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E-TISNET MONTHLY NEWSISSUE  10/2005

October 2005

Welcome to E-TISNET Monthly News to keep you abreast of the latest developments on trade and investment relevant to the Asia-Pacific region. E-TISNET Monthly News is the electronic and user-friendly version of the former TISNET Trade and Investment Information Bulletin.

For enquiries and/or subscriptions, please contact us at escap-tisnet@un.org



A. TRADE-RELATED INFORMATION

AUSTRALIA
Australia seeks FTA with Republic of Korea. Bilaterals, 9 September 2005.
Australia has asked the Republic of Korea to start negotiations for a free trade agreement (FTA) to facilitate growing bilateral trade in raw materials, as well as agricultural and manufactured goods. The Republic of Korea is the fourth most important trading partner of Australia; trade between the two countries was US$10.5 billion in 2004. Australia currently has FTAs with New Zealand, Singapore, Thailand and the United States of America; and is in negotiations with ASEAN, China, Malaysia, and the United Arab Emirates.
Accessed on 12 September < http://www.bilaterals.org/article.php3?id_article=2687 >

BANGLADESH
Pakistan pushes for FTA with Bangladesh. The Daily Star, 14 September 2005.
Bangladesh and Pakistan signed several agreements to promote bilateral trade and investment and set up a joint working group to monitor their progress. Among the agreements are a detailed plan of action to achieve the target of enhancing trade to one billion dollars by 2007, as well as an agreement to enhance flights and establish a direct shipping link between the two countries to strengthen trade and economic relations. Both countries have also agreed to encourage investment in computer software development and IT sector, telecommunications, textiles and jute goods, electronics, light engineering, leather, agro-based industries, agriculture equipment, machinery, tourism, and marble stone.
Accessed on 15 November < http://www.thedailystar.net/2005/09/14/d50914050147.htm >

CHINA
Sino-Russian economic and trade ties to be boosted with increased cooperation. China View, 6 September 2005.
China and the Russian Federation signed four cooperative agreements worth US$ 32 million in the areas of construction materials, timber and fishery. Cars and energy have been identified as further domains for Sino-Russian economic cooperation. Chinese-made cars are attractive to Russian clients for their cheap prices, and the Russian Federation noted that it could provide China with energy products like petroleum, natural gas and electricity.
Accessed on 7 September < http://english.sina.com/business/1/2005/0906/44967.html >

EUROPEAN UNION
EU proposes new aviation talks with Australia, Chile and India. EUBusiness, 5 September 2005.
The European Union has proposed new aviation talks with Australia, Chile and India aimed at further opening their markets and improving regulatory cooperation. The EU has already concluded air traffic rights accords with Australia and Chile, but it plans to go further and is seeking deals on safety cooperation, security, protection of the environment and passengers, as well as harmonising competition rules between airline companies.
Accessed on 6 September < http://www.eubusiness.com/Transport/050905170212.4p4i8dju >

G-20
G-20 calls for end to unfair trade terms: joint declaration. The Dawn, 11 September 2005.
The G-20 ministers’ conference on 9 September 2005 adopted a joint declaration, calling upon developed countries to show flexibility in their standpoint on agriculture issues, which are central to the Doha Development Agenda (DDA). The G-20 ministers emphasized the commitment to conclude the DDA negotiations to eliminate trade-distorting policies in agriculture maintained by developed countries, and to provide for substantial improvement in market access for all products.
Accessed on 12 September < http://www.dawn.com/2005/09/11/top1.htm >

PAKISTAN
Pakistan planning project for better trade with Afghanistan, Central Asian Republics. Daily Times, 14 September 2005.
Pakistan will start working on a Sub-Regional Connectivity and Trade Facilitation Project to expand trade relations with Afghanistan and Central Asian Republics (CARs). The Asian Development Bank will contribute about two thirds to the PRs 27.34 billion project and the National Highways Authority (NHA) will provide the rest. The project includes rehabilitating key national highways that are part of the sub-regional corridor, cross-border infrastructure development, and institutional strengthening of NHA.
Accessed on 15 September < http://www.dailytimes.com.pk/default.asp?page=story_14-9-2005_pg7_8 >

RUSSIAN FEDERATION
Russian, European railways to improve international services. ITAR-TASS News Agency, 3 September 2005.
Railways of the Russian Federation and Europe have agreed to pool their efforts in order to improve the quality of international railway services. Twenty-three railway directors general from 16 countries met for a conference in St. Petersburg on 3 September to discuss joint actions. One of the priorities of the Russian Federation railway is the integration into the Eurasian transport system. This requires the resolution of technical problems and the harmonization of legal acts.
Accessed on 7 September < http://www.itar-tass.com/eng/level2.html?NewsID=2377761&PageNum=0 >

Russian authorities to crack down on pirated products. ITAR-TASS News Agency, 9 September 2005.
The Russian Federation has announced that it would concentrate efforts on eradicating pirated production, whose scope currently questions the country's prospects for joining the World Trade Organization. The revenue derived from sales of pirated CDs in the Russian Federation amounts to dozens of billions of dollars a year. Officials now called for toughening penalties for counterfeiting; extending the period of limitation for this crime, which now only reaches two months; and making amendments to the copyright and licensing regulations.
Accessed on 12 September < http://www.itar-tass.com/eng/level2.html?NewsID=2399794&PageNum=0 >

SOUTH ASIAN FREE TRADE AREA
SAFTA breakthrough after rules of origin agreement. New Age, 19 September 2005.
The seven member countries of the South Asian Free Trade Area have finally reached a consensus on rules of origin criteria. Experts have set the minimum requirement for value addition at 30 per cent for least developed countries — Bangladesh, Bhutan, Nepal and the Maldives — and 40 per cent for developing countries — India, Pakistan and Sri Lanka. The rules will be effective from 1 January 2006. The meeting also identified areas of technical assistance that the developing members will provide the least developed ones to make the free trade area operational.
Accessed on 19 September < http://www.bangladesh-web.com/news/view.php?hidDate=2005-09-19&hidType=TOP&hidRecord=0000000000000000061406 >

SRI LANKA
Sri Lanka Tea Board promoting untapped markets in Eastern Europe. Daily News, 2 September 2005.
The Sri Lanka Tea Board will promote untapped markets in Europe to increase local exports by 10 per cent on a yearly basis. It has already launched a major promotional and trade fair campaign in newly joined EU states, covering Czech Republic, Poland, Slovakia and Ukraine. It will also participate in major forums including a tea testing forum in Germany, which is organized by major tea buyers in Europe.
Accessed on 6 September < http://www.dailynews.lk/2005/09/02/bus02.htm >

VIET NAM
Vietnamese, Lao provinces to increase cooperation. Viet Nam News Agency, 5 September 2005.
The central Quang Binh province of Viet Nam and the central Khammouane province of the Lao People’s Democratic Republic have discussed measures to increase their cooperation with the Nakhon Phanom province of Thailand in using the road system No.12 for regional socio-economic development, highlighting passengers and goods transport services, and goods exchange at common border gates. The two sides also agreed to conduct regular contacts on border security to prevent drug trafficking, smuggling and illegal immigration.
Accessed on 6 September
< http://www.vnagency.com.vn/newsA.asp?LANGUAGE_ID=2&CATEGORY_ID=29&NEWS_ID=165357 >



B. CUSTOMS REGULATIONS AND CHARGES

ASEAN
ASEAN accord on customs ICT up. The Manila Bulletin, 7 September 2005.
Customs authorities from the 10 Member Countries of the Association of Southeast Asian Nations (ASEAN) have agreed to adopt an information and communication technology (ICT) accord to facilitate trade and free flow of information. An advance e-customs strategic plan has been developed by ASEAN to expedite and simplify information among governments and trade participants. With the adoption of ICT by ASEAN members, trade between countries in the region will expand and customs revenues of governments will increase. The development of a sound and transparent legal and regulatory system which meets international standards and promotes investments is also intended.
Accessed on 8 September < http://www.mb.com.ph/BSNS2005090743708.html >

EUROPEAN UNION
EU secures tariff agreement. Business Day, 5 September 2005.
The European Union secured an agreement on tariffs for rice from Thailand. Thailand, the world’s biggest rice exporter, will have a duty-free allowance of 4,313 tons of rice and pay a levy of 175 euros per metric ton on processed ready-to-eat rice, should quantities exceed a historical average or 145 euros a ton for lower volumes. The EU last year cut in half the price it will pay its own rice producers, mainly based in Italy and Spain, as part of changes designed to reduce the trade-distorting effects of its agricultural policy. To cushion the blow to farmers, the EU raised border duties to restrict imports. As a result, the EU, which relies on imports for 40 percent of its rice, was forced by World Trade Organization rules to seek agreements with its biggest rice suppliers, namely India, Pakistan, Thailand and the United States of America.
Accessed on 6 September
< http://www.biz-day.com/read/economy/05_sep_05/dvwjz-9/eu_secures_tariff_agreement.htm >

INDIA
Faster clearance of goods at 33 ports on cards. Economic Times, 6 September 2005.
The Central Board of Excise and Customs will roll out risk management system across 33 customs ports which are under electronic data interchange (EDI) system at the end of September. The customs authorities will focus on examining medium to high risk cargo and let others pass through without much scrutiny. The implementation of the project is to be completed by February 2006. At the same time, the Ministry of Finance has decided to enlarge EDI facilities at more customs ports in the country.
Accessed on 7 September 2005
< http://economictimes.indiatimes.com/articleshow/msid-1221399,curpg-2.cms >

Prime Minister promises tariffs at par with ASEAN levels. Financial Express, 16 September 2005.
The Prime Minister of India has promised to bring down the tariff levels comparable to the levels of ASEAN and other countries in the region. Furthermore, he announced policies in infrastructure in order to increase investment in this high growth sector.
Accessed on 19 September < http://www.financialexpress.com/fe_full_story.php?content_id=102693 >

KAZAKHSTAN
Kazakhstan and Kyrgyzstan establish joint customs terminal. Kazinform, 22 September 2005.
Kazakhstan and Kyrgyzstan met on 22 September to discuss the establishment of a joint customs terminal. After the end of constructions Kazakhstan and Kyrgyzstan customs officials will carry out the common control, allowing reducing customs transmission time. The joint terminal will start its functioning in the end of 2005.
Accessed on 26 September < http://www.inform.kz/showarticle.php?lang=eng&id=136368 >

PAKISTAN
United Arab Emirates and Pakistan discuss customs affairs draft. Khaleej Times, 12 September 2005.
The United Arab Emirates and Pakistan held talks on 11 September to discuss the final draft of a bilateral agreement on cooperation in customs affairs. The draft seeks to enhance international customs cooperation and to curb violations that may impact economic and social development of the two countries. The agreement includes cooperation in monitoring suspected persons and vessels; exchange of information; and maintaining a tight control over movement of the items of special nature such as weapons, ammunitions, nuclear materials, and items which pose threat to public health and environment. The agreement will also restrict movement of antiquities, artefacts, precious stones and metals and all items that are not in compliance with Islamic values.
Accessed on 13 September <http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data/>

PHILIPPINES
Philippines to slash import duties. The Manila Times, 12 September 2005.
The Tariff Commission of the Philippines has recommended import duty cuts in nearly a third of the products that the Philippines imports from outside Southeast Asia. The tariff cuts form part of the recalibration of the country’s 10,400 tariff lines. Besides the reduction in tariffs, the commission has recommended rate increases for about 20 percent of tariff lines, and the maintenance of most favored nation (MFN) duties on the remaining 50 per cent. MFN duties pertain to tariffs imposed on goods imported from member-states of the World Trade Organization.
Accessed on 15 September
< http://www.manilatimes.net/national/2005/sept/12/yehey/business/20050912bus5.html >

Customs going hi-tech. Manila Standard Today, 15 September 2005.
The Bureau of Customs has started its P500 million automation program aimed at upgrading its service as well as curbing smuggling. The automation program will speed up processing of imports and exports. It will also curb smuggling in the country by receiving advance information. Customs has signed an agreement with the Philippine Ship Agents Association to get advance information of all inward tankers 48 hours before arrival.
Accessed on 15 September < http://www.manilastandardtoday.com/?page=politics04_sept15_2005 >

RUSSIAN FEDERATION
President calls for smaller import duties on unique equipment. Interfax, 5 September 2005.
The President of the Russian Federation has called for a considerable reduction or annulment of import duties on equipment that has no Russian equivalent. In order to accelerate the equipping of Russian industries and science he asked the members of the Government, the Parliament and the State Council Presidium to consider the annulment of import duties on technological equipment for cattle breeding.
Accessed on 6 September < http://www.interfax.ru/e/B/politics/28.html?id_issue=11371642 >

THAILAND
European Union agrees to early ‘GSP’ benefits for shrimps. Delegation of the European Commission to Thailand, 1 September 2005.
The EU has agreed to a temporary measure that reduces the import duties on shrimps from all countries entering the EU market. Thai shrimps will receive the same benefits as they would under the new EU Generalised System of Trade Preferences (GSP) scheme. Duty is reduced from 12 per cent to 4.2 per cent for fresh shrimps and from 20 per cent to 7 per cent for prepared shrimps. No quantitative limits will be applied. The measure will apply retroactively from 1 August 2005 until 31 December 2005. The new GSP scheme will then enter into force on 1 January 2006 and maintain duties for Thai shrimps at these levels.
Accessed on 6 September < http://www.deltha.cec.eu.int/en/news_2005/GSP_temp%20measure_EN.htm>

TURKEY
United Arab Emirates and Turkey in customs cooperation talks. Khaleej Times, 17 September 2005.
The United Arab Emirates and Turkey on 16 September started discussing a draft agreement for mutual customs cooperation by creating an official data base and management support for both countries. The blue print is set to stimulate mutual cooperation via customs outlets between the two countries in order to fight customs-related crimes.
Accessed on 19 September < http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data/ >

VIET NAM
Computerizing customs formalities. Viet Nam Economy, 9 September 2005.
In an effort to boost foreign trade and investment, Viet Nam Customs will put focus on computerizing customs formalities. E-customs declaration has been on a trial in Ho Chi Minh City and Hanoi, the two localities with the largest volumes of goods exported and imported. The customs sector aims to further the computerizing process with the target that 75 per cent of volume of export goods goes through e-customs formalities by the end of 2005 and e-customs clearance is basically applied nationwide in the year of 2010. E-customs declaration allows reduction of costs for enterprises and prevents possible negative doings during direct contact between businesses and customs officers. Moreover, computerization can help stem trafficking, trade frauds, and tax evasion.
Accessed on 12 September
< http://www.vneconomy.com.vn/eng/index.php?param=article&catid=04&id=714c1485b943ad >



C. NON-TARIFF MEASURES

BANGLADESH
EPB undertakes steps to resolve export barriers. Bangladesh Observer, 6 September 2005.
The Export Promotion Bureau (EPB) has taken initiative to identify export barriers of some important items that are beyond the bureau’s capability to resolve, and to achieve that these issues may be placed on the agenda of top level government. EPB will start dialogue with the ministries concerned to identify the major puzzles faced in the export of shrimp, jute, frozen foods, leather items and pharmaceutical products.
Accessed on 6 September < http://www.bangladeshobserveronline.com/new/2005/09/05/economic.htm >

EUROPEAN UNION
European Commission adopts regulation to clear blocked Chinese textile imports. EU Commission, 12 September 2005.
Effective from 14 September 2005, the European Commission has adopted a regulation providing the legal grounds for Member States to begin issuing import licenses to Chinese exports currently blocked from entering the European Union.
Accessed on 16 September <http://europa.eu.int/rapid/pressReleasesAction.do?reference=IP/05/1124>

INDIA
India asks EU to dismantle non-tariff barriers. Kamudi Online, 8 September 2005.
In order to enhance the bilateral trade and investment relationship between India and the EU, India has asked the EU to dismantle its non-tariff barriers and to provide easy access for its professionals. Asserting that trade had to play a central role in the partnership between India and the EU, India said there was a need for a liberal regime for free movement of natural persons.
Accessed on 8 September < http://www.kaumudi.com/news/090805/business.stm#4 >

India ready to lift non-tariff barriers to promote trade with Pakistan. Webindia123.com, 13 September 2005.
India has announced that the country is ready to remove all non-tariff barriers (NTBs) to increase bilateral trade with Pakistan. India is targeting mostly imports of textile, cotton, and molasses originating in Pakistan. Textiles and cotton constitute about 60 per cent of Pakistan's export basket.
Accessed on 14 September
< http://news.webindia123.com/news/showdetails.asp?id=116110&n_date=20050913&cat=business >

INDONESIA
Government to import 200,000 tons of rice. The Jakarta Post, 10 September 2005.
Indonesia will import 200,000 tons of rice starting next month, to increase domestic supply until the end of the year in anticipation of higher demand ahead of fasting month of Ramadhan and Idul Fitri holidays. The rice will be sold to registered poor families at a subsidized price. Indonesia, in late June, extended the rice import ban until the end of this year, under the condition that the ban would be lifted if the average price of medium-quality rice went over Rp 3,500 and the rice stock declined to below one million tons. The ban applies to only indigenous rice varieties and does not block imports of those types of rice that are not locally produced.
Accessed on 12 September
< http://www.thejakartapost.com/detailbusiness.asp?fileid=20050910.L04&irec=3 >

MALAYSIA
Import ban on Thai mangoes. The Star, 10 September 2005.
In order to safeguard the mangoes in Malaysia from a pest called “mango seed weevil”, the country has banned the entry of Thai mangoes which do not carry import permits or pest-free certificates to protect the local varieties from the pest. The ban is effective until further notice. Thai mangoes without the proper permits will be confiscated.
Accessed on 12 September
< http://thestar.com.my/news/story.asp?file=/2005/9/10/nation/12002623&sec=nation >

PAKISTAN
Pakistan imports sugar from India. The Independent, 7 September 2005.
A consignment of sugar arrived in Pakistan from India at the Wagah land border crossing, ending a four-year ban on sugar imports by Pakistan. The 2,000 metric tons of white sugar imported from India will help ease domestic demand in Pakistan and also reduce prices. Sugar prices in Pakistan have reached an all-time high and the country is facing a serious lack of sugar. Two-way trade between India and Pakistan, who have fought three wars since independence in 1947, grew from US$ 161 million in 2000 to US$ 483.85 million in the last financial year, when they began a peace process.
Accessed on 8 September < http://independent-bangladesh.com/news/sep/08/08092005bs.htm#A3 >

PHILIPPINES
Philippines grants Australia and Canada demands for rice import ban. ABS-CBN, 26 September 2005.
The Philippines offered to allow the entry of Canadian deboned turkey meat, canola oil, and peas as well as a hike in Australian rice imports in exchange for both countries’ support for an extension of rice import ban until 2012.
Accessed on 26 September < http://www.abs-cbnnews.com/storypage.aspx?StoryId=17306 >

UNITED STATES OF AMERICA
United States of America slaps quotas on more Chinese textiles after talks fail. Channel News Asia, 2 September 2005.
The United States of America announced restrictions on imports of two more Chinese garments, namely brassieres and synthetic filament fabric. The announcement came just hours after talks in Beijing failed to reach an agreement on textiles trade. Furthermore a review on whether quotas are needed on another four types of Chinese textiles, namely cotton and man-made fibre sweaters; cotton and man-made fibre dressing gowns and robes; men's and boys' wool trousers; and knit fabric, has been extended to 1 October 2005.
Accessed on 6 September
< http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/166178/1/.html >

THAILAND
Import curb talks held with state firms. The Nation, 10 September 2005.
Thailand consulted with state enterprises on how to curb imports in order to reduce the country’s trade deficit. The National Economic and Social Development Board has estimated that all state enterprises will spend a combined B100 billion on imports next year. Therefore, the government is setting up consultations to discuss these import plans in detail to find ways for reducing imports and the trade deficit.
Accessed on 12 September
< http://www.nationmultimedia.com/2005/09/10/business/index.php?news=business_18567318.html >

VIET NAM
United States of America to cut anti-dumping tariff. Viet Nam News Agency, 6 September 2005.
The United States of America has reconsidered anti-dumping duties on Vietnamese basa catfish and will cut the duties imposed on two Vietnamese importers after one year of applying a tax penalty.
Accessed on 7 September
< http://vietnamnews.vnagency.com.vn/showarticle.php?num=04ECO060905 >



D. INDUSTRY AND TECHNOLOGY-RELATED INFORMATION

AUSTRALIA
Australia’s uranium attracts China. International Herald Tribune, 7 September 2005.
Australia and China have agreed to negotiate a treaty that will guarantee that China can use Australian uranium for peaceful purposes; clearing the way for long-term supply contracts. Australia possesses an estimated 40 per cent of the world's uranium reserves. About 80 per cent of China's electricity is generated at coal-fired power stations, but the country is now investing in nuclear power, in a bid to counter pollution and power shortages. China has nine nuclear power reactors in operation, two under construction and many more on the drawing board as it attempts to more than double the share of nuclear-generated electricity from about 1.4 per cent now to more than 4 per cent by 2020.
Accessed on 8 September < http://www.iht.com/articles/2005/09/07/business/uranium.php >

CHINA
Chinese companies build hydropower projects in Myanmar. China Broadcast, 2 September 2005,
China and Myanmar signed contracts on the implementation of hydropower projects in Myanmar. Under the contracts worth US$ 45.84 million China is to undertake the supply of 230 kilo-volt (kv) transmission lines and substations for the Yeywa Hydropower Project. Upon completion the 790-megawatt four-generator hydropower project, being implemented on the Myitnge River, 50 kilometers southeast of Mandalay, will generate 3.55 billion kilowatt-hours of electricity a year.
Accessed on 2 September < http://en.chinabroadcast.cn/2238/2005-9-2/135@269617.htm >

China to build private pipeline to import oil from the Russian Federation. MosNews, 5 September 2005.
China will start construction of the country’s first private pipeline to import oil from the Russian Federation. The 30-kilometer pipeline, with an estimated investment of US$ 65 million, will link railway lines between the northeastern city of Heihe in the Heilongjiang province in China and Siberia’s Blagoveshchensk in the Russian Federation.
Accessed on 6 September < http://www.mosnews.com/money/2005/09/05/chinapipeline.shtml >

INDIA
India set to forge energy alliances across South Asia. The Hindu Business Line, 18 September 2005.
India is looking at the possibility of emerging as a regional energy hub in South Asia. The country has plans to set up bilateral grids with some of the neighboring countries and forge sectoral alliances with others. India has proposed to take up various propositions at the next meeting of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), namely to strengthen the existing grids with Nepal and Bhutan and to establish bilateral electricity interconnections with Myanmar for exchange of power. Furthermore it is planned to bring in gas from Bangladesh to run thermal stations in the eastern parts of the country.
Accessed on 19 September
< http://www.thehindubusinessline.com/2005/09/19/stories/2005091902660100.htm >

MALAYSIA
Dutch firms keen on Malaysian agriculture, biotechnology sectors. Malaysia Industrial Development Authority, 1 September 2005.
The Ambassador of the Netherlands expressed his country’s interest in further developing the agriculture and biotechnology sectors of Malaysia. High on the list of potential opportunities is the production of biodiesel for the Dutch market with initial work originating in Malaysia. The Embassy has arranged a matchmaking event for companies and research institutes for market-oriented research and development in Kuala Lumpur on 28 September 2005.
Accessed on 6 September < http://www.mida.gov.my/beta/news/view_news.php?id=2089 >

MONGOLIA
China to build Mongolia's first oil refinery. Reuters, 8 September 2005.
Two Chinese companies will invest US$200 million in building Mongolia's first oil refinery in the capital Ulan Bator. The refinery will have an annual production capacity of 1 million tones and is expected to operate in 2007. Half of the refinery's products will be consumed in Mongolia, while the rest will be sent to China.
Accessed on 8 September
< http://today.reuters.com/business/newsarticle.aspx?type=naturalResources&storyID >

NEW ZEALAND
Building New Zealand's IT map. New Zealand Reseller News, 7 September 2005.
IT companies in New Zealand take part in a sector-wide survey to help mapping New Zealand’s industry. The project has three key outcomes: to provide a map of the funding sources available to ICT companies, a map of industry organizations, and a landscape map of the industry – identifying horizontal and vertical markets. The result should be available by year-end and IT companies can use the information to look at the area of market they play in and identify potential growth opportunities in vertical markets.
Accessed on 7 September
< http://reseller.co.nz/news.nsf/0/BC5F34875F0FCADECC2570750003979E?OpenDocument >



E. INVESTMENT-RELATED INFORMATION

BANGLADESH
Bangladesh Bank relaxes foreign exchange guidelines. The Daily Star, 7 September 2005.
Commercial banks will no longer require approval of the Central Bank of Bangladesh to buy cheques from foreign embassies, international organizations or foreign nationals employed in Bangladesh. The Bangladesh Bank relaxed its guidelines for foreign exchange transaction to ease pressure on the ongoing foreign dollar crisis.
Accessed on 12 September < http://www.thedailystar.net/2005/09/07/d50907050346.htm >

CAMBODIA
Cambodia introduces investment incentives to Vietnamese businesspeople. Viet Nam News Agency, 25 September 2005.
Cambodia has offered investment incentives in the areas of agriculture, communication infrastructure development, power generation, heavy industries and human resource development. Furthermore, foreign investors in Cambodia will enjoy tax holidays for 3 and 9 years. The Investment Law of Cambodia also stipulates that imported items for domestic production shall be totally exempt from import tariffs and that foreign investors are allowed to transfer all their profit abroad.
Accessed on 26 September
< http://www.vnagency.com.vn/NewsA.asp?LANGUAGE_ID=2&CATEGORY_ID=29&NEWS_ID=167916 >

CHINA
Foreign banks allowed to trade forwards. China View, 31 August 2005.
The Central Bank allowed foreign banks to become members of the country’s interbank foreign-exchange forwards market. Allowing the lenders to trade currency forwards is the latest in a series of steps China has taken to liberalize its foreign exchange market. Among other steps toward a more market-based yuan renminbi, the central bank of China raised limits on how much foreign currency companies can hold, increased the amount of yuan renminbi individuals can sell, and let more than 130 domestic and foreign banks apply to trade yuan renminbi forward contracts in a bid to help them guard against swings in the yuan renminbi.
Accessed on 6 September < http://news.xinhuanet.com/english/2005-08/31/content_3425462.htm >

EUROPEAN UNION
EU asks India for Singapore-like tax benefits. Business Standard, 7 September 2005.
The European Union asked India to extend similar capital gains tax benefits to its investments in the country as India has given to Singapore under the Comprehensive Economic Cooperation Agreement. India has granted Singapore tax exemption on capital gains from investment in India. Safety clauses in the agreement have excluded shell or conduit companies from the benefit.
Accessed on 7 September
< http://www.business-standard.com/common/storypage.php?storyflag >

INDONESIA
Japan and Indonesia sign swap deal to double currency line. Channel News Asia, 31 August 2005.
Japan and Indonesia have agreed to double the size of currency swap deals to US$6 billion. The agreement, which is part of a pan-Asian initiative aimed at averting a repeat of the Asian financial crisis of the late 1990s, comes as Indonesia introduces various initiatives to try to restore investor confidence. It will allow Indonesia to swap rupiah for up to six billion United States dollars. Under a currency swaps, a country hit by a foreign exchange crisis like the one in 1997 could borrow foreign currency - usually United States dollars - from another country to bolster its reserves until the crisis has passed.
Accessed on 6 September
< http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/165826/1/.html >

MALAYSIA
Malaysia relaxes investment rules to boost capital market. Channel News Asia, 15 September 2005.
The Securities Commission of Malaysia announced that it was relaxing investment rules to allow local investors to diversify their portfolios and to improve the efficiency of the local capital market. The measures include the revision of the frameworks on investments in foreign securities, secondary market trading of non-ringgit bonds, offerings of foreign shares in Malaysia and amendments to facilitate further flexibility in the capital market. It will allow local investors to invest in foreign-listed securities and foreign companies to issue shares in the domestic market.
Accessed on 16 September
< http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/168446/1/.html >

PAKISTAN
Pakistan, Brunei Darussalam to sign accord on investment. Daily Times, 10 September 2005.
Pakistan and Brunei Darussalam are set to initiate an agreement for the establishment of Pakistan-Brunei Darussalam Investment Company Limited with an authorized capital of US$ 200 million for the promotion of bilateral investment. A delegation from Brunei Investment Agency will visit Islamabad from 19-21 September to deliberate on a memorandum of understanding for the establishment of Joint Investment Company.
Accessed on 15 September < http://www.dailytimes.com.pk/default.asp?page=story_10-9-2005_pg5_12 >

REPUBLIC OF KOREA
Government to promote more foreign investment. The Korea Times, 6 September 2005.
The Republic of Korea will further improve the environment for foreign investors by easing regulations and providing incentives. The government will pursue financial deregulation and advance the financial supervision system. Foreign capital is a critical factor for sustainable economic growth. The Financial Holding Companies Act will be amended to allow foreign financial companies to set up financial holding companies in the Republic of Korea.
Accessed on 7 September < http://times.hankooki.com/lpage/biz/200509/kt2005090616483911860.htm >

SINGAPORE
Singapore launches financial industry competency standards. Sina, 3 September 2005.
The Institute of Banking and Finance (IBF) of Singapore has launched a Financial Industry Competency Standards Framework. Backed by a certification and accreditation system, the framework identifies the skills and the knowledge required for a specific job in the financial sector. The standards are in accord with the best practices found in other leading financial centers. The IBF expects the move to help upgrade the skills and enhance the professional standards of those working in the financial industry.
Accessed on 6 September < http://english.sina.com/business/1/2005/0903/44600.html >

VIET NAM
Viet Nam to hold foreign investors' forum in November. Viet Nam News Agency, 20 September 2005.
The second forum of foreign investors in Viet Nam, Vietnam Forinvest 2005, will be held in early November by the Department of Foreign Investment under the Ministry of Planning and Investment. The forum will assess the position, the role and successes of foreign direct investment (FDI) in Viet Nam as well as introduce investment opportunities in the country. It will include a seminar on FDI policies and an exhibition.
Accessed on 26 September
<http://www.vnagency.com.vn/NewsA.asp?LANGUAGE_ID>


F. DID YOU KNOW THAT...?

… APEC launched a SMEs action plan to help Member Economies deal with globalization?
APEC has launched an action plan to enable Member Economies to review and improve their economic and policy environments for small and medium sized enterprises (SMEs). The action plan emphasizes the following seven areas of activity: developing human resources and technology through industry, educational and research institutions; facilitating access to expert assistance and consulting services; enhancing availability of capital to innovative SMEs; networking and clustering for innovative SMEs; establishing appropriate legal and regulatory structures; establishing a market consistent economic environment; developing methodologies for effectively measuring processes in the implementation of innovation programs for SMEs.

Read the whole report from APEC:
http://www.apecsec.org.sg/apec/news___media/media_releases/
Accessed on 6 September

… Bangladesh considers banning plastic bags, while Australia may opt for taxes?
Governments around the world are dealing with the plastic bag menace in different ways. Bangladesh considers banning plastic bags completely after finding that they were the main culprit during the 1998 floods that submerged two-thirds of the country. The problem was that discarded bags were choking the drainage system.

Read the whole report from the Bangladesh Observer:
< http://www.bangladeshobserveronline.com/new/2005/09/05/economic.htm >
Accessed on 6 December

… Chinese rural consumption level falls ten years behind urban?
Chinese farmers are leading the lives their urban counterparts were having a decade ago. Nearly 60 per cent of China’s 1.3 billion population lives in rural areas. At the end of 2004, the countryside reported 26.1 million people living in extreme poverty, and 49.77 million low income farmers barely feeding themselves.

Read the whole report from China Economic Net:
< http://en.ce.cn/Business/Macro-economic/200509/08/t20050908_4626969.shtml >
Accessed on 8 September

… traders in India can now use digital signatures?
The trading community in India can now use digital signatures on the bills of entry and the shipping bills that are filed with the ICEGATE, the portal of the Department of Revenues that provides e-filing services.

Read the whole report from sify:
< http://sify.com/finance/fullstory.php?id=13946502 >
Accessed on 26 September

… the President of the Republic of Korea wants APEC to become a bloc?
The President of the Republic of Korea stressed the need for Asia-Pacific countries to pursue economic integration like that of the European Union and the North American Free Trade Agreement. He noted that it would be more effective on a long-term basis to build a regional economic bloc, rather than to continue signing bilateral free trade agreements (FTAs).

Read the whole report from the Korea Times
< http://times.hankooki.com/lpage/200509/kt2005090617235210230.htm >
Accessed on 7 September



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