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EU-Australia trade talks on brink of collapse

Peter Ricketts, the co-chair of the Franco-British Council that the defence ministers had planned to address, told the newspaper on Sunday that the gathering had been “postponed to a later date.”…reports Asian Lite News.

The trade negotiations between the European Union and Australia are at risk of collapsing over lack of trust after Canberra ditched a multibillion defence contract with France, Secretary of State for European Affairs Clement Beaune told Politico.

Last week, Paris recalled its ambassador from Canberra and Washington, after Australia chose to quit a $66 billion submarine contract with France to instead obtain nuclear-powered submarines within a new trilateral partnership with the United Kingdom and the United States, AUKUS. French Foreign Minister Jean-Yves Le Drian described Australia’s withdrawal from the contract as a “stab in the back.”

“Keeping one’s word is the condition of trust between democracies and between allies,” Beaune said, adding that “it is unthinkable to move forward on trade negotiations as if nothing had happened with a country in which we no longer trust.”

While the European Commission formally has exclusive powers to conduct trade negotiations on behalf of the 27 member states, in practice, it would be impossible for Brussels to go ahead with the talks in the face of France’s outspoken opposition, the news outlet said, noting that some more free-trading member states, such as Sweden or the Netherlands, will hardly go down well with Paris’ criticism.

The chair of the European Parliament’s international trade committee, Bernd Lange, in turn, told Politico that the trade agreement was “in trouble” not only because of France’s opposition but because the bloc’s “willingness to compromise … has now certainly decreased.”

UK, French Def Min meet cancelled

A meeting between UK Defence Secretary Ben Wallace and his French counterpart Florence Parly was cancelled because of the diplomatic row over the AUKUS deal between Australia, the US and the UK that stole away the $66 billion contract Paris had signed with Canberra, The Guardian reports.

Peter Ricketts, the co-chair of the Franco-British Council that the defence ministers had planned to address, told the newspaper on Sunday that the gathering had been “postponed to a later date.”

The ministers were also due to hold a bilateral meeting in London, but it has also been cancelled, according to The Guardian.

This past week, Paris recalled its ambassador from Canberra and Washington after Australia gave up on a $66 billion defence deal with France to enter a new trilateral strategic partnership with the United Kingdom and the United States (AUKUS).

The Guardian said on Saturday that US talks on the issue went on for months in utmost secrecy and that during the G7 summit in Cornwall in June, French President Emmanuel Macron was given no hint that the Australians were about to scupper the deal.

French Foreign Minister Jean-Yves Le Drian has described Australia’s withdrawal from the deal as a “stab in the back.” (ANI/Sputnik)

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EU’s retail trade, services severely hit by pandemic

Non-essential production was stopped, and several countries imposed regional or even national lockdown measures, which further stifled economic activities…reports Asian Lite News.

The Covid-19 pandemic has posed a major impact on retail trade and the demand for services in the European Union (EU) as many countries mandated the closure of retail shops while bars and restaurants had to spend several months with chairs stacked on tables and shutters closed.

The pandemic caught most people unprepared and in an attempt to fight the pandemic, the member states of the EU have implemented a variety of measures, including restrictions on non-essential travel, Xinhua news agency reported.

Non-essential production was stopped, and several countries imposed regional or even national lockdown measures, which further stifled economic activities.

Tourism was also wiped out, forcing hotels to close their doors and airlines to cancel flights, causing havoc in these industries.

According to a report issued on September 3 by Eurostat, the statistical office of the EU, retail trade in the bloc in July 2021 decreased by 1.9 per cent month-on-month, after a moderate 1.4 per cent increase in June on the back of strong increases in February and March, dropping again in April and picking up in May.

Eurostat said the situation in the 19-member eurozone was worse: there the drop was 2.3 per cent.

Bert Colijn, senior financial expert at ING Bank, said that this was not what analysts were expecting and described it as a “bad start to the third quarter of the year” for retail sales in the eurozone.

However, he was not disheartened by the outlook.

“The big question is whether the recovery can carry on at a decent pace and quickly close the gap with pre-pandemic gross domestic product (GDP).

“It looks like the consumers are set to contribute to that positively in the coming quarters as unemployment is decreasing rapidly and incomes are therefore boosted.

“Consumer confidence has come off recent highs but remains historically elevated. All this bodes well for retail sales growth in the coming quarters and subsequently for a fair pace of GDP growth,” he said.

Services across the bloc were equally affected but are slowly picking up. The latest statistics showed that the total turnover of services in the EU in the second quarter of this year increased by 3.2 per cent compared with the first quarter.

This relatively strong increase followed an increase of 1.5 per cent in the first quarter of 2021 and of 2.1 per cent in the last quarter of 2020.

In the first and second quarters of 2020, the services industries’ turnover declined by 3.6 per cent and 17.4 per cent respectively, picking up by 10 per cent in the third quarter.

In the second quarter of this year, the increase was the strongest in accommodation and food services (28.4 per cent), while the turnover of transportation and storage services increased by 4.6 per cent.

According to Eurostat, the effects of the Covid-19 crisis were more dramatic than those of the 2008 financial crisis.

The index for the EU-wide turnover of hotel and restaurant services was reduced by almost 80 points within half a year.

The index for transportation services went down by more than one quarter, with the strongest losses recorded in air transport.

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Huge surge in trade activities along Torkham border


The trade activities along the border have increased as hundreds of trucks now, cross the border on a daily basis for trade purposes…reports Hamza Ameer.

The Pakistan-Afghanistan Torkham border, the main trade route between the two countries, that also caters as transit trade route for other nations, has seen a major surge in trade activities since the Taliban have taken control of the border operations on the Afghan side.

The trade activities along the border have increased as hundreds of trucks now, cross the border on a daily basis for trade purposes.

“Before the Taliban took control of the border, we used to have many issues. We had to go through a wait for hours and hours with loaded trucks of supplies for clearance to cross into Afghanistan. We had to pay Rs.16,000 to the Afghan security forces as bribe to cross the border. And then had to pay more bribes on every check post from Torkham till Mazar-i-Sharif,” said Gul Agha, a truck driver whose daily routine of movement is to carry, tomatoes, fruits, vegetables and other supplies from Afghanistan into Pakistan.

“But now that the Taliban are there, we do not have to give many documents for clearance nor do we have to pay any money. They give us a piece of paper at the border and that is our legal permission to move freely in Afghanistan till Mazar-i-Sharif,” he added.

Another trader said that business has doubled since the Taliban have taken over control at the borders.

“Since the time the Taliban has come, in comparison to the previous government, the business has doubled at the Torkham border. Previously, during the previous government rule in Afghanistan, about 70 to 80 vehicles would get custom clearance in 24 hours. Now, more than 300 vehicles come on a daily basis. This has increased our interest in the business,” said Faridullah Shinwari, a local trader at the Torkham border.

“We used to face difficulties when clearing vehicles, which would be coming from Afghanistan into Pakistan previously. One vehicle was checked at least four places. After the car got scanned, we would be told to check them. And in that process of repeated checks, lots of time would be consumed. Many times, supplies like vegetables, fruits etc would be left of no use as they would get shabby.”

When asked about how he feels about the takeover of the Taliban in Afghanistan, Shinwari said that for the moment, lives are coming to ease as thousands of families living along the border on both sides, banks on the trade movements and activities.

However, he demanded that locals who used to travel across the border for work should also be allowed to continue working.

(Hamza Ameer reporting from Ground Zero)

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GCC-INDIA TIES: Talks On For New Trade Pact

Outside the GCC, India is conducting FTA-related talks with the United Kingdom, Australia, and the European Union, reports Asian Lite News

India’s discussions for concluding a Free Trade Agreement (FTA) with the GCC are “progressing fast,” the Minister for Commerce, Industry, and Consumer Affairs, Piyush Goyal, said yesterday.

Addressing a large cross-section of India’s business through the platform of the Jain International Trade Organisation, Goyal specifically cited the UAE as among the countries with which his Ministry is engaged in talks towards reaching an FTA.

Outside the GCC, India is conducting FTA-related talks with the United Kingdom, Australia, and the European Union.

The pace of discussions has now gathered speed, Goyal said. Traders and exporters are the “twin pistons powering the economic growth engine of India. We firmly believe in the capabilities of the business community as well as of start-ups.”

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The FTAs will enable India to become a global “trading hub,” Goyal hoped.

The Jain International Trade Organisation is conducting a 12-day virtual expo with the participation of several thousand businesses and entrepreneurs.

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Tony Abbott calls on Modi, discusses bilateral trade and investment

The two leaders discussed ways to further strengthen bilateral trade, investment and economic cooperation…reports Asian Lite News

Prime Minister Narendra Modi on Thursday met former Australian Prime Minister Tony Abbott who is visiting India from 2-6 August 2021 in his capacity as Australian Prime Minister’s Special Trade Envoy for India.

The two leaders discussed ways to further strengthen bilateral trade, investment and economic cooperation to realize the full potential of the India-Australia Comprehensive Strategic Partnership.

They emphasized that enhanced economic cooperation between India and Australia would help both countries better address the economic challenges emerging out of the COVID-19 pandemic, and would also help them in realising their shared vision of a stable, secure and prosperous Indo-Pacific region.

Prime Minister Modi expressed his satisfaction at the stellar growth of India-Australia ties in recent times and admired the important contributions of Prime Minister Morrison and former Prime Minister Abbott in this journey.

Pic credit:PIB

The Prime Minister also recalled his virtual summit last year with Prime Minister Morrison and reiterated his desire to be able to host PM Morrison in India as soon as conditions permit.

At the Leaders’ Virtual Summit held between Prime Minister Modi and Australian Prime Minister Scott Morrison on June 4, 2020, the bilateral relationship was elevated to a Comprehensive Strategic Partnership, under which India and Australia committed, inter alia, to encourage expanded trade and investment flows for mutual benefit and decided to re-engage on a bilateral Comprehensive Economic Cooperation Agreement (CECA).

The present visit by Tony Abbott is reflective of this shared ambition. (India News Network)

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Burmese grapes from Assam exported to Dubai

North-Eastern states are becoming part of the agricultural and processed food products export map…reports Asian Lite News

In a major boost to harness the export potential of agricultural and processed food products from north-eastern states, a shipment of fresh Burmese grapes referred as ‘Leteku’ in Assamese language has been exported to Dubai from Guwahati by air route.

According to the Ministry of Commerce and Industry, a consignment of Leteku, which contains vitamin C and Iron, was sourced and packed at a collection center in Darang district of Assam.

The consignment was exported by the Agricultural and Processed Food Products Export Development Authority (APEDA) registered Kiega EXIM Pvt. Ltd from Guwahati airport to Dubai via Delhi.

APEDA has been carrying out promotional activities to bring the North-Eastern states on the agricultural and processed food products export map of India.

Recently, APEDA facilitated exports of the first consignment of ‘red rice’ to the USA from Assam. Iron rich ‘red rice’ is grown in Brahmaputra valley of Assam, without the use of any chemical fertilizer. The rice variety is referred to as ‘Bao-dhaan’, which is an integral part of Assamese food.

Ripe fruits of Burmese grapes(WIKIPEDIA)


APEDA assisted in exports of Geographical Indications (GI) certified KajiNemu (Assam lemon) to London. So far around 40 metric tonnes of Assam Lemon has been exported.

Jackfruits sourced from the Tripura based Krishi Sahyog Agro Producer Company Ltd was exported to London.

APEDA has provided financial assistance to the private sector to set up a pack house at Guwahati which has fulfilled the mandatory requirement or infrastructure for export of fresh fruits and vegetables to Europe.

The organization undertakes market promotion activities for evolving structured marketing strategies for export of food products, market intelligence for taking informed decisions, international exposure, skill development, capacity building and high-quality packaging.

“APEDA would continue to focus on the north eastern region both in terms of capacity building, quality upgradation, and infrastructure development. Linking buyers to farmers, strengthening the entire supply chain of agricultural produce from the north-eastern region would bring in dividends,” the Commerce ministry said in a statement. (INN)

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S.Korean envoy leaves behind a lasting legacy in India

Trade between the two countries in Jan-Dec 2020, recorded $16.9 billion, according to Indian Embassy data. In 2018, Korea’s investment to India crossed the $1 billion mark for the first time, touching $1.053 billion…reports Mahua Venkatesh.

South Koreas ambassador to India, Shin Bongkil, who prepares to leave New Delhi after completion of his three-year term, will have reasons to cherish. It was only last year that India introduced Korean as the second foreign language in schools as part of the National Education Policy last year.

Jang Jae-bok, who is currently posted as the Ambassador for Public Diplomacy in Korea will assume take charge in place of Shin by the middle of next month, Asian Community News (ACN) said. Shin’s tenure will also be marked by the two brutal Covid 19 waves that hit India.

The Korean Embassy under Shin along with other Korean associations arranged for oxygen concentrators. “It was not easy during the lockdown period but the embassy arranged for the logistics to transport the same to the Korean community staying in far-flung areas,” ACN quoted Euy Don Park, President, Federation of Korean Associations in India as saying.

While the bilateral Comprehensive Economic Cooperation Agreement (CEPA), is in place since 2010, bilateral trade between the two countries touched $21.5 billion only in 2018 — crossing the $20 billion mark for the first time.

Trade between the two countries in Jan-Dec 2020, recorded $16.9 billion, according to Indian Embassy data. In 2018, Korea’s investment to India crossed the $1 billion mark for the first time, touching $1.053 billion.

India – RoK Trade and Economic Relations.
Foreign direct investment (FDI) from South Korea into India up to September 2020 stood at $6.94 billion.

“The Korean community in India appreciates his approach to make good relationship with India considering the fact that India is an important county for Koreans,” Park said. ACN further noted that it was during the tenure of Shin that the construction Korean Indian Friendship Park was completed in New Delhi, and Suriratna park (Queen Ho) park came up in Ayodhya in Uttar Pradesh.

(This content is being carried under an arrangement with indianarrative.com)

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UK, US agree to suspend retaliatory tariffs for 5 years

The 17-year dispute, the longest-running in the history of the World Trade Organisation, has seen damaging retaliatory tariffs levied on products on both sides of the Atlantic due to disagreements over support for large civil aircraft…reports Asian Lite News.

International Trade Secretary Liz Truss on Thursday struck an historic deal with the US on the Airbus-Boeing dispute in a major win for industries like Scotch whisky.

After talks with US Trade Representative Katherine Tai at the Department for International Trade’s headquarters in central London, both sides have agreed to suspend retaliatory tariffs for 5 years and cooperate more closely on tackling unfair trade practices by non-market economies.

The 17-year dispute, the longest-running in the history of the World Trade Organisation, has seen damaging retaliatory tariffs levied on products on both sides of the Atlantic due to disagreements over support for large civil aircraft.

The disagreement has hit industries such as cashmere, machinery, and single-malt Scotch whisky that employ tens of thousands of people across the UK. The Scotch Whisky Association estimates the tariffs have cost the sector hundreds of millions of pounds in lost revenue.

The UK, which was involved as a member of the EU, took the decision to deescalate the dispute by unilaterally suspending retaliatory tariffs on the US at the start of this year, which encouraged the US to agree to a four-month suspension of tariffs while both sides negotiated a longer-term arrangement.

This deal will support jobs across the country and is fantastic news for major employers like Scotch whisky and sectors like aerospace,” said Liz Truss. “We took the decision to de-escalate the dispute at the start of the year when we became a sovereign trading nation, which was crucial to breaking the deadlock and bringing the US to the table.”

She said UK can focus on taking its trading relationship with the US to the next level, including working more closely to “challenge unfair practices by nations like China and using the power of free trade to build back better from the pandemic.”

Besides suspending countermeasures for 5 years, the UK and US will establishing a working group on large civil aircraft that is led by the respective Minister responsible for trade.

Both will provide financing to a large civil aircraft producer for the production or development of large civil aircraft on market terms.

The countries will also provide research & development funding for large civil aircraft: through an open and transparent process; making the results widely available; and not providing R&D funding, or other support, to producers of large civil aircraft in a way that would cause negative effects to the other side.

They will also collaborate on tackling non-market practices of third countries that may impact on their large civil aircraft industries.

Scottish Secretary Alister Jack said the suspension of retaliatory tariffs for five years is great news for the Scottish whisky industry – a cornerstone of Scotland’s economy.

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UK-Australia trade deal agreed in broad terms

The details of the trade deal are expected to be announced on Tuesday morning, reports Asian Lite News

The United Kingdom and Australia have agreed the broad terms of a trade deal, according to a media report, adding that formal announcement is expected on Tuesday.

Prime Minister Boris Johnson and his Australian counterpart Scott Morrison agreed the deal over dinner at Downing Street, the BBC reported.

This is the first trade deal to be negotiated from scratch since the UK’s divorce from the EU. It is seen as an important step towards the UK joining a wider Asia Pacific free-trade agreement, according to the report.

The BBC reported that the new trade deal is expected to give UK and Australian food producers and other businesses easier access to each other’s markets – an ambition perhaps alluded to by the meal served up to the pair on Monday evening – Welsh lamb and Scottish smoked salmon, washed down with Australian wine.

The UK government says membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could provide British farmers with huge opportunities.

On Monday afternoon, Foreign Secretary Dominic Raab met the Australian PM to discuss the opportunities for both countries to support open trade, economic development and security in the Indo-Pacific region.

“They discussed their shared focus on being a force for good across the world, including in supporting human rights, media freedom and freedom of religion or belief,” a Foreign Office spokesperson said.

The Australian Prime Minister, Scott Morrison is greeted by Prime Minister Boris Johnson outside No 10. Picture by Tim Hammond / No 10 Downing Street

“They underlined UK and Australian commitment to work together to promote open societies and economies, protect our values and confront coercion.”

The pair also discussed future opportunities for collaboration to tackle the global threat posed by climate change, the spokesperson added.

Some of the Britain’s most famous exports could enjoy major wins from a UK-Australia trade deal, the Department for International Trade has revealed.

UK negotiators are working to remove tariffs impacting our car, train, fashion, and food and drink industries, making it cheaper and easier to sell goods to Australia, supporting jobs and boosting the economy.

The Government’s latest research estimates that 6.5m jobs were supported by exports in 2016 and were generally higher paying, with wages in jobs directly and indirectly supported by exports around 7% higher than the national average.

From Northamptonshire-based footwear company Trickers to Mason’s of Yorkshire gin, a deal with Australia could be a boost to all parts of the country, supporting the 15,000 British businesses who already export £4.1 billion of goods to Australia.

Iconic brands like Mr Kipling, Cadbury’s Mini Rolls and Bradbury Cheese are already enjoyed by households across Australia, but are subject to tariffs of up to 20% – these could be slashed under any trade deal.

The deal could also benefit the UK car industry by removing the current 5% tariff on cars, which last year alone cost the sector an estimated £17 million in duties paid. Cheaper exports could also help support the 162,000 people estimated to be working in the automotive manufacturing sector, across more than 3,400 businesses. 

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India must step up game in Africa

At a time when China has slowed its investments into the continent, India has an opportunity. The continent will also play an important role as the geopolitical thrust shifts towards the Indo Pacific, reports Mahua Venkatesh

As the African Continental Free Trade Area (AfCFTA) officially kicked off in January, India must now proactively make a strong pitch to be able to get access to the member countries for expansion of bilateral trade, experts said.

Touted as one of the biggest trade deals in the world, the AfCTA aims to create a single market comprising 1.3 billion people with a combined GDP of about $3.4 trillion. This is expected to provide a huge economic boost to Africa, especially in the post Covid 19 phase.

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At a time when China has slowed its investments into the continent, India has an opportunity. The continent will also play an important role as the geopolitical thrust shifts towards the Indo Pacific.

“India has increased its economic activities in Africa, its investments have risen significantly in the last few years but now New Delhi must work out a mechanism with the AfCFTA to be able to expand bilateral trade further,” Pradeep S Mehta, Secretary General, CUTS International told India Narrative.

India

Mehta pointed out that India has traditionally maintained good relations with Africa. “India has remained politically aligned with the African countries and that gives an edge to New Delhi,” Mehta said.

Earlier, a report published by Observer Research Foundation (ORF) said that the AfCFTA provides a number of opportunities for the Indian firms and investors to tap into a larger, unified, simplified and more robust African market.

“It is critical for India to view Africa not just as a destination for short-term returns but as a partner for medium and long-term economic growth,” the report said.

AfTCA has been signed by 55 countries of which 54 are members of the African Union, which was instrumental in weaving the deal.

China digs in Africa with an eye on its coastline for military bases.(Photo indianarrative)

According to the World Bank, the AfCFTA presents a major opportunity for African countries to bring 30 million people out of extreme poverty and to raise the incomes of 68 million others who live on less than $5.50 per day.

The African Report, in November last year, noted that China, which has “incurred significant losses on the loans it granted to multiple countries” will be selective in extending financial assistance to countries in Africa.

That apart several African countries including Angola, Ethiopia, the Republic of Congo and Zambia, which received loans from China “are no longer in a position to repay the debt they owe” leading to rising concerns of a debt trap.

India is now Africa’s third largest trading partner.

“Africa, will be critical to India’s growth story in the remainder of this century. Eastern Africa especially is also growing in importance as India pursues its Indo-Pacific strategy,” the Financial Express quoted Ambassador Anil Trigunayat as saying.

In 2017-18 India accounted for 6.4 per cent of Africa’s total trade touching $ 62.6 billion. However, in the same year, trade between China and Africa stood at around $185 billion. Similarly, China’s investment in Africa as of 2020 amounted to $147.66 billion.

Africa can become a major source of raw materials including minerals and rare earth. “However, with the Chinese influence most of the mining companies are now owned by them,” Rao Narender Yadav, founder, India-Africa Today �a platform fostering co-operation and camaraderie between the two, said.

(This content is being carried under an arrangement with indianarrative.com)

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