China to build Free Trade Zone in Shanghai

Building the FTZ is one of the Shanghai municipal government's major tasks in 2013, according to a report on government work delivered by Yang Xiong, acting mayor of Shanghai, at the first session of the 14th municipal People's Congress.

It will take about three years to build up an FTZ up to international standards, said Wan Zengwei, director of the Pudong Academy of Reform and Development in Shanghai.
FTZ is an area within which goods may be landed, handled, manufactured or reconfigured, and reexported without the intervention of customs authorities.

Analysts said Shanghai has advantageous conditions for setting up an FTZ on the basis of the existing comprehensive bonded zones -- Waigaoqiao Free Trade Zone, Yangshan Free Trade Port Area, and Pudong Airport Comprehensive Free Trade Zone. The trade volume of Shanghai's comprehensive bonded zones in 2012 totaled over USD 100 billion, the highest in the Chinese mainland.

China sees establishing FTZs as opportunities to boost its trade with surrounding economies and contribute to world trade volume, said Zhou Hanmin, vice chairman of the Shanghai Municipal Committee of the Chinese People's Political Consultative Conference.
The FTZ will help Shanghai to cut the costs of trade and improve the trade efficiency, Wan said.

Besides, the FTZ will demand some supporting financial services such as cross-border financing businesses and international trade settlement, which will be conducive to deepening China's financial reform, the official added.

Analysts believe that the FTZ to be built in Shanghai will serve as an important engine for China's cause of deepening reform and opening up in the next five to 10 years, the Xinhua report said.

 Jan 27,2013 |The Economic Times|

India, China influencing pattern & scope of international trade: WTO

MELBOURNE: Emerging economies like India, China and Brazil are no longer "policy takers" but are significantly influencing the pattern and scope of international trade, according to WTO Director General Pascal Lamy.

"These emerging powers -- China, India, Brazil, Mexico, Indonesia, Malaysia, South Africa-- and many others are no longer policy takers. "These countries now increasingly influence the pattern and scope of international trade, creating new supply and demand pulls and flexing their influence in international organisations," he said recently at the Richard Snape Lecture here.

Lamy said, "This is no longer the world of the twentieth century dominated by the US pillar on one side and the European pillar on the other. We are in a twenty-first century multi-polar world".
The WTO chief said emergence of some developing countries as key players and as "real contributors" to global dialogue on trade and economics is a fundamental feature of this new geo-political reality. He said the global network of imports and exports is no longer just the North-South paradigm of the past century.

"Increasingly we are seeing developing countries as producers and as markets for each other and this is one of the growing patterns of the new landscape of trade," he added.
The WTO chief said that the in the past 20 years, merchandise trade between developing countries has expanded much faster than the North-South trade.

A recent report by UNCTAD notes that in 2010 South-South exports made up 23 per cent of world trade compared to just 13 per cent in 2000.

"Developing countries are now the largest market for other developing countries. While this is encouraging, the contribution of developing regions to South-South trade is highly skewed," he said.
Asian countries make up more than 80 per cent of South-South trade, with the shares of Africa and Latin America being just 6 per cent and 10 per cent respectively in 2010.

Lamy said that economic ties between Africa and China and Africa and India are growing considerably. "Trade between China and Africa will likely hit upwards of $ 200 billion in 2012, up 25 per cent year on year. If this trend continues, reports are that Africa could surpass the EU and the US to become China's largest trade partner in three to five years," he added.

Nov 28, 2012 |The Economic Times|

Free Trade Agreement between EU and USA will create prosperity

What would be the impact of a far-reaching free trade agreement between the USA and the EU on growth, prosperity and employment? On behalf of the German Federal Ministry of Economics and Technology, the Ifo Institute has conducted a study on the dimensions and impact of a free trade agreement that would lift customs duties on goods and remove non-tariff trade barriers. The study finds that such an agreement would not only promote trade, but would also lead to greater prosperity and higher levels of employment in both the USA and the EU.

The EU member states and the USA are showing a growing interest in intensifying transatlantic trade relations, especially as emerging economies like China and India gain competitiveness compared to the older industrialised states. Although the Europe-an Union and the USA have already concluded a series of free trade agreements with various countries, these agreements would be dwarfed by a Transatlantic Free Trade Agreement (TAFTA). “Such a set of rules and regulations would create a free trade area representing nearly 50% of global economic output” notes Prof. Gabriel Felber-mayr, head of the International Trade Department at the Ifo Institute.

To determine the effects of a far-reaching liberalisation of trade, the Ifo experts working with Felbermayr compared the trade creation, trade diversion and added prosperity effects of an internal market scenario featuring the removal of non-tariff trade barriers with the effects that would arise from merely abolishing customs duty. With the help of existing free trade agreements, researchers were able to draw conclusions regarding the potential effects of a comparable transatlantic trade agreement.
 
Munich, 02/28/2013 |Journal of economics| (Fragment)

Taiwan Coffee Buyers Visit El Salvador to Buy Salvadoran Coffee

To strengthen trade relations with the Salvadoran coffee sector and promote its aromatic coffee, the Central America Trade Office (CATO) has organized a Mission of Taiwan Coffee Buyers to visit El Salvador from 25 to 27 February. This Commercial Mission is assisted jointly by the Economic Counselor Office of the Embassy of the Republic of China (Taiwan) and the Salvadoran Coffee Council.

The Taiwanese Commercial Delegation comprising by 11 buyers will meet with more than 18 Salvadoran coffee cooperatives: Cooperativa Cuzcachapa, Cooperativa Los Ausoles, Cooperativa Los Pinos, Cooperativa de Ciudad Barrios, Cooperativa Acproa, and 13 farms.

The Economic Counselor Office of the Taiwan Embassy will arrange a comprehensive itinerary for the delegation that will include tasting varieties of Salvadoran coffee, visiting coffee farms and coffee processing factories. It has also organized a seminar with the participation of Taiwan Turnkey Project Association, Taiwan Coffee Association and Salvadoran Coffee Council. The topics will include coffee strategy & opportunities and how Taiwan can assist its Central American diplomatic allies to make more profit from coffee, agro and related industries.

The delegation of Taiwanese buyers is visiting El Manzano Farm located in the province of Santa Ana. The coffee buyers, mission expects to obtain good results with this visit to El Salvador and to establish many business contacts.

 

 

26/02/2013 ||Bureau of foreign trade|

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延伸閱讀

The luxury segment in Germany is booming

The luxury segment in Germany is booming thanks to its considerable strengths. High quality, technological innovation and unique design demonstrate the expertise of luxury companies and their employees. These virtues are paying off: all market segments grew substantially in the last half of 2012.

The outlook for the next six months is very positive too: 62% of company directors in the industry expect substantial sales growth in the first half of 2013. Almost one in two thus intends to hire more staff (48%) and invest in marketing (45%). One in three generally expects investment budgets to rise. Compared to other countries, Germany is a key growth market, with 55% of companies based there seeing better sales in Germany than in other markets.

Those are the key findings of a survey of 60 senior managers from leading companies for the first MEISTERKREIS index. This index tracks the mood in the German luxury segment and from now on will be conducted twice a year by MEISTERKREIS in collaboration with Roland Berger Strategy Consultants. In addition to market and sales development, the index evaluates aspects such as profitability and investment.

Munich, 02/25/2013 |InternationalTradeNews| (Fragment)

Canada - India trade agreement

The Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, today announced the conclusion of the seventh round of negotiations toward a Canada-India comprehensive economic partnership agreement. Negotiations took place in New Delhi on February 5 and 6, 2013. “Our government is committed to building on our already-strong ties with India to create a partnership that will lead to jobs, growth and long-term prosperity for workers in both our countries,” said Minister Fast. “More than a million Canadians of Indian origin is clear proof of how both business and people-to-people ties are helping us deepen the Canada-India relationship.”

Negotiations this week were productive and focused mostly on market access and related areas.
A Canada-India joint study concluded that a trade agreement between the two countries could boost Canada’s economy by at least $6 billion. That translates to almost 40,000 new jobs across the country, or a $500 boost to the average Canadian family’s annual income.

Canada has identified core economic opportunities in India in the energy, agriculture, infrastructure and education sectors.

In less than six years, Canada has concluded free trade agreements with nine countries: Colombia, Honduras, Jordan, Panama, Peru and the European Free Trade Association member states of Iceland, Liechtenstein, Norway and Switzerland. In addition to India, Canada is engaged in negotiations with large, dynamic and fast-growing markets, such as the European Union, Japan and the countries that comprise the Trans-Pacific Partnership.

February 6, 2013  |Foreign Affairs and International Trade Canada|

China Rejects Status As World’s Biggest Trader

BEIJING — China has a new status its government doesn’t want — world’s biggest trader. Official Chinese and American trade data indicate China passed the United States last year in total imports and exports by a margin of $3.866 trillion to $3.822 trillion. That is about $44 billion, or just over 1 percent of China’s total.

The Commerce Ministry has taken the unusual step of publicly denying China is the new No. 1. It says China still trailed the U.S. by $15.6 billion last year — or a razor-thin 0.3 percent — under World Trade Organization standards for valuing goods.

Beijing wants to be a global leader but insists it still is a poor country. It is wary of any change that might erode that status and fuel demands for action to stimulate the global economy or concessions on trade and climate change.

“I think there is some concern from the Ministry of Commerce that this might be used as evidence by Western countries that China is not doing its part to rebalance the global economy,” said Xianfang Ren, China analyst for IHS Global Insight.

China’s explosive trade growth has abruptly altered global business. It created new opportunities for some but prompted complaints by the United States and others over its multibillion-dollar trade surpluses, market barriers and currency controls.

In just five years, China has surpassed the United States as a trading partner for much of the world, including American allies such as South Korea and Australia, according to an Associated Press analysis of trade data.

As recently as 2006, the U.S. was the larger trading partner for 127 countries, versus just 70 for China. By 2011 the two had clearly traded places: 124 countries for China, 76 for the U.S.
Trade is especially sensitive amid anxiety over a possible global slowdown. Beijing’s trading partners accused it of hampering a recovery from the 2008 crisis by obstructing access to its market.
For 2012, Beijing reported a $231 billion global trade surplus on exports of $2.049 trillion and imports of $1.818 trillion. The United States reported $1.547 trillion in exports and $2.335 trillion in imports, for a deficit of $788 billion.

Fragment |AmericanEconomicAlert.org|