China Imposes Cuts on Tax Rebates To Curb International Trade Surplus

China recently enforced cuts on tax rebates in an effort to ease its growing international trade deficit with the United States and the European Union. Tax rebates, which is expected to hit 17.5 percent, had already been implemented in leather, fertilizers, and wood products. However, economists say that the new measure will not cause a major shakeup in the international trade deficit since bumper profits will continue to rise. Likewise, Chinese manufacturers can simply pass on higher costs to consumers in areas where the competition is not stiff.

In the past few months, the United States and the European Union has been complaining about their internal trade deficit, which will hit $400 billion and $170 billion euros, respectively. On the other hand, China expressed its disappointment on the recent international trade sanction which the United States imposed on high-technology military gadgets being shipped to China. Mr. Bo Xilai, Chinese Commerce Minister, said that the measure was against the spirit of economic cooperation.

Uganda And Zambia Call On G8 Leaders For International Trade Assistance

President Levy Mwanawasa and Yoweri Museveni of Zambia and Uganda respectively called on world leaders to reaffirm their promise of international trade to the entire African continent ahead of the Group of Eight(G8) Assembly this week. Financial aid on Africa as well as other pressing issues on international trade are the main agenda of the Group of Eight's meeting in Germany.

According to Museveni, the requested financial aid can actually harm more than benefit Uganda as it can cripple their efforts to conduct international trade deals. For his part, Zambian President Mwanawasa invited Western companies to take advantage of their local products by investing on local factories to be able to produce quality products. Mwanawasa reiterated his plea for the G8 leaders to pursue their promised financial aid, which they pledged during the G8 Assembly in 2005 held in Gleaneagles, Scotland. The financial assistance is worth $50 billion a year until 2010. In addition, the G8 representatives guaranteed a total debt relief to the Zambia government.

On the part of the Uganda government, President Museveni said that the international trade assistance his country needs should focus on energy and transportation. Uganda experiences frequent shortage of electricity, which is a major deterrent to investments. The railway system is another major development that Uganda badly needs.

Furthermore, Mwanawasa believed in the sincerity of the Group of Eight members on matters concerning debt relief as an aid to international trade. He is hoping that these countries would press on with their sincerity. However, Museveni warned G8 leaders not to interfere with the political situation in Africa. He said that there is no need for such meddling because Africa can manage its own affairs.

Established in 1975, the Group of Eight (G8) is an international forum of countries made up of France, Canada, Japan, Russia, Germany, Italy, the United Kingdom, and the United States. The group comprises 65 percent of international trade. In addition, the European Union (EU) likewise attends the annual gathering of nations. This year's summit is hosted by German Chancellor Angela Merkel. Russia is the last country to join in 1977 when former President Boris Yeltsin aggressively pushed for international trade reforms in the country. Japan will have its turn to host the G8 Assembly in 2008. Aside from the renewal of pledges to AIDS funding, climate change and poverty alleviation are the foremost priorities of the 2007 G8 Assembly.

India And UAE Set Rounds Of International Trade Talks

India and the United Arab Emirates is set to ink a deal that will improve international trade between them. The bilateral talks will focus on investment opportunities as well as long-term international trade relations. The UAE is one of India's top trading partners, comprising about six percent of total exports.

During the meeting, India bared its desire to establish several Indian banks in the UAE. Indian Commerce Minister Kamal Nath requested for the lifting of international trade restrictions such as work permits and visas. For its part, the UAE, represented by Economy Minister Shaikha Lubna Al Qasimi, made an inquiry on the anti-dumping policies which India enforced on their products. The demands were accompanied by an agreement to surpass the $12.9 billion worth of exports they accumulated in 2005 to 2006.

US Enforces International Trade Sanctions on Sudan

In an effort to put an end to the four-year old international trade conflict in Darfur, the United States recently imposed economic sanctions on Sudan. Such action of the United States is targeting 31 establishments and three key personnel who are to be banned from doing businesses with US banks and financial institutions.

The international trade embargo imposed by the US on Sudan received various reactions from the worldwide community. Critics of the imposed sanction such as China and Russia, said that enforcing the embargo is not only unjust but also badly timed. For the leader of the Arab League, the situation in Darfur demanded pooling of efforts from international communities and imposing sanctions was inappropriate.

On the other hand, some countries approved of the action and said they are willing to impose tougher international trade sanctions in order to force the Sudanese government to allow the arrival of more United Nations peacekeeping forces. Currently, there are about 3,000 peace keepers who are augmenting the 7,000 members of the African Union.

Moreover, the United Nations peacekeeping plan is already in its final stages. Once implemented, a peacekeeping force, which is three times the size of the current personnel, will be deployed to Darfur. International trade hostilities between the Sudanese government and rebel forces began in the year 2003. Already, more than 200,000 Sudanese lives have been lost and 2.5 million more have been rendered homeless since the situation escalated into a full blown conflict.