INTERNATIONAL
Taking forward the Make in India initiative and the inclusive growth agenda, Textiles Minister Smriti Irani is all set to announce a Textile Policy on Sunday that will add a new hue to the handloom sector including ways of bolstering sales through e-commerce. Speaking to BTVI , Irani says the new Textiles Policy will encompass all verticals of the handloom sector. To keep pace with time, Irani confided that an announcement on e-commerce to boost marketing of handloom products will also be made in the Textile Policy, which will coincide with the second observation of the Handloom Day. In the run up to the event, Irani says her experiment in social media with a hashtag of #IWearHandloom has been a major success. It has already got 20 million impressions and sales are growing. Irani now wants people to move from #IWearHandloom to #IJustBoughtHandloom.
What can we expect from the Textiles Policy? What’s in store for the handloom sector, which employs 4.33 million people of which 77 per cent are women?
I think the policy in itself will encompass everything. Apart from handlooms, it will look at the jute sector, the needs of the cotton sector; not only from an apparel perspective, but also from the crop perspective to increase yield per hectare. Through the TUFS (Technology Upgradation Fund Scheme) in the 1980s, ITIs were the prominent places where people who wanted a job quickly, could learn a course on textile mechanics. We do not have that anymore. If you want to give impetus to textiles, you need to look at the engineering solutions.
How do you plan to promote handloom through that e-commerce platforms?
I want to move from #IWearHandloom to #IJustBoughtHandloom. And I think two generations are getting together to buy handloom because of one hashtag, which actually is not coming out of an agency; no marketing team involved and no money spent. The fact is that technology has helped us connect to an emotion. There are challenges when it comes to the sector. I might not like the cut or the product. How can I make it better? You make it better with engagements with designers not only at a national level, but also go down to each and every weaver service centre and the last-mile weaver to connect with the designer. That is something I would like to do. Apart from the business angle of it, apart from the skill angle of it, I think as a country we can also leverage the heritage and historical aspect of it. There was a Budget announcement about a Hastkala Academy. The intention is to get the eco-system going together.
As there is much variety and each of the craft is at different levels of development, can you have an all encompassing strategy?
Some crafts have already died and some are on the anvil of dying. Certain crafts are very vibrant. Some others have never been explored in terms of their potential from a marketing and sales perspective. So we have to break it down into those levels and see which designers want to do ready-to-wear, which designers want to do the high-end and which designers are looking at the engagement only from a preservation point of view. And apart from designers, which artisans are historians who want to preserve and give it forward to the next generation and say this is a legacy, some of which we lost, much of which is written. On handloom e-commerce, I think the point is pertinent from a finance point of view. It may be interesting that the big and small players are doing great sales. I am extremely surprised when I saw players putting in all their effort. They will give you the history of the fabric and the product. When peoplebuy it, they know that they are buying a piece of history. That is the kind of creativity involved.
What about the price of the handloom products sold online?
They are buying at competitive prices. The fact that the kind of marketing they do and the pains they take in making the presentation, makes a whole lot of difference.
SOURCE: The Hindu Business Line
Sutlej Textiles reported a good set of first quarter earnings where net profit increased 42.9 percent to Rs 45.1 crore year-on-year (YoY) and revenue grew 19.5 percent to Rs 553.6 crore (YoY). In an interview with CNBC-TV18, Dilip Ghorawat, Wholetime Director and CFO of Sutlej Textiles said that the company is focusing more on exports and home textile segment and has seen exports increase by 30 percent sequentially. He further expects a good monsoon and the Seventh Pay Commission to boost demand. Below is the verbatim transcript of Dilip Ghorawat's interview to Surabhi Upadhyay and Nigel D'Souza on CNBC-TV18.
Nigel: Could you tell us what exactly was the capacity utilisation can be seen, this kind of a runrate going ahead as well?
A: The numbers that we have given today for the whole year should be on the sustainable basis and with monsoons coming in and with 7th Pay Commission, we feel that this should improve going forward.
Surabhi: If you could tell us a little bit about the operational performance and how you are expecting margins to shape up from hereon?
A: The company is into manufacture of value added dyed yarns and is a leading player in the country of dyed yarns. The company is also focusing into products of fancy yarns and value added products, the company is adding new geographies in the world and focus on exports, company is also focusing on home textiles where we are planning an expansion. This all will culminate into more growth for the company going forward.
Nigel: You could tell us out of your total income, you did at around Rs 550 crore, how much of it was from exports because you are focusing more on exports and margins as well have inched up a little bit to around 14 percent, can you maintain this margins at around 14 percent, can you do even better?
A: The exports of last quarter to this quarter has gone up about 30 percent higher. The performance of the yarn division has done better because we are into value added dyed yarns and Mélange yarns. Going forward, we feel that the performance should further improve in view of good monsoons, in view of the 7th Pay Commission -- there was a drought two years back, this year we have excellent monsoons. The government has given good initiatives for the textile sector, we feel that things should further improve from here.
Surabhi: Can you give us an update on exactly where your margins stand right now? You mentioned a lot of the new geographies that you are entering into, can we expect margin expansion in the rest of the year?
A: Presently our EBITDA margins are about 15.40 percent and also we have started the expansion trial run of our Mélange at Bhawanimandi, Kota, out of 35,000 spindles we have started 9,000 spindles on trial runs. We feel that margin should further improve going ahead.
SOURCE: The MoneyControl
On one corner, freshly-dyed saris are spread across in the late morning breeze at the peaceful campus of Dayalbagh Educational Institute at Dayalnagar Colony. In the block printing class, the women are deeply engrossed in dipping the dyes in colours of sunshine yellows, faded pinks and grasshopper greens and placing them symmetrically over the handloom and hand-spun fabric spread across the table. This is the usual scene during the morning class of the one year certificate course on textile designing at the branch of the Dayalbagh Educational Institute, a deemed university.
Over the past nine years, the institute has been giving training to women and men on the art of hand block printing, tie and dye techniques and screen printing on natural textiles or handlooms as part of the course. Here, there are no machines, but only diligent crafts persons who learn the art of making wonderfully-complex designs on fabrics that sell like hot cakes from the racks in air-conditioned stores.
“More than 50 women and about six men were trained in textile designing during the past couple of years. About 70 per cent of the students run home based enterprises on block printing and tie and dye methods on natural textiles in the city and its outskirts at present,” says Jyothi Narayan, mentor for textile designing course. The course has an audio-visual module that shows the students how the fabric is made from the handloom before going into the practical modules of tie and dye, block and screen printing techniques. The institute also conducts short 10-week-long courses on block printing and tie and dye. At the classes, the women learn the painstaking accuracy of working rhythmically on natural fabric — dipping the block gently in dye, placing it at the right alignment on the cloth and slamming a fist down to transfer the print.
T. Prameela, who completed the certification course and now runs a home-based block printing unit at Madhurawada, says the demand is there for block printing but variation in designs sells well in the market. “I get the wooden blocks for printing from Pedana, near Machilipatnam. While some designs on the blocks are common, sometimes I give my own design made on paper ,” says Prameela. Her monthly turnover is around Rs 20,000.
SOURCE: The Hindu
People across the spectrum from manufacturers to exporters to retailers are unanimous in welcoming the passage of GST Bill in Rajya Sabha and are hopeful that implementation of the tax reform will help the Indian economy grow. The Constitutional (122nd Amendment) Bill that will enable the Goods and Services Tax (GST) gives concurrent taxation powers to both the Centre and states. This implies that the Centre will levy a central GST (CGST), while states will levy a state GST (SGST). For goods and services that pass through several states, or imports, the Centre will levy another tax, the Integrated GST (IGST). The Bill, which has previously been passed by the Lok Sabha, was passed in the upper house after the government proposed amendments to the Bill. The amendments delete the provision of additional tax up to 1 per cent on inter-state trade. The amendments also state that Parliament shall, by law, provide for compensation to states for any loss of revenues, for a period which may extend to five years. Further, a GST Council shall be established as a mechanism to adjudicate any dispute. The Bill will now go back to Lok Sabha for it to accept the new amendments. “The clearance of the much awaited GST bill in Rajya Sabha with a thumping majority will facilitate in the ease of doing business in the country. Although the implementation of the bill in the financial system is much awaited, we can be hopeful of reaping its benefits in near future,” RS Jalan, managing director of GHCL, which is into textiles and chemicals businesses, told Fibre2Fashion. “GST will facilitate a uniform tax levied on goods and services across the country. Expectations are rife that this bill will see a climate of improved tax compliance across India. There will be a reasonable shift in tax burden from production to consumption as GST is being considered as a consumption tax. GST will ensure that India as a country will emerge as a common market with no burden of other indirect taxes and plethora of levies,” he added.
Stating that the GST's passage in Rajya Sabha will pave way for the growth of economy and exports, Tirupur Exporters' Association (TEA) president A. Sakthivel said, “We are happy to note that at last, consensus has been built to pass the prestigious GST Bill, a major reform in the indirect tax system in independent India. It is a game changing in reforms.” “The industries and the people will get benefit out of the introduction of GST,” he said and requested finance minister Arun Jaitley to address any issues that may arise in exports after implementation of the GST system. Meanwhile, the Confederation of All India Traders (CAIT) has expressed satisfaction over the declaration that there will be single return for both CGST & SGST and there will not be any dual control of authority under the GST tax regime. “Such a procedure will certainly simplify the taxation regime to a great extent and will encourage voluntary compliance which in turn will culminate into widening of tax base,” CAIT said. CAIT urged the Union finance minister to include the representatives of trade and industry in GST Council for making them partners in decision making process. It has also urged that first three years after GST implementation should be declared as transformation period and barring habitual offenders or tax evaders, rest of the traders may not be penalised for defaults.
SOURCE: Fibre2fashion
Just a couple of weeks ago, we marked 25 years of liberalisation. In 1991, a liberalised investment and trade regime kick-started the economy bringing about a landmark change in our economy and strongly positioning India as an economic superpower. The passage of the Constitutional Amendment Bill on Goods & Services Tax (GST) is a similar landmark step, which will lubricate the gears of the Indian economy and ensure a virtuous growth cycle for Indian industries for the next several decades. This bold step towards unifying our tax architecture to bring it in line with the world’s leading economies is also a critical step towards the government’s vision of improving the “ease of doing business” in India. The passage of GST was achieved through consensus building among the states and is a shining example of “co-operative federalism” which is necessary for the success of the Indian economy. The policymakers will now work towards building the required architecture to facilitate roll-out of GST from April 2017.
Once GST gets implemented, there will be a radical transformation from a complex, multi layered and cascading indirect tax system to a single and unified direct tax system that allows for tax set-off across the value chain, both for goods and services. This should help lower product costs and thereby make Indian goods competitive in comparison to imports, increasing profitability of companies. This efficiency and improvement should help achieve larger economies of scale leading to harnessing of inflation. GST will also reduce the compliance scrutiny for inter-state movement of goods, which is currently a major source of concern and results in deadweight losses owing to transportation time. Removal of these barriers should help the supply chain of manufacturing industries to become much more efficient.
Restructuring of inter-state transactions is expected to create a level-playing field with creation of common national market. In this context, I applaud the government’s decision to scrap 1% inter-state levy as it would have undermined the true benefit of GST by increasing the compliance costs. Statistics suggest, truckers in India currently on an average lose about six hours daily in tax compliance related matters at various entry points, adding to inefficiencies in logistics and transportation. Presently, all decisions with respect to supply and distribution are guided by the need to minimise the impact of indirect taxes. With the advent of GST the supply chain decisions are likely to be a function of economic factors such as costs, proximity to market rather than non-economic factors such as VAT rate differential between states. This shall lead to efficient reallocation of resources in the economy.
Improving ease of doing business
A centralised and standardised GST registration would help in creation of an ecosystem conducive to start-ups, which can adhere to a centralised tax system. A unified system will also help reduce the compliance burden while allowing start-ups to compete on a level footing with established players. Also uniformity of tax systems across states can help all levels of production resulting in an improvement in the ease of doing business. The improvement in this ranking, which has been a key focus of the government, will also help attract more foreign direct investment and position India as a favourable and preferred investment destination. Over the next 2-3 years, GST will have a cascading effect on the Indian economy and with structural enhancement, this can translate to a potential growth in GDP of 1-1.5%. GST should also help in the revival of an investment cycle which could bring in a disinflationary impact. I strongly believe that passage of this bill will help fortify India’s economic system and has set a strong platform for India to grow in the next decade and cement its position as a global economic superpower. The Indian economy’s wheels have been set in motion, and reforms such as the GST and the institutionalisation of the insolvency & bankruptcy code will act as lubricants to take this growth into the next gear!
SOURCE: The Financial Express
The NDA government wants to establish the proposed GST Council in six to eight weeks so as not to lose the momentum built around the Goods and Services Tax regime, which propelled the enabling Constitution Amendment Bill through the Rajya Sabha. The sense of urgency is amplified by the government’s keenness to roll out GST from April 1, 2017. “Our aim is to set up the GST Council by September-end or early October so that it can begin working on the fine details of the tax system, including rates, compensation as well as the Model GST legislation,” said sources familiar with the development. The Council will be set up once the Constitution Amendment Bill is ratified by at least 50 per cent of the States and receives the President’s assent. Indications are that the Empowered Committee of State Finance Ministers, which is charting the GST roadmap, will be converted into the GST Council. It will play a pivotal role in determining other aspects of the tax such as exemptions, threshold, compounding and control.
Revenue Secretary Hasmukh Adhia indicated that the government wants at least 16 States to ratify the Bill in the next 30 days. Prime Minister Narendra Modi and Finance Minister Arun Jaitley are understood to have also sounded out Chief Ministers of BJP-ruled States on the issue. “BJP-ruled States will either ratify the Bill in the Monsoon Session or call a special session soonest,” said a party leader, adding that discussions are also on with other NDA-ruled States on the issue. The NDA government has given notice for the amended Bill to be taken up in the Lok Sabha, which is likely next week. The NDA has a majority in the Lok Sabha; in any case, the Congress and other parties too are likely to support the Bill.
Asked about the Congress’ stand in the Lok Sabha, senior party leader Jyotiraditya Scindia told BusinessLine : “The GST concept was introduced by the Congress, but the NDA government frittered away the advantages of GST... Only after two years has it realised the importance of consensus-building and agreed to the changes we demanded.” “Even now, the upper limit for the tax rates must find form in the GST Bill,” he said. Other parties, including the Left and the Samajwadi Party, will likewise support the Bill in the Lok Sabha. The Centre is looking to bring the AIADMK, the only party to oppose the Bill in the Rajya Sabha, on board.
SOURCE: The Hindu Business Line
India will be more appealing to Chinese firms after the clearance of much awaited Goods and Services Tax Bill in the upper house of Parliament, a state-run daily said on Friday. An op-ed piece in Global Times said China was willing to work with India to make GST Bill a “reality”. It said the passage of the bill could boost Prime Minister Narendra Modi’s political legacy and give him a better chance for a second term. “This (GST) could certainly boost India’s appeal to multi-nationals, including Chinese firms, as a myriad of existing federal, state and interstate levies in the country had previously increased their tax burdens and barred them from further exploring potentials in the world’s fastest-growing major economy. “China is more likely to see this reform, which aims to make India a better destination for investment, as an opportunity rather than a threat,” the daily said. However, the Global Times lamented that Chinese companies still faced complicated and cumbersome tax system in India. “Chinese companies are certainly welcoming the move. Along with other restrictions, the country’s complicated and cumbersome taxation system as well as bureaucracy related to tax-collection remains a hurdle for the firms doing business in India.” “China will be happy to see the reforms go through as it sees this improved investment environment as an opportunity rather than a threat and will be willing to work with India to make it a reality,” the write-up said. “The move is both politically and economically significant. Politically, it showed that the Modi government can compromise to get reforms made in the national interest. “It could add momentum to the world’s already fastest growing economy,” it said.
SOURCE: The Financial Express
The rupee strengthened further by 14 paise to end at 66.77 against the US currency on the back of sustained dollar selling by exporters amid weak overseas tone. Robust FII inflows into the equities and debt predominantly supported the domestic currency to sustain its momentum for the second consecutive day. Foreign portfolio investors (FPIs) bought shares worth a net Rs 435.65 crores as per provisional data from the stock exchanges. A breathtaking rally in domestic equities, supported by buoyant global sentiment following the BoE’s decision to ease its monetary policy also provided added momentum to the rupee, a forex dealer commented. Foreign inflows are likely increase on the back of improved sentiment for reforms after the passage of the Constitution Amendment bill on GST by the Rajya Sabha, the dealer added. The domestic currency was further supported by unwinding of long-dollar positions by speculators. The greenback largely traded little changed against all its major currencies.
Maintaining its strong edge against the dollar, the home unit resumed higher at 66.85 from last closing value of 66.91 at the Interbank Foreign Exchange (Forex) market. After falling back briefly to 66.8925 in late morning trade, rupee recouped smartly to hit a fresh intra—day high of 66.7450 towards the fag-end trade before ending at 66.77, revealing a sound gain of 14 paise, or 0.21 per cent. It has gained 22 paise in the last two days. The US dollar index are trading lower by 0.22 per cent at 95.55 in early trade. Meanwhile, the RBI fixed the reference rate for the dollar at 66.8141 and euro at 74.4510. In cross-currency trades, the rupee softened against the pound sterling to settle at 87.95 from 87.94 and also eased against the Japanese yen to end at 66.05 per 100 yens as compared to 66.01 on Thursday. The domestic unit, however firmed up against the euro to close at 74.32 from 74.42 earlier.
In the forward market, premium for dollar continued to drift owing to consistent receivings from exporters. The benchmark six-month premium for January 2017 eased to 191-193 paise from 192.5-194.5 paise and far forward July 2017 contract also edged down to 388-390 paise as compared to 390.5-392.5 paise previously. In the meantime, the flagship benchmark BSE Sensex shot-up by 363.98 points to end at 28,078.35, while broader Nifty jumped 132.05 points to 8,683.15.
SOURCE: The Hindu Business Line
Mauritius is looking to revive efforts to put in place a comprehensive economic cooperation pact with India, close on the heels of sorting out long-pending issues related to the bilateral tax treaty. The island nation, a major source of foreign direct investments coming into India, is also eyeing a preferential trade agreement. Minister of Finance and Economic Development Pravind Jugnauth has said that Mauritius would revive talks with India on Comprehensive Economic Cooperation and Partnership Agreement (CECPA). “Now that the issue of DTA (Double Taxation Agreement) with India has been resolved, the government will revive and finalise the negotiations with New Delhi on the CECPA including a Preferential Trade Agreement,” he said in his 2016-17 Budget speech recently.
India exports petroleum products, pharmaceuticals, cereals, cotton and electrical machinery, among others, to Mauritius. The island nation exports to India include iron and steel, pearls and precious/semi-precious stones. In 2014-2015, India exported $1.9 billion worth goods to Mauritius while the imports during the same period were to the tune of $21.19 million, as per official figures. According to the Indian High Commission in Mauritius, the island nation was the “single largest source of FDI into India during the financial year 2014-15, with FDI equity inflows amounting to $9.03 billion – 29 per cent of total inflows in 2014-15”. After long drawn negotiations, the amendment to the 1983 Double Taxation Avoidance Convention (DTAC) was signed by India and Mauritius in May. With the changes, India can impose capital gains tax on investments routed through Mauritius. For two years starting from April 1, 2017, capital gains tax would be levied at 50 per cent of the prevailing domestic rate and after that, full rate would be applicable. The three-decade-old taxation treaty, which came into force from April 1, 1983, is said to have been misused by many Indian and multinational companies to avoid paying tax or to route illicit funds. The island nation was the biggest single source of foreign direct investment into India in 2014-15, accounting for about 24 per cent of $24.7 billion FDI. In his speech, Jugnauth also expressed his gratitude to the Indian government for the “exceptional financial support of $353 million, that is some Rs 12.7 billion”, which the island nation would be receiving over a four-year period.
SOURCE: The Financial Express
South Africa is targeting to increase bilateral trade volume with India to $20 billion by 2018 from the current $10 billion with focus on ITC, pharmaceuticals, automotive, mining and agriculture sectors. Consul General of South Africa Maropene L Ramokgopa, who was here yesterday to meet members of industry body CII, told PTI that the current bilateral trade between the two countries stands at $10 billion and they are targeting to reach more than $20 billion by 2018. The decision comes up after Prime Minister Narendra Modi’s visit to the country last month. The South African High Commission currently administers a total of 52 bilateral agreements in various fields including the mandates of BRICS (Brazil, Russia, India, China & South Africa) and IBSA (India, Brazil & South Africa). “These investments cover a wide industry spectrum which include pharmaceuticals, automotive, ICT, mining, agriculture, hospitality, metals, BPO etc. Both countries will draw on their long-standing ties as well as increased cooperation in new forums like BRICS for achieving all economic and social goals set by them,” she said. Ramokgopa underlined the importance of strengthening cooperation between business entities of South Africa and India and identified focus areas for deeper cooperation including manufacturing, mines and minerals, IT, renewable energy, pharmaceuticals, tourism, S&T and financial services. “South Africa offers sound investment opportunities in almost every field of business and trade. Investment opportunities are available for Indian companies in energy, (mostly solar and wind energy), engineering, housing, hotels & tourism, healthcare medicines, film and entertainment, IT, biotechnology, agro-processing and the automotive sector,” she added.
SOURCE: The Financial Express
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 40.76 per barrel (bbl) on 04.08.2016. This was higher than the price of US$ 39.48 per bbl on previous publishing day of 03.08.2016.
In rupee terms, the price of Indian Basket increased to Rs. 2728.63 per bbl on 04.08.2016 as compared to Rs. 2642.60 per bbl on 03.08.2016. Rupee closed unchanged at Rs. 66.94 per US$ on 04.08.2016 as compared to 03.08.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on August 04, 2016 (Previous trading day i.e. 03.08.2016) |
Pricing Fortnight for 01.08.2016 (July 14, 2016 to July 27, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
40.76 (39.48) |
43.20 |
|
(Rs/bbl |
2728.63 (2642.60) |
2901.31 |
|
|
Exchange Rate |
(Rs/$) |
66.94 (66.94) |
67.16 |
SOURCE: PIB
Pakistan has proposed a tariff reduction plan under the Turkey-Pakistan Free Trade Agreement that calls about immediate elimination of custom duties on 35% of tariff lines amid steady progress in talks for early finalisation of the deal. The plan has been shared with the Turkish authorities during the third round of FTA talks, held late last month in Ankara, according to officials of Ministry of Commerce. It is a flexible plan that is subject to further negotiations that will take place by the end of this month in Islamabad. The plan talks about 85% liberalisation of trade. According to the proposal, under the fast track category, tariffs may be brought down to zero on 35% of the tariff lines. The international trade experts argue that the first phase of trade liberalisation should be crafted by keeping in mind factors like mutual advantages and impact on local industries. Under the normal track, the tariffs are proposed to be lowered to zero in five years on 20% tariff lines. It mentions duty elimination in ten years under the sensitive category while for highly sensitive category, the Pakistani authorities have proposed to eliminate duties in ten years. It has protected 15% of the tariff lines from the reduction plan. Turkey will give its views on the proposed plan in the upcoming meeting. The officials said that Turkey’s initial reaction to the plan was that 35% immediate liberalisation after the enforcement of the FTA was lower than its expectation.
FTA’s details
The decision to initiate negotiations for a comprehensive bilateral FTA covering trade in goods, services and investment was taken at the 4th Session of the High Level Strategic Cooperation Council (HLSCC) meeting, held in Islamabad in February last year. After holding the inaugural session of FTA negotiations in Ankara in October 2015, the two sides signed the Framework Agreement for the FTA in Islamabad in March 2016 and are trying to complete the negotiations by end of this year. During his visit to Islamabad, the Turkish PM said the goal of signing an FTA was to increase bilateral trade to $5 billion in the next three years and then to $10 billion. The Turkish premier had termed the $650 million bilateral trade volume of 2015 “painful”. Pakistan is not happy with current level of its exports to Turkey, which were adversely affected when Ankara decided to impose 42.2% additional duties on Pakistani products by triggering trade safeguard measures. Resultantly, Pakistan’s exports to Turkey halved within no time -a trend that Islamabad is keen to reverse.
Opposing perspectives
Both sides have difference of opinion over what constitute custom duties, as Turkey wants to include custom duties and all other duties on imported goods in the definition. However, Pakistan wants to exclude regulatory duties from the definition. The PML-N government has imposed regulatory duties on hundreds of items aimed at boosting its declining revenues. Due to their ‘temporary nature’, Pakistan is reluctant to include the regulatory duties in the tariff reduction plan, said the officials. Turkey also wants to bring para-tariffs under the ambit of the FTA. The Ministry of Commerce and Federal Board of Revenue will formulate a joint position on the regulatory duties issue, said Dr Robina Ather, the additional secretary of the commerce ministry. Dr Ather led Pakistani delegation in the third round of talks. She said during the last round of negotiations most of the issues on the fronts of trade in goods and services have been settled. There is also a difference of opinion on including an enabling clause to withdraw concessions given under the FTA, which Turkey is not agreeing to on the ground that it will make the FTA unpredictable. This issue will be taken up again for discussion during the fourth round out talks. During the third round of talks, both sides also agreed to the definition of origination of the goods. One of the outstanding issues was the provincial levies, as Turkey was also keen to bring them under the ambit of the FTA.
SOURCE: The Tribune
Establishing a free trade zone between the Eurasian Economic Union (EAEU) and Iran can give a strong impetus to expanding bilateral trade and investment, Russian President Vladimir Putin said in an interview with Azerbaijani State News Agency AZERTAC. "The creation of a free trade zone between the Eurasian Economic Union and Iran can give a strong impetus to trade and investment contacts between Russia and Iran. The joint research group, which will study in detail the parameters of a possible agreement, has already begun its work," Putin said. "We are also interested in strengthening our partnership with Tehran in regional affairs. We consider it an important factor of maintaining stability and security across a large territory from Central Asia and the Caspian region to the Middle East. We will continue to support Iran's pursuit of full SCO (Shanghai Cooperation Organization) membership," the Russian leader noted. "Iran is Russia’s longtime partner. We believe that bilateral relations will benefit from the reduction of tensions around Iran following the comprehensive agreement on the Iranian nuclear program," he continued."First of all, we intend to continue fostering trade and economic cooperation. During my visit to Tehran on November 23, last year, and my negotiations with Iran’s Supreme Leader Ali Khamenei and Iran's President Hassan Rouhani, I found that Iran’s leaders genuinely share this approach," Putin said. "Thus, through collective efforts we have managed to increase the volume of mutual trade. In the first five months of this year, it grew by 70 percent, reaching $855 million," he reminded.
The Russian president said large-scale joint projects in the oil and gas sphere, and the aerospace and electric power industries are being developed. "For instance, Russia intends to grant two state loans to Iran to the amount of ˆ2.2 billion to finance the construction of a thermal power plant near the city of Bandar Abbas on the Persian Gulf coast and the electrification of the Garmsar-Ince Burun railway section in the north-east of the country," Putin noted. "In certain areas, Russian-Iranian cooperation has already become strategic in nature. This is particularly true of the joint work in the field of peaceful nuclear energy. Iran’s first nuclear power plant, Bushehr was built on the basis of Russian technologies. Plans for the construction of 8 more nuclear power units by Russian specialists in Iran have been agreed," he said. "We will further assist our Iranian partners in implementing the Plan of Action on Iran's nuclear program, including the processing of enriched uranium and the conversion of facilities to produce stable isotopes," Putin concluded.
SOURCE: The Russia Beyond the Headlines
