50% tariff on copper, pharma may invite up to 200%: Trump
Syllabus:
Preliminary Examination: Current events of national and international importance.
Mains Examination: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests
What’s the ongoing story: US President Donald Trump on Tuesday announced 50 per cent tariffs on copper, after having implemented similar duties on steel and aluminium. He added that tariffs on pharmaceuticals
Key Points to Ponder:
• What is the tariff announced by Trump?
• What controls the price of copper?
• Copper tariffs: What the experts say?
• What will tariffs do to the price of copper?
• How copper tariffs will affect India?
• ‘The pharmaceutical sector faces a potentially more serious impact’-How?
Key Takeaways:
• This is significant for India, which exported $2 billion worth of copper and copper products globally in 2024–25, with the US accounting for $360 million, or 17 per cent, of that total. The US is also India’s largest overseas market for pharmaceuticals. Drug exports to the US rose to $9.8 billion in FY25, up 21 per cent from $8.1 billion the previous year, and now account for 40 per cent of India’s total pharma exports.
• Trump said he is planning to impose tariffs on imported semiconductors and pharmaceuticals, with medicine tariffs potentially reaching 200 per cent. However, he said drugmakers would be given about a year “to get their act together”.
• “We’re going to give people about a year, a year and a half to come in and, after that, they’re going to be tariffed,” Trump told reporters during a Cabinet meeting at the White House.
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• Reiterating his threat of a 10 per cent tariff on BRICS, Trump said the bloc was “not a serious grouping” but acknowledged that it is challenging the US dollar. “It’s alright if you want to challenge the dollar. But they will have to pay the tariffs. I don’t think they want that,” he said.
• “If they have to bring the pharmaceuticals into the country… they’re going to be tariffed at a very, very high rate, like 200 per cent. We’ll give them a certain period of time to get their act together,” he said.
• “We’re going to be announcing pharmaceuticals, chips, and a couple of other things — you know, big ones,” Trump added, while unveiling the new tariff on copper.
Do You Know:
• Trade data showed that the US is India’s third-largest copper export market, after Saudi Arabia (26 per cent) and China (18 per cent). However, given copper’s status as a critical mineral and its extensive use across infrastructure, energy and manufacturing, India’s domestic industry is likely to absorb any decline in US demand resulting from the proposed tariffs.
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• A 200 per cent tariff on pharmaceutical exports could severely impact demand, especially as India’s generics industry plays a key role in supplying affordable medicines to the US healthcare system.
• Reiterating his threat of a 10 per cent tariff on BRICS, Trump said the bloc was “not a serious grouping” but acknowledged that it is challenging the US dollar. “It’s alright if you want to challenge the dollar. But they will have to pay the tariffs. I don’t think they want that,” he said.
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📍Old Delhi, new Washington
📍‘Deal with India close,’ says Trump; slaps 25-40%reciprocal tariffs on 14 nations
FATF: Online sites used for terror attacks in Pulwama, Gorakhnath
Syllabus:
Preliminary Examination: Current events of national and international importance.
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Main Examination: General Studies II: Important International institutions, agencies and fora- their structure, mandate.
What’s the ongoing story: The FATF report, without naming any country, noted it had received reports from its delegations about the use of state sponsorship for terrorist financing, as fundraising technique or as part of the financial management strategy of certain organisations engaging in terrorist acts.
Key Points to Ponder:
• What is the Financial Action Task Force (FATF)?
• What FATF report said on terror financing?
• ‘The recent FATF report highlighting the use of e-commerce platforms and VPNs by terror elements in India’—What does this reveal about the evolving nature of terrorism?
• What is the role of digital anonymity tools such as VPNs in modern terrorist operations?
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• “The convergence of terrorism and technology poses a major internal security threat.”-Discuss
• What are the vulnerabilities of e-commerce platforms to misuse by extremist groups?
• How financial intelligence and inter-agency coordination can tackle this menace?
Key Takeaways:
• Citing the use of online payment services, virtual private networks (VPNs) and e-commerce platforms in the terror attacks in Pulwama in February 2019 and Gorakhnath Temple in April 2022, the Financial Action Task Force (FATF), in a report released Tuesday, said digital platforms such as social media, messaging applications and crowdfunding sites are increasingly being abused for terror financing.
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• The FATF report, without naming any country, noted it had received reports from its delegations about the use of state sponsorship for terrorist financing (TF), either as fundraising technique or as part of the financial management strategy of certain organisations engaging in terrorist acts.
• A variety of publicly available sources of information and delegations’ inputs to the report indicate that “certain terrorist organisations have been and continue to receive financial and other forms of support from several national governments,” it said.
• Schemes involving several commodities have also been reported, for instance, oil shipped to an intermediary country to be sold in gold, with gold later converted to cash in another jurisdiction, the report said.
• The FATF flagged the decentralisation of terror operations, with regional financial hubs and self-financed cells, adapting to local contexts, and involving a range of funding sources – from criminal proceeds to investments in business activities.
Do You Know:
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• In an earlier statement released in June this year, the FATF had condemned the “brutal terrorist attack” in Pahalgam on April 22, noting that such attacks cannot occur “without money and the means to move funds between terrorist supporters”. The FATF had then stated it planned to come out with an analysis of terrorist financing, compiling cases by its global network.
• The FATF also detailed the use of online payment service and VPNs to fund lone-actor terrorist acts in the instance of the attack on security personnel at Gorakhnath Temple in April 2022.
• An individual influenced by ISIL’s ideology attacked security personnel, and the financial investigation revealed that the individual had transferred Rs 6,69,841 ($7,685) via PayPal to foreign countries in support of ISIL, using international third-party transactions and using VPN services to obscure the IP address. He had also received Rs 10,323.35 ($188) from a foreign source, the report said.
• The forensic report revealed that the accused had been using a VPN for calling, chatting and downloading to evade detection. “Further financial scrutiny uncovered that the accused had made a payment to a VPN provider through his bank account to secure these services.
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• The FATF also flagged decentralisation as one of the most reported trends for worldwide terrorism activities in recent years. For instance, Al-Qaeda over the past years used a centralised consultation council, known as Majlis al-Shura, to manage key strategic decisions, including financial management. Now it has shifted to a decentralised model, with regional bodies such as Al-Qaeda in the Indian subcontinent (AQIS) conducting operations and generating funds locally.
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📍FATF on India: Effective anti-money laundering system, low prosecution
EXPRESS NETWORK
Yemen to execute nurse Nimisha Priya, convicted of murder, on July 16: Negotiator
Syllabus:
Preliminary Examination: Current events of national and international importance
Main Examination: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
What’s the ongoing story: Indian nurse Nimisha Priya, who has been convicted of the murder of Yemeni citizen Talal Abdo Mehdi, is set to be executed on July 16.
Key Points to Ponder:
• Who is Nimisha Priya?
• What is the case against her?
• What are the legal, diplomatic, and humanitarian aspects of India’s approach in such cases?
• How bilateral and multilateral diplomacy can be leveraged to address legal cases involving Indian nationals overseas, such as the Nimisha Priya case?
• Know the strategic importance of Yemen for India, focusing on its geographical location near the Bab-el-Mandeb Strait and its implications for India’s maritime and energy security.
• Know the significance of India-Yemen relations in the context of regional stability and India’s strategic interests.
• Map Work-Yemen
Key Takeaways:
• Samuel Jerome Baskaran, a social worker who is currently involved in negotiations with government officials in Yemen and Talal’s family, confirmed the development. “The public prosecutor had issued the letter of prosecution to the jail authorities. The execution is scheduled for July 16. Options are still open. The Government of India can intervene in the matter to save her life,” he said.
• Regarding a pardon from the family of Talal, Samuel said: “We had made an offer to the family during the last meeting. So far, they have not responded. I am leaving for Yemen today to resume the negotiations.”
• According to government sources, “Ms. Nimisha Priya was convicted for the crime of murder in Yemen in June 2018 and the local court handed out death sentence to her. We have been closely following the matter since then. We have been in regular touch with local authorities and her family members and rendered all possible assistance. We continue to closely follow the matter.”
• Nimisha’s mother, Prema Kumari, a domestic worker in Kochi, has been camping in Yemen for the past year. Nimisha, a native of Kerala, had worked as a nurse in Yemen for several years until she was accused of murder in 2017.
• With Talal’s support, Nimisha ran a clinic in Yemen, but she allegedly faced mental, physical and financial abuse, which culminated in the murder.
Do You Know:
• In November 2023, a $40,000 payment was made to get negotiations started. Priya’s family will likely have to pay up to $400,000 to waive the death penalty. The ‘Save Nimisha Priya International Action Council’, formed in 2020, is in the process of raising the required funds.
• According to Islamic law, victims of crimes have a say in how criminals are punished. In cases of murder, this principle applies to the families of victims. Although murder is punished via the death penalty, the victim’s family (specifically, heirs) may choose to “forgive” the murderer in exchange for monetary compensation.
• This is the principle of diyya, or “blood money”. It can be traced to the Holy Quran: “O believers! The law of retaliation is set for you in cases of murder — a free man for a free man, a slave for a slave, and a female for a female. But if the offender is pardoned by the victim’s guardian, then ‘blood money’ should be decided fairly and payment should be made courteously. This is a concession and a mercy from your Lord.” [2:178]
• Scholars believe that the idea behind this is to encourage the virtue of forgiveness, while also providing reparative justice to the victim’s family. The scriptures do not set any specific amount as compensation, with the sum generally arrived at via negotiation between the murderer’s family/representatives and the victim’s family. Some Islamic countries, however, have set minimum compensation amounts.
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📍Kerala nurse facing death penalty in Yemen: the murder case Nimisha Priya is convicted in
Uttarakhand to study ‘carrying capacity’ of cities to check ecological imbalance
Syllabus:
Preliminary Examination: Current events of national and international importance.
Mains Examination: General Studies II: Conservation, environmental pollution and degradation, environmental impact assessment.
What’s the ongoing story: The Uttarakhand government has commissioned assessments of “carrying capacity” of cities in the Himalayan state to check ecological imbalances, Chief Minister Pushkar Singh Dhami said Tuesday.
Key Points to Ponder:
• What you understand by “carrying capacity” in the context of urban planning?
• What factors affect the carrying capacity of a tourist destination?
• What is ‘overtourism’?
• Why assessing the carrying capacity of hill towns like those in Uttarakhand has become a necessity?
• Know the environmental and socio-economic implications of unregulated tourism and hotel construction in ecologically fragile zones like Uttarakhand.
• What is the role of Environmental Impact Assessments (EIA) and carrying capacity studies in preventing disasters like land subsidence in Joshimath?
• How climate change and anthropogenic factors together are affecting the ecological stability of hill towns in India?
Key Takeaways:
• “Carrying capacity” refers to the maximum number of individuals an ecosystem or specific area can sustainably support without degrading natural resources or causing significant environmental damage.
• A senior Uttarakhand government official told The Indian Express that “given the focus of the Chief Minister on both ecology and economy”, the state government is intent on aligning its development policies with the ecology in the hill state that sees heavy influx of tourists, and where construction activities can be ecologically harmful if done in an unplanned manner.
• “If the carrying capacity of an AC room is 50, but we pack 100 people in it, the AC won’t work well. The same principle applies to all urban spaces — be it cities or roads. Therefore, we are getting the carrying capacity of key cities assessed. If some are clearly exceeding their carrying capacity, we will have to see alternative spaces for some activities,” the official said.
• The hill state attracts streams of tourists both to its hill stations and Hindu shrines, with 37 lakh people visiting these shrines in the summer of 2025. The large numbers often pose a problem, as the ecology as well as the infrastructure cannot cater to them.
• For Kanwar Yatra, scheduled to take place from July 11-23, around 3 crore devotees are estimated to visit Haridwar to collect holy water from the Ganga to offer at Shiva temples in their hometowns.
Do You Know:
• In November 2017, then Chief Minister Trivendra Singh Rawat had said that Uttarakhand had faced 39 earthquakes in two years due to ecological imbalances and added that prevention was better than cure.
• In late 2022 and early 2023, houses in Joshimath in Uttarakhand’s Chamoli district began to develop cracks. The scenic town faced the geological phenomenon of land subsidence, or sinking, which is caused, among other things, by excessive extraction of groundwater. Joshimath had seen a lot of construction activities over the decades and the widening of roads, which are believed to have led to the crisis.
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📍Himalayan springs are drying. It’s a threat to India’s ecological stability and national security
ECONOMY
BRICS nations ‘condemn and reject’ Europe’s carbon-based import duties
Syllabus:
Preliminary Examination: Current events of national and international importance.
Mains Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
What’s the ongoing story: In in strongest statement on the subject yet, the BRICS nations have “condemned and rejected” Europe’s Carbon Border Adjustment Mechanisms (CBAMs), and other similar restrictive trade measures taken under the pretext of climate concerns, saying these undermined their development and transition to cleaner economy.
Key Points to Ponder:
• Carbon Border Adjustment Mechanism (CBAM)-what you know about the same?
• What are the key features of the European Union’s Carbon Border Adjustment Mechanism (CBAM)?
• What are climate-related trade restrictions such as CBAM?
• Why BRICS nations are opposing CBAM?
• Which principle of international environmental law is most cited by developing countries while opposing CBAM?
• Common But Differentiated Responsibilities (CBDR) and Carbon Border Adjustment Mechanism (CBAM)-connect the dots
• How carbon-based import duties can be seen as a form of green protectionism?
Key Takeaways:
• CBAM is an import duty imposed by the European Union (EU) on goods produced by processes that lead to more carbon emissions than domestic European manufacturers are allowed to emit. The ostensible reason is to check ‘carbon leakage’, but this has the effect of making items like steel or cement, from a country like India for example, more expensive, and thus less competitive, in the European markets.
• Developing countries including India and China have been strongly critical of CBAM, calling it a unilateral and unfair trade barrier. They maintain this violates international agreements on both trade and climate, and have raised this issue at multiple international forums, including the annual climate conferences. But EU has been unrelenting. The statement by the BRICS nations, a group of nine large developing economies whose annual two-day summit concluded in Brazil on Monday, is another reiteration of the stand of the developing countries, though in a much stronger language.
• The Leaders’ Framework Declaration on Climate Finance is the result of the discussions held by a new contact group of ministers on climate change and sustainable development that was formed last year under Russia’s chairmanship of BRICS.
Do You Know:
• The declaration said CBAMs, and other measures like restrictions on trade of forest goods, violated the provisions of the 1994 UN Framework Convention on Climate Change (UNFCCC) and agreements reached at other climate meetings.
—For example, Article 3(5) of UNFCCC calls upon countries to “promote a supportive and open international economic system” that would lead to sustainable economic growth and development in all countries, particularly those in the developing world.
—Importantly, it also says that “measures taken to combat climate change, including unilateral ones, should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade”.
• The BRICS countries, in their latest statement said they want a full implementation of this provision in UNFCCC.
• The BRICS nations also asked the rich and developed world to fully deliver on their commitments under the UNFCCC and the 2015 Agreement, particularly those related to providing financial resources to the developing countries to take climate action. Developed countries are obligated to raise at least US$ 100 billion a year in climate finance meant for developing countries. They have promised to raise this to at least US$ 300 billion a year from 2035. But developing countries say this is too less and too late, considering that they already need at least US$ 1.3 trillion a year.
• The BRICS nations called on the developed world to urgently increase their financial contribution to adaptation projects, at least doubling the amount in 2019 by 2025, as has been agreed in climate conferences.
Other Important Articles Covering the same topic:
📍What is the European Union’s CBAM, and why has BRICS condemned and rejected it?
Previous year UPSC Mains Question Covering similar theme:
📍Should the pursuit of carbon credit and clean development mechanism set up under UNFCCC be maintained even through there has been a massive slide in the value of carbon credit? Discuss with respect to India’s energy needs for economic growth. (UPSC CSE 2014)
EXPLAINED
Reforming UNFCCC process
Syllabus:
Preliminary Examination: Current events of national and international importance.
Main Examination: General Studies II: Important International institutions, agencies and fora- their structure, mandate.
What’s the ongoing story: The international climate negotiations, held under the UN Framework Convention on Climate Change (UNFCCC), have been facing a credibility crisis in recent years.
Key Points to Ponder:
• Know about United Nations Framework Convention on Climate Change (UNFCCC).
• Which principles is enshrined in the UNFCCC to address climate responsibilities?
• Know the structural and functional limitations of the UNFCCC in addressing the contemporary challenges of climate change.
• How the UNFCCC has upheld or diluted the principle of ‘Common But Differentiated Responsibilities’ over time?
• Know the role of climate finance and technology transfer within the UNFCCC framework.
• How can reforms improve UNFCCC framework?
Key Takeaways:
• Their outcomes have been largely underwhelming as they have not delivered the kind of action required to curb global warming. Developed countries that fail to meet their targets, or deliver on their commitments, have not been held to account. Developing countries, particularly the small and most vulnerable of them, have repeatedly complained that their concerns are often ignored, and that the negotiations have failed to deliver climate justice.
• Also, the withdrawal of the United States from these negotiations, following the return of Donald Trump to the White House this year, has threatened to make the entire process irrelevant.
• As a result, there has been an effort to re-infuse trust and confidence in the system in the lead-up to the COP30 meeting in Brazil which will take place in November. As the host of the COP30, Brazil has been actively engaged with other countries to explore the possible steps that can be taken in this direction.
• The annual mid-year climate meeting in Bonn, Germany, which wrapped up last month, discussed the ideas and suggestions submitted by countries, climate groups, and non-government organisations, to reform the system and make it more effective.
Do You Know:
• The Bonn meeting, held in the second half of June, acknowledged that the “growing scale and complexity” of the climate negotiations presented challenges. It also emphasised the need to “improve the efficiency of the UNFCCC process in a transparent and inclusive manner”.
• Civil society organisations and climate advocacy groups, which have been at the forefront of the demands to reform the UNFCCC process, have been asking for more fundamental changes. At Bonn, a letter signed by more than 200 such groups, suggested five major reforms. One of them was a demand to allow majority-based decision-making when attempts to find a consensus remain elusive.
• The UNFCCC works through consensus, which means no decision is accepted till every country accepts it. In a way, every country has a veto. Getting all of the more than 190 parties to agree to every part of a decision has always been a big challenge. This is often blamed for the lack of ambition in the outcomes of climate negotiations.
• Any decision to reform the UNFCCC process will have to be approved through consensus by all the parties, and it is unlikely that any of the more radical suggestions would go through.
• As the host of the COP30, Brazil has to take leadership in ensuring its success. The outcome of this meeting will be measured largely by the faith and confidence that countries, mainly developing and vulnerable ones, are able to put back into the process.
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📍Brazil minister is correct in pushing for mechanisms to complement UNFCCC on climate negotiations
MELTING GLACIERS CAN LEAD TO MORE VOLCANIC ERUPTIONS: NEW STUDY
Syllabus:
Preliminary Examination: Current events of national and international importance.
Mains Examination: General Studies II: Conservation, environmental pollution and degradation, environmental impact assessment.
What’s the ongoing story: The rise in melting glaciers and ice caps can result in more frequent and more explosive volcanic eruptions, according to a new study. It also stated that the greatest risk of a resurgence of volcanic eruptions lies in West Antarctica, where approximately 100 volcanoes are buried under thick ice. This ice is expected to disappear in the coming decades and centuries due to soaring global temperatures.
Key Points to Ponder:
• What is isostatic rebound?
• What are the scientific mechanisms by which melting glaciers can trigger volcanic eruptions?
• Know the impact of glacial retreat on tectonically active zones such as Iceland and the Pacific Ring of Fire.
• What are the long-term ecological and climatic consequences of increased volcanic activity induced by glacial melting?
• How does isostatic rebound influence seismic and volcanic activity?
• How can remote sensing and geospatial technologies help in predicting volcanic risks linked with climate-induced glacier melting?
Key Takeaways:
• The research was presented at the 2025 Goldschmidt Conference, which is currently underway in Prague. It is the largest international conference dedicated to geochemistry, organised by the Geochemical Society and the European Association of Geochemistry.
• Other continental regions, such as parts of North America, New Zealand, and Russia, could also observe an increase in volcanicity, Pablo Moreno-Yaeger, from the University of Wisconsin-Madison (US), said during the presentation.
• Scientists first suggested that melting ice could affect volcanic activity in the 1970s. Usually, the weight of the ice exerts pressure on underground magma chambers of volcanoes. However, when glaciers or ice caps melt, this pressure is reduced, and underground gases and magma expand which can ultimately result in explosive eruptions.
• Such a phenomenon has already occurred on the planet. For instance, in Iceland, during major deglaciation (the last of which occurred between 15,000 and 10,000 years before the present), volcanic eruption rates were 30 to 50 times higher than they are today.
• Studies have also found that the decrease in pressure due to ice loss can result in the production of magma. That is because rocks held at lower pressure tend to melt at lower temperatures.
Do You Know:
• The latest study has reiterated these findings. It examined Chile’s Mocho Choshuenco volcano to estimate the age of volcanic rocks produced before, during, and after the last ice age. The research found that due to a thick ice sheet over the volcano, pressure had suppressed the volume of eruptions between 26,000 and 18,000 years ago. This led to the formation of a large reservoir of magma that had built up 10 to 15 km below the volcano’s surface. However, once this ice sheet melted, about 13,000 years ago, explosive eruptions took place.
• Volcanic eruptions can cause temporary cooling as they release ash or dust into the atmosphere which blocks sunlight. These eruptions also emit sulfur dioxide into the atmosphere which is more effective than ash particles at cooling the climate. Sulfur dioxide goes into the stratosphere and reacts with water to form sulfuric acid aerosols. These aerosols reflect incoming solar radiation, leading to the cooling of the Earth’s surface.
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📍What the rapid ice melt in West Antarctica means
Ship ‘arrested’ after Kerala claims damages: how do admiralty suits work?
Syllabus:
Preliminary Examination: Current events of national and international importance.
Mains Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
What’s the ongoing story: The Kerala High Court on Monday ordered the conditional “arrest” of Liberian container ship MSC Akiteta II, currently anchored at Thiruvananthapuram’s Vizhinjam port, over compensation claims arising from the sinking of the MSC Elsa III in May.
Key Points to Ponder:
• In the context of maritime law, when is a ship is said to be “arrested”?
• Which international convention influences India’s Admiralty laws?
• Under admiralty law, an action ‘in rem’ refers to what?
• The Kerala coast recently witnessed the arrest of a ship for what?
• Who has the authority to execute the arrest of a ship in India?
• Which law in India deals with international maritime safety and environmental compliance?
• What are admiralty suits and how do they function?
• The Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017-Know its key features
Key Takeaways:
• The order came after the Kerala government filed an admiralty suit — a legal proceeding pertaining to maritime law and disputes — in the High Court. The suit named the Mediterranean Shipping Company, one of whose firms operates and manages the MSC Akiteta II. Another company of the same group operated the MSC Elsa III.
• The government has sought compensation of Rs 9,531 crore for the alleged pollution of Kerala’s marine ecosystem due to the sinking of MSC Elsa III on May 25, around 25 km southwest of Alappuzha.
• The ship went down with more than 600 containers, some of which carried plastic pellets, hazardous substances, and diesel.
Do You Know:
• The Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017 governs maritime disputes in India. Under the Act, admiralty suits can be filed for maritime claims such as damage to ships, ownership and agreement disputes, loss of life, wage issues, and environmental damage.
• The 2017 law replaced the colonial-era Admiralty Court Act, 1861, and Colonial Courts of Admiralty Act, 1890.
• The previous laws gave jurisdiction only to the High Courts of Bombay, Calcutta and Madras, as these were the only major ports in India earlier. Now, the HCs of Kerala, Karnataka, Odisha, Telangana and Andhra Pradesh also have jurisdiction over maritime disputes.
• The jurisdiction of the courts extends up to the territorial waters of their respective jurisdictions. The limit of territorial waters is up to 12 nautical miles from the nearest point of a low-water line along the coast. This also includes the seabed, subsoil (the layer of soil under the topsoil on the surface), and airspace above it.
• The Kerala government’s admiralty suit sought the arrest of the MSC Akiteta II until compensation was paid to the state. In maritime law, the arrest of a ship refers to a legal procedure where a court or other competent authority detains a vessel to secure a maritime claim against it or its owner.
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📍Kerala High Court orders arrest of cargo ship in Rs 9,531-crore damage case
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