EJAD Trad Watch

The perception that free trade and globalisation leave most people better off seems to be losing its appeal as, according to a poll, popular opinion in several countries is turning against it? Many politicians the world over are raising serious questions about the benefits of free trade and blame it, along with globalisation, and deregulated capital flows for the myriad of economic problems and instability confronting their countries. (Dawn, Pakistan)

The country’s export will suffer in case the Doha Round negotiations are not concluded this year, observes Pakistan Permanent Representative and Ambassador to WTO Dr Manzoor Ahmad. He said if the round was not finished this year it might be extended for another two to three years and Pakistan would be end-loser as its products were facing high tariffs in rich countries particularly in the US and EU markets. (Dawn, Pakistan)

Local farmers were completely safe under WTO application on agriculture products, Officials in the Ministry of Food, Agriculture and Livestock (MINFAL) told the Daily Times here on Friday. Under the World Trade Organisation (WTO) the developing countries were allowed to declare some agriculture products as Special Products (SPs). Through such declaration, developing countries might impose heavy tariffs over the imports of SPs products. (Daily Times, Pakistan)

An official delegation left for New Delhi on Saturday to review the recommendations of various sub-committees for implementation of certain issues under the South Asia Free Trade Agreement (Safta). An official source told Dawn that the delegation, headed by Commerce Secretary Syed Asif Shah, would represent Pakistan in the Safta Ministerial Council (SMC) — an apex body of Saarc commerce ministers — to review the progress of various measures taken for the implementation of Safta. (Dawn, Pakistan)

In a move that is expected to give a boost to cross-border investments in South Asia, SAARC nations have begun discussions on an investment facilitation, promotion and protection agreement. Besides, an agreement on services sector is also on the cards. The SAARC ministerial conference scheduled next week will discuss the broad contours of the treaty. “Talks will be on putting together an investment promotion and facilitation agreement. It will take care of post-investment issues and identify measures needed to promote investments,” (The Economic Times, India)

South Asia could become one of the more attractive foreign direct investment (FDI) destinations in developing Asia, but the region will have to improve its business climate and build investor confidence to reach its full potential, according to the newest edition of the Asian Development Bank's (ADB) South Asia Economic Report. Liberalization policies, increasing private sector participation, and regional trade agreements have resulted in improved FDI inflows to South Asia. However, the level of FDI inflow into South Asia is still low compared with other Asian sub-regions. (ADB.Org)

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 country’s trade balance with Sri Lanka has turned in favour of Colombo after the Free Trade Agreement (FTA) between the two countries came into effect in June 2005. Previously, the balance was in favour of Islamabad. While signing FTAs and Preferential Trade Agreements (PTAs), the government should conduct a comprehensive study of the relevant market and emphasize active role of officers for boosting exports with the countries of their appointment, Islamabad Chamber of Commerce and Industry President Ijaz Abbasi while addressing the first batch of trade officers-designate of the Ministry of Commerce said here on Wednesday. (The News, Pakistan)

The US-India Private Sector Advisory Group (PSAG) has asked the two governments to negotiate a bilateral investment treaty by end of 2008 while continuing to promote sectoral openings. The group identified these among four key targets in a vision statement presented to Indian Commerce and Industry Minister Kamal Nath and US Trade Representative (USTR) Susan C. Schwab at a meeting of the US-India Trade Policy Forum (TPF) in Chicago Feb 20. (Bilaterals.Org)

Malaysia has refused to allocate export quota of RBD palm olein to Pakistan raising fears of an impending shortage of edible oil in coming days, an industry official told The News on Wednesday. Imports for the month have slumped to 40,000 tons against an average of 100,000 tons, said Sheikh Amjad Rasheed, former chairman Pakistan Vanaspati Manufacturers Association (PVMA). Despite a 10 per cent duty cut extended to Malaysian exporters by Pakistani government, surety of supplies is not forthcoming, he said by phone from Kuala Lumpur where a global palm oil conference is underway. (The News, Pakistan)

Seeing Pakistan’s parliamentary poll as an historic step towards democratic progress, top South Asian experts have urged the United States to bolster economic aid as well as trade access for the country so that the Pakistani people may genuinely feel that America wants their long-term development. “We should try to help Pakistan in its economic development, we should try to do things which masses see as genuine gestures which should be seen as trying to help their interest, which we believe, are also in our long-term interest,” said Eric Bjornlund, cofounder of Democracy International that observed last week’s polls in Pakistan. (The News, Pakistan)

The Senate Standing Committee on Petroleum and Natural Resources was informed on Monday that Pakistan and Iran would formally sign an agreement on Iran-Pakistan-India (IPI) gas pipeline project in March. Briefing the committee, Ministry of Petroleum secretary Farrukh Qayyum said Pakistan had already initiated work on the project and technical details were being worked out with Iran. Under the agreement, Iran would supply 2.10 billion cubic feet of natural gas to Pakistan on a daily basis, for a period of 25 years with a delivery point pressure of 798 PSI. (Dawn, Pakistan)

THE FIRST snows of winter have begun to fall in Badakhshan, a mountainous province in northeastern Afghanistan. A weak sun tries to break through a haze of fog and dust as our horses pick their way along the steep and rocky path that winds alongside a boulder-filled river valley. We are headed for remote Yosaif village, home to some 75 households, or about 650 people, that to date has received no development assistance or other support through internationally supported efforts to rebuild Afghanistan’s war-torn society and economy. (ADB.Org)

Bangladesh will import 100,000 tonnes of diesel from India so that farmers have fuel to irrigate lands during the current boro rice season, a senior official said on Tuesday. "We have adequate stocks of diesel, but still to avoid any unseen situation plan to import further from our neighbouring country," said Anwarul Karim, chairman of the state-run BPC). Nearly 840,000 tonnes of diesel would be needed for irrigating 4.5 million hectares of land during this crop season, officials said. (The Economic Times, India)

For exporters whose margins have been hit by a robust rupee, Finance Minister P Chidambaram had some soothing words in his Budget speech, that the government will lend them a sympathetic ear. He said the government was sensitive to the needs of the export sector and will continue to respond sympathetically "as the situation demands" Relief of over Rs 8,000 crore has already been extended to exporters in three tranches, he said in his Budget speech. (The Economic Times, India)

The most recent warning of the Central Bank that the rate of inflation would increase this year is more realistic than its previous assessment that it would decline gradually. Given the current rate of inflation and prospects for further increases in the prices of some items such as electricity, the most recent expectation of a further rise in inflation is more realistic. In as far as the common man is concerned, the price rises have hurt him so such that the expectation is of further increases in prices. (Sunday Times, Sri Lanka)

► Aggressive plan to promote Sri Lanka in the Middle East

Sri Lanka Tourism has joined hands with Qatar based Al Jazeera channel on a major publicity campaign targeting Arabic speaking travellers in the Middle East market. Accordingly, a delegation headed by Deputy Minister of Tourism Faiszer Musthapha visited the headquarters of Al Jazeera in Qatar recently for negotiations. “There is a need to be more aggressive in promoting the country’s image among Middle East travellers and I have made special programmes and a strategy to promote Middle East travelers to Sri Lanka,” the Deputy Minister of Tourism was quoted as saying -- in a press release. (Sunday Times, Sri Lanka)

Bangladesh is expected to see a turnaround of its economy in the second half of fiscal 2007-08 as business confidence has started returning in the country, Asian Development Bank said Thursday. "The recent recovery in export earnings, growth in private sector credit and the ongoing proper functioning of Regulatory Reforms Commission and Better Business Forum will help the economy bounce back," the latest Quarterly Economic Update of ADB said. (The Financial Express, Bangladesh)

A five-day Myanmar furniture show will be held here early next month in a bid to introduce the country's value-added wood products to the world market and boost timber export, according to the timber trading circle Sunday. Jointly sponsored by the state-run Myanmar Timber Enterprise (MTE) and the Timber Entrepreneurs Association, the Myanmar Furniture Show 2008, from March 3 to 7 with 166 booths, will display various pieces of furniture, finished wood-based products, rattan and bamboo wares as well as wood-made home decoration items, said the sponsor. (English Peoples Daily, China)