Trade Between India And Pakistan - Aug 20 , 2008

Trade between India and Pakistan can cross $9 billion in the next few years in spite of political differences, industry lobby Associated Chambers of Commerce and Industry of India (Assocham) said. If the two countries conceal political differences, the country can develop strong bilateral ties which can grow from $2 billion to $9 billion. The prospect for collaboration between India and Pakistan has sped up in the fields of banking, freight, transport, tea and rice after the launch of the South-Asian Free Trade Agreement (SAFTA) in January 2006. Bilateral trade has increased from $235.74 million in 2001 to over $1 billion in 2006-07. It said exports from India to Pakistan grew at the rate of 60 per cent and imports at 64 percent during 2002-07, though the balance of trade is still in favour of India.

US Trade Distorting Farm Subsidy More Than Doubled A Decade

NEW DELHI: This might come as a shocker. The US’ trade distorting farm subsidy more than doubled a decade after it committed to bring them down by 20% in the Uruguay Round agreement of the World Trade Organisation in 1995. The overall trade distorting subsidies (OTDS), which were about $10 billion in 1995, increased to $22.6 billion in 2005 and then fell slightly to $17.4 billion the following year.

India and other developing countries could not do anything about it as the US had all its numbers in order. The country managed to actually increase its subsidies instead of cutting it down as it had sneaked into a foot note of its schedule of commitments for the Uruguay Round, an asterixed point changing the base year of calculation from 1995 to 1986-88. Since in 1986-88, its trade distorting subsidies was at an all-time high of $58 billion, a 20% reduction would mean that it was mandated to reduce its subsidies to just $46 billion.

India, according to officials, is unwilling to be taken for a ride the second time round. Once negotiations of the ongoing Doha round nears completion, the commerce department is planning to recruit and train at least 80 economics graduates to go through the schedules of implementation submitted by individual members based on commitments made during negotiations. The idea is to identify and weed out the different clauses which members might introduce to nullify liberalisation commitments made.

“We have to be extremely careful this time. We want to ensure that the promises we are able to extract out of our developed country partners are fully implemented,” an official said.

India and other developing countries have already raised their vigil against similar moves by the US during the current Doha round. While all members have agreed to accept the base year average of 1995-2000 for further reduction of OTDS, the US is insisting on a base year period of 1995-2004.

Officials said that since US’ OTDS is higher in the 2000-2004 period, increasing the base year average by four years would lower its reduction commitments by around $4 billion. “The G-20, the developing country grouping on agriculture, has strongly objected to the US move,” the official added.

The group of young scholars to be appointed by the government to cross-check claims will be given proper training to go through the voluminous schedules submitted by members, especially the developed countries. Wherever, a discrepancy is identified, the Indian government will approach the member concerned and the WTO secretariat to remove them. “We will sign the final WTO agreement only when we are satisfied that there is no slip between the cup and the lip,” the source said.

Officials pointed out that since the schedules run into thousands of pages, developing countries failed to read the fineprint during the Uruguay Round as they did not have enough officials to go through the text. The appointment of trainees for six months will hopefully take care of the manpower crunch.

Although it seems that it would take a while before the round, which involves not just agriculture, but also industrial goods, services and rules, among other issues being negotiated, India is putting its house in order as it does not want to be caught napping again.

Annual Trade Deficit Increased By 35.51pc

The government is concerned about the country''s annual trade deficit, which increased by 35.51 per cent to $80.39 billion in 2007-08, from $59.32 billion in the previous year. They are not comfortable with the trade deficit. However, with prices of crude oil rising globally, they have to live with a big trade deficit.

The commerce ministry has set an export aim of $200 billion for 2008-09. The trade deficit increased as the growth in imports exceeded export growth. In 2007-08, the rupee appreciated by nearly 7.6 per cent, wiping out profits of exporters and encouraging imports of goods like capital machinery, raw material and intermediaries. Global crude oil prices increased nearly 53 per cent in 2007-08, which added to the country''s import bill.

India, Sweden Accord To Strengthen Cooperation In Trade, Academia

New Delhi: India on March 31, asked active cooperation from Sweden in the field of higher education, besides identifying complementarities in high-tech areas of IT, biotech, automotive industry and electronics. At the bilateral meeting between the Union Commerce and Industry Minister, Mr Kamal Nath, and the visiting Swedish Minister of Foreign Trade, Ms Ewa Bjorling, here, it was accorded that the two countries should catalyse cooperation by involving industry, academia and local universities. Sweden has strong interest to deepen and diversify relations with India, especially in the area of trade and economic development, as also in frontier areas of high technology.

India, Brazil Set $10 B Trade Target In Three Years

New Delhi: Looking at over three-fold increase in bilateral trade to $10 billion in three years, India and Brazil on March 26 discussed ways to help developed world cope with the economic slowdown. At a meeting between the Commerce and Industry Minister, Mr Kamal Nath, and the Brazilian Minister of Development, Industry and Foreign Trade, Mr Miguel Jorge, the two BRIC (Brazil, Russia, India, China) countries discussed measures to treble bilateral trade from the present level of $3.12 billion. Moreover, the two ministers reviewed the global economic slowdown and how the two emerging market economies can maintain their growth to avert deeper crisis in the world economy.

LA Trade Delegation To Tap Opportunities In Kolkata

Kolkata: Technology assistance and other forms of economic cooperation via an alliance arrangement is being sought from the Los Angeles County Economic Development Corporation (LAEDC) and the World Trade Center Association (WTCA), Los Angeles Long Beach, for developing an integrated primary healthcare system in Kolkata. A 25-member trade delegation accompanying the WTCA-LAEDC team members, and consisting business and civic leaders from Southern California, is in the city to forge ties between Eastern India and the County of Los Angeles in public and private industries such as logistics, healthcare, tourism, technology and transportation. Already enjoying twin cities status, both sides have also agreed to strengthen existing ties. Supported by the US Consulate, Kolkata and the Bengal Chamber of Commerce and Industry, the trade delegation also comprises representatives of the City of Los Angeles Mayor''s International Trade Office and the Los Angeles Board of Airport Commissioners.

Trade And Industry Bodies Hail Kerala Budget

Kochi: The trade and industry here have hailed the State Budget, saying that it is in the right direction by giving several welfare schemes for various sections of the society. Mr Umang Patodia, Chairman, CII, Kerala State Council, said that efforts to promote public-private partnership in infrastructure development, restructuring of PSUs, financial support for KSRTC, and BIFR model institutional set up for SME sector will go a long way in improving and promoting an efficient administration.

Mr Jose Dominic, President of the Cochin Chamber of Commerce and Industry, said that though the government''s purpose to promote infrastructure development is a welcome measure, much more needed to be done in the State to keep pace with the times. Mr R. Mohandas, President of the Indian Chamber of Commerce and Industry, said that the Finance Minister has positively reacted to the Chamber''s suggestion to introduce an amnesty scheme for disposing of arrears of all taxes to be collected by the Commercial Taxes Department under the KGST Act up to the assessment years right from 1991-92 to 2004-05; to conduct this setting up of a fast track adalat on the Ernakulam model; and to extent the decreased rate of 4 per cent tax for cashew kernels to roasted and salted cashew nuts etc.

Appeal To Waive CHA From Service Tax On Exim Trade

Kochi: The Cochin Custom House Agents Association (CHA) has asked the visiting Parliamentary Sub Committee on Commerce to do away with it and other agencies such as steamer agents, terminal operators etc from the purview of service tax for the services rendered by them for the export of goods.The Association President, Mr C.P. Xavier, said that exporters could not do away with the services of these intermediaries and connected agencies which are essential and vital pertaining to exports. The exporters are bearing these expenses in order to strictly adhere to the norms that the country should export only goods and not the taxes and duties thereon. Additionally, the Association pointed out that exporters and importers are facing considerable difficulties to conduct the inspection of export/import consignments due to shortage of sufficient number of personnel in the Plant Quarantine and Fumigation Station in the sea port and air port. With the Plant Quarantine Order 2003, the number of items covered has also increased. Besides, the personnel at the PQ office at Kochi had to attend to the work at Mangalore, Kollam for cashew, Palakkad and Ernakulam for rice and Thrissur for mango. The Plant Quarantine office situated at Willingdon Island is also looking after the exports/imports through Cochin International Air port. At present the exporters/ CHA''s have to take the Plant Quarantine officers from W Island to Cochin International Airport which is situated quite far away and there is always the element of the Air Cargo which is so perishable missing the scheduled flight.

The Association also highlighted the delay in getting the test results for import samples from the Regional Analytical Lab in the nearby Kakkanad, which had put the importer in considerable difficulties.

India Trade Exhibition Centre To Setup In Sharjah

Kochi: The first Indian Trade and Exhibition Centre to come up in Sharjah. Establishing such a centre will help encourage trade between India and the Gulf Cooperation Council countries, West Asia and the African region countries, Mr K.V. Shamsudheen, Vice-Chairman of the Indian Business and Professional Council (IBPC), Sharjah, said. A MoU was inked in this regard by Mr Sudesh Agarwal, Chairman of IBPC, and Mr Ahammed Mohammed al Midfa on behalf of the Sharjah Chamber of Commerce and Industry, in the presence of Indian Consul General, Mr Venu Rajamony, in Sharjah. The centre is hoped to play a very vital role in the Indo-UAE trade and investment relations. The centre will hold regular exhibitions of Indian products and services, organise meetings and conferences for the Indian business and professional community, lease office and exhibition space to Government of India enterprises and Indian corporations, as well as provide all information about Indian business and services.

India''s Trade Will Gain From Growing Eastern Economies

Chennai: India''s export growth will push forward if the country leveraged opportunities existing in the eastern economies, said the former Secretary, Ministries of Petroleum and Finance, Dr S. Narayan. Delivering the inaugural address at the seminar on ''Current business opportunities for India in Malaysia and Singapore'' conducted by the Madras Chamber of Commerce and Industry (MCCI) and the South India Chamber of Commerce and Industry (SICCI), even though trade with the US and European nations had been growing, it was necessary to note similar growth happening in trade with China and South East nations. Trade as a percentage of GDP has touched about 40 per cent and therefore it was essential for India to know the happenings in the rest of the world.