21-Dec-2019: United States-Mexico-Canada Agreement — the replacement for NAFTA
The House of Representatives has passed the United States-Mexico-Canada Agreement — the replacement for NAFTA, or the 1994 North American Free Trade Agreement. The new deal includes stronger labor and environmental provisions. American labor groups have backed the new trade deal.
It’s basically NAFTA 2.0, with major changes on cars and new policies on labor and environmental standards, intellectual property protections, and some digital trade provisions. The changes include:
- Country of origin rules: Automobiles must have 75% of their components manufactured in Mexico, the US, or Canada to qualify for zero tariffs (up from 62.5 percent under NAFTA).
- Labor provisions: 40 to 45 percent of automobile parts have to be made by workers who earn at least $16 an hour by 2023. Mexico has also agreed to pass laws giving workers the right to union representation, extend labor protections to migrant workers, and protect women from discrimination. The countries can also sanction one another for labor violations.
- US farmers get more access to the Canadian dairy market: The US got Canada to open up its dairy market to US farmers, which was a big issue for Trump.
- Intellectual property and digital trade: The deal extends the terms of copyright to 70 years beyond the life of the author (up from 50). It also extends the period that a pharmaceutical drug can be protected from generic competition.
- It also includes new provisions to deal with the digital economy, including prohibiting duties on things like music and e-books, and protections for internet companies so they’re not liable for content their users produce.
Sunset clause: The agreement puts in a 16-year “sunset” clause — meaning the terms of the agreement expire, or “sunset,” after a set period of time. The deal is also subject to a review every six years, at which point the US, Mexico, and Canada can decide to extend USMCA.
NAFTA is the initialism for the North American Free Trade Agreement, an agreement signed by Canada, Mexico, and the United States that reduced or eliminated trade barriers in North America. (Since the U.S. and Canada already had a free trade agreement (signed in 1988), NAFTA merely brought Mexico into the trade bloc.)
Negotiations for the trade agreement began in 1990 under the administration of George H.W. Bush and were finalized under Bill Clinton’s presidency in 1993. The agreement went into effect on January 1, 1994.
In 1993 the European Union (EU) created a “single market”—one territory without any internal borders or other regulatory obstacles to the free movement of goods and services. This allowed every country and business in the EU to have access to more than 500 million consumers. NAFTA, which was approved that same year, was designed to have a similar effect, providing a way to allow the exchange of goods and services to flow more freely across national borders without the artificial restrictions. NAFTA provided for progressive elimination of all tariffs on any goods qualifying as North American. The deal also sought to protect intellectual property, establish dispute-resolution mechanisms, and, through corollary agreements, implement labor and environmental safeguards.
NAFTA was controversial when first proposed, mostly because it was the first [free trade agreement] involving two wealthy, developed countries and a developing country. Some people felt that allowing free trade with a developing country provides an incentive for U.S-based business to move their operations to that country.
Since its implementation NAFTA has remained a prime target of trade protectionists (those who advocate taking measures such as taxing imports to “protect” domestic industries from foreign competition).
18-Nov-2019: Inauguration of KPCS Plenary 2019
The Plenary meeting of the Kimberley Process Certification Scheme (KPCS) is being hosted by India, the present Kimberley Process (KP) Chair, from 18th to 22nd November, 2019 in New Delhi. The Plenary meeting was inaugurated by Commerce Secretary, Dr. Anup Wadhawan. Speaking on this occasion Commerce Secretary said that India, as a founding member of KP, has been actively involved in the development of KP as an important protocol in trade of diamonds which has ensured that 99.8% of the diamonds in the world are conflict free. He further added that we need to keep KP efficient and effective as a process to maintain this conflict diamond free status. He informed the gathering that India is committed to make this process stronger in terms of further strengthened administration and implementation, efficient in terms of delivery of what it promises, more transparent and empathetic towards the living standards of people who are dependent on the production, trade and manufacture of diamonds.
India has given leadership to address the issue of differentiation between Natural Diamonds and Lab Grown Diamonds and will take further initiatives to have better differentiation and ensure responsible business on this front. India is sensitive to the issues and challenges of artisanal and small scale mining and acknowledges the contribution made by the KP members, observers and agencies for their upliftment. We need to continue supporting artisanal and small scale mining countries with capacity building, technical assistance and education on valuation, differentiation between Natural and Lab Grown diamonds, importance of legal and formal mining practices.
Currently, India exports around USD 24 billion cut and polished diamonds. It is expected that India will reach an export target of USD 1 trillion in coming years and the gem and Jewellery sector particularly cut and polished diamonds will contribute significantly to achieve this target.
The importance of KPCS is immense to India as more than one million people are directly employed by the diamond industry. The industry also plays pivotal role in sustaining livelihoods of these people.
During the inaugural session meetings of different working groups and committees of Kimberley Process Certification Scheme (KPCS) were held. Three special forums regarding Financial inclusion and women empowerment through sustainable livelihood creation, Diamond industry - Adapting to change, Diamond origin and identification were also held during the Plenary meeting.
India is one of the founder members of Kimberley Process Certification Scheme and is the Chair of Kimberley Process for the year 2019. India had earlier chaired KPCS in the year 2008. Additional Secretary, Department of Commerce, B.B. Swain, has been designated as KP Chair 2019 and Ms. Rupa Dutta, Economic Adviser, Department of Commerce has been designated as India’s KP Focal Point.
The closing session of the KPCS will be held on 22nd November 2019 in New Delhi and India will hand over the KP Chair to the Russian Federation.
The Kimberley Process is a joint initiative involving Government, International Diamond Industry and Civil Society to stem the flow of Conflict Diamonds. “Conflict Diamonds” means rough diamonds used by rebel movements or their allies to finance conflict aimed at undermining legitimate governments. It is also described in United Nations Security Council (UNSC) resolutions.
In 1998, certain rebel movements in Africa (Sierra Leone, Angola, D.R. of Congo, Liberia) were selling, among other things, illegally obtained diamonds – known as conflict diamonds – to fund their wars against legitimate governments. With a view to find ways to stop trade in conflict diamonds, world’s diamond industry, United Nations, Governments and leading NGOs came together and in November 2002 at Interlaken, where the final draft of the Kimberley Process measures were ratified by more than fifty nations. The KPCS came to into effect from 1st January, 2003 and evolved into an effective mechanism for stopping the trade in conflict diamonds.
At present, KPCS has 55 members representing 82 countries including EU with 28 members. The Kimberley Process is chaired, on a rotating basis, by participating countries. KP Vice-Chair is generally elected by KP Plenary each year who becomes the Chair in the next year. India is the current Chair of KPCS with Russian Federation as Vice Chair for the year 2019.
In accordance with the KP Core document, the work of the Kimberley Process is carried out through its seven Working Groups and Committees, which discuss issues on regular basis through teleconferences and exchange of mails, and meet twice in a year for in-person meeting at Intersessional and Plenary meetings organized by KP Chair. Further, based on requirement, other in-person meetings can also be organized by Working Group Chair. The KPCS works on principle of consensus and all the decisions are taken in Plenary session or through written procedure unanimously by all members.
As per the Scheme, each shipment of rough diamonds being exported and imported by crossing an international border be transported in a tamper proof container and accompanied by a validated Kimberley Process Certificate. The shipment can only be exported to a co-participant country in the KPCS. No uncertified shipments of rough diamonds are permitted to enter a participant country.
Since 2003, India has been actively participating in the KPCS process and is a member of all Working Groups of KP (except for WGAAP). Department of Commerce is the nodal Department and Gem & Jewellery Export Promotion Council (GJEPC) is designated as the KPCS Importing and Exporting Authority in India. GJEPC is responsible for issuing KP Certificates and is also the custodian of KP Certificates received in the country.
14-Jun-2019: Kimberley Process Intersessional Meeting 2019 in Mumbai
The Intersessional meeting of Kimberley Process (KP) is being hosted by India from 17th to 21st June, 2019 in Mumbai. Besides meetings of different Working Groups and Committees of the Kimberley Process Certification Scheme (KPCS), two special forums regarding Diamond Terminology and Artisanal Mining – Small Steps to Larger Outcomes, will be held during the Intersessional. Around 300 delegates from the Government of India and other participating countries, industry and civil society will be attending the five-day Meeting.
India and the KPCS: India is one of the founder members of Kimberley Process Certification Scheme and is the Chair of Kimberley Process for the year 2019 with Russian Federation as Vice Chair. India had earlier chaired KPCS in the year 2008. Alok Vardhan Chaturvedi, Director General, Directorate General of Foreign Trade, has been designated as KP Chair 2019 and Rupa Dutta, Economic Adviser, Department of Commerce, is India’s KP Focal Point.
At present, KPCS has 55 members representing 82 countries including EU with 28 members. The Kimberley Process is chaired, on a rotating basis, by participating countries. KP Vice-Chair is generally elected by KP Plenary each year, who becomes the Chair in the next year.
Since 2003, India has been actively participating in the KPCS process and is a member of all Working Groups of KP (except for Working Group on Artisanal and Alluvial Production, WGAAP). Department of Commerce is the nodal Department and Gem & Jewellery Export Promotion Council (GJEPC) is designated as the KPCS Importing and Exporting Authority in India. GJEPC is responsible for issuing KP Certificates and is also the custodian of KP Certificates received in the country.
The Kimberley Process is a joint initiative involving Government, international diamond industry and civil society to stem the flow of Conflict Diamonds. Conflict Diamonds means rough diamonds used by rebel movements or their allies to finance conflict aimed at undermining legitimate governments. It is also described in United Nations Security Council (UNSC) Resolutions.
In 1998, certain rebel movements in Africa (Sierra Leone, Angola, Democratic Republic of Congo, Liberia) were selling, among other things, illegally obtained diamonds – known as Conflict Diamonds – to fund their wars against legitimate governments. With a view to find ways to stop trade in Conflict Diamonds, world’s diamond industry, United Nations, Governments and leading NGOs came together and in November 2002 at Interlaken, Switzerland, where the final draft of the Kimberley Process measures was ratified by more than fifty countries. The KPCS came into effect from 1st January, 2003 and evolved into an effective mechanism for stopping the trade in Conflict Diamonds.
Functioning of KPCS: In accordance with the KP core document, the work of the Kimberley Process is carried out through the following six Working Groups and Committees:-
- Working Group on Monitoring (WGM) - Assigned the task of carrying out a review of the working of the scheme in each participant country through review visit/review missions and gives its recommendations.
- Working Group on Statistics (WGS) - Collects data in respect of export, import and production of rough diamonds in the participant countries.
- Working Group on Diamond Experts (WGDE) - Solves technical problems in the implementation of the KPCS like proposing changes to the ‘Harmonised System Codes' for rough diamonds to World Customs Organisation and harmonisation of valuation methodologies.
- Working Group on Artisanal and Alluvial Production (WGAAP) - To promote more effective internal controls on the production and trade of alluvial diamonds.
- Committee on Participation and Chairmanship (CPC) - Assists the Chair of the Kimberley Process in handling the admission of new participants and advises if a participant fail to comply with minimum requirements. It also reviews and assesses candidates for the position of Vice-Chair and presents its recommendation/findings at the plenary meeting. The participant selected as Vice-Chair becomes Chair the following year.
- Committee on Rules and Procedure (CRP) - KP rules and procedure are devised and modified by the Committee.
In addition, an Ad Hoc Committee on Review and Reform (AHCRR) was created in Brisbane, Australia, Plenary of KPCS in 2017, with India as its Chair, to review the KPCS core document and examine ways to enhance administrative and financial support to the Process, including consideration of a Secretariat and a voluntary multi-donor fund to support participation from Least Developed Countries, civil society and experts who implement the work. During the Belgium Plenary 2018, India relinquished chairmanship of AHCRR in view of taking responsibility of KP Chair 2019 and Angola was selected as Chair and Canada as Vice Chair of AHCRR.
The working groups and committees discuss issues on regular basis through teleconferences and exchange of mails, and meet twice in a year for in-person meeting at Intersessional and Plenary meetings organized by KP Chair. Further, based on requirement, other in-person meetings may also be organized by Working Group Chair. The KPCS works on principle of consensus and all the decisions are taken in Plenary session or through written procedure unanimously by all members.
Rough diamond trading under the KPCS: As per the Scheme, each shipment of rough diamonds being exported and imported by crossing an international border be transported in a tamper proof container and accompanied by a validated Kimberley Process Certificate. The shipment can only be exported to a co-participant country in the KPCS. No uncertified shipments of rough diamonds are permitted to enter a participant country.
The Plenary meeting of Kimberley Process is scheduled to be held from 11th to 15th November, 2019 in New Delhi.
30-Nov-2018: Kimberley Process Certification Scheme (KPCS) Plenary 2018
The Kimberley Process Certification Scheme (KPCS) Plenary 2018, was held in Brussels, Belgium, from 12th-16th November 2018. EU handed over the Chairmanship of KPCS to India from 1st January, 2019.
On the concluding day of the Plenary, Ms. Federica Mogherini, High representative for Foreign Affairs and Security policy, Vice- President of the European Commission, in the closing ceremony, handed over KPCS Chairmanship to India, from 2019, by passing on the gavel to Commerce Secretary, Dr. Anup Wadhawan.
During his valedictory address, Commerce Secretary, Dr. Anup Wadhawan, said that India as a KP Chair, from 01st January 2019, will be committed to make the KPCS a stronger process in terms of inclusiveness, strengthened administration and implementation, efficient in terms of delivery of what it promises, more transparent and empathetic towards the living standards of people who are dependent on the production, trade and manufacture of diamonds.
He further said that India is sensitive to the issues and challenges of Artisanal & Small-Scale Mining (ASM) and acknowledged the contribution made by the KP members, observers and agencies for the upliftment of ASMs. India, during its Chairmanship will continue with the tradition and aim to support the ASMs with capacity building, technical assistance and education on valuation, differentiation between natural and lab grown diamonds, importance of legal and formal mining practices.
On the sidelines of the Plenary, Chair of Working Groups conducted meetings to discuss some key issues like KP statistics and confidentiality, synthetic diamonds and separate HS code for synthetic rough diamonds, issues relating to review visit and review mission and the issue of Central African Republic (CAR).
The 4-day Plenary also witnessed discussion on environmental challenges in diamond mining and industry responsibility.
During the Plenary session, India held bilateral meetings with Botswana, USA, Russian Federation & World Diamond Council to discuss on various issues related to KPCS and its working groups.
India is the founding member of KPCS and is actively involved in KP activities to ensure that almost 99% of the diamond trade in the world is conflict free. India is committed to maintain KP as an efficient and effective process in order to ensure the conflict diamond free status. India is at the forefront in addressing the issue of differentiation between Natural Diamonds and Lab Grown Diamonds and ensure responsible business in this area.
India chaired the Ad hoc Committee on Review and Reform (AHCRR): The AHCRR held one joint session with Chairs of other Working Groups and 4 sessions with AHCRR committee members to discuss the issue of funding of Permanent Secretariat (PS), Multi Donor Trust Fund (MDTF), peer review mechanism and consolidation to the core document.
This year was the fifteenth anniversary of KPCS. Since its launch in 2003, the Kimberley Process has contributed towards peace, security and prosperity. It has proven to be an effective multilateral tool for conflict prevention in stemming the flow of conflict diamonds. The Kimberley Process has made valuable developmental impact in improving the lives of most people dependent on the trade in diamonds.
On expansion of scope KP India stated that KPCS has a well-structured process and any issues discussed should be in relation to trade without mixing up with non-trade issues.
The next Intersessional session is slated to be held in India as Chair. Botswana and the Russian Federation will serve as Vice-Chair during the period of 2019-2020.
20-Dec-2017: India to take responsibilities as KP Chair in 2019
A delegation consisting of Government officials and Gem & Jewellery Export Promotion Council (GJEPC) representatives led by Joint Secretary, Department of Commerce, Government of India attended the KP Plenary Session held at Brisbane, Australia from 9-14 December, 2017. In one of a landmark decisions favoring India’s leading position in Diamonds globally, India was appointed as the Kimberly Process (KP) Vice Chair for 2018 & Chair for 2019 in the last plenary held in Dubai in November, 2016. The EU will be KP Chair for 2018.
The Kimberley Process is a joint Government, International Diamond Industry and Civil Society initiative to stem the flow of Conflict Diamonds. “Conflict Diamonds” means rough diamonds used by rebel movements or their allies to finance conflict aimed at undermining legitimate governments. It is also described in the United Nations Security Council (UNSC) resolutions. The KPCS came to into effect from 1st January, 2003 and evolved into an effective mechanism for stopping the trade in conflict diamonds. India is the founding member of KPCS. At present, KPCS has 54 members representing 81 countries including the EU with 28 members. India is one of the founding members of the KPCS and was Chair of the KPCS for the year 2008.
At the Brisbane Plenary, India was selected as Chair for the Ad Hoc Committee on Review & Reforms (AHCRR) to reform the process for the Kimberley Process Certification Scheme. Angola will be the Vice Chair of this Ad-hoc Committee and will work with India and other members of the Committee (which includes Past Chairing countries & Civil Society, WDC, ADPA, DDI etc.) on the Reform issues related to changes in core document, expansion of scope of the KP, permanent secretariat office, multi donor fund issues etc.
The Indian representation at the meet emphasized on the guidelines for reconciliation in the working group on statistics and framework for information sharing in KPCS to eradicate the scourge of forged certificates of KPCS and to make it more secured. India proposed a system of procedure to make the peer review visits more professional and administratively efficient. Members were encouraged for introduction of measures of enforcement like My KYC Bank to enhance responsible sourcing in terms of ensuring financial transparency and giving technological solutions for differentiation between natural and lab grown diamonds by introducing affordable machines for detection to the industry.
1-Nov-2019: Russia says it's already too late to replace new START treaty
Russia said there was no longer enough time left for Moscow and Washington to negotiate a full-fledged replacement for the New START nuclear arms control treaty before it expires in February 2021.
The New START accord is the last major nuclear arms control treaty between the world’s two biggest nuclear powers and limits the number of strategic nuclear warheads they can deploy. The fate of the accord has been in the spotlight since Washington in August pulled out of another landmark strategic arms accord, the Intermediate-Range Nuclear Forces Treaty (INF), citing violations by Russia that Moscow denies.
The treaty can be extended by mutual agreement, but the prospect of that happening is unclear as Washington is not moving quickly and Moscow would need at least half a year to implement any extension agreement. Talks between the United States and Russia had been complicated by Washington proposing that China be made a party to a new accord.
The INF treaty was negotiated by then-U.S. President Ronald Reagan and Soviet leader Mikhail Gorbachev. It banned land-based missiles with a range of between 310 and 3,400 miles (500-5,500 km), reducing the ability of both countries to launch a nuclear strike on short notice.
The demise of the INF treaty put strains on the global arms control architecture erected during the Cold War to prevent an arms race between Washington and Moscow. Last year President Vladimir Putin announced an array of new-generation nuclear-powered missiles. Three of those weapons systems, including the Poseidon underwater nuclear drone and the Burevestnik nuclear-powered cruise missile, did not fall under the new START treaty.
President Donald Trump will decide only next year whether or not to extend the New START treaty. The existing accord was signed by Trump’s predecessor, Barack Obama, in 2010. It also curbs the number of nuclear launchers and deployed land- and submarine-based missiles and nuclear-capable bombers they can have.
8-Jun-2019: Russia prepared to drop START nuclear arms treaty
President Vladimir Putin said Russia was prepared to drop a nuclear weapons treaty with the US and warned of "global catastrophe" if Washington keeps dismantling an international arms control regime. Washington showed no genuine interest in conducting talks on extending the New START treaty which caps the number of nuclear warheads well below Cold War limits. If no-one feels like extending the agreement - New START - well, we won't do it then. We have said a hundred times that we are ready (to extend it). There is no formal negotiating process.
The treaty was signed by US President Barack Obama and Russian counterpart Dmitry Medvedev in Prague in 2010. It expires in 2021. Together with another agreement known as the Intermediate-Range Nuclear Forces (INF) treaty, New START is considered a centrepiece of superpower arms control.
Moscow suspended participation in the INF treaty in March after President Donald Trump's White House announced it would ditch the key agreement for alleged Russian violations of the terms. Putin accused Washington of eroding the global arms control regime by pulling out of the bilateral Anti-Ballistic Missile Treaty in 2002 and then dropping out of the INF treaty in February.
Putin said the potential implications of letting New START treaty expire would be huge, suggesting it could fuel a nuclear arms race.
"We believe that a decision to forego the benefits of New START by failing to extend the agreement would be a serious mistake for strategic stability and US security," said the letter signed by eight lawmakers including Eliot Engel, who chairs the House Foreign Affairs Committee.
At the same time, the Russian president said Moscow would not be afraid of shelving the treaty because it was developing a new generation of weapons that will "ensure Russia's security" in the long term.