EJAD Trad Watch

Globalisation has become a reality in spite of projectionist policies prevalent in many countries of the world. It is no surprise that a man from Pakistan can use the Microsoft software while a man from USA is able to furnish his house with the high quality carpets from Pakistan. Owing to high competition among the global giants, the price of major products has gone down. Consumers have never experienced such a wide variety of products and price ranges ever before. However, this is not the end of the story for all the developing countries. Many industries in the developing countries failed to compete with the international giants. (Business Recorder, Pakistan)

During Pakistan Trade Policy Review at World Trade Organisation (WTO), many WTO members expressed their observations on Pakistan’s trade and economic policies and suggested ways for improvement. United States identified book piracy, weak trademark enforcement, lack of protection for proprietary pharmaceutical and agricultural chemical test data and pharmaceutical patents, as serious barriers to bilateral trade and investment. According to the details released by Geneva-based Pakistan’s WTO Mission, the US representative appreciated the challenging times faced by Pakistan during its political transition. (Daily Times, Pakistan)

The World Trade Organization's purpose is to raise members' "standards of living...in accordance with the objective of sustainable development...in a manner consistent with their respective needs and concerns at different levels of economic development." Trade is not an end in itself, but a means to achieve economic development. Unhappily, the reality seems to indicate to the contrary. National treatment, most-favoured nation treatment, and reciprocal market access have become the central focus of trade rules which do not necessarily reflect developing countries' "needs and concerns at different levels of economic development." (Daily Times, Pakistan)

The Saarc countries last week decided to set up a forum to enhance cooperation among farmers with a view to arrest slow growth the agriculture is currently suffering from in South Asia. It will be called South Asian Forum for Farmers and Co-operatives and will meet in Pakistan in September to take the initiative forward. The decision was taken at a conference on ‘science-based agricultural transformation towards alleviation of hunger and poverty in the Saarc countries’ held last week in New Delhi. Its executive committee will consist of two representatives from each member country. (Dawn, Pakistan)

The Commonwealth Games 2010 in India could do for Pakistan what Olympics 2008 did for India: provide an opportunity to enter a massive market next door in a big way. Over the last five years, dynamics of India-China relationship — one an economic tiger and the other the gigantic economic dragon of Asia — at long last has succeeded in shedding the legacy of embittered history of political relations to realise the benefits that could accrue from closer economic interaction. (Dawn, Pakistan)

The India-Asean free trade agreement (FTA) seems to have come within clinching distance, though the month-end deadline for concluding the negotiations will not be met. In the recent high-level officials meeting in Cambodia, the Indian side managed to make the Asean members happy with their side of offers. The Asean countries, especially Indonesia, however, have to come up with some more concessions to seal the deal. Speaking to ET, official sources said Asean’s improved offer was expected to be made early next month, following which the negotiations would be concluded. (Bilaterals.Org)

Turkey has offered to have a free trade agreement (FTA) with India and wants to boost its exports of food products, textiles, plastics, chemicals, machinery and construction materials. Among agro products, Turkey wants to boost its exports of olives and olive oil, rose oil, tomato paste, canned fruits and vegetables, pasta, pulses, pistachios, sugar and chocolate confectionery, cut flowers, fishery, bulger made from durum wheat. It also wants to export natural stones. (Bilaterals.Org)

Text of speech of the Governor of State Bank of Pakistan at the Golden Jubilee of Pakistan Institute of Development Economics on March 11, 2008. Resilience of Pakistan's economy in the face of unforeseen global and multiple domestic shocks has been a subject of debate - proponents of outgoing Government arguing that it has strengthened, while opponents criticise the state of the economy. In these circumstances, I propose to provide a neutral, unbiased and economic reasoning for why and where we stand today? I encourage Pakistan Institute of Development Economics (PIDE) to further investigate. (Business Recorder, Pakistan)

As trade negotiations between India and Malaysia on a Comprehensive Economic Co-operation Agreement (CECA) progress, Indian Institute of Foreign Trade (IIFT) has identified several products which have high export potential to Malaysia. The list includes auto components and parts, iron and steel and related products, textiles, electrical and mechanical machinery and their spares. At the same time, the institute has identified several other products which, if imported from Malaysia at concessional duties under the proposed CECA, may pose a threat to Indian industries. (Bilaterals.Org)

► Barriers hamper textile trade

Different trade barriers have hampered the growth of textile products and related equipment within the countries in the umbrellas of SAARC and ASEAN. Asian Development Bank has prepared a report that evaluates the competitive position of the members of the Association of Southeast Asian Nations (ASEAN), the members of the South Asian Association for Regional Cooperation (SAARC), and China in terms of growth in volume and value of apparel and textile shipments, market shares, and unit prices for the period 2004-2007. (The Nation, Pakistan)

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)

The European Union has told Sri Lanka it has "very serious concerns" about civil war human rights abuses and that lucrative trade concessions could be at risk if they continue. Rights watchdogs have reported hundreds of abductions, disappearances and killings blamed on government security forces and Tamil Tiger separatists since a bloody civil war, in which 70,000 people have died since 1983, resumed in 2006. "The EU continues to harbour very serious concerns about continuing reports of human rights abuses," senior officials said. (Bilaterals.Org)

A new study on a south Asian regional trade deal has said Sri Lanka will gain more in the next phase of liberalisation but the island’s private sector representatives have expressed scepticism about the outcome. The study on the benefits of the South Asia Free Trade Agreement (SAFTA) found that since 1991 the potential for intra-regional trade has increased with an improvement in ’complementarities’ among the three major trading partners, India, Bangladesh, and Sri Lanka. (Bilaterals.Org)

Major business organizations of Myanmar and Brunei have reached a memorandum of understanding (MoU) on promoting trade ties between the two countries, especially in trading of Myanmar's gems, jade and jewelry, a leading local weekly, the Myanmar Times, reported Friday. The recent MoU between the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and its Brunei counterpart was the last which Myanmar initiated with member countries of the Association of Southeast Asian Nations (ASEAN), the report quoted the UMFCCI as saying. (English People Daily, China)

China and Peru will accomplish a free trade agreement (FTA) and become strategic associates, which would bring more investments and tourism to this South American country, Peruvian Foreign Minister Jose Garcia Belaunde said Thursday. "We have obtained from China the commitment to accomplish the FTA soon, which will create for us a strategic associate status and will also energize the economic and trade relation," he said when accompanying Peruvian President Alan Garcia on an official visit to China. (Bilaterals.Org)

Chile and China started their sixth round of talks on cooperation in the service trade Tuesday in the Chilean capital of Santiago. The service trade is important as it enhances the employment rate and the competitiveness of small- and medium-sized enterprises, Andres Rebolledo, a Chilean official in charge of foreign trade, said. It is of "great significance" to the economic development of Chile, the official added. (Bilaterals.Org)

The government has been urged to adopt a cautious stand on free trade agreement (FTAs), especially in the case of countries like China, and discourage export of raw materials. Import duties should come down gradually under such pacts and India Inc should be enabled to face global competition, says a study by industry chamber Assocham. While acknowledging that India cannot shy away from globalisation, the government has been asked to beef up infrastructure and provide a favourable exchange rate mechanism to ensure a level playing field. “The government should consult the industry before signing FTAs. It is important to take industry representatives into consideration,” Assocham president Venugopal Dhoot said. (Economic Times, India)

During the first few weeks of 2008, the Gross Official Reserves continued to improve and stood at US$3,434 million by March 6, showing a surplus of US$366 million by that date. As per the projected level of imports for 2008, the Official Reserves were adequate to cover approximately 3.6 months of imports. The Gross Official Reserves and Balance of Payment (BOP) surplus by end 2007 were reported to be US$3,063 million and US$531 million, respectively, the bank said. “The Gross Official Reserve position has increased substantially so far this year due to steady inflows of export proceeds and worker remittances, a part of which has been absorbed by the Central Bank. (Sunday Times, Sri Lanka)

► Lanka’s fiscal situation unclear and not transparent – Indian expert

A top Indian economic expert said Sri Lanka's growth rate with inflation being so high in the country is an issue while the country’s fiscal situation is 'not too clear and transparent.' Dr. Govinda Roa, a member of the Economic Advisory Council to the Prime Minister of India, speaking at a seminar at the UNDP Regional Centre in Colombo dthis week, said South Asia is the fastest growing region in the world despite having some of the lowest incomes. With the exception of Sri Lanka and Bhutan, the other South Asian countries have per capita incomes of less than US$1000 with India's per capita income at US$726. (Sunday Times, Sri Lanka)

► World’s most valuable financial brands shift to Asia

Brand Finance plc, in association with The Banker Magazine, has launched the 2007 edition of the Global 500 Financial Brands Index – an annual review of the top financial services brands in the world measured by both brand strength and brand value. The Brand Finance study indicates that the strongest and most valuable banking brand in the world is HSBC (AAA Brand Rating – US$35,456 million brand value). HSBC knocked Citibank into second position (AA Brand Rating – US$27,817 million brand value). It has become the most valuable banking brand in both Retail and Corporate sectors as well as overall. (Sunday Times, Sri Lanka)

THE importance of the Information Technology (IT) has risen to such a level that it has now become the pre-condition of development in any society globally. So, it is no more a matter of choice whether one should go all out for the development of the IT sector or not. The awareness about this basic fact of life in the modern times is also nothing new in Bangladesh. The successive governments were never short of promises to develop this sector of the economy to an enviable level. But notwithstanding all the pledges, goodwill and enthusiasm about the development of the Information Technology (IT) sector. (The Financial Express, Bangladesh)

Industrial environmental situation in Pakistan needed to be addressed properly, and the World Bank is evaluating the scope of its assistance to help government of Pakistan promote clean production in the country. This was stated by Mission Leader, Industrial Environmental Management Policy Mission of the World Bank, Washington Ernesto Sanshez-Triana in a meeting with Chief Executive Officer of Small and Medium Enterprise Development Authority (SMEDA) Shahid Rashid here on Tuesday. The mission included Task Team Leader Kulsum Ahmed, Lead Environmental Specialist. Dan Biller, Javaid Afzal, the local environment consultant of the World Bank. (Daily Times, Pakistan)

► Int'l textile fair begins in Bangladesh

A four-day long international fair on textile and garment machinery will begin in Chittagong tomorrow. Chittagong Chamber of Commerce and Industry President Saifuzzaman Chowdhury is expected to inaugurate the exhibition titled 'Chittagong International Textile & Garment Machinery Exhibition (CTGE) 2008'. Extreme Exhibition & Event Solution Ltd (E3 solutions) is organising the exhibition, first of its kind in the port city. (The Daily Star, Bangladesh)