Tony Blair Seeks International Trade Deals With Africa

Outgoing British Prime Minister Tony Blair is seeking to forge new international trade agreements in the African continent. This will be Blair's valedictory trip before he steps down after 10 years in power on June 27. His former Finance Minister Gordon Brown takes over as Prime Minister. The trip is likewise aimed at strengthening international trade with Africa.

Blair's itinerary includes trips to Libya, Sierra Leone, and South Africa. He is taking the trip as an opportunity to gain some grounds in terms of progress. The trip is a crucial one since the Group of Eight will have its annual summit in Germany. Blair will be looking forward to include international trade among his agenda. In addition, a number of African states were asked to take part in the G8 summit, for South Africa is a vital player in the said upcoming meeting. One of Blair's biggest achievements as president of the G8 was to resolve Africa's growing social concerns such as poverty, famine, and diseases. In 2004, in his capacity as president of the Group of Eight, Blair established the Africa Commission.

Blair is initiating steps to put a stop to the four-year old hostilities in the Darfur region of Sudan. Less than 200,000 lives have been lost and about two million left homeless since the conflict began in 2003. The sending of an African Union-United Nations peacekeeping force of 23,000 soldiers was approved by the Security Council. The United States have vowed to implement international trade sanctions on Sudan.

Moreover, the outgoing British leader has stamped his mark in Africa. He sent British soldiers to Sierra Leone in the year 2000 in order to beef up the United Nation's efforts to put an end to the civil war. Blair's visit to Libya in 2004 ended its international trade hiatus by terminating their acquisition of prohibited weapons and paying the damages for the bombing of a Scottish airliner in 1998. He is considered as the first British head of state to visit the country after 60 years.

Meanwhile, the British leader is also set to meet with South African President Thabo Mbeki during the African visit, wherein a major international trade policy will be announced. Nonetheless, the people of Africa will always remember Tony Blair, the former leader of one of the most dominant countries in the world, for the contributions he has made in handling international trade talks as well as his achievements in one of the poorest regions in the world.

India to Sign International Trade Deal with Mexico

India is keen to boost its economic relations with Mexico by signing a new international trade deal. According to reports, India is ready to ink a BIPA (bilateral investment protection agreement) with Mexico early this week. It must be noted that the BIPA would be the first of such kind of international trade pact to be signed by India with a signatory of the NAFTA (North American Free Trade Agreement). Other signatories of the NAFTA include the United States and Canada.

The proposed international trade agreement is expected to be inked by Indian Finance Minister P. Chidambaram and his Mexican counterpart Eduardo Sojo Garza-Aldape. It must be noted that the Mexican official is due to visit New Delhi on May 21. Meanwhile, the members of the cabinet are expected to approve the proposed BIPA.

The North American international trade bloc was formed by the NAFTA. The North American Free Trade Agreement was signed by the US, Canada, and Mexico on January 1, 1994. The economic bloc initially set a schedule to remove duties in order to encourage free trade among the members. At present, the North American trade group has evolved into a powerful trade bloc, which has established strong trading ties with Latin American, European, and African countries.

As a member of the North American trade group and a key partner of economic powers such as the EU, Mexico offers many opportunities for India in terms of investments and international trade. Meanwhile, India is keen to deepen its economic relations with the North American nation. It must be noted that India has been able to maintain good ties with Mexico. In fact, government leaders from both sides have met in on several occasions.

The strong ties between India and Mexico are reflected in their growing international trade. In 1999, trade between the two nations recorded a value of $251 million. But current trade between India and Mexico has crossed the $1.5 billion mark. Bilateral trade between the two parties continues to grow with the increase of investments and deals.

India's key exports to Mexico include pharmaceuticals, chemicals, engineering goods, jewelry, gems, and textiles. Meanwhile, Mexico's major exports to India include petrochemicals and crude. According to reports, Indian businessmen have invested a total of $1.6 billion in more than 67 industries in Mexico. Joint ventures have also been inked in the IT and pharmaceutical sectors. The signing of the BIPA is expected to further boost the international trade ties between India and Mexico. India's booming economy continues to attract more foreign investors and partners in international trade.

US Wants EU and China to Hold International Trade Talks

A top US official said that the United States wants the European Union to adopt its strategic approach in resolving economic and international trade issues with China. He added that such move could unify the efforts of wealthy countries to seek more reforms in China's trade practices. A year ago, US Treasury Secretary Henry Paulson headed a high-level delegation to China in order to launch the first round of the Strategic Economic Dialogue between the US and China. The international trade talks have been aimed at bridging gaps and improving the economic relations between the two countries.

While the US is seeking to resolve international trade issues with China, the European bloc is also keen to deepen its economic ties with the Asian nation. With its rapidly expanding economy, China poses as a potential partner to European countries in terms of business and trade. Needless to say, the efforts of the EU to strengthen its relations with China are affected sometimes by conflicts of interests within the European bloc. Until now, EU states are in dispute on how to deal with low-cost exporters such as China.

It must be noted that China's cheaper export products continue to attract more buyers in Europe. While the cheap cost of Chinese products largely benefits European consumers, it also affects many businesses across Europe. But last week, US Treasury Deputy Secretary Robert Kimmitt told journalists that the EU might want to adopt the same strategy used by the US in dealing with international trade issues with China. The US official also said that China and Japan were moving towards a strategy similar to that of the US-China economic dialogue.

One of the issues affecting the international trade ties between the US and China is the low value of the latter's currency. It must be noted that the US government has long called for China to revaluate its yuan. The US complained that the low value of the Chinese currency gave the country an unfair advantage over other nations in international trade. The low value of yuan has also been regarded as one of the key factors behind the huge trade deficit of the US.

Like the US, the EU has also voiced its concerns regarding the Chinese yuan. The EU has also said that it would resolve international trade issues with China through negotiations rather than litigation or confrontation. The US-China Strategic Economic Dialogue is due to take place later this month. The talks have been aimed at cementing the international trade relations between the US and China.

IMF Head Urges US Congress to Save Global Trade Talks

International Monetary Fund Managing Director Rodrigo Rato recently called for the US Congress to do something in order to save the Doha Development Round. Particularly, the IMF chief urged the US Congress to extend the trade promotion authority of the Bush administration. The trade negotiating authority allows Washington to negotiate free trade agreements that must be approved or rejected by the Congress without making any change. The trade authority has been considered as crucial to the global trade talks. Without the TPA, it would be harder to encourage the members of the World Trade Organization to reach a compromise in the negotiations. The extension of the trade authority would also give the WTO members more time to settle their differences and reach a global trade agreement.

In a speech delivered at the US State Department, Mr. Rato said that trade negotiators have the chance to reach a "once-in-a-generation agreement." But he also said that the global trade talks could still fail if the US Congress does not act immediately. According to him, the renewal of the trade promotion authority was important to the Doha Development Round.

It must be noted that the trade negotiating authority, otherwise called as "fast-track authority," enables the Bush administration to negotiate trade pacts that must be approved or opposed by the Congress without making changes. Analysts said that the members of the WTO might lose their interest in the global trade talks if the US Congress refuses to extend the trade authority.

Meanwhile, Washington is doing its best in order to convince the Congress to renew the fast-track authority. Needless to say, there are doubts whether the Democrat-controlled Congress would renew the TPA. So far, the Congress has conducted a step-by-step approach in reviewing the existing US policies on global trade. But the Congress has not yet introduced any legislation concerning the renewal of the trade authority.

The World Trade Organization is pushing hard to complete the global trade talks before the end of this year. Recently, WTO Chief Pascal Lamy visited the US in an effort to promote the Doha Round and seek the support of the US Congress. The global trade talks were launched in Doha, Qatar in November 2001. The Doha Round has been aimed at liberalizing commerce and boosting the world economy. Key issues blocking the progress of the negotiations include the reduction of agricultural subsidies and tariffs on manufacturing products.

South Korea to Launch International Trade Negotiations with EU

Earlier this week, South Korea started a series of talks with the European Union regarding a proposed international trade deal. But the negotiations were expected to be less contentious compared with the talks between the United States and South Korea that were concluded last month. It must be noted that for ten months, the US and South Korea had worked hard in order to conclude their free trade talks and come up with an international trade agreement.

The start of the negotiations between South Korea and the EU comes amidst the plans of the EU to begin its trade talks with the Association of Southeast Asian Nations. It must be noted that on Friday last week, the European bloc and the members of the ASEAN agreed to launch their negotiations that could lead to the conclusion of a comprehensive trade agreement. The EU decided to boost its economic ties with the ASEAN members as more bilateral trade deals are being negotiated and signed in the region. In fact, free trade deals were recently and separately inked by the United States, South Korea, Australia, New Zealand, India, and China.

The proposed EU-South Korea international trade pact is expected to boost the position of South Korea as a center of free trade in Asia. Likewise, the agreement is expected to strengthen the position of the European bloc in Asia in terms of trade. South Korean Trade Minister Kim Hyun-jong said that the two parties would work closely in order to come up with a "meaningful progress" during the five-day talks that would take place in Seoul.

Officials of the South Korean government said that the proposed international trade pact with the EU would pose fewer problems compared with the free trade agreement with the US. It must be noted that negotiations between the US and South Korea were delayed due to certain trade differences. The proposed US-South Korea trade pact has also faced the opposition of many South Koreans. Meanwhile, the EU and South Korea have not yet set a specific deadline for the conclusion of their negotiations.

At present, the European bloc is the largest investor in South Korea. The EU is also the second-biggest international trade partner of South Korea, next to China. In fact, two-way trade between the EU and South Korea is valued at around $80 billion. EU Trade Commissioner Peter Mandelson said that the proposed international trade pact with South Korea would be a complementary deal to the Doha Development Round. Meanwhile, Mr. Hyun-jong said that the trade agreement would largely benefit some of his country's exports like flat-screen TVs and automobiles.

Mauritius and India Close to International Trade Pact

Mauritius and India are keen to strengthen their existing diplomatic and international trade ties. In fact, the two countries are expected to sign a PTA (preferential trading agreement) soon. But the proposed PTA is expected to eventually lead to the signing of a Comprehensive Economic Cooperation and Partnership Agreement between the two parties. The CECPA would be covering investments, services, and products in line with India's international trade pact with Singapore.

Sources said that the Indian government would offer a number of concessions to Mauritius, thus allowing it to export duty-free products such as rum, refined sugar, and million of garments to India. India's Cabinet Committee on Economic Affairs is expected to review the proposed preferential trading agreement. Under the proposal, India would allow Mauiritius to export one million pieces of garments to India. While the one million garments would be exported without any sourcing condition for yarn, the next set of two million garments would be covered by a sourcing condition on yarn. The proposed PTA seeks to improve international trade between India and Mauritius.

Besides garments, Mauritius would also be allowed to export around 15,000 metric tons of duty-free sugar and rum. Under the proposed PTA, India is also expected to cut or remove its duties on some products. The move seeks to improve Mauritius' exports to India. It must be noted that the Trade and Economic Relations Committee under the leadership of the Prime Minister has already given its go signal to the proposed PTA. Meanwhile, economic cooperation and investment would be the focus of the CECPA between India and Mauritius. The proposed international trade pact is being modeled after India's Comprehensive Economic Cooperation Agreement with Singapore.

The proposed international trade deal with Mauritius would cover trade in services and goods, general economic cooperation, investment, and customs cooperation. Sources said that India and Mauritius have already been able to reach a consensus on goods. For its part, Mauritius has offered to ease its policies regarding the issuance of work visas to Indian professionals, particularly those who are specializing in finances. In fact, Mauritius has already reformed its policies in order to allow Indian chartered accounts to audit the accounts of international business companies. Mauritius has also proposed to grant a permanent resident status to Indian professionals working in financial sectors. Recently, Mauritius has allowed India's Financial Technologies, which is the promoter of multi-commodity futures, to establish a pan-African commodities exchange. The proposed PTA is expected to further deepen the international trade ties between the two countries.

Bush Calls for Approval of International Trade Pact with Colombia

US President George W. Bush recently called for the Congress to give Colombian President Alvaro Uribe a fair hearing regarding a proposed free trade agreement between the US and Colombia. Last Wednesday, Mr. Bush also urged the Congress to approve the proposed international trade pact despite scandals affecting the Colombian government. In a speech delivered at the White House South Lawn, the US leader said that Mr. Uribe was in Washington in order to speak strongly about his record. Mr. Bush also thanked the Congress for giving the Colombian leader a hearing. It must be noted that Mr. Uribe is the staunchest ally of Mr. Bush in the Latin America. The proposed FTA seeks to improve the international trade ties between the US and Colombia.

Mr. Uribe's morning meeting with Mr. Bush marked the start of a three-day lobbying trip to the US. The Colombian leader visited Washington in order to revive the FTA and seek the support of the US Congress for the proposed international trade deal. The US-Colombia free trade agreement was signed by the Bush administration in November 2006. But the proposed FTA is still in the US Congress for review and approval. It must be noted that the Democrat-controlled Congress has raised concerns regarding the record of Colombia on human rights, as well as its ties with right-wing paramilitary groups.

But during his speech last Wednesday, Mr. Bush urged the Congress to consider the benefits of the proposed international trade agreement with Colombia. Besides Colombia, the US has also signed separate free trade agreements with Panama and Peru. The US leader said that it was very important for Colombia to maintain ties with governments that protect the dignity and rights of people.

Mr. Bush stressed that the proposed FTAs with Colombia, Panama, and Peru were more than just international trade pacts. Meanwhile, Mr. Uribe thanked the US for its assistance, saying that his country needed security for all people. It must be noted that his country and the US have been involved in joint efforts to combat drug trafficking, promote democracy, and eliminate terrorism.

The proposed international trade agreement with Colombia has been opposed by the Congress due to concerns of possible job losses in the US. Other issues raised by the Congress include Colombia's military focus and record on the protection of union leaders. If the proposed FTA is approved, it would significantly boost international trade between the US and Colombia. It must be noted that the US has been working to strengthen its presence in the Latin American region in terms of trade.