EJAD Trad Watch

Developing countries on Friday welcomed WTO proposals to reduce barriers to farm trade but voiced reservations on those calling for a further opening of their own markets for industrial goods. The draft agreement on agriculture presented by the WTO a week ago “is a good basis for further work,” said Brazilian ambassador Clodoaldo Hugueney, speaking for the Group of 20 emerging market nations. “These positions offer the best prospects for a balanced .” (Dawn, Pakistan)

Leading industry experts have defended China's auto imports tariff policy in the wake of a ruling by the World Trade Organization (WTO) which says the policy breaks its rules. China considers car parts as a whole vehicle if they account for 60 percent or more of the value of a whole vehicle, and charges a 15 percent higher tariff on them. Zhao Yumin, a research fellow with the Trade and Economic Cooperation Institute of the Ministry of Commerce (MOC), told Xinhua on Friday that the tax measure is aimed to prevent tax evasion by companies who import whole cars as spare parts to avoid higher tariff rates. (English People Daily, China)

Brazil has alleged that a clause in the EU’s recent trade agreements with several former colonies could discourage these countries, among the world’s poorest, from pursuing deeper trade integration with other developing nations. This would run counter to a WTO principle aimed at increasing poor countries’ participation in global commerce, Brazil claims, adding that it sits uneasily with the EU’s oft-stated commitment to promoting South-South trade. (Bilaterals.Org)

Centre for Governance of Knowledge and Development, Regulatory Institutions Network, College of Asia and the Pacific, The Australian National University, Canberra, Australia The vast majority of the world’s biological resources and traditional knowledge is located in the developing world, yet the vast majority of the world’s intellectual property over biotechnology is owned by the developed world. (Bilaterals.Org)

To the credit of Civil Society Organisations (CSOs) in Pakistan they have tested some very innovative approaches in addressing the concerns which would come under the rubric of Millennium Development Goals (MDGs) innovative models developed by them show the way for meeting MDGs and achieving sustainability by working within the system, living within the means and saying no to non performing loans. These models have used an entrepreneurial vision to seek guidance from community preference for sustainable human development. (Business Recorder, Pakistan)

Bangladesh should be careful about the impacts of South Asian Free Trade Agreement (SAFTA) and other proposed regional trade agreements as such preferential market access arrangements offer little benefits to weaker economies. On the other hand such free market arrangements open the doors of opportunities for a big economy to create its captive market across the borders, a seminar in the city was told on Monday. (Bilaterals.Org)

The trade in services is set to acquire a new meaning with the government planning to define the term services. The new definition is expected to be in tune with the taxation laws. Services would be defined by amending the Foreign Trade (Development & Regulation) Act, 1992, an official source said. The aim is to bring clarity in the trade of services, it added. The proposal, mooted by the commerce ministry, has been vetted by the finance ministry. The finance ministry is, however, not in complete agreement with the commerce ministry’s proposal . (The Economic Times, India)

The union cabinet on hursday gave its approval to a double taxation avoidance treaty with Luxembourg in Europe, giving a new boost to the economic and bilateral ties. The cabinet chaired by Prime Minister Manmohan Singh approved the agreement which covers both avoidance of double taxation and prevention of fiscal evasion in respect of the taxes on income and capital. After the meeting, the central government's principal information officer Deepak Sandhu told the media persons that the agreement would encourage capital flow between the two countries. (The Economic Times, India)

The Trade Development Authority of Pakistan (TDAP) had arranged a 5-day visit of an 11-member trade delegation to Lusaka, last week. The objective of the visit was to enhance bilateral trade relations, to explore the local market for Pakistani products, to discuss other allied issues with their Zambian counterparts. It comprised businessmen representing textiles, cosmetics, safety matches, rice, tents & canvas, pharmaceuticals, surgical instruments, sports goods, agri-equipment, tractors, food items, and hardware sectors. (Business Recorder, Pakistan)

The quest for a free trade pact would be high on the agenda this week of high-level talks between South Africa and India in Pretoria, a government official said Thursday. Discussions between the foreign ministers of the two emerging powerhouses would pursue a free trade agreement between India and the five-member Southern African Customs Union (SACU), said Jerry Matjila, deputy director general in the South African department of foreign affairs. (Bilaterals.Org)

Trade ministers of India and China will meet in the first week of April to consider the recommendations of the Joint Task Force on the India-China Free Trade Agreement. "The two trade ministers would meet in the beginning of April in Beijing to look into the recommendations of the Joint Task Force on the India-China FTA," Commerce Ministry Joint Secretary Dinesh Sharma told reporters here on Wednesday. The ministers would discuss in what way the recommendations have to be worked upon. (The Economic Times, India)

It is “premature” for the US to consider a free trade agreement with India, United States Trade Representative (USTR) Susan C. Schwab said Wednesday. Schwab said the US looks at trade agreements comprehensively and at this stage it is “difficult” for India to do such an agreement. She specifically mentioned India’s “sensitivities” in the agriculture sector and said the US respected those. Her comments came during the launch of the US-India Small and Medium-sized Enterprises (SMES) Summit here. (Bilaterals.Org)

US Ambassador to Pakistan Anne Patterson has said that she will visit the Lahore Chamber of Commerce and Industry very soon to discuss with the business community as to how trade between Pakistan and the US could be given a further boost. The US ambassador was talking to LCCI President Mohammad Ali Mian at a luncheon reception, hosted by US Consulate Principal Officer Brian D Hunt at his residence. Frank G Lowenstein, Senior Foreign Policy Adviser to Senator John Kerry, Rexon Y Ryu, Senior Foreign Policy Adviser, Antony J Blinken of Committee on Foreign Relations, US Senate and E Candace Putnam, Political Counsellor, US embassy, also talked to the LCCI president on a number of issues ranging from trade relations to the political situation in Pakistan. (The News, Pakistan)

Islamic Republic of Iran just celebrated its 29th birth anniversary, but our ties to the government and people of Iran go back thousands of years in history. With a common border, and affinities of language, culture, tradition, religion and family ties, one would have thought that trade exchanges between Pakistan and Iran would be in tens of billions in any currency you like. However, the irony of the paltry figures official statistics present, is shocking. (Business Recorder, Pakistan)

India’s Minister of Commerce was in town last week. He had the usual few words to say about the benefits that are supposed to have accrued to pretty much everybody since the entry into force of the free trade agreement with Sri Lanka in 2000. Trade between the two countries has increased at least four-fold, and it is now worth well over $2 billion. India had cut its tariffs on Sri Lankan goods by 2003, and Sri Lanka is due to do away with all remaining taxes on Indian imports during 2008. Free trade has triumphed, apparently. (Bilaterals.Org)

The Trading Corporation of Pakistan (TCP) has floated a tender for the purchase of 50,000 metric tons of refined sugar from local mills. A TCP official said here on Wednesday that the tender would be opened on February 28. The corporation is buying sugar from local mills on the instructions of the Economic Coordination Committee of the Cabinet for the procurement of 500,000 tons of sugar from local mills to help out sugar industry which is facing financial crisis. (Dawn, Pakistan)

Myanmar's foreign trade in the first half of the fiscal year 2007-08 (April-September) was up 30.46 percent, reaching 5.049 billion U.S. dollars compared with the same period of 2006-07, according to the latest figures from the Central Statistical Organization. Its export during the period amounted to 3.596 billion dollars, while its import took 1.453 billion dollars, enjoying a trade surplus of 2.143 billion dollars. The trade surplus gained during the six-month period was attributed mainly to the export of natural gas which earned 1.531 billion dollars, accounting for 42.5 percent of the total export. (English People Daily, China)

The government has allowed export of 50,000 tons of non-basmati rice to Bangladesh even though there is a restriction on the commodity's overseas sale. The prohibition imposed on export of non-basmati rice shall not be applicable to export of 50,000 tons of non-basmati rice to Bangladesh, the Directorate General of Foreign Trade (DGFT) said in a notification. The government has partially banned export of non-basmati rice by fixing the minimum export price of $500 per ton FOB in the international market to augment the domestic supplies of common varieties. (The Economic Times, India)

► Sri Lanka: Don’t ‘sob’ anymore over rates

The Central Bank, annoyed over the ‘perennial’ demand by exporters’ for favourable exchange rates to benefit the trade, has told exporters they should make money on their own instead of relying on exchange rate policy issues. “Exporters are complaining about the exchange rate but we have told them that the profits they make must now come on their own. If they think the currency should depreciate for them to make a profit, that’s not on (anymore),” . (Sunday Times, Sri Lanka)

► Bangladesh: Industry seeks zero tariff for raw materials for non-cotton fabrics

Zero tariff on importing raw materials for manufacturing non-cotton textile items, such as sweater and others, can help flourish the industry, which ultimately will meet the local demand, observed industry insiders. They said now Bangladesh is to import almost all non-cotton items it needs per annum, let alone exploring its export market. The investment in setting up factories to produce such items has been very slow on some discouraging tax measures by the government. (The Daily Star, Bangladesh)

► India treats Sri Lanka as equals in trading

The Indian government is willing to undertake a massive Information Technology and Technical Training initiative for the benefit of Sri Lankan students who are deprived of higher education due to the lack of sufficient university facilities here. This arrangement will be finalized at a high level Indo –Sri Lanka meeting to be held in Bangalore India within the next three months. This assurance was given this week by the visiting Indian Union Minister of State for Commerce Jairam Ramesh at a meeting with Enterprise Development and Investment Promotion Minister Dr. Sarath Amunugama, Minister Naveen Dissanayake and senior officials. (Sunday Times, Sri Lanka)

► World Economic Forum Anguish of neo-liberalism: new ideas and fresh approaches

This year the World Economic Forum at Davos ends with renewed commitment to global challenges particularly to the UN Millennium Development Goals and as per UN chief Ban Ki-moon said: ?Too many nations have fallen behind,? ?We need new ideas and fresh approaches?. Earlier The WEF Report- Risks 2008, meeting has highlighted the need for a new philosophy and rigorous action in a number of problem areas. (The News, Pakistan)

► Mahindra to invest around $250 mln in Trinco, Katunayake

A leading Indian company, Mahindra and Mahindra Group is to invest around $250 million in a massive infrastructure development project in the new Trincomalee EPZ and an IT park at Katunayake as a joint venture with the Board of Investment creating a new industrial culture by promoting public and private partnerships. Senior Vice President and Executive Director of Mahindra Group Arun Kumar Nanda who was in Sri Lanka entered into a formal agreement with the BOI to implement these two projects. (Sunday Times, Sri Lanka)

Indian oil company, the Essar, will start drilling test well to explore natural gas at an inland block in Myanmar's western coastal Rakhine state during this year under a production sharing contract with Myanmar initiated more than two years ago, the leading local weekly Yangon Times reported Wednesday. The drilling will be undertaken at Block-L in Sittway of the state. Block-L stands one of the two blocks which the Indian company is to explore gas under the contract signed with the state-run Myanmar Oil and Gas Enterprise in May 2005. The gas exploration on another block A-2 lying off the Rakhine coast will follow later, the report said. (English People Daily, China)

Asian Development Bank will provide $150 million for Power Distribution Enhancement Project-1 to Pakistan, which will be implemented by Pakistan Electric Power Company (Pvt.) Limited (Pepco). According to ADB sources, this project will address the capacity shortfalls that currently result in regular system outages and supply interruptions to customers. This will include (i) addition of circuit and transformer capacity to enable the already overloaded systems to reliably deliver present demand. (Business Recorder, Pakistan)