Kerry presses India on WTO deal ahead of arrival

By Sanjeev Miglani

NEW DELHI Wed Jul 30, 2014 12:16pm IST

 


(Reuters) - U.S. Secretary of State John Kerry, on his way to India for an official visit, has pressed New Delhi to drop its opposition to global trade reforms, saying it was a test of the country's commitment to advance trade and investment liberalisation.

Kerry made the call in a newspaper article, penned along with U.S. Commerce Secretary Penny Pritzker, hours ahead of his arrival for talks aimed at revitalising ties that have been mired in disputes over trade, intellectual property rights and climate change.

India has threatened to block a worldwide reform of custom rules, saying it must be accompanied by a parallel agreement allowing developing countries more freedom to subsidise and stockpile foodgrains.
The deadline for the deal, which economists say could save members of the World Trade Organisation more than one trillion dollars eventually, is Thursday.

Kerry said India stood to gain by setting up a level playing field instead of erecting trade barriers.
"In this regard, as we work with our trading partners around the world, India must decide where it fits in the global trading system. Its commitment to a rules-based trading order and its willingness to fulfil its obligation will be a key indication," he said in the article in The Economic Times.

India and the United States have already clashed at the WTO, with Washington saying Delhi's 11th hour resistance could kill a deal that could create 21 million jobs.

Kerry is arriving in New Delhi later on Wednesday for an annual strategic dialogue, the first engagement with the government of Prime Minister Narendra Modi that took power in May promising to put India back on a high growth path.

So far, the new administration has moved slowly on reforms and its hardening of stance at the WTO suggests a more nationalist response on key issues than the Congress party's centre-left government.

Kerry said India and the United States were on the cusp of an "historic transformation" in their relationship and that Washington stood behind New Delhi's rise as a political and economic power.

"We are coming to India to deliver a single message: that the U.S. is prepared to be a full partner in this effort. We will work hand in hand with Prime Minister Narendra Modi and his government to promote open and liberal trade and investment, jobs training and closer strategic ties," Kerry and Pritzker wrote.

Such rhetoric, including calls to build India as a counterweight to China, have however fallen short of concrete progress in the past.

Disputes over protectionism and intellectual property rights have soured the business climate and India has remained cautious about committing to U.S. strategic designs in the region.

The relationship took a dive last year after an Indian diplomat was arrested in New York on charges of mistreating her domestic help, an episode that provoked outrage and resentment in New Delhi.

Modi himself has yet to make clear how closely he plans to work with Washington.

He was banned from visiting the United States after Hindu mobs killed more than 1,000 people, most of the Muslims, in 2002 while he was chief minister of his home state of Gujarat.

The Obama administration sought to turn a new page by quickly inviting Modi to Washington after his election, and he is due to travel in September.

(Additional reporting by Krista Mahr in NEW DELHI; Editing by Raju Gopalakrishnan)
 

WTO: EU, Aus-led group unite against India over Trade Facilitation Agreement

Jul 26, 2014 08:36 IST

#Australia   #EU   #European Union   #Food security   #India   #NewsTracker   #TFA   #Trade Facilitation Agreement   #World Trade Organisation   #WTO

Unconvinced by India's line that it will not sign the Trade Facilitation Agreement at World Trade Organisation (WTO) unless its food security concerns are addressed, a large block of global powers have joined hands against New Delhi in Geneva where negotiations on this matter are going on.

In two separate statements the European Union and an Australia-led group of more than two dozen countries have asked India not to veto the Trade Facilitation Agreement (TFA) of the World Trade Organization (WTO). "A decision to step away would be in no one's interest. It would seriously undermine the ability of the WTO to deliver for the future," warned the 25-country group led by Australia.

"In practice, it would also block the new capacity building initiatives to assist WTO Members implement the TFA. The new economic growth and jobs that are expected to flow from the implementation of the TFA would not become a reality. It would fundamentally undermine the prospects for progress on the post-Bali work program for the Doha negotiations and on the other decisions that Ministers took in Bali," the Australia-led statement said.

India has made it clear that it will not yield to the pressure of developed nations on pushing the WTO's Bali agreement on trade facilitation agreement without addressing New Delhi's concerns on food security issues. The matter was discussed in the Union Cabinet on Thursday.

India wants a concrete framework on finding a permanent solution for India's public stock holding issue and without that New Delhi will not adopt the TFA protocol.

World Trade Organisation director-general Brazil's Roberto Azevedo gestures during a press conference. AFP

Sharp differences have emerged between rich economies like the US and Australia and emerging nations, including India and South Africa, on implementation of the Bali package.

In a separate statement, the European Union said without adoption of the Trade Facilitation Protocol by July 31 a great opportunity to mobilise trade as an instrument for growth and development would be lost, and the credibility of the WTO, which has during the financial crisis proven its value as a firewall against protectionism, would be further damaged.In an apparent reference to India's concerns, the European Union said on food security, Bali meeting provided an open-ended solution which addresses effectively the concerns while WTO members continue to work for a permanent solution.

"So far, WTO members have jointly respected and honoured the Bali commitments. Serious work has been done over the last months and good progress been made, including on issues of interest to developing and least developed countries," it said.

"The proper and timely implementation of the Bali package as agreed by Ministers is of crucial importance to the WTO and all WTO members," the European Union added. "Without adoption of the Trade Facilitation Protocol by July 31 a great opportunity to mobilise trade as an instrument for growth and development would be lost, and the credibility of the WTO, which has during the financial crisis proven its value as a firewall against protectionism, would be further damaged," it said.

Urging member nations to respect the decisions taken by Ministers in Bali, the statement said the European Union is not ready to renegotiate basic elements or timelines that were agreed as integral part of the Bali package. "The EU is ready to work with all members to find a solution by the 31 July for Trade Facilitation and to intensify work for satisfactory and timely progress on all aspects of the Bali Ministerial decisions in accordance with the mandate," it said.

PTI

Vijay Mallya’s Kingfisher Airlines is king of defaulters at Rs 4,022 crore

Kingfisher has emerged as the country’s top non-performing asset after it has failed to repay loans of over Rs 4,000cr borrowed mainly from state-owned banks.

Sidhartha, TNN | Jul 17, 2014, 03.15AM IST

NEW DELHI: Vijay Mallya-promoted Kingfisher Airlines has emerged as the country's top non-performing asset (NPA) after it has failed to repay loans of over Rs 4,000 crore borrowed mainly from state-owned banks. It highlights the woes of lenders saddled with bad debt and in need to raise Rs 2.4 lakh crore over the next five years to meet the economy's growing funding needs.

At number two is Winsome Diamond & Jewellery (earlier called Su-raj Diamond), which owes banks over Rs 3,200 crore, followed by engineering firm Electrotherm India (over Rs 2,600 crore).

Together, the top 50 defaulters had outstanding of over Rs 53,000 crore at the end of December 2013, the period for which data was submitted to the finance ministry. There were at least 19 companies on the list which had outstanding amount of over Rs 1,000 crore.

Typhoon churns towards Japan, prompting calls to evacuate

By Elaine Lies

TOKYO Tue Jul 8, 2014 1:34am EDT

 

(Reuters) - Hundreds of flights were cancelled in Japan and more than 500,000 people urged to evacuate as a powerful typhoon brought torrential rain and high winds to southwestern islands and was forecast to reach Tokyo later in the week.
Typhoon Neoguri weakened from its original status as a super typhoon but remained intense, with gusts of more than 250 km per hour (155 mph). It was powering towards the Okinawa island chain where emergency rain and high-seas warnings were in effect.
The storm will be at its most powerful as it passes Okinawa, some 1,600 km (1,000 miles) southwest of Tokyo on Tuesday, but the Japan Meteorological Agency (JMA) warned of heavy rains and potential flooding in Kyushu, the westernmost of Japan's main islands, as well as heavy rain in the rest of the nation as the storm turns east.
"People must take the utmost caution," Keiji Furuya, state minister in charge of disaster management, told a news conference.
One man was missing after his boat was swamped by high waves, NHK national television said. Several people suffered minor injuries from falls.
More than 50,000 households in Okinawa lost power and an oil refinery halted operations. Television footage showed street lights rocking in high winds and branches being blown down largely deserted streets.
There are no nuclear plants on Okinawa but there are two on Kyushu, which lies in the area through which the typhoon is likely to pass after hitting Okinawa. There is another on Shikoku island, which borders Kyushu and could also be affected.
All are shut down due to national policy and the Fukushima Daiichi nuclear plant, which was wrecked by an earthquake and tsunami in March 2011, is on the other side of the country.
"When the wind blows most strongly, it's impossible to stand. You have to hold on to something," said Kei Shima, a self-employed Okinawa resident in her 30s.
"The lights are fading in and out, like the house is haunted. The rain is getting stronger and falling sideways."
Neoguri was roughly 110 km (68 miles) southwest of Kumejima of island at noon (0300 GMT) and moving north at 25 kph (16 mph), with sustained winds of 180 kph (110 mph).
Kadena Air Base, one of the largest U.S. military facilities on Okinawa, was on its highest level of storm alert and all outside activity was prohibited.
Nansei Sekiyu KK, a Japanese refiner wholly owned by Brazil's Petrobras, said it had suspended oil refining operations at its 100,000 barrels-per-day Nishihara refinery in Okinawa on Monday evening.
A JMA official said the storm will maintain its strength as it heads north but gradually turn to the east, making landfall in Kyushu before raking its way up the main island of Honshu and coming close to Tokyo on Friday.
"But it will be weaker by then, so that Tokyo can mainly expect a lot of rain, and maybe some gusts of wind," he added.
Around two to four typhoons make landfall in Japan each year but they are unusual in July.
(Additional reporting by Oliver Fabre,; Editing by Nick Macfie)