TRADEWINDS
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SRI LANKA
India agrees to import Vanaspati Oil from Sri Lanka under FTA |
India has agreed to buy Vanaspati from Sri Lanka under the FTA at zero duty. India has also acceded to the request of the Sri Lankan Desiccated Coconut industry to permit import of 500 tonnes of DC at reduced duty into India under FTA against the enhanced duty proposed under the Bangkok Agreement. Further, India has also agreed to the import 2500 tonnes of pepper at zero duty in addition to unlimited quantities of pepper under the advance licence scheme. Mr. K T Chacko, the Director General of Foreign Trade of India, made these commitments while visiting Sri Lanka along with a high-powered business delegation. Mr. Chacko visited Sri Lanka to resolve the issue of Vanaspati export in view of media reports that India was blocking duty free import of items such as Vanaspati from Sri Lanka.
With the signing of the Indo-Lanka Free Trade Agreement (FTA) many Indian companies went to Sri Lanka and invested in Vanaspati oil factories. India imports Vanaspati Oil from these companies through NAFED. Sri Lankan authorities have granted quota to these companies for exporting Vanaspati Oil to India. There are controversies relating to the issue of quotas.
Chidambaram launches India-Sri Lanka Chamber of Commerce and Industry
The Indian Finance Minister, Mr. P Chidambaram inaugurated India-Sri Lanka Chamber of Commerce and Industry while visiting Sri Lanka on the eve of the Commonwealth Finance Ministers Conference. On this occasion he said that that the Free Trade Agreement (FTA) signed between the two countries six years ago was progressing smoothly and hoped that the their bilateral trade would cross US$ 3 billion mark by the next year. Indo-Sri Lanka trade crossed 1 billion USD in 2002 and 2 billion USD in 2005.
"Over 90% of Sri Lankan exports to India are under the FTA and about 45% of Indian exports to Sri Lanka are under the FTA. Both countries have benefited and going to benefit by free trade and will benefit even more greatly if we are able to conclude the Comprehensive Economic Partnership Agreement." The Minister said.
Stretchline sets up manufacturing unit in India
Stretchline, a leading fabric company with international outreach, has set up a manufacturing plant in India through a joint venture with Spica Elastic Private Limited, India’s largest elastic manufacturer.
Kerala offers shopping discounts to passengers of Sri Lankan Airlines
The Kerala Government has signed an MoU with the Sri Lankan Airlines to promote its territory as a shopping destination for Sri Lankans. Business establishments in Kerala, including those dealing in jewellery, handicrafts and Ayurveda have agreed to offer promotional discounts of 10-15% to the passengers of Sri Lankan Airlines. The Kerala Government has prepared a booklet listing these establishments along with their products and the discounts offered. These booklets will be distributed among Sri Lankan Airlines passengers flying to Kerala.
Sri Lanka to import Indian Handloom Machinery
Sri Lankan Cabinet has approved the introduction of handloom machinery ‘Tara" which is widely used in India. The island nation will initially import 10 such machines for a trial run in the local textile industry. Each machine costing USS$ 1,273 is expected to turn out 60 inch width textile fabric. The Sri Lankan Government is planning to sign an MoU with the Indian manufacturer of ‘Tara’ for supply of these machines.
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CHINA
Chinese import of Iron Ore slowing |
Chinese import of iron ore is slowing. In the first none months of the current year, China imported iron ore worth 247 million tons, up 24 percent year on year but still 7 per cent lower than the growth rate last year. Iron ore import prices have also fallen mainly due to increase in domestic output. It is expected that China will import iron ore worth more than 320 million tons in 2006.
China hikes export taxes
China has raised export taxes by 5 per cent on coal, coking coal, crude oil and by 10 percent on iron, steel billets, steel alloys and raw materials used to produce rare earth metals in view of their rising domestic prices. In addition, the export tax on unrefined copper has been hiked from 10 to 15 percent and Aluminium from 5 to 15 percent. It has also been decided to reduce import duties on coal, refined oil and aluminia. The new rates came into effect from November 1, 2006.
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SYRIA
Syria asks importers to insure only with local firms |
The Syrian Ministry of Finance has opened a new market for private-sector insurance firms by authorizing Syrian importers to insure their foreign purchases through any of the insurance firms licensed in the country including traditional and Islamic insurance firms. The decision taken by the Ministry partly modifies an earlier decision scrapping the monopoly of the Syrian Insurance Company (SIC) on the insurance of imports but had allowed importers to insure from any company inside or outside Syria. The new decision now forces importers to insure in Syria but gives them freedom to choose between the licensed firms operating in the market and SIC. The decision is not expected to adversely affect Indian exports, since imports from other countries will also become costlier.
Syrian importers need not disclose sources of their funds
The Central Bank of Syria has taken a new decision to encourage Syrian importers to conduct their business with local banks. In a decision issued on 15th August, the Central Bank has allowed Syrian importers a freedom to disclose the sources of their funds, provided the funds are utilized for financing import.
Tartous Port invites tenders for building grain silos
The Port of Tartous has invited global tenders for the building of a new grain silos on a turnkey basis. The silo will have a capacity of 100,000 tons. The bid bond is set at EUR 300,000,00 and the closing date for submission of the tender documents has been set at 7th November 2006.
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YEMEN
Yemen waives off import duty on select food items |
The Yemenese Cabinet has exempted some of the food items, including eggs, meats and poultry from payment of customs tariff. The Cabinet has also done away with pre-approved import permissions. The decisions were taken on the basis of a report submitted by the Minister of Industry & Trade on rising prices of certain foodstuffs.
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ETHIOPIA
COMESA to form customs union by 2008 |
At the 11th COMESA Summit held in Djibouti in November 2006, member states decided to form a customs union by 2008 and a full Monetary Union involving the use of a common currency issued by a common Central Bank by 2025. In the year 2000, COMESA had launched the first ever African Free Trade Area. With a population of over 374 million and a total GDP of 203 billion US dollars, COMESA has now become one of the largest African economic bloc with 20 member states including Angola, Burundi, Comoros, DRC, Djibouti, Egypt, Ethiopia, Eritrea, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Swaziland, Sudan, Uganda, Zambia and Zimbabwe.
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Libya
Foreign companies must have local partner in Libya |
Libyan Ministry of Economy and Trade has issued two regulations amending the existing law on activities of foreign companies in Libya. As per the new regulation (Law no. 443), it is mandatory for foreign companies to have a Libyan partner who should have at least 35% share.
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GREECE
Indian Exports to Greece up by 68.5 % |
The value of Indian products that is being absorbed by the Greek market is nine times greater than that of Greek goods that enter the Indian market. Recent data from the National Statistics Agency indicates that Indian exports to Greece for the period January-August 2006 totaled $430.3 million, 68.5 % higher when compared to the corresponding last year figure, that stood at $255.4 million. Greek exports to India, for the same period, amounted to $39.5 million, 40.7% higher than past year’s figure of $28.1 million. Greek exports to India comprise mainly of cotton, denim fabrics for the jeans industry, components and mechanic parts for measurements of gases, liquids and electricity, and finally asbestos and electric device drivers. Indian exports to Greece comprise of a wider range of products including cuttlefishes, dry fruits, sesame seeds, kerchiefs, threads from silk, leather clothing, footwear, various vehicle types, furniture, antibiotic medicines, metal-sheets, chemicals and petroleum products.
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UNITED ARAB EMIRATES
ECSSR organizes energy conference |
Emirates Centre for Strategic Studies & Research (ECSSR) organized its Annual Energy Conference in Abu Dhabi from Nov. 19-21, 2006 on the theme "China, India and the United States: Competition for Energy Resources". Mohammed bin Dha’en Al Hameli, Emirates Minister for Energy while inaugurating the Conference on November 19 said that UAE was working on increasing its capacity to 2.7 million bpd by the end of this year. He had declared previously that the UAE had decreased its production to 100.000 bpd due to OPEC’s decision in order to create balance in the world oil market.
Dubai World signs MoU with TATA for consulting services
On November 20, Excellence Center (TEC), a corporate department of Dubai World, signed an MoU with India’s Tata Strategic Management Group (TSMG) for collaboration in areas of mutual strategic interests and for outsourcing consulting services. Excellence Centre (TEC) is a corporate department of Dubai World mandated with helping group companies in business excellence. TSMG is a member of the TATA Group of India, and is recognised for the role it has played in the success of TATA’s diversification and global expansion.
Etisalat enters into joint venture with VSNL, three others
Etisalat has entered into a $400 million joint venture with four telecom operators linking the Middle East, India and Western Europe with high-capacity undersea cables. The new alliance will enable the UAE telecoms giant to serve the growing traffic in corporate data communications between the UAE and India and provide added bandwidth for internet and telecommunications. Videsh Sanchar Nigam (VSNL), India’s largest provider of international telecom services, and Etisalat, Saudi Telecom, Telecom Egypt and Telecom Italia Sparkle, signed the memorandum of understanding.
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Armenia
Armenia to lease out Railways for 40 years |
Armenia and the World Bank have worked out a railway development program under which Armenia will give its railway system to a private company on a 40-year lease. A study by the World Bank has estimated that Armenian railways need some 180 million dollars investment for modernisation. The Armenian government is currently in the process of preparing tender documents. The World Bank pledges US$170 million credit to the winner of the contract.
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CONCOR slashes freight from Kanpur to Mumbai CONCOR has reduced the freight on containers between Kanpur and Mumbai. As per a notice issued by CONCOR on 6 November 2006, the freight on 40’ light weight container from ICD-JRY to JNPT has been slashed by Rs. 1200 to Rs. 1850 in order to bring it at par with the freight between TKD and JNPT. The Kanpur Chapter of FIEO has been officially pursuing the issue of bringing parity between the freights charged by CONCOR on cargo from JNPT Mumbai to ICD-JRY Kanpur and TKD-Delhi saying that the two inland container depots were equidistant from Mumbai Port. Meanwhile, the Kanpur Chapter of FIEO is also seeking permission from Railway Authorities to utilize a piece of surplus Railway land for the construction of a second approach road from the industrial area of Kanpur to JRY-ICD, as the existing approach road is not only in bad condition but also suffers from traffic jams and peak hour restrictions. The proposal for the second approach road has already been approved by the Uttar Pradesh State Industrial Development Corporation (UPSIDC). |
