Syllabus: GS-III;
Subject: Economic DevelopmentÂ
Topic: effects on industrial growth
Issue: Trade Barriers.
Context: India’s commerce ministry forms a task force to address trade barriers faced by exporters abroad, aiming for greater market access.
Synopsis:
- Aim to enhance market access by tackling issues like lengthy registration requirements and unreasonable standards/rules.
- Focus on improving mutual recognition agreements (MRAs) with different countries to align product standards with importing nations’ requirements.
- Emphasis on ensuring that global standards promote trade and don’t act as non-tariff barriers.
- Global Trade Research Initiative recommends India’s swift action on the removal of non-trade barriers for achieving the one trillion dollar outbound shipment target by 2030.
- Key Indian exports facing high barriers include chilies, tea, rice, meat, fish, and chemicals in various countries.
- Non-tariff measures (NTMs) like regulations, standards, and testing are identified as barriers when arbitrary and beyond scientific justification.
Background:
| What is mutual recognition agreement (MRA)?
·         A Mutual Recognition Agreement (MRA) is a formal agreement between two or more countries or trading partners. It allows them to recognize and accept each other’s standards, regulations, and conformity assessment procedures for specific products or services. ·         By doing so, MRAs aim to facilitate trade and market access by reducing redundant testing, certification, and inspection requirements. |
Conclusion: The Commerce ministry’s task force targets swift resolution of trade barriers for Indian exporters, promoting global trade and market access.
