India Protests Against US Trade Barriers at WTO

(Economic Times)

India at WTO today protested against escalating tariff and non-tariff barriers imposed by the on Indian goods and services including enhanced visa fee on Indian short-term services providers and the ban in Ohio on state outsourcing projects.

New Delhi cautioned the USA on its recent trade initiatives, particularly the Anti-Counterfeit Trade Agreement (ACTA), saying “they contribute collectively to undermining not only the (Trade related Intellectual Property Rights) agreement but the multilateral trading system as well in some measure.”

“The US, which is the undisputed leader of the global trade arena, needs to set the bar high for the other nations to emulate” instead of delaying compliance with trade rulings pronounced by the WTO’s dispute settlement body, it said. Read more here.

Ministers Announce Findings of Study on Trade Agreement Between Canada and India

(Minister of International Trade)

(The Honourable Peter Van Loan, Minister of International Trade, today [Friday] announced public release of the results of a joint study on the benefits of free trade between Canada and India. The Minister made the announcement in Ottawa together with India’s Minister of Commerce and Industry, Anand Sharma, following the First Annual Ministerial Dialogue on Trade and Investment.

“Minister Sharma and I welcomed and endorsed the Joint Study Group recommendation that negotiations should be initiated toward a substantive and ambitious trade agreement that would be to our countries’ mutual benefit,” said Minister Van Loan. “The agreement would help us meet our mutual goal of increasing bilateral trade to $15 billion annually within the next five years.”

The study shows that freer trade in goods and services between Canada and India could also increase Canada’s gross domestic product by at least US$6 billion, boost bilateral trade with India by 50 percent, and directly benefit Canadian sectors like forestry, energy and manufacturing.

“Canada’s trade and investment partnership with India is on an exciting path, and an economic partnership agreement will further broaden and deepen that partnership,” said Minister Van Loan. “Our government has made India a key priority in Canada’s foreign and trade policy agenda.”
Prime Minister Stephen Harper and Prime Minister Manmohan Singh of India announced the establishment of the Ministerial Dialogue during Prime Minister Singh’s recent visit to Canada. That visit and last year’s visit to India by Prime Minister Harper have underlined both countries’ dedication to their bilateral relationship.

During their meeting, Ministers Van Loan and Sharma reviewed the progress of negotiations on a foreign investment promotion and protection agreement, which will stimulate increased investment flows between the two countries.

The ministers place a high value on the input of Canadian and Indian businesses, and look forward to the prompt establishment of an India-Canada Chief Executive Officer (CEO) forum. The forum was one of the initiatives discussed during Prime Minister Harper’s visit to India in November 2009.

The CEO forum will be made up of leading Canadian and Indian business representatives, who will provide advice on improving investment and trade between Canada and India. The CEO forum will regularize the India-Canada CEO round tables that have been taking place on the margins of ministerial visits. Later today, the ministers will participate in the third such round table, with key CEOs and business leaders, including Pierre Duhaime, President and CEO of SNC-Lavalin Group; Richard Legault, President and CEO of Brookfield Renewable Power; Hari Bhartia, President of the Confederation of Indian Industry, and Co-Chairman and Managing Director of Jubilant Organosys Ltd.; and Deep Kapuria, Chairman of Hi-Tech Gears Ltd.

“The Government of Canada is creating an environment that allows Canadian technological innovations and commercial expertise to reach more markets,” said Minister Van Loan. “Our government is committed to opening global markets, including India, for Canadian companies through an aggressive free trade agenda that includes promoting investment and fighting protectionism.”

For more information, please see the Canada-India Joint Study Group Report.

Imported e-waste Seized by Customs Officials

(Times of India)

More than 120 tonnes of e-waste imported from various countries by different companies in violation of Customs Act and hazardous waste management rules have been seized at the port.

The e-waste shipped here in eight containers were seized by Directorate of Revenue Intelligence officials.

Of the total five consignments, one was from Australia, one from Canada, two from Korea and one from Brunei, a DRI release said.

The subsequent examination of the goods revealed that all the computer monitors, CPUs, processors were very old, used and appeared to be in unusable condition. Read more here.

Canadian Pavilion at Agricultural Technologies Fair in India, December 3-6

(Canada-Asia News – Foreign Affairs and International Trade Canada)

Canadian companies in the agriculture and agri-food business are invited to participate in the Canadian pavilion at Agro Tech 2010, India’s biennial agricultural technologies fair, in Chandigarh, December 3-6, 2010. The theme for this year’s event is Sustainable Agriculture aiming to integrate technological advancements, environmental and ecological stewardship and sharing technical knowledge with the farming community. The show will focus on processed food, post harvesting equipment, animal genetics and value-added technologies.

Govt Unveils Stiff Rules for Telecom Equipment Imports

(Economic Times)

The government on Wednesday laid down stringent norms for telcos sourcing equipment from foreign manufacturers to address security concerns over gear. Penalties of 100% of the contract value will be imposed on mobile phone operators if any spyware or malware is found in their imported equipment, the Centre announced.

International telecom gear makers keen to do business in India will have to deposit source codes and detailed design of all products and services they sell here into an escrow account in encrypted form. This can be accessed by security agencies and operators in case of an emergency.

The new rules will be incorporated into the licence agreements of all telecom companies with immediate effect. The new norms were issued after security agencies and the home ministry had raised concerns regarding imported telecom gear, especially those sourced from Chinese companies.

Since February 10, the government has not cleared over 450 equipment orders worth close to $3 billion placed with Chinese vendors citing security concerns, slowing down the expansion plans of all operators. The new norms will also enable telcos to place orders for 3G networks following the recent allocation of 3G bandwidth to successful bidders via an auction process. Read more here.

Emerging Economies Make Their Presence Felt

(International Freighting Weekly – Kizzi Nkwocha)

Shift in global economic power could impact supply chains

The rapid growth of emerging economies may lead to a long-term shift in global economic power – and that could affect how freight flows around the world, according to a new report.

Perspectives on Global Development: Shifting Wealth, published by the Organisation for Economic Co-Operation and Development (OECD), says the aggregate economic weight of developing and emerging economies should surpass that of the countries that currently make up the advanced world (the U.S., Europe, etc) within the next two decades.

The study says developing countries share of the world’s total economic power has risen from 40% of in 2000 to 49% today – and will be 57% by 2030. The OECD says that, due to their rapid growth and sheer size, India and China will remain the key influencers of macroeconomic variables that matter for poor countries – interest rates, the price of raw materials and wage levels for low-skill jobs – and will continue to have major impacts on global trading and investment patterns. Read more here.

‘Doha Round’s Success Depends on India, China’

(Press Trust of India – Lalit K Jha)

Alleging that some key global players were acting as a roadblock in international trade negotiations, a top U.S. trade official said on Wednesday that the success or failure of the Doha Round depends on countries like India, China and Brazil.

“Today, the key roadblock is the continued resistance of some important partners to engage in sustained, meaningful negotiations,” said U.S. Deputy Trade Representative Demetrois Marantis during his speech at the 25th annual World Trade Day in Rhode Island. “The success or failure of the Doha Round depends on whether advanced developing countries like China, India and Brazil accept the responsibility that comes along with their growing roles in the global economy,” he said.

The Obama administration is gearing up to host the Asia Pacific Economic Cooperation (APEC) forum in 2011

Canadian International Council GPS Report Supports Expansion of Pacific Gateway, New Approach to China

(Canada-Asia News Service)

The Canadian International Council has released a report, Open Canada: A Global Positioning Strategy for a Networked Age, which offers a vision of a Canadian role in a world where power is shifting and pressing international issues present serious challenges to the status quo. A chapter focused on Canada’s relations with Asia examines the encumbered execution that continually hampers Canada’s ability to punch above (or even equivalent to) its weight in Asia.

The rise of Asia, particularly China and India, is identified as a key ‘game changer’ of the global economic and governance landscape. The report outlines recommendations for Canada to advance its relationship with these strategic partners including: the need to expand the Pacific Gateway strategy to encourage Chinese and Indian companies to locate their headquarters and distribution centers in BC, effectively turning Vancouver into North America’s premier Asian business hub; and to build an Economic Bridge Agreement with China that includes a strong human connection component, including promoting the first-ever dual-citizenship arrangement with China.

Yuen Pau Woo, President and CEO of the Asia Pacific Foundation of Canada, was a panel member of a small group that acted as the advisory committee for the global positioning strategy project. The full report can be accessed t here.

India Opposes Carbon Tax On Imports

(WSJ-Livemint.com)

India has opposed suggestions that countries that have cap-and-trade schemes to control carbon emissions—mostly developed countries—impose a carbon tax on imports from nations that don’t have such measures in place, made at the ongoing global climate talks in Bonn.

“The matter of any unilateral trade measure on imports in the name of climate action raises some concerns regarding the success of our discussions,” Vijay Sharma, secretary, ministry of environment and forests, said in his intervention on Tuesday.

“Such measures would only be tantamount to green protectionism and may burden the affected countries, particularly the developing countries, by subjecting them to similar mitigation obligations as of developed countries without any financial support,” Sharma said.

Developed and developing nations have been locked in a pitched battle over sharing the burden of reducing global carbon emissions, which scientists believe lead to global warming. Read more here.

Trade Can’t Be Fair for Everybody

(Wall Street Journal Blog – John W. Miller)

Trade deals involve giving up one interest for another more valuable.

Since 2007, the European Union and India have been working on an agreement that would cut most import tariffs. EU trade commissioner Karel De Gucht says it should be completed by the end of the year.

One of the EU’s biggest interests in all trade talks is pharmaceuticals. EU exports to non-European countries rose to $110.8 billion in 2009, making it the EU’s fourth-best export, after nuclear parts and machinery, electrical equipment and electronics, and vehicles. However, exports of EU pharmaceuticals to India, the world’s second-most populous country, were worth only $481.3 million last year. That’s partly because India is home to a multibillion-dollar pharmaceutical industry of its own, and because it’s much harder to renew drug patents in India. Read more here.

India Proposes to Revive Quantitative Restrictions on Imports

(Economic Times)

Nine years after being forced to remove quantitative restrictions on imports under WTO, India proposes to bring changes in the domestic law enabling it to protect its industries against import surges.

The Standing Committee of Parliament has more or less approved a provision in a bill to amend the Foreign Trade (Development and Regulation) Act. The committee was informed by the Commerce Ministry that the quantitative restrictions (QR) provisions are available to all members of the World Trade Organisation (WTO). For availing this facility, the country is required to have an enabling domestic law.

India had to remove QRs on over 700 items in 2001 after it lost a case in WTO against the U.S. which had challenged these restrictions on import of large number of industrial and agricultural items. Read more here.

India’s Infrastructure Plans: Dreams or Reality?

(Export Development Canada – Peter G. Hall)

Explosive growth became the norm for India in the global economy’s boom years, and few pundits disagree that long run growth potential is better here than anywhere else. India’s prowess was tested in the global recession, but the subcontinent has rebounded handily. Its sights are now trained on longer term growth in an ambitious new 5-year plan. Will India achieve its high-growth objectives?

Worries escalated as India’s growth slowed substantially in late 2008, but they were short-lived. By the third quarter of 2009, growth was back to the 8% level. Growth slowed again in the dying months of 2009, but details show that strong underlying growth was hampered by temporary contractions in agricultural production and government spending. Why the resilience? India has below-average export exposure, and monetary policy was very responsive to the downturn. But the key reason is likely India’s pre-recession stimulus plan: its heavy ongoing investment in public infrastructure.

Policymakers in India are keenly aware that poor infrastructure is a key growth inhibitor, and as a result, attention has been paid to infrastructure spending in most of the more recent 5-year plans. The current plan earmarked US $500 billion for various projects, from telecommunications to energy and transportation systems. India has been increasingly looking for private sector participation, with the targeted private component moving from 25% in the 10th plan to 36% in the current plan. Read more here.

India-U.S. Financial and Economic Partnership Launched

(RTT News)

India and the United States have launched a bilateral economic and financial partnership that largely focuses on micro-finance, infrastructure and financial sector reforms. The partnership, launched by visiting U.S. Treasury Secretary Timothy Geithner and his Indian counterpart Pranab Mukherjee in New Delhi on Tuesday, aims at increasing trade and investment and create more job opportunities in both countries.

India asked U.S. investors to participate in its $600 billion infrastructure program in the next five years, while America sought greater financial cooperation with India for bringing about global economic stability.

U.S. argues that more open Indian markets would help make it easier and cheaper for India to access capital, which in turn could help finance the country’s growing infrastructure needs. Read more here.

Containers Pile Up as Lines Skip India on Way to Europe

(International Freighting Weekly – Gavin van Marle, Lloyd’s List)

Shippers suffer as box carriers seek higher returns from Asia

Indian exporters and western apparel retailers are facing a congestion nightmare as containers pile up at India’s ports and container shipping lines operating out of Asia give the country a wide berth en route to Europe.

Grant Liddell, key account director at leading UK logistics provider Uniserve, said trade out of India was prone to severe delays. “It is exactly like the situation was out of China in November, when it was really difficult to get space on vessels to Europe and air freight was also suffering massive congestion,” he said. “Once again we are seeing congestion of the two combining, following the reduction of capacity by both shipping lines and airlines.”

Western India Shippers’ Association vice-president K Venkatesh said the situation was likely to get worse before it gets better. “At a conservative estimate, there are between 20,000 and 35,000 boxes lying around India at the moment, especially in the arc between Nhava Sheva and Tuticorin, and the lines have not so far been able to clear this backlog,” Read more here.

Canadian Industry Wants India to Expedite Trade Agreement

(LiveMint.com)

The Canadian government is putting pressure on India to fast-track a bilateral trade deal at a time when both countries are negotiating a nuclear deal. A Canadian business delegation headed by two former ministers is in the country seeking support of the local business community for a comprehensive economic partnership agreement (CEPA) with India.

The delegation is openly critical of the Indian government’s attitude towards the trade deal. John Manley, president and chief executive of the Canadian Council of Chief Executives, said they have received lukewarm response from India so far. “When we started talks with the Indian government about Cepa, we took the view that the benefits of free trade are so obvious that it is unnecessary to engage in a study. But [the] Indian government, on its part, wanted to have such a joint study,” he said. “We presented our papers towards completion of the study. We had set the target of May; it is almost April and there is no response.”

However, a commerce ministry official involved in the process said both the sides have exchanged chapters. He also said he was surprised at the impatience shown by the Canadian delegation.

Joseph Caron, Canada’s ambassador to India, said the impatience of the Canadian delegation is because it wants to maintain a positive momentum in the relationship between the two countries. “There is a very positive dynamics between the two countries at present. These things do not last forever,” he said. “We want to keep pushing this [CEPA] as much to the top of the agenda as we can.” Caron added that Canada wants the joint study report to be concluded at least prior to Prime Minister Manmohan Singh’s visit to Canada in June for a meeting of the Group of Twenty major economies (G-20). “Then we can get on the negotiating track,” he said.

Bilateral merchandise trade between India and Canada stood at $3.8 billion (around Rs17,100 crore) in 2008-09 and is growing at 17.7% every year. Read more here.

U.S., India Ink Deal to Tap ‘Limitless’ Trade Potential

(Industry Week – Agence France-Presse)

The United States and India launched a new blitz to boost economic, trade and financial cooperation on March 17. They signed a framework for cooperation on trade and investment to build on trade growth, which has more than doubled in the last five years.

“There is almost limitless potential for growth in trade between our two countries, and that can contribute to economic recovery and job creation in the United States and continued economic growth in India,” said Ron Kirk, the top U.S. trade official. “We can realize that potential by working together toward the goals set forth in the framework agreement,” by encourage technological innovation, increasing agriculture, services, and industrial goods and boosting investment flows, he said.

Kirk, the U.S. Trade Representative, inked the trade and investment pact with Indian minister of commerce and industry Anand Sharma.

The “numerous synergies linking the economies have not been tapped fully as yet, he said, adding that the pact could “create the right environment to ensure that the relationship brings maximum benefit to the maximum number of people.” Read more here.

Free Trade with India Gets a Boost

(Embassy – Laura Payton)

It may have taken him almost four years to set foot in India, but Prime Minister Stephen Harper leaves today having bolstered Canada's image in the Asian giant and with promises to start moving ahead on comprehensive trade talks.

However, a highly anticipated nuclear co-operation agreement – which some speculated would be finalized during the prime minister's visit following the weekend's Asia-Pacific Economic Co-operation meeting – remains elusive.

Yesterday, Mr. Harper and Indian Prime Minister Manmohan Singh oversaw the signing of two memoranda of understanding.

The first establishes a joint study group that will start working toward a comprehensive economic partnership agreement – the same advanced free trade-style agreement currently being negotiated between Canada and the European Union. It will encompass not just free trade but movement of labour and services as well.

Last year, business executives from both countries called on their respective governments to undertake free trade talks. In a statement yesterday, the Canadian Council of Chief Executives – which has led earlier calls on the issue – praised the decision to move forward.

"Today's establishment of the Joint Study Group sends a clear signal that our two countries are committed to an ambitious agenda of economic co-operation," said CCCE chief Thomas D'Aquino.

Peter Sutherland, a former Canadian high commissioner in India and deputy vice-chair of the Canada-India Business Council, says any step in the direction of a free trade agreement is progress, and that it underscores the interest and resolve of both governments to expand bilateral trade and investment. Read more here.

Canada, India Sign Agreements to Boost Energy, Economic Ties

(Bloomberg)

Canada and India signed agreements to enhance cooperation in energy and examine a free trade pact to boost economic ties between the two nations.

The accords were signed following talks between Canadian Prime Minister Stephen Harper and his Indian counterpart Manmohan Singh in New Delhi today.

India, which this year signed free trade pacts with the Association of Southeast Asian Nations and South Korea, is forging new alliances to diversify its export markets. The U.S., Europe and Japan account for 60 percent of India’s merchandise exports. Harper and Singh said they hope to increase bilateral trade to $15 billion a year within the next five years from about $5 billion now. Read more here.

Harper Promotes Trade Links to India

(CBC News)

Prime Minister Stephen Harper pitched Canada as a potential sales partner to business leaders in India on Monday, the first day of his whirlwind three-day tour of the South Asian economic powerhouse.

Harper told an audience of Indian business investors at a hotel in Mumbai that the combined GDP of the two countries is on its way to $4 trillion, and yet two-way trade is just $5 billion.

That represents a lot of untapped business potential, he said.

Harper’s efforts to strengthen economic ties with India are a recognition of India’s rising importance as one of the world’s fast-growing economies.

“The South Asian tiger has awoken and the world is standing in awe,” he told the business leaders. Read more here.

PM Departs for Asia with Ambitious Agenda

(David Akin — Canwest News Service)

Prime Minister Stephen Harper travels Thursday to Asia for a weekend summit in Singapore of Pacific Rim nations, followed by three days next week in India, a trip that Canadian officials hope leads to “a brand new era of partnership” with the world’s largest democracy.

It will be Harper’s first trip to India and his office has a jam-packed dawn-to-dusk itinerary that includes political, commercial, cultural and spiritual events. […]

“This is a very ambitious agenda for India,” said Dimitri Soudas, Harper’s chief spokesman. “There is a tremendous amount of untapped potential to the Canada-India relationship.”

A key focus for the trip will be improved trade relations with India, a country of 1.2 billion people whose economy is rapidly expanding despite the recession. Two-way trade between the two countries is tiny, at just $2 billion a year, but officials in both countries believe the time is right to increase that amount. Read more here.