Mr. Lamy said that the global trade talks were at a "defining moment" considering the current efforts of nations such as the United States, the European Union, and the ASEAN (Association of South East Asian Nations) members to save the negotiations. According to him, nations must seize the opportunity since they barely had enough time to reach an agreement. It must be noted that several trade ministers will gather in Davos, Switzerland on the sidelines of the World Economic Forum (WEF) in order to talk about the resumption of the Doha negotiations.
Pakistani Federal Commerce Minister Humayun Akhtar Khan recently expressed his optimism regarding the mini-ministerial conference of the WEF. The mini-ministerial meeting, which would be held on the sidelines of the economic forum, is expected to contribute to the resumption of the global trade talks. The Pakistani official was positive that the Doha Development Round of Trade Talks would gain momentum during the mini-ministerial assembly. According to Humayun Akhtar, multi-lateral talks such as the global trade negotiations usually last a long period of time. He cited the Uruguay Round as an example. The Uruguay Round lasted for eight years and culminated to the creation of the WTO in 1995.
US Trade Representative Susan Schwab has also remained optimistic that the efforts of the WTO to restart the global trade talks were making progress. However, Ms. Schwab said that a breakthrough in the Doha talks was not still imminent. According to her, the negotiators in the WTO talks still had a long way to go in order to achieve a breakthrough. But she said that the current attempts to save the Doha Development Round of Trade Talks were already making progress. After her meeting with WTO Director-General Pascal Lamy, Ms. Schwab told reporters that the on-going negotiations to save the trade talks were progressing. Prior to her meeting with Mr. Lamy, Ms. Schwab had already met with EU Trade Chief Peter Mandelson, as well as the trade ministers of Brazil and Japan.
ASEAN Leaders Agree to Improve Relations and Cooperation in Trade
Earlier this week, the leaders from the Association of South East Asian Nations (ASEAN) signed an international trade deal on energy security in a move to reduce the bloc's dependency on petroleum and to lower the amount of greenhouse gas emissions, especially in the most polluted nations. The ASEAN members, along with Australia, Japan, China, South Korea, New Zealand, and India, had just held their summit in Cebu, Philippines where they dealt with current political, economic, and trade issues. During the summit, the leaders of the economic bloc have agreed to cooperate more in terms of international trade, particularly in the energy sector. Besides discussions covering trade, the ASEAN leaders also talked about the nuclear project of North Korea, bird flu, disaster mitigation, and financial integration.
Another highlight of the summit was the agreement among the ASEAN members to establish an open community that would facilitate international trade and economic cooperation within the region by 2015. The ASEAN leaders inked some declarations, which were referred to as the framework of the formation of the ASEAN group. The three declarations are the following: the "Cebu Declaration Towards A Caring and Sharing Community," the "Cebu Declaration on the Blueprint for the ASEAN Charter," and the "Cebu Declaration on the Protection and Promotion of the Rights of Migrant Workers." The above mentioned declarations are historic since they are the first documents and deals that focus on the concerns of the ASEAN people.
Several Nations Discuss Separate Trade Agreements
China has recently called for the US to stop interfering in the former's trade talks with Iran. Last month, the US government voiced its concerns regarding the proposed international trade deal on gas between Iran and CNOOC. The US deemed the proposal as inappropriate considering the fact that Iran refused to comply with the UN resolutions that had been imposed on its uranium enrichment program. But the Chinese government argued that the plans by China National Offshore Oil Corporation (CNOOC) to invest in a gas field in the Middle East nation were "legitimate." The proposed international trade deal on gas between Iran and CNOOC is expected to reach up to $16 billion. Negotiations between Iran and the CNOOC are still on-going.
Australia and China started their negotiations regarding a proposed free trade agreement back in May 2005. But according to reports, the progress of the trade discussion between the two countries has been moving at a slow pace. Although the two sides have not yet reach an international trade pact, Australia said that it was committed to striking a deal with China. After he had met with Chinese Premier Wen Jiabao during the ASEAN summit, Australian Prime Minister John Howard described the negotiations with China as "hard talks." According to him, it was necessary for both sides to discuss and settle some sensitive issues related to the proposed free trade agreement. But Mr. Howard said that the trade ties between his country and China was "extremely good." He added that even in the absence of a free trade agreement with China, Australia's trade relations with the country was still spectacular. But the Australian prime minister said that there was still room for more improvements and that the two countries would be cooperating to boost their trade and economic ties. At present, trade between the two countries amounts to $32 billion every year.
Meanwhile, Italian Prime Minister Romano Prodi visited Romania last Tuesday in order to talk about international trade and emigration issues. Mr. Prodi met with his Romanian counterpart Calin Popescu Tariceanu with whom he tackled the increasing trade between their countries. At present, trade between Italy and Romania is worth around 412.9 billion. Italy is the main partner of Romania in terms of trade and it is also the fifth-biggest investor in Romania.
The Indian industry recently suggested that trade between India and Russia in terms of services and goods could further grow if both parties would establish a permanent platform for negotiations concerning other trade barriers besides tariffs. According to the Indian industry, the move would enable the two countries to identify and address factors that impede the expansion of their international trade ties like the lack of trade links and routes. With the scheduled visit of Russian President Vladimir Putin to India later this month, the Confederation of Indian Industry released a report regarding the deepening of the trade relations between India and Russia. In the report, CII stated that the proposed CECA (comprehensive economic cooperation agreement) between the two nations would only work if the two sides would establish shorter routes for global trade. Particularly, the report said that the two nations should prioritize the North-South Corridor. It added that by reaching an agreement concerning the corridor, both India and Russia would be able to lower costs in the transport of their goods. The North-South Corridor passes through the Suez Canal and then reaches the port of St. Petersburg via Rotterdam (Netherlands) and Kotka (Finland).
Meanwhile, Nicaraguan President Daniel Ortega spent his first day in office signing a trade agreement with Venezuela, Cuba, and Bolivia. Before assuming office, Mr. Ortega assured that he would maintain the relations between his country and the US. He also assured that his nation would remain part of the Central American Free Trade Agreement. But Mr. Ortega's recent move is likely to disappoint the US government. Under the newly signed agreement, he agreed that Nicaragua would join the Bolivarian Alternative for the Americas (ALBA), which was formed to counter a comprehensive international trade deal proposed by the US. The Nicaraguan leader said that the signing of the trade agreement indicated the desire of Latin America to be independent.
Vietnam Faces Trade Challenges
The sales of Vietnam in home appliances and electronics have dropped sharply during the past months. The economic situation is caused by consumers who are still waiting for price cuts and improvements in the international trade scene. But these price cuts may not even materialize. According to the Thanh Cong Commercial Company Deputy Director, Nguyen Thanh Mai, this trend is something that should not be taken lightly since the slump has occurred before the Lunar New Year. Other companies like Sony Electronics Trading Centre Hoan Kiem has also reported a decline of 30% in sales during the final quarter of 2006. Phuoc Thanh, which is another electronics company, has also posed similar problems, with its sales dropping down by 20 to 30% for the past three months. However, the two companies are expecting signs of improvement next month.
The recent entry of Vietnam to the WTO is expected to contribute to the country's economic development. But the manufacturing sector of the US will also benefit from the accession of the communist nation to the global trade bloc. It must be noted that Vietnam will eliminate its duties on IT products like cellphones and computers. The nation will also lift the ban it imposed on motorcycles. According to US commerce officials, Vietnam's accession to the WTO will not only boost the country's status in the world market, but it will also open more opportunities in terms of trade and investments.
India and Pakistan in Dispute on Basmati Rice
India and Pakistan are currently in dispute concerning intellectual property rights on basmati rice. According to reports, Pakistan filed a complaint at the WTO under the Geographical Indication Law of the Trade Related Intellectual Property Rights. After India had claimed right over the basmati rice, Pakistan was left with no other choice but to seek the intervention of the global trade body. But records from the EU indicated that basmati rice was originally cultivated in the Punjab areas found in both the territories of India and Pakistan. Since the two countries have equal rights over the production of basmati rice. Initially, both India and Pakistan agreed to negotiate on a joint registration deal, but the talks eventually failed.
New US Farm Bill to Affect Producers and Exporters
US President George W. Washington and legislators are at odds that a new farm bill will greatly affect producers and exporters in the country. According to lawmakers, passing a new bill would be disadvantageous to agricultural producers. House Agriculture Committee Chairman Rep. Collin Peterson (D-Minn.) said that the Congress should just extend the previously approved farm bill in 2002. But Agricultural Secretary Mike Johanns insisted that the current farm programs needed to be reformed. According to him, the 2002 farm bill covered economic and agricultural issues that did not exist. Needless to say, some farmers agree with the proposal to revise the existing US farm law.
