► Man-made crisis pushing 100m into poverty

The World Bank chief warned on Tuesday that 100 million people have already been pushed into poverty due to a man-made food crisis while as many as two billion are on the verge of disaster. “This is not a natural disaster,” said Robert B. Zoellick, president of the World Bank. “Make no mistake; there is nothing natural about this. But for millions of people it is a disaster.” He noted that hunger and malnutrition were already the underlying causes of death of over 3.5 million children every year, robbing the future potential of many millions more. In Washington, a US government commission is investigating claims that big investors who buy large quantities for future trading are largely responsible.  (Dawn,  Pakistan)

► Food crisis sparks role reversal in WTO

The food crisis is bringing about a role reversal in the World Trade Organization: traditionally liberal major food exporters are now imposing restrictions on exports while protectionist states are pushing for liberalisation. To deal with the recent hike in food prices, Argentina, Brazil, Vietnam, India and Egypt have all imposed limitations on the export of certain produce in order to ensure food security for their populations. This is unusual for some of these countries. Argentina and Brazil, for instance, are part of the Cairns group, among the most aggressive proponents of liberalisation in the Doha round of trade liberalisation negotiations at the WTO.  (Economic Times,  India)

► Western nations continue to torpedo efforts to create an equitable global trading regime

Pakistan and other developing countries have been pressing for a non-discriminatory global trading system ever since the WTO ministerial conference in Cancun, Mexico five years ago, but to no avail. The main sticking points are the reluctance on the part of the wealthy nations to slash the massive subsidies they give to their farmers and greater access to rich countries’ markets for products from developing nations. The North-South dialogue between rich and poor nations, which was aimed at creating a more equitable new economic order, was sandbagged by US President Ronald Reagan more at a meeting in Cancun, Mexico in 1983. Nothing has been heard of the new economic order since then.  (The News,  Pakistan)

► Selective trade liberalisation

High levels of protection continue to be applied in the markets of developed countries against those products that are of special interest to developing countries. Of the total 151 members of the World Trade Organisation (WTO), an overwhelmingly majority are developing countries. To help these countries secure a share in global trade commensurate with their development needs is one of the primary objectives of the WTO. The principal way through which the multilateral trading system can contribute to development is to create enhanced export promotion opportunities for developing countries.  (The News,  Pakistan)

► WTO implications and survival of agriculture sector

Agriculture continues to be the single largest sector, a dominant driving force for growth and the main source of livelihood for 66 percent of the country's population. It accounts for 20.9 percent of the GDP and employs 43.4 percent of the total work force. Agriculture is at the center of the national economic policies and has been designated by the government as the engine of national economic growth and poverty reduction. It contributes to growth as a supplier of raw materials to industry as well as a market for industrial products and also contributes substantially to Pakistan's exports earnings. Thus any improvements in agriculture will not only help country's economic growth to rise at a faster rate.  (Business Recorder,  Pakistan)

► WTO deal seen having little impact on food prices

Soaring food prices have surfaced as a big concern in the delicately poised agriculture negotiations at the World Trade Organisation (WTO). But because any WTO deal will have an impact only in the long term, the Geneva talks will not offer a solution to the immediate crisis, diplomats and officials say.  A doubling of the prices of major cereals on international markets since mid-2007 has sharply increased the risk of hunger and poverty in developing countries where many people spend the bulk of their household income on food. Already food riots and protests have been seen across Asia and Africa, and Haiti’s government has fallen. International aid agencies are struggling to feed people in their care.  (Daily Times,  Pakistan)

► India need not rush for an unfair Doha deal 

Leaders of worlds major trading nations, including EU trade commissioner and India’s commerce minister Kamal Nath, have recently echoed WTO’s not-very-impartial director-general Pascal Lamy’s concerns that the plans for a deal on further liberalisation of world trade (under the world body’s Doha Round mandate) would come unstuck, in the absence of a serious bid at the ministerial in May. Mr Mandelson feels this is the “last chanceâ€� to sort out a deal, considering that 2009 would be a “dead yearâ€� because of a new government in the US.  (Economic Times,  India)

► India, US to make fresh efforts in Doha talks

In a renewed effort to achieve a global trade deal under Doha Round of multilateral talks, trade ministers of India and the US will meet next week to bridge differences on farm subsidies and opening markets for industrial and agricultural products. "I am meeting USTR (Susan Schwab) on May 6. We are trying to see how we can converge," Commerce and Industry Minister Kamal Nath said during his recent visit here. Nath said although no date has been fixed for the Ministerial Meeting, the highest decision-making body of the World Trade Organisation is likely to meet in Geneva next month.  (Economic Times,  India)

► India to provide textiles’ duty free market for SAFTA 

India will provide duty reduction to the Agreement on South Asian Free Trade Area (SAFTA) member countries ranging from zero to five percent within ten years, said Minister of State for Textiles, E V K S Elangovan today. In a written reply in the Rajya Sabha, he said in pursuance of commitment made during SAFTA negotiations, the government has decided to provide zero duty market access for 8 million pieces of garments annually from Bangladesh, operationalized through a Memorandum of Understanding (MoU) signed between the governments of India and Bangladesh.  (Bilaterals.Org)

► Asia's economic growth to remain fast with momentum from China, India 

With the enormous momentum from China and India, Asian economies will still grow at a relatively fast pace in the next two years, according to a report issued Wednesday by Standard & Poor's.  The recession in the U.S. economy for the first half of 2008 will not have a strong impact on Asia, Subir Gokarn, S&P Asia-Pacific chief economist, said in the report. The momentum from China and India, two of the three largest economies in the region, "will help sustain a positive growth environment for Asia-Pacific as a whole," and "insulate themselves against a U.S. recession," according to the report.  (English People Daily,  China)

► Trans-Asian energy system proposed

The United Nations has proposed a trans-Asian energy system for enhanced regional energy security for a sustainable social and economic development in the 21st century. “Asia and the Pacific as a region is rich in energy resources, but these resources are unevenly distributed, trade in energy is considerably imbalanced,” says “energy security and sustainable development in Asia and the Pacific,” a theme study released by the United Nations Economic and Social Commission for Asia and the Pacific (Escap). Some 1.7 billion people in the region are using traditional biomass fuels, and one billion people still lack access to electricity.  (Dawn,  Pakistan)

► Delay in TAPI project doubled its cost

The Asian Development Bank (ADB) has warned that the delay in the materialisation of Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline has escalated the cost of the project from $3.3 billion to $7 billion, well-placed source told Daily Times on Wednesday. The country director of Asian Development Bank, Peter L Feden, during the two-day meeting of steering committee on TAPI that started on Wednesday, warned all stake holders of the TAPI gas pipeline project that further delay in the implementation of the project would cause further escalation in the cost of the project.  (Daily Times,  Pakistan)

► Asian governments must combat inflation

Inflation is the greatest threat to Asian economies and regional leaders must make combating it a priority in 2008, Asian Development Bank President Haruhiko Kuroda said in an interview published on Wednesday. “The greatest macroeconomic danger is inflation. Given than food and fuel are the basic elements of the budgets of Asian families, the recent rise in prices will create inflationary pressure,” he told the Cinco Dias newspaper. “The rise in prices of these products will have a disproporionate impact on the poorest people,” Kuroda said.  (Daily Times,  Pakistan)

► The international and domestic politics of oil  

The price of crude registered a whopping $119.90 this week, the highest ever. The causes behind this rise are several. The most obvious one is linked to emerging world supply constraints. An attack on a Nigerian pipeline which was to transport oil from a 400,000 barrel a day oil field to Royal Dutch Shell PLC was blown up last week. In Mexico, oil production declined by 7.8 percent in the first quarter as output in the oil fields diminished. In Scotland, the threat of strike action over changes to the employee pension plan in the 196,000 barrel a day.  (Business Recorder,  Pakistan)

► Growing prospects for Pak-Afghan economic cooperation

There exist bright prospects for the growth of close economic collaboration between Pakistan and Afghanistan. The realisation by Afghanistan that in many areas especially in food supply its dependence on neighbouring countries and especially Pakistan is of vital importance. The bilateral trade in the formal sector between both the geo-strategically located countries, along the historic silk route that connects this region with Central Asia, South Asia and the Middle East, has already considerably improvedand the Middle East, has already considerably improved.  (The News,  Pakistan)

► Sino-India border trade at Nathu La postponed

The annual Sino-India border trade at Nathu La, which was to be reopened for the traders of the two countries today, has been postponed following the Union Commerce ministry's communique to the Sikkim government authorities, official sources said here. We have received a fax message from the Union Commerce ministry late last evening informing about the postponement of the re-opening of the border trade at Nathu La, the District Collector (East) Vishal Chauhan said. The re-opening of annual trade at Nathu La may take place on May 19 next, he said. Both European and Indian negotiators are finding progress slow on a key free trade agreement with Europe.  (Economic Times,  India)

► IPRs to find place in India’s FTA with EFTA nations

A free trade agreement is slated to be finalised between India and the European Free Trade Association (EFTA) by early 2009. The EFTA countries include Iceland, Liechtenstein, Norway and Switzerland. Apart from trade in industrial and agricultural goods and services, there would be strong focus on implementation of intellectual property rights regime. The EFTA countries and India had earlier set up a joint study group to move towards a broad-based trade and investment agreement.  (Bilaterals.Org)

► FTA with EU could increase Indian exports by 20% 

Both European and Indian negotiators are finding progress slow on a key free trade agreement with Europe that could net India billions of extra dollars in 20 percent more exports, a British minister has warned. New Delhi has given its negotiators an ambitious year-end target to strike a free trade deal with the 27-nation European Union but has been frustrated by what it says are European technical barriers to trade. However, Britain's minister for international trade Gareth Thomas, fresh from a meeting with India's Commerce and Industry Minister Kamal Nath in Accra, Ghana, said the two sides needed to move faster. "European and Indian trade negotiators are finding, I have to say, progress slow on the EU-India Free Trade Agreement."  (Economic Times,  India)

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