MLC Daily Current Affairs – 03 September 2024

Today in History (September 3^rd, 1783)

The Treaty of Paris was signed by U.S. and British Representatives on September 3, 1783, ending the War of the American Revolution. Based on a1782 preliminary treaty, the agreement recognised U.S. independence and granted the U.S. significant western territory.

Let’s revise

A) What is the primary purpose of an anti-dumping duty?

1. To increase the quantity of foreign imports
2. To rectify the trade distortive effect of dumping and re-establish fair trade
3. To encourage foreign competition in domestic markets
4. To reduce the market value of domestic products

Answer: 2)
Explanation: Anti-dumping duties are designed to correct the negative impact of dumping, which occurs when foreign products are sold at unfairly low prices, thereby restoring fair competition.

B) Who makes the final decision on imposing anti-dumping duties in India?

1. The World Trade Organization (WTO)
2. The Ministry of Commerce
3. The Ministry of Finance
4. The Ministry of Industry

Answer: 3)
Explanation: In India, the Ministry of Finance is responsible for making the final decision on whether to impose anti-dumping duties.

C) Which of the following is a key difference between anti-dumping duties and countervailing duties?

1. Anti-dumping duties are imposed to counter import subsidies, while countervailing duties are for low-priced foreign goods.
2. Countervailing duties are imposed to address subsidies, while anti-dumping duties address unfairly low pricing.
3. Anti-dumping duties are for subsidized goods, while countervailing duties target all imports.
4. There is no difference; both are used interchangeably.

Answer: 2)
Explanation: Anti-dumping duties are used to prevent damage from low-priced foreign goods, while countervailing duties address the negative impact of government subsidies on imported products.

D) What must the government show to take legal action against dumping according to the WTO?

1. Evidence of high prices in the domestic market
2. Evidence of genuine material injury to domestic industries
3. Proof of export subsidies by the foreign government
4. The total number of foreign imports

Answer: 2)
Explanation: The WTO requires evidence of material injury or threat of injury to domestic industries from dumping before legal action can be taken.

E) What does Countervailing Duty (CVD) specifically target?

1. Products sold at a loss
2. Products with high tariffs
3. Products that have received foreign government subsidies
4. Products with high domestic market prices

Answer: 3)
Explanation: CVD is imposed to counter the negative effects of subsidies provided by foreign governments that make imported goods cheaper.

F) Which organization permits the imposition of anti-dumping and countervailing duties?

1. International Monetary Fund (IMF)
2. United Nations (UN)
3. World Trade Organization (WTO)
4. World Bank

Answer: 3)
Explanation: The WTO allows its member countries to impose both anti-dumping and countervailing duties under specific conditions.

G) How does an anti-dumping duty impact domestic consumers?

1. It lowers the price of domestic goods.
2. It increases competition among domestic producers.
3. It can lead to higher prices for domestic consumers.
4. It reduces the quality of domestic products.

Answer: 3)
Explanation: While anti-dumping duties aim to protect domestic businesses, they can also result in higher prices for consumers as the cost of imports increases.

H) What is the effect of a countervailing duty on the price of an imported product?

1. It increases the price to nullify the subsidy advantage.
2. It decreases the price to match domestic goods.
3. It eliminates the need for local production.
4. It lowers the import duty rates.

Answer: 1)
Explanation: Countervailing duties are designed to offset the price advantage that subsidized foreign goods have, thereby increasing their price in the importing country to eliminate the unfair competitive edge.

I) Where is the World Gold Council headquartered?

1. New York
2. Beijing
3. London
4. Singapore

Answer: 3)
Explanation: The World Gold Council is headquartered in London, which serves as its main base of operations.

J) Who are the members of the World Gold Council?

1. Government agencies from around the world
2. Leading gold mining companies
3. Financial institutions specializing in gold investments
4. Nonprofit environmental organizations

Answer: 2)
Explanation: The World Gold Council is a nonprofit association formed by the leading and most forward-thinking gold mining companies, which are its members.

K) When was the Research and Analysis Wing (R&AW) established?

1. 1947
2. 1955
3. 1968
4. 1980

Answer: 3)
Explanation: The Research and Analysis Wing (R&AW) was established in 1968 to handle India’s international intelligence affairs.

L) Under which office does R&AW currently operate?

1. Ministry of Defense
2. Ministry of External Affairs
3. Prime Minister’s Office
4. Ministry of Home Affairs

Answer: 3) Prime Minister’s Office
Explanation: The Research and Analysis Wing (R&AW) operates under the aegis of the Prime Minister’s Office.

M) What type of intelligence does R&AW collect?

1. Only military intelligence
2. Only economic and scientific intelligence
3. Military, economic, scientific, and political intelligence
4. Only domestic political intelligence

Answer: 3)
Explanation: R&AW is responsible for collecting a wide range of intelligence, including military, economic, scientific, and political, through both covert and overt operations.

Summary of Today’s News

Navratna Status

News/context:
Solar Energy Corporation of India Ltd (SECI), a Central Public Sector Enterprise (CPSE) under the Ministry of New and Renewable Energy has been granted the Navratna status by the Ministry of Finance.
Key points about Navratna Status:
• The government categorises all Public Sector Undertakings (PSUs) into three categories, namely

• Maharatna
• Navratna and
• Miniratna

• The Government had introduced the ‘Navratna’ scheme in 1997.
Rules/criteria for Navratna status
• A Public Sector Unit (PSU) should be a Miniratna-I, Schedule ‘A’ company, should have obtained an ‘excellent’ or ‘very good’ MoU rating in three of the last five years, and must have a composite score of 60 in six performance indicators.
• It must report a net profit of more than Rs 5,000 crore for three consecutive years, and
• maintain an average annual turnover of Rs 25,000 crore for three years, or have an annual average net worth of over Rs 15,000 crore for three years.
Advantages
• Financial Independence: They invest up to ₹1,000 crore without seeking approval from the central government.
• Navratna companies are also allowed to invest up to 15% of their net worth on a single project, or 30% of their net worth in a given year, subject to a cap of ₹1,000 crore.
• To incur capital expenditure on purchase of new items or for replacement, without any monetary ceiling.
• To enter into technology joint ventures or strategic alliances.
List of Maharatna CPSEs

1. Bharat Heavy Electricals Limited
2. Bharat Petroleum Corporation Limited
3. Coal India Limited
4. GAIL India Limited
5. Hindustan Petroleum Corporation Limited
6. Indian Oil Corporation Limited
7. NTPC Limited
8. Oil & Natural Gas Corporation Limited
9. Power Finance Corporation
10. Power Grid Corporation of India Limited
11. Steel Authority of India Limited
12. Rural Electrification Corporation Limited
13. Oil India Ltd

Total Navaratna companies are= 25

Ramon Magsaysay Award

Recently, Japanese anime director Hayao Miyazaki was awarded the Ramon Magsaysay Award, popularly known as Asia’s Nobel Prize.
• Hayao Miyazaki is a Japanese animator, filmmaker, and manga artist.
• A founder of Studio Ghibli, he has attained international acclaim as a masterful storyteller and creator of Japanese animated feature films, and is widely regarded as one of the most accomplished filmmakers in the history of animation.
Key points about Ramon Magsaysay Award:

• The Ramon Magsaysay Award is chosen and presented every year.
• Regardless of colour, creed, gender, or nationality, the Award recognises and honours individuals and organisations from all across Asia who have distinguished themselves and generously helped others without seeking public attention.
• Over the last five decades, the medal has been presented to over 300 individuals and organisations. Each year, the foundation’s trustees select the recipients, who are presented with a certificate and a medal with a picture of Ramon Magsaysay.
• The prize is presented in a ceremonial ceremony in Manila, the Philippines’ capital, every year on August 31.
• The inaugural Ramon Magsaysay Awards were given to five individuals and a Philippine-based organisation from India, Indonesia, the Philippines, China (Taiwan), and Sri Lanka.
• The award includes a plaque and a medallion with an embossed image of Ramon Magsaysay facing right in profile, as well as a cash prize.
• Eligibility: Asians who have excelled in their vocations and have a reputation for freely serving others without seeking public acclaim.
• The Ramon Magsaysay Award, Asia’s highest honour, honours the greatness of spirit demonstrated through selfless devotion to Asia’s people.
• The Ramon Magsaysay Award Foundation (RMAF) is in charge of administering the Ramon Magsaysay Award (RMA) (RMAF).
• Each year, the Ramon Magsaysay Awardees are chosen by the RMAF’s board of trustees.