INTERNATIONAL
Cash-starved small handloom weavers across the country are set to get almost double the credit available now in a move aimed at helping them increase their productivity and gain independence from master weavers. The Textile Ministry is roping in large public sector banks such as the United Bank, UCO Bank, Canara Bank, Bank of India and PNB to partner in a scheme to extend concessional loans up to Rs. 5 lakh to handloom weavers in all States under the Pradhan Mantri Mudra Yojana, Alok Kumar, Development Commissioner, Handlooms, told BusinessLine. The Centre has decided to discontinue the Weaver Credit Card scheme, which provides a maximum loan of Rs. 2 lakh.
From July, handloom weavers will be extended credit only under the Weaver Mudra scheme, which will have the additional feature of allowing them to withdraw the sanctioned amount from ATMs using RuPay cards. “The decision has been taken encouraged by the huge success of the pilot project under the ‘PNB Weaver Mudra Scheme’ in Varanasi and Bhubaneswar as the average credit disbursed doubled to Rs. 50,000 for the 500 weavers covered as opposed to an average of only Rs. 23,000 under the existing Weaver Credit Card scheme,” Kumar said. Kumar is keeping track of success stories emerging from the pilot project with weavers getting access to more working capital. Dasrathi Patra, Surendra Mati and Bata Patra are all weavers at Manibandha in Cuttack who availed themselves of a loan of Rs. 50,000 each last December under the Mudra scheme and successfully managed to cut ties with the master weaver, as they had enough capital to buy raw materials on their own. “In the case of these three weavers, income has gone up from 60 per cent to 200 per cent in four months. Credit under the older scheme was just not enough to meet the requirement. But, if you put enough money in the hands of weavers, they can benefit immensely,” Kumar said. The Weaver Mudra Scheme, too, will provide credit at concessional rates as the credit card scheme. It has been modified from the original Mudra scheme to incorporate the 3 per cent interest subvention provided to handloom weavers for three years. The Centre plans to cover five lakh weavers under the Mudra scheme over the next three years and has sought the assistance of States. “We will ask States to take a number of weaver clusters, talk to banks and then saturate the clusters in one year so that it has a sizeable impact and monitoring is easy,” he added. There are over 23 lakh looms in the country and about 43 lakh workers engaged in the sector. Despite a fall in overall exports from the country, export of handlooms has been more or less flat at around Rs. 2,300 crore per annum.
SOURCE: The Hindu Business Line
India’s economy may expand by close to 8% in the current fiscal on policy measures taken by the government to revive private investment and positive impact of a likely normal monsoon, economic affairs secretary Shaktikanta Das told FE. The central statistics office had projected GDP growth to be 7.6% for the last fiscal year, the provisional data for which is due on May 31. The latest economic survey has projected that the economy would expand between 7-7.75% in the current fiscal. With India’s weather office recently forecasting an above normal monsoon this year, the prospects of a higher GDP growth has improved, said Das. “I would expect private sector investment this year to be far better than last year,” Das said. His assessment is based on two key factors — the increase in the ability of banks to lend more compared to last year and likely demand pick-up, thanks to a likely normal monsoon after two years of failure. However, analysts say growth revival may not be on a firm footing. Industrial output grew on-year by a mere 0.1% in March even as CPI inflation climbed to 5.4% in April, reducing scope for further easing of monetary policy by the central bank to support growth. Das, however, said there are already signs of a demand pick-up with the automobile and cement sectors performing better while the steel sector is in a much more stable condition than it was a year ago. Passenger vehicle sales rose 11% in April, which was highest in five months. A normal monsoon will help boost rural demand. Das said inflation figures are still within the range and the latest upside was mainly because of seasonal impact of food items such as vegetables, which would cool down soon. The latest weak industrial output growth number could be due to base effect, he added.
Following a surge in non-performing assets (NPAs) in the public sector banks, the government took a number of measures, including infusing capital in the public sector banks. “The problem of stressed assets which looked very grim last year, now looks to be getting under control, increasing the ability of the banks to lend,” the DEA secretary said. This is important, given the fact that the banks’ share in domestic credit intermediation is more than 60%. “I would not like to go so much into the (monthly) numbers, but I would like to go into the overall signs which are now visible in the economy, which I think will bring about more and more investment,” Das said. The government’s reforms in various sectors and liberalisation of rules has resulted in FDI touching $55.5 billion in FY16, up 23% on year.
SOURCE: The Financial Express
Donald Trump says he hates the TPP. He is unable to explain why. Trump’s unhappiness with the TPP, so far, has centered around three major points. The TPP would result in American jobs being outsourced to other countries. The TPP does nothing on currency manipulation. And finally, the deal would allow other countries to ‘dupe’ the US. The latter concern was expanded further by Trump to indicate that the TPP was ‘designed for China to come in, as they always do, through the back door and totally take advantage of everyone’. In the election season in the US, the TPP is the favourite whipping-boy, one that everybody loves to hate, in addition to immigration. Trump isn’t the only aggrieved voice on the TPP. His Republican opponent Ted Cruz came down hard on the deal too, as did the Democrat contender Bernie Sanders. Hillary Clinton, tipped to be the eventual Democrat nominee for the Oval Office, and the ‘preferred’ choice as the US president for most of the non-American world (if not Americans), has also attacked the TPP. The attack, though, has done her prospects more harm than good given that she was a forceful backer of the deal as the US secretary of state. But notwithstanding what she and other presidential hopefuls have criticised the TPP for, none have had as hard and hollow views as Trump. Indeed, Trump’s astonishing views on the TPP have succeeded in uniting expert opinions within the US, many of whom have issue-based differences on the TPP, to call the bluff on his take.
Trump’s arguments for decrying what he calls a ‘horrible’ deal are uncharacteristically, for a US presidential hopeful, based on flimsy rhetoric. US negotiators tried hard and have largely succeeded in blocking outsourcing of American jobs through the TPP by getting all of its members to agree on common labour standards and minimum wages. Outsourcing of manufacturing, a point often cited by US protectionist lobbies for criticising the NAFTA, is also likely to be much less in the TPP given the latter’s stipulation of higher value addition norms than the NAFTA in the rules of origin (ROOs) required to be satisfied for obtaining preferential tariffs. Trump’s assertions appear little more than emotional ranting vis-à-vis the much suave ‘nationalistic’ defence of the TPP by the Obama administration that labels it a victory for ‘Made in America’. On currency manipulation too, unlike what he laments, the TPP members do have an agreement on the side for mutual commitment on not undertaking unexpected devaluations of national currencies.
None, among Trump’s grudges, is more bizarre than his allegation that the TPP is designed for admitting China through the back door. The allegation is so odd that some journalists took the trouble of checking with Trump whether he was aware that China was not a part of the TPP, to which, Trump clarified yes, he was. None would find Trump’s fears of TPP being a China-promoting vehicle more amusing than China itself. Since the advent of the TPP, China has been wary of the deal as an instrument for limiting its ability to craft global trade rules and, furthermore, of it being an alliance of US military and strategic partners for curbing China’s geo-strategic influence in the Asia-Pacific. President Obama and his administration, while being as diplomatically ‘correct’ on this as possible during the early stages of the TPP talks, did not hesitate to sell the deal on an ‘anti-China’ plank during discussions on the TPP in the US Congress and Senate for picking up the fast-track presidential TPA (Trade Promotion Authority) for clearing trade agreements. Trump’s claim of the TPP being a design to accommodate China therefore does sound like a claim that is vastly unaware of what is reality.
In many respects, Trump’s criticism of the TPP is not TPP-specific, but reflective of his hard postures on trade and China. If Trump is to be believed then he is not only going to scrap (at least renegotiate) the TPP, but also the NAFTA, and call off the TTIP (Trans-Atlantic Trade and Investment Partnership) deal with Europe. He might indeed, in addition to all these radical moves and erecting tariff walls against two countries he loves bullying the most—China and Mexico—take his ‘anti-trade’ tirade higher to pull the US out of the WTO! Unfortunately, even after becoming the world’s most powerful individual, that is the US president, Trump is likely to find his wishes coming up against the formidable walls of American law and legislature that considerably restrain US presidents from acting ‘Trump-wise’.
The anti-trade rabble has produced some gains for Trump so far by getting him the support of sections of US white-collared workers unhappy over loss of jobs to Mexico and Canada. However, it is unlikely to broaden and last till November 8, as the presidential race tightens, and Trump gets pressed harder to clarify his charges against the TPP. More importantly, at a bilateral level in the upcoming presidential debates with his Democrat opponent, Trump would need to indicate what, he might consider as an effective ‘non-trade’ alternative economic agenda for the US for generating more jobs and income. That ‘trump’ would need to emerge fast from under his sleeves for convincing the voters on Trump.
SOURCE: The Financial Express
The rupee on Monday continued its falling streak against the US currency, slipping by three paise to hit a two-month closing low of 66.80 on persistent dollar demand from banks and importers on the back of higher greenback in the overseas market. Rise in crude oil prices also affected the rupee-value. The rupee resumed lower at 66.90 as against the last weekend’s level of 66.77 and moved down to 66.91 on initial heavy dollar demand from banks. However, it trimmed its initial losses before ending at a two-month closing low at 66.80.
SOURCE: The Hindu Business Line
Calling for more action on ease of doing business from New Delhi, a senior American official today sought to allay concerns on the future of the Indo-US commercial ties, saying they are "secure" and will withstand any political change at the White House. "The important question is what is going to happen to the Indo-US commercial engagement? We are working very hard to institutionalise it, so that irrespective of the political leadership, the mechanisms, structure and momentum will be there to continue," US assistant secretary of commerce Arun Kumar said here this evening. With the US presidential elections months away, and Donald Trump set to bag the Republican nomination , Kumar was asked about to the future of Indo-American ties, and he termed them as "secure". Kumar, who oversees the global markets division, made it clear that his term will end with the Obama regime.
Specifically, he said initiatives like the CEO Forum, which is now woven into the Indo-US strategic and commercial dialogue, will continue irrespective of who is sworn on January 20, 2017. Additionally, a strong bench of public servants who are in place will also ensure that the ties continue without any difficulties, he said while addressing an Asia Society event. The Indian-origin Kumar, who started his career here in the financial capital itself with KPMG, however, flagged concerns about ease of doing business and asked for more action on it saying conviction on India will increase only when companies see action.
Stating that this is "fundamental to the future growth trajectory of commercial relationships", he said, "many US companies are increasingly optimistic about the shift in official terms and the increased willingness to engage with New Delhi. But they are waiting to see further tangible progress in the country's business climate." He further said even though some states have made progress, as a whole the country still finds itself at the bottom of the ease of doing business list among the G-20 groupings. The work on this front will also help the India initiative, he added. Terming the just legislated Bankruptcy Code as a "significant milestone", he said, "This important reform will make it more likely that banks are able to recoup their money and lend to promising Indian entrepreneurs in the future
SOURCE: The Economic Times
The Centre is likely to provide provisions for grandfathering and a transition period in the re-negotiated tax avoidance pact with Singapore in line with those provided in the amended treaty with Mauritius. “The effort will be to keep the treaty in line with the India-Mauritius Double Tax Avoidance Agreement. All renegotiated provisions in the Mauritius pact will be provided in the Singapore treaty too,” said an official close to the development. The government is likely to approach Singapore soon for a re-signing of the treaty and officials are hopeful that it will be done by the end of the fiscal. Investors have been concerned on whether investments routed through Singapore to India will lose tax benefits after the government plugged loopholes in the DTAA with Mauritius. The amended pact with Mauritius provides for exempting all investments made up to March 31, 2017 from capital gains tax in India. It also provides for a transition period between April 1, 2017 and March 31, 2019 during which the capital gains tax rate will be 50 per cent of the normal rate.
Singapore is one of the largest sources of foreign direct investment to India and had beaten Mauritius as the top spot between April and September 2015 bringing in $6.69 billion in FDI. While the Finance Ministry had said the pact with Singapore too will have to be re-signed, investors have been questioning what kind of a transition would be made available. Finance Minister Arun Jaitley too hoped for a timely renegotiation of the India-Singapore DTAA. “Singapore a separate sovereign state. It (Mauritius treaty) does not ipso facto automatically extend. The principles will have to be applied, but applied through a process of renegotiation,” he said at an event by the Indian Women’s Press Corps on Monday. Tax experts said the move will maintain parity between the two treaties. “The Mauritius and Singapore treaties are intertwined. Anything which disturbs the Mauritius treaty will also impact the Singapore treaty. The government’s plan to grandfather investments under the Singapore treaty similar to the proposed Mauritius protocol is laudable and infuses a sense of equity. Bringing an amended treaty for Singapore will bring clarity and eliminate interpretive speculation,” said Jayesh Sanghvi, National Leader, International Tax Services, EY.
SOURCE: The Hindu Business Line
Ahead of Prime Minister Narendra Modi’s visit to Washington next month, the new IPR policy provides the much needed clarity in rules and legislation sought by several countries including the US, said Commerce & Industry Minister Nirmala Sitharaman. “A number of countries, including the US, had been seeking clarity in our IPR laws and rules. The new IPR policy brings about that clarity and is a positive development in the light of the visit of the PM to the US,” Sitharaman told journalists on Monday.
No amendment to law
The Minister, however, made it clear that India was not looking at amending any law related to intellectual property and has no intention of giving higher protection to patents beyond what has been committed under the international TRIPS Agreement. “While the new IPR policy does provide a window for review, it does not mean we have anything specific in mind. Our laws are all TRIPS compliant. We are not going TRIPS plus,” Sitharaman said. This means that India would retain Section 3(d) in the Indian Patent Act which disallows patents for incremental innovations to check ever-greening of patents. The national IPR policy has proposed tax breaks to promote R&D, creation of a loan-guarantee scheme to cover risk of failure of IPRs and promotion of creation and commercialisation of IP assets.
New mechanism
It also proposed establishment of a mechanism for implementation, monitoring and review of IPR laws, financial support for sale and export of products based on IPRs generated from public funded research and a stronger enforcement regime. On the US Special 301 investigations on other countries’ IPR regimes and India being continuously put on the `priority watch’ list of countries with ineffective IP protection, the Minister said that the US had no authority to oversee mechanism of policies of another country. “We don’t recognise any other country’s authority (over our policy),” she said.
SOURCE: The Hindu Business Line
The first nine months financials of the listed companies of the textile sector suggest that the industry is heavily under pressure, as only 30 percent of the listed companies of textile industry marginally performing while remaining 70 percent companies showing closure or negative results. Financials of the non-listed textile companies are even worst and the exports of the sector are showing negative trends over the last two years. Unprecedented cotton crop failure caused 35% drop in production this year. The textile industry has been left unattended and no responsible figure is there in the textile ministry to look after its issues and problems. No one takes responsibility in the government and there is no clue as to what is in the offing for the industry in the upcoming budget. These views were expressed by All Pakistan Textile Mills Association Chairman Tariq Saud. He urged the government to wake up from a slumbering mode and save the textile industry in order to save economic growth of the country. He said the availability of 24/7 energy to the industry would only be useful when viability of the industry is restored. He condemned the indifferent attitude towards prevailing state of affairs of the textile industry, which is a mainstay of Pakistan economy with backward and forward linkages, biggest employer and the highest export earner in the country. He further said that if this unfriendly attitude of the government will be continued then the industry will move towards the position of no return. He pointed out that the remaining part of the textile industry package has yet to see daylight, as most of the decisions are lying unrested despite firm assurance by the Prime Minister.
Prime Minister assured to introduce rating regime for industry ensuring No Tax No Refund for the entire textile value chain and only the consumption of finished textile fabrics and garments for domestic consumption be taxed. Similarly, he added, the inputs and outputs of the entire textile supply chain should be zero rated. Apprehending increased input tax and further tax, as being reported in the press. This will add to further cost of doing business and impossible to operate. He warned that any increase in the input tax on the textile value chain would prove last straw on the industry’s back. Industry will out rightly reject any such move, if introduced in the budget. While listing down already pending issues of the industry, Chairman APTMA said the government has not yet released pending refunds of Sales Tax. 5 percent DLTL against exports of the entire textile chain including yarn. The theft surcharge and GIDC levied on the textile industry not yet withdrawn. He said the input cost of cotton farmers be reduced to encourage cotton production. Also, the funding provided by the textile industry for cotton research should be spent prudently on cotton seed technology. He said the whole textile value chain should be zero rated in the budget as over 80 percent of all fibres consumed is exported in one form or the other. He also demanded immediate withdrawal of sales and import duty on cotton import. He said the import of synthetic speciality fibers including viscos and acrylic should be zero rated to undertake product and market diversification. He expressed his wonder on a dilly-dallying approach of the government towards not imposing 15% regulatory duty on the subsidised and dumped import of Indian synthetic yarns and fabrics entering into Pakistan’s market for domestic consumption. He said the cotton stranded at the Wagha border should be immediately released to operationalize the industry, which is closed due to shortage of cotton. He said the government should patronise the industry by resolving important pending issues of industry. Already, Pakistan’s industry is miserably lagging behind it’s immediate competitors like Bangladesh, Vietnam and India. He has appealed the government to save the flagship industry of Pakistan for the sake of national economy by taking concrete steps in the upcoming budget.
SOURCE: The Nation
The importance of building green factories to address future challenges in the readymade garment (RMG) industry was recently discussed at a seminar in the port city of Chittagong. Urging RMG entrepreneurs to set up Leed certified green factories, the seminar was organized at a seminar organized jointly by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and US Green Building Council (USGBC). BGMEA vice president Md Ferdous in his speech stressed on the need to build green garment factories. The event witnessed the participation of BGMEA directors Amzad Hossain Chowdhury, Syed Mohammed Tanvir, Md Shaifullah, Kazi Mahabub Uddin, and former BGMEA directors. Owners of various RMG factories in Chittagong were also present at the seminar.
SOURCE: Fibre2fashion
The Sri Lankan cabinet has approved a government proposal to establish mini garment factories in under developed provinces to empower the women in rural areas, according to media reports in the island nation. According to proposal made by Industry and Commerce Minister, Rishad Bathiudeen, the government will establish 150 mini garment factories in selected districts including Eastern and Uva Provinces. Under the programme, rural women will be selected through a transparent method and the priority will be given to those who belong to displaced families and who became widows due to the civil war. The selected women will be given training in tailoring by the Sri Lanka Institute of Textile and Apparel while National Entrepreneurship Development Authority and the Industrial Development Board will train them in entrepreneurship development. Assistance in designing will be provided by the National Design Centre and the Jathika Shilpa Sabawa. The programme is designed to encourage small and medium scale entrepreneurs in approaching the international market and provide job opportunities for rural women.
SOURCE: Fibre2fashion
The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has voiced its concern at Bangladesh's rising garment exports that is eating into Pakistan's markets. In a statement, Shaikh Mohammad Shafiq, Central Chairman of PRGMEA said that at present total export of Bangladesh is $33 billion out of which textiles is $27.5 billion which includes $26.5 billion of garments only. “We feel our share has been taken by Bangladesh. We need to fight for it and bring it to our advantage. Their exports are now increasing at $3.5 billion per year and expected to hit $50 billion per year by 2020, and whatever they have been giving in their budget estimate in last three years is coming true,” he said. According to the statement, Pakistan ranks 138 out of 189 on ease of doing business, slipping two place from last year's position. The cost of making garment in Pakistan is almost double to that of making in Bangladesh. The 60 per cent cost component of wages has a vital impact which is two times in Pakistan, the other costs that includes energy and financials also burdened due to high tariff. Shafiq said the Government must realize that time has gone when raw material used in textiles (yarn, fabric etc) could be exported. This trend is not going to continue and it is the reason Pakistan is facing serious downfall. Countries have to use their raw material and export only possible in the form of finished products - garments. “We must believe in concept that countries have to be completely vertically integrated to use their raw materials in completely finished product,” he said in the statement. “If we see the exposure of these economies towards value added sector, cost is one of the key factors that Pakistan's garment export is only 10 per cent of Bangladesh's woven garment sector, which shows keen interest of Bangladesh Government and other low cost wages countries to boost up this sector and to offer different incentives and schemes to further enhance and growth of this industry,” he said. He also said that low cost of labour in Bangladesh goes in favor of employers. While the minimum wage is around $68 in Bangladesh, in Pakistan it is $125 and rising. Additionally the lower utilities cost further benefits the manufacturer, he pointed out.
According to the PRGMEA It is now the need of the hour for the Pakistani government to develop a coherent plan that allows some sort of exemption/concession to the garment sector to arrest its decline. Shafiq reiterated that the garment sector immediately needs zero-rated regime that had been announced by the Prime Minister. He also sought the release of pending refunds against sales tax, duty drawback and drawback on local taxes and levies (DLTL). Tariff of electricity, gas and water for export sectors should also be brought down, he said.
SOURCE: Fibre2fashion
As Korean companies are keen to invest in the industrial sector of Ethiopia, South Korean President Park Geun-hye has decided to make a State Visit to Ethiopia and the African Union (AU) commission from May 25 to 28, 2016, said the Korean Ambassador. Ethiopia, the second most populous country in Africa and a leader in the East African region, Korean belief that their cooperation with this country is very crucial, not only bilaterally but also multilaterally, noted the Ambassador. President Park, during her visit is expected to announce Korea's policy towards Ethiopia and Africa through the bilateral summit and her special speech at the AU headquarters, said Ambassador.
Acknowledging the importance of the AU, they are enhancing cooperation with the AU in a wide-ranging field. In particular, they are planning to co-host the 4th Korea-Africa Forum in December 2016 in Addis Ababa with Ethiopian government. The President will officially launch a development project called "Korea Aid" in her visit. Through this Korea Aid project, they will be able to achieve the SDGs of "leave no one behind" and share Korean economic and social development experience. Korea and Ethiopia is maintaining a brotherly relationship. The Korean people and government are trying their best to provide meaningful contribution to the developing process of this great country through multiple channels.
Concerning the Korean investment flows in Ethiopia, the Ambassador said that at present, Korean textile company ShinTS is operating a textile factory in Bole Lemi industrial complex, and another world-class Korean textile company is giving positive consideration on new investment. The economies of both countries are highly complementary, taking into consideration of the capital and technology of Korea and the abundant and competitive labor of Ethiopia, said Ambassador KIM Moon-hwan. Investment in the textile and steel industry are under progress, besides this there are some other promising areas for future Korean investment They are expecting that the bilateral relationship will elevate to a new level in every aspect, such as politics, economy, culture, and etc..
SOURCE: Yarns&Fibres
A demand to renegotiate the terms of a free trade agreement (FTA) between South Korea and the United States may very well mean the end of the bilateral trade pact, if not the countries' alliance, Seoul officials said Monday. The remarks came one day after a senior adviser to U.S. presidential hopeful Donald Trump said the real estate tycoon, if elected, may wish to "go back to ground zero" on all FTAs the U.S. has signed so far, including the Korea-U.S. FTA. In an interview with Yonhap News Agency, Walid Phares, an international relations scholar who serves as Trump's foreign policy brain, said renegotiation doesn't "mean cancel everything." "It means to sit down and see, this is what has happened in America since the time we have negotiated and had the agreement (signed), and you tell us what are your cards, and we come closer," he said. Technically, renegotiations of the Korea-U.S. FTA are possible, though they must be preceded by a declaration of termination. Under the so-called KORUS FTA, either side may demand termination of the bilateral agreement, at least 180 days prior to their desired date of termination, according to government officials here. Over the 180-day period, the other side may request holding discussions on ways to keep the agreement, resulting in a de facto renegotiation of existing terms.
Realistically, renegotiations are impossible unless the U.S. wishes to throw out the Korea-U.S. alliance as well, the officials noted. "An FTA is not just a trade pact, but an agreement that closely intertwines member countries in about every aspect, including political and diplomatic aspects," a ranking government official said, while speaking on the condition of anonymity. "An attempt to nullify such an agreement simply because one does not like it anymore is quite literally the same as telling the other party that they will not see each other anymore forever," the official added. Others claimed Trump, even if elected, may not have the authority to nullify or even renegotiate the Korea-U.S. FTA as such power lies with the legislature and not with the executive branch. The KORUS FTA was negotiated and signed by the countries' governments but only on behalf of their respective legislative bodies. The bilateral free trade pact was initially signed in April 2007. It went into effect nearly five years later in March 2012, after it was ratified by U.S. Congress in October 2011 and by the South Korean parliament the following month.
SOURCE: The Korea Times
Bulgaria and Romania have joined their forces to veto the Comprehensive Economic and Trade Agreement (CETA) between the European Union and Canada due to Ottawa’s refusal to waive visa requirements for their nationals. Both countries now propose the FTA to be postponed in an effort to put pressure on both Canada and the EU Member States to solve the visa issue. The CETA has been described by Commissioner Cecilia Malmström as the best free trade agreement that the EU has signed so far. It was agreed in 2014 but it is still to be signed and ratified.
In a joint letter sent by the ambassadors of Bulgaria and Romania to the EU, both countries express their disappointment by the way the Commission deals with the reciprocity mechanism in EU legislation visa matters. “We are disappointed by the way chosen by the European Commission to proceed further with the reciprocity mechanism. We expect the Commission to implement the relevant provisions and regulations, thus safeguarding the Treaties and their fundamental principles of equality and non-discrimination for all European citizens”, the ambassadors write.
Canada offers a visa-free travel to all EU Member States with the exception of Bulgaria and Romania while the United States also excludes Poland, Croatia and Cyprus. Ottawa says that Romania and Bulgaria still do not meet the requirements to waive the visa and as such it has not been able to fulfill its promise given at the 2014 EU-Canada summit to solve this issue. The European Commission on the other hand tried to enforce the reciprocity mechanism, though it decided in mid-April that the consequences of the EU imposing visas to Canada and the USA would be so dire that the mechanism could not be applied in this particular case.
SOURCE: The EU Bulletin
China and Georgia have completed a second round of talks for a free trade agreement (FTA), China's Ministry of Commerce (MOC) said on Monday. From May 9 to 13, the two sides discussed issues including goods and service trade, intellectual property rights and trade facilitation, reaching consensus on parts of the agenda, the ministry said in a brief statement. The third round is scheduled to be held in July in Tbilisi, Georgia's capital. China and Georgia launched FTA talks last December. China is Georgia's third-largest trading partner globally and second-largest source of imports.
SOURCE: The Xinhua Net
