G -20 has acknowledged India’s Leadership on global concerns and has supported views of India on wide array of issues which would come up on the upcoming summit" said Shri Piyush Goyal while briefing the media during the ongoing meeting of G 20 Sherpas. It may be noted that that the agenda of the ongoing Sherpas’ meeting is to finalize the Rome Declaration, which will be adopted by the Leaders at the Summit. It may be noted that PM Modi has been invited by the PM of Italy, H.E. Mr. Mario Draghi, and has arrived in Rome earlier this morning. This is PM's 8th G20 Summit. Shri Piyush Goyal has been in Rome for the past 3 days to oversee final preparations for PM’s participation in the G20 Summit In Italy, Shri Piyush Goyal participated in the 6th G20 Sherpas’ meeting from 27-29 Oct and held bilateral meetings with many of his G20 counterparts (UK, Germany, France, EU, Indonesia and Singapore) Shri Goyal said that G20 has emerged as the premier global forum for international cooperation. He said that G 20 represents 80% of the world's GDP, 75% of global trade, and 60% of the world's population It may be noted that Italy is holding the Presidency of the G20 this year under the theme- ‘People, Planet, Prosperity’ with a focus on: "Recovery from the pandemic & strengthening global health governance, Economic recovery & resilience, Climate change & energy transition and Sustainable development & food security" Speaking to the media Shri Goyal said that India fully supports the priority areas chosen by Italy. He said that the agenda of the just concluded Sherpas’ meeting was to finalize the Rome Declaration, which will be adopted by the Leaders at the G20 Summit The Minister said that the G20 has endorsed India’s position that extensive COVID-19 immunization is a global public good and he was happy to get support from G20 colleagues for his suggestion on mutual recognition of travel docs, including testing and vaccine certificates. On the issue of Sustainable Development and food security, he said that India has emphasized that policies must protect interests of small and marginal farmers, and conserve local food cultures which in turn will significantly contribute to food security ER Shri Goyal said that On Climate Change and Environment, India has strongly spoken on the need for critical enablers for galvanizing global Climate action which includes commensurate, long term, concessional climate finance, access to affordable and sustainable technology, and commitment to adopt sustainable lifestyles, responsible consumption and production patterns and importance of meeting SDG-12 targets, especially by the developed countries. On the issue of post- Covid economic recovery, he said, as co-chairs of the G20 Framework Working Group, India is ensuring that there is no premature withdrawal of support and the most vulnerable sections are provided necessary support. G20 has agreed to extend the Debt Service Suspension Initiative till the end of 2021 thereby giving some breathing space to those in need and those who are vulnerable around the world. Shri Goyal added that on the issue of Tax Reforms , India has pushed the G20 to address the mismatch between source of generation of profits and the jurisdiction where they are taxed. This will ensure that large MNCs pay a minimum effective corporate tax in the country of their operation. Elaborating more on the deliberations, Shri Goyal said that on Anti-Corruption matters , India as the G20 co chair of the Anti Corruption working group this year, has contributed towards the 5 think pieces related to Asset Recovery, Information sharing, Law Enforcement Cooperation, Technology & Denial of Safe Haven. On the issues concerning Women Empowerment, Education and Employment , the Minister for Commerce & Industry Textiles, Consumer Afairs, Food and Public Distribution, said that India supports G20’s emphasis on women’s empowerment. India has strongly advocated for the inclusion of language against gender-based violence and supported the new policy framework of G20 on ‘remote working arrangements’ Shri Goyal added that India highlighted the importance of recovery of the Tourism sector especially given the impact of COVID-19 on this sector. India welcomes G20’s focus on creative economy and preserving cultural heritage. The Minister said that India strongly pushed for the need for balancing the ‘data free flow with trust’ narrative with cross border data flows and accommodating development imperatives of the developing countries. He added that India has emphasized the importance of using ‘data for development’. The Minister emphasized that India’s voice in G20 represents the voice of all developing countries. He noted that It was following PM Modi’s suggestion to the Saudi Leadership in 2020 that, G20 convened an extraordinary Summit on the COVID-19 situation last year this year, Italy convened a special summit to leverage the G20’s influence in addressing the humanitarian crisis in Afghanistan. G20 also focused on the respect for human rights and fundamental freedoms, especially the rights of women, children, minorities and vulnerable people in Afghanistan, according to the principles enshrined in the UN Charter and other relevant international instruments. Shri Goyal said that India is going to take on the G20 Presidency during 1 Dec, 2022-30 Nov 2023 and enter the Troika in December this year and will take leadership on the issues and concerns of developing countries and emerging market economies in the G20 forum.
Source: PIB
After an eight year hiatus, India and the European Union (EU) are set to resume negotiations for a Bilateral Trade and Investment Agreement (BTIA) by December, according to a Government official. Another official termed the India-EU connectivity partnership, announced in May, as a “counterfoil” to other such initiatives in an indirect reference to China’s Belt and Road Initiative (BRI). “India-EU trade talks are set to start anytime by end of the year... We have prioritised and discussions will now go forward. It will be comprehensive talks,” the official said on the sidelines of a report launch on Thursday. At the India-EU summit in May this year, the two sides had agreed to resume talks for BTIA that were suspended in 2013 and also adopted a Connectivity Partnership document outlining plans to cooperate on digital and i0nfrastructure projects. “When we were negotiating this document, one thing which was there in the back of our minds... was that we want to make it a counterfoil or an alternative to some existing connectivity initiatives…. We were very conscious of that...,” said Sandeep Chakravorty, Joint Secretary (EW), Ministry of External Affairs on the Connectivity Partnership document. He was speaking at the launch of the report ‘India-EU Connectivity: Partnership for Development, Demand and Democracy’ organised by the think tank Research and Information System (RIS) for Developing Countries.“Emphasis on our values, inclusiveness and transparency, local environment, avoiding debt trap... These may not find mention in the partnership but they were part of our discussions and we have been careful to infuse elements of it…,” Mr. Chakravorty said in an indirect reference to China’s Belt and Road Initiative (BRI) which has come under criticism for creating debt traps on smaller countries. “The two important elements that reflect that spirit are private sector involvement and people to people connectivity,” he stated.
Negotiations for a similar pact with UK are expected to kick off from November 1, with both sides looking forward to firming up offers for an early harvest pact by the end of this month. India and UK have set a March 2022 target for an interim trade agreement to be concluded, setting the stage for a broader pact later. In this regard, the official cited earlier said India-UK talks will begin before the India-EU talks. On the connectivity roadmap, Mr. Chakravorty said the focus areas were connectivity within the country, building connectivity with Europe and in that process work other countries in South Asia and so on, also working with third countries, trade agreements, climate change and Info-Pacific. Stating that the priority is trade agreements, he said that they are also working on secure supply chains. “There is reciprocal interest,” he added. Giving an overview of the report, Prof. Sachin Chaturvedi, Director General, RIS said the report is based on the India-EU connectivity roadmap and the report covers three main areas — trade and investment. science and technology and Sustainable Development Goals (SDG). “It covers the broad contours of connectivity linkages and its various forms along with trade and investment linkages and also tries to explore a roadmap for effective implementation of Agenda 2030,” he said. Speaking at the event Ambassador, Delegation of the EU to India and Bhutan, Ugo Astuto, said connectivity covers not only physical infrastructure but also the regulatory framework which is very important. Stressing on the principles underpinning connectivity, he said it needs to be grounded on democracy and rule of law. He said that it is their view to leverage the European Investment Bank (EIB) for the connectivity which is already financing a series of projects and metro networks across the country including Bengaluru, Kanpur and Lucknow. As a part of the steps to implement the roadmap, there would be stakeholder workshops to identify specific projects and a forum in 2022 to finalise them, officials added.
Source: The Hindu
Sitharaman met Singapore Finance Minister Lawrence Wong and Canada's Deputy Prime Minister & Finance Minister Chrystia Freeland on the sidelines of the G-20 Joint Finance and Health Ministers' meeting. Finance Minister Nirmala Sitharman on Friday met her counterparts in Singapore and Canada and discussed various issues, including economy, health and opportunities for collaboration. Sitharaman met UK Chancellor of the Exchequer Rishi Sunak, Singapore Finance Minister Lawrence Wong and Canada's Deputy Prime Minister & Finance Minister Chrystia Freeland on the sidelines of the G-20 Joint Finance and Health Ministers' meeting. "Finance Minister Smt. @nsitharaman had an engaging discussion with @cafreeland Dy. Prime Minister & Finance Minister of Canada on the sidelines of #G20 Finance & Health Ministers Meeting in #Rome. The Ministers discussed various issues, including economic and health cooperation," a Finance Ministry tweet said. In another tweet, the ministry said: "Finance Minister @nsitharaman met @LawrenceWongST Finance Minister of Singapore on the sidelines of #G20 Finance & Health Ministers Meeting in #Rome ahead of #G20RomeSummit. Noting strong #IndiaSingapore relations, the ministers discussed opportunities for further collaboration" Sitharaman also met Brazil Minister of Economy Paulo Guedes. The ministers discussed and exchanged views on various issues, including economic recovery from pandemic, investments, climate action and engagement at BRICS 2021 and G20. "Finance Minister Smt. @nsitharaman had a valuable exchange with Mr @RishiSunak, Chancellor of the Exchequer, United Kingdom in #Rome on the sidelines of the #G20 Finance & Health Ministers Meeting. The Ministers discussed topics of mutual interest like green transition, #fintech, importance of keeping supply chains open and #EconomicOpportunities in India," the ministry said in another tweet. The minister also met GlobalFund Executive Director Peter Sands and appreciated Global Fund's efforts in fighting AIDS, Tuberculosis, and Malaria. "Discussions were held on global preparedness for dealing with future health emergencies and sustaining the campaigns against other diseases," the ministry said. Sitharaman also met Queen Maxima of the Netherlands, who appreciated India's efforts in prioritising Financial Inclusion for the underserved. A range of topics like India Stack, Jan Dhan Yojana and Account Aggregator Framework were discussed and both sides expressed intention to carry further the work of Financial Inclusion for development. “FM Smt. @nsitharaman expressed readiness for sharing India's experience and best practices for advancing universal and #InclusiveFinance,” a finance ministry tweet said. This is the first joint meeting of the G20 Finance and Health Ministers under the Italian G20 Presidency. The ministers endorsed the Joint G20 Finance and Health Ministers Communique towards strengthening global health financing governance ahead of the G20 Leaders' Summit on October 30-31.
Source: Economic Times
Finance secretary on Friday released revised guidelines, which outline innovative rules for this The finance ministry has initiated reforms in public procurement and project management to execute projects and provide payments to the micro, small and medium enterprises (MSMEs) on time. Finance secretary on Friday released revised guidelines, which outline innovative rules for this. The guidelines permit alternative methods for selection of contractors, which can improve speed and efficiency in execution of projects. In appropriate cases, quality parameters can be given weightage during evaluation of the proposal in a transparent and fair manner. This can be done through the quality-cumcost based selection (QCBS) as an alternative to the traditional L1 system. The old system gives weightage to the lowest commercial bid, the ministry said. Executing public projects on time, within the approved cost and with good quality has always been a challenge. “As the pace of economic development steps up, careful examination of procedures and rules is essential to ensure unwarranted roadblocks are removed. Also, new innovations must be utilised for increasing value-for-money of the taxpayer,” the ministry added. As part of the government’s digital thrust, electronic measurement books have been prescribed as a means of recording progress of works. As many as 563 central sector projects, comprising 65 per cent of the total 862 with definite timelines, were running behind schedule as on October 1 this year, according to official data. Some of the improvements in guidelines also include prescribing strict timelines for payments when due. Timely release of ad hoc payments (70 per cent or more of bills raised) is expected to improve liquidity with the contractors, especially in micro, small and medium enterprises, the ministry said. This system, along with other IT-based solutions proposed in the guidelines, will help in realising the dream of efficient Digital India, facilitate faster payments to contractors and reduce disputes, the ministry said. The number of complaints filed by small businesses over delayed payments is nearing the 100,000-mark, involving a sum of Rs 24,385 crore. Of this, only 12 per cent has been disposed of or mutually settled. An estimated 91,424 applications have been filed so far, according to the MSME Samadhaan, a delayed-payment monitoring portal set up four years ago as part of the government’s efforts to clear dues to MSMEs. The Central Vigilance Commission, the Comptroller & Auditor General and the NITI Aayog had carried out analysis of procedures and rules for public procurement and project management. They suggested changes in strategies to meet challenges of public procurement. Besides, Model Tender Documents for procurement of goods and nonconsultancy services were also released on Friday as part of the continuous process of review of existing procedures. MTDs specifically cater to the needs relating to e-procurement, thereby easing the process for adoption.
Source: Business Standard
Growth in credit to the services sector decelerated to 0.8 per cent in September 2021 from 9.2 per cent in September 2020 Feeding off the festive season and economic turnaround, the pace of credit to retail, farming, and industry increased in September 2021. The Reserve Bank of India (RBI) said in statement that retail -- covering housing and vehicles, credit cards, etc -- showed an accelerated growth rate of 12.1 per cent in September 2021 against 8.4 per cent in September 2020. Housing and vehicles, and loans against gold jewellery were the drivers in credit activity. Credit to agriculture and allied activities registered a growth rate of 9.9 per cent in September 2021 against 6.2 per cent in September 2020. Ahead of the busy season from October, credit to industry picked up, clocking 2.5 per cent growth in September 2021 from 0.4 per cent in September 2020. Medium industries registered 49 per cent growth in September 2021, up from 17.5 per cent a year ago. Credit to micro and small industries got traction with growth accelerating to 9.7 per cent in September 2021 from a contraction of 0.1 per cent a year ago. Credit to large industries continued to contract at 1.0 per cent in September 2021 as compared to a contraction of 0.2 per cent a year ago. The tepid demand and deleveraging of balance weighed on lending to large size firms, bankers said. Growth in credit to the services sector decelerated to 0.8 per cent in September 2021 from 9.2 per cent in September 2020, mainly due to reduction or a slowdown in loans to nonbanking financial companies, trade, and commercial real estate, the RBI added.
Source: Business Standard
To be lower than budgeted 6.8%, say economists even when total expenditure is expected to exceed BE. India’s fiscal deficit for April-September period compressed to 35 per cent of the Budget Estimates (BE) from 115 per cent in the same period last year. This is even lower than the pre-Covid level (FY20) of Rs 6.5 trillion. The government could limit the fiscal deficit to 4-year low to Rs 5.26 trillion mainly due to substantial 50 per cent revenue growth in September, benefitting from robust advance taxes and indirect taxes. The Controller General of Accounts data showed the government received Rs 10.8 trillion (27.3 per cent of the corresponding BE 2021-22 of total receipts) up to September. This comprises Rs 9.2 trillion of tax revenues, Rs 1.60 trillion of non-tax revenues, and Rs 18,118 crore of non-debt capital receipts. The expenditure incurred by the Centre was Rs 16.3 trillion (46.7 per cent of the corresponding BE 2021-22). According to economists, fiscal deficit in the current financial year is likely to be lower than budgeted, even when total expenditure is expected to exceed the BE. “We expect the fiscal deficit to print at Rs 13.8-14.8 trillion or 6.0-6.5 per cent of GDP in FY2022, as compared to the budgeted Rs 15.1 trillion or 6.8 per cent," said Aditi Nayar, Chief Economist, Icra. However, considering the net outgo related to the First Supplementary Demand for Grants of Rs 237 billion, the increase in fertiliser subsidies for the rabi season, and the likely enhancement that may be needed in the allocation for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the government's total expenditure also may exceed the FY22 BE, but by a relatively moderate Rs 600-800 billion, Nayar added. They say that the fiscal deficit was not only lower in proportion to entire year’s target but was also lower in value terms compared to previous fiscal --FY21 and FY20. “Notwithstanding a low base of FY21, the revenue performance has been fairly good in the first half of the FY22 due to pickup in economic activity. The net tax revenue in the April-September period was 100.80 per cent and 51.57 per cent higher than corresponding period in FY21 and FY20. Sharp increase in custom duties (129.64 per cent), followed by corporate tax (105.14 per cent) and 0.08 per cent year-on-year growth in state’s share in central taxes were mainly responsible for it, said Devendra Pant, India Ratings and Research. In addition to that, higher than budgeted surplus transfer by the Reserve Bank to the anticipated extra net tax revenues, government revenue receipts (net of devolution to states) may exceed the FY22 BE by a considerable Rs. 1.9 trillion, they say. Interestingly the government is still maintaining Rs 1.81 trillion surplus cash balance with RBI at end-September 2021 (end-March 2021: Rs 1.82 trillion). With such a huge cash surplus with the central bank, the government is on a strong wicket to either improve expenditure or reduce market borrowing, Pant highlighted. The revenue expenditure in the first half of the fiscal grew 6.33 per cent compared to FY21 and 7.35 per cent compared to FY20. “A better metric to gauge the quality of the spending is the non-interest revenue expenditure which can provide impetus to the growth in the economy. It is perplexing that the non-interest revenue has barely grown in comparison to FY20 (0.2 percent ) and expanded by 2.5 per cent in comparison with FY21. However, the capital expenditure seems to have gained some pace as it was 1.22x and 1.38x of 1HFY20 and 1HFY21, respectively, according to Pant. After the ramping-up of spending seen in the month of September, economist anticipate that expenditure will remain robust in the second half of this year, as all ministries have now been permitted to spend as per their own approved budget for this year.
Source: Business Standard
FCA declined by USD 853 million to USD 577.098 billion in the reporting week, the data showed The country's foreign exchange reserves declined by USD 908 million to USD 640.1 billion in the week ended October 22, RBI data showed. In the previous week ended October 15, the reserves had increased by USD 1.492 billion to USD 641.008 billion. The reserves had touched a lifetime high of USD 642.453 billion in the week ended September 3, 2021. In the reporting week ended October 22, the dip in the reserves was due to a fall in foreign currency assets (FCA), a major component of the overall reserves, and in the gold reserves, Reserve Bank of India's (RBI) weekly data released on Friday showed. FCA declined by USD 853 million to USD 577.098 billion in the reporting week, the data showed. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves were down by USD 138 million to USD 38.441 billion in the reporting week, the data showed. The special drawing rights (SDRs) with the International Monetary Fund (IMF) rose by USD 74 million to USD 19.321 billion. The country's reserve position with the IMF increased by USD 10 million to USD 5.240 billion in the reporting week, the data showed.
Source: Business Standard
The Goods and Services Tax (GST) Council has planned to increase the rates from 5 per cent to 12 per cent for garments across all price categories. This decision will significantly hamper the MSME sector as the increased GST rates will create bottlenecks for the industry which is still recovering from the aftermath of the second wave of covid-19. Commenting on this, Dr. Animesh Saxena- Manging Director Neetee Apparels- a leading garment exporter and President of Federation of Indian Micro and Small & Medium Enterprises (FISME) told KNN that this decision is definitely going to affect garment manufacturers as prices will go up, however it is important to understand the key reasons why the GST council has proposed these amends. “It is due to the input cost such as yarn which has a GST of 18 per cent with no recovery, and to address that the government is contemplating these changes,” explained Saxena. “Government should rather address the inverted duty structure and work on the refund mechanism,” suggested Saxena. This would help the common man who buys cheaper garments which is lower than INR 1000 and wouldn’t hurt the garments manufacturers and MSMEs. The current price is 12 per cent for garments above INR 1000 and 5 per cent for below INR 1000, and the government has proposed charging the same price on garments priced below INR 1000. For latter the GST rate will be doubled which will impact the garment manufacturers drastically. India’s domestic textiles and apparel industry has a share of 2 per cent of India’s GDP and 12 per cent of the country’s export earnings.
Source: Knn India
The US department of commerce has announced its final determinations that imports of polyester textured yarn from Indonesia, Malaysia, Thailand and Vietnam are being unfairly sold below their fair value in the US. The department has thus calculated antidumping duty (ADD) cash deposit rates that range from 2.58 per cent to over 56 per cent. As a result of the final determinations, U.S. Customs and Border Protection will continue to collect antidumping duties in the amount equal to the final dumping cash deposits rates for imports from each producer or country. Importers will be required to post duty deposits at these ADD rates on the date the final determinations are published in the Federal Register, in approximately one week. The next step in the trade cases will be the US International Trade Commission's (USITC) final determination of whether imports from the four countries are a cause of material injury or threaten to materially injure domestic polyester textured yarn producers. The USITC is currently scheduled to announce its final determination on November 30, 2021. The lead counsel for the domestic industry, Paul Rosenthal of Kelley, Drye & Warren, LLP, commented, "The commerce department's decisions are a big step in the right direction for the US companies and workers who are now closer to getting relief from the unfairly traded imports that have jeopardised the industry. The companies and workers are grateful for the hard work of the commerce department. We hope for a similarly favourable decision from the USITC so that more workers can return to their jobs in this important industry." In October 2020, two major US synthetic yarn producers – Unifi Manufacturing, Inc and Nan Ya Plastics Corporation, America – filed petitions with the commerce department and the USITC alleging that dumped imports of polyester textured yarn from Indonesia, Malaysia, Thailand and Vietnam were causing material injury to the domestic industry. The commerce department initiated the investigations in November 2020, and the USITC preliminarily determined in December 2020 that imports from the four countries are causing injury to the US domestic industry. Imports of polyester textured yarn from China and India are currently subject to significant double- and triple-digit ADD and countervailing duties as a result of prior investigations that concluded in January 2020.
Source: Fibre2Fashion
Sri Lanka’s total exports has seen sustained growth during the past nine months, suggesting that the near $ 16 billion target for 2021 is achievable. As per the latest data of the Sri Lanka Export Development Board (EDB) the country’s total exports were $ 11.1 billion in the first nine months, reflecting an achievement of 70.63% of the $ 15.72 billion target for the entirety of 2021. In mid-2021, the EDB upwardly revised the original export target of $15.68 billion to $ 15.72 billion, as post-COVID reopening of the country augured well for a better export performance in 2021. As per the new revision, EDB expects $ 12.14 billion from merchandise exports and $ 3.58 billion from services exports. Originally, it expected only $ 12 billion from merchandise exports, while services export target remained unchanged. During the first nine months of the year, merchandise exports were up by 19.3% to $ 8.88 billion from the corresponding period of last year. The estimated value of services exports for the period of January to September was $ 2.2 billion, increasing 23.52% over the corresponding period of 2020. The services exports estimated by EDB consist of ICT/BPM, Construction, Financial services and Transport and Logistics. January to September earnings from merchandise and services exports also reflect achievement of 73.17% and 62.01% respectively. However, September export earnings fell slightly by 0.4% from previous year to $ 996 million, ending the $1 billion per month achievement in succession between June and August. Merchandise exports recorded during the Q3 increased by 5% to $ 3,182.8 million compared to the same period a year earlier as well as in 2019 where it increased by 6.7%. “Earnings show a strong resilience with both merchandise and services exports performing well. We are confident that this trend will continue and I commend all our exporters for their commitment to support the national economy by bringing in the muchneeded foreign exchange,” EDB Chairman Suresh de Mel said. He also said that the export performance of September is remarkable, particularly to see exporters› resilience this well amidst challenges in pandemic. The Chairman assured to extend fullest support to the exporters, noting that he and the staff of EDB are committed to facilitate the export sector in these challenging times. Major exports in September: Export earnings from Apparel and Textile have increased by 5.83% year-on-year (y-o-y) to $ 457.05 million in September 2021 with strong performance in exports of Apparel (7.71%) and Woven Fabrics (62.73%). On a y-o-y basis, exports of Made-Up Textile Articles and Yarn and other Textile Articles declined by 40.26% and 34.14% respectively. Further, export earnings from Apparel and Textile decreased by 7.01% in September 2021 in comparison to August 2021. Earnings from Rubber and Rubber Finished products exports increased by 20.04 % y-oy to $ 96.09 million in September 2021, with strong performance in exports of industrial and surgical gloves (47.65%), Pneumatic and Retreated Rubber Tyres and Tubes (15.31%) and gaskets, washers, seals, etc. of hard rubber (28.72%) Except Coconut kernel products, export earnings from fibre products and shell products categorised under the Coconut based products increased by 3.98% and 26.73% respectively in September 2021 compared to September 2020. On a year-on- year, export earnings from Desiccated Coconut, Coconut Milk powder and Coconut cream categorised under the Coconut Kernel Products increased by 9.22%, 10.53% and 29.11% respectively in September 2021. However, earnings from export of Coconut Oil and Liquid Coconut Milk decreased by 31.47% and 13.04% respectively in September 2021. Being the largest contributor to Coconut based sector, Coco Peat, Fibre Pith and Moulded products which are categorised under the Coconut fibre products, increased by 26.73% to $ 14.08 million in September 2021 in comparison to S. Earnings from Activated Carbon, which is categorised under the Coconut shell products increased by 28.6% in September compared to the same period in 2020. Earnings from Seafood increased by 39.21% to $ 22.58 million in September from a year earlier. This increase was mainly due to the increase in earnings from export of Shrimps and Prawns, Fish Fresh or Chilled and other edible fish. Meanwhile, export earnings from Other Export Crops, Paper and Paper products, Nonmetallic Mineral Products, Base Metal Products increased by 58.13%, 20.05%, 8.98% and 30.05% respectively in September compared to the corresponding period of 2020. January-September major exports: For the period of January to September 2021, merchandise exports increased by 19.3 % to $ 8,881.93 million compared to the corresponding period of 2020, following increased exports of almost all the major product sectors; Apparel and Textiles, Tea, Rubber-based products, Coconut based products, Electronics and Electronic Components, Spices and Concentrates, Seafood and Ornamental fish. Earnings from export of Apparel and Textile increased by 18.5% to $ 3,879.43 million during the first nine months in 2021 compared to the same period of 2020, export of apparel and woven fabrics expanded by 21.4% and 104.62% while exports of Made-Up Textile Articles and Yarn and other Textile Articles were down by 51.31% and 3.74%, respectively. Export earnings from Tea increased by 7.29% to $ 986.56 million during the period of January to September 2021 compared with the corresponding period of 2020. Exports of all the subcategories of tea sector; Tea packets, Bulk Tea, Tea bags, Instant Tea and Green Tea increased by 10.4%, 3.44%, 33.55%, 28.95% and 33.96% respectively during the first nine months from a year ago. In parallel, export earnings from Rubber and Rubber finished products increased by 37.19 % to $ 805.06 million in Jan-September 2021 compared with the same period of 2020 attributed to higher exports of Industrial and Surgical Gloves of Rubber (61.59%) and Pneumatic and Retreated Rubber Tyres and Tubes (39.43%). For the first nine months of 2021, export earnings from Coconut and Coconut based products expanded by 24.14% to $ 608.76 m from the same period last year. Earnings from all the major categories of Coconut based products increased in the period of January-September 2021 compared with the corresponding period of 2020 due to the improved performance in export of Liquid Coconut Milk, Coconut cream, Coconut Milk Powder, Cocopeat, Mattress Fibre and Activated Carbon, Coconut Oil and Desiccated Coconut. Meanwhile, earnings from export of Electrical and Electronic Components (EEC) increased by 25.75% to $ 309.62 million from January to September from a year ago. Export of Insulated wires increased by 49.52% during the period of January to September 2021 to $ 52.51 million compared with the corresponding period of previous year. In addition, exports of Electrical Transformers, Switches, Boards and Panels and Other Electrical and Electronic Products increased by 47%, 33.24% and 19.72% respectively during the period of January to September 2021 from a year earlier. Export earnings from Spices and Essential Oils increased by 36.78% to $ 320.8 million in the nine-months from a year ago due to the better performance in all the sub categories; Cinnamon (10.31%), pepper (133.67%), cloves (155.79%), nutmeg and mace (19.20), essential oils (6.63%) and Oleoresins (69.21%), etc. Export performance in major markets: Strong performances were recorded in 10 major export markets, which accounted for 63% of total merchandise exports from January to September 2021. During the first nine months, exports to the US – Sri Lanka’s single largest export destination – increased by 14.97% to $ 2,175.46 million compared to the same period of 2020. The better performance led to an increase in exports of Apparel and Textile, Rubber based Products (Pneumatic and Retreated Rubber Tyres and Tubes, Industrial and Surgical Gloves of Rubber), Motor Vehicles Parts, Activated Carbon, Tea Packets and Cinnamon. Exports to the UK – the second largest trading partner – recorded an increase of 2.31% to $ 679.55 million during the first nine months compared to the same period in 2020. It is reflected in the increased exports recorded in Apparel and Textile, Rubber based Products sectors (Pneumatic and Retreated Rubber Tyres and Tubes, Industrial and Surgical Gloves of Rubber) and Other Electrical and Electronic Products. Exports to the Netherlands increased by over 50% during the period of January to September compared to the same period of 2020. Increased exports to Netherlands led by better performance recorded in Apparel and Textile (73.04%) and Liquid Coconut Milk (49.25%). Exports to FTA partners: During the period of January to September 2021, exports to Free Trade Agreement (FTA) partners accounted for 7.2% of total merchandise exports increased by 25.25% to $ 635.43 million. Exports to India and Pakistan increased by 24.97% and 27.66% y-o-y to $ 566.94 million and $ 68.49 million respectively during the first nine months. Increased exports to India is mainly supported by increased exports of Woven fabrics (194.92%) and Bicycles Not Motorised (276.31%) in the first nine months of 2021. Export performance in regions: On a region wise comparison exports to all other regions increased except CIS regions from January to September compared to same period a year ago. Exports to the European Union (EU) which comprise 24% of Sri Lanka’s exports from January to September increased by 27.78% y-o-y to $ 2,122.48 million. Breakdown of exports to the top five EU markets which accounted for 80% of Sri Lanka’s total exports to the EU were; Germany $ 544.94 million (up by 26.73%), Italy $ 418.69 million (up by 26.78%), Netherlands $ 306 million (up by 51.13%), Belgium $ 243.11 million (up by 14.21%) and France $ 173.95 million (up by 27.28%).
Source: Financial Times
Vietnam’s target of $600 billion in foreign trade is likely to be met by the end of the year as the national import-export turnover had exceeded $510 billion by October 15, according to the Agency of Foreign Trade under the ministry of industry and trade (MoIT). Its import-export turnover hit more than $26 billion in the first half of October, including $13.16 billion from exports. Four groups of commodities with an export turnover of $1 billion upwards were garments; phones and components; computers, electronic products and components; and machinery and equipment. Vietnam earned $254 billion from exports and spent $256.45 billion on imports, resulting in a trade deficit of $2.45 billion by October 15, according to media reports from the country. According to the MoIT, the monthly trade balance has gradually shifted to a trade deficit since the beginning of the second quarter, and this trend is showing signs of decreasing, with just $100 million worth of trade deficit recorded in August. The trade balance will heavily depend on the results of the ongoing fight against the COVID-19 pandemic, said MoIT, which would continue to implement a range of solutions to support businesses and promote exports. Quickly resuming production and boost exports are the most important solution to reduce the trade deficit and move towards a trade surplus in the near future, the ministry added.
Source: Fibre2fashion
Factory gate prices declined at a slower pace in September as increases have been recorded in the majority of industry groups, the Philippine Statistics Authority (PSA) said. Latest data from PSA showed that the Producer Price Index (PPI) for September declined 0.6 percent, slower than the one percent contraction level in August. It was also significantly relaxed than the decline of 5.2 percent in September 2020. The PSA attributed the decline to the contraction rates in the indexes of 10 industry groups led by the manufacture of computer, electronic and optical products which went down 17.4 percent. Other significant decrements were also noted in the manufacture of wood, bamboo, cane, rattan articles and related products. Meanwhile, 12 industry groups registered growth in September with coke and refined petroleum products posting the fastest growth at 17.9 percent. Others were basic metals, chemical and chemical products, rubber and plastic products, textiles, electrical equipment, and textiles among others. The PPI for manufacturing measures the changes in the producer price of key commodities produced by the sector. One of its uses is as a deflator to derive the Volume of Production Index and Volume of Net Sales Index.
Source: Phil Star
Issues yet to be agreed on in the trade deal include the rule of origin mainly for textile and clothing. • Meanwhile, Non-Tariff Barriers also remain a challenge to movement of goods in regional trade blocs. African states yet to find a common ground on key elements to be included in continental trade deal. Issues yet to be agreed on in the trade deal include the rule of origin mainly for textile and clothing, edible oil, and motor vehicle which experts note there are huge policy implications. Meanwhile, Non-Tariff Barriers also remain a challenge to movement of goods in regional trade blocs, and further across countries in the continent. The much anticipated African Continental Free Trade Area (AfCFTA) could take longer to fully materialize as member states are yet to agree on parts of the protocols for the deal. This comes even as Non-Tarrif Barriers (NTBs) remain a major challenge on the movement of goods in regional trade blocs, and further across countries in the continent, a forum on AfCFTA by the East African Business Council (EABC) in Nairobi heard on Thursday. “There is emergence of new non-tariff barriers from the ports, borders to the final destination. This needs to be eliminated to support better recovery (post-covid),” EABC executive director John Bosco Kalisa said. There are also delays in tariff liberalisation and agreeing on trade in services, experts said. Countries are also yet to agree on modules to address competition, Intellectual Property Rights, and eCommerce guidelines. However, the framework agreement on the establishment of AfCFTA, protocol on the trade of goods and services, protocol on rules and procedures on the settlement of disputes have been agreed on and adopted. Elements such as customs procedures, trade facilitation, and transit trade have also been agreed upon. As of July, at least 40 countries of the members of the African Union targeted for the agreement had ratified the deal, including Kenya. Speaking during the forum, Kenya Association of Manufacturers head of policy, research, and advocacy Job Wanjohi said there is need for speedy ratification of the agreement by members, to pave way for its full implementation. This, even as he called for competitiveness in the continent. Meanwhile, Kenya Private Sector Alliance deputy CEO Victor Ogalo has cautioned that failure by African states to increase manufacturing and production capacity will see imports continue to dominate the markets, despite heavy investments in ports, roads and rail infrastructure. “We need to spruce up our production capacity otherwise we will be allowing more imports as opposed to increasing intra-Africa trade,” Ogalo said. Intra-Africa trade is currently at a low of 15 per cent compared to common markets such as the EU which is at 67 per cent. On Thursday, the firms launched the MANSA platform, a repository that provides a single source of primary data required for the conduct of customer due diligence on African entities. These include financial institutions, corporates and SMEs. The platform also provides complimentary collection of information on investment in Africa, country profile, and trade products and services of African countries, enabling insights into Africa and deepening positive perceptions of the continent, thereby altering the risk perceptions of Africa and significantly addressing de-risking of the continent. The African Export-Import Bank is also keen to provide a payment platform that will allow traders to use their local currency to pay for goods and services, without necessarily going for a common mode of payment such the US Dollar. Kenya Bankers Association CEO Habil Olaka said the Kenyan lenders are ready to support the Pan-African agenda on trade through financing, noting Kenyan banks have expanded into the region with linkages in key markets on the continent.
Source: The Star
