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Topic: Effects of liberalization on the economy
6)“Rules based trading system” is the ultimate casualty of the ongoing trade wars between some of the major economies of the world. Discuss.(250 words)
Why this question
One of the biggest news item of the past few days has been the ongoing trade wars with tariffs and counter tariffs being imposed by several major economies including India. Discussing what it signifies and the impact of it is critical.
Key demand of the question
The question mentions that rules based trading system is the casualty. First we have to explain what means. Thereafter, we have to explain how trade wars is impacting rules based trading system. Also mention the counter view that these tariffs reflect a lack of faith in trading norms and are set to escalate. Present your view in conclusion.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer
Introduction – Bring out why this topic is in news.
Body – Explain what rules based trading system means. Highlight how creating a rules based trading system is the chief objective of WTO and, it being the casualty means the lack of faith in WTO and its laws. Post that, discuss why the tariff war is harmful as to ensure free and fair trade it is necessary to abide by the rules of international trade. Highlight how the trade rules are being violated by the tariff war. As an alternate view point, discuss how the present tariff war could be good as trade protectionism is the need of the hour, also that there should be quid pro quo in trade concessions as well as tariff wars.
Conclusion – Discuss the way forward and how India should respond.