► India ask US, EU to show leadership in Doha talks

India on Friday said the multilateral negotiations on Doha Round are poised at a delicate stage and their conclusion will depend on the beneficiaries of the previous WTO agreements willing to make contributions for a new trade deal. "Major trading nations such as the US and the EU have to display leadership and not lay the onus for the Round's success only on developing members," Commerce and Industry Minister Kamal Nath said in a statement here, days before release of the fresh negotiating texts for agriculture and industrial goods.  (The Economic Times,  India)

► Elusive SAFTA

Fourteen SAARC Summits have been held till date, but the SAFTA is yet to take off! While ASEAN and EU are reaping the benefits of a common market, South Asian countries continue to lag behind. Since the start of our liberal economic policies we have been opening up our market to foreign goods and investments, such as China and South East Asia . While we have signed FTA with Thailand , SAFTA is still elusive. This raises the question: what should India do? With Pakistan unwilling to extend the MFN (Most Favoured Nation) status, should we keep waiting for it to act, or considering that India is a large country.  (Bilaterals.Org)

► SAARC to ensure regional food security 

Eight South Asian countries have launched a regional food security programme, pooling together scientific and natural resources to improve crop production and nutrition in the region. The 'South Asia Food Security Programme' will receive an estimated US$ 25 million for ten projects addressing South Asia's food security.  The announcement was made by Ram Badan Singh — secretary general of the Indian Farmers Fertiliser Cooperatives Limited — at a meeting of South Asian agriculture ministers, crop scientists and farmers' cooperatives in New Delhi, India on March 5.  (South Asia One World,  India)

► India, Lanka services pact soon

Talks for an agreement on enhanced market access for service sectors between India and Sri Lanka are at an advanced stage and are likely to be concluded by the month-end. Both countries had entered into a free trade agreement (FTA) covering goods that became operational since March 2000. The FTA will be upgraded to a Comprehensive Economic Partnership Agreement (CEPA), covering services and investments. "We hope to conclude negotiations by the end of this month. If that happens, the deal could be signed by August," said a government official.  (Bilaterals.Org)

► Second round of negotiations on CEPA

The second round of negotiations between Srilanka and Pakistan on Comprehensive Economic Partnership Agreement (CEPA) starts in Islamabad today (Tuesday). The negotiations aims to incorporate chapters on investment and trade in services and customs cooperation into the bilateral Free Trade Agreement (FTA) between the two countries. The chief negotiator from Pakistan side is Mr. Shahid Bashir, senior Joint secretary, Ministry of Commerce. and from Board of Investment, assist him. Ms. Manel de Silva, Director General of Trade head the Srilankan delegation. Ms. Menik Chandrasiri and Mr. Nonis, department of trade include the srilankan delegation.  (Bilaterals.Org)

► Pakistan, Mauritius to activate FTA in 18 months

Pakistan and Mauritius agreed to operationalise a free trade agreement between the two countries within 18 months to boost South-South trade. Addressing a press conference at the Ministry of Commerce after the conclusion of a three-day 7th Joint Working Group (JWG) meeting, Anand Priyay Neewoor, the head of Mauritius delegation, said the issue of sensitive products would be settled once the FTA became operational between the two countries. Anand said Pakistani business community could benefit from high per capita income of Mauritius by exporting goods and services.  (Bilaterals.Org)

► BD tenders to import 100,000T wheat

Bangladesh has issued a tender to import 100,000 tonnes of wheat by the end of July to boost emergency food stocks, officials said on Saturday. The tender issued by the Food and Disaster Management Ministry, will close on June 2 and will run until June 22, for shipment within 30 days of signing the contract. The tender price has to be quoted separately for the country’s Chittagong and Mongla ports, based on the cost of the cargo, insurance and freight including stevedoring on the seller’s account, at both ends of the shipment. Earlier on Thursday, Singapore-based Agrocorp International Pte Ltd won a deal via tender to supply 100,000 tonnes of soft red winter wheat, by end of June.  (The News)

► Boosting Pak-Yemen relations  

The 5th meeting of the Pak-Yemen Joint Ministerial Commission (JMC), that concluded in Islamabad with the signing of a number of Memorandums of Understanding (MoUs) and agreements will appear to have set the pace for closer co-operation for mutual advantages to the two countries. For, from all indications, the deliberations appeared to have remained unmistakably marked with a common urge to make the best of unfolding opportunities from promotion of purpose-oriented bilateral economic relations ideally suited to both of them, and in a harmonies manner.  (Business Recorder,  Pakistan)

► Pakistan eager to import 250,000 tons of wheat

Pakistani Prime Minister Syed Yousaf Raza Gilani has ordered the department concern to import 250,000 tons of wheat immediately, local newspaper DAWN reported on Wednesday.  Chairing a meeting of the Economic Coordination Committee (ECC) of the cabinet here on Tuesday, Gilani said that price in the world market was showing a downward trend and 250,000 tons of wheat should be imported to meet the shortfall in the country. The ECC approved a proposal to import 1.5 million tons of wheat and kept in place a ban on its inter-provincial movement to discourage wheat smuggling and hoarding.  (English Peoples Daily,  China)

► Reap allowed to export two million tons of rice  

To reduce the balance of trade gap to some extent, government has allowed the Rice Exporters Association of Pakistan (Reap) to export two million tons rice, sources told Business Recorder here on Wednesday. The trade deficit in 2007-08 has increased to $16.8 billion while the fiscal deficit rose to $8.5 billion. Similarly, balance of payments gap is likely to be around 7.5 percent of GDP. However, current account deficit is expected to be around 5.0 percent of GDP as against 4.4 percent last year. "The decision to export rice has been taken keeping in view the widening trade deficit that has increased the need of foreign exchange," sources said.  (Business Recorder,  Pakistan)

► Kenya tea loses its flavour in Pakistan

A tactical manoeuvre by Pakistan into bilateral free trade arrangements with several Asian neighbours is threatening to throw its multi-billion shilling-a-year-tea trade with Kenya into a spin. For many years, Pakistan has been the single largest buyer of Kenyan tea, taking up more than 28 per cent of its total exports worth an estimated Sh12 billion a year. But in a surprise twist, the tea trade between the two nations has been on a slump over the last three years with analysts warning that the trend is likely to carry on.  (Bilaterals.Org)

► The outlook for Pakistan's trade deficit

The excess of imports over export, or trade deficit, has received considerable attention from policy makers. Increasing trade deficit is a natural consequence of fiscal imbalances. As recorded by SBP trade deficit recorded a sharp 32.3 percent expansion during July-November FY08 and reached US $7.2 billion. Trade deficit for the same year during July-February FYO8 recorded a sharp US $3.5 billion increase. Trade deficit has reached highest ever during the last five years as compared to 3 billion in the year 2003-04. Stunning increase in trade deficit during the five-year period will transfer domestic wealth abroad.  (Business Recorder,  Pakistan)

► Pakistan’s economy at critical juncture again: report

The Institute of Public Policy of the Beaconhouse National University Monday launched its First Annual Report titled ‘State of the economy: Challenges and opportunities.’  A team of eminent economists including former finance minister Sartaj Azia, Chairman of the Institute of Public Policy Shahid Javed Burki, Dr Hafiz A Pasha, Dr Parvez Hassan, Dr Akmal Hussain and Dr Aisha Ghaus-Pasha prepared the report. According to the report, Pakistan’s economy is once again at a critical juncture. After a period of strong economic expansion, relative macroeconomic stability, and increased foreign investor confidence, over the years 2003-2006, the country is now facing very serious economic strains and social challenge across a broad front.  (Daily Times,  Pakistan)

► Indian Tata resumes talks with Bangladeshi gov't on its $3 bln investment

The Bangladeshi government and Indian industrial giant Tata Sunday resumed talks here after a two-year break on its proposed 3 billion U.S. dollars investment in steel, fertilizer, power plant and coal mine projects. Officials said Tata Sons Executive Director Alan Rosling led the Tata team to the meeting with Bangladesh Board of Investment (BoI). BOI Executive Chairman Kamal Uddin and the Secretaries to the Energy, Power and Industry Ministries and senior officials were present from the Bangladesh side at the meeting that lasted for nearly four hours. "It's a positive development that we formally resumed discussion after two years. Lot of developments took place in both sides.  (English Peoples Daily,  China)

► Bangladesh to spend 12 pct of budget subsidizing fuel, food, fertilizer

The Bangladeshi caretaker government might require to spend around 12 percent of its upcoming fiscal budget on subsidies for fuel, fertilizer and food, putting a serious pressure on the country's macroeconomic stability. "We need to set aside at least 12 percent of our budgetary expenditure on subsidies in fertilizer, fuel and food in the next fiscal budget which starts from July 2008," a senior finance ministry official told Xinhua on Monday, who declined to be named.  (English Peoples Daily,  China)

► Food at the mercy of the market 

AS world food prices continue to soar and developing countries’ struggle to feed their hungry and angry populations, the European Union has become entangled in yet another acrimonious internal debate on the future of its heavily subsidised farm sector. Significantly, the discussions, likely to last for several months, could well have a negative impact on efforts to revitalise the efforts of the World Trade Organisation to clinch a much-sought-after deal on global trade liberalisation.The EU quarrel pits France and Germany, the EU’s most powerful nations, which want to safeguard — and reinforce — the bloc’s controversial Common Agricultural Policy (CAP).  (Dawn,  Pakistan)

► Worst of financial crisis is over: IMF

The worst of the financial sector crisis is over although the impact on the broader economy will likely drag on in coming months, IMF Managing Director Dominique Strauss-Kahn said on Thursday. “There are good reasons to believe that the largest part of disclosure in financial institutions has been done, especially in the United States ... so that the worst news is behind us,” he told a panel at the European Parliament. “The main problem is the linkages between the financial crisis and the real economy and this is not behind us.”  (Dawn,  Pakistan)

► Indo-Bangla summit for boosting trade

In order to boost trade between Bangladesh and India's north-eastern states, a business summit will be held here by the end of this year with business leaders from both the countries, official sources said here on Wednesday.  The decision was taken yesterday in a meeting chaired by the Minister for Development of North Eastern Region (DONER), Mani Shaankar Aiyer, which was attended by the Secretary General of Indian Chambers of Commerce (ICC) Rajib Thakur and representatives of different chambers of commerce of north eastern states including Tripura, Mizoram, Manipur, Assam and Bangladesh.  (The Economic Times,  India)

► South Asian Yearbook of Trade & Development

A collection of research papers on trade- related topics in the South Asian context. Centad / Centre for Trade and Development (Centad) , 2005 This publication is a comprehensive collection of twelve research papers on trade- related topics relevant to the development concerns of South Asian countries (India, Pakistan, Bangladesh, Nepal and Sri Lanka). Each paper deal with different aspects of the debate surrounding trade and development issues in South Asia.  (South Asia One World,  India)

► Book Review-The WTO: A Discordant Orchestra

The WTO: A Discordant Orchestra, K Bhaumik, Chief Economist, Reliance Industries Ltd,Publisher: Sage Publications New Delhi, 2006. Price-$29.95/ Rs 320  THE World Trade Organization (WTO) is unquestionably the most controversial international organisation today; even the World Bank and the International Monetary Fund do not enjoy the formidable reputation that the apex trading organisation has with the vast body of its critics.  (South Asia One World,  India)