Daily UPSC Prelims Current Affairs – August 08, 2022 [Mock Test]
August 8, 2022 August 8, 2022
1. Which of the following countries are member countries of recently launched Indo-Pacific Economic Framework?
- Fiji
- Malaysia
- India
- Vietnam
Select the correct answer using the codes given below:
[A] Only 3
[B] Only 2 & 3
[C] Only 2, 3 & 4
[D] 1, 2, 3 & 4
Show Answer
Correct Answer: D [1, 2, 3 & 4]
Notes:- Member countries of the U.S.-led economic grouping, Indo-Pacific Economic Framework (IPEF)are Australia, Brunei, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Vietnam, the United States and Fiji.
2. Consider the following statements on Indo-Pacific Economic Framework (IPEF) and Regional Comprehensive Economic Partnership (RCEP):
- Both RCEP and IPEF are free trade agreement.
- IPEF will not pursue tariff liberalisation.
- Advance labour and environment standards are not part of the RCEP.
Which of the statements given above is/are correct?
[A] Only 2
[B] Only 1 & 3
[C] Only 2 & 3
[D] Only 3
Show Answer
Correct Answer: C [Only 2 & 3]
Notes:- There are 11 members of the IPEF—Australia, Brunei, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, Vietnam—that are in the RCEP.
- RCEP is a free trade agreement (FTA) based on ASEAN-centrality. It has brought together all the countries with who ASEAN has bilateral FTAs, except India, who did not join it. The IPEF, on the other hand, while emphasising the importance of ASEAN and Southeast Asia in its pronouncement, is not an ASEAN FTA.
- The IPEF will not pursue tariff liberalisation, one of the key goals of the RCEP.
- IPEF will focus specifically on supply chains, digital connectivity and clean economy—issues only peripherally addressed by the RCEP.
- The IPEF will also advance labour and environment standards that are not part of the RCEP or other existing ASEAN FTAs.
- The RCEP includes China, and the IPEF includes the US and India—it is a collective of US defence partners and strategic allies. Furthermore, it will work closely with Quad members (US, India, Japan, and Australia) aiming at reducing economic dependency on China in strategic industries.
3. With respect to the Oxfam report, consider the following statements:
- Covid pandemic has created a new billionaire every 30 hours.
- It called for a one-off “solidarity tax”.
- It called for an annual wealth tax on millionaires of two percent, and five percent for billionaires.
Which of the statements given above are correct?
[A] Only 1 & 2
[B] Only 2 & 3
[C] Only 1 & 3
[D] 1, 2 & 3
Show Answer
Correct Answer: D [1, 2 & 3]
Notes:- According to the Oxfam, the Covid pandemic has created a new billionaire every 30 hours and now one million people could fall into extreme poverty at the same pace.
- It said it was time to tax the rich to support the less fortunate.
- Oxfam called for a one-off “solidarity tax” on billionaires’ pandemic windfall to support people facing soaring prices as well as fund a “fair and sustainable recovery” from the pandemic.
- It also said it was time to “end crisis profiteering” by rolling out a “temporary excess profit tax” of 90 percent on windfall profits of big corporations.
- Oxfam added that an annual wealth tax on millionaires of two percent, and five percent for billionaires, could generate $2.52 trillion a year.
