CUTS Centre for International Trade, Economics & Environment

The European Union is contemplating the way forward following the reluctance of the majority of African, Caribbean and Pacific (ACP) countries to sign the Economic Partnership Agreements (EPAs) they have been negotiating, five months after the expiry of the December 31 deadline set by the World Trade Organisation. EU officials told a group of ACP journalists attending a workshop on EPAs in Brussels recently that there was need for a consensus "as soon as possible" with the regional blocs and individual States that had initialled interim agreements and those had completed rejected them. <<More>>

South-South trade had surpassed 2 trillion U.S. dollars in 2006, with the volume of exports showing a three-fold increase in 1996-2006, according to statistics released by the UN Conference on Trade and Development (UNCTAD) at its quadrennial meeting being held here from April 20 to 25, reports Xinhua. “The rapid growth of China, India, Brazil and others and the rising fortunes of the new South, meant that the old adage ‘when the United States catches a cold, the rest of us get double pneumonia’ was no longer true,” said Robert Davies, deputy minister for trade and industry of South Africa, at a roundtable about South-South trade held during the Accra meeting of the UNCTAD. <<More>>

China and the European Union are committed to deepening economic cooperation, senior officials at the first China-EU High Level Economic and Trade Dialogue said on Friday. "We expect to strengthen communication and cooperation with the EU on topics in the economic and trade sectors and jointly deal with the opportunities and challenges brought about by globalization," Vice-Premier Wang Qishan, who led the Chinese delegation, said at the meeting in Beijing. EU Trade Commissioner Peter Mandelson, who co-chaired the dialogue, said: "We meet at a time when the global economic environment is uncertain, and uncertainty strengthens the political temptation of protectionism. I believe we must guard against that by showing that openness works." <<More>>

East Asia headed for economic integration
United Press International, April 25, 2008

East Asia's economies have been integrating. This once seemed unlikely as this region, unlike the European Union, did not appear to hold much promise for economic integration. Major challenges, mostly the lack of political binding factors, have seemed too daunting for countries to cooperatively overcome to reach their goal. Recently free trade agreements have been making a breakthrough, driven by three main factors in East Asia. Firstly, market-driven economic interaction has solidified. Secondly, the North America Free Trade Agreement and the European Union have motivated East Asian countries to pursue their own regional integration. Thirdly, the Asian financial crisis of 1997-1998 warned these countries of the need to establish cooperative economic and financial relationships. <<More>>

Trust is crucial to China’s trade with Europe
The Financial Times, April 24, 2008

In recent years, trade and economic relations have developed a positive momentum. The EU has become China’s largest trading partner and the largest source of technology imports. China has also become the second-largest trading partner and the fourth-biggest export destination for the EU. <<More>>

Contentious CAFTA - A Turning Point for Costa Rica?
Council on Hemispheric Affairs, April 24, 2008

Five of the six countries, including Costa Rica, which signed the Central American Free Trade Agreement (CAFTA) with the United States, have now ratified it. Oscar Arias, Costa Rica’s Nobel Laureate president, signed the agreement in November 2007, after the pro-CAFTA forces in his country won a hard fought election by a margin of approximately 3 percent. The necessary and enabling legislation is now moving slowly through its National Assembly despite resistance from its opponents. <<More>>

According to a report published by Oxfam, the EU will do irrevocable damage to the development prospects of some of the smallest and poorest countries unless it overhauls free trade deals due to be finalised this year. If finalised, these Economic Partnership Agreements would hurt poor people and undermine development across Africa, the Caribbean and the Pacific. <<More>>

India willing to strengthen trade and investment linkages with trading partners
PIB Press Release, April 22, 2008

Minister of Commerce and Industry, Kamal Nath, has stated that India is willing to strengthen trade and investment linkages with its trading partners through its knowledge advantage, its pool of skilled resources, its young population, its potential of being a manufacturing hub and a base for high-end R&D. Nath stressed that India’s regional and inter-regional trading agreements with other countries of the South form an important element of development diplomacy. <<More>>

US, South Korea Reach Deal on Beef Ban
The Wall Street Journal, April 18, 2008

The US and South Korea have reached formal agreement on a plan to lift the Asian nation's long ban on U.S. beef exports, removing a major impediment that has held up action in Congress on a trade pact that would tighten economic ties between the two nations. The agreement, the result of a furious round of negotiations among trade officials for both countries, came amid South Korean President Lee Myung-bak's first formal visit to Washington since taking office two months ago. <<More>>

With a munificence that accompanies 9% growth, India recently played host to some South African development experts, who were invited to inspect sanitation and low-cost housing. Alas, their experience—of a country where 700m people lack indoor lavatories and half the biggest city’s inhabitants live in slums—did not impress. According to one insider, the South Africans laughed all the way back to the rainbow nation. <<More>>

Mandelson warns against Olympic boycott 'grandstanding'
EU Observer, April 16, 2008

EU trade commissioner Peter Mandelson has attacked those suggesting a boycott of the Olympics over the Chinese government's crackdown in Tibet as engaging in "grandstanding and gestures" and warned against damaging the relationship Europe has with China. <<More>>

High-level dialogue links regional integration and poverty reduction
Southern African News Features, April 15, 2008

Southern African countries are meeting in Mauritius this week to discuss concrete strategies to advance regional integration and poverty eradication. Poverty reduction goals have remained elusive in the region despite a wealth of natural resources, and poverty levels, which are often associated with unexploited productive potential, inequalities within countries, and in the global economy. <<More>>

In late February, a diplomatic flurry in the regional trading firmament erupted. South Africa's Foreign Affairs Minister, Nkosazana Dlamini-Zuma, stated in Parliament that the European Union, out of fear over the Chinese trade "threat", was using economic partnership agreements (EPAs) with the EU to lock in old colonial trading relationships. Subsequently Peter Mandelson, the EU Trade Commissioner, descended on Pretoria and Gaborone. What is going on? <<More>>

PM Gilani to open SAARC CCI in’tl seminar on Economic Freedom
Associated Press of Pakistan, April 14, 2008

Prime Minister Syed Yousaf Raza Gilani will inaugurate SAARC Chamber of Commerce and Industry’s (SCCI) international seminar on “Economic Freedom” here on April 16. Tariq Sayeed, President, SCCI will highlight the vision, objectives, SCCI’s activities and elaborate its role in promoting SAFTA. The business community pins high hopes on SAFTA to multiply intra-regional trade in South Asia in line with the growth of such trade in other blocs like ASEAN, EU and NAFTA. <<More>>

China and Chile sign free trade pact for services
Guardian, UK, April 13, 2008

China and Chile have signed a free trade deal covering services, opening up sectors from management consulting to sports and the environment for easier investment. The deal, which is the first one China concludes with a Latin American country, could set the stage for similar agreements with other nations and help China boost its stunted service sector. <<More>>

UNCTAD study on the role of Asian regional trade agreements in South-South trade

A recent study published by the United Nations Conference on Trade and Development (UNCTAD) presents the key aspects underpinning the rapid expansion of South-South trade in Asia. The discussion highlights some of the trends and impacts of South-South regional trade agreements (RTAs), including intraregional and interregional FTAs, as well as their role in trade and regional development. <<More>>

In Korea and Taiwan, economic sense once again prevails over populist politics and this is likely to drive major shifts in economic policies in coming months, if not years. While political transition has yet to fully unfold in both places, pending Korea’s parliamentary elections later this month and the official change of presidents in Taiwan in May, the shift to a new and more pragmatic economic policy is unlikely to be reversed. <<More>>

China, Australia pledge further cooperation, expanded ties
Xinhua, April 10, 2008

Premier Wen Jiabao met with his Australian counterpart Kevin Rudd here on Thursday, calling for greater cooperation and taking bilateral ties to a new high. During the meeting, Wen said that China-Australia relations had developed rapidly in recent years, with frequent high-level exchanges and comprehensive dialogues at all levels. Tremendous achievements have been made in trade and economic cooperation, with China becoming the largest trade partner to Australia, said Wen. <<More>>

India wants to boost trade with the African continent
The Financial Express, April 09, 2008

Underlining its “distinct” approach towards Africa, the government at the first-ever summit with African countries has announced a Duty Free Tariff Preference Scheme for Least Developed Countries (LDCs) to further boost both trade as well economic relations between the two. <<More>>

India set to join race in Africa’s investment
Africa News, April 09, 2008

India plans to join other countries like China and Russia for more investment in Africa which is rich in mineral resources, Reuters reported on Tuesday. The country wants to ease access for exports from the world's poorest countries; its Prime Minister Manmohan Singh said on Tuesday, as he opened a summit with African leaders with calls for fairer global economic and political representation. And the journey has already started as Exim Bank of India and its African counterpart have signed an agreement for a $30 million line of credit, to be provided by New Delhi to finance India's exports to Africa. <<More>>

India’s Minister of State for Commerce Jairam Ramesh, who was in Srinagar in connection with foundation-laying ceremony for International Trade Centre, said the other day, “Items to be imported and exported have been agreed to and locations identified along the LoC. As there is a peace dividend in people to people contact and trade between the two countries, it will augur well for the future of South Asia. <<More>>

India, Africa trade can double in five years: Ficci
Trading Markets, April 08, 2008

India-Africa trade has the potential to double to USD 50 billion in the next five years on the back of preferential trade agreements, enhanced lines of credit and incentivised exports between the two countries, a survey by industry body Ficci said. <<More>>

Africa's second chance for sustainable development
Business Day, April 08, 2008

On April 7, the India-Africa Forum Summit, the first of its type, commenced in New Delhi at the instance of India. The forum was attended by the heads of state of 14 African nations, who got the mandate of the entire Africa as they were chosen and imbued with representational power by the African Union itself. <<More>>

New WTO Agriculture Text Falls Short – Again
Common Dreams (press release), April 08, 2008

New draft agricultural trade rules released at the World Trade Organization (WTO) today fail to repair a deeply flawed negotiating agenda, according to the Institute for Agriculture and Trade Policy (IATP). This latest attempt to save the Doha Round adds nothing new except more loopholes and exemptions to an already complicated text. “WTO negotiators continue to pursue a Doha Agenda that is unpopular all over the world,” said Carin Smaller, director of IATP’s Geneva Office. “This latest text is not going to reignite passion for a WTO deal. It is time to build a new set of trade rules that are practical and that enable governments to build strong, sustainable food and agriculture systems.” <<More>>

Third World Order VS New World Order. Sino-African economic ...
American Chronicle, April 08, 2008

Africa’s rise to prominence in the geopolitics of the 21st century is explained largely by the renewal of great power interest in the region of the world once dismissed as the "forgotten continent." This great power concern reproduces the same power-play which is reminiscent of the Cold War when inter-locking and overlapping interests of great powers significantly shaped the outlook of international politics. <<More>>

Thailand to gain from new trade agreement
Nation Multimedia, April 08, 2008

The Asean-Japan Free-Trade Agreement (FTA) will cause Asean's export value to jump more than 25 per cent, thanks to increased access to the Japanese market for 71 additional products under the trade-in-goods contract. Asean and Japan will soon ink the Asean-Japan Economic Partnership Agreement, which is expected to take place on the Indonesian island of Bali during the upcoming Asean Economic Ministerial Meeting. Trade Negotiations Department director-general Chutima Bunyapraphasara said the pact would enhance benefits for Thailand on top of its own bilateral trade pact with Japan. "The country will receive greater investment cooperation and technology transfers from Japan and enjoy more tariff reductions and rules of origin for agricultural goods exported to Japan," she said. <<More>>

Prime Minister of India addresses the First India-Africa Forum Summit
Press Information Bureau, April 08, 2008

The Prime Minister, Dr. Manmohan Singh announced a Duty Free Tariff Preference Scheme for Least Developed Countries while addressing the First Indo-Africa Forum Summit in New Delhi today. Reiterating the belief that only by investing in the creative energies of our youth the potential of our partnership will be fulfilled, the Prime Minister proposed that India and Africa work towards the establishment of an India-Africa Volunteer Corps that is devoted to development work. India wishes to see the 21^st Century as the Century of Asia and Africa with the people of the two continents working together to promote inclusive globalisation, Dr. Singh added. <<More>>

The president SAARC Chamber of Commerce and Industry (SCCI), Tariq Sayeed has said SCCI will further focus on enhancing regional investment, joint ventures, improving communication with other regional bodies, strengthening the SCCI secretariat and appointment of Secretary General. He said, “we have lessons to learn from East Asia where regional investments and aggressive joint ventures policy has worked in favour of regional integration and its development.” <<More>>

Sri Lanka in Asia-Middle East Dialogue
The Island (subscription), April 07, 2008

Sri Lanka was a part of the Asia-Middle East Dialogue (AMED) for the first time since after it was created in 2005 in Singapore. The Second Ministerial AMED Meeting held here, brought together 50 Foreign Ministers to discuss ways in which to build political, economic and social, educational, cultural, technological and media partnerships for growth and stability in the two regions. "Sea routes and over land routes, the silk route, linked the two regions in the past and today, with the global economy turning toward Asia, there is a need to builds on AMED and this could open the door for unprecedented opportunities to transform this corporation into a sustainable and operational level that could unleash the huge potentials of the two regions and transform them into mutual achievements and benefits," Ahmed Aboul Gheit, Minister of Foreign Affairs, Egypt said. <<More>>

Chinese Premier says free trade deal with New Zealand of great ...
Xinhua, April 07, 2008

Chinese Premier Wen Jiabao said here on Monday the free trade agreement signed between China and New Zealand was of importance and profound significance. Wen told New Zealand Prime Minister Helen Clark in their talks that the signing of the free trade accord "explored broad prospects for deepening mutually beneficial cooperation between the two countries". He added the China-New Zealand ties were faced with important new development opportunity. The two reached consensus to push the China-New Zealand comprehensive, friendly and cooperative relations to a new high. <<More>>

Africa rejects sections of trade deal with Europe
Business Daily Africa, April 07, 2008

Negotiations for comprehensive trade deals between Europe and Africa have been criticised by several African finance and trade ministers. They seek to remove certain clauses from interim pacts, claiming that the interim Economic Partnership Agreements(EPAs) were signed under duress leading to the adoption of certain “injurious clauses” that undermined their sovereignty before negotiations could continue, the clauses needed to be reviewed. <<More>>

Africa rejects sections of trade deal with Europe
Business Daily, April 07, 2008

Negotiations for comprehensive trade deals between Europe and Africa are headed for another bumpy stretch as finance and trade ministers from Africa sought to remove certain clauses from interim pacts signed between the two blocs. They claimed the interim Economic Partnership Agreements (EPAs) were signed under duress leading to the adoption of certain “injurious clauses” that undermined their sovereignty . They said the clauses needed to be expunged before the negotiations could continue. <<More>>

WB proposals in a yr on boosting trade, regional transport in S Asia
The Daily Star, April 07, 2008

The World Bank (WB) is going to submit proposals to South Asian governments within 12 months for regional projects on cross-border transport, water-sharing and management, energy exports and trade facilitation to boost intra-regional trade. The governments have also been asked to form inter-ministerial committees to discuss the four identified sectors for holistic and concrete solutions, WB's South Asia Director Sadiq Ahmed said yesterday. <<More>>

Development gap is ASEAN’s top challenge
Vietnam News Service, April 05, 2008

The gap in development levels among the member countries of the Association of Southeast Asian Nations is one of the biggest obstacles to ASEAN’s economic integration. During the 12th ASEAN Finance Ministers Meeting in Vietnam, Deputy Prime Minister Nguyen Sinh Hung said that bridging this gap is a key objective of the association, putting emphasis on the improvement of social security, poverty reduction and employment opportunities. <<More>>

Government is working on Pakistan-Malaysia Free Trade Agreement (FTA) Technical Support Project to exploit the potential at the optimum level under this arrangement. According to officials, Foreign Trade Institute of Pakistan (FTIP) has been carrying out this task, which after finalisation would be submitted to Ministry of Commerce (MoC) for final approval by April 15, 2008. <<More>>

President Ali Abdullah Saleh confirmed that Arab economic integration would be deeply beneficial for all Arab states, and would provide a bulwark for Arab economies in times of global economic slowdown. <<More>>

Indo-Singapore ties set to expand: Singapore PM
Journal Chrétien, April 05, 2008

An India-Singapore Strategic Dialogue is to be instituted in a Track 2 diplomacy mode to examine new areas of bilateral cooperation and to exchange views, Singapore’s Prime Minister Lee Hsien Loong said at a gala dinner here on Friday evening. <<More>>

ASEAN pledges speedy financial services liberalization
Xinhua, April 04, 2008

The 10-member Association of Southeast Asian Nations (ASEAN) committed here on Friday to speed up the liberalization of major financial services by 2015.Concluding the 12th ASEAN Finance Ministers' Meeting in Vietnam's central Da Nang city, the ministers said in a joint statement: "We have committed to liberalize key financial services sectors by 2015, towards our leaders' objective of achieving the ASEAN Economic Community (AEC).. We reiterated our commitment to facilitate intra-regional trade and investment by progressively opening up our financial services sector to one another."