Prelims Focus – 14th March 2024

1.CAROTAR

Recent News:

Thailand raised concerns about India’s custom regulation, CAROTAR, during the ongoing review of the India-ASEAN Free Trade Agreement. ASEAN is an organisation of ten Southeast Asian countries that aims to promote cooperation between governments and enhance economic integration among its members.

Details:

• The CAROTAR rules were implemented in 2020 by the Central Board of Indirect Taxes and Customs in order to regulate domestic importers and prevent fraudulent exemptions under free trade agreements. 
• Previously, a country of origin certificate was sufficient to avail the benefits of FTAs, but this was exploited to evade duties. 
• CAROTAR now requires a Certificate of Origin from the exporter’s state, confirming the product’s origin and a minimum of 35% value addition in the country of origin. 
• The rules aim to prevent countries with FTAs with India from dumping goods in the Indian market. 
• However, concerns have been raised about the increasing trade gap with ASEAN countries and the reliance on intermediate products sourced from ASEAN nations.

2.Blue Leaders alliance

Recent News:

The Blue Leaders alliance organised a meeting in Belgium to discuss biodiversity beyond national jurisdiction.

Details:

• The Blue Leaders alliance consists of 24 countries working together to address threats to the global ocean, such as the climate crisis, overfishing, and pollution. 
• Their main goals include protecting at least 30% of the ocean by 2030 and creating fully protected marine areas in the high seas.
• They are also working towards ratifying the BBNJ Treaty by 2025. 
• India has endorsed the alliance’s objectives but is not a member.

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