|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1073.4 |
USD/Ton |
1.16% |
4/28/2016 |
|
VSF |
2055.9 |
USD/Ton |
-0.37% |
4/28/2016 |
|
ASF |
1940.4 |
USD/Ton |
0% |
4/28/2016 |
|
Polyester POY |
1059.5 |
USD/Ton |
0.22% |
4/28/2016 |
|
Nylon FDY |
2340.8 |
USD/Ton |
0% |
4/28/2016 |
|
40D Spandex |
4466 |
USD/Ton |
0% |
4/28/2016 |
|
Nylon DTY |
5742.7 |
USD/Ton |
0% |
4/28/2016 |
|
Viscose Long Filament |
1293.6 |
USD/Ton |
0.60% |
4/28/2016 |
|
Polyester DTY |
2163.7 |
USD/Ton |
0% |
4/28/2016 |
|
Nylon POY |
2117.5 |
USD/Ton |
0% |
4/28/2016 |
|
Acrylic Top 3D |
1170.4 |
USD/Ton |
0.33% |
4/28/2016 |
|
Polyester FDY |
2541 |
USD/Ton |
0% |
4/28/2016 |
|
30S Spun Rayon Yarn |
2833.6 |
USD/Ton |
-0.54% |
4/28/2016 |
|
32S Polyester Yarn |
1724.8 |
USD/Ton |
0.27% |
4/28/2016 |
|
45S T/C Yarn |
2464 |
USD/Ton |
0% |
4/28/2016 |
|
45S Polyester Yarn |
2987.6 |
USD/Ton |
0% |
4/28/2016 |
|
T/C Yarn 65/35 32S |
2263.8 |
USD/Ton |
0% |
4/28/2016 |
|
40S Rayon Yarn |
1863.4 |
USD/Ton |
0.83% |
4/28/2016 |
|
T/R Yarn 65/35 32S |
2125.2 |
USD/Ton |
0% |
4/28/2016 |
|
10S Denim Fabric |
1.3675 |
USD/Meter |
-0.11% |
4/28/2016 |
|
32S Twill Fabric |
0.8208 |
USD/Meter |
0% |
4/28/2016 |
|
40S Combed Poplin |
1.1704 |
USD/Meter |
0% |
4/28/2016 |
|
30S Rayon Fabric |
0.6915 |
USD/Meter |
0% |
4/28/2016 |
|
45S T/C Fabric |
0.6853 |
USD/Meter |
0% |
4/28/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15400USD dtd. 28/04/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The booming viscose staple fibre (VSF)-based textile industry, which is facing the heat of increased dumping from China and Indonesia, has warned that any tampering with the existing anti-dumping duty structure will affect its growth. "The viscose-based textile industry has shown a remarkable growth in the last five years, reflecting the spirit of Make in India initiative. "Before anti-dumping duty was imposed, Chinese and Indonesians had nearly killed our market. Now again both the countries are trying to flood the market with heavy discounts," Ramesh Natarajan, Director of Indian Man-Made Yarn Manufacturers Association, told PTI. The existing anti-dumping duties, imposed in 2010, are up for review shortly and a section of the textile industry is calling for ending duty protection, citing rising input cost. Players like the Indian Spinners Association (ISA) has said continuation of the duty on the fibre will have a "deleterious effect" on the textile sector, which is already reeling under high cost of production and sagging export demand. Before the dumping duty was slapped, Chinese and Indonesians were selling their products at Rs 185-190 a kg while the domestic prices were much higher, Natarajan said, but added that the quality of domestic products is unmatched. He warned that if the anti-dumping duties are rolled back, it will kill the domestic industry. Already, the industry has lost over two lakh direct jobs, with one lakh in the Coimbatore-Erode belt of Tamil Nadu alone. If the government falls prey to international and domestic pressure, it will kill more jobs, he said. Natarajan said the biggest VSF-based textile hub is the Coimbatore-Erode belt which consumes over 20,000 tonnes of the textile a month, while the intake in the rest of the country is only 5,000 tonnes. "The government must ensure that there are adequate safeguards in place for all products of the VSF value chain so that this industry attracts more investments and drives local manufacturing, which is the key focus of the present regime," P S Sundaram, managing director of Erode-based Victory Spinning, told PTI. According to industry statistics, the domestic VSF industry grew at a CAGR of 11 percent in the past five years, while exports clipped at 14 percent CAGR. Exports jumped from 249 tonnes per day (tpd) in 2011-12 to 424 tpd in 2015-16, and domestic sales grew from 590 tpd to 853 tpd. This growth has been driven by the largest domestic VSF producer Grasim Industries, initiatives like creating robust consumer demand and collaboration with SMEs, among others. Development of the VSF supply chain has also attracted major global brands. Top international brands like American Eagle, Kohls, Bershka and GAP, among others, have increased their intake from India by around 20 percent.
SOURCE: The Money Control
The government does not set a target for the textile and garment industry as their production is predominantly in the private sector, Lok Sabha was told on Thursday. “Production of textiles and garments is predominantly in the private sector. Therefore, the government does not prescribe specific production targets to the textile and garmenting industry,” textiles minister Santosh Kumar Gangwar said during the Question Hour. He said the data available on production and exports show an increasing trend during the last three years and the current year. Gangwar said the government has not received any report of textile workers facing problems due to recession in the sector. Increasing the production of textiles garments through policy initiatives was among the foremost objectives of the government, he said. In order to strengthen the textile industry in the country and protect the interests of textile workers, government has launched various policy initiatives and schemes for technology upgradation, funds and development of powerloom sector. “These are intended to strengthen the Indian textile sector and generate employment opportunities for textile workers,” the minister said.
SOURCE: The Hindustan Times
Minister of State(Independent Charge) in the Ministry of Textiles Santosh Kumar Gangawar in a reply during question hour in the Lok Sabha informed today that government has launched Technology Upgradation Fund Scheme(TUFS), Schemes for the development of the Powerloom sector, Schemes for Technical textiles, Scheme for Integrated Textile Parks(SITP) and Integrated Skill Development Scheme. He said that the production of textiles and garments was predominantly in the private sector. Therefore, the government does not prescribe targets for the textile and garment Industry. The foremost objectives of the government were increasing production of textiles garments through various policy interventions. These schemes were intended to strengthen the country’s textile sector and generate employment opportunities for textile workers.
SOURCE: Yarns&Fibers
India is losing out to countries such as Cambodia, Indonesia and Vietnam in the race for a greater share in the global apparel market being relinquished by China. It needs to reduce duties on import of manmade fibre and increase productivity by helping firms grow in size with less complex labour policies, a World Bank report has said. Free trade pacts like the Trans Pacific Partnership (TPP) between the US and 11 other Pacific rim countries would benefit competing countries such as Vietnam, said Onno Ruhl, World Bank Country Director, India, answering a question at a press conference at the launch of the report, entitled ‘Stitches to riches? — apparel employment, trade and economic development in South Asia’ on Thursday. The Indian garments industry, too, could gain if the country became part of the TPP, but it is for India to decide, keeping other things in mind, Ruhl added. “A reduction in tariff and non-tariff barriers (among TPP members) could lead to trade diversion for South Asia, including in the textiles and apparel sector,” the report said. As wages increase in China, the largest apparel manufacturer for the last 10 years is expected to slowly relinquish its lead position and give an opportunity to India and other South Asian countries to grab some of its share. “Even a 10 per cent increase in Chinese apparel prices could create at least 1.2 million new jobs in the Indian apparel industry,” the report says. A 1 per cent increase in Chinese apparel prices could increase EU demand for Indian apparel exports by 1.9 per cent and US demand for Indian apparel by 1.46 per cent.
Job creation
“Although the report finds that India has maintained its share in the world market, it needs to do better and grow fast to create more employment,” Ruhl said. For that to happen, India needs to remove barriers in the import of manmade fibre to encourage production of garments made of fabric other than cotton. “In India the focus is on cotton, but the world demands garments made of manmade fibre as well. India has to tap into that demand by lowering import duties, pegged at 10 per cent,” said Gladys Lopez-Acevedo, co-author of the report.
Non-cost factors
South-East Asian countries are also outperforming India on non-cost factors that buyers care about, such as quality, lead time and reliability and social compliance sustainability, the report said. India needs to attract more FDI into the sector by helping firms grow in size (by tackling complex policies) and also by increasing integration in the fibre-textile-apparel supply chain. “To increase productivity, the government could help firms enter the formal sector and take advantage of economies of scale with less complex labour policies,” the report said.
SOURCE: The Hindu Business Line
India has invited Egyptian businesses to invest in the country saying the two sides enjoying very strong political and cultural ties should now work out ways to enhance two-way investments and trade. "India and Egypt have been very strong and old partners in politics and culture. Today it is the world of economics and so I believe that it is very necessary for us to work more closely in the economic field to increase investments in both ways," said India's Ambassador to Egypt Sanjay Bhattacharyya on the sidelines of an economic seminar entitled "Make in India" organised here yesterday as part of the two-week cultural festival "India by the Nile". The seminar construes the flagship programme 'Make in India' which aims to transform India into a global design and manufacturing hub of innovative, low cost, eco friendly and zero defect products and to develop synergies with Egyptian industry. "Today we receive the largest amount of investments anywhere in the world and that's because of the systems that had been created," he added. India launched the Make in India programme in 2014, which quickly became a rallying cry for India's innumerable stakeholders and partners. It was a powerful, galvanising call to action the entrepreneurs and business leaders, and an invitation to potential partners and investors around the world.
Most importantly, it represents a complete change of the Indian Government's mindset - a shift from issuing authority to business partner, in keeping with the tenet of 'Red Tapism to Red Carpet'. "For business the most important thing is that people must make profit. But I define profit in a broader sets. So, profit is making money and making relationships. I believe that India and Egypt as two very ancient civilizations are ideally placed to make this broader concept of profit realizable because when you invest money you must get your return of course but you have much more to do when it is between two great countries like India and Egypt," Bhattacharyya said. "Our investments in Egypt have been from that perspective, which is why our investments are all long term investments," Bhattacharyya added. "We are trying to bring about structure reforms in the manner in which licensing is done and in many cases there is no need for license. We have a very large pool of skilled people, engineers and doctors, people skilled in management who can operates the investments that are coming," he added. India-Egypt trade and investment made a significant headway in the last few years, despite the weakening of the global economy and declining trade. The bilateral trade grew 60 per cent over the last five years touching almost USD 5 billion. India is Egypt's third largest destination of exports. Over 50 Indian companies are investing in Egypt with USD 3 billion and providing employment to 35,000 Egyptians.
SOURCE: The Economic Times
Adjusting exchange rate can fix price competitiveness woes, while structural reforms can usher in long-term benefits. The steady decline in India’s exports over the past one-plus year has been at the centre of a raging debate in India. Granted, global factors such as tepid global demand, erosion of commodity prices and high volatility in currency markets have contributed to this conundrum. However, trade performance of any country is determined by internal as well as external factors. External factors consist of global economic conditions, market access, possibilities of export diversification, and effective trade agreements. Internal factors include macroeconomic management (price and income elasticity of exports, exchange rates, trade policy, interest rates and inflation), goods and services market reforms, and sound institutional and regulatory policies. A combination of these factors determines the productivity and overall competitiveness of exports. Therefore, the current decline in India’s exports must be analysed by taking into account the state of play of these external and internal factors.
Growth and currency rates
Many policy thinkers argue that an overvalued rupee is partially responsible for the recent decline in India’s exports. To understand the relationship between exports and exchange rate, we need to look at the growth of India’s exports and real effective exchange rate (REER) between 2002 and 2015. Till 2013, the relationship between export growth and REER was mixed ( See chart ). After this period, it exhibits a clear trend that an overvalued rupee has affected the growth of India’s exports. This corroborates a well-tested hypothesis that “a stronger currency is not good for export outlook”. Many countries in East Asia including China pursued the strategy of relatively undervalued currency to make their exports competitive in global market under their export led industrialisation. However, one has to keep in mind that a relatively undervalued currency does not generate additional demand nor is it a permanent solution to all the ills prevailing in the domestic economy. But in a highly complex and competitive world, where countries are competing for their export interest, the value of currency must be fairly placed vis-à-vis competing currencies to make one’s export competitive.
Overdependence issues
Another factor behind the steep decline in India’s exports could be over-dependence on a few markets such as the US and European Union countries which together account for 40 per cent share in India’s total exports. It is particularly important in view of falling demand, stagnant growth and resultant aggregate demand in these countries. The Regional Hirshman Index (RHI), a standard measure of export market diversification, demonstrates that while India’s RHI with the EU and the US declined from 0.067 and 0.061 in 2005 to 0.033 and 0.036 in 2015, there is not much corresponding increase in the RHI with Asia and Africa. This increased from 0.229 and 0.004 in 2005 to 0.246 and 0.011 in 2015. The overall RHI of India’s exports has witnessed a marginal decrease: from 0.5742 in 2005 to 0.5713 in 2015.
While improved RHI with Asia is because of India’s extensive engagements with Asian countries through regional and bilateral trade agreements, it has made limited progress in terms of diversifying its exports to non-traditional markets such as in South America, Africa and the Eurasian countries. The diversification of export markets is important in the context of future sources of global aggregate demand and the changing dynamics of the global trading through mega regional trade agreements.
Price and income elasticity
It is widely believed that competitiveness of exports hinges on the price and income elasticity of exports which largely depend on the nature of exports of the country. In this regard, a study carried out by Mehdi Raissi and Volodymyr Tulin — ‘Price and Income Elasticity of Indian Exports: The Role of Supply-Side Bottlenecks, 2015’ — provides a fair insight about price and income elasticity of India’s exports. It says India’s exports are sensitive to relative price competitiveness and global demand. It corroborates the popular perception that the current decline in India’s exports is caused by a fall in global demand and loss in price competitiveness. Therefore, in view of such external shocks, a slight adjustment in exchange rate could serve as an effective instrument to address challenges emanating from relative price competitiveness and can help India’s exports.
The way forward
Exchange rate management alone will not relieve India’s export conundrum. The country should make continuous efforts in alleviating supply-side bottlenecks to boost sectoral productivity and export competitiveness. Therefore, India should adopt a calibrated approach towards structural reforms to address cyclical as well as structural factors at the external and internal fronts, which are adversely affecting our export performance. On the external front, India should engage with those trade agreements which would help in securing better market access, can diversify our exports and provide greater space for our producers to participate in global production networks.
On the internal front, India should emphasise on reforming domestic policies and institutions dealing with macroeconomic management (exchange rate, inflation and interest rates), standards, intellectual property rights, trade facilitation, and organisations vis-à-vis operational aspects of trade and investment rules and regulations. In all this, the Centre should use its national organisations such as the Council for Trade and Development, the Board of Trade and the export promotion councils more effectively to work out national strategies to take the agenda forward.
SOURCE: The Hindu Business Line
Questions over the new methodology for calculation of national accounts data remain. The Parliamentary Standing Committee on Finance has now asked the Ministry of Statistics and Programme Implementation to constitute a high level committee of economists to review the methodology for computing the new series of data on gross domestic product. “One acceptable methodology may be adopted, keeping in context practices followed in the world economy. This will put an end to the debate on the methodology,” it said in its report tabled in Parliament on Thursday.
SOURCE: The Hindu Business Line
India’s economy is likely to maintain its growth at 7.6 per cent in 2016 and accelerate to 7.8 per cent in 2017 led by high urban spending, steady employment and low inflation, according to a United Nations report on the Asia-Pacific. “The near-term growth outlook is positive…Urban household spending is expected to drive economic growth amid steady employment growth and relatively low inflation,” said the United Nations Economic and Social Survey for Asia and the Pacific-2016, which was released on Thursday. This is, however, a tad less optimistic than government projections. The Economic Survey has pegged GDP growth at between 7 per cent and 7.5 per cent this fiscal year, while Finance Minister Arun Jaitley recently told investors in New York that the economy could expand at 8 per cent to 8.5 per cent in 2016-17 on the back of a good monsoon. The Indian economy is estimated to have grown at 7.3 per cent in 2014 and 7.6 per cent in 2015, said the report, adding that it was the fastest growing economy in the world.
Cautionary note
While highlighting that the improvement in business environment and the lower borrowing costs would help fixed investment conditions, the report, however, warned that the high level of stressed assets and “fragile business confidence” could constrain investment growth. While lauding the move to rationalise fuel subsidies, the report, however, noted that further structural reforms such as the passage of the goods and services tax (GST) and unlocking stalled infrastructure projects would be key to boosting domestic demand. “Some progress has been made in reforming fiscal policy, such as the rationalisation of fuel price subsidies, but the implementation of the GST remains an important reform that is being held up due to political deadlock,” it said.
Ind-Ra projections
Meanwhile, concerned over poor industrial recovery, India Ratings on Thursday also scaled down its GDP growth projection to 7.7 per cent for 2016-17 from its earlier estimate of 7.9 per cent. “Despite favourable prospects for agriculture due to an above normal monsoon, industrial recovery is proving to be a drag on the 2016-17 growth prospects,” said Sunil Kumar Sinha, Principal Economist, India Ratings.
SOURCE: The Hindu Business Line
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 43.03 per barrel (bbl) on 27.04.2016. This was higher than the price of US$ 41.68 per bbl on previous publishing day of 26.04.2016.
In rupee terms, the price of Indian Basket increased to Rs. 2863.73 per bbl on 27.04.2016 as compared to Rs. 2781.18 per bbl on 26.04.2016. Rupee closed stronger at Rs 66.55 per US$ on 27.04.2016 as against Rs 66.73 per US$ on 26.04.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on April 27, 2016 (Previous trading day i.e. 26.04.2016) |
Pricing Fortnight for 16.04.2016 (30 Mar to 12 Apr, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
43.03 (41.68) |
36.98 |
|
(Rs/bbl |
2863.73 (2781.18) |
2455.84 |
|
|
Exchange Rate |
(Rs/$) |
66.55 (66.73) |
66.41 |
SOURCE: PIB
The nation’s textile industry should develop into a complete supply chain and compete through quality instead of quantity, Taiwan Man-Made Fiber Industries Association (台灣人纖公會, TMMFA) chairman Hou Po-ming said on Wednesday. “It is hard to compete with China through quantity,” Hou said, citing latest industry data showing that China controls 73 percent of the global chemical fiber market share while Taiwan only holds 2.9 percent. “Opportunities lie in high-end functional fabrics and other smart applications,” Hou said, adding that the industry could make use of global trends in sports and leisure activities. Taiwan’s functional fabrics have a global market share of 70 percent, with more than 50 percent of the world’s fireproof fabrics produced in Taiwan and eight out of 10 yoga apparel lines sold in the US manufactured by Taiwanese companies. The association said that proves that the nation’s textile industry has the upper hand in research and design, as well as the capability to supply high-end products to downstream industries, global brands and channel distributors.
Last year, the Taiwanese textile sector generated NT$434.7 billion (US$13.5 billion) in production value, with NT$118.6 billion coming from synthetic fiber production, association data showed. “The industry as a whole is responsible for the livelihood of 150,000 Taiwanese families,” Hou said. Hou urged the incoming government, which is to take office on May 20, to work on joining regional economic agreements such as the Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership soon to eliminate tariffs. “Otherwise, Taiwanese firms’ profits will be eroded by high tariffs in the region,” he said. Hou, who is also vice chairman of Tainan Spinning Co (台南紡織), said that the 61-year-old company has upgraded its plants to utilize automated production processes in a bid to increase its output value. Tainan Spinning is the nation’s largest polyester staple fiber and yarn manufacturer and also the largest yarn supplier in Vietnam. The company, which mainly processes orders for fabrics and garment suppliers, operates yarn factories in Taiwan and Vietnam. Hou said that another plant in Vietnam is to become operational by the end of this year, which would enable the company to produce up to 600,000 spindles of yarn per year in Vietnam. In the first quarter, Tainan Spinning’s revenue dropped 20.42 percent to NT$4.2 billion from a year earlier. Hou said the company’s outlook would improve with each quarter after hitting trough in the first quarter and on the back recovery signs in orders this month.
SOURCE: The Taipei Times
THE Philippines and the European Free Trade Area (Efta) bloc signed the first bilateral free-trade agreement (FTA) under the Aquino administration in Bern, Switzerland, on Thursday. Trade Undersecretary for Industry Development and Trade Policy Ceferino S. Rodolfo Jr. said Trade Secretary Adrian S. Cristobal Jr. signed the pact on behalf of the Philippine government. The Efta bloc is composed of the four wealthy nations of Iceland, Liechtenstein, Norway and Switzerland. The FTA is expected to give Philippine exporters the assurance that many of the products they will export to Efta countries will always enjoy preferential tariff rates. In a hearing on the Philippines-Efta FTA last year, Tariff Commission Chairman Edgardo B. Abon said most of the Philippine exports shipped to the four-nation Efta bloc are subject to zero tariff. “The significance of the FTA is that we’re binding them at that level. If we are allowed to enjoy zero tariff and they committed that in the FTA, this cannot be changed anymore, regardless of industrial or national policies,” Abon said. The Department of Trade and Industry said the Philippine farm sector is expected to benefit from the trade pact. “Efta countries are willing to eliminate all duties on their industrial products and they are willing to cut tariffs at a level that is lower than what they have given to their other trade partners,” Rodolfo said in an earlier interview. The FTA is also seen to spur investments in the services sector and nonservices sector.
Among the products that are in-demand in Efta countries include electronic integrated circuits, frozen fish fillet, artificial teeth and preserved pineapples. Crude palm oil and motorcycles are potential Philippine exports to the Efta bloc. The Efta bloc’s top exports to the Philippines are aeroplane and helicopter parts, wrist-watches, anti-HIV medicine and medicaments. Philippine imports from Efta countries in 2013 reached $400 million, while exports amounted to $300 million. These figures accounted for less than 1 percent of Philippine import payments and export revenues for 2013. The FTA with Efta is the second bilateral free-trade pact forged by the Philippines in 10 years. The Philippines-Japan Economic Partnership Agreement was signed in September 2006 and came into force in 2008. The Philippines-Efta FTA will have to be ratified by the Senate. Rodolfo said the Senate could approve the pact in a year or two.
SOURCE: The Business mirror
Turkish Prime Minister Ahmet Davutoglu said Thursday his country attaches great importance to the negotiations on establishing a joint free trade area (FTA) with the Gulf Cooperation Council (GCC) member countries. Turkey looks at the State of Qatar as one of the main pillars in the GCC economies that have a lot of promising investment opportunities, he said. Davutoglu made the comments while attending the TurkishQatari Forum together with Qatari Prime Minister and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa Al Thani. The TurkishQatari trade volume hit USD 1.3 billion last year, yet it is still below Turkey's expectations, he said,
Noting that Turkey seeks to double the figure twice in the coming years. He stressed that the State of Qatar has a capital increases day to day and that Turkish companies operating in the field of construction, consulting and security amounted to USD 15.300 billion, saying the hosting of the 2022 FIFA World and the Qatar National Vision 2030 would provide huge opportunities. The Turkish premier described his talks with Qatari senior officials as fruitful stemming from honest brotherhood, noting that businessmen in both countries would not face any problems regarding the bureaucratic procedures, according to Qatar News Agency (QNA). Davutoglu stressed the need to coordinate efforts and establish a partnership in the medical field in light of the common possibilities that will undoubtedly propel the medical tourism sector, saying his discussions included ways to accept the Turkish doctors wishing to work in Qatar. "We want more Qatari investment in industry in the coming period," he added.
Regarding the tourism sector, Davutoglu said that 36,000 Qataris visited Turkey last year, calling for pushing forward cooperation in the field of tourism investment and other cultural fields. For his part, Sheikh Faisal bin Qassim Al Thani, Chairman of the Qatari Businessmen Association, said that the exchange of visits by Qatari Amir Sheikh Tamim bin Hamad Al Thani and President Recep Tayyip Erdogan had resulted in the formation of the joint Supreme Council for Strategic Cooperation. The Council gave momentum to the QatariTurkish partnership and became a cornerstone of the economic cooperation between the two countries, he said. He welcomed Davutoglu's visit, saying it comes within the framework of the joint efforts to take the partnership to new height. The many agreements that had been signed during the last period would improve the cooperation between the two countries to a higher level, especially the economic and financial and investment domains, in addition to energy, science and technology fields, he went on.
Sheikh Faisal stated that the two countries share the desire to achieve economic integration, noting that Turkish companies were awarded contracts of 119 projects worth more than USD 15 billion in Qatar. "We are happy to deal with Turkish companies for their diverse expertise and high technology.”On the other hand, Qatari businessmen are active in the real estate sector in Turkey, in addition to services, and banks, where many of them prefer to invest in real estate, land and hotels," he added. (Pickup previous) nnd.gb
SOURCE: The Kuna
The Free Trade Agreement (FTA) between Vietnam and the Eurasian Economic Union today is moving towards its entry into force after being ratified by the Council of the Russian Federation, refer media here today. The State Duma (Lower House) ratified it previously and is now awaiting signature by President Vladimir Putin. The other members of that Union are Belarus, Armenia, Kyrgyzstan and Kazakhstan, which ratified it in February. With this pact, signed in May last year, each party shall reduce and / or eliminate tariffs on products from other markets, while paving the way for greater links between bloc members and the Asia Pacific region, as Russian authorities explained. Trade between Vietnam and these economies is estimated at four billion dollars and with the implementation of the FTA it should reach 10 billion by 2020, according to official projections.
SOURCE: The Prensa Latina
EU Trade Commissioner Cecilia Malmström outlined on Tuesday a series of topics which, she suggested, could be constructive areas for future discussion as WTO members brainstorm how to move forward in a “post-Nairobi” negotiating landscape. However, she warned against getting “bogged down” in debates over whether the Doha Round – the series of negotiations which WTO members have been undertaking since 2001 – is alive or dead. “What matters is that many of the issues within the Doha Development Agenda are as relevant today as they were in 2001, if not more so,” she said, particularly given that some topics are best addressed at the WTO level rather than in bilateral or regional deals elsewhere.
Indeed, whether or not to reaffirm the Doha Round negotiating mandate was one of the top issues during the WTO’s last ministerial conference, held in the Kenyan capital of Nairobi last December. Ultimately, after days of round-the-clock negotiations, ministers ultimately agreed to disagree on the subject. (See Bridges Daily Update #5, 19 December 2015). The ministerial declaration adopted in December instead noted the opposing viewpoints on the Doha Development Agenda and subsequent ministerial conference declarations and decisions. While some reaffirmed “their full commitment to conclude the [Doha Round] on that basis,” others argued for “new approaches” to reach meaningful, multilateral results. The result has left trade watchers and negotiators alike mulling over what this will mean for the future of the trade body’s negotiating arm, both in the year ahead and further down the road.
Multilaterals first – otherwise, plurilaterals
Speaking at a meeting with civil society on Tuesday, the EU trade chief stressed that the 28-nation bloc’s preference remains with concluding multilateral deals at the global trade body, particularly given the WTO’s large membership. Noting the various changes seen to the international trading landscape over the past 15 years, Malmström cautioned that the organisation’s rules have “major gaps,” and also called for realism moving forward, even with the preference on multilateral deals. “If it’s a choice between making progress with a smaller number of partners or no progress at all, then we will choose to move forward – plurilaterally,” she said, adding that the priority would then be plurilateral deals on a most-favoured nation basis. In other words, these would be deals whose commitments are adopted by their participants, but whose benefits would extend to the entire WTO membership. These would also be “open to others to join in the future and can use WTO dispute settlement,” she said. Closed deals, by comparison, would be a last resort should open approaches fail.
Priority on rulemaking
Notably, the EU trade chief indicated that the 28-nation bloc’s priority in its WTO strategy would be on setting new rules, and less on market access, though the latter remains important. “We should focus our immediate attention on where the WTO can provide the biggest value. And that is rulemaking, especially in the new areas where no global rules exist yet,” she said. Even so, Geneva sources note that a recent informal meeting of the WTO’s negotiating group on market access saw some members back the idea of plurilaterals in the area of industrial tariffs, while others were pushing either to continue market access talks in the WTO and still a third group is either “indifferent towards further work on NAMA issues at this stage” or otherwise are defensive in the interests of preserving existing policy space. According to remarks by the meeting’s chair, Swiss Ambassador Remigi Winzap, members are currently “in a brainstorming mode” when it comes to market access and seem to “still be looking for a foothold in the post-Nairobi discussions.”
Agriculture, digital trade, investment
Malmström said on Tuesday that, in her view, the types of issues that appear to have support from fellow WTO members fall into three camps. One camp involves domestic agricultural support, digital trade, and investment – areas which she deemed as having “strong importance to the system.” Indeed, regarding agriculture, the chair of the WTO’s farm trade talks said in February that this area could be “key” to a negotiating outcome for the organisation’s 2017 ministerial conference. (See Bridges Weekly,10 March 2016) Vangelis Vitalis, the New Zealand ambassador chairing those talks, is due to soon report back to WTO members on the outcomes of his latest consultations, sources say. An informal, open-ended meeting of the WTO’s “special session” on agriculture is set for 10-11 May.
With the other two topics, Malmström noted in particular the interest seen from China, one of the world’s largest trading powers. Investment had been one of the “Singapore issues” that were discussed in working groups following the 1996 Singapore Ministerial Conference, only to be dropped in 2003 after members were unable to achieve consensus moving forward. The EU trade chief then classed a number of other Doha topics – such as fisheries subsidies, food security and public stockholding, and domestic regulation in services – as also having support, though being “smaller in terms of impact.” While decisions were adopted in Nairobi regarding public food stockholding for food security purposes, efforts to address the other two areas ultimately failed to bear fruit at the December ministerial meet. Other areas falling in that second camp could include regulatory practices and transparency for technical barriers to trade, as well as subsidies for industrial goods – with Malmström tying the latter to the burgeoning global steel crisis, which has particularly hit EU producers hard.
Indeed, recent talks in Brussels among various countries and industry officials ultimately failed to yield agreed steps forward on the steel overcapacity issue, with some key players such as the US warning of trade action against countries like China and others should the problems persist. Those talks were in the context of a high-level symposium, organised by the Organisation for Economic Co-operation and Development (OECD) and the government of Belgium. Again in this second camp of topics, the EU trade chief highlighted three “new issues” where, she said, there is interest among some WTO members in moving forward. These include export restrictions on energy and raw materials; local content requirements; and state-owned enterprises.
Goods sectorals, trade facilitation
While Malmström stressed throughout her remarks that multilateral approaches are ideal, she did flag two areas where plurilaterals may be the only option. These include sectoral deals on goods market access, similar to the Information Technology Agreement (ITA) and related expansion, as well as taking on additional work on trade facilitation, building on the multilateral pact on the subject reached in Bali, Indonesia in December 2013. That latter deal is not yet in force, still needing approximately 30 more WTO members to ratify its terms. At press time, 77 members had deposited their “instruments of acceptance” to the global trade body, with the latest being Russia. To come into force, two-thirds of the organisation’s 162 members must ratify it domestically.
Coming up
The EU trade chief is set to hold additional discussions with member states in crystallising the bloc’s position moving forward, as well as with civil society representatives and various other stakeholders. Malmström is also due to be in Geneva – home of the WTO – next week, during which she will give public remarks on “multilateralism and other values in EU trade policy.” Other major events on the international trade calendar which could provide additional guidance going forward include a G-7 leaders’ meet in late May; the annual OECD Forum and ministerial meeting in late May and early June; and a G-20 trade ministers’ gathering in early July in Shanghai. Indeed, various informal gatherings held in Geneva over the past weeks have indicated that members are still reflecting on what path they hope to chart forward for the WTO’s future work, with sources noting that many are wary of “drifting” should further clarity and political direction on the negotiating pillar not come soon. The WTO’s General Council, which is the highest decision-making body outside of the ministerial conference, is also due to meet at headquarters on 12 May.
SOURCE: The International Centre for Trade and Sustainable Development
