US And EU Face Calls For Farm Reform At WTO
July 21, 2008
GENEVA :Developing countries and food exporters from rich and poor nations called on Sunday for the United States and European Union to open up their farm markets and eliminate trade-distorting subsidies.
Global trade in farm products was at the centre of discussions as ministers from three dozen trading powers met in negotiating alliances to prepare for next week’s make-or-break talks on a new world trade pact.
World Trade Organisation Director-General Pascal Lamy has called the ministers to Geneva to seek a breakthrough in the WTO’s 7-year-old Doha round to free up world trade. The various alliances among the WTO’s 152 members, from the Cairns group of food exporters to the African, Caribbean and Pacific (ACP) countries met on Sunday to plot their strategy.
“Those members responsible for the most significant distortions in global agricultural trade - the EU, US and Japan - bear a heavy responsibility,” the Cairns Group of agricultural exporters said.
“We can and must now seize this opportunity to secure the main parameters of the Doha round. The costs of failure are too high,” the group, whose members include Canada, New Zealand, Argentina, South Africa and Thailand, said in a statement.
NOW OR NEVER:
Australia, which chairs the group, said the prospects of a Doha deal were better than ever. “This in our judgement is the best opportunity ever, in the whole seven years of this round, to conclude the deal,” Trade Minister Simon Crean told a news conference.
World Bank President Robert Zoellick said progress on farm issues would bolster confidence in a world economy strained by soaring food and energy prices and a financial crisis.
“It has never been more important for WTO members to move forward on the Doha Development Agenda,” he said in a statement before the talks. “It is now or never,” said Zoellick, who as former US trade representative helped launch the Doha round in 2001.
He said an open and fair trading system would give farmers in developing countries a reason to expand production. Consumers would benefit from lower prices and governments could save on the costs of subsidies and improve their budgets.
But ministers will face tough negotiations next week as they seek a deal on tariff and subsidy cuts in the most sensitive areas of agriculture and industrial goods, and the main exceptions to them. Developing countries want rich nations to open up their markets for farm goods like beef and cotton, in exchange for liberalising their own markets in industrial goods like cars and textiles or services such as banking and telecoms.
A major sticking point is the level of US farm support. US Trade Representative Susan Schwab has said the United States is ready to make “enormous” cuts in agricultural subsidies, which developing countries say distort international trade and squeezes their own farmers out of the market. The latest WTO proposals call for a cut of about 70 percent in US trade-distorting subsidies to $13 billion to $16.4 billion.
But those figures refer to the ceiling negotiated at the WTO, and the actual, or “applied”, figure is already about half that at $7 billion thanks to soaring food prices.
NARROW THE GAP:
So big developing countries like India and Brazil want either cuts in actual support, or at least a narrowing of the gap between the actual level and the ceiling - known in trade jargon as “water”.
“Reducing the amount of water is the objective,” Indonesian Trade Minister Mari Pangestu told reporters after a meeting of the G-33 group of developing countries chaired by Indonesia.
Switzerland, which has one of the most protected farm sectors, said any special treatment in industrial goods for poor countries would have to be matched with higher average cuts. “This will be a huge discussion this week with developing countries,” Economic Affairs Minister Doris Leuthard said. “I will fight for each percentage point in this negotiation.”
Rich countries are concerned that proposals to allow developing countries to protect their fledgling industries from the full impact of tariff cuts could allow them to shield entire sectors from market opening.
That would not fly with US and European business lobbies. “We want a fair balanced deal,” said EU trade chief Peter Mandelson. “It’s doable this week but it has to be sellable to all our constituencies and not just some of them,” he told reporters after meeting Lamy.
Bourses Manipulation Through SMS A Cyber Crime
July 21, 2008
ISLAMABAD :The government has decided that from now on manipulation of country’s stock markets through SMS (Short Message Service), or through any other messaging service creating disinformation will be treated as cyber crime and would be dealt with by the Federal Investigation Agency (FIA). The FIA has been asked to take immediate cognisance of such cases in future.
CNG Stations Fleece Consumers By Rs 4.75 Billion In 20 Days
July 21, 2008
KARACHI :The CNG station owners here have fleeced the consumers by Rs 4.75 billion since July 1, 2008, as the whole industry is in the state of disorder.
Though the Oil and Gas Regulatory Authority (Ogra) had recommended to regulate the CNG tariff at Rs 43.25 per kg and to take stern action against those CNG stations owners who were involved in overcharging price or any other violation, the Ordinance in this regard has not yet been amended.
All CNG associations have refused to sell CNG at Rs 43.83 per kg, which has been fixed after escalating natural gas tariff. They argued that CNG is a privately owned industry and the law empowers station owner to fix CNG selling rate as per station expenditures. They termed government decision in this regard as unjustified act. This has created immense confusion among all stakeholders.
The associations further claimed that the government had miscalculated the revised gas tariff hike at Rs 5.58, and added that actual hike in gas rate is Rs 6.35. Besides, they announced to sell CNG at the rate of Rs 47.25 per kg, instead of Rs 43.25, with the result that consumers are compelled to paying an extra amount of Rs 4 per kg.
According to Economic Survey Report (ESR) 2007-08, there are 2068 CNG filling stations and around 1.7 million cars have been converted into CNG. If the cylinders of two-third of total converted vehicles were filled an average five kg, the gas station owners earned windfall profit of Rs 4.75 billion in just 20 days.
Official sources told Business Recorder on Saturday that natural gas is being provided at very nominal rates to CNG stations, including all levies, which is just Rs 15.513 per kg aimed to encourage cheaper and environment-friendly fuel as an alternative of liquid fuel.
They, however, said that consumers are paying more than 200 percent excess amount to purchase it, terming it as unjustifiable and added that CNG stations owners are misusing the government’s facilitation, which has been granted only to promote CNG fuel for reducing import bills. Even if all expenditures, including electricity charges, wages, maintenance, etc were calculated on the higher side at Rs 15 per kg, the profit would still be more than Rs 17 per kg, which should be cut down by the concerned authority, they urged.
They said that the decision to fix the rate at Rs 43.25 per kg was justified, as it favoured both the industry and the consumers.
They urged concerned authority to take strict action against those violating this decision and stressed the need of evolving stern policy to regulate CNG industry, which facilitates consumers in the long run.
Thar Coal-Fired Power Plant: Sindh Government Barred From Joint Venture
July 21, 2008
ISLAMABAD :The Private Power Infrastructure Board (PPIB) has barred the Sindh government from entering into any joint venture with investors for a 1000 MW coal-fired power plant without prior consultation with the power purchaser, well-placed sources told Business Recorder.
The Sindh government had alleged in a letter to the federal government that a conspiracy was being hatched at the federal level against the much needed development of an integrated coalfield power plant project. The ‘insensitive handling’ of a Chinese company, the Shenhua Group, which led to its withdrawal from the process, was cited as the reason.
“We understand that before finalising the joint venture with the investors, the Sindh government must discuss major issues with the power purchaser so as to generate support from the power purchaser for the proposed joint venture,” said PPIB Managing Director Fayyaz Elahi, in a letter to Mines and Mineral Development Secretary Younus Dagha.
The PPIB was informed that the Sindh government recently guaranteed coal supplies at a price higher than the three different pricing references.
In case of non-absorption of guaranteed coal supplies, the Sindh government would pay liquefied damages (LDs) of Rs 300 per ton, which is said to be a good incentive to attract investors.
The PPIB, however, is of the view that to avoid incurring LDs, the Sindh government and the PPIB would have to try synchronising the commissioning of power plant with the start of commercial mining, the sources added. The Sindh cabinet, a couple of months ago, had reviewed progress on all mega projects, including the Thar coal project, noting that despite best efforts of the government and completion of the corresponding infrastructure, the project had not moved forward.
“Agencies at the federal level have not been supportive, on the contrary, frivolous and fictional impediments are being created in allowing upfront tariff, which is the only way forward for integrated coal-fired power plants,” the sources quoted the Sindh government as saying in the letter.
Pakistan has not been able to exploit its coal reservoirs for power generation, as World Development Indicator of the World Bank, 2008 reveals that coal share in power generation remained stagnant, 0.1 percent, from 1990 to 2005 whereas India has been heavily relying on coal for electrify production with 66.2 percent in 1990 that was enhanced to 68.7 percent in 2006.
Fayyaz Elahi also said that coal without guarantees for firm off-take would also be required four to six months earlier than the actual commissioning of the plant during the testing phase of the power plant.
The PPIB also believes that information memorandum prepared by the provincial government promised certain incentives which would have a direct impact on the power purchase agreement (PPA) and all the costs would be eventually passed onto the power purchaser.
“Coal pricing formula would have a direct bearing on the dispatch ability of the power plant, and the resultant ballpark figure for minimum take or pay,” Fayyaz Elahi added.
Dollar Weaker Against Euro, Yen
July 21, 2008
SINGAPORE :The dollar was weaker against the euro and yen in Asian trading on Monday as investors took profits after the US currency’s gains last week, dealers said.
In morning trade, the dollar was at 106.73 yen, down from 106.95 in New York Friday. The euro changed hands at 1.5865 dollars, up from 1.5846.
“The dollar is a little bit weaker,” said Dariusz Kowalczyk, a senior investment strategist with CFC Seymour Securities in Hong Kong. “There is some profit-taking, I would say.”
Markets in Japan were closed for a public holiday.
“Markets are increasingly worried that the US economic and financial turmoil could trigger a slowdown in Europe and even Japan,” said Ryohei Muramatsu, treasury manager at Commerzbank.
The dollar firmed Friday during US trading hours after banking giant Citigroup, among the hardest hit by the weak US housing market, posted a smaller-than-expected quarterly loss.
The news from Citigroup, one of the biggest US banks, helped calm jitters about the health of the financial sector in the world’s largest economy.
Petrol Price Increased By Rs 10.97, Diesel By Rs 9.49
July 21, 2008
ISLAMABAD :The government on Sunday revised upward oil prices. The new prices will be effective from July 21 (Monday). The price of petrol has been increased by Rs 10.97 per litre, increasing it to Rs 86.66 and diesel by Rs 9.49 per litre increasing it to Rs 64.63 and kerosene by Rs 8.20 increasing it to Rs 58.37.
The Oil and Gas Regulatory Authority (Ogra) notified the new petroleum products prices. Senior officials of Petroleum Ministry told Business Recorder that the new increases in petroleum products prices would reduce subsidy burden on the government by Rs 4 billion to Rs 5 billion.
This is the third increase in oil prices in two months and shows that the government would keep on revising the prices whenever needed.
The government is strictly following the policy of getting rid of subsidy-based relief to consumers. The government has already given a commitment to World Bank to pass on the actual oil prices to the consumers.
The basic objective of following this policy is to get rid of the subsidy which is a basic reason of increasing pressure on economy. Prime Minister Yousuf Raza Gilani has approved the hike in POL prices.
British Economic ‘Horror Movie’ To Continue: Think-Tank
July 21, 2008
LONDON :Britain’s economic ‘horror movie’ will continue in the months to come, with growth slowing considerably, while unemployment will rise and inflation will remain above government targets, an influential economic forecasting group said on Monday.
The Item Club, which is backed by accounting giant Ernst and Young, predicts Britain’s economy will grow by one percent in 2009, much slower than finance minister Alistair Darling’s own forecasts of 2.25-2.75 percent, made when he delivered the annual budget in March.
Its report comes after Darling himself said in a newspaper interview published Saturday that the economic downturn here would be more “profound” than he expected, adding that the economic picture was “at the bottom end” of his range.
The forecasting group said that while the picture was not as bleak as the struggles that preceded a recession in the early 1990s, it was imperative that wages be kept in check so as not to let inflation, already at a 16-year high of 3.8 percent annually, get out of control.
“As with any horror movie, there is an escape route but it is not an easy one,” the report read.
“It is imperative that wage increases remain restrained, despite the tremendous pressure from food and energy cost inflation… A general outbreak of wage inflation would spell disaster, requiring much higher interest rates and a recession in output to get inflation back under control.”
According to the Item Club, house prices will drop on average by about 10 percent through this year, and a further six percent through 2009, and year-on-year inflation will remain above the government’s two percent target for the coming 12 months.
Unemployment, meanwhile, will rise to two million by 2010, compared to 1.6 million at the end of last year.
“Both on the high street and in the housing market, it is going to get a great deal worse before it gets better,” Item Club Chief Economist Peter Spencer said.
He added: “Consumers will inevitably cut back on non-essential spending in the face of the impact of rising food and energy prices on their discretionary incomes.”
SBP Sells 8.7bn Rupees Of T-Bills
July 21, 2008
KARACHI:State Bank of Pakistan (SBP) sold 8.7 billion rupees ($122.79 million) of Treasury bill on Monday under three-day repo contracts at 9.99 percent to mop up funds from the money market.
Oil Prices Higher In Asia After Iran Nuclear Talks Stall
July 21, 2008
SINGAPORE :Oil prices were higher in Asian trade on Monday after weekend talks in Geneva aimed at convincing Iran to halt its nuclear programme made little progress, dealers said.
In early morning trade, New York’s main contract, light sweet crude for August delivery rose 82 cents to 129.70 dollars a barrel.
Brent North Sea crude for September delivery added one cent to 130.20 dollars.
Investors are focused once again on the geopolitical situation in the oil-rich Middle East after efforts to make Iran halt its nuclear programme stalled Saturday during talks in Geneva over the weekend.
“It was a constructive meeting, but still we didn’t get the answer to our questions,” EU foreign policy chief Javier Solana said after the talks that aimed to get Tehran to give up its disputed atomic plans in return for incentives.
“There is always progress in these talks, but insufficient,” he said, adding that the Iranians were expected to respond to the latest negotiations within two weeks.
He did not overtly address the question of further sanctions, but the US State Department after the talks warned Iran to accept the incentives or face “further isolation.”
“We hope the Iranian people understand that their leaders need to make a choice between cooperation, which would bring benefits to all, and confrontation, which can only lead to further isolation,” spokesman Sean McCormack said in a statement.
Pak-US Talks On Energy Today
July 19, 2008
ISLAMABAD :Pak-US dialogue on energy is scheduled for Saturday here, it was learnt reliably. The US Under-Secretary on Energy is already in Islamabad on a short visit to have a crucial round of talks with Pakistani authorities on energy.
Foreign Minister Shah Mahmood Qureshi, who also has additional charge of the Ministry of Petroleum and Natural Resources (MP&NR) will lead Pakistani side during the talks with the US Under Secretary, to be held at Foreign Office. Qureshi will be assisted by the senior officials of MP&NR and Ministry of Water and Power.
Sources said the two sides would discuss ways and means to cooperate on energy issue. They said the US was working on different proposals to help Pakistan overcome growing energy crisis.
Pak-US dialogues on energy have taken place a number of times during the last few months and it is working on different proposals for helping Islamabad meet its growing demand. It’s also study the option of supply electricity from Turkmenistan. Pakistan is facing acute shortage of power as well as gas. It’s desperately looking for some source from the other countries to plug the gap in energy demand and supply.
It is heavily depending on the US for getting some non-traditional source of energy production including civil nuclear energy. The US offer for transfer of nuclear energy technology to India has made Pakistan’s demand even harder. The offer of civil nuclear technology to India has created a feeling in Pakistan’s decision-makers that Islamabad would be at the worst disadvantage if its arch rival gets one source of energy from the US and it is left out for the same.
Pak-US dialogue on energy ahead of Prime Minister Syed Yousuf Raza Gilani becomes even more significant. The two sides will like to finalise modalities for co-operation on energy to ensure signing of agreement during the prime minister’s visit to US.
Latest Headlines
- Hand-painted sets for ‘Mere Khwabon Mein Jo Aaye’
- I refused international projects to do more Hindi films: Shilpa Shetty
- Bollywood Actress Nikita Anand follows Eva Greens footsteps
- Madhur Bhandarkar doesn’t believe in sequels, re-makes
- Manoj Tiwari clashes with reality show judges Raveena, Ganesh
- Sanjay Dutt’s solo in ‘Alibaug’ scrapped
- I’d do anything for Amitabh Bachchan: Akshay Kumar
- Rahul Bose’s second directorial venture postponed
- Shilpa Shetty in India’s Big Brother
- Nisha Kothari replaces Malavika in controversial ‘Karthigai’
Featured Video News
Polls
- Sorry, there are no polls available at the moment.
Advertisement
Related Sites
Members
- Register
- Log in
- WordPress
- XHTML
Member of the Boxxet Network of Blogs, Videos and Photos
Advertisement
