South Korea retaliated against India’s decision to impose quantitative restrictions on isopropyl alcohol (IPA) imports. In this article, we discuss this development from the point of view of the IAS exam. This topic finds relevance in the economy as well as international relations segments.
South Korea to Hit Back Against Import Restrictions on IPA
In response to India’s decision to put national quantitative restrictions on imports of isopropyl alcohol (IPA), South Korea has announced measures to raise import levies on a number of Indian items.Â
- The action comes in response to a notification by India’s Directorate General of Foreign Trade, which on March 31, 2023, placed quantitative limitations on IPA as a permanent safety measure.Â
- The actions India outlined, according to South Korea, were in conflict with both India’s responsibilities under GATT 1994 and the Agreement on Safeguards.Â
- The proposed suspension of essentially equivalent concessions and other GATT 1994 requirements will manifest as a rise in duty on a number of Indian-origin products.
What is isopropyl alcohol (IPA)?
- Isopropyl alcohol (IPA) is a significant ingredient in the manufacture of hand sanitisers.
- IPA is typically used as a cleaning solvent to remove various soils from a number of substrates.
- IPA is frequently used to dissolve and remove light oils, fingerprints, cutting fluids, flux residues, carbon deposits, and mould release. It dissolves a wide variety of polar and non-polar soils.Â
- It can be used as a drying agent as well because it is easily miscible in water.
About GATT
- The General Agreement on Tariffs and Trade is referred to as GATT.
- India, one of the GATT’s founding members, was one of the 23 nations that signed it in 1947.
- GATT’s goal was to advance global commerce through a variety of initiatives, including:
- lowering different taxes, quotas, and subsidies
- keeping meaningful rules in place
Know more about GATT here.
South Korea to Hit Back Against Import Restrictions on IPA:- Download PDF Here
| Related Links | |||
| World Trade Organisation | WTO Agreements | ||
| TRIPS | Agreement on Agriculture | ||
| Trade Facilitation Agreement | India – South Korea Relations | ||
Comments