Daily Prelims Notes 12 February 2025

February 12, 2025
Posted by: OptimizeIAS Team
Category: DPN

No Comments

Daily Prelims Notes

12 February 2025

Table Of Contents

1. U.S. Tariff Policies on Steel, Aluminium, and Trade Relations with India

Sub :Eco

Sec: Externals sector

Why in News?

U.S. President Donald Trump has announced 25% tariffs on steel and aluminium imports from multiple countries, including Canada, Mexico, and China.
The move is expected to impact global trade dynamics, inflation, and bilateral relations with key U.S. trading partners.
India is also considering lower import duties on U.S. pecan nuts and other farm products to ease trade tensions.

Context and Key Developments

Tariffs on Metal Imports

Steel imports to the U.S. will face a 25% tariff.
Aluminium imports will also be subject to new trade penalties.
Canada, China, and Mexico are the top suppliers to the U.S. for these metals.

Impact of Trump’s Steel Tariff Threat on India

Impact on Indian Industries and Exports

A renewed tariff threat raises concerns over loss of competitiveness and export market contraction for Indian steelmakers. Since, US, a major steel consumer, is crucial for Indian exports.

Rise in Steel Imports & Dumping Risks

Imposition of tariffs by USA is diverting the global steel trade, lead to increase in steel imports into India, may cause price drops and losses for Indian steel producers.
Asian producers (China, Japan, South Korea) may dump excess steel in India, hurting local manufacturers.
Chinese steel imports surged 80% in 2024, causing price pressure for Indian steelmakers.

Impact on Global Trade & Inflation

Currency depreciation concerns: A weaker rupee increases imported inflation risks.
Global trade tensions: Nations like South Korea are worried about how U.S. tariffs on steel & aluminium will affect their industries.
Potential for reciprocal tariffs: Trump hinted at imposing new import duties on products from countries that levy higher tariffs on U.S. goods.

India’s Response and Trade Concessions

India is considering further reducing import duties on farm products to pacify Trump’s tariff stance.
India already reduced duties on pecan nuts from 100% to 30% in early 2023.
During the visit, India will also lobby for restoring India’s preferential trade status under the Generalized System of Preferences (GSP), which was revoked in 2019.
Indian officials stress that duties on U.S. industrial goods exports to India are already low or zero in many cases.

Safeguard Measures – Aim to provide a level-playing field for domestic players in case of a sudden surge in imports.

Various Safeguard Measures available under WTO:

Anti-Dumping Duty: Imposed when a foreign company exports a product at a price lower than its home market value, to protect local industries from unfair competition.
Countervailing Duty: Imposed to counteract subsidies given by foreign governments to their exporters, which distort trade.
Quotas: Limits the quantity of a particular product that can be imported during a set period.
Tariffs: Taxes on imported goods to protect domestic industries or raise revenue.

Overview of GSP (Generalized System of Preferences)

The Generalized System of Preferences (GSP) is a U.S. trade program established on January 1, 1976, under the Trade Act of 1974. It grants preferential tariff treatment to exports from developing countries to promote economic growth.

Key Features:

Duty-Free & Reduced Tariffs – Eligible products from beneficiary countries enjoy lower or zero tariffs in developed markets.
Non-Reciprocal Basis – Traditionally offered without requiring trade concessions from beneficiary countries.
Market Access & Concerns – The U.S. has linked GSP to market access and tariff reductions, altering its non-reciprocal nature.

Objectives of GSP:

Supports economic development by increasing exports from developing nations.
Helps in trade diversification and sustainable growth.

Benefits of GSP for India:

Reduced import duties make Indian products more competitive in the U.S. market.
Helps Indian exporters gain a stronger foothold in the U.S.
Enhances profit margins by lowering costs.

2. Illustrations in the Indian Constitution

Sub :Polity

Sec: Constitution

Context: On February 11, 2025, Parliament witnessed an uproar over the missing 22 illustrations in most copies of the Indian Constitution sold today.

Rajya Sabha Chairman Jagdeep Dhankhar emphasized that the signed copy of the Constitution, which includes the illustrations, is the only authentic version and should be widely promulgated.

The Illustrations

The Constitution was handwritten by calligrapher Prem Behari Narain Raizada.
The illustrations were conceived and implemented in Santiniketan by Nandalal Bose and his team.
The images represent different periods in Indian history, from the Indus Valley civilization to the freedom struggle, including scenes from the Ramayana and Mahabharata.
The diverse geography of India is also depicted, including deserts and the Himalayas.

Creation of Illustrations

Bose was assigned the task in October 1949, just before the final Constituent Assembly session and the signing on November 26, 1949.
Two copies of the Constitution (English and Hindi) bear these paintings and are preserved in a helium-filled case in the Parliament Library.
Bose’s team included artists such as Kripal Singh Shekhawat, A Perumal, and Direndrakrishna Deb Burman.
The Preamble page features intricate designs by Beohar Rammanohar Sinha, while the National Emblem was sketched by Dinanath Bhargava.

Concept of the Artwork

The text and images in the Constitution are not directly correlated.
The illustrations were planned as a broad historical narrative rather than directly illustrating the legal content.
Some planned portraits, like those of Rana Pratap and Ranjit Singh, were omitted due to space constraints.

Historical and Religious References

Indus Valley Civilization: The Bull Seal is the first pictorial representation in Part I.
Hinduism & Jainism:
- A hermitage scene in Part II depicts male ascetics in meditation.
- A serene depiction of Buddha appears in Part V.
- Mahavir is represented in Part VI.
Indian Temples & Architecture:
- Sculptures from Mahabalipuram are illustrated in Part XIII.
Ramayana & Mahabharata:
- Part IV (Directive Principles) depicts Arjun and Krishna before the Mahabharata war.
- Part III (Fundamental Rights) features Ram, Lakshman, and Sita returning from Lanka.

Illustrations of Indian Rulers

Ashoka: Seated on an elephant propagating Buddhism (Part VII).
Vikramaditya: Depicted with musicians and dancers (Part IX).
Rani Lakshmibai & Tipu Sultan: Featured in Part XVI.
Chhatrapati Shivaji & Guru Gobind Singh: Represented in Part XV.

The Freedom Struggle in the Illustrations

Mahatma Gandhi:
- Depicted leading the Dandi March.
- Seen visiting riot-hit Noakhali, welcomed by women and peasants.
Subhas Chandra Bose:
- Featured in Part XIX, saluting the flag as members of Azad Hind Fauj march.
Nehru: Originally planned to be included but was omitted.
Rabindranath Tagore:
- Three landscapes pay homage to him and his composition of the National Anthem.

3. India and 57 Countries Advocate for Inclusive and Sustainable AI

Sub :Sci

Sec: Awareness in AI and computer

Why in News

India, along with 57 other nations, signed a joint statement on “Inclusive and Sustainable Artificial Intelligence for People and the Planet” at the AI Action Summit held in Paris.

Details:

A total of 58 countries, including India, China, Brazil, France, and Australia, endorsed the joint statement.
The declaration emphasizes the promotion of AI accessibility while ensuring trust and safety in its deployment.
India and France co-chaired the summit, reflecting their leadership in AI governance.
Objectives of the AI Statement:
- Encouraging AI innovation by creating favourable conditions for its development.
- Preventing market concentration to ensure fair competition and industrial growth.
- Shaping the future of work and labour markets positively through AI.
- Ensuring AI remains human rights-based, ethical, safe, secure, and trustworthy.
- Addressing global inequalities by assisting developing nations in building AI capacities.
This is the third international AI statement following similar declarations issued after summits in the U.K. and South Korea.
Refer: India’s Role in Shaping AI Governance at the AI Action Summit
The U.S. and the U.K. chose not to sign the joint statement.
U.S. Vice-President’s Perspective: U.S. Vice-President J.D. Vance opposed stringent AI regulations at the summit. Vance warned that excessive AI regulations could stifle innovation and economic transformation.

4. Meghalaya Woman Challenges ART Act’s Age Restriction

Sub :Sci

Sec: Health

Why in News

A woman from Meghalaya has challenged the Assisted Reproductive Technology (Regulation) Act, 2021, which restricts women over the age of 50 from undergoing assisted reproduction. The Meghalaya High Court criticized an Assam-based fertility clinic for failing to cooperate with its directive to form a medical board to assess the petitioner’s eligibility for the procedure.

Assisted Reproductive Technology (Regulation) Act, 2021:

The Assisted Reproductive Technology (Regulation) Act, 2021, was enacted to regulate and supervise ART clinics and banks in India, ensuring the ethical and safe practice of ART services.
ART encompasses all techniques that aim to achieve pregnancy by handling sperm or oocytes outside the human body and transferring the gamete or embryo into a woman’s reproductive system.
This includes procedures like in-vitro fertilization (IVF), gamete donation (sperm or egg), and gestational surrogacy.
The Act constitutes the National Assisted Reproductive Technology and Surrogacy Board to advise the central government on ART-related policy matters, review and monitor the implementation of the Act, and lay down a code of conduct for ART clinics and banks.
State Assisted Reproductive Technology and Surrogacy Boards are established to coordinate the enforcement of policies and guidelines for ART at the state level.
All ART clinics and banks must be registered under the National Assisted Reproductive Technology and Surrogacy Registry.
The National Registry acts as a central database with details of all ART clinics and banks in the country.
Registration is granted only if clinics and banks adhere to specified standards, including specialized manpower, physical infrastructure, and diagnostic facilities.
The registration is valid for five years and can be renewed for subsequent five-year terms.
Eligibility Criteria for Commissioning Parties:
- Married Couples: The couple must be infertile, defined as the inability to conceive after one year of unprotected coitus or having a proven medical condition preventing conception.
- The woman should be between 21 and 50 years of age.
- The man should be between 21 and 55 years of age.
- Unmarried Women: Women above 21 years of age can avail ART services.
Eligibility Criteria for Donors:
- Female Donors: Must be between 23 and 35 years of age. Can donate oocytes only once in their lifetime.
- Male Donors: Must be between 21 and 45 years of age. Can donate sperm up to a maximum of seven times.
Rights of Children Born Through ART:
- Children born through ART procedures are deemed to be the biological children of the commissioning couple or woman.
- They are entitled to all rights and privileges available to natural children under the law.
The Act prohibits:
- Sex selection.
- Sale of human embryos or gametes.
- Use of intermediaries to obtain donors.
Violations can lead to penalties, including fines and imprisonment, depending on the severity of the offense.

5. Panama withdraws from BRI: Why China is hinting at US role

Sub :IR

Sec: Places in news

Context:

Recently, China’s Assistant Foreign Minister Zhao Zhiyuan summoned Panama’s Ambassador to China to protest Panama’s decision not to renew its Memorandum of Understanding (MoU) on the Belt and Road Initiative (BRI).
China also accused the US of using coercion to undermine China’s infrastructure projects.
Panama joined the BRI in 2017 as the first Latin American country, but its decision to not renew the MoU signals a shift in its relationship with China.

Trump’s Claims:

US President Donald Trump has made repeated claims that China is gaining control over the Panama Canal, calling for its return to US control.
Trump alleged that Panama was unfairly charging US ships and that Chinese soldiers were operating the canal, claims that Panama’s President José Raul Mulino denied, emphasizing that there are no Chinese soldiers at the canal and that Panama is open to investments from all countries.

Chinese Influence:

Chinese companies, particularly those like COSCO and the Panama Ports Company (PPC), have significant stakes in the canal.
Since 1997, Panama Ports Company (PPC), a subsidiary of Hong Kong-based Hutchison Port Holdings, has operated two key ports (Balboa and Cristobal) at both ends of the Panama Canal.
The Chinese company China Ocean Shipping (Group) Company (COSCO) is one of the canal’s largest users, and it plays a significant role in the region’s trade. In 2021, PPC’s contract was extended for 25 years, although Panama is currently reviewing the extension.
Notably, COSCO was also given the contract for the $3 billion Chancay Port in Peru, completed last year under the BRI.
The US fears that Chinese control over infrastructure could give China strategic leverage in times of conflict, as Chinese firms are often seen as being aligned with the Chinese government’s interests.

About the canal and its significance:

The Panama Canal, completed in 1914, connects the Atlantic and Pacific Oceans, significantly reducing travel time for ships between these two bodies of water.
It was originally built by the U.S. and operated under American control.
Following the Torrijos–Carter Treaties of 1977, the S. transferred control of the canal to Panama by 1999, but retained the ability to defend it militarily.
The canal remains a vital waterway for global trade, especially for U.S. shipping routes, which increases its geopolitical importance.

About BRI:

The Belt and Road Initiative (BRI), launched by China in 2013, is a global development strategy aimed at enhancing regional connectivity and fostering economic cooperation across Asia, Europe, and Africa.
It seeks to revive the ancient Silk Road trade routes through infrastructure development, trade, and investment.
To finance BRI projects, China offers huge loans at commercial interest rates that countries have to pay within a fixed number of years.
The west has accused China of debt-trapping by extending “predatory loans”that force countries to cede key assets to China.
As of 2024, over 140 countries have joined the BRI, encompassing nearly 75% of the world’s population and more than half of its GDP.