Daily News - Monday, 18 November 2024

No progress yet in matters critical to developing nations (Financial Express)

At COP29 in Baku, India criticized developed nations for failing to support climate action in developing countries, emphasizing that financial and technological assistance is essential to combat climate change effectively. India’s deputy lead negotiator, Neelesh Sah, highlighted that developed countries, which have historically contributed the most to global emissions, have delayed climate action, shifted responsibility, and consumed a disproportionate share of the global carbon budget, leaving developing nations to address escalating climate impacts with limited resources. India reaffirmed the Mitigation Work Programme’s (MWP) purpose as a supportive mechanism, not a punitive one, and urged that it respects national goals and the principles of the Paris Agreement, rejecting attempts to impose top-down mandates on vulnerable economies. 

⁠Joining RCEP will hurt India more than China FTA: GTRI (Financial Express)

⁠Calls for India to join the Regional Comprehensive Economic Partnership (RCEP) have resurfaced, but a report by the Global Trade Research Initiative (GTRI) warns that doing so could result in significant trade disadvantages, particularly due to an influx of Chinese goods via other RCEP nations. While proponents argue that RCEP’s access to 30% of global trade could benefit India, GTRI notes that India already has free trade agreements (FTAs) with 13 of the 15 RCEP members, limiting additional advantages while exposing India to increased trade deficits, as seen in ASEAN, Japan, and South Korea’s growing deficits with China post-RCEP. Furthermore, India’s lack of integration into regional value chains despite existing FTAs suggests that RCEP membership is unlikely to deliver meaningful economic gains but could instead worsen India’s trade imbalances. 

⁠India-Oman proposed FTA hits deadlock (Business Standard)

Negotiations for the proposed India-Oman Free Trade Agreement (FTA) have stalled as Oman has requested revisions to India’s market access offer, particularly concerning petrochemical products like polyethylene and polypropylene, which currently face a 7.5% import duty in India. Revising the offer would require restarting inter-ministerial consultations, a move India is reluctant to take given its cautious stance on FTAs following increased imports of precious metals and food items under the India-UAE FTA signed in 2022. With limited perceived trade benefits from Oman and its GCC ties, India is considering measures such as a tariff rate quota (TRQ) for petrochemical imports but remains hesitant to proceed before ensuring substantial gains from the agreement. 

Tomato prices plunge 22% in a month after October surge (mint)

Tomato prices in India dropped by over 22% to an all-India average of ₹52.35 per kg as of November 14, compared to ₹67.50 per kg a month earlier, due to improved supply and favorable weather conditions, easing pressure from food-led inflation. Despite this, retail inflation surged to 6.2% in November, exceeding the Reserve Bank of India’s tolerance band (2-6%) for the first time since August 2023, largely driven by earlier vegetable price spikes. The government attributed the stabilization of tomato prices to seasonal arrivals from key states like Maharashtra, Gujarat, and Karnataka, improving crop yields after adverse climatic disruptions.