UNCTAD Trade and Development Report-2007 Released

The UNCTAD Trade and Development Report-2007, was released at a function in New Delhi. Releasing the report, Nagesh Kumar, Director General, Research and Information System for Developing Countries (RIS), stated that the content of the report this year were “more or less focused on regional cooperation. Our first chapter tries to analyse the growth and good economic performances of the last few years.”

Developing countries, including the least developed ones, are benefiting from a strong current of demand for primary commodities. This positive trend for trade is in place since 2003 and has enabled many developing countries in strengthening their fiscal balances, leading to greater investment in their economies. The report claims that there has been a favourable climate for this group of nations since the early 1970s.

The report says active regional cooperation can strengthen development strategies and ease integration into the global economy. In order to achieve this, countries should not only rely on trade liberalisation but also include joint actions in the areas of macroeconomic, financial, infrastructure, and industrial policies. UNCTAD’s TDR 2007 warns that North-South bilateral and regional trade agreements could weaken the multilateral trading system and reduce the scope of national policies that support development and structural change in developing countries. “Cooperation strategy like South-South relations could bring up more healthy development among the developing nations”, Kumar affirmed.



15th Anniversary of Indo-Israel Relations

Indo-Israeli diplomatic relations have completed 15 years. Started on 29 January1992, the diplomatic relations, over the last few years included many high-level visits of dignitaries between the two countries, leading to mutual acquaintance and deepening of the relations. The bilateral annual trade between the two countries is poised to touch US$5 billion by 2008. Since the two nations resuming of ties in 1992, India and Israel have made fruitful partnership in trade and commerce. Both the counties have also agreed to sign an agreement to set up a research fund for risk free grants to help new inventors and entrepreneurs.

In connection with the 15th anniversary of full diplomatic relations, celebrations took place in three major cities—New Delhi, Mumbai, and Kolkata. The Idan Raichel Project, Israeli musical group, performed fusion sessions accompanied by a troupe called ‘Rajasthan Roots’ from Jaipur. Both Indian and Israeli audiences relished the cultural performances. Backed by sophisticated production techniques and spectacular live shows, the musical event succeeded in showcasing the rich Israeli art and culture.



Indo-Australian FTA on Cards

The bilateral trade in goods between India and Australia reached US$11.4 billion in 2006-07. In the previous year, Australia’s trade in services with India was US$1.9 billion. India has now emerged as the ninth largest trading partner of Australia. Warren Truss, Minister for Trade, Australia announced that both countries have agreed to undertake a feasibility study into the merits of a free trade agreement (FTA) between them. The minister further stated that the study would provide an opportunity to consider the potential benefits that might flow to both countries from an FTA.

The FTA feasibility study is a natural extension of the Australian government’s efforts to look at ways to tap the potential of India’s rise as a major economic power. According to the preliminary figures in 2006-07, India ranks as the fourth largest merchandise export market—recording US$10.1 billion worth of exports—equivalent to six percent of Australia’s total merchandise exports. “India is Australia’s fastest-growing merchandise market that is experiencing a growth of 34 percent over the past five years”, said Truss adding, “Australian Government will initially hold bilateral meetings with India to discuss the study’s terms of reference. The FTA feasibility study will commence in late 2007 to be completed in the next two years.



China Opens Tourist Centre in India

The China National Tourist Office has started functioning in New Delhi. The China National Tourism Administration (CNTA) and Indian Ministry of Tourism and Culture jointly hosted the inauguration ceremony in New Delhi. This is line with the ‘China-India Year of Friendship Through Tourism 2007’ programme.

Affiliated to CNTA, the tourist office will operate as the official centre with responsibility to promote China as a tourist destination in the growing Indian outbound travel market. “Opening of tourist office in India will further promote bilateral relations and friendship between the two countries”, said Shao Qiwei, Chairman, CNTA.

Prior to the inaugural session, ‘India-China Tourism Forum’ was held to exchange information on tourism between the two countries. More than 120 delegates from both India and China attended.



Big Response to American Food Festival

An American Food Festival has been inaugurated at the Delhi National Capital Region and Mumbai. The food festival in NCR started on September 14 and will continue till 07 October. Spencer’s—one of the leading retail chains in India is at the vanguard of the festival, showcasing a wide rage of US products at its 30 odd stores.

David C Mulford, the US ambassador to India, formally inaugurated the festival on 14 September in Gurgaon, a suburb of Delhi. Speaking on the occasion, the ambassador said, “We are pleased to see that Indians are developing a taste for Californian almonds, grapes and prunes; Washington apples; dried green peas and beans and fresh pears from the Pacific Northwest; as well as soy and other food products.” In another inaugural session in Mumbai, the US Consul General Michael Owen, opened the mega food festival at Malad in Mumbai on 17 September.

The international food festival has been organised by the US Foreign Agricultural Service and US Embassy, New Delhi in coordination with Spencer’s and various other American food industry groups.



India-Thailand FTA soon

India and Thailand may sign a free trade agreement (FTA) by the end of this year. According to Pranab Mukherjee, Minister for External Affairs, India: “We had a very constructive discussion with Thailand recently and hope that it would be possible to sign the FTA on goods before the end of this year.”

Bangkok prefers the deal to be signed by November and fears any further delay if the pact is not concluded by then. Says Krirk-Krai Jirapaet, Commerce Minister, Thailand, “The November deadline will be final as the present government will be handing over power to a new regime after the polls in December.”

The trade talks between India and Thailand had been hanging since the last 3 years. “The FTA negotiations with Thailand are part of India’s ‘Look East Policy’, which calls for closer relationships with the 10-member ASEAN, China and the current Asian powerhouses Japan and Korea”, added Pranab Mukherjee.



India-Canada Free Trade Proposed

India is working on a Free Trade Agreement (FTA) with Canada. This will be the first of its kind for India with any country in the western hemisphere. If it works out, the agreement will be a breakthrough for India especially since efforts for an Indo-US FTA have been languishing over the years.

Tarun Das, chief mentor of the Confederation of Indian Industry (CII) and Thomas d’Aquino, President of the Canadian Council of Chief Executives, who jointly head the recently formed Canada-India CEO Roundtable, are working on the ‘cost-benefit analysis’ part of the proposed FTA. Their report is expected soon, after which the two sides will look at the modalities on proceeding with the proposal.

For West Bengal, the objectives of the FTA with Canada will be of special interest in view of the involvement of Haldia Petrochemicals in the process. Swapan Bhowmick, Managing Director, Haldia Petrochemicals, attended a recent meeting of the CEO roundtable in Montreal and he is expected to provide key inputs to the process. Canada is keen to get involved in West Bengal and revive the strong ties it once had with India’s eastern region.