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Duty-Free Quota-Free (DFQF) Scheme

Duty-Free Quota-Free (DFQF) Scheme:

According to a report by the least developed countries Group at the World Trade Organisation (WTO), the Duty-free quota-free (DFQF) scheme remains unutilized by the LDC nations.

  • The decision to provide duty-free quota-free (DFQF) access for LDCs was first taken at the WTO Hong Kong Ministerial Meeting in 2005.
  • India became the first developing country to extend this facility to LDCs in 2008, providing market access to 85 per cent of India’s total tariff lines
  • The scheme was expanded in 2014 providing preferential market access on about 98.2 per cent of India’s tariff lines to LDCs.

World Trade Organisation (WTO):

  • It was set up on 1st January 1995 and was born out of the 1986-94 Uruguay Round of Negotiations.
  • It is the only global international organization dealing with the rules of trade between nations.
  • It is the successor to the General Agreement on Tariffs and Trade (GATT)
  • The main function of the WTO is to ensure that trade flows as smoothly, predictably and freely as possible.
  • It further consists of two principles, the Most-favoured Nation (MFN) principle and the National treatment principle.
  • It is a ‘member-driven’ organisation, with decisions taken by consensus among the member governments.