Daily Current Affairs Quiz11 March, 2025 International Affairs 1. India U.S. Bilateral Trade Agreement (BTA) Context: On February 13, 2025, during Indian Prime Minister Narendra Modi’s visit to the United States, the two nations agreed to start negotiations for a Bilateral Trade Agreement (BTA) by fall of 2025.While the details regarding the scope and provisions of the BTA remain vague, it contemplates the BTA to have a multisector perspective rather than to be one primarily oriented toward the liberalization of trade, a feature of the FTA.The agreement would be bilaterally permissible under WTO trade laws, and with respect to India and the U.S., both being members of WTO, especially the General Agreement on Tariffs and Trade (GATT), whatever concerns compliance with WTO trade laws. Key Legal Considerations Under WTO Law Most Favoured Nation (MFN) Principle & Free Trade Agreements (FTAs) Interim Agreements Under GATT The Enabling Clause: Preferential treatment for developing countries Challenges & Compliance with WTO Law The India U.S. BTA will have to be drawn up strictly with a view to WTO conformity as an FTA or at least as a genuine interim agreement. Any selective reductions involved without adherence to the standards set out by the WTO may trigger the legal challenges raised against these reductions. 2. India on Tariff Reduction Claims by the US Context: The Indian government denied making any commitment on a tariff reduction in the face of US President Donald Trump’s assertion. Discussions continue since India wants an extended time frame until September 2025 to negotiate the Bilateral Trade Agreement (BTA). Selective Tariff Reductions Possible India’s Trade with the US is Different Than With Canada and Mexico Challenges Against US Claims Inputs Made to the Parliamentary Panel In its negotiations, India stands steadfast to pursue its terms, keeping in mind the protection of strategic sectors like dairy. Despite the pressure from the US, India would insist that tariff reductions would be bilaterally negotiated, and there is no confirmed deadline of April 2. 3. US Economic Outlook & Trump’s Trade Policies (2025) Policy Indecision & Market Confusion Rising Tension Surrounding the Imminent Recession Market Sentiment Transition Response of Trump to Recession Risks Global & Industry Effects The rising potential for recession in the US economy increases as Trump’s trade policies continue to usher uncertainty. Markets are adjusting completely to new economic expectations, and businesses must prepare themselves for effects that may take place as far as a downturn goes. 4. China’s Deflation Crisis Why in News? Even though policymakers in Beijing may be putting up a sanguine show, not all is well with China’s economy. Its latest official data reveals that prices in China fell 0.7% from a year earlier in February, marking the first time in more than a year that the economy is in the grip of deflation. Economic Indicators Signaling Deflation What is Deflation? Impact of Deflation Positive Effects Negative Effects Why Deflation is a Concern China’s Policy Response China’s Delicate Balancing Act UPSC Prelims PYQ Q. Which one of the following statements is an appropriate description of deflation? (2010) (a) It is a sudden fall in the value of a currency against other currencies (b) It is persistent recession in both the financial and real sectors of economy (c) It is persistent fall in the general price level of goods and services (d) It is a fall in the rate of inflation over a period of time Ans: (c) Source: Mint National Affairs 1. Obesity in India Context: An analysis of the earnings data for salaried workers, casual labourers, and self-employed persons from Periodic Labour Force Survey (PLFS) reports shows that when adjusted for inflation, wages for salaried workers in India have stagnated since 2019. Tackling Obesity in India Background Food Labelling and Advertisement Dilemmas Flawed Labelling System Problems of INR System Weak Advertising Regulations Recommendations: The Way Forward Source: The Hindu 2. Global Arms Trade Trends (2020-2024): SIPRI Report Context: Ukraine, involved in a war with Russia for the past four years, was the largest importer of major arms in the world in the 2020-24 period, clocking a nearly hundredfold rise in imports compared with the figures for 2015-19. Key Highlights India’s Arms Imports: Changing Trends Global Arms Export & Import Trends Ukraine’s Arms Imports Conclusion Source: The Hindu 3. Ultra-High Energy Particles in Space Key Discovery Understanding Shock Waves in Space Key Findings from Space Missions The Electron Injection Problem Solved? Implications for Cosmic Ray Research Next Steps Source: TH 4. The Challenges of Tribunalization in India What is a Tribunal? A tribunal is a person or institution that has the authority to settle disputes or claims. Tribunals can be used to resolve administrative or tax-related disputes. In India, tribunals are quasi-judicial bodies that are an alternative to the traditional court system.  Tribunals: A Solution That Hasn’t Delivered Key Challenges Across Tribunals A. Overburdened & Inefficient Tribunals B. Judicial Intervention: Undermining Tribunal Authority C. Economic & Legal Ramifications Core Issues Behind Tribunal Inefficiency A. Poor Selection & Lack of Infrastructure B. Lack of Structural Oversight C. Appeal System Undermines Finality Potential Reforms & Solutions A. Strengthening Tribunal Autonomy B. Improving Efficiency & Reducing Backlogs C. Overhauling Appointment Process D. Addressing Government Apathy Tribunals were meant to fast-track justice, but inefficiency, poor oversight, and excessive judicial intervention have made them part of the problem. Without structural reforms, better appointments, and stronger independence, tribunalization will remain an incomplete solution rather than a true alternative to courts. Banking/Finance 1. SEBI’s Proposed Short selling Reforms What is Short Selling? Short selling is a trading strategy in which a trader aims to profit from a decline in a security’s price by borrowing shares and selling them, hoping the stock price will then fall, enabling them to purchase the shares back for less money. Abrogation of Short Sale Reports Alteration to the Delivery and Settlement Regime Modifications to Penalties and Enforcement Reasons for the Changes What Comes Next? If adopted, SEBI’s proposed amendments will enhance liquidity and efficiency in the market due to an expansion in the options available for short