US Imposes Global Trade Sanctions on Sudan

The Darfur situation has severely strained global trade relations between the United States and Sudan. This is in the light of the recent economic sanctions the U.S. imposed on the African country. The move is aimed at forcing Sudan's leaders to end hostilities in Darfur once and for all. The implementation of the global trade sanction was condemned by government officials of Sudan, claiming it was "unjust" and "badly timed." With the sanction, 31 establishments and three key personnel will be barred from establishing any business with U.S. banks or financial institutions.

The imposing of the sanction by the United States on Sudan received both criticism and approval. China, one of Sudan's top global trade partners, claimed that Sudan needs all the economic help it can get since this is a means by which the crisis in Darfur can be addressed. Likewise, South Africa's representative to the United Nations questioned the purpose and appropriateness of the embargo. South Africa provided 7,000 soldiers to the African Union force assigned in Darfur. In addition, the leader of the Arab League said that the Darfur conflict demands a concerted effort of all world governments and economic sanctions has no place in the situation.

On the other hand, The European Union is ready to implement stricter measures to get Sudan's approval of the deployment of a large United Nations peacekeeping contingent into war-torn Darfur, where 3,000 soldiers are already in the area augmenting the African Union personnel. Moreover, the United States is reportedly proposing an extensive UN global trade sanction. However, the move is expected to encounter rough sailing in the Security Council because of China's disapproval to such move.

UN Secretary General Ban Ki-Moon, for his part, has requested for more patience as he is already deep in negotiation with the Sudanese leaders to allow the entry of more peacekeepers. A plan, which will launch a hybrid force more than three times the size of the current personnel, is already in its final stages. The peacekeeping force is authorized to attack whenever the situation becomes out of hand. He made no comment on the impact of the US global trade embargo on the current negotiations.

Over 200,000 Sudanese lives have been lost and 2.5 million left homeless since hostilities between Sudanese government and rebel forces began in 2003. A well-renowned US economist believed that global trade sanctions will not help the situation in Darfur. Currently, China and Russia, known allies of Sudan, is ready to negotiate for a total deployment of UN peacekeeping forces in the country. Aside from China, Russia is also a leading global trade partner of Sudan.

US Calls On Chinese Exporters To Adopt New Food Safety Guidelines

The United States has recently called the attention of Chinese exporters to implement new food safety measures amidst claims that the exporters have been violating food safety standards.

Food safety became a major issue after Chinese exporters allegedly used melamine, an ingredient used in fertilizers and plastics, in one of their toothpaste products. The controversial product was mixed in pet food, instantly killing the animals. This prompted government officials to investigate the issue. Recently, US and Chinese officials met in consultative talks in order to iron out important issues regarding the matter. During the meeting, US officials presented some guidelines that the government wants to implement for their imports. Likewise, they identified Chinese firms licensed to export products to the United States.

Moreover, the United States wants further investigation on the alleged use of melamine as well as tainted toothpaste products that are shipped to Latin America and the Caribbean. For the record, China ranks second among exporters of toothpaste to the United States. For their part, China guaranteed that it would implement strict handling of food exports coming in to the country, particularly Beijing. This is in preparation for the city's hosting of the Olympic Games in 2008.

The previous head of the State Food and Drug Administration (SFDA) is now being tried after granting approval of untested medicines. Finally, China has pledged to exert all efforts in order to restore its integrity after causing fear brought about by the alleged poisonous products shipped by its exporters to other states.

Meanwhile, the growing clamor for the implementation of fresh food safety policies was a result of the killer banana that allegedly contains the dreaded SARS virus, which claimed millions of lives worldwide. Domestic banana producers have been greatly affected by the report, which local officials dubbed as "baseless." The total losses is pegged at 20 million yuans ($2.6 million) daily. This has stirred worldwide concern about the presence of melamine in pet foods and toothpaste products transported by Chinese exporters to neighboring countries.

In related events, the states of Alabama and Mississippi have recently prevented exporters from shipping catfish believed to contain the antibiotic fluoroquinolones. In defending themselves, Chinese exporters claimed that the product was allowed entry in China, Japan, and EU and passed the guidelines set by the Food and Drug Administration (FDA). Likewise, 50 persons died in Panama in 2006 after drinking cough syrup with the chemical diethylene glycol, a substance used as a alternative for glycerin, that came from China.

Lamy Sees Closing Gaps between US and EU in Global Trade Talks

World Trade Organization Director-General Pascal Lamy recently said that he saw signs that the United States and the European Union were close to narrowing their differences in the Doha Development Round. He said last Wednesday that the two parties were gradually bridging their gaps particularly on agricultural subsidies. It must be noted that farm subsidies are among the major issues affecting the progress of the global trade talks. The members of the WTO are pushing hard to complete the negotiations and come up with a global trade agreement before the end of this year.

During a meeting with the press, Mr. Lamy said that differences between the US and the EU concerning farm subsidies were narrowing. Needless to say, he stated that the more important question was whether they were making such progress fast enough. It must be noted that the reduction of farm subsidies, as well as tariffs on manufacturing products, have been among the key factors affecting the movement of the global trade talks.

The European bloc has demanded the US to further cut its farm subsidies, while Washington has insisted that the EU should reduce its duties on imported farm goods. A week ago, Crawford Falconer, who is the chief of the Agriculture Committee under the WTO, released a document, otherwise called as "challenge paper," to all the members of the global trade organization. But Washington criticized the paper, saying that it was not balanced. The members of the G20 and the G33 also expressed a view similar to that of the US.

But the WTO chief said that Falconer's paper could produce the desired effect by stimulating the global trade talks. It must be noted that next week, around 30 ministers will hold a meeting in Paris in order to discuss the future of the Doha Round. The talks would be done on the sidelines of the conference of the Organization for Economic Cooperation and Development. Meanwhile, the members of the G4 (the US, the EU, Brazil, and India) are also scheduled to have their meeting in Brussels. The four members of the group play a vital role in the global trade talks. It must be noted that last month, the G4 members held a ministerial-level meeting in New Delhi in order to talk about ways of completing the negotiations. The key players of the Doha Round have also set a new deadline for the conclusion of the negotiations.

Paulson Seeks Movement in International Trade Talks with China

US Treasury Secretary Henry Paulson recently played down the expectations for any major breakthroughs in the upcoming Strategic Economic Dialogue between the United States and China. Needless to say, he said that he was seeking for signs of short-term progress in the international trade talks. He also hoped that discussions between the members of the US Congress and the visiting Chinese officials would help the two parties in bridging their differences. During a conference organized by a think tank based in Washington, Mr. Paulson said that the Chinese government needed to act quickly in revaluing yuan. It must be noted that China has been criticized and accused by some US officials of doing unfair practices in international trade. Particularly, China has been accused of allegedly manipulating the value of its currency in order to gain an unfair advantage in global trade.

It must be noted that the US and China held the first round of their Strategic Economic Dialogue in Beijing in December 2006. The second round of international trade talks between the two countries is due to take place in Washington from May 23 to 24. The US team would be led by Mr. Paulson, while the Chinese delegation would be headed by Vice Premier Wu Yi. During the forum, the US treasury secretary said that the government was focused on achieving long-term goals while looking for short-term results.

According to Mr. Paulson, China has already benefited from the economic dialogue considering that the US has supported the membership of China to the Inter-American Development Bank based in Washington. He said that the international trade talks would cover issues such as the increase of commercial airline flights between the United States and China and the improvement of environmental protection.

Washington is hoping that the economic dialogue would defuse the efforts of the Congress to impose sanctions on some Chinese products. It must be noted that the US legislators have been threatening to sanction China if it continued with its unfair practices in international trade. A month ago, the US government decided to file two cases against China at the World Trade Organization. The complaints covered piracy and restrictions imposed by the Chinese government on some American products. The US also imposed higher duties on Chinese paper exports considering that these products benefited largely from government subsidies, thus gaining an unfair advantage over US paper products. The Strategic Economic Dialogue is expected to improve international trade between the US and China.

Paulson Calls for China to Undergo More Reforms in International Trade

US Treasury Secretary Henry Paulson recently called for China to speed up its economic reforms. Although the US official acknowledged the growing importance of the diplomatic and international trade ties between his country and China, he also urged the Asian nation to do more in its economic reforms. It must be noted that China has faced several complaints regarding its practices in international trade. The criticisms and complaints have been raised not only by the United States, but also by other countries.

In a speech delivered to the faculty and students of Harvard Business School, the US treasury secretary stated that the renminbi, which is China's currency, was a symbol of the pace of the economic reform being undertaken by China. Mr. Paulson noted that China was making a slow progress in its economic reforms considering the high trade deficit between the US and China. It must be noted that the rising international trade gap has been one of the major issues pressuring the Bush administration. In fact, many officials have urged Washington to resolve the country's rising trade deficit with China.

During his speech, Mr. Paulson said that China needed to speed up in reforming its currency system in order to arrive at a situation in which the currency is determined by the market. The US treasury secretary said there were many currencies in the world that were not determined by the market. But he stated that none of them was as important and big as the Chinese currency. It must be noted that the low value of the yuan has been considered by some US officials as one of the factors behind the rising international trade deficit of the US.

Mr. Paulson made the speech in preparation for the second round of the Strategic Economic Dialogue, which he and Chinese Vice Premier Wu Yi launched last year. The first round of the talks took place in December 2006 in Beijing. The second round would be held later this month in Washington. The US treasury secretary said that tensions were certain to surface as the international trade ties between the US and China progressed.

It must be noted that earlier last month, the US filed to cases against China at the World Trade Organization. The two cases covered piracy and the restrictions imposed by China on some American goods. The US government has also imposed higher tariffs on Chinese paper products, which received subsidies from the government. The US-China international trade relations play a vital role in the respective economies of the two nations. But their international trade ties have been affected by several issues concerning currency, piracy, and government subsidies on the part of China.

Myanmar-India International Trade Fails to Hit Target

Myanmar and India have been working closely in an effort to expand their international trade. Needless to say, trade between the two countries failed to hit the target for 2006 to 2007. According to reports, international trade between Myanmar and India fell short of $1 billion as a result of the lack of interest among traders from the two nations.

Indo Myanmar Chamber of Commerce and Industries Chief G. L. Goenka said that the final figures concerning international trade between the two countries is yet to be released. But he also stated that trade between the two countries was expected to reach up to $650 million, thus falling short of $1 billion from the original target. The decline of trade between Myanmar and India has been blamed on the lack of interest on the part of Indians to put or increase their investments in Myanmar.

Mr. Goenka said that if Indians give up their inhibitions concerning Myanmar, international trade between the two countries would significantly grow. It must be noted that between 2004 and 2005, trade between the two nations reached up to $341.40 million. But trade between the two countries continued to improve, thus recording a value of $557.68 between 2005 and 2006. According to reports, India's exports to Myanmar is worth $80 million.

At present, India is planning to organize an exhibition for small and medium-scale businesses in a move to boost its international trade with Myanmar. The SME India 2007 is scheduled to take place on November 25 in Yangon, Myanmar. Mr. Goenka said that the exhibition would seek to encourage Indian SME to explore trade and business opportunities in Myanmar.

The exhibition is expected to generate $25 million and to improve the international trade relations between Myanmar and India. Recently, Myanmar has sought Indian investments in some sectors like cement, pharmaceutical, fertilizer, steel, food processing, and IT. Myanmar Ambassador to India Kyi Thein said that his country was willing to deepen its economic and trade relations with India. He added that Myanmar was taking the necessary measures such as improving transportation in order to boost its trade with India.

With its fast-growing economy, India continues to draw the attention of many investors, as well as partners in international trade. During the recent years, India has been focused at establishing and strengthening its economic and international trade relations with other countries. In fact, India is currently negotiating a free trade agreement with the Association of Southeast Asian Nations (ASEAN).

Fish Progresses in Global Trade Talks

The members of the World Trade Organization are making progress in their negotiations regarding the reduction of subsidies in the fishing sector. But sources said that disagreements remain between the United States and Japan concerning ports. Peter Allgeier, who is the US ambassador to the WTO, presented last Tuesday the proposals of the US regarding the total ban on fishing subsidies. The US official made the presentation during the two-day meeting recently held by the Rules Negotiating Group under the global trade organization. According to Mr. Allgeier, immediate action was needed considering that 75% of the world's major fish stocks were exploited above the allowed levels. Fishing subsidies form only a part of the broad global trade talks under the WTO.

At present, Japan is the biggest provider of subsidies in the fishing industry. According to reports, Japan gives an estimated $5.3 billion worth of assistance to its fishing sector per year. The information was released by the Oceana, which is an environmental group based in Washington. Although Japan's representative to the global trade talks considered the US proposal as timely, he still sought for the exemption of subsidies to fishing port infrastructures from the deal.

Sources said that the members of the WTO were making progress in the global trade talks. But they also said that the areas where much progress was being made were of lesser importance compared with the farm and manufacturing issues. The Doha Development Round, which was launched in 2001, has already missed several deadlines due to the failure of the members to reach a consensus regarding certain issues. Two of the major issues blocking the progress of the negotiations are the reduction of agricultural subsidies and tariffs on industrial products.

The US proposal on fishing subsidies was first disclosed in March. The scheme calls for periodic reviews regarding the implementation of the global trade deal. The proposal also allows the WTO to seek the assistance of fishing experts in cases of conflicts between members. Mr. Allgeier said that disagreements still remained with Japan. But he also said that the US took into account the concerns of Japan during the preparation of the proposal. He told reporters that the US government has tried to listen well to the concerns of Japan. Meanwhile, South Korea, which fishing subsidies amount to around $651 million, opposed the plan to implement a broad subsidies ban. The European Union, which is the second-biggest provider of fishing subsidies, also expressed its opposition against the US proposal. The WTO aims to complete the global trade talks before the end of this year.