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E-TISNET MONTHLY NEWSISSUE  4/2005

April 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.

This issue of e-TISNET can be also accessed from UNESCAP’s web page, at http://www.unescap.org/tid/latestnews.asp

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



A. TRADE-RELATED INFORMATION

ASIAN DEVELOPMENT BANK (ADB)
Agreement for cooperation signed between ADB and OECD. Asian Development Bank News, 2 March 2005
On 2 March 2005, the Asian Development Bank (ADB) and the Organization for Economic Co-operation and Development (OECD) signed in Paris, France, a letter of intent to provide a framework for their cooperation in areas of mutual interest, such as aid effectiveness, anti-corruption, governance or environmental policies, and to enhance their opportunities for collaboration.
Accessed on 18 March 2005 < http://www.adb.org/Documents/News/2005/nr2005026.asp >

ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN)
15th ASEAN-EU Ministerial Meeting, Jakarta. ASEAN News, 10 March 2005
At the 15th ASEAN-EU Ministerial Meeting in Jakarta, the Ministers reaffirmed the importance of the ASEAN-EU dialogue and relationship as a fundamental cornerstone for the strategic partnership between the two parties. To this end, the Ministers renewed their commitment to intensify the longstanding and deep rooted dialogue between the ASEAN and the EU, in order to further strengthen and enhance their cooperation in areas like regional sectoral policy, trade facilitation, or geo-political stand.
Accessed on 17 March 2005 < http://www.aseansec.org/17354.htm >

CHINA
Stabilization of export prices. China Daily, 22 March 2005
On 21 March 2005, China’s top trade official announced that the country will take measures to standardize export prices while guaranteeing quality. Such measures aim to deal with the possible trade conflicts expected to occur in trade with other countries as China becomes deeper involved in the world economy.
Accessed on 22 March 2005
< http://www.chinadaily.com.cn/english/doc/2005-03/22/content_426961.htm >

INDIA
Effectiveness of the Preferential Trade Agreement (PTA) between India and MERCOSUR. India Ministry of Commerce, 19 March 2005
On 19 March 2005, India and MERCOSUR signed an agreement to make effective the Preferential Trade Agreement (PTA) established by the two sides in New Delhi in January last year. The aim is to expand and strengthen the existing relations between MERCOSUR and India as well as to promote the expansion of trade by granting reciprocal fixed tariff preferences, with the ultimate objective of creating a free trade area between the two parties.
Accessed on 21 March 2005 < http://commerce.nic.in/Mar05_release.htm#h23 >

IRAN (Islamic Republic of)
Iran signs first free trade agreement. Tehran Times, 16 March 2005
On 15 March 2005, the Iranian authorities announced the signature of the country’s first free trade agreement. The partner in this agreement is Venezuela. It has also been mentioned that duties on the passenger cars will be decreased from the current 130 per cent to 100 per cent in the coming year, while the duties on the different types of imported trucks and buses will decrease from 30 per cent in the current year to 20 per cent in the next year.
Accessed on 23 March 2005 < http://www.mehrnews.com/en/NewsDetail.aspx?NewsID=166356 >

THAILAND
Post-FTA deficit with Australia. The Nation, 18 March 2005
On 17 March 2005, the Thai Foreign Trade Department said that imports from Australia have contributed to January’s trade deficit, in the wake of a free-trade agreement (FTA) between the two countries. Thailand is indeed facing a trade deficit with Australia, but trade surpluses with both India and China, with which FTAs have also been signed. Imports from Australia jumped of 89 per cent in January, while exports to the same country increased of 18 per cent. The main factor was the important gold import, with an increase of 50 per cent compared with the corresponding period a year earlier.
Accessed on 18 March 2005
<http://www.nationmultimedia.com/2005/03/18/business/index.php?news=business_16771301.html>

Toward FTA with Japan: first agreement in the service sector. The Nation, 9 March 2005
Japanese and Thai trade negotiators have reached a preliminary agreement to allow Thai people to work in the fields of advertising, fashion design, tourism and exhibitions. This is the first step toward reciprocal certification on labor standards. The latter would eventually solve the problem of illegal Thai workers in Japan.
Accessed on 18 March 2005
<http://www.nationmultimedia.com/2005/03/09/business/index.php?news=business_16664960.html>



B. CUSTOMS REGULATIONS AND CHARGES

CHINA
Duty-free China toy imports to vitalize Mexican output. Hong Kong (China) Trade Development Council, 17 March 2005
Mexico's Ministry of the Economy is preparing a program to enhance the industry's competitiveness, drawing largely on imports of toy components, accessories, motors and parts, machinery, moulds and raw materials - many products coming from the Chinese mainland. The incentive is that these imports will be duty free.
Accessed on 18 March 2005 < http://www.tdctrade.com/imn/05031703/toys068.htm >

Implementation of automatic import licensing administration on iron ore. Hong Kong (China) Trade and Industry Department, 2 March 2005
Effective from 1 March 2005, the Ministry of Commerce and the General Administration of Customs announced that iron ore will be subject to automatic import licensing administration.
Accessed on 24 March 2005
< http://www.tid.gov.hk/english/aboutus/tradecircular/cic/asia/2005/ci742005.html >

Rules on Foreign Trade Barriers Investigation. Hong Kong (China) Trade and Industry Department, 3 March 2005
The Ministry of Commerce (MOC) promulgated the "Rules on Foreign Trade Barriers Investigation" on 2 February 2005, which took effect from 1 March 2005. The Rules govern the application, initiation, examination and decision making process of foreign trade barriers investigation. For measures which are considered to be trade barriers, the MOC will conduct bilateral consultations, file a case under the World Trade Organization (WTO) dispute settlement mechanism, or take other suitable measures as appropriate.
Accessed on 24 March 2005
< http://www.tid.gov.hk/english/aboutus/tradecircular/cic/asia/2005/ci782005.html >

EUROPEAN UNION (EU)
Strategy proposed by the Commission for simplified rules of origin. EU Press Room, 17 March 2005
The Commission has adopted a strategy to establish new simplified rules of origin for the purposes of the EU's preferential trade arrangements with certain third countries. The rules of origin, which determine which goods can benefit from the lower rates of customs duty under the preferential trade arrangements, are currently too complicated, as well as being susceptible to abuse. The Commission suggests replacing the current rules with a single value-added method for determining origin which would make them clearer as well as more development-friendly.
Accessed on 21 March 2005
<http://europa.eu.int/rapid/pressReleasesAction.do?reference=IP/05/320&format=HTML >

EU-Russia deal safeguards trade in plant products. EU Press Room, 16 March 2005
On 16 March 2005, the European Commission finalized a deal negotiated with the Russian Federation on a harmonized phytosanitary certificate for EU exports. The Russian Federation had warned that it would close its market to all plant products originating in the EU if a single plant health certificate for EU exports was not introduced by 1 April 2005. After intense negotiations, a transitional period of three months was agreed so that the old and new certificates can be used in parallel.
Accessed on 29 March 2005
<http://europa.eu.int/rapid/pressReleasesAction.do?reference=IP/05/299&format=HTML>

WTO Panel upholds EU system of protection of “Geographical Indications”. EU Press Room, 15 March 2005
A report by a WTO panel published on 15 March 2005 confirms that the EU system of protection of geographical indications for agricultural products complies with WTO rules. Geographical indications provide protection for products identified with a particular geographical location, like Roquefort or Prosciutto di Parma. Rejecting the arguments of the United States and Australia, the WTO ruled that the EU’s system for protecting these names is essentially compatible with WTO rules, including the requirements of the TRIPs Agreement. The WTO confirmed in particular that Geographical Indications can coexist with prior trademarks. The ruling confirms the rights of the holders of Europe’s approximately 700 Geographical Indications.
Accessed on 29 March 2005
<http://europa.eu.int/rapid/pressReleasesAction.do?reference=IP/05/298&format=HTML>

KAZAKHSTAN
Uzbek and Kazakh leaders agree on trade facilitation. Business Week, 4 March 2005
On 3 March 2005, the presidents of Uzbekistan and Kazakhstan have agreed to remove restrictions that hinder trade between the two countries. They will thus joint efforts to abolish some customs barriers as well as work on a unified customs regulations system.
Accessed on 23 March 2005 < http://businessweek.com/ap/financialnews/D88K1N0G0.htm >

RUSSIAN FEDERATION
Russia’s government cuts import duties on components for assembly of foreign cars. Russian Information & Agency, 28 March 2005
The government of the Russian Federation has passed the decision to cut import duties on components for commercial assembly of foreign cars. Import duties will be cut on a number of commodity items from the current 12-15 per cent to 3-5 per cent of their customs value. Duties on some commodity items, for instance engines, will be abolished. However, import duties on components manufactured in the Russian Federation, such as automobile tires, will be kept intact.
Accessed on 29 March 2005
< http://en.rian.ru/rian/index.cfm?prd_id=159&msg_id=5479628&startrow=1&date=2005-03-28&do_alert=0 >



C. NON-TARIFF MEASURES

BANGLADESH
Non-tariff barriers hurdle for export to Malaysia. Asia Business Daily, 14 March 2005
Non-tariff barriers like import licensing or permit and standardization requirements for agricultural and food products are the major bottlenecks Bangladesh is facing in exporting goods to Malaysia. Some Bangladeshi trading actors have expressed their concerns about the lack of interactions between the two countries trading organizations.
Accessed on 23 March 2005 < http://independent-bangladesh.com/news/mar/14/14032005bs.htm#A2 >

CHINA
China eased rigid import restrictions on Thai fruits. The Nation, 24 March 2005
Chinese authorities eased their product restrictions regarding fruits and vegetables quality standards following complaints related to trade barriers impeding these perishable products from crossing the border despite the Thai-China free-trade agreement. Thai fruit exporters’ shipments have been halted by China’s stringent quality standard regulations.
Accessed on 24 March 2005
< http://www.nationmultimedia.com/2005/03/24/business/index.php?news=business_16832806.html >

EUROPEAN UNION (EU)
Return to quotas on Chinese textiles is last resort. EU News on Trade, 15 March 2005
European Commissioner for Trade announced before the committee on International Trade (INTA) of the European Parliament that the use of the old quota system for Chinese textile imports would not be considered but as a last resort.
Accessed on 21 March 2005
< http://europa.eu.int/comm/trade/issues/sectoral/industry/textile/pr150305_en.htm >

G-20
G-20 demands end to trade-distorting farm subsidies within 5 yrs. The Independent Bangladesh, 20 March 2005
On 19 March 2005, a powerful block of 20 developing countries demanded that rich nations scrap all trade-distorting subsidies for farm goods within five years. The two-day G-20 ministerial meeting hold in New Delhi agreed on a negotiating position before December's crucial Hong Kong Ministerial Conference of the World Trade Organisation (WTO).
G-20 includes Argentina, Brazil, China, India, Pakistan, Bolivia, Chile, Cuba, Egypt, Guatemala, Indonesia, Mexico, Nigeria, Paraguay, the Philippines, South Africa, Tanzania, Thailand, Venezuela and Zimbabwe.
Accessed on 22 March 2005 < http://independent-bangladesh.com/news/mar/21/21032005bs.htm#A10 >

THAILAND
Exemption from anti-dumping duties loosened for five years. Bangkok Post, 5 March 2005
The Commerce Ministry has bowed to local steel users' requests, agreeing to expand the quota for hot-rolled steel imports exempt from anti-dumping duties for five years. The Commerce Minister said the decision was made by mutual agreement among the steel users, domestic manufacturers and the Federation of Thai Industries (FTI).
Accessed on 22 March 2005
< http://www.bangkokpost.net/050305_Business/05Mar2005_biz60.php >



D. INDUSTRY AND TECHNOLOGY-RELATED INFORMATION

ASIA-PACIFIC ECONOMIC COOPERATION (APEC)
Small and Medium Enterprises Encouraged to form Industry Clusters. APEC News, 10 March 2005
Small and Medium Sized Enterprises (SMEs) can generate substantial rewards if they work together in industrial clusters according to the outcomes of the "APEC Symposium on Industrial Clustering for SMEs". A set of guidelines have been issued for use by business operators, governments and trade organizations that are intended to stimulate increased interaction among local businesses.
Accessed on 22 March 2005
<http://www.apecsec.org.sg/apec/news___media/media_releases/100505_taipei_smeindcluster.html>

CAMBODIA
Taiwan’s Garment makers expand operations in Cambodia. Cambodia Post, 18 March 2005
With the European Union reportedly planning to remove China from the list of countries included in its Generalized System of Preferences (GSP) to dampen the threat of ballooning shipments of textiles from that country, many of Taiwan's leading garment makers are moving their manufacturing into Southeast Asia, and particularly in Cambodia.
Accessed on 24 March 2005
<http://english.www.gov.tw/index.jsp?recid=104599&id=12&viewdate=0>

CHINA
Requirements on Exported Wood Packaging Material. Hong Kong (China) Trade and Industry Department, 4 March 2005
Effective from 1 March 2005, a notice concerning the requirements on exported wood packaging material was jointly promulgated by the General Administration of Quality Supervision, Inspection and Quarantine, the General Administration of Customs, the Ministry of Commerce and the State Forestry on 13 January 2005.
Accessed on 24 March 2005
<http://www.tid.gov.hk/english/aboutus/tradecircular/cic/asia/2005/ci872005.html>

End of government’s support for bankrupt SOEs. Hong Kong (China) Trade and Development Council, 29 March 2005
Chinese officials announced that the government approved a plan to stop subsidizing bankrupt state-owned businesses within four years. From then on, state-owned enterprises will follow market rules and apply for bankruptcy according to the same laws and regulations as foreign and private companies.
Accessed on 30 March 2005 < http://my.tdctrade.com/airnewse/index.asp?id=5846 >

MALAYSIA
Intel to deploy WLAN in 2,000 schools by end-2006. The Edge Daily, 11 March 2005
On 11 March 2005, the Ministry of Education in collaboration with Intel Malaysia launched the wireless technology project, which will be followed by the deployment of wireless local area network (WLAN) at 2,000 schools nationwide by end-2006. The project is part of the ministry’s five-year technology integration plan to develop a world-class education standard in Malaysia.
Accessed on 21 March 2005
< http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article >

VIET NAM
Viet Nam makes Biotech development a priority. GENET, European NGO Network on Genetic Engineering, 7 March 2005
On 4 March 2005 the government issued a directive on boosting biotechnological development and application to serve national industrialisation and modernization. The directive pointed out that biotechnology is an important factor, ensuring food security, successful crop restructuring, and sustainable development of agricultural and rural development. In addition, biotechnology also helps supply essential products for public health care, protect the environment and develop the biological industry.
Accessed on 30 March 2005 < http://www.gene.ch/genet/2005/Mar/msg00052.html >



E. INVESTMENT-RELATED INFORMATION

EAST ASIA
East Asia needs US$1 trillion in roads, water, communications, and power over next five years. Asian Development Bank News, 16 March 2005
On 16 March 2005, a new study released by the Asian Development Bank (ADB), Japan Bank for International Cooperation (JBIC) and the World Bank announced that developing countries in East Asia, namely Cambodia, China, Fiji, Indonesia, Kiribati, Lao People’s Democratic Republic, Malaysia, Marshall Islands, Federated States of Micronesia, Mongolia, Myanmar, Palau, Papua New Guinea, Philippines, Samoa, Solomon Islands, Thailand, Timor-Leste, Tonga, Vanuatu and Viet Nam, need to spend more than a trillion dollars over the next five years in roads, water, communications, power, and other infrastructure to cope with rapidly expanding cities, increasing populations, and the growing demands of the private sector.
Accessed on 21 March 2005 < http://www.adb.org/Documents/News/2005/pr2005001.pdf >

CHINA
Opening of all Chinese cities to foreign-invested travel agencies. Hong Kong (China) Trade and Development Council, 29 March 2005
China's National Tourism Administration and the Ministry of Commerce have relaxed the limits on foreign investment in travel agencies in China. Changes have mainly been made in two items: first, the originally stipulated registered capital for foreign-holding or wholly foreign-owned travel agencies of no less than four million yuan was lowered to no less than 2.5 million yuan. Second, it was previously stipulated that eligible foreign-invested travel agencies are limited in Beijing, Shanghai, Guangzhou, Shenzhen and Xian. This limit is now removed.
Accessed on 30 March 2005 < http://my.tdctrade.com/airnewse/index.asp?id=5826 >

PHILIPPINES
BoI identifies 5 large-scale mining projects. Manila Bulletin Online, 21 March 2005
The Board of Investments has identified five large-scale mining projects with estimated investments of US$6 billion pouring into the country starting 2006-2009. For this year alone, the BOI has estimated $121 million investments in the mining sector to come in.
Accessed on 21 March 2005 < http://www.mb.com.ph/BSNS2005032131080.html >

VIET NAM
Viet Nam looks to shore up foreign investment rate. Asia Times, 18 March 2005
Viet Nam's Ministry of Planning and Investment (MPI) is mulling a strategy to keep Foreign Direct Investment (FDI) at or above 17-18 per cent of total social investment capital until 2010. According to the plan, total FDI capital for Viet Nam should reach US$19 billion to $20 billion over the next five years. Of this total, 55 per cent will come from industry, 10 per cent from agriculture, forestry and aquaculture and 35 per cent from services.
Accessed on 18 March 2005
< http://www.atimes.com/atimes/Southeast_Asia/GC18Ae01.html >



F. DID YOU KNOW THAT...?

… the U.S. would consider free-trade deals with Indonesia, the Philippines, Malaysia, Brunei and Cambodia?
On 17 March 2005, a senior U.S. official said that the United States would be willing to open free-trade negotiations with Association of Southeast Asian Nations members Indonesia, Malaysia, Brunei, Cambodia and the Philippines. The negotiations would fall under a U.S. program offering free-trade deals with ASEAN countries that already have a Trade and Investment Framework Agreement with Washington and are World Trade Organization members.

Read the full story from The Jakarta Post
http://www.thejakartapost.com/detaillatestnews.asp?fileid=20050317152950&irec=5
Accessed on 18 March 2005

… Korea donated US$ 200,000 to WTO technical assistance?
On 22 March 2005, the Government of the Republic of Korea contributed USD 200,000 to the Doha Development Agenda (DDA) Global Trust Fund. Part of the contribution will be used to keep up-to-date the Joint WTO/OECD Trade Capacity Building Database.

Read the full story from WTO News
http://www.wto.org/english/news_e/pres05_e/pr399_e.htm
Accessed on 24 March 2005

… the Millennium Project Report has been launched in Thimphu, Bhutan, on 18 March 2005?
The report entitled, “Investing in development, a practical plan to achieve the Millennium Development Goals” was launched by the Minister of Health. The project report puts forward the most comprehensive strategy for combating global poverty, hunger and disease.

Read the full story from Bhutan News
http://www.bbs.com.bt/MPR.html
Accessed on 24 March 2005

… Cambodia was hoping for organic farms?
Cambodia's government says it wants to make the country the "green farm of South East Asia". It has just launched a campaign to promote organic farming - in conjunction with the European Union.

Read the full story from BBC News
http://news.bbc.co.uk/1/hi/business/4317859.stm
Accessed on 24 March 2005



Information is taken mainly from secondary sources and UNESCAP accepts no responsibility for its accuracy. Mention of any companies and their products does not imply endorsement by the United Nations.

The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries.



©2005 United Nations


Last updated: 1 April 2005
 

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