Daily Current Capsules - 4^th JUNE 2019

Economic Issues
US to end preferential trade treatment for India from June 5

Focus Point

• The United States of America (USA) President Donald Trump terminated India's designation as a beneficiary developing nation under the GSP (Generalized System of Preference) trade program w.e.f. 5 June 2019.

What's the NEWS

• In a major blow to India's newly elected government, US President Donald Trump has terminated India's designation as a beneficiary developing nation under the key GSP (Generalised System of Preference) trade programme, with effect from June 5.
• The US government had notified India on March 4, 2019, of its intent to terminate the country's designation. The 60-day notice period ended on May 3.
• Notably, the decision would put additional tariffs burden of over $300 million on the American businesses every year.
• India was the largest beneficiary of the programme in 2017 with $5.6 billion worth of exports to the US being given duty-free status

Know! about Preferential Trade Agreement (PTA)

• These agreements give signing nations special or preferential access to each other's markets, giving a boost to overall trade.
• The Generalized System of Preferences are unilateral, non-reciprocal and non-discriminatory benefits extended by some developed nations to developing countries.
• In the US, the GSP programme - designed to promote economic growth in the beneficiary developing countries - provides duty-free entry for up to 4,800 products from 129 designated beneficiary countries and territories.
• The criteria for inclusion in the GSP programme include factors such as providing the US with equitable and reasonable market access, respecting arbitral awards in favour of US citizens or corporations, combating child labour, providing adequate and effective intellectual property protection, and respecting internationally recognised worker rights, among others.

The overall impact on India

• The bilateral trade between India and the US stood at $74.5 billion in 2017-18, up 15.5 per cent from $64.5 billion in the previous fiscal. However, the numbers are skewed in India's favour.
  
• For instance, India reportedly imported items worth $26.3 billion from the US in FY19 (April-December) but posted a total export of $38.8 billion.
• The GSP withdrawal would not have a significant impact on India's exports to the US since the duty benefit, or savings on import tariffs amounted to only $190 million annually.

Health Reforms
ICMR recommends ban on Electronic Nicotine Delivery Systems (ENDS) including e-cigarettes

Relevance IN - Prelims ( about e- cigarette and about ENDS and steps taken by government to ban them)
What's the NEWS

• Apex research body - Indian Council of Medical Research (ICMR) has recommended a "complete" ban on Electronic Nicotine Delivery Systems (ENDS), including e-cigarettes, saying their use can initiate nicotine addiction among non-smokers.

Know! more about ENDS

• ENDS are devices that heat a solution to create an aerosol, which also frequently contains flavours, usually dissolved into propylene glycol and glycerin.
• There are various types of ENDS devices like e-cigarettes, heat-not-burn devices, vape, e-sheesha, e-nicotine flavoured hookah among others.
• The most common type is an e-cigarette that produces an aerosolised mixture of the flavoured liquids and nicotine, which is inhaled by the user.

Know! about the released white paper

• In a white paper released on World No Tobacco Day, the ICMR said e-cigarettes adversely affects the cardiovascular system, impairs respiratory immune cell function and airways in a way similar to cigarette smoking and is responsible for severe respiratory disease.
• It also poses risk to foetal, infant and child brain development, the white paper claimed.
• The release of the white paper comes amid a raging debate over the harm reduction aspects of ENDS with some organisations claiming that they help in smoking cessation and are less harmful alternatives to traditional cigarettes.
• The Indian government, is however seeking to ban them stating that they pose health risks to users, that are similar to those of traditional cigarettes.
• The white paper highlighted that there is very limited evidence regarding the impact of ENDS on tobacco smoking cessation, reduction in cigarette use or adverse health effects.

Know! more about the ICMR report

• In 2018 Centre government issued an advisory recommending a ban on sale of e-cigarettes in India. Later a committee headed by K Srinath Reddy of Public Health Foundation of India (PHAI) was constituted which included experts from ICMR, Ministry of Health and Family Welfare, AII India Institute of Medical Sciences (AIIMS), Food Safety and Standards Authority of India (FSSAI) and Post Graduate Institute of Medical Education and Research (PGIMER) in Chandigarh.
• The committee was tasked to analyse more than 300 research articles from all over the world and prepared the white paper.
• It noted that e-cigarettes and other such devices contained not only nicotine solution, that was highly addictive, but also harmful ingredients like flavoring agents and vaporisers.
• Prolonged use of ENDS or e-cigarettes has documented adverse impact on humans which includes DNA damage, respiratory/cardiovascular/ neurological Disorders, carcinogenic/cellular/molecular/immunological Toxicity and even have adverse effects on fatal development and pregnancy.

Miscellaneous Factoids
Ajit Doval reappointed as National Security Adviser, gets Cabinet rank

Relevance IN - Prelims ( about the operations conducted during his tenure)
What's the NEWS

• India's National Security Adviser Ajit Doval has been reappointed to the post for another five years. Ajit Doval has also been given Cabinet Rank for contribution to national security.
• NSA Ajit Doval's quality of work in his previous term has earned him the Cabinet rank in Modi Government 2.0, as per government sources. Previously, Doval was placed in the Minister of State rank.

Know! about Ajit Doval and operations conducted during his tenure

• Ajit Doval, the 74-year-old previously served as the Director of India's Intelligence Bureau (IB). Prior to that, he had served as the head of its operation wing for over a decade.
• He took up the role as India's National Security Adviser in 2014 after retirement from IB. He was appointed after Narendra Modi-led government swept the centre in Lok Sabha Elections 2014.
• India conducted two of its most significant anti-terror operations, the Indian Line of Control strike in September 2016 (Surgical Strike) and 2019 Balakot airstrike, under the supervision of Ajit Doval.
• In September 2016, the Indian Army conducted the surgical strike on Pakistan in the aftermath of the Uri terror attack.
• In February 2019, the Indian Air Force (IAF) conducted airstrikes in Balakot, Pakistan after the Pulwama terror attack on February 14.
• Doval is also credited with solving the Doklam standoff between India and China in 2017 when the two countries were engaged in a bitter deadlock for several months.
  
  

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