EJAD Trad Watch

In theory, globalisation promotes free trade. In practice, however, the benefits of the new global trading regime tend to flow mostly in the direction of rich countries, adding to the huge economic disadvantage that poor countries suffer from When share prices on Wall Street nosedived in the wake of the 9/11 attacks on the World Trade Centre and the Pentagon, billions of dollars in global funds fled the United States and moved into Europe. Fund managers loaded up on European stocks and bonds, reasoning that corporate profits in Europe would be the best of a bad lot and the European governments would be hit less hard by the costs of reconstruction, retaliation and revenge – the new “Three Rs”. (The News, Pakistan)

The WTO Agreement focuses on liberalisation and openness in trade whereby trade regulatory and protectionist measures are eliminated. Trade defence mechanisms have been included as a balancing factor to protect domestic producers from unfair trading practices of foreign competitors. Among the trade defence instruments allowed to WTO member countries, Anti-Dumping Measures relate to dumping. Dumping ie supplying to a foreign market at less than fair value is seen as militating against fair trade and therefore as anti-competitive. (Business Recorder, Pakistan)

Commonwealth governments should respond to the needs of people by agreeing to a global trade deal and tackling climate change - the "greatest threat" to mankind, Lord Swraj Paul, leading NRI industrialist, has said. "The Commonwealth is relevant, and credible. It delivers. It is dynamic and innovative, as must be the Commonwealth Parliamentary Association," the British Ambassador for Overseas Business said addressing a parliamentary delegation from Isle of Man. (Economic Times, India)

Developing countries expressed concern over a set of new multilateral rules, proposed at the World Trade Organization (WTO), to restrict subsidies to the fisheries sector, contending that these would have an adverse impact on the livelihood of poor fishermen. Developing countries in Africa, the Caribbean and Pacific, and India in a joint submission to a WTO negotiation committee, recently, argued that restrictions on legitimate subsidies to fisheries sector could affect those engaged in fishing in coastal areas and islands, official sources here said. (The Daily Star, Bangladesh)

India’s demand — backed by a host of other developing and least developed countries — for including `disclosure norms’ in the trade-related aspects of intellectual property rights (Trips) agreement to check bio-piracy will be discussed at the Trips council meeting at the World Trade Organisation (WTO) later this week. Mandatory disclosure norms will require patent applicants to show evidence of prior informed consent to use local materials, and of benefit sharing with the country of origin. Developed countries, including the US, Japan and Australia, are against the proposal. (Economic Times, India)

Agriculture Minister Sharad Pawar on Wednesday urged the SAARC countries to strengthen the regional trade and pointed out that the region does not correspond to the so-called natural trading partner hypothesis and "SAFTA’s economic relevance is being questioned". Pawar also asked the South Asian countries to give a big push to farm and realise high growth rate, while noting that a slew of factors have led to a laggard expansion in this sector in the region. (Bilaterals.Org)

India on Monday exuded confidence that the new government in Islamabad will take immediate steps to implement the South Asian Free Trade Agreement with New Delhi and take necessary measures, including duty changes, to facilitate trade. "We are looking toward the new government in Pakistan to take more positive steps in fulfilling the agreement in SAFTA, which it has acceded to but not implemented. We are looking at the new administration in Pakistan to look at this positively because it is an advantageous situation for them," (Bilaterals.Org)

The WTO cell of the Trade Development Authority of Pakistan (TDAP) has been given a task to work with the stationery industry and develop a proposal for the ministry of commerce to include stationery items in the free trade agreements (FTAs). This task was assigned to the WTO cell by the TDAP Chief Executive, Tariq Ikram, at a recently held debriefing of stationery manufacturers who participated in the “Paper World China” Shanghai exhibition in November 2007. It was noticed that none of the existing FTAs benefited the stationery industry. (Dawn, Pakistan)

After political opposition to bilateral trade agreements, it is now the Reserve Bank of India that is raising the red flag on treaties signed by India. But unlike the objection by the political class, including Congress president Sonia Gandhi, to bilateral trade agreements, the central bank’s concerns are grounded in a the need for a more liberal regime for the banking and financial sector. As part of India’s strategy to offset the lack of progress in multilateral talks at the World Trade Organisation. (Bilaterals.Org)

The private sector companies in the US and India are aggressively pursuing "significant opportunities" for bilateral trade, but there are challenges that American investors continue to face as India opens its markets, the Bush Administration has said. "Commensurate with India's dynamic and growing economy, the bilateral agenda continued to expand with respect to the significant opportunities for bilateral trade that the US and Indian companies are aggressively pursuing, as well as the challenges US investors continue to face as India gradually opens its markets,". (Economic Times, India)

India and the European Union (EU) will this week seek to resolve nagging differences over tariff and services which have considerably slowed down negotiations on the proposed Trade and Investment Agreement (TIA). Commerce Minister Kamal Nath will meet EU Trade Commissioner Peter Mandelson in London later this week to give a push to negotiations on the agreement, which were slated to conclude by the end of this year. (Economic Times, India)

The Pakistan-European Union Joint Commission is expected to meet within three months after remaining suspended for over a decade, sources in the Foreign Office said after a meeting of the Pak-EU Political Directors here on Monday. The EU delegation was led by Matjaz Sinkovec, state secretary of Slovenia, which currently holds the EU presidency, while Akbar Zeb, additional foreign secretary (Europe) led the Pakistani side. (Bilaterals.Org)

President Islamabad Chamber of Commerce and Industry (ICCI) Ijaz Abbasi on Friday stressed the need for Free Trade Agreement or Preferential Trade Agreement (FTA/PTA) between Pakistan and Canada for increasing bilateral trade as at present Pakistani exports to Canada are very low. He expressed these views during a meeting with Anwar (Andy) Merchant, President Pak-Canada Business Council here on Friday. ICCI chief said the over all trade volume between Pakistan and Canada was $696 million, whereas Pakistani export’s share was only $201 million. (Bilaterals.Org)

Pakistan's cotton traders are in favour of resolving the cotton supply issue with Indian traders without government interference, sources told Business Recorder here on Saturday. Sources said that government's decision to take up this issue with Indian High Commission here, Indian Cotton Association, or Indian Textile Ministry, is not being welcomed by the traders doing business with Indian counterparts. (Business Recorder, Pakistan)

Bangladeshi traders said on Sunday that an Indian ban on exports of rice at less than $650 per tonne would cause further volatility in Bangladesh markets, where food grain prices have risen nearly 60 per cent in the past six months. The ban will particularly affect rice imports by Bangladesh's private sector, which brings in the bulk of grains imported every year to fill the gap between production and demand and to build emergency stocks in the calamity-prone south Asian country. (Economic Times, India)

Oil prices hit a record high $107.85 on Monday as the White House announced that US Vice President Dick Cheney will head to Opec kingpin Saudi Arabia next week to seek increased production. Dealers said oil had fallen in early trade on profit-taking but concerns over the weakness of the dollar and tightening supplies provided support and news of the Cheney trip then added an extra twist. The New York contract for April delivery had hit a previous peak of $106.54 on Friday. (Dawn, Pakistan)

► Sri Lanka: Capital flows to India rise, raising absorptive concerns

India has recorded a growth rate of over 8 percent in 12 successive quarters from January 1, 2005 to December 31, 2007 with services and manufacturing being the drives of growth, estimated to grow at 10.7 percent and 9.4 percent respectively. For the past three years, India's GDP has reached an 'unprecedented average growth of 8.8 percent' and according to estimates for the current year, the growth rate will be 8.7 percent although India's Finance Minister, P. Chidambaran said he is confident in maintaining the average 8.8 percent. He made these comments in presenting India;s 2008-09 budget this week. (Sunday Times, Sri Lanka)

Economic cooperation and integration will deepen and be a key pillar of Asia's development strategy, the head of the Asian Development Bank (ADB) Haruhiko Kuroda said Monday. Addressing a conference here on "European and Asian Integration: Achievements and Challenges," Kuroda said while Asia lacks a grand plan for regionalism as Europe, the European Commission (EC) and the ADB can work together to add value to economic integration and regional cooperation. Asia can learn important lessons from Europe, but will follow its own distinct model, he added. (English People’s Daily, China)

The four-day Thailand Exhibition 2008 began at Dhaka Sheraton Hotel yesterday with Bangkok renewing its proposal for bilateral FTA with Dhaka for boosting the two-way trade. Secretary for the Ministry of Planning Jafar Ahmed Chowdhury inaugurated the exhibition. Thai Ambassador in Dhaka Chalermpol Thanchitt and Kazi Habib Sattar, president of Bangladesh-Thai Chamber, among others, addressed the opening ceremony. (Bilaterals.Org)

The fifth Textile Asia International Exhibition will be held from April 4 to 7 at the Karachi Expo Centre. An announcement here on Saturday said the Almurtaza Machinery Company (Pvt) Ltd (AMCL) will display latest embroidery machines on the occasion. It said that this year Almurtaza was featuring Tajima's latest Sequin Device II Twin Type, which was the first device of its kind. "It is now possible to embroider a maximum of four different sizes, shapes and colours on each head. (Business Recorder, Pakistan)