11 March 2025 : The Hindu Editorial Analysis

1. An India-U.S. trade agreement and the test of WTO laws

(Source – The Hindu, International Edition – Page No. – 8)

Free Trade Agreements and WTO Regulations

• WTO follows the Most Favoured Nation (MFN) principle, which means that countries cannot discriminate between trading partners.
• FTAs create exceptions to the MFN principle, but they must cover “substantially all trade” between the involved countries, as required by Article XXIV.8(b) of GATT.
• The proposed BTA between India and the U.S. must eliminate tariffs and trade barriers on a large portion of trade to be legally valid.
• If the BTA reduces tariffs only on select products without extending similar benefits to other WTO members, it will violate WTO regulations.

Interim Agreements as a Legal Pathway

• WTO allows countries to sign an ‘interim agreement’ before finalizing an FTA.
• Under Article XXIV.5 of GATT, an interim agreement must:
  • Be necessary for the formation of an FTA.
  • Have a clear plan and timeline to establish a full FTA, typically within 10 years.
• If India and the U.S. notify the BTA as an interim agreement, it must lead to a full FTA in the future.
• Using an interim agreement to bypass WTO rules without a real intention to form an FTA is legally unacceptable.

The ‘Enabling Clause’ Exception

• WTO allows deviations from MFN rules under the ‘enabling clause’, which grants better market access to developing countries.
• However, the proposed India-U.S. BTA does not fall under this exception because:
  • It involves lowering tariffs for U.S. products rather than supporting developing nations.
  • The Joint Statement confirms that India is reducing tariffs specifically to benefit U.S. interests.

WTO Compliance and Challenges

• The U.S. has previously pursued ‘reciprocal tariffs’, which violate WTO rules by imposing tariffs that match those imposed by other nations.
• WTO principles, such as special and differential treatment (S&DT), allow developing countries to have more flexibility in trade policies.
• Bound tariff rates at WTO limit how high tariffs can be set, and reciprocal tariffs would breach these commitments.
• India must uphold WTO rules and resist any trade policies that go against global trade laws.

Conclusion

• The proposed India-U.S. BTA negotiations present an opportunity for economic cooperation, but they must comply with WTO regulations.
• If structured improperly, the agreement could face legal challenges at the WTO.
• India must ensure that the BTA does not undermine multilateral trade principles and maintains a rules-based trading system. 

2. Flawed food regulations fuel the obesity crisis

(Source – The Hindu, International Edition – Page No. – 9)

Introduction

• A recent economic survey recommends imposing a ‘health tax’ on ultra-processed foods (UPFs) to reduce their consumption.
• The urgency of the problem is evident as one in four adults in India is obese, and a similar proportion is diabetic or pre-diabetic.
• However, weak food marketing regulations and lack of proper labeling may undermine efforts to combat obesity.

Challenges in Implementing Food Regulations

• Since 2017, multiple ministries and the food safety authority have failed to implement planned labeling and advertising regulations.
• Regulations remain unclear, leading to excessive marketing of unhealthy UPFs.
• Despite past commitments, India still does not have front-of-pack warning labels on unhealthy food products.

Problems with the Indian Nutrition Rating System

• The food safety authority proposed a ‘health star’ rating system in 2022, modeled after an unsuccessful international framework.
• This system rates food from half a star (least healthy) to five stars (healthiest), but it has flaws:
  • It allows unhealthy foods to appear healthier than they are.
  • High-fat, salt, and sugar (HFSS) foods receive misleading ratings.
  • A sugary soft drink or a highly processed breakfast cereal may get two or three stars, creating a false sense of healthiness.
• The system was designed under strong industry influence, sidelining scientific input.
• In contrast, effective global models, such as Chile’s warning labels, have successfully reduced UPF consumption.

Inadequate Advertising Regulations

• India has four laws to curb misleading food advertisements, but they remain ineffective.
• Regulations lack clear definitions and thresholds for HFSS or UPFs.
• The Consumer Protection Act classifies misleading advertisements as those hiding important product information.
• However, current food regulations do not require advertisements to disclose sugar, salt, or fat content.
• As a result, advertisements continue to target children and youth without warning about the health risks.

Steps Needed to Strengthen Regulations

• The economic survey suggests stricter labeling and advertising controls.
• Key actions to improve regulations include:
  1. Scrapping the flawed health star rating system and adopting clear warning labels.
  2. Defining sugar, salt, and fat limits for HFSS foods based on established health guidelines.
  3. Closing advertising loopholes by amending or creating a new unified law to regulate UPF promotions.
  4. Launching public awareness campaigns in multiple languages about the risks of UPFs.

Conclusion

• The rising obesity crisis in India is not due to individual failure but weak policies.
• Without strict food regulations, the goal of controlling obesity by 2025 may not be achieved.
• A strong regulatory framework is essential to protect public health, especially for children, over corporate profits.
• Urgent action is needed to ensure the vision of a healthier nation becomes a reality. 

Read more – 10 March 2025 : The Hindu Editorial Analysis