TRADEWINDS
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CHINA
China to cut import tariffs on 209 products |
Chinese Finance Ministry said on May 21 that the country would impose extra export tariffs while cutting import duties from June 1 to narrow its widening trade surplus. The Ministry said a total of 142 low-end and resource products would bear additional export tariffs.
According to the Ministry, China would impose 5 to 10% export tariffs on more than 80 steel products, including steel wires, sheets and plates. Export tariffs would also be raised from 10% to 15% on primary commodities, including steel billets, steel ingots and pig iron. 10% tariff would be imposed on natural graphite, rare earth metals, refined lead, dysprosium oxide, terbium oxide and some non-ferrous meal wastes and scraps. Ammonium metagungstate, molybdic oxide, ammonium molybdate, sodium molybdate and magneslte may witness a tariff hike by 5-15%. Similarly, nickel, chromium, tungsten, manganese, molybdenum and rare earth metals may face 10 to 15% hike. Tariffs would be up from 5-10 % to 10-15% on coal-tar, ferroalloy, unrolled zinc, fluorite and non-coniferous timber. The Ministry said the move would help rein in the growth of high polluting energy guzzlers and the export of resource products.
To facilitate import, China will lower import tariffs on 209 products on a temporary basis, including resources products and key component parts, according to the Ministry. Import tariffs on coal and fuel oil will not exceed 3%, while tariffs on imported component parts for televisions, refrigerators, and machineries will be levied at between 2 and 6%. To boost consumption, China will also lower import duties on construction materials, electronic appliances, kitchenware, and infant food by 6-17 per cent.
Overseas stock exchange may set up office in China
China securities regulator on May 20 unveiled management rules that give green lights to the establishment of representative offices of overseas stock exchanges in the country. The rules come into effect from July 1, 2007. To be eligible, the stock exchanges should be in operation for more than 20 years and have fine financial records, according to the rules. Meanwhile, their home country should have signed memorandum of understanding on supervision cooperation with the China Securities Regulatory Commission (CSRC). The representative offices can only do non-operating activities including liaison, promotion and research, the rules stated. The rules also apply to the stock exchanges in Hong Kong, Macao and Taiwan.
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COLOMBIA
Indo-Colombia bilateral trade crosses 400 US dollars |
Total bilateral trade between Colombia and India during 2006 stood at US $410 million. Colombia’s total imports from India during this period were worth US $346.41 million while its total exports to India were US $62.85 million.
The top ten items imported from India includes equipment for motor vehicles; vehicles other than railways; organic chemicals; cotton yarn and woven fabrics of cotton; pharmaceutical products; iron and steel; machinery and mechanical appliances; man-made staple fibers; plastics and articles thereof and man-made filaments. Principal export items from Colombia to India are iron and steel; wood and articles of wood; mineral fuels, mineral oils; copper and articles thereof; salt, sulphur, earths; aluminium and articles thereof; raw hides and skins; other base metals; machinery and mechanical appliances; plastics and articles thereof.
There is considerable scope for Indian companies to set up joint ventures for manufacture of pharma products, engineering goods, IT products, textiles etc. in Colombia.
Colombia keen to organize India-specific event this year
In a high-level meeting with Indian Ambassador recently, Colombian economic authorities have expressed the desire to organize a mega India-specific event in Colombia this year.
In the meeting, also joined by Colombian Vice President and Foreign Minister, the two sides discussed many issues such as facilitation of interaction through simplification of procedures, including the procedure for business visas, organizing regular high-level bilateral visits, expeditious conclusion of bilateral agreements like BIPA and Double Taxation etc.
The Ambassador also paid a visit to Medellin, the major commercial centre of Colombia which imports Indian motorcycles and auto-parts. Discussions were held with major importers of Indian auto-parts to identify ways and means of increasing Indian exports of these products. Bajaj and Yamaha motorcycles are in great demand here and the Ambassador visited the Yamaha assembly plant.
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SAUDI ARABIA
Saudi Arabia to build two more economic cities in 2007 |
Saudi Arabia will build two more economic cities this year, raising the total number of economic cities in the country to six. The two economic cities will be built in the Northwest and in the Eastern Province of the Kingdom. The six economic cities are expected to contribute US $150 billion to the GDP by 2020.
Saudi Arabia opens new sectors for foreign investments
Saudi Arabia has announced on March 25 that it will allow foreign investment in some vital sectors such as insurance services, wholesale and retail trade, air and train transport and communication services. The negative list of investment was also revised to comply with Saudi Arabia’s commitments to WTO. The new list excludes distribution services, wholesale and retail trade including medical retail services.
Other sectors open to foreign investment are distribution of cinema films and video cassettes, transportation of passengers inside cities by train and satellite transmission services. Sectors, still out of bounds for foreign investors, include recruitment and employment services including local recruitment offices, real estate brokerage, audiovisual and media services, land transport except transportation by train within cities, services rendered by midwives, nurses, physiotherapists and paramedics, fisheries, blood banks and quarantines.
The National Commercial Bank in its report has estimated that Saudi Arabia requires investment worth US $600 billion to achieve its economic objectives. By 2012, the country will implement 419 projects at a total cost of US $267.3 billion, especially in construction, petrochemicals, oil & gas, water & electricity and industry.
According to experts, there is a good scope for India to set up joint venue and private investment companies in the field of industry, energy, petrochemicals, etc. in Saudi Arabia.
Expected Investment in various sectors during next 20 Years
| Sector | Billion US$ |
| Electricity | 114.66 |
| Water | 88 |
| Telecommunications | 58.66 |
| Infrastructure | 138.66 |
| Petro-chemicals | 92 |
| Gas | 50.13 |
| Agriculture | 28.26 |
| Technology & Information | 10.66 |
| Railways | 8 |
| Housing and Services for Riyadh | 293.33 |
Upcoming education projects in Saudi Arabia
The Saudi Government has announced US $2.4 billion King Abdullah Project for developing general education in the country. The time period for implementing this Project is six years. Under the Project, an independent commission will be established which will not be affiliated to the Ministry of Education. The commission will be under the Ministerial Committee for Administrative Organisation. The Project consists of four main programmes: development of the educational curricula; re-training and qualifying of teachers; improvement of the educational environment; and non-curricula activities.
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SRI LANKA
Air India Express launches daily flight to Colombo |
The low cost Indian carrier, Air India Express started its daily flight between Chennai and Colombo on 25th March 2007. Now there would be over 250 flights every week from Colombo to Indian destinations. This would boost trade and tourism between the two countries.
Air India Express is the third Indian domestic carrier after Jet Air and Air Sahara to add Colombo to their international destinations. It has appointed Millennium Transportation Ltd., a member of the Hayleys Group, as its GSA. The airline fleet consists of the latest Boeing 737-800 aircraft with a seating capacity of around 180. It will have a single class, i.e. economy. The airline is also looking at operating direct flights between Colombo and other Indian destinations in the future.
Air India
Express currently offers flights to seven international destinations; Dubai,
Sharjah, Abu Dhabi, Al Ain, Muscat, Salalah and Singapore from nine Indian
cities, Kozhikode, Kochi, Thiruvananthpuram, Mumbai, Delhi, Pune, Amritsar,
Chennai and Mangalore.
India Lifts restrictions on Lankan tea and garments
Sri Lankan Minister of Export Development and International Trade Prof. G L Peiris welcomed India’s gesture in removing port restrictions applied on the exports of tea and apparel from Sri Lanka under the Indo-Sri Lanka FTA. This was in direct response to his request made with Indian Commerce Minister Kamal Nath during CEPA talks in Colombo on March 28.
Indian government has announced that 3 million pieces out of the quota of 8 million pieces given under the FTA to Sri Lanka will be allowed at zero duty without any restriction on sourcing of fabrics.
USD 300 Million ADB loan for Colombo Port
The Government of Sri Lanka entered into a USD 300 million loan agreement with the Asian Development Bank (ADB) for the Colombo Port expansion project. Secretary to the Ministry of Finance and Planning Dr. P B Jayasundera said this is a public and private partnership project and the total investment will be over USD 780 million. Apart from this USD 300 million, the Sri Lankan Government will provide USD 180 million for the project. The balance investment will be pumped through private sector. The project is scheduled to be completed by 2010, he said.
Sri Lanka may commence indigenous oil production in 2009
Sri Lanka may start producing its own oil and gas by 2009 from hydrocarbon accumulation in the Mannar Basin, a senior Sri Lankan official said. Neil De Silva, Director General of the Petroleum Resource Development Secretariat said there is a 70% chance of finding hydrocarbons in the Mannar Basin. India has also found sizeable sediments on its side of the Basin.
So far two exploration blocks have been allocated to India and China. However, the final decision on which block to be given to which country has not been made by Colombo yet. According to Mr. Silva, it will take until 2008 to acquire the exploration licences up to 2009 to explore petroleum and the complete appraisal and development of oil and gas production is expected to be completed by 2012.
Colombo Dockyard to manufacture two Indian vessels
Colombo Dockyard Limited has received permission from the Indian government to go ahead with manufacturing two passenger vessels valued at US $36.4 million. According to Colombo Dockyard Limited Managing Director Mangala Yapa, the ships are for a private Indian Company. Following several rounds of discussions and calling of tenders by the Indian Government, Colombo Dockyard received permission to commerce with the project. It is said that these ships will be the largest passenger vessels manufactured by Colombo Dockyard. The ships will be operating between the Lakshadveep Island and the mainland to ferry back and forth passengers.
Sri Lankan pepper exporters hit new destinations
Since India restricted pepper imports from Sri Lanka to 2500 MT in August last year under FTA, local pepper exporters were able to capture steady markets in USA, Europe and Middle East
Chairman and Managing Director of Sindbad Pvt. Ltd. and Past Chairman of the Spices and Allied Products Producers’ and Traders’ Association (SAPPTA) and member of the Management committee, M.C.M. Zarook told the Daily News that Sri Lanka was able to export nearly 1700 MT of pepper to Europe, USA and Middle East last yearn
