EJAD Trad Watch

Amid the noisy battering the North American Free Trade Agreement (Nafta) is taking from both Democratic presidential hopefuls, one recent statement from Hillary Clinton was particularly resonant. "We will have a very clear view of how we’re going to review Nafta," the New York senator said. "We’re going to take out the ability of foreign companies to sue us because of what we do to protect our workers." The treaties and tribunals that regulate international investment have become both more powerful and more controversial as global trade becomes less. (Bilaterals.Org)

► End global poverty before global warming

Developing nations can accelerate their economic growth by harnessing the appropriate technologies for sustainable development, the chairman of the Board of Investment (BOI) has said. Speaking at a recent panel discussion on “Climate Change” at the Foreign Ministry, Dhammika Perera said it was necessary to end global poverty before global warming and noted that ‘you can balance development with concern for the environment’. He said in in order to alleviate poverty, economies need to industrialize. Industrialization leads to emissions. (Sunday Times, Sri Lanka)

The South Asian Free Trade Agreement (SAFTA) signed by the members of the SAARC and implemented in July 2006, has since been a matter of concern for the countries involved, regarding how effective it is in increasing the economic wellbeing of the region in general. When it was initially signed, the goals included forming a common currency for the region and forming a Customs Union (CU) which would eventually lead to Total Economic Integration. The first stage of the agreement has been successful for only certain countries, and Sri Lanka only to some extent. Recently a survey was conducted on the quantification of the benefits of the SAFTA to the region as a whole was undertaken by The ADB. (Bilaterals.Org)

The South Asian Free Trade Agreement (SAFTA), signed in January 2004 came into operation on January 1 this year, but the Tariff Liberalisation Programme (TLP) started on July 1 because the member countries were not ready. Under this agreement all member countries conduct trade with each other on all items, except those in negative list on which duties are not reduced. However, there is a significant exception to this rule that is the trade from India to Pakistan. This exception considerably lowers the effectiveness of SAFTA and raises questions about its future. SAARC so far has poor intra-regional trade record. Trade within the region amounted to just 4.5 percent of the region's $135 billion annual trade flows. (South Asia Analysis)

► Saarc body suggests measures to boost energy cooperation

A two-day fourth meeting of SAARC Working Group on Energy on Thursday reviewed the updated progress of the group and recommended measures to boost energy cooperation among the SAARC member states. The meeting focused on regional energy cooperation options including the concept of SAARC energy ring, consideration of the recommendations of the South Asia Energy Dialogue held in March 2007 in New Delhi. The road map for energy efficiency and energy conservation in the region developed in seminar of regional experts held in April 2007 in Islamabad status of a study on regional energy trade being undertaken with assistance of Asian Development Bank. (The Nation, Pakistan)

The government today asked the country’s business houses to shift focus to the SAARC region and exploit the opportunities there, especially when the US and the European economies are slowing down. "Instead of focusing on US and EU markets, we should now look at our neighbours and intra-SAARC trade... South-South trade is going to increase," Commerce Secretary G K Pillai said at a Ficci seminar here. He said South Asia Free Trade Agreement (SAFTA) provides an opportunity for increasing regional trade which should be exploited by South Asian business houses. (Bilaterals.Org)

The D-8 countries on Friday finalised the rules of origin for the implementation of the much-awaited preferential trade agreement (PTA) to increase the volume of regional trade. The high-level trade officials of the bloc — Pakistan, Bangladesh, Egypt, Nigeria, Malaysia, Turkey, Iran and Indonesia — had signed the PTA in Bali in May 2006, which was delayed due to failure of the block in finalizing the rules for its implementation. A senior official in the commerce ministry said that the rules were finalized in a two-day meeting of the technical experts of the member countries headed by Secretary General D-8 Dipo Alam. (Dawn, Pakistan)

IFC, a member of the World Bank Group, recently extended a trade finance facility to Sri Lanka’s Commercial Bank of Ceylon PLC to promote cross-border trade. The $12 million facility is funded through the IFC Global Trade Finance Program, which supports trade with emerging markets worldwide and promotes the flow of goods and services between developing countries. IFC provides partial or full guarantees against underlying trade instruments and covers the payment risk of participating issuing banks. , “We are delighted to strengthen our partnership with IFC by joining its Global Trade Finance Program. Access to the network will increase our trade finance opportunities globally.” Managing Director of the Commercial Bank of Ceylon Amitha Goonaratne. (Daily Mirror, Sri Lanka)

If to some people, the words ‘cricket’ and ‘conflict’ come to mind when thinking of India and Pakistan, we need to update the language to embrace another two ‘Cs’ -connections and commerce. The year 2008 has in fact already seen a wide-ranging number of breakthrough developments in areas such as film, finance and flights. Bollywood could finally be coming to Pakistan as Pakistan’s parliamentary committee on culture has given its go-ahead to lift a four-decade ban on Hindi films. The Securities and Exchange Board of India . (Bilaterals.Org)

With Malaysia and Bangladesh both forecasting sharp increases in their pharmaceutical exports, business groups are calling for the establishment of a Free Trade Agreement (FTA) between the two nations. At the recent Showcase Malaysia trade exhibition in the Bangladeshi capital of Dhaka, government officials from both sides agreed that an FTA, which was first proposed in 2004, should now be established. (Bilaterals.Org)

Peru and China have agreed to boost trade and investment between their countries ahead of a free trade deal planned for November, President Alan Garcia said. The countries, whose trade balance reached US$5.3 billion (€3.6 at year-end rates) in 2007, will in coming months sign a preliminary partnership to increase commerce more than fourfold by 2015, Garcia told local media on Friday night, after a six-day visit to China and Japan. (Bilaterals.Org)

New Zealand has proposed to have a free trade agreement (FTA) with India. It also wants that India import wine, dairy and timber products to boost the bilateral trade between the two countries to more than 616 million NZ dollars. Speaking to FE, the visiting New Zealand minister for agriculture, forestry, bio-security and forestry, Jim Anderton said: "In our meetings with the Indian science and technology minister, Kapil Sibal and agriculture minister, Sharad Pawar, we proposed that there should be a FTA between the two countries. (Bilaterals.Org)

India is working on signing a Preferential Trade agreement (PTA) with South Africa Customs Union (SACU), a regional sub-group of African nations comprising South Africa, Botswana, Lesotho, Namibia and Swaziland. According to External Affairs Minister Pranab Mukherjee, while India had trade agreements with 29 African countries, “negotiations were on for for a PTA with South African Customs Union’’. He also said that India and the 17-member Common Market for Eastern and Southern Africa (COMESA) had decided to set up a Joint Working Group. (Bilaterals.Org)

Head of World Trade Organisation (WTO) Cell, Trade Development Authority of Pakistan (TDAP), Mujeeb Ahmed Khan has said that with the help of Free Trade Agreements (FTA), exports to China are expected to reach US$4.5 billion by 2012 and to Malaysia $1.8bn by 2015. He said that these figures are based on traditional products that are exported to the two countries from Pakistan, while non-traditional commodities remain untouched due to lack of awareness and marketing. He said this during a seminar on “Exploring Pakistan’s Export Potential in China and Malaysia in the context of Free Trade Agreements,” (Bilaterals.Org)

Major rice exporters Vietnam and India on Friday said they will curb overseas sales more in an effort to combat food inflation, threatening to heighten the world’s anxiety over staple food supplies. Hanoi confirmed it will cut rice exports by 22 per cent this year from last. India raised the minimum sale price for rice exports by more than 50 per cent, effectively ending overseas sales of all but the highest quality grades. These are the latest measures by governments from Manila to Cairo to ensure sufficient supplies for their expanding populations at a time when global stockpiles have halved. (The News, Pakistan)

When it comes to rice - the staple food in Asia - governments don't like to risk failing to fill their peoples' stomachs. Faced with rising rice prices on the international market and unprecedented price volatility, Asia's rice exporters, with the sole exception of Thailand, have responded by imposing export bans while importers are seeking ways to increase stocks and reduce consumption. The panic arguably started this January in India, where the government stopped issuing export licenses for all rice grades bar Basmati, India's premium rice. (Business Recorder, Pakistan)

State-owned Indian Oil Corporation (IOC) will not export fuel to Bangladesh as it does not have adequate stock of the same, officials said. Bangladesh Petroleum Corporation (BPC) officials said Bangladesh signed a contract with the Indian company in January last for importing at least 120,000 tonnes of fuel oil for one year initially mainly to meet demand for the greater Khulna region. Under the contract, the first shipment of 10,000 tonnes of diesel was scheduled to reach Bangladesh by the end of March or early April through rive route. The BPC could save at least US$ 1.0 a barrel on account of transportation cost for brining the fuel to Khulna from Kolkata through river route. (The Financial Express, Bangladesh)

The Afghan Minister for Trade and Commerce has said that his country has signed a bilateral trade agreement with Pakistan. Talking in Kabul Hamidullah Farooqi said the agreement was finalized for promoting bilateral trade ties between the two neighbouring countries, Radio Tehran reported. He said it was in the interest of the Afghan traders and business community. The Minister said the agreement was signed between Pakistani officials and an Afghan trade delegation during its visit to Islamabad. (Bilaterals.Org)

The government move on lowering customs duty on edible oils for pushing down its prices has started yielding positive results. On the heels of getting a huge relief from reduced import duty on crude palm oil (CPO) from 45% to 20%, which serves as raw material of vanaspati, vegetable fat producers have slashed their product prices by Rs 4-5/kg. Concerned with spiralling edible oil price, which among others, is also responsible for driving up inflation, the government has slashed import duty on all crude vegetable oils from 45% to 20%. (Bilaterals.Org)

At launching the “Economic and Social Survey of Asia and the Pacific 2008” the renowned economist, Dr Sarfraz Khan Qureshi, on Thursday said the government has to curtail wasteful expenditures otherwise it would again fall in to clutches of the IMF and World Bank (WB). The government has to reduce the budget deficit to the minimum level and the resources so saved should be diverted towards economic development of the country, he maintained. The United Nations Economic and ESCAP launched its flagship publication today in more than 20 capitals in the region, and in New York and Geneva. (Daily Times, Pakistan)

Asia's economic growth is losing steam this year as weakening demand from the United States and Europe hits the region's exports, while rising inflation heralds further currency gains, a Reuters poll shows. China's economy is on track for its sixth straight year of double-digit growth, but the pace of expansion is clearly slowing and that would reduce its appetite for goods from the region that are ultimately destined for the United States and Europe. "The big concern now is that the US economy may drag down Europe and Japan as well and deal a heavy blow to China's exports,". (The Financial Express, Bangladesh)

► Power deal between India & Sri Lanka on fast track

Amidst soaring electricity rates, the Government is giving priority to the proposed multi-million dollar mega undersea power transmission line with India. Power and Energy Minister John Seneviratne said yesterday he or a senior official from his ministry would lead a delegation to India for this purpose. A preliminary feasibility report has already been completed. The $450-million project involved the laying of a 200-km long submarine cable to enable India to export electricity to Sri Lanka and would connect Madurai in Tamil Nadu with Thalaimannar, Mannar and Anuradhapuara, The Sunday Times learns. The plans to expedite the export of electricity from India comes as millions of people struggle to meet electricity rates. (Sunday Times, Sri Lanka)

► Biofuels boom hurting Asia's poorest, says UN

Biofuels are not only hurting poor consumers in Asia by driving up crop prices, they are also failing to help the region’s farmers who have not been able to adapt their production to cash in on the boom, a United Nations report said on Thursday. “So far, poor rural farmers have not seen the benefits of biofuel production. They lack the wherewithal to extend their land and adapt to new crops. And the impetus for large-scale farming can push the poor off their land, excluding them from biofuels,” it said. “Small poor farmers in particular, have been left behind,” . (The Nation, Pakistan)

Bangladeshi sanitary ware was launched in the markets of Nepal at a function held at hotel Soaltee Crown Plaza in Kathmandu Friday. Bangladesh Ambassador in Nepal Imtiaz Ahmed inaugurated the function. Business communities of both countries have taken measures to further boost and expand the trade and commerce relations between Bangladesh and Nepal. Bangladesh Ambassador in Nepal Imtiaz Ahmed inaugurated the function. Business communities of both countries have taken measures to further boost and expand the trade and commerce relations between Bangladesh and Nepal. (The Financial Express, Bangladesh)

Visiting Asian Development Bank (ADB) Director General for South Asia Kunio Senga Monday assured Bangladesh of any support, if necessary, to tackle the country's vulnerable food situation. "We'll closely monitor the situation and would be ready to help the government in any manner," he told reporters after a meeting with Finance and Planning Adviser Dr Mirza Azizul Islam. The ADB director general arrived here Sunday night on a three-day official visit to Bangladesh. Kunio said ADB is ready to provide support to face the food situation if the government is unable to manage it and request the ADB for its support. (English People Daily, China)

► End global poverty before global warming

► Power deal between India & Sri Lanka on fast track