Q1. 13th Ministerial Conference of WTO, was recently concluded in Abu Dhabi with Abu Dhabi Ministerial Declaration. What are issues faced by global trade in recent times? Discuss issues that were raised by India in the conference, highlighting the successes of the conference? (250 words)
Topic- India and World Trade Organisation:
Introduction:
World is facing significant interruptions in global shipping routes and supply chain in present times. The world’s trade Ministers gathered in the U.A.E. on February 26 for a high-level WTO meeting with no clear prospects for breakthroughs, amid geopolitical tensions and disagreements.
Body :
- World Trade Organisation
- Problem faced by World’s trade in recent times
- Public stockpiling of food grain
- Fisheries Subsidies Agreement at WTO
- Successes of the conference
Conclusion :
The latest meeting of World Trade Organisation (WTO’s) Trade Ministers concluded with little progress in important issues that affects global trade, including agriculture issues raised by India. India has strongly objected to the efforts of developed nations to include environmental or climate change issues at the World Trade Organisation (WTO). Going forward, India will have to redouble efforts to retain policy space for sensitive sectors, especially farms.
UPSC Syllabus India and World Trade Organisation:
Food security bill is expected to eliminate hunger and malnutrition in India. Critically discuss various apprehensions in its effective implementation along with the concerns it has generated in WTO. (2013)
Introduction
World is facing significant interruptions in global shipping routes and supply chain in present times. The world’s trade Ministers gathered in the U.A.E. on February 26 for a high-level WTO meeting with no clear prospects for breakthroughs, amid geopolitical tensions and disagreements.
Body Status :
World Trade Organisation
- The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.
- At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments.
- The WTO’s top decision-making body is the Ministerial Conference.
- Ministerial conferences usually take place every two years.
Problem faced by World’s trade in recent times
- The World Trade Organization and the global trading system are facing serious challenges in terms of unilateral measures and counter measures by some members, deadlock in important areas of negotiations
- Ukraine war, the Israel conflict and issues related to the Red Sea are among the factors which are impacting trade.
- Maritime transport is the backbone of international trade and is responsible for 80% of the global movement of goods.
- Attacks on shipping affecting the Suez Canal add to geopolitical tensions impacting shipping routes in the Black Sea, and severe drought due to climate change disrupting shipping in the Panama Canal.
- India, the United States, and 12 other members of the Indo-Pacific Economic Framework (IPEF) For Prosperity signed a supply chain resilience agreement that would reduce their dependence on China and mitigate risks of economic disruptions from supply chain shocks.
- Global supply chains face risks from government policies encouraging domestic industries and impeding cross-border goods and capital flows.
- For some time, recalibration in supply chain has been going on to reduce dependence on China.
Public stockpiling of food grain
- Developed countries have raised flags over India’s food security programmes, such as buying rice and wheat from farmers at a government-administered price for distribution through public ration shops.
- India has pitched for changes in the formula to calculate the food subsidy cap and inclusion of programmes implemented after 2013 under the ambit of the ‘Peace Clause’.
- The WTO members at the Bali ministerial meeting in December 2013 had agreed to put in place a mechanism popularly called the ‘Peace Clause’ and committed to negotiating an agreement for a permanent solution.
Fisheries Subsidies Agreement at WTO
- The fisheries subsidies agreement was agreed upon by the WTO in 12th Trade Ministerial meeting
- It prohibits subsidies for Illegal, Unreported and Unregulated (IUU) fishing and overfished stocks.
- It also restricts subsidies for fishing on the high seas, outside the jurisdiction of coastal countries and Regional Fisheries Management Organization
- India still has to ratify the agreement, which requires the approval of two-thirds of the WTO’s 164 members to become operational.
- As per India, there are several ambiguities on the proposals that were on the table.
- Some of the subsidies that certain countries give to their resource-poor fishermen were sought to be excluded.
- India has been steadfastly demanding that developing countries be given a longer transition period of 25 years to put an end to OCOF subsidies within their EEZ.
Successes of the conference
- The 13th World Trade Organisation (WTO) Ministerial Conference (MC13) of the World Trade Organisation (WTO) has concluded with the acceptance of the Abu Dhabi Ministerial Declaration.
- India with help of South Africa and other nations was able to block a China-led Investment Facilitation for Development Agreement(IFDA) from being integrated into the WTO as a plurilateral agreement.
- IFDA aimed to create legally binding provisions for facilitating investment flows, and it requires states to augment regulatory transparency and predictability of investment measures.
- India, South Africa and others opposed it because it was a joint statement initiative and did not have a ministerial mandate.
- On e-commerce, members agreed to extend the moratorium on customs duties on electronic transmissions for another two years, meaning that trade in purely digital products and services will remain tariff-free until MC14 in Cameroon.
- Members agreed to implement Special and Preferential Treatment on Sanitary and Phytosanitary measures (SPS) and Technical Barriers to Trade (TBT), which supports producers in least developed countries (LDCs) in gaining better access to global supply chains.
- An agreement to fulfil the MC12 mandate to achieve a fully and well-functioning Dispute Settlement system by the end 2024 was signed.
- MC13 saw the accession of two new WTO Members, with Comoros and Timor-Leste becoming the 165th and 166th members of the body – and the first new Members since 2016.
Way Ahead
- The WTO itself must do much more to stay relevant in an increasingly polarised world
- India is pushing for forging consensus with like-minded countries at the World Trade Organization (WTO) to prevent entry of non-trade issues such as environment and sustainability into the trade negotiations.
- However, there is a need for structural reform in the WTO functioning as a multilateral trading system, like decision-making within the organization based on rational and non-partisan principles
- There is a need to make WTO more effective in protecting the interests of small nations against stronger countries.
Conclusion
The latest meeting of World Trade Organisation (WTO’s) Trade Ministers concluded with little progress in important issues that affects global trade, including agriculture issues raised by India. India has strongly objected to the efforts of developed nations to include environmental or climate change issues at the World Trade Organisation (WTO). Going forward, India will have to redouble efforts to retain policy space for sensitive sectors, especially farms.
Q2. ‘Process of core-loading in the indigenous prototype fast breeder reactor (PFBR) was started at the Madras Atomic Power Station in Kalpakkam recently.’ In light of the above statement, discuss working and challenges of prototype fast breeder reactor. State the significance of operationalisation of the PFBR in India’s three-stage nuclear power programme. (250 words).
Topic- India’s nuclear power programme :
Introduction
India’s nuclear power program is aimed to meet the twin goals of energy security and sustainable development. Today nuclear power has a new lease of life as country is looking to decarbonise, reduce its import of fossil fuels, and give its renewables sector more space. Thus, core-loading of prototype fast breeder reactor (PFBR) in recent times is a good start.
Body
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- Background
- About Prototype Fast Breeder Reactor (PFBR)
- Fuels of PFBR
- Advantages of PFBR
- Challenges of FBRs
- Why was the PFBR delayed?
- India’s Three-Stage Nuclear Power Programme
Conclusion
The growth of the Indian nuclear power program is imperative to meet the twin goals of energy security and sustainable development. As a responsible nuclear power with advanced technology, India remains committed to expand peaceful applications of nuclear technology, both in power and non-power sector, while ensuring the security of nuclear and radiological materials.
UPSC Syllabus India’s nuclear power programme:
Why was this question asked?
Q. With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy. [UPSC Main 2018]
Introduction:
India’s nuclear power program is aimed to meet the twin goals of energy security and sustainable development. Today nuclear power has a new lease of life as country is looking to decarbonise, reduce its import of fossil fuels, and give its renewables sector more space. Thus, core-loading of prototype fast breeder reactor (PFBR) in recent times is a good start.
Body Status
Background
- On March 4, Prime Minister Narendra Modi witnessed the start of the process of core-loading the indigenous prototype fast breeder reactor (PFBR) at the Madras Atomic Power Station in Kalpakkam, Tamil Nadu.
- Upon completion of the core loading, the first approach to criticality will be achieved, leading to generation of power subsequently
- In spirit of Aatmanirbhar Bharat, PFBR is indigenously designed and constructed by BHAVINI with contribution from more than 200 Indian industries including MSMEs
About Prototype Fast Breeder Reactor (PFBR)
- Government had approved in 2003, the creation of Bhartiya Nabhikiya Vidyut Nigam Ltd (BHAVINI) to construct and operate India’s most advanced nuclear reactor-Prototype Fast Breeder Reactor (PFBR).
- PFBR has been fully designed and constructed indigenously by BHAVINI with significant contribution from more than 200 Indian industries including MSMEs.
- Once commissioned, India will only be the second country after Russia to have commercial operating Fast Breeder Reactor.
Fuels of PFBR
- The Fast Breeder Reactor (FBR) will initially use the Uranium-Plutonium Mixed Oxide (MOX) fuel.
- The Uranium-238 “blanket” surrounding the fuel core will undergo nuclear transmutation to produce more fuel, thus earning the name ‘Breeder’.
- The use of Throium-232, which in itself is not a fissile material, as a blanket is also envisaged in this stage.
- By transmutation, Thorium will create fissile Uranium-233 which will be used as fuel in the third stage.
- FBR is thus a stepping stone for the third stage of the program paving the way for the eventual full utilization of India’s abundant thorium reserves.
Advantages of PFBR
- In terms of safety, the PFBR is an advanced third generation reactor with inherent passive safety features ensuring a prompt and safe shut down of the plant in the event of an emergency.
- Since it uses the spent fuel from the first stage, FBR also offers great advantage in terms of significant reduction in nuclear waste generated, thereby avoiding the need for large geological disposal facilities.
- Upon completion of the core loading, the first approach to criticality will be achieved, leading to generation of power subsequently.
- Notably, despite the advanced technology involved, both the capital cost and the per unit electricity cost is comparable to other nuclear and conventional power plants.
Challenges of FBRs
- FBRs are harder to handle than other reactor designs.
- Further, the civilian nuclear programme’s nodal regulatory body, the Atomic Energy Regulatory Body (AERB), was set up by executive order and reports ultimately to the DAE secretary. In 2015, the International Atomic Energy Agency urged India to set up an independent statutory atomic regulator instead.
- Nuclear Safety Regulatory Authority (NSRA) Bill sought to replace the AERB with the NSRA. But it was criticised for allowing the Union government too much control over the NSRA’s composition.
- The thorium fuel cycle produces caesium-137, actinium-227, radium-224, radium-228, and thorium-230, which are all radioactive in ways that complicate their handling and storage.
Why was the PFBR delayed?
- The PFBR in India has been associated with numerous delays, cost overruns, and broken promises, and has accrued many critics.
- The fast breeder test reactor (FBTR) at Kalpakkam, a testing ground for PFBR technologies was built by 1977 but sanctions against India’s ‘Smiling Buddha’ nuclear test forced the use of a mixed carbide fuel over enriched uranium (which France was to deliver).
- The mixed carbide fuel lowered the power output and changed operating conditions.
- The Indira Gandhi Centre for Atomic Research (IGCAR), Kalpakkam, designed the PFBR. Its original cost was Rs 3,492 crore and the original deadline, 2010.
- Even by 2019, its cost had also ballooned to Rs 6,800 crore.
India’s Three-Stage Nuclear Power Programme
- India’s three-stage nuclear power programme was formulated by Homi Bhabha in the 1950s.
- The ultimate focus of the programme is on enabling the thorium reserves of India to be utilized in meeting the country’s energy requirements.
- However, at present thorium is not economically viable because global uranium prices are much lower.
- In the first stage of the programme, natural uranium fuelled pressurized heavy water reactors (PHWR) produce electricity while generating plutonium-239 as by-product.
- In the second stage, fast breeder reactors (FBRs) would use plutonium-239, recovered by reprocessing spent fuel from the first stage, and natural uranium. In FBRs, plutonium-239 undergoes fission to produce energy, while the uranium-238 present in the fuel transmutes to additional plutonium-239.
- A Stage III reactor or an Advanced nuclear power system involves a self-sustaining series of thorium-232-uranium-233 fuelled reactors.
Conclusion
The growth of the Indian nuclear power program is imperative to meet the twin goals of energy security and sustainable development. As a responsible nuclear power with advanced technology, India remains committed to expand peaceful applications of nuclear technology, both in power and non-power sector, while ensuring the security of nuclear and radiological materials.