Topic: Government Budgeting.
6.Discuss what are electronic transmissions in global trade? Do you think negative list approach on custom duties on them is a better substitute in protecting the competitiveness?Analyse.(250 words)
Reference: Financial Express
Why this question:
The debate about whether or not to extend the WTO Moratorium on imposing customs duties on electronic transmissions has, to date, narrowly focused on its potential customs revenue implications. Thus the question aims to analyse the approach of the negative list method on custom duties.
Key demand of the question:
The answer must discuss the electronic transmissions in global trade, and the aspects of methods to protect them from competitiveness.
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:
Briefly explain what electronic transmissions are in global trade.
Explain the premise first – that import barriers protect domestic industries from foreign competition, and allow them to grow. A similar thought informs India’s position against a moratorium on customs duties on electronic transmissions at the World Trade Organization (WTO). Present points for and against the negative list approach on custom duties of these electronic transmissions. Take cues from the article and form an opinion.
Conclude with what should be the way ahead.