- Both the countries have agreed to enhance exchanges between their forces with more bilateral exercises and exchanges in the field of technology at a time when India wants to increase domestic defence production.
- The Armies of both nations will hold a joint exercise on anti-terrorism in 2018 for the first time.
- The talks are on to include bilateral training between the two navies and Anti-Submarine Warfare (ASW) training to expand cooperation.
- Both the countries seek to strengthen cooperation between their Air Forces.
Cooperation in Defence and technology
- There will be collaboration between Acquisition, Technology and Logistic Agency (ATLA) and Defence Research and Development Organisation (DRDO) for research in the areas of Unmanned Ground Vehicles and Robotics.
- India-US-Japan successfully undertook this trilateral naval exercise in the Bay of Bengal. This is necessary to maintain freedom of navigation in the South China sea to counter Chinese hegemony.
- Japan has invited India to participate in a Humanitarian Assistance and Disaster Relief (HADR) exercise held by Japan Ground Self Defence Force as an observer.
- 2+2 dialogue between the Foreign Ministries and Defence ministries of both the nations will take place in 2018.
- Japan funds many road projects in the Northeast India to help bridge the gap between the strategically important Northeastern states. This would provide trade routes in the region and give it economic-push.
- Bullet train: Japan is helping India in building bullet trains. It has invested $12 billion for India’s first bullet train from Ahmedabad to Mumbai.
Cooperation in Africa:
- Japan and its banks are cooperating with India for investment in Africa. This is very important so as to counter China’s One Belt One Road (OBOR).
What is an ordinance and who makes it?
- Article 123 of the Indian Constitution grants the President of India to Promulgate Ordinances when either of the two Houses of the Parliament is not in session which makes it impossible for a single House to pass and enact a law.
- Ordinances may relate to any subject that the parliament has the power to make law, and would be having same limitations.
When an ordinance can be issued?
- When legislature is not in session.
- When immediate action is needed: Here the Supreme Court has clarified that the legislative power to issue ordinances is ‘in the nature of an emergency power’ given to the executive only ‘to meet an emergent situation’.
How parliament exercises control over ordinance making power of President?
- The constitution provides two parliamentary checks vis-a-vis the promulgation of ordinance [Art 123(2) (a)]:
- The power of parliament to pass resolutions disapproving the provisions of the ordinance.
- The automatic expiry of the ordinance within six weeks of the reassembly of the houses of the parliament unless passed by the parliament; this gives a chance for the parliament to debate on the ordinance and review it accordingly.
Ordinance making powers of the Governor
- Just as the President of India is constitutionally mandated to issue Ordinances under Article 123, the Governor of a state can issue Ordinances under Article 213, when the state legislative assembly (or either of the two Houses in states with bicameral legislatures) is not in session.
- The powers of the President and the Governor are broadly comparable with respect to Ordinance making.
- However, the Governor cannot issue an Ordinance without instructions from the President in certain cases where the assent of the President would have been required to pass a similar Bill.
Key debates relating to the Ordinance making powers of the Executive.
- There has been significant debate surrounding the Ordinance making power of the President (and Governor).
- Constitutionally, important issues that have been raised include:
- Judicial review of the Ordinance making powers of the executive;
- The necessity for ‘immediate action’ while promulgating an Ordinance;
- And the granting of Ordinance making powers to the executive, given the principle of separation of powers.
- In 1970, RC Cooper vs.Union of India Case the Supreme Court, held that the President’s decision on Ordinance could be challenged on the grounds that ‘immediate action’ was not required; and the Ordinance had been passed primarily to by-pass debate and discussion in the legislature.
- In 1980, AK Roy vs.Union of India case the Court argued that the President’s Ordinance making power is not beyond the scope of judicial review.
What is Most Favoured Nation’ (MFN) status?
- The WTO as the trade-promoting body has certain key principles or philosophical themes for its working.
- One such principle is non-discrimination which is well scripted in Most Favored Nation (MFN) treatment.
- The MFN is a status or treatment given by one country to another in trade matters.
- It means that the recipient country of MFN will nominally get equal trade advantage as the ‘most favoured nation’ by the country granting the treatment.
- Though the MFN status says the receiving country is the most favoured by the issuing country; the meaning is slightly different.
- The real meaning is that the receiving country will not be treated disadvantageously by the issuing country in trade matters vis a vis other countries.
- Under WTO, countries cannot normally discriminate between their trading partners.
- If a special favour is granted to a particular country, it should be extended to all other WTO members.
- In this respect, the MFN is so important that it is the first article of the GATT, which governs trade in goods.
- The MFN status was accorded to Pakistan by India in 1996 as per India’s commitments as a member of the World Trade Organisation (WTO).
- Pakistan, a founding member of the WTO like India, is yet to grant the MFN tag to India (and Israel).
Exceptions for MFN:
- MFN at the same time allows some exemptions as well.
- One such exemption is the right to engage in Free Trade Agreements.
- This means members can participate in regional trade agreements or free trade agreements where there is discrimination between member countries and non member countries.
- Another exemption is that members can give developing countries special and differential treatment like greater market access.
- This special concession are in different forms like reduced tariff rates from developing country imports, concessions that allows developing countries to give subsidies to their production sectors etc.
- All these exceptions are subjected to strict conditions.
- In general, MFN means that every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods or services from all its trading partners — whether rich or poor, weak or strong.
- Each member treats all the other members equally as “most-favoured” trading partners.