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E-TISNET MONTHLY NEWSISSUE  10/2007

October 2007

E-TISNET Monthly News keeps you informed about the latest developments in trade and investment in Asia and the Pacific. For enquiries, subscriptions and/or cancellation thereof, please contact us at escap-tisnet@un.org.

This issue of e-TISNET can be also accessed from ESCAP's website, at http://www.unescap.org/tid/etisnet.asp.

Need more information?....Visit the other information products of the ESCAP Trade Information Service at http://www.unescap.org/tid/ti.asp!



A. TRADE-RELATED INFORMATION

AMERICAN SAMOA
Chamber of commerce to set up economic development NGO. Pacific Magazine, 5 September 2007.
The American Samoa Chamber of Commerce has submitted the necessary paper work to the Government to establish the “Private Economic Advisory Council of American Samoa (PEACAS)”. The goal of PEACAS is to make sure that the chamber of commerce lends a helping hand in the economic development of American Samoa. While awaiting for the approval, a PEACAS interim board has been appointed to oversee the processing of both local and federal applications as well as getting PEACAS organized. An application will also be submitted to the United States Internal Revenue Service to receive a tax exemption status.
Accessed on 6 September
< http://www.pacificmagazine.net/news/2007/09/05/chamber-of-commerce-to-set-up-economic-development-ngo >

ASIAN DEVELOPMENT BANK (ADB)
Top leaders pledge to help poor economies to reap benefits from global trade. ADB, 19 September 2007.
Nearly two dozen finance and trade ministers gathered for a two-day regional review meeting “Mobilizing Aid for Trade: Focus Asia and the Pacific” and pledged to help small and weak States in Asia and the Pacific build and strengthen capacity to benefit from trade and spur economic growth to alleviate poverty. Officials from key donor countries and private sector representatives were also attending the meeting. Trade leaders said a successful completion of the Doha Round would help the small and weak States the most. But these less developed economies did not have the capacity or infrastructure to reap benefits from global trade. Aid for Trade (AfT) would help these economies to strengthen their capacities through outward market-oriented reforms to participate in the process of globalization.
Accessed on 20 September
< http://www.adb.org/Media/Articles/2007/12166-asian-trades-economics/global-trade-NR.pdf >

ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN)
Rice and sugar to be excluded from AEC’s tariff reduction list. Antara News, 28 August 2007.
Trade Ministers of the Association of Southeast Asian Nations (ASEAN) have agreed to the requests of Indonesia and the Philippines to exempt rice and sugar from the tariff reduction scheme to be implemented as part of the ASEAN Economic Community (AEC) concept in 2015. The exemptions will protect the two countries from being flooded by imported rice and sugar.
Accessed on 30 August
< http://www.antara.co.id/en/arc/2007/8/28/rice-sugar-to-be-excluded-from-aecs-tariff-reduction-list/ >

ASEAN countries called to extend intellectual property rights beyond WTO. Asia News Network, 19 September 2007.
Australia and New Zealand have called on ASEAN countries to extend protection of intellectual property rights (IPR) beyond the World Trade Organization’s (WTO) commitment to ensure their products will be guarded from infringement. At a recent meeting to finalize details of the ASEAN Australia and New Zealand Free Trade Agreement (ANNZFTA), Australia and New Zealand sought to persuade all ASEAN countries to include the TRIPS plus concept in the pact. In exchange, the two countries would allow imports of more ASEAN goods. Trade-related aspects of intellectual property rights (TRIPS) is a normal standard for protecting intellectual property rights to which WTO members have committed. However, TRIPS plus is more rigorous and requires extended protection of patents and trademarks, more restrictions on registration of generic drugs and other safeguards demanded by developed nations.
Accessed on 20 September < http://www.asianewsnet.net/biz.php?aid=12323 >

INDIA
India and Thailand negotiate signing of free trade agreement. All Headline News, 3 September 2007.
India and Thailand are negotiating the signing of a free trade agreement (FTA) aiming to strengthen bilateral trade relations between the two countries. The two countries signed a framework agreement on signing an FTA to boost bilateral trade in 2003. Officials are negotiating the number of items to be included in the agreement, with both sides wanting the list to include 10,000 products by 2010. Trade between India and Thailand has grown significantly in the last few years. The volume increased by 29 per cent to US$ 2.28 billion in the fiscal year 2005-2006 over the previous year. India’s major exports to Thailand are gemstones, mainly diamonds and emeralds, chemicals, iron, steel, vegetables and vegetable products and pharmaceutical products. India’s major imports from Thailand are polymers of ethylene, propylene in primary forms, radio broadcast receivers, television receiver and parts.
Accessed on 3 September < http://www.allheadlinenews.com/articles/7008374462 >

INDONESIA
Indonesia, Malaysia and Singapore set up cooperative mechanism. Channel News Asia, 4 September 2007.
Indonesia, Malaysia and Singapore have come up with a cooperative mechanism to ensure navigational safety and environmental protection in the Straits of Malacca and Singapore. The mechanism aims to provide a transparent and inclusive platform for dialogue with all interested stakeholders. Six projects have so far been identified, among them the removal of wrecks in the straits, cooperation in capacity building to deal with accidents involving hazardous and noxious substances, and replacing aids to navigation along the Sumatran coastal areas, which were destroyed as a result of the tsunami. About a third of global trade and half of the world’s oil flows through the Straits of Malacca and Singapore.
Accessed on 6 September
< http://www.channelnewsasia.com/stories/singaporelocalnews/view/297801/1/.html >

JAPAN
Japan and Chile sign FTA. Forbes, 3 September 2007.
Japan and Chile have signed a free trade agreement, hailing it as a tool to consolidate their economic partnership and strengthen bilateral relations. Japan expects that Chile would become Japan’s largest trading partner in South America as a result of the agreement. Under the pact, Chile will abolish tariffs on automobiles, machinery and electronics from Japan. In return, Japan will gradually abolish taxes on salmon and trout and wine from Chile, with tariffs on over 90 per cent of bilateral trade phased out within 10 years. In 2006, Japan exported US$ 1.15 billion worth of products to Chile while Chile exported US$ 6.59 billion to Japan. Japan has already struck similar agreements with Malaysia, Mexico, the Philippines, Singapore and Thailand, and is pursuing additional trade pacts with Australia, India and Viet Nam.
Accessed on 5 September < http://www.forbes.com/feeds/ap/2007/09/03/ap4076974.html >

ORGANIZATION OF THE ISLAMIC CONFERENCE (OIC)
Muslim countries take step to boost trade. Today’s Zaman, 13 September 20007.
Guinea, Jordan, Tunisia, Turkey and United Arab Emirates have signed a rules of origin agreement under the framework of the “Trade Preferential System Agreement among the Organization of the Islamic Conference (TPS-OIC)”. The agreement is seen as paving the way for large-scale economic integration among Muslim countries. The signing came after the fourth meeting in the second round of talks for TPS-OIC trade negotiations. Other members of OIC will also push to sign the agreement soon after they make the necessary adjustments in their domestic legal systems. It is expected that all signatures will be obtained by October.
Accessed on 14 September
< http://www.todayszaman.com/tz-web/detaylar.do?load=detay&link=121987 >

PAKISTAN
Pakistan to hold trade talks with EFTA in October. Menafn News, 8 September 2007.
Pakistan plans to hold the first round of talks on an FTA with the European Free Trade Association (EFTA) in October to increase the level of trade between the two sides. EFTA comprises Iceland, Liechtenstein, Norway and Switzerland. Global imports of EFTA are around US$ 180.36 billion and its imports from Pakistan are around US$ 98.45 million. A high-level official delegation will leave for Switzerland in October to initiate formal talks on the draft text of the agreement with the bloc. Pakistan had formally requested for having a treaty with EFTA in a meeting with Swiss Under-Secretary of State during her visit to Pakistan in February. The two sides will discuss in detail the products for duty reduction and rules of origin besides reaching an agreement on the draft text of the treaty. The proposed free trade agreement with EFTA aims to provide increased market access to Pakistani goods and services and, similarly, import of machinery could be made at concessionary rates.
Accessed on 10 September
< http://www.menafn.com/qn_news_story_s.asp?StoryId=1093165675 >

Pakistan and United States enhance cooperation: teams formed to finalize trade and economic issues. Daily Times, 13 September 2007.
During a strategic dialogue between the Governments of Pakistan and the United States, the two countries have constituted sub-groups of high-level officials from both the countries to pave the way for early finalization of issues regarding trade and economic cooperation. The dialogue also finalized the arrangement for the Economic Forum meeting to be held in October 2007 at Washington DC.
Accessed on 17 September
< http://www.dailytimes.com.pk/default.asp?page=2007%5C09%5C13%5Cstory_13-9-2007_pg5_4 >

REPUBLIC OF KOREA
Global Compact Korea Network officially launched. UNDP Republic of Korea, 17 September 2007.
More than 180 participants representing business, Government, labour and civil society gathered at the Korea Chamber of Commerce and Industry for the inauguration ceremony of the Global Compact Korea Network. The new network, joining a global family of more than 80 Global Compact country and regional networks, brings together more than 82 businesses and other stakeholders, including some of the Republic of Korea’s largest corporations. The network aims to be a platform for dialogues and learning among participants and stakeholders in the Republic of Korea. It will also be a platform for innovation, for finding new and pragmatic approaches to doing business in an ever-changing global economy.
Accessed on 24 September
< http://www.undp.or.kr/Newsroom/Newsnevents/GC_091707.html >

SINGAPORE
Singapore and Peru wrap up free trade negotiations. AFP-Google, 3 September 2007.
Singapore and Peru have concluded negotiations for an FTA. The Peru-Singapore FTA will enhance the relations between Peru and Singapore and form another economic link across the Pacific between Latin America and Asia. Under the proposed FTA, more than 87 per cent of Singapore’s exports bound for Peru will enjoy duty free status with the remaining tariffs to be phased out over a 10-year period. Total trade between the two countries was valued at US$ 45.2 million in 2006, an increase of 55 per cent from 2005.
Accessed on 6 September
< http://afp.google.com/article/ALeqM5jNGy7pS2RLLPegtV-I_V0QiQV-_g >

TAJIKISTAN
Tajikistan and Kazakhstan sign a number of cooperation documents. Asia Plus, 13 September 2007.
Tajikistan and Kazakhstan have signed a total of six documents, including a joint statement of the presidents of the two countries. The five cooperation documents include a memorandum of understanding (MoU) on cooperation in the field of investment and commerce, intergovernmental agreements on cooperation in the fields of aerial communication and culture, as well as an agreement between the education ministries of the two countries on vocational training cooperation and a cooperation agreement between the agriculture ministries of the two countries.
Accessed on 17 September < http://www.asiaplus.tj/en/news/16/22125.html >

THAILAND
Officials agree on 1 November 2007 start for Japan-Thailand Economic Partnership Agreement (JTEPA). The Nation, 14 September 2007.
Japan and Thailand have agreed on making 1 November 2007 the official starting date for the Japan-Thailand Economic Partnership Agreement. Implementation will eliminate import tariffs on major Thai export goods, including foods, textiles and clothing, gems and jewellery and also lift the import quota of some Thai fruits and farm crops. Japan is one of Thailand’s top three export markets, together with the United States and the EU.
Accessed on 17 September
< http://nationmultimedia.com/2007/09/14/business/business_30048900.php >

TONGA
Finance Minister clarifies duty exemptions on imported raw materials. Tonga Now, 30 August 2007.
The Legislative Assembly of Tonga has passed a Gazette submission that malt, empty bottles, yeast and sugar for local beer production be exempted from import duty. The exemption comes under the policy of imposing the tax on the final good only instead of double taxing the manufacturer (on raw materials used upon its arrival at port and then on the final good upon the completion of production). In the past, all imported goods including raw materials or inputs for local manufacturers were subject to duty, and a further excise duty was also imposed on the final good. Work is currently being done on import duty exemptions for over 1,100 goods. The elimination of import duties on imported raw materials for local manufacturers is component of the Government’s Economic and Public Sector Reform Programme which started in early 2002.
Accessed on 3 September < http://www.tonga-now.to/Article.aspx?ID=3959&Mode=1 >

UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT (UNCTAD)
UNCTAD issues warning on North-South FTAs. Bridges Weekly News Digest, 12 September 2007.
The United Nations Conference on Trade and Development has raised the concern that the proliferation of bilateral FTAs and preferential trade agreements (PTAs) may be more costly for developing countries than was previously expected. Although FTAs and PTAs have been successful in providing transitory gains in market access and higher foreign direct investment (FDI), UNCTAD says, they limit the scope of Government intervention, which may be necessary to preserve long term growth. On the other hand, UNCTAD suggests that similar deals with other developing nations - so-called ‘South-South’ agreements - may actually promote greater efficiency and industrialization, and speed countries’ integration into the world economy.
Accessed on 17 September < http://www.ictsd.org/weekly/07-09-12/story3.htm >



B. CUSTOMS REGULATIONS AND CHARGES

BANGLADESH
DTI system speeds up Chittagong Customs House. The Daily Star, 19 September 2007.
On 17 September 2007, Bangladesh has implemented a Direct Traders’ Input (DIT) system for import of cargoes in Chittagong Customs House. The system has been introduced on an experimental basis and if proved success it would be introduced to all sections gradually. On the first day of its introduction, the DIT system helped clear 96 bill of entry while clearance of each bill of entry usually takes several hours. Earlier, the system at Customs (export) proved success in helping Chittagong customs realize revenue through easing taxation system. The DIT system at the Customs (export) helped the authorities realize a record amount of revenue of Tk 82 crore on a single day while the previous record of realizing revenue on a single day was Tk 68 crore as against the daily target of Tk 45 crore. Both the import and export customs are going for automation of taxation system as a part of the reform process initiated jointly by the customs authorities and the taskforce formed by the joint forces at Chittagong Customs House.
Accessed on 19 September < http://www.thedailystar.net/story.php?nid=4523 >

EAST ASEAN GROWTH AREA (EAGA)
Streamlining of EAGA customs rules pushed. Davao Today, 2 September 2007.
The Asian Development Bank (ADB) has set aside US$ 600,000 to finance the streamlining of customs rules and procedures in the four countries of the East Asean Growth Area (EAGA), namely Brunei Darussalam, Indonesia, Malaysia and the Philippines. A portion of the fund will be used to put up a building near the Davao port that will house a one-stop shop for the processing of customs, immigration, quarantine and security requirements of business people in the region.
Accessed on 3 September
< http://davaotoday.com/2007/09/02/streamlining-of-eaga-customs-rules-pushed/ >

INDIA
Government offers tariff concessions on imports from Chile. The Hindu, 13 September 2007.
In an effort to boost bilateral trade, the Centre has announced tariff concessions under a PTA on imports from Chile. The Government has fixed tariff preferences ranging from 10 to 50 per cent on 164 products. Copper and concentrates will attract 10 per cent of duty, whereas, for most of the other items it would be between 15 and 20 per cent. Some products like foodgrain would attract 50 per cent duty. India and Chile entered into a PTA last year in a bid to increase bilateral trade and investment. It was the first time that such an agreement had been signed between India and any individual Latin American country.
Accessed on 17 September < http://www.hindu.com/thehindu/holnus/002200709131421.htm >

Customs valuation norms for import duty. Economic Times, 17 September 2007
India has notified customs valuation norms to help customs officials to determine the value of under-voiced imported goods in a transparent manner and check duty evasion on imported goods. The rules that will come into effect from 10 October 2007, provide that where the buyer and seller are related, the transaction value shall be accepted, provided that the relationship should not influence the price. In case the officials are not satisfied with the declared of value of goods, they can question the importer to provide details to prove that the imported goods have not been under-voiced with a motive of tax evasion. However in case of doubt, the tax officials could follow the principle of computed value, which would comprise the sum of cost or value of input material in producing the imported goods, comparable profits and general expenses.
Accessed on 19 September
< http://economictimes.indiatimes.com/Customs_valuation_norms_for_import_duty/ >

ISLAMIC REPUBLIC OF IRAN
Islamic Republic of Iran-Afghan customs deal presented. PressTV.ir, 1 September 2007.
The President of the Islamic Republic of Iran has submitted a bill on cooperation on customs between the Islamic Republic of Iran and Afghanistan. The bill, ratified by the Parliament and the Guardian Council, was forwarded to the Ministry of Economic Affairs and Finance. Ratification of the agreement between the two countries, which contains a preamble, 22 articles and an annex, authorizes the Government to proceed with the exchange of the relevant documents with Afghanistan. According to the bill, in addition to cooperating in customs affairs, the Governments of the two countries would make joint efforts toward countering any violation of the relevant laws in accordance with international conventions with regard to issues such as drug trafficking.
Accessed on 3 September
< http://www.presstv.ir/detail.aspx?id=21464&sectionid=351020403 >

Islamic Republic of Iran, Syria and Tajikistan to boost customs cooperation. Tehran Times, 16 September 2007.
The Islamic Republic of Iran, Syria and Tajikistan have signed a memorandum that encourages trilateral cooperation in customs affairs. According to the memorandum, the three sides vowed to enforce the related laws and deal with violations. The memorandum further states that each side’s customs could ask for any kind of related information and experts to fight against customs offenses.
Accessed on 17 September < http://www.tehrantimes.com/index_View.asp?code=153042 >

Islamic Republic of Iran and Georgia to boost customs ties. PressTV, 16 September 2007.
The Islamic Republic of Iran and Georgia have arrived at an agreement on mutual cooperation to enhance customs efficiency. The cooperation is placed to avert customs offenses at the border crossings between the two countries. In accordance with the agreement, customs officials of both countries will inform one another of customs violations that take place within each country.
Accessed on 19 September
< http://www.presstv.ir/detail.aspx?id=23326&sectionid=351020102 >

KAZAKHSTAN
Kazakhstan and China agreed on joint customs control. Kazinform, 28 August 2007.
Officials from Kazakhstan and China have agreed to develop a programme on long-term cooperation of Kazakh and Chinese customs services for 2009-2011, to provide close cooperation in the sphere of information technologies, to form a partnership in multilateral and regional formats to and render necessary support in legal investigation of contraband and customs offense. They also approved regulations on organization of the first stage of joint customs control between the two customs services and agreed to conduct a trial of collaboration on the Kazakh-Chinese border by 15 December 2007. Furthermore, the parties adopted a memorandum on the establishment of partnership relations between the Customs Control Committee of the Ministry of Finance of Kazakhstan and General Administration of Customs of China in the fields of dog services cooperation.
Accessed on 30 August < http://www.inform.kz/showarticle.php?lang=eng&id=154673 >

MALAYSIA
Malaysian Customs underutilizing system. ZDNet Asia, 17 September 2007.
A new study has unveiled that Royal Malaysian Customs (KDRM) is still doing many routine tasks manually, despite having deployed a large-scale IT system to improve its efficiency. The Auditor-General’s Report 2006 rapped the department for not efficiently utilizing its Customs Information System (CIS), which cost some M$ 290.1 million to build. Dubbed Sistem Maklumat Kastam (SMK) in Malay, the CIS is an internal automated information system consisting of four main sub-systems. KDRM is responsible for administrating the country’s indirect tax policy, and its key role is to collect tax and help facilitate the expansion of trade and industry. According to the auditor-general report, many tasks under the Government agency such as issuing tax arrears notices, that could have been automated using modules in the CIS were still being done manually. Reasons for this inefficiency, the report highlighted, were due to the fact that the software was not user-friendly and there was no clear directive from top management to use the software.
Accessed on 19 September
< http://www.zdnetasia.com/news/business/0,39044229,62032300,00.htm >

PAKISTAN
China agrees to import Pakistan products at zero duty. The News, 17 September 2007.
In a major development, China has agreed to import Pakistani products, which are to be manufactured in China-specific Special Economic Zones (SEZs) in Pakistan, at zero duty. China-specific SEZs will be established in various parts of the country and the Economic Coordination Committee has already approved the establishment of SEZs for China in Kalashah Kaku near Lahore. The Punjab Government has acquired land for project. Pakistan and China have also agreed to initiate trade under an FTA on services from 1 January 2008, and to this effect both sides have made reasonable progress to materialize the agreement on the services sector. Under the services agreement, if successfully concluded, both countries would enter into a recognition agreement about doctors, engineers, banks and professors of each country.
Accessed on 17 September < http://www.thenews.com.pk/top_story_detail.asp?Id=10145 >

PHILIPPINES
Customs audit to be fully automated soon. Inquirer, 29 August 2007.
The Bureau of Customs will have a dry run of a plan to fully automate its auditing processes in October. The purpose of automating the process is to curb corruption by doing away with face-to-face transactions between customs examiners and importers. The automated system will be tested at the Port of Manila and later set up in all ports around the country. Under a fully automated system an importer would have to notify the bureau of an incoming shipment electronically; the importer and the assigned customs personnel would do their transaction by computer; and payment of duties would be done online. The bureau will use an X-ray machine to check contents of a shipment, veering away from the current practice of manual inspection.
Accessed on 3 September
< http://business.inquirer.net/money/breakingnews/view_article.php?article_id=85286 >

RUSSIAN FEDERATION
Customs and patent office combine anti-piracy efforts. Kommersant, 28 August 2007.
The Federal Customs Service is completing conciliation of amendments to the Customs Code, according to which any goods registered with the Russian Agency for Patents and Trademarks (Rospatent) and suspected of being of pirate production can be held for verification for ten days before being cleared through customs. Similar laws are in effect in the European Union. Currently, the customs service only handles goods in that manner if their brand name is registered in its own commercial register. The customs service database was commenced in 1997 and contains about 700 trademarks. Customs officials warn that when the Rospatent database becomes available, the customs clearance procedure may become slower, even for importers with genuine products.
Accessed on 30 August
< http://www.kommersant.com/p799142/intellectual_property_protection/ >

SAMOA
Samoa and American Samoa exploring common customs agreement. Radio New Zealand International, 18 September 2007.
Samoa’s Association of Manufacturers and Exporters said it was optimistic that a common customs treaty with American Samoa between the two countries would work. The association has signed an agreement with the chambers of commerce in both American Samoa and Samoa to lobby support from their respective Governments. Samoa has signed up to the Pacific Islands Countries Trade Agreement (PICTA) and the Pacific Agreement on Closer Economic Relations (PACER), and is negotiating with China for a free trade agreement and about to complete an Economic Partnership agreement between Pacific countries and Europe. Hence, argues the association, opening up trade with neighbouring American Samoa should be a priority.
Accessed on 19 September < http://www.rnzi.com/pages/news.php?op=read&id=35201 >

TONGA
Tonga: Customs re-imposes taxes on personal imports. Tonga-News, 20 September 2007.
The Tonga Customs Department reintroduced the charging of customs duties on personal belongings after a lapse of nearly two years. The Ministry of Finance argued that there was nothing unusual about charging duty on personal belongings, it had always been the practice until the introduction of sales tax (during the late 1960s) when sales tax was applied only to commercial goods, then personal belongings became tax free. When sales tax was abolished in 2005 and replaced by the consumption tax, personal belongings should have been taxed. Custom duties are Tonga’s main source of revenue.
Accessed on 21 September
< http://www.matangitonga.to/article/tonganews/economy/personal_imports_200907_1314.shtml >

VIET NAM
City to expand application of e-customs. VietNamNet Bridge, 24 September 2007.
The Ho Chi Minh City Customs Department announced it would expand its pilot e-customs declaration system in the fourth quarter from its current trial run at seaports to airports and export processing zones. Enterprises in the Tan Thuan and Linh Trung export processing zones would benefit from the more modern system. The department said it had decided to expand the pilot e-customs system as it has met expectations in its trial usage at seaports over the past two years. The e-customs system has satisfied both customs officials and the business community, it said, and has received and processed 38,000 e-customs declarations to date, 28,000 of which were import declarations. The department has granted e-customs clearances to 145 import-export enterprises, 122 of which actively used the system.
Accessed on 25 September < http://english.vietnamnet.vn/biz/2007/09/744213/ >



C. NON-TARIFF MEASURES

CHINA
China imposes anti-dumping duties on imported BPA. China View, 29 August 2007.
Effective from 30 August 2007, China is levying a five-year anti-dumping on Bisphenol-A (BPA) imported from Japan, the Republic of Korea, Singapore and Taiwan Province of China. Importers of BPA, a type of organic chemical mainly used in producing antiseptic and paint, have to pay a 5 to 37.1-per cent duty to offset damage caused by BPA producers in the above countries and regions. This followed the final conclusion reached by the Ministry of Commerce that BPA from these countries and regions had constituted dumping and inflicted losses to local manufacturers.
Accessed on 30 August < http://news.xinhuanet.com/english/2007-08/29/content_6628331.htm >

China introduces toy and food recall system. Official Government Web Portal, 1 September 2007.
The General Administration of Quality Supervision, Inspection, and Quarantine (AQSIQ), China’s top quality watchdog, on 31 August 2007 introduced landmark recall systems that require producers to take back unsafe toys and foodstuffs. If producers do not carry out recalls on their own, the Government will order a recall and fine the producers up to three times the value of the products. The two regulations, introduced with immediate effect, follow the introduction of a recall system for defective automobiles in 2005. Even if the products meet the country’s quality safety regulations and standards, the regulations note that toy-makers should still carry out a recall if their toys are found to be potentially unsafe. If producers fail to voluntarily recall their products, which then cause serious public harm, they will have their production licenses revoked and be subject to criminal charges.
Accessed on 3 September < http://english.gov.cn/2007-09/01/content_734440.htm >

United States taken to WTO over paper dispute. SINA, 15 September 2007.
China has moved the World Trade Organization (WTO) against the United States over its combined countervailing and anti-dumping rulings on Chinese coated paper. The Chinese delegation to the WTO notified its United States counterpart about the complaint, seeking consultations over the issue. This initial step to settle a dispute according to WTO rules is the first by China since it joined the global trade body in 2001. If China and the United States fail to reach an agreement through consultations in 60 days, China can ask the WTO to set up a panel to settle the dispute. The United States Department of Commerce (DOC) began a countervailing probe into China-made coated paper on 20 November 2006, alleging that the Chinese Government had unfairly subsidized certain products. On 30 March 2007, DOC decided to apply duties on some Chinese products, reversing its decades-long policy of not subjecting non-market economies to countervailing probes. It followed up the case by an anti-dumping probe and imposing duties on the same products.
Accessed in 17 September < http://english.sina.com/business/1/2007/0915/125205.html >

INDIA
One-year extension to subsidy on sugar exports. Financial Express, 12 September 2007.
The group of ministers (GoM) on sugar headed by the Ministry of External Affairs has decided to extend the subsidy given for exports by one year. At present, Rs 1,350 per tonne is rendered as support by the Government to mills located along the coast for undertaking exports. Sugar mills located away from the coasts are being given Rs 1,450 a tonne. The GoM extended the export subsidy regime until April 2009.
Accessed on 14 September
< http://www.financialexpress.com/news/ >

India proposes gold import ban. MetalMarkets, 25 September 2007.
The Union Minister of State for Mines has put forward plans to halt India’s importation of both gold and diamonds within the next 10 years. The ministry estimates that India holds around 9 per cent of the world’s total gold reserves and the import ban would be aimed at focusing activity on the development of the country’s gold mining industry. Twenty per cent of world gold production is consumed by India; the figure currently stands at 800 tonnes, of which 600 tonnes are used in jewellery manufacture.
Accessed on 26 September
< http://www.metalmarkets.org.uk/2007/09/25/india-proposes-gold-import-ban/ >

SOLOMON ISLANDS
Solomon Islands lifts dolphin export ban on demand from resorts. Bloomberg, 30 August 2007.
The Solomon Islands lifted a four-year ban on the trade of live dolphins and may allow more than 100 to be exported each year because of demand from tourist resorts and marine parks in places such as the United Arab Emirates. The country banned the trade in 2003 after protests by environmental groups in Australia and New Zealand. Before the ban, sales were limited to 100 dolphins a year. The Solomon Islands is dependent on agriculture, fishing and forestry with many of its 566,000-strong population living a subsistence lifestyle in remote settlements scattered throughout the archipelago. The Government is still to decide whether it will impose a tax on each animal exported.
Accessed on 3 September
< http://www.bloomberg.com/apps/news?pid=20601081&sid=a5iX9F.3qD4g&refer=australia >

THAILAND
Thailand mulls issuing compulsory licences for three cancer drugs. MCOT, 24 September 2007.
Thailand is considering compulsory licences (CL) on three cancer medicines, while another key cancer drug will not be targeted after the patent holder agreed to give free access to patients under Thailand’s medical healthcare scheme. The medicines are used to treat various kinds of cancer, ranging from tumors, breast and lung cancer. Earlier this year, the Public Health Ministry issued CL for a heart disease drug as well as a drug to treat HIV/AIDS. In November 2006, it overrode the patent an anti-retroviral drug. Thailand stands firm that it will use CL only as last resort and will do so in strict compliance with provisions of the agreement on TRIPS.
Accessed on 26 September < http://etna.mcot.net/query.php?nid=31847# >

UNITED STATES
United States exempts first Chinese farmed seafood producer from import restrictions. International Herald Tribune, 19 September 2007.
The Food and Drug Administration (FDA) has allowed a major Chinese producer of farmed shrimp to resume shipping to the United States, making it the first to be exempted from June restrictions put in place over drug contamination worries. The FDA put in place the country-wide restrictions after repeated testing of Chinese imports turned up contamination with drugs unapproved in the United States for use in farmed seafood. Beyond shrimp, the restrictions covered eel, catfish, basa and dace. The FDA allowed the company to resume exports after inspecting its processing plant. It also received third-party analyses of five consecutive shipments of shrimp that showed they were free of antibiotic residues.
Accessed on 26 September
< http://www.iht.com/articles/ap/2007/09/19/business/NA-FIN-US-China-Tainted-Products.php >

VIET NAM
Viet Nam to keep an eye on imported drug prices. Thanh Nien, 4 September 2007.
Viet Nam is set to issue a circular requiring drug firms to report their import costs before fixing prices. The cif prices (price including cost, insurance and freight) of the drugs they import will then be compared with those in neighbouring countries of comparable economic status. The ministries of finance, industry and commerce, and health will jointly set up a task force which will oversee the drug prices and punish companies selling them at unreasonable prices.
Accessed on 6 September < http://www.thanhniennews.com/business/?catid=2&newsid=31654 >

WORLD TRADE ORGANIZATION (WTO)
WTO to investigate whether China illegally subsidizes companies. Bloomberg, 31 August 2007.
The World Trade Organization agreed to probe a complaint by the United States and Mexico alleging that China illegally subsidizes domestic industries through tax reductions, the largest trade case yet against China. The United States and Mexico accuse China of using tax rebates as an export subsidy that violates WTO rules. They argue that the tax breaks give an unfair competitive advantage to Chinese exports of goods such as steel and wood products. A panel of judges will be set up to examine the complaint within 45 days, a ruling will follow about six months later.
Accessed on 3 September
< http://www.bloomberg.com/apps/news?pid=20601103&sid=ajWBe_Dku.uc&refer=us >



D. INDUSTRY AND TECHNOLOGY-RELATED INFORMATION

AUSTRALIA
GM seeds to be prohibited in Australia. The Truth about Trade, 31 August 2007.
Genetically modified (GM) seed will be prohibited for cultivation, sale or import in Western Australia (WA) under new laws introduced by the Ministry of Agriculture. The legislation was introduced to further protect the State’s moratorium on the growing GM crops. The Seeds Amendment Bill 2007 will allow the Ministry to declare GM seed to be ‘prohibited seed’. Under the proposed changes, it will be an offence to import, sell or be in possession of prohibited seed in WA for the purposes of cultivation. A Ministerial reference group was established to prepare a discussion paper for public consultation on the risks and benefits of GM canola to farmers and markets. The discussion paper is expected to be available for public comment in early 2008.
Accessed on 3 September < http://www.truthabouttrade.org/article.asp?id=8113 >

Australia to sign uranium agreement with the Russian Federation. Channel News Asia, 5 September 2007.
Australia will sign a multi-billion-dollar agreement with the Russian Federation to supply uranium for civilian uses. Australia has rejected criticisms of the agreement, saying there would be stringent safeguards against military use or selling the uranium on to third parties. Australia already exports uranium to the Russian Federation, but only for processing by a third party. Australia is one of the world’s top suppliers of uranium, exporting around A$ 630 million of the nuclear fuel in the 2006-2007 financial year, which ended on 30 June 2007.
Accessed on 6 September
< http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/297954/1/.html >

CHINA
China and United States sign energy accord. China Daily, 17 September 2007.
Energy officials from China and the United States signed an MoU to cooperate on increasing energy efficiency in China’s industrial sector, which accounts for 70 per cent of the country’s energy demand. The MoU followed discussions at the third China-United States Energy Policy Dialogue, where the two sides agreed to jointly conduct audits to increase national, regional and local energy efficiency. Teams from each country will conduct joint audits of as many as 12 facilities from the top 1,000 energy enterprises in China. The signing of the MoU is the latest addition to a series of bilateral and multilateral partnerships aimed at increasing energy efficiency, reducing greenhouse gas emissions and removing barriers to private investment in clean energy technologies.
Accessed on 17 September
< http://www.chinadaily.com.cn/china/2007-09/17/content_6110430.htm >

China to build new space launch center. China Economic Net, 23 September 2007.
China plans to construct a new space launch center in Wenchang, China’s southernmost Hainan Province. The new launch center aims to serve the next-generation rocket carriers that do emit poisonous and pollutive gas and new-type spacecraft. The new launch site will be mainly used for launching synchronous satellites, heavy satellites, large space stations, and deep space probe satellites, according to the plan which has been approved by the State Council and the Central Military Commission. In 1958, China began building its first rocket launch site in northwest China’s Jiuquan. At present, the country has three space launch grounds which have carried out over 100 space launches, sending over 100 satellites and six manned spacecraft into space.
Accessed on 24 September
< http://en.ce.cn/National/stech/200709/23/t20070923_13006693.shtml >

INDIA
India to further liberalize telecom sector. Asia News Network, 30 August 2007.
The Telecom Regulatory Authority of India (TRAI) has made a wide range of recommendations in telecom licensing policy, including no cap on the number of access provider in any circle. Forwarding its recommendations to the department of telecommunications and the ministries of communication as well as information and broadcasting, TRAI made suggestions on policies that should govern the licensing framework for access service provision.
Accessed on 30 August < http://www.asianewsnet.net/biz.php?aid=11964 >

Panel soon to deal with cyber crimes. India Infoline, 10 September 2007.
The Ministry of Home Affairs disclosed that it would shortly set up a high powered committee to develop a comprehensive action plan to enable it to effectively deal with possible threats arising from cyber crimes. The committee will be set up under a private public partnership (PPP) model in which officials from law enforcing agencies and professionals from IT industry will be drawn in it to visualize threats from cyber crimes and suggest necessary remedies for their solution to the Government. In the meanwhile, the concerned parliamentary standing committee has informed the Home Affairs Ministry that it had cleared the new cyber crime bill.
Accessed on 13 September
< http://www.indiainfoline.com/news/innernews.asp?storyId=44842&lmn=1 >

ISLAMIC REPUBLIC OF IRAN
Islamic Republic of Iran and Tunisia ink MoU on fishery cooperation. IRNA, 9 September 2007.
The Islamic Republic of Iran and Tunisia have signed an MoU on fishery cooperation. According to the MoU, consisting of six articles, both countries are obliged to expand cooperation in fishery sector, exchange experts and implement joint scientific, experimental and research projects.
Accessed on 11 September
< http://www2.irna.ir/en/news/view/menu-237/0709095192175816.htm >

Islamic Republic of Iran and Syria sign industrial MoU. IRNA, 13 September 2007.
The Islamic Republic of Iran and Syria have signed an MoU at the end of their countries’ Joint Industrial Committee. In accordance with the MoU, the two countries’ industrialists would have a joint gathering to survey the perspective of bilateral cooperation in February 2008, simultaneous with holding an expert-level industrial exhibition of the Islamic Republic of Iran in Syria. Syria, too, is going to hold a similar industrial exhibition in the Islamic Republic of Iran. The Islamic Republic of Iran has agreed to establish joint factories in Syria for production of passenger cars, busses, and trailers, as well as chemical fertilizes. Further, some Iranian companies have accepted to immediately begin producing a number of products in Syria.
Accessed on 14 September
< http://www2.irna.ir/en/news/view/menu-237/0709135714004048.htm >

MYANMAR
Myanmar commits to combat cyber crime. China View, 3 September 2007.
The Myanmar Police Force has formed an IT unit to combat probable cyber crime in the future along with the development of IT in the country and increased use of internet. In 2004, the e-National Task Force of Myanmar also formed a special cyber security team separately to crack down on cyber crime and launched a website to cooperate with foreign counterparts. Meanwhile, Myanmar is nearing completion of the draft of a cyber law, signaling a step closer to completing legislation on the use of computer and information. Myanmar enacted the Computer Science Development Law in 1996 and the Electronic Transaction Law in April 2004.
Accessed on 6 September
< http://news.xinhuanet.com/english/2007-09/03/content_6654315.htm >

NEPAL
Cyber law to come into force, finally. The Himalayan Times, 12 September 2007.
The Electronic Transaction Act is finally coming into effect three years after its endorsement, as the Ministry of Environment Science and Technology (MoEST) is all set to appoint the Controller of the Certification Authority (CCA), who is responsible to carry on its operation. The Act was not implemented due to the absence of the controller. The Act was drafted six years ago and was endorsed as an ordinance in September 2004. The MoEST has ultimately published the post of controller after whose appointment, Nepal will formally have an e-transactions and cyber law. The controller has the key responsibility of dispatching electronic records, issuing licences to certifying authorities of digital signature to maintain confidentiality of electronic transaction.
Accessed on 13 September
< http://www.thehimalayantimes.com/fullstory.asp? >

PACIFIC ISLANDS
Power body teams with forum to cut fuel costs. Fiji Times, 18 September 2007.
The Pacific Power Association and the Pacific Islands Forum Secretariat are planning a joint-fuel buying initiative for small companies across the region to lower their fuel costs. The escalating cost of fuel is a regional problem and impacts the economic development of the islands.
Accessed on 20 September < http://www.fijitimes.com/story.aspx?id=70780 >

PHILIPPINES
Geothermal sites declared as special economic zones. The Sun Star, 11 September 2007.
The President of the Philippines has declared seven geothermal sites in the country as industrial economic zones. Dubbed as Generating Investments in Geothermal Areas (Giga), the President in an executive order directed all local Government units in areas near or adjacent to the geothermal-producing sites to create SEZs. With the establishment of the economic zones, geothermal host areas are expected to attract investments, spur employment, increase productivity and income, and boost the development of improved technologies and infrastructures.
Accessed on 13 September
< http://www.sunstar.com.ph/static/dav/2007/09/11/ >

RUSSIAN FEDERATION
All school PCs in the Russian Federation to have domestic software. Kommersant, 14 September 2007.
The Ministry of Information Technology and Communication informed that by 2009, all computers in schools in the Russian Federation would have national software. This action is intended to materially lower the country’s dependence on foreign software. In 2008, software of the Russian Federation will be tested in three pilot regions and in 2009, national software will be installed in all school computers. The Ministry of Finance refused in spring to appropriate money for buying foreign software for schools.
Accessed on 19 September < http://www.kommersant.com/p-11388/r_500/national_software/ >

Japan and Russian Federation to co-develop power plants. Itar-Tass, 19 September 2007.
A Japanese heavy industries company and a investment group from the Russian Federation have agreed to cooperate in the establishment of thermoelectric power stations (TPS) in the Russian Federation. The Japanese company will supply equipment for the construction of the TPS. Japanese equipment for the manufacture of gas turbines will be delivered, in particular, to the Ural tubing mill in Yekaterinburg. The agreement presupposes that if the Japanese company receives an order for the delivery of turbines to the Russian Federation and other post-Soviet countries, those turbines would be made at the Ural-based enterprise while main components will be supplied from Japan.
Accessed on 20 September
< http://www.itar-tass.com/eng/level2.html?NewsID=11882740&PageNum=0 >

TURKEY
Turkey plans to invest US$ 3 billion in Islamic Republic of Iran gas field. Tehran Times, 6 September 2007.
Turkey’s state oil company plans to invest US$ 3 billion over 10 years in the Islamic Republic of Iran’s South Pars natural-gas field. The oil company plans to extract 20 billion cubic meters of gas per year at three blocks in the field. Turkey, whose energy demands are growing by 6 per cent annually, signed a framework energy agreement with the Islamic Republic of Iran in August.
Accessed on 6 September < http://62.193.18.228/index_View.asp?code=151987 >

TURKMENISTAN
Turkmenistan-China gas pipeline construction starts in Turkmenistan’s east. Turkmenistan.ru, 30 August 2007.
The President of Turkmenistan has attended the inauguration of the realization of the Turkmenistan-China gas pipeline construction project at the Bagtiyarlyk deposit on the right bank of the Amudarya River. The future gas pipeline will run through the territory of four states - Turkmenistan, Uzbekistan, Kazakhstan and China. The total length of the gas pipeline is 7000 km.
Accessed on 3 September
< http://www.turkmenistan.ru/?page_id=3 >

VIET NAM
Joint Venture between the Russian Federation and Viet Nam discovers gas field off Viet Nam’s coast. Itar-Tass, 31 August 2007.
A Russian-Vietnamese joint venture has discovered a natural gas field off Viet Nam’s coast. According to estimates, gas influx make up 400,000 cubic meters per day. Gas condensate reserves also have been found. Experts plan to make a comprehensive estimation of hydrocarbon reserves soon and outline proposals for further geological surveys on the field. The joint venture has signed a contract back on 11 September 2000, on joint exploration and development of block 112 off Viet Nam’s central coast. The contract also envisions hydrocarbons marketing. On 20 November 2006, the two companies signed a cooperation agreement.
Accessed on 3 September
< http://www.itar-tass.com/eng/level2.html?NewsID=11830268&PageNum=0 >