why in the News?

    The Trump administration is preparing to announce a civil nuclear cooperation agreement with Saudi Arabia that could include a uranium enrichment facility, drawing bipartisan US Congressional and Israeli non-proliferation concerns.

    Key Highlights

    1. The proposed 30-year agreement could include uranium enrichment capability for Saudi Arabia.
    2. Saudi Crown Prince Mohammed bin Salman has stated that Saudi Arabia would pursue nuclear weapons if Iran acquires them.
    3. The agreement requires review by the US Congress before it can be finalised.

    International Atomic Energy Agency (IAEA)

    1. The International Atomic Energy Agency (IAEA) is an autonomous international organization established in 1957.
    2. It promotes the peaceful use of nuclear energy while preventing its use for military purposes through safeguards and inspections.
    3. It is headquartered in Vienna, Austria.
    4. India is one of the 180+ member states of the IAEA.
    5. In 2025, the IAEA Board of Governors declared Iran in breach of its nuclear non-proliferation obligations, the first such finding since 2006.

    New START Treaty

    1. New START (Strategic Arms Reduction Treaty) was the last remaining bilateral nuclear arms control treaty between the United States and Russia.
    2. It placed legally binding limits on deployed strategic nuclear warheads and delivery systems and provided for mutual inspections.
    3. The treaty officially expired on 5 February 2026, ending more than five decades of legally binding limits on the world’s two largest nuclear arsenals.

    (2018) In the Indian context, what is the implication of ratifying the ‘Additional Protocol’ with the International Atomic Energy Agency (IAEA)?

    (a) The civilian nuclear reactors come under IAEA safeguards.
    (b) The military nuclear installations come under the inspection of IAEA.
    (c) The country will have the privilege to buy uranium from the Nuclear Suppliers Group (NSG).
    (d) The country automatically becomes a member of the NSG.

  • Protect Seafarers, and the Maritime Order

    Why in the News:

    A Russian missile strike on the merchant vessel MV Golden Leo while departing Ukraine’s Odesa port killed 10 seafarers, including four Indians, marking the first Indian deaths in the Russia Ukraine war after earlier deaths in the Iran war. India summoned Russia’s chargé d’affaires and, for the first time, named Russia in its protest, a step it had avoided for four years of diplomatic balancing with Moscow.

    What happened, and why does it extend the threat to Indian seafarers into a new theatre?

    1. The strike: Russian forces launched three cruise missiles at the MV Golden Leo, a Turkish owned vessel flagged to Guinea Bissau, while it was departing Odesa. The strike killed 10 people, including four Indians, while one more Indian sailor was hospitalised in critical condition.
    2. Prior Hormuz deaths: Indian seafarers, including three aboard the MT Settebello, were killed in and around the Strait of Hormuz amid the Iran war.
    3. Diplomatic response: India summoned Russia’s chargé d’affaires Vladimir Ladanov and explicitly named Russia, calling the targeting of commercial shipping unacceptable.

    On what legal basis is targeting merchant shipping unlawful, and why is that basis under strain?

    1. Governing principle: Merchant vessels engaged in civilian commerce cannot lawfully be attacked unless they are being used for military purposes.
      • Term: International Humanitarian Law (IHL): The body of law that seeks to limit the effects of armed conflict by protecting non combatants.
    2. Cargo detail: The MV Golden Leo was reportedly carrying grain, reinforcing its civilian character.
    3. Stakes for global trade: Ukraine remains a leading global grain exporter to Europe, North Africa, and Asia. Disruptions through the Strait of Hormuz have separately exposed the vulnerability of global energy supplies.

    Why does India’s protest coexist with continued exposure of its seafarers, and what does that expose about its leverage?

    1. India’s outsized stake: More than 10% of the world’s seafarers are Indian, many serving aboard foreign flagged vessels such as the MV Golden Leo and MT Settebello, placing them outside direct Indian jurisdiction.
    2. Risk avoidance, not norm enforcement: Following the deaths of Indian seafarers in West Asia, the Directorate General of Shipping advised against deploying Indian seafarers on voyages through the Strait of Hormuz, reducing risk exposure rather than enforcing the underlying international norm.
    3. Significance of naming Russia: Summoning and explicitly naming Russia is significant because India has generally maintained strategic balance and avoided directly criticising Russia during the conflict.

    Conclusion:

    The deaths of Indian seafarers in two separate conflict zones highlight the growing vulnerability of civilian shipping and the weakening of protections under International Humanitarian Law (IHL). While India’s diplomatic protest demonstrates a willingness to call out violations even by a strategic partner, its immediate response remains focused on risk mitigation rather than norm enforcement. The broader challenge of ensuring compliance with International Humanitarian Law by major military powers remains unresolved.

  • WTO Agreement on Fisheries Subsidies (AFS)

    Why in News?

    India has deposited its Instrument of Acceptance for the WTO Agreement on Fisheries Subsidies (AFS), becoming the 123rd WTO Member to join the Agreement.

    Key Highlights

    • Adopted: At the 12th WTO Ministerial Conference (MC12), Geneva, June 2022.
    • Entered into Force: 15 September 2025, after acceptance by two-thirds of WTO Members.
    • Nature: First WTO multilateral agreement with an environmental sustainability objective.
    • Objective: Promote sustainable use and conservation of marine fisheries resources while ensuring fair global trade.

    Major Provisions

    • Prohibits subsidies for:
      • Illegal, Unreported and Unregulated (IUU) fishing.
      • Fishing of overfished stocks.
      • Harmful fishing practices leading to overexploitation of marine resources.
    • Provides special and differential treatment (S&DT) for developing and least-developed countries.

    What is Outside its Scope?

    • Aquaculture (fish farming).
    • Inland fisheries (rivers, lakes, reservoirs).

    Significance for India

    • Protects the interests of traditional and small-scale fishers.
    • Disciplines subsidies provided to large industrial distant-water fishing fleets, creating a more level playing field.
    • Enhances India’s image as a responsible and sustainable seafood exporter.
    • India’s aquaculture-based shrimp exports, which form a major share of seafood exports, remain outside the Agreement’s scope.

    India’s Fisheries Management Framework

    • Sustainable Harnessing of Fisheries in the EEZ Rules, 2025.
    • Guidelines for Sustainable Harnessing of Fisheries in the High Seas by Indian-Flagged Fishing Vessels, 2025.
    • Pradhan Mantri Matsya Sampada Yojana (PMMSY) for fisheries infrastructure, conservation and capacity building.

    About the WTO Agreement on Fisheries Subsidies

    • Negotiated under Sustainable Development Goal (SDG) 14.6, which calls for eliminating harmful fisheries subsidies.
    • Applies mainly to marine wild capture fisheries and fishing-related activities at sea.
    • Seeks to balance marine conservation, livelihood protection, and rules-based international trade.

    [2017] Consider the following statements:

    1. India has ratified the Trade Facilitation Agreement (TFA) of WTO.
    2. TFA is a part of WTO’s Bali Ministerial Package of 2013.
    3. TFA came into force in January 2016.

    Which of the statements given above is/are correct?

    [A] 1 and 2 only

    [B] 1 and 3 only

    [C] 2 and 3 only

    [D] 1, 2 and 3

  • The World Bank and the IMF, collectively known as the Bretton Woods Institutions, are the two inter-governmental pillars supporting the structure of the world’s economic and financial order. Superficially, the World Bank and the IMF exhibit many common characteristics, yet their role, functions and mandate are distinctly different. Elucidate.

  • India has recently signed to become founding a New Development Bank (NDB) and also the Asian Infrastructure Investment Bank (AIIB) .How will the role of the two Banks be different? Discuss the significance of these two Banks for India.

  • Some of the International funding agencies have special terms for economic participation stipulating a substantial component of the aid to be used for sourcing equipment from the leading countries. Discuss on merits of such terms and if, there exists a strong case not to accept such conditions in the Indian context.

  • WTO is an important international institution where decisions taken affect countries in profound manner. What is the mandate of WTO and how binding are their decisions? Critically analyse India’s stand on the latest round of talks on Food security.

  • The aim of Information Technology Agreements (ITAs) is to lower all taxes and tariffs on information technology products by signatories to zero. What impact should such agreements have on India’s interests?

  • Discuss the impediments India is facing in its pursuit of a permanent seat in UN Security Council.