Sharma who was in China to attend the eighth Joint Economic Group dialogue urged the host country to remove tariff and non-tariff barriers on import of Indian rice, fruits and vegetables. He also requested to facilitate landing rights for Indian TV channels in China, and the import of more Indian films.

Sharma informed that New Delhi had doubled its foreign workers visa quota to 40, a decision that likely to help more Chinese firms than any other. However, the number of immigrant workers is still not allowed to exceed more than one percent of the total number of workers employed in any project. While China’s Commerce Minister Chen Demin reciprocated by saying that Indian workers would also get visas on liberal basis.

During the meet, Wen showed keen interest in improving bilateral ties with India and said that only if India and China shared common development platform that they could translate this century into an Asian one. Similarly, Sharma said the time for exclusivity in the international governance structure was over; and both nations would have to be at the front of a new global governance architecture.

After meeting several Chinese leaders, Sharma claimed the meet was very positive and substantive as it covered every component of the bilateral ties. He said that he received assurance from Beijing to encourage the Indian firms in the information technology, pharmaceutical and construction sectors to work with local partners to have ‘more presence and access’ in China.

In 2008–09, China exports to India stood at about $27bn while India’s remained around $11bn. China and India plan to take advantage of its vast consumer base of about 2.5bn people which could be larger than any bloc or region excluded of these two nations.

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The $50mn solar photovoltaic (PV) plant that has been built and operated by solar firm Enviromena generates 10MW of clean energy for the Abu Dhabi municipal grid, and makes carbon savings of around 15,000 tons per year. The plant that got linked to the main grid in June comprises of 87,777 photovoltaic modules covering an area of about 23 hectares. It is expected to produce 17,500 MW of electricity per annum, enough to power some 8000 homes.

But the latest dust clouds that screened direct sunlight on to the PV panels are causing serious problems to the ambitious plant. The PV panels, thin-film variety supplied by the US-based First Solar and crystalline panels made by Suntech of China were able to produce just 60 percent of energy efficiently.

Though such snags were included during the feasibility study before installation of the plant, the dust formation in the atmosphere is said to have exceeded 10 times more than the normal dust build ups of the region. However, Director of Masdar, Khaled Awad said the plant’s panels had been cleaned up and output had become normal.

According to Masdar, it is looking at various options to overcome this barrier by installing automated cleaning devices and PV panel coatings, which will either eliminate or minimise dust settling on the panel surfaces. Solar power generation from the UAE is projected to produce 7 percent renewable energy target by 2020, perhaps, outdo the US and European targets by next decade or so.

Nevertheless, the plant authorities confirmed that the setback would not hamper the future of the solar power generation of the country. The Masdar plant is one of the most cost-efficient PV installations in the world in terms of its projected power output.

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India in January even had banned Chinese toys on the grounds that they contained toxic lead paints and flawed designs. Commerce and Industry Minister of India, Anand Sharma informed the parliament that the country had however lifted the ban two months later on the condition of permitting products those maintained WTO standards as India complied with WTO rules.

During the same parliamentary session, the state minister for commerce of India, Jyotiraditya Scindia said that Indian Embassy in China is in constant touch with the authorities to resolve this issue. The ban on milk and milk products, including chocolate from China will be effective till December 24 this year.

Nonetheless, China purportedly as a retaliatory measure has informed New Delhi that its food and safety organization, GAQSIQ had encountered food safety problems in imported food products like seafood and sesame oil from India. China further clarified its stand that if India insisted on extending the ban on milk and milk products till the end of the year, it would be forced to respond to the quality of the Indian food imports too.

In 2008-09 fiscal, India-China bilateral trade has witnessed a significant jump of about $51bn from its previous year’s $38bn. China has become the largest trading partner of India in 2008-09 by replacing the US. But if China sets for a trade war with India by imposing restrictions on Indian imports as well, the growth in two-way trade is likely be in for drastic decline.

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It should be recalled that China, the largest investor with about $1 trillion in the US treasuries has begun trial trade in its own currency since this month with its trading partners to cut down its losses in international trade. On sixth of this month, three Shanghai companies became the first to conduct cross-border trades with yuan/renminbi. The new Chinese rule allows using yuan instead of USD to settle trade accounts with merchants in Hong Kong and Southeast Asian countries on trial basis.

Though Geithner during his visit to China last month gave assurance on the safety on its investments, China did not seem to be convinced by the economic developments in the US lately. Nonetheless, Geithner during his Middle East visit is likely to stick on to Obama administration’s commitment to protect the value of the dollar and maintaining investor confidence in the US financial system.

Geithner is scheduled to hold high-level meetings on Tuesday and Wednesday with top government officials and leading business executives in Saudi Arabia and the UAE before leaving to visit Britain and France with similar goals. According to sources, Geithner is also expected to apprise the leaders of the US administration’s plans to bring down the deficit the moment the economy starts looking up.

However, it is not known how Geithner would defend the talks over the second economic stimulus package and the rising figures of the federal budget deficit for this fiscal year to nearly $1 trillion. Last week, one of Obama’s top allies in Congress had said that the lawmakers must be open for additional stimulus to overcome the economic uncertainties prevailing in the nation if the injection of $787bn to the economy in February was not providing desired results.

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The European initiative has to be envisaged of its strong ambition to counter climate change goals such as, the reduction of CO2 emissions not only for Europe but also for other parts of the world. The new initiative is expected to provide 15 percent of the energy needs of Europe in a decade from the time it starts producing energy, and is likely to act as an alternative energy option to the Russian supplies which currently top the European needs.

The new concept of generating and transmitting of solar power called Desertec was developed by a network of scientists and politicians of the Trans-Mediterranean Renewable Energy Cooperation (TREC). The founding meeting of the Desertec Industrial Initiative (DII) will be held on July 13, 2009 by invitation from Munich Re and the Desertec Foundation. The major objective of DII would be to provide clean, safe and cost effective energy to the global needs.

Gloser stated the Desertec solar energy plants could produce 20 giga watts of concentrated solar power (CSP), equivalent to that of 20 large conventional power plants once it was fully operational. The Desertec project would be employing a technology that uses mirrors to harness the sun’s rays to produce steam and drive turbines to produce electricity rather than an array of high-tech photovoltaic cells. The Desertec Foundation claims that in just 6 hours, deserts receive more energy from the sun than humankind consumes within a year.

According to German reinsurer Munich Re which is heading the Desertec consortium, the project involves about 20 firms including Siemens, Deutsche Bank, and energy companies like RWE and E.ON. The project would be largely funded through private investments, and the complete details on the companies and their stakes would be available only after the upcoming meeting.

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Kroll is the world’s leading risk consulting company which provides a broad range of investigative, intelligence, financial, security and technology services to help clients reduce risks, solve problems and capitalize on opportunities. The firm in its report has drawn data from Transparency International, the global coalition against corruption to corroborate its findings on global stimulus fund distribution process.

Transparency International has reported that the economic crises had given rise to a new wave of corruption through the current stimulus program. The corruption can raise procurement contract costs by at least 10 percent in a stable economy – an equivalent of $500bn in corrupt gains – but in emergency situations these costs could rise up to as high as 30 percent of the overall cost of the $5 trillion contract. The report comes hot on heels to FBI director Robert Mueller’s call to brace for potential crime wave involving fraud and corruption related to bank bailout money and the economic stimulus package.

Richard Abbey, MD in Kroll’s Financial Investigations practice stated all crimes needed motive, means and opportunity and in the current economic environment, it provided all the three. He further added that the huge pledged sum by governments across the world had lured fraudsters to grab the life-time opportunity to make easy money.

Blake Coppotelli, senior managing director in Kroll’s Business Intelligence and Investigations suggested that the governmental agencies which oversee the distribution of these funds should enforce robust anti-corruption policies or look for independent experts to supplement their efforts. He further clarified by saying that the nature of the projects – large sums of investment coupled with complex procurement processes have created a perfect setting for fraudsters to cash in on.

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The proposal broadly aims at managing grain reserves and prices; and also to improve necessary infrastructure including developing rail network and port capacity through creation of a pool. The Ukrainian Agriculture Policy Minister Yuriy Melnik and the Kazakh Deputy Agriculture Minister Arman Yevniyev welcomed Russia’s proposal during the first such forum.

The US has already come out with a statement saying a cartel in the line of OPEC would only delay Russia’s decade-old ambition of joining the 153-member WTO. Michael Michener from the US Department of Agriculture said Russia the third largest wheat exporter was jeopardizing its chances of becoming the WTO member since such a formation is against the WTO guidelines.

Russia is planning to bring more land under grain cultivation in the coming years as they have 10 percent of world’s arable land that has turned fallow after the collapse of the former Soviet Union. Russia has millions of hectares of chernozem (black earth), an ideal soil for agricultural purposes which are formed by partially decomposed organic matter.

If the new grain union takes shape, it would become the largest exporter and producer of global grain market. In the next 10 to 15 years, Russia plans to produce up to 135mn tons of wheat annually and export 40 to 50mn tons of it, Skrynnik later added. Last year’s bumper harvest made Russia the fourth largest grain producer in the world.

While food prices skyrocketed, Medvedev first proposed such an idea last July to augment food security. It should be noted that a report from London-based think-tank Chatham House early this year stated the climate change, water scarcity and competition for land would make it hard to meet an expected 50 percent rise in demand for food by 2030. Deputy Prime Minister Viktor Zubkov told that some of Russia’s 9.6mn tons of grain stockpiles would be set aside to provide humanitarian aid through the UN World Food Program to countries facing starvation as the fallout of global economic crises.

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Apart from the UAE, Saudi Arabia and Bahrain are also seemed to have impressed by livestock farming opportunities in Thailand. The southern provinces, the Andaman region of Thailand have been chosen for the proposed mega livestock farms.

The climatic conditions and geographic placing of Thailand are claimed to be the most suited in Southern Asia for livestock production and paddy cultivation. However, the UAE’s interest in rice production would not be possible due to shortage in suitable lands.

The UAE already has ambitious plans to establish agricultural production centres in Sudan and Pakistan. The Abu Dhabi Fund for Development aims to develop 70,000 acres of land for food production in Sudan alone.

Similarly, Saudi Arabia has also invested in overseas agricultural farms including Pakistan to ward off any potential food shortage threat like that which confronted the globe last year. The desert nations are showing keen interest in developing agricultural and livestock farms outside their region since engaging in similar activities in the region would require manifold expenditure, and also not sure of the results.

To cater to the burgeoning Middle East market, Thailand has made several plans for investing in the production of halal meat and dairy products in countries such as, Pakistan and Bangladesh. According to Thai government sources, Charoen Pokpand Foods, the largest agri-business firm of the country is preparing to develop mega livestock farms in Russia as part of its expansion plans to fulfil its export shortfalls.

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Export based economy of Japan has been devastated recently by the global economic crisis. The Japan’s exports dropped by 50 percent triggering a 5.4 percent plunge in its GDP due to falling demand for its merchandise from the US and the EU, its major trade partners.

During the meet, Iran invited Japan to set up branches of their banks in Iran, and apprised of the opportunities in fields such as, marine transportation system, oil projects, and construction of marine structures. Another major area of investment brought to the notice by Iran was national railway network project including construction of railroads for express trains and other related projects.

Currently, Japan is the third largest importer of Iran’s industrial and mining products, and about 22 percent of its total oil output is exported to Japan. The two-way trade between both countries is about $20bn in 2008.

With renewed ties, Iran is expecting to triple the trade volume in the coming years through increased economic participation by Japan. Iran’s non-oil exports to Japan include carpets, pistachios and dry fruits.

After concluding the Tokyo visit, Nahavandian informed he had assurances by several Japanese authorities including Japan’s MP, Kotaro Tamura that a Japanese delegation would soon visit the country to review the trade possibilities in Iran. Tamura is one of the strong supporters in fostering better ties with Iran that extend to all spheres of bilateral co-operation. Iran’s anti-American stance and Japan’s US ally status often vexed the relations between both countries for the past several decades.

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1. As a rule of thumb, it is inevitable that one should become a free member of any B2B portal and should understand the features as well as the functionalities of these portals, before upgrading one’s membership.

2. B2Bs basically are based on ‘Trade Leads’. Trade Lead is an explanation of one’s product or service, perhaps with an image, extended to the market with an intention of buying or selling. Therefore, it is recommended to assure the relevant Trade Lead is available in the database of the portal, which one is desirous to be a premium member.

3. While signing up as a free member, one’s company profile should be with below details:

a) The criterion one selects should be correct. For example, if one is an exporter and selects an importer criterion, one’s profile will be in the importer section and therefore, when an importer searches for a related exporter, one’s profile cannot be seen by the importer since it is in not in the appropriate list. Hence, one cannot be contacted to do business.
b) Make sure that contact information provided is accurate.
c) The company description should be condensed and should have all the details pertaining to one’s business interest.
d) One should choose the appropriate sector/s painstakingly, to insure one’s company and Trade Lead to be listed in the relevant sector/s. Further same accuracy should be shown, if the portal has provided with sub-sectors.
e) Authenticity of the firm is enhanced by providing all the details including awards received, rating certification, etc.

4. It is ideal to ascertain the presence of related businesses in the database of the portal of your interest, to avoid any disappointment in generating business inquiries or even to make a contact. Suppose one wants to proceed even after not able to find related businesses, one should verify the business prospects by directly contacting the portal personnel.

5. Another important factor is one should make sure the portal is user-friendly. If it is not user-friendly, it is most unlikely to produce favorable results.

6. Insure the authenticity of contact address of the portal to avoid any fraud. Secured payment modes should be emphasized while making payments.

7. Top B2Bs will have interactive tools including Live Chat, Toll Free numbers, etc.; try to interact with these tools to guarantee that these functions are not mere decorations.

8. Check whether all the features are up to date.

9. Besides, the list of Trade Leads, Exporters, Importers; it would be ideal to go for a B2B which has lists of Transporters and International Services as well. Such a compilation can further minimize one’s endeavor in obtaining business.

10. It will be an added advantage if one looks for B2Bs which have collaborations with famous international organizations too.

In addition, it is highly recommended to utilize all the available features of the B2Bs to get best results.

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Even after the cognizance of the success of one’s competitor, still indecisively sitting on the fence and thinking whether one should induct the services of B2Bs in one’s business, would be suicidal for oneself or any trader. Traders’ outdated methods of depending on their own old networks will not only wipe out existing market share, perhaps even one’s company from the international markets.

Statistics show that business from B2Bs has seen significant growth in the past five years. Apart from the fact that e-commerce has changed the way international business is done, interest in online services also increased dramatically owing to ease of doing business.

Usually, a new user has a tendency to avoid adapting to new methods of doing things and more so to a thing which is related to technology that initially appears to be complicated, time consuming and expensive. This is just a misconception of the small businessman, but in reality, online based businesses reduce one’s cost and time considerably. Although large international traders are using B2B services effectively, these portals in totality have helped small and medium enterprises to a great extent.

If the reluctance to B2Bs is just related to its usage, it is suggested that it would not take more than two hours to learn the functions and utilities of any leading B2Bs even to a novice of internet. Still a trader finds it difficult to imbibe the concept by oneself; it is recommended to employ a relevant staffer who has basic knowledge of computers and internet.

A staffer with relevant qualification would not cost much either. Either one’s staffer or oneself can create a profile in leading B2Bs and get going with business, either as a free member or a premium one. In the premium membership, one can avail of all the fascinating features including description of one’s company, products and/or services, a mini website (sub-domain), etc. Such a company profile in any leading B2Bs can become a multi-pronged marketing tool of one’s business in no time.

If one is worried about the authenticity of the business from B2Bs, it is suggested that with proper planning and research into these portals, before joining any premium membership, could avoid any future disappointments. Though it is cost effective and fast in enhancing one’s business, it goes without saying that one has to employ all the parameters which one uses in one’s usual business to avoid any fraud.

Every business pattern will have its own merits and demerits, though B2Bs are with lower risks, it is highly recommended to take the services of the right portal to generate trade inquiries and thereafter profits through this process. To conclude, a trader would be familiar with other traders’ claims of doing business and instant success through B2Bs, but if it is not happening for oneself, one should be patient and should try to be active with one’s profile.

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Globalization in its early years, in-fact, brought different cultures to converge at one point, but at the same time, disintegrated small communities due to greater opportunities away from their homes as well as their own communities. Unfortunately, though the opportunities gave them more material comforts, they were literally isolated from their loved ones in the name of better opportunities. The emergence of SNS gave these people a platform to share their feelings instantly. In no time, these sites became a major hang out for the young, and today even it is appealing to the older generation.

As it is common to any business to target those areas where people meet for fun and entertainment, the SNS too became a virtual battle ground for businesses to enhance their customer base. Especially, small and medium businesses extensively used this platform not only to increase the traffic to their sites but also as a cost-effective tool to market their products or services. The speed in which these SNS thrived gave birth to the fast emerging concept Business Networking Sites (BNS). And these sites have caught the imagination of most companies to utilize the services as part of their social media marketing.

Besides being a database of corporate contacts, BNS have served as essential tools for making a company known to the world with their workforce’s contacts. Nevertheless, most businesses have not so far directly included these media as part of their marketing strategy. Most companies have even denied access to SNS by their staff; the reason cited for this is, job allotted to them was largely neglected owing to increased straying into these areas. But some companies have tentatively allocated some stipulated time to access these sites for propagating their companies’ products or services.

There are plenty of websites mushrooming across World Wide Web besides BNS and SNS including Book-Marking Sites. Each one is vying with one another to integrate the popular features of each concept. And coming years will decide the future course of many popular such sites as to what entity they exist in the e-arena. In future, even terms to segregate these sites may become irrelevant. Industry observers as well as service providers believe, once winners among these sites are well defined, businesses would start extensively using this medium as the primary tool of their marketing strategy.

Instead of spending a large sum of money for advertising through other media, companies are bound to seek the services of Universal Networking Sites (UNS) with or without extra cost. Experts believe that these sites can deliver goods in minimum time with higher productivity. The UNS with comprehensive features of SNS, BNS, etc., will be the next big thing which would attract people from all walks of lives including students, home-makers, businessmen, etc.

Since online public is growing faster as expected, the sites with combined solutions such as socializing, book-marking, job-searching, etc. will soon become an advertising center for all businesses across the world. The UNS is likely to become a cost-effective tool for marketing one’s company’s products or/and services.

UNS also promise good revenue for the service providers through advertisements as compared to the independent services provided by them. Hence, online world could expect popular as well as new service providers to compete one another in adding mind-boggling features to their forthcoming UNS version of their respective service sites.

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A free trade deal with ASEAN member states has strategic importance to India since the country exports 12 percent to these states and imports 10 percent. The FTA is expected to increase the trade from the current $40bn to $50bn by next year.

Indian officials said that there were plans to even sign the India-South Korea Comprehensive Economic Partnership Agreement (CEPA) along with the ASEAN FTA. The South Korean representatives are expected to attend the upcoming summit to engage in talks with the ASEAN members as well as concluding the formalities on CEPA with India.

Both trade deals require Indian cabinet approval, and would be the first such approval by the United Progressive Alliance after returning to power consecutively for the second time. The FTA had earlier missed the April date due to parliamentary elections in India.

The talks between India and ASEAN were stalled several times as the association insisted on cuts in tariff twice a year. But in the recent talks, India was able to convince the ASEAN members on duty cuts once in twelve months, and the same will be reviewed every January. As per the deal, duty to be cut for the highly sensitive products including tea, coffee, pepper, crude and refined palm oil is between 30 and 45 percent by Dec 31, 2019.

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The US action comes after the EU re-introduced its export subsidy program in early this year. Many industry observers felt these moves would only trigger more protectionist measures from countries those are affected by this action. Though these declared subsidies are within the WTO limits there would be political pressure within the affected countries to retaliate and prompt them to reverse their decision.

Trade Minister Simon Crean and Agriculture Minister Tony Burke of Australia in a joint statement said that they would try to garner support from other countries to pressurize the US to reverse its decision at the Cairns Group Ministerial meeting in Bali in early next month. The Cairns Group is a coalition of 19 agricultural exporting nations which account for over 25 percent of the global agricultural exports that aims to liberalise trade in the respective sector.

New Zealand Trade Minister Tim Groser said dairy farmers the world over were under pressure, but the US move was a short-sighted response while the international dairy market had recently been showing signs of stabilising. New Zealand is the largest dairy merchandise export earner and second largest meat export earner with nearly 24 and 12 percent share respectively in total goods exported. The price advantage enjoyed by New Zealand dairy products will get diluted in the global market with the re-introduction of US handout to its dairy exports.

Nonetheless, the president of the Australian National Farmers’ Federation (NFF) David Crombie warned the US handout would only shore up domestic jobs in the short-term but undermines the possibilities of faster global economic recovery. Similarly, Fonterra, the world’s largest dairy exporter echoed the sentiments of the NFF, contending that the US decision had the potential to damage a world dairy market which remained fragile.

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Top trade shows still attract many companies to showcase their products and services, but a majority of small and medium enterprises (SME) have totally resorted to do the same through B2Bs. And this in fact, has reduced unnecessary movement of people and commodities to several such shows resulting in lowering cost of marketing as well as energy to every business entity involved.

Besides, instead of traveling to meet a new client to a foreign land, traders found this new rendezvous in the form of B2B portal. In business development process, after making initial interactions through emails, they sometimes even confirm their business facilities through video-conferencing before inking the deals, and this too is made possible through B2Bs.

According to studies, more than 60% of SME utilize the services of B2Bs directly or indirectly. Though there is a flurry and mushrooming of several B2Bs with claims of providing complete business solutions, leading B2Bs are still largely sought after in the e-commerce arena.

B2Bs are environmentally appealing mainly because of the non-involvement of any kind global warming material being used in the business development process.

. The complete business process except product delivery involves just electronic interaction and transaction.

. Products or services are presented to the client/clients by redirecting them to their respective websites from their B2B profile or through the same profile itself depending upon the B2B package their have opted for.

. Avoids physical presence in all stages of business, and in abstract services even delivery is made electronically.

B2Bs generated huge revenues as compared to other business models engaged in global trade without emitting any harmful green house gases or cutting trees which was otherwise used extensively in paper-based business processes of the past. Perhaps serious concern for the deteriorating health of the environment due to climate change and other related issues have prompted businesses to take a paradigm shift to opt for B2Bs.

Most B2Bs expect bringing in such awareness among traders will also help these portals to grow besides other positive aspects. In addition, these portals hope environmentally conscious traders to market B2B concept to non-users through word of mouth or other means to adopt it as part of ‘save the planet slogan’. Some of the B2Bs provide even international services including transport, go-between and other services, besides the regulars, import and export to put their use into good effect.

Apart from the eco-friendly aspects of these portals there are other attractive reasons for traders to adopt this model such as, negligible cost involved in marketing operations of any given company, user-friendliness and not to mention the speed in delivering goods. Though there are any scales to measure the amount or number of benefits to the environment after the arrival of B2B portals is available, looking into the features as well as the time presence, one is made to believe, they have made a huge positive impact in the eco front. The eco-conscious traders, if they have not started utilizing these services, will certainly adopt this business tool as a medium for their global and even for their domestic trading needs very soon.

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Lula’s proposal seemed to be very genuine since early this year China became the largest trading partner of Brazil by displacing the US. Brazil’s exports to China, which primarily consist of iron ore and soy products, jumped to $5.6bn earlier this year, up from $3.4bn for the same period in 2008. The most significant agreement out of the 13 accords signed by Brazil and China was $10bn loan to Brazil in exchange with up to 200,000 barrels of oil per day for the next decade.

According to sources, Bank of China (BOC), the world’s third largest bank by market value, will open its first branch in Brazil in two or three months, purportedly a quick response to Lula’s call. In September, Brazil and Argentina signed a similar pact under which traders from both countries could trade in local currency with the US dollar as secondary option. The figures from the Brazilian central bank and trade ministry in last month showed, the two Latin American nations traded $22.6mn in local currency out of more than $1.6bn of total trade.

China is promoting the yuan as an international currency after signing 650bn yuan ($95bn) in swap agreements with Argentina, Indonesia, South Korea, Hong Kong, Malaysia and Belarus since December. Though there are many sceptics to the practicality of the idea, Shi Lei, an analyst in Beijing at the nation’s largest foreign-currency exchange said trading yuan or local currency would be a reality with the agreeing nations in a couple of years’ time. The emphasis should be to first start yuan settlement with Hong Kong and build an offshore yuan center to expand channels for yuan use, he added.

China holds $1 trillion investment in the US government debt, the world’s largest such holding, and the country is worried that the US’ ‘spending’ program to counter the recession will weaken the US dollar and eventually devalue the Chinese holdings. This fear has prompted China with the support of likeminded trading partners to minimize over-dependence on the US dollar as the ultimate invoicing currency.

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The projects in the pipeline and in progress range from city trams to heavier freight routes. From the sponsorship line-up including IBM and Sharp during the ongoing MENA Rail 2009 conference in Dubai made it apparent that besides railway companies there are many in the fray vying to have a piece of the mega Gulf railway pie.

Various companies that provide rail-related products and services have opened offices across the Gulf region to utilize business opportunities and market their wares. Invensys, a UK based company that provides industrial automation, rail transportation and controls is one such company that has set up office in Dubai to augment its regional visibility.

Ala Ghanem, the regional director of business development at Invensys opined the Gulf was the most promising region at the moment for railway and related businesses. He acknowledged that there were not only many projects coming up but also were massive ones that no one in this field could afford to sideline.

The foremost project is the first proposed route of 1,970km long running through Kuwait, Saudi Arabia, and Bahrain over Qatar, and crossing the relevant stretches of water by bridge and continuing to UAE and Oman. The second will cover 1,984km from Kuwait to Saudi Arabia before passing through UAE and ending in Oman. The ultimate goal of this project is to link the whole of Middle East with each every country of the region. Once completed it is likely to have 16 lanes and an approximate length of 19,000km.

Other projects such as $4.2bn worth Dubai metro system, Abu Dhabi’s freight rail network, 130km of metro lines and a 340km tram system, 580km of high-speed rail to Al Ain, Dubai and Al Gharbia and Bahrain’s $8.13bn rail line with six lanes stretching 184km are few of those projects attracting many from this field.

According to Unife, a European rail consortium the global market is worth $167bn (Dh608.81bn) a year, and the Middle East and Africa account for just about $5.5bn. Michael Clausecker, the director general of Unife asserted that though it would not be the largest market, but it was one with substantial opportunities and substantial growth potential.
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The US Trade Representative Ron Kirk revealed about the stalemate on the FTA at the sidelines of the inauguration ceremony of the Jacob Zuma presidency. However, he claimed there was still room for growth as South Africa was by far the largest beneficiary of trade under Africa Growth and Opportunity Act (AGOA). He later added that it was possible to think of a new start with the new government at the helm since the US had very good foundation in South Africa with over 600 US business investments in various sectors.

Even though the central reason for the disinterest is not spelled out by the US authorities, the possibilities to this action seemed to be the same old ones. The old demand of the US particularly the intellectual property rights, and protectionist strategy could have checkmated the deal as of now.

South Africa is one of the SACU members that has largely benefitted by the Generalised System of Preferences that allows certain products to enter the US duty-free. South African clothing and selected textile products have duty-free access to the US market through the AGOA, an initiative of the Clinton administration.

According to the Department of Trade and Industry of South Africa, the US is the largest market for its merchandise. On the other hand, South Africa’s third largest imports are from the US.

South Africa’s trade analyst Peter Draper admitted that the US government’s move did not come as a surprise “for a number of reasons”. In his opinion, the failure to clinch FTA with the US is a huge blow to SACU.

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Chile and India has signed a PTA in January 2005 aimed at increasing bilateral trade. There are 144 products as per the 2005 agreement, and two-way trade reached more than $2bn in 2007-08 fiscal. At the moment there are huge trade imbalances in favour of Chile as India was able to export just about $250mn worth of products to Chile. Higher taxes in Chile have put Indian products at a disadvantage but a FTA with Chile could bring the taxes to zero on many products.

Lately, Chile has entered into FTAs with several countries including the US, Canada, Australia, China, Japan, South Korea, and many Latin American and the EU countries. It should be recalled, the continuance of free market policies was one of the election campaign promises of the incumbent center-left President Michelle Bachelet.

A FTA between India and Chile is likely to provide India to look at other countries in the region to engage in similar trade ties in the future. Indo-Chilean FTA was likely to multiply bilateral trade in copper, wine, aquaculture products, processed food and forestry products indicated the Chilean Ambassador.

Navarro also said that the Indian exports to Chile would substantially increase when the deal was through. He was of the opinion the talks between both countries were delayed due to the Indian elections, and he hoped to hold talks by August to add more products to the list and reduce the tariffs.

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Sri Lanka was devastated by terrorism sponsored by the LTTE that demanded separate land carved out of the country for the ethnic Tamil minority of Sri Lanka. The Sinhalese community forms the majority of the population and a large number of them follow Buddhism. Currently, its defence forces are in the final stages of completely wiping out the last bastion of the terror outfit to free the country from the prolonged violence of two decades.

Ravinatha Aryasinha, Sri Lanka’s Ambassador to Belgium, Luxembourg and the European Union (EU) said the re-branding would encourage foreign tourists to look at Sri Lanka with new eyes and enable the country to position itself as a destination second to none. He added the core idea was to change the perception of the travellers from far-away lands that the country has returned to normalcy where everyone could experience its rich culture and beautiful locales peacefully. He also drew attention to the fact that despite the country had to bear the brunt of terrorism Sri Lanka grew by about 6 percent in recent years, and continued to invite steady flow of foreign investments and tourists.

According to sources, Sri Lanka is planning to launch several promotional programs through print and electronic media to tide over its ‘unsafe’ image abroad. At the re-branding function the state-owned Sri Lankan Airlines launched “Buy One, Get One Free” sales theme targeting the European travellers. The tour operators’ primary focus would be to promote Sri Lanka as a safe tourist destination, and thereby remove it from the list of travel advisories by several countries.

Toboc Trade News

But today international trade is at the cross roads, beset with varied issues, including climate change, ever rising prices of essential commodities and energy, etc. And for all the ills emanated from globalization, World Trade Organization (WTO) is pilloried by most critics, as usual without providing viable solution. WTO was persistently blamed for its failure to make suitable changes to the needs of the times. WTO policies delved deep into politically sensitive domestic regulations and delayed the process of striking an early inevitable solution. It has had to withstand the pressures of different internal government differences, protectionism and even, anti-market NGO’s. The initial carrots offered by developed nations, during the early stages of globalization, turned out to be a steroid treatment for rabbit economies which transformed themselves into predators, which gradually devoured the lion share of the market pie. In the process WTO was left high and dry, clueless about its road ahead.

Before losing its core competency, WTO should wake up to the challenges of 21st century to live up to the expectations of its very existence. It has to accept that lopsided trade agreements have no place in the world today since every country can afford and has the intelligence to rope in expert international negotiators for favorable trade agreements. If it could provide ample scope for domestic products and services, to equally succeed in the world business arena, the organization will be able to fulfill its goal.

Preferential Trade Agreements (PTA) or any such are still designed for developed economies, flouting the laws of level playing field. Such deals should address the needs in a partner-specific manner and there by should facilitate the interests of both parties evenly. The pacts signed in a hurry, in future, may have to spend years in courts for implementation, due to domestically ever changing political scenario and other unexpected issues. Accords with complex and discriminatory regulations cannot expedite the process of implementation in present circumstances. Besides, red tapism and high gestational business costs also could be prevented, if proper care is given while signing deals. Businesses engaged in global supply chain, need simple, transparent and non-discriminatory models to derive the best out of tailored pacts.

At this juncture, WTO is with grievous limitations, if repair measures are not made quickly, perhaps it will lose its relevance. Most of the developing countries of Asia and South America have already latched on to the unilateral liberalization programs. China, the unilateral engine of free trade has started this way back in 1990 before joining WTO. Other East and South Asian nations are engaged in replicating China model to supersede the international institution to gain larger clout, and for doing more business. It is high time for a trade policy to be less of a foreign policy, and it should be solely the one which is attached within the framework of domestic economic needs. Therefore, the global trade body must give utmost care to address these needs in subsequent rounds of negotiations to avoid unnecessary stalemate.

Toboc Trade News

The White House formally announced a program under which lenders will voluntarily freeze interest rates for certain homeowners with adjustable-rate loans. This aims to help the home owners to get a chance to hold on to their properties. The government hopes this temporary arrangement will bear the desired result soon. Even though this will make losses on the returns of mortgage-loan investors, many widely believe this is for the good of the overall economy.

The banking and financial institutions too partook in the process of putting the economy back on track by reducing interests. The average rate on 30-year fixed-rate mortgages slipped below 6% this week to the lowest level in two years. The Bank of England reduced its interest from 5.75% to 5.50% and the Federal Reserve is expected to cut at-least by quarter points on the short term rate. The government’s corrective measures to overcome the threat perception of economic recession, is good news for the US as well as the world economy.

Toboc Trade News