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January 27, 2012 Mexico. Mexico appealed a World Trade Organization ruling that U.S. curbs on imports of Mexican tuna, designed to protect dolphins, are more restrictive than needed.
Sales of Mexican tuna to the U.S. have been limited since 1991 under Commerce Department provisions that determine when products can be labeled as dolphin-safe. The U.S. adopted the rules in response to complaints that Mexico’s fishing techniques hurt dolphins. Mexico says its tuna-catching practices and regulations meet global standards.
The U.S. appealed the WTO’s Sept. 15 ruling last week and Mexico said at the time it planned to appeal the panel’s rejection of its claim that the labeling provisions are discriminatory. Mexico filed its appeal yesterday, the Geneva- based trade arbiter said on its website today.
WTO judges found that the dolphin-safe provisions “are more trade-restrictive than necessary to achieve a legitimate objective, taking into account the risks that non-fulfillment would create.”
The Appellate Body has three months to issue its report on the appeals. January 26, 2012 India.
India will oppose any attempts by developed countries to sign a limited market-opening pact and also call for a check on rising protectionism at the meeting of trade ministers from key WTO member countries at Davos later this week.
Switzerland is hosting a meeting of trade ministers from select countries that include India, China, Brazil, the US and the EU on Saturday on the sidelines of the on-going World Economic Forum at Davos to assess the impact of the economic turmoil on trade and discuss the future of the WTO.
"We have got reports that some developed members are talking about a plurilateral pact in services. We are yet to know the details, but principally we are against plurilateralism within the multilateral framework of the WTO," an Indian government official told ET.
A pluriltateral agreement involves a few countries, while a multilateral pact includes all countries that are members of a global
organization, in this case the WTO. January 25, 2012 Russia. Russia may challenge in court EU anti-dumping law regulations against its metallurgic products after it accedes to the World Trade Organization, Maxim Medvedkov, the head of Russia's delegation in the WTO negotiations, told the U.S. Chamber of Commerce in Russia.
Medvedkov said the export of metallurgic products from Russia to the EU is restricted by quotas and anti-dumping regulations. Although the EU agreed to lift quotas, the parties have thus far failed to reach an agreement on anti-dumping legislation.
Medvedkov said he is hopeful that the limits will be eliminated as soon as Russia joins the WTO. If any barriers for the exports remain, Russia will challenge the EU's anti-dumping laws in court.
In his interview with journalists, Medvedkov said EU anti-dumping law does not fully comply with the regulations adopted by the WTO in regard to fair value product calculations. The EU is entitled under its legislation to disregard gas prices inside Russia, although they are three times lower than in European countries. Thus, Europeans may use their own gas prices for calculating product costs.
January 24, 2012 EU and Iranian oil. Europe banned the import of Iranian oil Monday and froze Europe-based assets of the Central Bank of Iran, intensifying an international campaign to choke Iran’s economy and force the radical Islamic government to dispel fears that it is working to develop nuclear weapons.
The ban, decided by foreign ministers of the 27-nation European Union, is a dramatic escalation of sanctions against Iran, joining with the United States to squeeze the oil earnings and financial transactions that the Tehran government depends on to sustain its citizens and finance its military. The British foreign secretary, William Hague, called the E.U. effort “unprecedented” and said it shows the resolve of European governments to prevent Iran from becoming a nuclear power.
But the decision also includes broad loopholes — including a six-month delay before it goes into effect — that soften its immediate practical impact. Existing contracts for Iranian oil can be respected until July 1, an announcement said, and the ban will come under review before May 1 to see if more
flexibility is needed. Countries such as Greece and Italy, suffering under crippling debt burdens, are likely to get more time before they have to break their financial ties to Iran, European diplomats said on condition of anonymity. Greece has been buying oil from Iran on credit and earns desperately needed money by refining crude for Balkan neighbors, they said. Italy has arranged for Iranian oil in payment for loans granted by Rome in the past. January 23, 2012 South Korea and beef. South Korea has dropped its ban on importations of Canadian beef after almost nine years, Agriculture Minister Gerry Ritz announced Friday.
It was the last country, among those that were significant importers of Canada beef, to end boycotts on the product that began after Canada had an initial documented case of mad cow disease in 2003.
"This announcement is a big step forward for Canada's beef producers and processors," Ritz said at a news conference near Edmonton.
Ritz said South Korea would now accept beef from Canadian cattle younger than 30 months, and that this new access could be worth as much as $30 million annually to the beef industry by 2015.
Ritz added: "Canada has worked tirelessly - governments and industry together - to reopen this vital market based on the science fact that our beef is safe."
On Dec. 30, Canadian officials said Seoul had ratified import health requirements for Canadian beef, but several steps remained. South Korea has now published the approval of those requirements and notified Ottawa that all certification conditions are in place, the Canadian government said.
Canada complained about South Korea's beef ban to the World Trade Organization, but suspended its case last year after South Korea said it would resume trade by the end of 2011. January 20, 2012 WTO. Pakistan is expecting that Bangladesh most likely to withdraw its objections to a special European Union trade package for Islamabad in the upcoming meeting of the World Trade Organisation (WTO) Council for Trade in Goods to be held on February 1, it has learnt on Thursday.
“We hope Bangladesh relents and removes its objections,” an official confided to The Nation on Thursday when contacted. Sources told TheNation that Pakistan has addressed the concerns of Bangladesh regarding European Union (EU) package for Islamabad, which was granted in 2010 after the devastating floods in Pakistan.
The EU had announced a trade package for Pakistan in 2010 wherein Pakistan would enjoy two years unilateral tariff concession package proposed for about 75 items to be exported to EU. However this package was subject to the WTO wavier.
It is to be noted that first India then Bangladesh had raised the concerns over the said trade package given to Pakistan.
Later, India has withdrawn its opposition after Pakistan assuring it for granting Most Favoured Nation (MFN) status to New Delhi in November last year but some other countries including Bangladesh opposed the concession.
Sources on Thursday told on the condition of anonymity that Islamabad had addressed the concerns of the Dhaka and now we are expecting that WTO would approve the said package in the meeting to be held on February 1.
It might be recalled here that on the objection of Bangladesh, European Union move to grant trade preferences, GSP plus status, to Pakistan as an aid measure following last year floods in Pakistan, has been halted. Bangladesh was worried about this decision, as they said Pakistan is a cotton growing country and has an extra advantage that would create an uneven competition, if EU provides trade benefit to Pakistan.
World Trade Organisation rules say there should be no discrimination and all trade partners must be dealt at par. January 19, 2012 Russia. Russia will not abide by its World Trade Organization commitments with the U.S. unless Washington scraps a trade law that dates back to the Cold War, the foreign minister said Wednesday.
The Jackson-Vanik law, which was passed in 1974 and denies Russia normal trade relations status, has been a political sticking point in the countries’ trade relations for years. The law was originally used to pressure the Soviet Union to allow emigration, primarily of Jews.
U.S. presidents have granted Russia annual waivers to the law since 1994, so it hasn’t materially affected the country’s business interests since then. But Moscow has been growing impatient with U.S. promises to scrap what Russian Foreign Minister Sergei Lavrov described as a “Cold War relic.”
Lavrov told a news conference that the U.S. must repeal the discriminatory law. “Russia will not abide by the commitments it undertook as a WTO member if the Jackson-Vanik amendment remains in force,” he said.
American businessmen and the U.S. administration have long lobbied to have the law scrapped in Congress, but Republicans have opposed such a move for years, using it as a negotiation tool to advance other issues.
Lavrov said the law is still in place because of “domestic American problems.” January 18, 2012 China. The EU on Tuesday called on China to adhere to a new agreement reached by members of the World Trade Organisation to further open up government procurement - a market worth hundreds of billions of euros.
Foreign governments and firms have long complained China favours domestic companies and squeezes them out of the government's lucrative procurement market, although Beijing has abolished some measures seen as encouraging this.
EU internal market commissioner Michel Barnier told reporters in Beijing that following on from the agreement reached in December, "the next priority is for China to adhere to it." Barnier, whose remit focuses on the European Union's single market as well as public procurement, is in China to meet senior officials including central bank governor Zhou Xiaochuan and Finance Minister Xie Xuren.
"We (now) have a much better framework (for the agreement). China must say whether it wants to adhere to the agreement as it is," he said.
The agreement - signed in Geneva by 42 countries including EU nations, the United States, Japan and South Korea - forces them to open up new industries such as telecommunications to outside competition for public tenders.
nder the deal - which Brazil, Russia, India, China and South Africa have not signed - the overall public tender market open to international competition is now worth 600 billion euros ($767 billion), up from 500 billion euros.
Government procurement represents 16 percent of demand in China and 19 percent in Europe, according to EU officials travelling with Barnier.
The EU Chamber of Commerce in China has said the public procurement market in the world's second largest economy is worth $1 trillion a year - a lucrative area that foreign firms are still largely excluded from. January 17, 2012 Vanuatu. Vanuatu’s Acting Head of State Esmon Sai is set to approve the controversial protocol for Vanuatu to join the World Trade Organisation.
According to the Daily Post, Mr Sai says he will sign the bill into law before the president, Iolu Abbil, returns to port Vila.
Mr Abbil has been abroad for medical treatment and the first Deputy Speaker; Dunstan Hilton, also left the country to attend the Commonwealth Speakers Conference in Port of Spain in Trinidad and Tobago.
Mr Sai, who holds the position of Second Deputy Speaker, said he would sign the Bill before the Head of State returns.
Before leaving for Australia, Mr Abbil reportedly sought private legal advice on the bill.
The move to join the WTO has been resisted by non-government groups and the churches. January
16, 2012 U.S. honors Martin Luther King, Jr. January 13, 2012 Russia. Russia is likely to have a fiscal surplus in 2012 although the planned budget deficit is 1.5% GDP. Analysts say the budget surplus along with low state debts and joining the WTO could contribute to an upgrade of Russia’s credit rating.
“Russian surplus in 2011 is a symbol of the strength of Russian balance sheet, in fact, it’s one of the best in the world”, says Yaroslav Lissovolik, chief economist of Deutsche Bank. “Apart from the fact, that Russia’s state debt, public external debt and domestic debt is very low, you also have the dynamic factor of the flow of fiscal deficits being subdued and actually showing surplus”, he explains.
According to Finance Minister Anton Siluanov , the fiscal surplus of Russia’s budget in 2011 is about 0.8% GDP or 427 billion roubles or $13.416 billion. It is the first fiscal surplus since 2008.
Despite the financial challenges of 2011, Russia has become the third fastest growing economy in the world after China and India. The latest economic data, revealed by Prime Minister Vladimir Putin, showed 4.2 percent added to the country’s GDP last year. Meanwhile industrial production rose 4.7 percent, the forth best result in the world.
"And then you compare it with other countries in the world and see that a lot of developed countries show close to double digit deficits in terms of the share of deficit in GDP”, said Mr Lissovlik.
Mr Lissovlik considers a fiscal surplus in 2012 possible if oil prices rise to $150 as some have predicted. “Current projections suggests something like a balanced budget or even surplus”, he suggests. “The Government assumes 1.5%GDP fiscal deficit, but this is predicted on an oil price that is close to $100. Unfortunately, the oil price is out of Russia’s control, but as we’ve seen in 2011 there can be something that could be done by the government in terms of controlling fiscal spending”.
Analysts think a budget surplus could also improve Russia’s image as an investment destination. But a long history of economic and political instability along with high dependency on oil keeps rating agencies from improving Russia’s credit rating.
January 12, 2012 Canadian renewable power. The European Union has escalated a trade dispute over Canadian provincial rules for solar and wind energy subsidies by asking the World Trade Organization to set up a panel to rule on the case, the WTO said on Wednesday.
The EU's decision to resort to legal measures against Canada, after the failure of direct talks to settle the dispute, will come as little surprise because Japan has already trodden the same path in an identical case.
The EU and Japan say the Canadian province of Ontario is illegally restricting trade by giving an subsidy to local producers of renewable energy equipment and services.
The scheme guarantees above-market energy prices for renewable power that uses a certain amount of Canadian-made equipment or services, a provision that the complainants say is against the WTO's rules.
The EU says Ontario's scheme demands solar projects must have 40 percent of their initial development made up of local products and services, while wind energy needs 25 percent.
The EU has put the request for a dispute panel on the agenda of the WTO's Dispute Settlement Body when it meets on Friday January 20, six months after a panel was set up to adjudicate on Japan's complaint against Canada. January 11, 2012 Ukraine. The Ukrainian government is deciding whether to initiate talks with the World Trade Organization (WTO) on increasing rates of duty on goods imported to Ukraine from a list formed according to proposals from Ukrainian business, Government Commissioner for Ukraine's European Integration Valeriy Piatnytsky has said.
"A list of the goods has been created, and it includes cars, sugar and certain types of meat," he said at a press conference at Interfax-Ukraine on January 6, 2012.
Piatnytsky said that the government is also studying the application of other measures to protect national goods producers, as the option of the revision of tariffs with the WTO could be ineffective.
He said that most cars imported to Ukraine come from Russia, with which Kyiv has an agreement on free trade, and via the European Union, with which a free trade agreement has been prepared for signing.
He added that Ukraine has launched an investigation into imports of the two most popular types of cars – cars with engines up to 1,600 cubic centimeters and with engines up to 2,200 cubic centimeters.
"If the restrictive measures were not approved after investigations, what need would we have for talks [with the WTO countries]?" he said.
He added that a 50% duty is in effect for imported sugar, and the revision of the tariff quota of over 260,000 tonnes or 10-15% of annual consumption is unlikely.
Piatnytsky said that other WTO countries would demand something from Ukraine for agreement to increase imported duties if the tariffs were revised. January 10, 2012 WTO and COOL. The World Trade Organization said last week that it has extended until March 23 the deadline for appeals of its country-of-origin labeling (COOL) decision.
Responding to complaints filed by Canada and Mexico, a WTO dispute panel on Nov. 18 concluded that U.S. COOL violates several provisions of international trade rules because it affords imported livestock less favorable treatment than domestic livestock. U.S. meat and poultry producers could face retaliatory tariffs from Canada and Mexico if Congress fails to correct the COOL law to comply with WTO obligations. The United States is expected to appeal the WTO decision. January 9, 2012 WTO and Euros. Russia says it is ready to commit more than 10 billion US dollars to the IMF to help support the struggling eurozone economy.
President Dmitry Medvedev made the pledge in Brussels during the biannual EU-Russia summit.
He said, "In summary, it is only Europe that can help itself, but other countries should also create the conditions for Europe to free itself of the crisis as quickly as possible, so that it develops out of the crisis dead end, and we will help to enable this."
Medvedev says 41 percent of Russia's currency reserves are invested in euros, and that Russia is interested in seeing the EU preserved as a powerful economic and political force.
Meanwhile, EU President Herman Van Rompuy acknowledges that Russia and the EU "are strongly inter-dependent."
"The EU wants to be Russia's partner in its modernization. We are indeed strategic partners. In many ways we are strongly interdependent in a spirit of mutual benefit. We can only win by deepening our cooperation even further", said Rompuy.
On Friday, the WTO is set to approve Russia as a member. The country has been trying to join the trade body for the past 18 years.
EU Commission head Jose Manuel Barroso has sent his congratulations. "After 18 years of negotiation this is a major achievement, indeed it opens new opportunities for trade, and for development of our bilateral economic relations which are already strong", said Barroso.
Meanwhile, Russia and the EU have also agreed on moves towards visa-free travel.
Advances depend on the implementation of a number of "common steps", such as introducing biometric passports and preventing illegal migration. January 6, 2012 COOL. U.S. laws on mandatory country-of-origin labelling (COOL) have not only led to a substantial drop in U.S.-bound Canadian cattle exports, but helped widen the price gap between Canadian and U.S. marketings, Canadian research shows.
The Canadian Cattlemen's Association, in the wake of the November 2011 ruling against COOL by a dispute settlement panel at the World Trade Organization (WTO), says its research shows COOL held far more "substantial influence" than just a requirement for stickers at the meat counter.
The CCA warned it has so far "resisted" going public with any dollar-value assessment of COOL's impact, as such costs "may well become a point of arbitration" if Washington refuses to bring COOL in line with the WTO panel's ruling.
Specific data on costs would then help form the basis of any new or higher tariffs the WTO would allow Canada to slap on exports from the U.S., equal to the negative impact of COOL, the CCA said in a newsletter this week.
However, the CCA said, it can show the "change in proportion" of Canadian feeder cattle in U.S. cattle-on-feed placements.
Overall, the CCA logged a loss of U.S. imports of Canadian feeder cattle of about 480,000 head in the first 80 weeks after the COOL measure came into effect at the end of September 2008.
That works out to an estimated reduction of 6,000 head per week, which the CCA said is "substantial" compared to Canada's average weekly feeder cattle exports to the U.S. before COOL came in: specifically, 10,494 head per week in 2007 and 8,372 head in 2006. January 5, 2012 India. From January 1st, all airlines using the EU airspace will need to pay a carbon tax if the emissions exceed a certain cap. This move will impact Indian carriers that use EU airspace and airports, reports Rituparna Bhuyan of CNNBC-TV18. Sources have told the channel that India will be using a multi-pronged strategy to challenge the tax known as EU emission trading system or ETS.
India is reportedly going to team up with US, Canada, Japan and many other countries to challenge ETS. The first strategy will be to challenge it at the WTO because India believes that ETS is a violation of the National Treatment Norms set up by the WTO. This stems from the fact that the tax charged is not only on the airlines that uses the EU airspace, but also on the route taken to reach the EU airspace.
ETS is likely to be challenged at the UN Framework Convention on Climate Change because the convention has not taken any decision on aviation emissions.
ETS will also be challenged at the International Civil Aviation Organization because it is at the moment negotiating a global treaty on aviation emissions, but it has not taken any final view on it.
Lastly, India is going to take up this matter bilaterally with all EU-based countries. In fact, CNBC-TV18 has learnt that Civil Aviation Ministry has started calling up many EU-based airline companies to take up this issue with them at a one-to-one level. January 4, 2012 Egypt. Egypt will maintain its budget deficit at 8.6 percent of output for this financial year, its finance minister said on Tuesday, as another minister was quoted as saying a visit from the IMF planned for January would be delayed for a few weeks.
Finance Minister Mumtaz al-Saeed said Egypt would maintain its budget deficit at LE134 billion (US$22.22 billion), or 8.6 percent of gross domestic product, in the financial year ending in June.
A senior army official had said in early December that Egypt's deficit would climb to 167 billion pounds in 2011/12, roughly equivalent to 11 percent of GDP.
A state newspaper reported on Sunday that the government plans to raise natural gas and electricity prices paid by heavy industries by 33 percent this month to help cap the deficit.
Saeed said it will also review custom duties to help narrow the deficit, without "contravening Egypt's signed agreement with the World Trade Organization." The WTO exists to support freer world trade.
An expected visit by the International Monetary Fund to Egypt this month to discuss the country's economic problems has been delayed for "a few weeks," independent daily Al-Shorouk cited a government minister as saying on Tuesday.
Egypt, whose economy was battered by the uprising that unseated Hosni Mubarak in February, turned down a $3 billion IMF facility in June last year, saying it did not need the funds. The ruling military generals have also been reluctant to take on debt without a popular mandate. January 3, 2012 HAPPY NEW YEAR! December 30, 2011 Mercosur. The four member countries, Argentina, Brazil, Paraguay and Uruguay of MERCOSUR (Common Market of the South) have agreed to increase import tariffs to 35 percent, the maximum allowed under WTO rules, on 100 industrial products until December of 2014 to protect domestic industries. Their manufacturing companies have been under import pressures from Asian competitors and that is expected to intensify with slower import growth in EU and U.S. markets. This action reflects the history of MERCOSUR and the imbalances now faced in world markets.
MERCOSUR was founded in 1991 as an economic and political agreement to promote the free movement of goods, people and currency among the four countries. It is now a customs union with common external tariffs and freer internal trade. The four members have a GDP of $2.9 trillion in 2011, 4.5 percent of world GDP. Bolivia, Chile, Columbia, Ecuador and Peru are associate members, with Ecuador actively seeking full membership. Venezuela signed a membership agreement in 2006, but expansion requires the approval of parliaments of each member and Paraguay’s Parliament refuses to grant approval.
Internal squabbles have occurred. Argentina and Brazil applied non-automatic import licenses on a range of each other’s goods earlier this year. Uruguayan businesses have complained that Argentina is blocking their imports. Paraguay, 6.5 million people, and Uruguay, 3.3 million people, generally support removal of tariffs and other restrictions on trade for their small economies since they use many industrial products that cannot be supplied by their domestic industries. Chemicals, capital goods and textiles are expected to be among the products charged the higher tariffs. Uruguay’s trade lately has been at odds with the latest tariff action because China is its second largest trading partner after Brazil.
The four countries have a history of government management of industries, with tariffs as part of the management effort. This latest move on tariffs leaves the impression of support for a policy of self-sufficiency within MERCOSUR. That is the direct opposite of the comparative advantage basis for freer trade. December 29, 2011 Brazil. The Government of Brazil will soon replace the existing rule for levying tariff on import of textiles into the country.
Currently, Brazil imposes duty on textile imports on a price-based mechanism. This will be replaced with imposing duty on per item system, Finance Minister Guido Mantega said.
While receiving an award from the Brazilian textile industry in Sao Paulo, the Minister said the new tariff system would be implemented within a span of three months.
It would help safeguard the interests of domestic manufacturers who are facing tough times due to price dumping by overseas exporters, he added.
He informed that Brazil would soon inform the World Trade Organization (WTO) of its intention to alter its tariff regulation system, and would request it to continue with the new system for 10 years.
He added that such a measure is necessary to protect Brazil’s industries from the impact of weak dollar and international competition. December 28, 2011 China and Russia. Russia's entry into the World Trade Organization (WTO) will serve as a considerable spur to China-Russia cooperation in trade and investment, a Chinese diplomat said.
In a recent interview with Xinhua, Ling Ji, minister counselor for economic and commercial affairs at the Chinese embassy to Russia, said Russia's accession into the WTO will create new opportunities for both China and Russia.
"On one hand, Russia opens its market; on the other hand, Russia enjoys more rights to access other markets," Ling said.
After 18 years of negotiation, the world's biggest economy outside the WTO and the only G20 member left out finally joined the trade bloc on Dec16.
After its accession, Russia's customs tariffs will be lowered to 7.8 percent from 10 percent, Ling said.
The country will also cut down import duties on one-third of its imports, making it easier for Chinese industrial and agricultural products to access the Russian market, Ling said.
The diplomat noted that future expansion of bilateral trade fueled by lower tariffs is only one aspect of the benefits of Russia's WTO accession, as Russia will also improve its trade and investment climate. December 27, 2011 Japan. Japan has been advancing a series of trade talks recently to hammer out bilateral or regional free-trade agreements because it sees high-level economic partnerships as the key to revitalizing its stagnant economy.
While announcing last month its plan to join multilateral talks on the Trans-Pacific Partnership Agreement, a U.S.-led free-trade initiative, this month Japan concluded a joint study with China and South Korea on the possibility of signing a tripartite free-trade accord and resumed FTA negotiations with Australia.
Japan is also looking to conclude preparatory talks with the European Union for a future FTA.
These developments come as the 153-member World Trade Organization officially admitted in its latest ministerial meeting that concluding the 10-year-old Doha Round of trade liberalization talks is unlikely in the near future, highlighting the difficulty of forming a global trade deal.
"With no fundamental measures to conclude the Doha Round in sight . . . there is little choice but to seek bilateral FTAs, given their flexibility in treating sensitive items and the speed (of the negotiations)," said Junichi Sugawara, a trade policy expert at Mizuho Research Institute.
In particular, Japan's trade talks with Australia, which is already involved in the TTP process, should be worth watching because they could become a "touchstone" for Japan's future in the TPP talks when it joins, Sugawara said.
The bilateral session with Australia was Japan's first official trade negotiations with a country involved in the TPP since Tokyo announced in November that it would participate in the multilateral process, which also involves the United States, Singapore and New Zealand. December 26, 2011 Merry Christmas! December 23, 2011 Airbus case. The World Trade Organization launched an arbitration process on Thursday to examine a US claim for up to $10 billion of sanctions against the European Union in a dispute over subsidies for Airbus planes.
The arbitration process is the latest step in the world's biggest trade dispute, which has dissolved into an increasingly complex legal battle between the United States and the EU on behalf of aircraft giants Boeing and Airbus.
Although the arbitration process has been triggered, nothing may happen until the two sides have exhausted other legal avenues.
Many trade experts expect the two sides, which each accuse the other of unfairly supporting its own plane maker, to attempt to negotiate a settlement as the legal appeals and counter-appeals become more and more entangled.
In the latest round of the dispute, the WTO told the EU to stop all illegal subsidies for Airbus by Dec. 1. The EU claimed to have done so but the United States said it had not.
The US side said on Dec. 9 that it wanted to impose sanctions of $7-10 billion annually on the EU, a sum it said represented the value of lost exports of US large civil aircraft because of illegal EU subsidies for Airbus.
The EU then challenged both the level and calculation of the sanctions, triggering the arbitration process. December 22, 2011 EU ETS and WTO. With economies in the U.S. and Western Europe exhibiting either painfully slow growth or no growth at all, both the World Bank and the WTO have cautioned recently that protectionist sentiment is creeping into economic policies. Two issues came to a head this month, each raising the threat of trade sanctions flying across the Atlantic. First is the ongoing dispute over subsidies to commercial aircraft makers, which the US and Europe have fought out in two separate cases in the World Trade Organization (WTO) for more than half a decade. This came to a head with the WTO’s ruling earlier this year. The second, and at the moment more politically volatile, is the European Union's contentious decision to include aviation under its Emissions Trading Scheme (EU ETS). December 21, 2011 Canada and India. The Indo-Canadian business community was last week given an update on the third round of Canada-India free trade talks, held in New Delhi Dec 13-16.
Both Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, and Bal Gosal, Minister of State (Sport), welcomed the talks, noting they would benefit Canadian businesses, workers and their families.
Gosal highlighted the progress being made in an update to the Indo-Canadian community in Brampton.
"A Canada-India trade agreement has the potential to boost Canada's economy and create jobs and economic prosperity for hard-working Canadians," said Gosal. "Our government is committed to building on our already strong ties with India to create a partnership that will lead to new opportunities and stronger economies in both countries."
In a statement issued from Geneva, where he was attending the Eighth World Trade Organization Ministerial Conference, Fast said: "Canada is aiming to conclude negotiations in 2013."
Canada and India hope to tripe bilateral trade to $15 billion annually by 2015. A Canada-India Joint Study Report concluded free trade could boost Canada's economy by at least $6 billion, increase bilateral trade with India 50 per cent and directly benefit Canadian businesses and workers in sectors ranging from primary agricultural, resource-related and chemical products to transport equipment, machinery and equipment, and services.
Over the last five years, Canada has concluded new trade agreements with nine countries and is holding ongoing negotiations with close to 50 others. This includes current free trade negotiations with the European Union. December
20, 2011 WTO. World Trade Organization (WTO) Director General Lamy urged WTO members to pledge to work to salvage the faltering Doha Development Round of trade talks and ensure the multi-lateral trading system does not become irrelevant.
Lamy spoke during the opening of the WTO's biennial ministerial conference in Geneva.He said WTO members must address the primary question causing the impasse in the negotiations, specifically what contribution major emerging markets (China, India and Brazil) should make towards the further opening of global markets.
Efforts to re-start the Doha negotiations earlier this year following the collapse of the talks in July 2008 were unsuccessful in part because the United States insisted that Brazil, China and India increase access for goods and services. This effort was followed by an unsuccessful attempt to secure a “deliverables” package in favor of least developed countries (LDCs) for the December ministerial. That package would have included concessions on cotton.
The United States refused to include a commitment to 100 percent duty-free/quota free market access for exports from LDCs without additional initiatives that would benefit developed and developing country exporters. December 19, 2011 China and US. U.S.-China trade tensions are starting to heat up, an especially ominous development as global export growth is slowing and both countries face significant political showdowns at home next year.
China fired the latest salvo last week by imposing duties as high as 22 percent on imports of large cars and sport-utility vehicles from the United States for the next two years.
Beijing alleged dumping and improper U.S. government subsidies, the same charges that Washington has made about Chinese exports of solar panels to the U.S.
The practical effect of the Chinese tariffs is minor: U.S. shipments of motor vehicles to China last year totaled just $3.5 billion -- nearly 4 percent of American exports to China and less than 0.3 percent of all U.S. exports.
The new tariff is in addition to an existing 25 percent duty on imported vehicles in China, so the new levy probably won't make much difference to Chinese buyers, analysts said.
Nonetheless, American shipments of SUVs and other cars to China represent one of the fastest-growing export segments and among the most politically sensitive. Analysts worry that the Chinese action will add fuel to already rising tensions between the two countries.
The Obama administration has been stepping up its legal challenges to Chinese trade practices, most recently saying it plans to ask the World Trade Organization next week to look into Chinese restrictions on imports of American broiler chickens. This month is the 10th anniversary of China's membership in the WTO. December 16, 2011 Taiwan and Laos. Taiwan and Laos concluded a bilateral trade agreement under the framework of the World Trade Organization (WTO) Wednesday to pave the way for the Southeastern country to enter the world trade regulatory body.
The agreement was signed by Bill Cho, director-general of Taiwan's Bureau of Foreign Trade, and Khemmani Pholsena, Laos' deputy commerce and industry minister, on the sidelines of the eighth WTO ministerial conference slated to open in Geneva Thursday.
Taiwan and Laos had engaged in seven rounds of talks on the bilateral pact and completed the process in the Laotian capital of Vientiane in May, under efforts to further bolster commercial exchanges between the two countries.
Laos, which has not yet been admitted as a signatory nation to the 153-member WTO, has also signed similar bilateral trade agreements with Japan, China, South Korea, Canada and Australia.
Two-way trade between Taiwan and Laos totaled US$10.91 million in 2010 and Taiwanese companies have invested a combined total of US$18 million in Laos. December 15, 2011 Climate. A UN climate conference reached a hard-fought agreement Sunday on a complex and far-reaching program meant to set a new course for the global fight against climate change for the coming decades.
The 194-party conference agreed to start negotiations on a new accord that would put all countries under the same legal regime enforcing commitments to control greenhouse gases. It would take effect by 2020 at the latest.
The deal also set up the bodies that will collect, govern and distribute tens of billions of dollars a year for poor countries. Other documents in the package lay out rules for monitoring and verifying emissions reductions, protecting forests, transferring clean technologies to developing countries and scores of technical issues.
Currently, only industrial countries have legally binding emissions targets under the 1997 Kyoto Protocol. Those commitments expire next year, but they will be extended for another five years under the accord adopted Sunday.
The proposed Durban Platform offered answers to problems that have bedeviled global warming negotiations for years about sharing the responsibility for controlling carbon emissions and helping the world's poorest and most climate-vulnerable nations cope with changing forces of nature. December 14, 2011 Taiwan and Russia. With Russia on the verge of ending its 18-year wait to join the World Trade Organization (WTO), a top Taiwanese foreign trade official said Tuesday that the entry of the US$1.9 trillion economy may benefit Taiwan's information and telecom industry.
Bureau of Foreign Trade (BOFT) Director-General Bill Cho said Russia is expected to formally join the 153-member organization, which requires a transparent trade regime and lower tariffs that may help Taiwan further expand in the emerging market, he said.
After gaining approval, Russia's tariffs are expected to begin lowering from Jan. 1, and within 2-3 years the average tariff will be decreased to 7.1 percent, with tariffs on agricultural imports being cut to 11.3 percent and industrial products to 6.4 percent, Cho said.
In 2008-2010, average tariff in Russia was 10.3 percent, with tariffs on farm and industrial products at 15.6 percent and 9.4 percent, respectively.
Meanwhile, Russia has agreed to join the Information Technology Agreement three years after it enters the WTO, which he said would especially benefit Taiwan's telecom and information industry as tariffs on related products are expected to drop to zero.
According to BOFT statistics, Taiwan shipped US$1.08 billion worth of goods to Russia in 2010, up 85.8 percent year-on-year. Taiwan's major export products to Russia included hard drives, flat panels, information components and parts and steel screws. December 13, 2011 Australia and Vietnam. Trade Minister Craig Emerson today travels to Hanoi, where he will co-chair the 10th Australia-Vietnam Joint Trade and Economic Cooperation Committee (JTECC) meetings and address local and Australian business people.
This is Dr Emerson's first visit to the country as Trade Minister, and comes at a time of closer integration between Australia and the Asian region, in the Asian Century.
The JTECC provides a forum for talks on tightening trade links between the two countries, as well as for promoting the broader global free trade agenda. The last meeting was held in Melbourne in July last year.
Vietnam is one of a core group of countries in the Asian region identified by Dr Emerson for their dynamic growth, rigorous domestic reform programs, burgeoning middle classes, and developing demand for Australian goods and services.
Australia's relationship with Vietnam is thriving under the countries' Comprehensive Partnership, signed in 2009.
Two-way trade was worth more than $6 billion in 2010-11, having grown at an average of 10 per cent a year over the last decade.
Vietnam's accession to the World Trade Organization in 2007, its membership of the Asean-Australia-New Zealand Free Trade Agreement and its interest in further economic co-operation reflected policy drives aimed at improved regional engagement and domestic reform, Dr Emerson said.
“Vietnam's economy is fast growing and its regional and international stature on the rise,” Dr Emerson said.
“It is a good friend and robust trading partner whose economic potential is exciting for Australian goods and services exporters,” he said.
While in Hanoi, Dr Emerson is scheduled to hold a series of meetings on the sidelines of the JTECC event, including with Vietnamese Prime Minister Nguyen Tan Dung.
He will also address members of the Australia-Vietnam Chamber of Commerce, on trade and economic reform. December 12, 2011 Airbus. Airbus hit back on Friday at a U.S. decision to press for sanctions in its spat with the European Union over aircraft subsidies and said it had complied with a trade body's findings.
The European planemaker responded after Washington rejected the EU's plan to comply with a World Trade Organization ruling on support and said it would request authorization to impose potentially billions of dollars annually in trade sanctions.
Airbus Head of Public Affairs Rainer Ohler said the United States had made a number of unfounded claims and requests since the start of the long-running dispute which involves mutual claims of unfair aid for Airbus and U.S. rival Boeing (BA.N).
"Calling for sanctions is just another one of those empty claims. We believe its time for the WTO to review and assess the implementation presented by the EU," Ohler said in an email.
"Airbus is confident it has fully addressed WTO demands in a comprehensive manner."
Boeing said in a statement that Airbus could not comply with the WTO's findings as long as it ignored any non-commercial launch aid it is receiving for its next airplane, the A350.
"Despite the very clear WTO ruling, EADS/Airbus and European governments have failed to remove outstanding subsidies. This illegal subsidization of Airbus products - plane after plane - is unsustainable and must stop now," Boeing said. December 9, 2011 US and China. The United States will not stand idly by while China appears to have misused its trade remedy laws and put American jobs at risk," U.S. Trade Representative Ron Kirk said in a statement just a few days before the tenth anniversary of China's accession to the WTO.
It is the 12th case the United States has filed against China since Beijing entered the world trade body on Dec 11, 2001. It comes as President Barack Obama has faced some criticism on both the right and the left for not taking a tougher line with China on trade.
China imposed the duties, ranging from about 55 percent to 135 percent, on U.S. chicken "broiler products" in August and September 2010, claiming they were subsidized and "dumped" in the Chinese market at less than fair value.
Beijing began the investigation that led to the duties on September 27, 2009 - just a few weeks after U.S. President Barack Obama's decision to slap an emergency 35 percent tariff on Chinese-made tires to stop a market-disrupting surge.
The duties were also seen as tit-for-tat retaliation for a U.S. congressional ban on cooked chicken from China.
The United States was the largest exporter of broiler products to China before the duties were imposed. Since then, U.S. broiler product exports to China have fallen by nearly 90 percent, the U.S. trade office said. December 8, 2011 COOL. The Food Marketing Institute (FMI) issued the following statement today from Regulatory Counsel Erik Lieberman regarding the World Trade Organization’s Dispute Settlement Panel Report on the Country of Origin Labeling (COOL) law:
“The World Trade Organization (WTO) recognized what the supermarket industry has known all along—that COOL is a protectionist law designed to make it more costly and difficult for retailers to sell imported foods. COOL has forced the industry to spend tens millions of dollars each year on unnecessary regulatory burdens all for little or no benefit to consumers. We fully agree with the conclusion of the panel that the COOL law fails to provide information in a meaningful way.
“This year, COOL enforcement has become more burdensome than ever, making it challenging for retailers to carry imported meats, produce and seafood. Although the compliance rate for the program last year was 97 percent, this year, inspectors are demanding that more redundant records be maintained—at great cost to grocers.
“The COOL law will need to be repealed or rewritten in order for the U.S. to meet its obligations to global trading partners. We look forward to working with Congress and the U.S. Department of Agriculture to develop an alternative system; one that will provide useful information to consumers and put our nation in compliance with international trade agreements." December 7, 2011 WTO.
China and Russia's entry into the WTO (World Trade Organization), the most important events in the past decade of the organization, is now attracting the world's renewed attention to the world trade body, especially during the times of debate about regionalism and globalization.
Recalling China's accession to the WTO in 2001 after 15 long years of negotiations, Sundram Pushpanathan, Deputy Secretary- General of ASEAN for ASEAN Economic Community, said that China's accession to the WTO could be regarded as a "fitting cap" to the program of economic reforms that China started to implement in 1978.
"Opening up the Chinese market for trade and investment, and subsequently allowing its trade regime to be subjected to multilateral rules and disciplines, have resulted in a more dynamic, more vibrant China's economy," Pushpanathan said in a recent interview with Xinhua.
According to ADB's statistics, China's growth rate of real GDP per capita has been steadily on the rise since it acceded to the WTO, soaring from 7.5 percent in 2001 to 13.6 percent in 2007. China is recovering from the latest global financial crisis with a 9.9 percent growth rate in 2010. December 6, 2011 COOL. The World Trade Organization (WTO) ruled in favor of Canada and Mexico in a complaint against the U.S. mandatory country of origin labeling (COOL) law, which took effect in 2008. Following the law's implementation, U.S. imports of Canadian cattle and hogs and Mexican cattle declined substantially.
The complainants had argued that the COOL law is inconsistent with the United States' obligations under several articles of the WTO agreement.
In its findings, the panel noted that the U.S. law violated WTO rules on several fronts and wrote specifically that "The COOL measure, particularly in regard to the muscle cut meat labels, violates Article 2.1 because it affords imported livestock treatment less favorable than that accorded to like domestic livestock." December 5, 2011 WTO. World trade Organisation (WTO) Director General Pascal Lamy reported to its General Council last Wednesday that the Doha trade negotiations would continue in the year 2012. In other words, the conclusion of the negotiations promised at the beginning of the year, failed to materialise. Instead the Director General was only calling for ‘advancing negotiations in areas where progress can be achieved’. Taking into consideration the uncertain global political and economic climate and the impending presidential elections in the United States in 2012, it is now highly unlikely that an agreement could be reached before 2013 at least.
It was ten years ago, on November 14, 2001 that the WTO decided to start the Doha round of trade negotiations, commonly called the Doha Development Agenda (DDA). It was so named since the Doha Declaration issued by the WTO Ministerial Conference recognised the development needs of developing countries and called for assisting them to get better trade access. “We seek to place their needs and interests at heart of the Work Program”, said the Declaration. This was a sequel to the Seattle protest earlier which showed that the WTO is biased against developing countries.
The DDA consists of 19 issues including implementation issues, Agriculture, Investment, TRIPs, Trade facilitation, Environment, Technology transfer, Least Developed Countries (LDCs) among others. Most contentious among them are Agriculture, Non-Agricultural Market Access (NAMA), Non-Tariff Barriers (NTBS), Dispute Resolution, Environment and special treatment for developing countries. December 2, 2011 Airbus ruling. The European Union said Thursday it has complied with a World Trade Organization ruling that called for an end to unfair government aid to aircraft maker Airbus.
U.S. trade officials and rival Boeing Inc. responded that they would study closely the EU's submission to ensure all illegal subsidies had been removed.
"We have presented a comprehensive package of actions that achieves full compliance with the WTO recommendations and rulings in the Airbus case," said John Clancy, a spokesman for the EU's trade office.
"Through this package we address all categories of subsidies, all forms of adverse effects, and all models of Airbus aircraft covered by the WTO rulings," Clancy said. He declined to offer further details on how exactly the EU intends to comply with the panel ruling.
The Geneva-based WTO had given the EU until Dec. 1 to comply with a WTO appeals body decision in May, which found Airbus received state subsidies that hurt Boeing.
The disputed subsidies, which Washington claims amounted to $18 billion over several decades, are part of a long-running trans-Atlantic trade spat.
The European Union has in turn brought a case against the United States over aid to Boeing that a WTO appeals panel is expected to rule on early next year. December 1, 2011 African Union. The African Union (AU) with financial support from the African Caribbean Pacific Multilateral Trade System (ACP MTS) Programme of the European Union (EU) held a preparatory meeting from Sunday November 27 to Monday November 28, 2011 at La Palm Royal Beach Hotel in Accra.
The objective of the meeting was to facilitate the preparations and participation of AU countries for the Eighth World Trade Organization (WTO) Ministerial Conference (MC8) scheduled for Geneva, Switzerland, from December 15 to December 17, 2011.
Participants included representatives from AU Commission, AU Trade Ministries and agencies involved in trade policy negotiations and implementations, AU and EU delegates from Geneva, the private sector, civil society, and other stakeholders involved in multilateral trade issues.
A statement signed by Mrs Monica Bleboo, General Co-ordinator of the AU programme and released to the Ghana News Agency on Tuesday, said the meeting also provided opportunities for delegates to discuss existing contentious issues within the Doha Round that impacted on African trade and to coordinate positions of the members of the AU on common texts on those issues.
It indicated that the major outcome of the Workshop was the creation of an appropriate awareness on the major issues to be discussed at the Eighth WTO Ministerial Conference.
“Thus the workshop also served as a forum for the exchange of views on the items and issues that will be discussed and deliberated upon during the impending Ministerial Conference,” it stated.
The ACP MTS Programme is an EU financed programme that gives a response to the need to actively involve ACP countries in the multilateral trading system, enhance their national development and support their international integration.
It was specifically designed to provide tutoring activities aimed at creating and/or consolidating negotiation capacities able to ensure all countries, equal benefit from WTO policies and rules.
November 30, 2011 Germany. Germany will raise the concern of Bangladesh about a proposed EU duty waiver to Pakistan at the next World Trade Organisation meeting in Brussels, said the leader of a delegation with visiting German President Christian Wulff.
Karl-Ernst Brauner, director of the Department of Foreign Trade Policy of Germany's Ministry of Economics and Technology, said he will discuss the issue as Bangladesh has already cleared its position regarding the proposed duty waiver at a recent WTO meeting.
“I will raise the issue at the meeting. But, I have not made up my mind yet in this regard,” Brauner said after a meeting with Commerce Minister Faruk Khan at his secretariat. Brauner led the delegation at the meeting.
Pakistan sought the EU duty-waiver for its 75 products, mainly textile and readymade garment items, as the country faced devastating floods last year.
But Bangladesh urged the WTO to impose a cap on export of eight Pakistani garment items as both the countries are strong in the eight items.
Brauner said German businessmen are interested to invest in the garment and textile and shipbuilding sectors of Bangladesh.
Bangladesh's exports to Germany will continue to rise in future as the demand for clothing items is robust in Germany, he said.
After the meeting, Saiful Islam, president of Bangladesh German Chamber of Commerce and Industry, said Germany's Multiline Textil GmbH will soon invest around 100 million euros in Bangladesh. November 29, 2011 Russia WTO. Russian Federation is soon to get the membership of the World Trade Organization (WTO) and this is likely to help EU apparel retailers to set up shops in Russia.
With the Working Party on the Accession of the Russian Federation to the WTO adopting the accession package on 10 November 2011, Russia is now a step closer to acquiring the membership. The WTO Ministerial Conference to be held from 15 - 17 December, 2011 in Geneva, Switzerland is expected to approve the documents and formally accept Russia as a WTO Member.
Speaking on the subject with fibre2fashion, a senior official at EuroCommerce, said, “Russia’s accession to the WTO would make it easier for EU apparel retailers to launch outlets in Russia.”
“Post-accession, both Russia and the EU will be subject to the same set of rules that will be respected by both nations. This will bring more stability in the market,” according to Mr. Ralph Kamphöner, senior international trade advisor at EuroCommerce, which represents the retail, wholesale and international trade sectors in Europe.
Elaborating further, he stated, “Apart from the fact that those who want to open retail outlets will be able to do so based on general agreement on certain services, it will also establish disciplines for traders and so they will also be under much more stable legal framework.”
He further emphasized, “It would be important for the European retailers to enter the Russian market and get their domestic people in the Russian market as well.” November 28, 2011 China. China’s ministry of commerce announced on Friday that it had opened an investigation into whether American subsidies and other policies in the solar, wind and hydroelectric sectors had unfairly hurt the industrial development of China’s renewable energy industries.
The announcement comes two weeks after the United States Department of Commerce said that it had accepted a request by SolarWorld Industries America and six other companies in the United States for an investigation into whether Chinese solar panel manufacturers had obtained export subsidies from the Chinese government, or had dumped solar panels in the United States for less than it cost to manufacture and distribute them.
The Chinese ministry said in a statement on its Web site that its investigation would end by May 25. That could allow the ministry to retaliate if the Commerce Department imposed punitive tariffs on shipments as part of either its antidumping investigation, for which a decision is due by mid-March, or as part of the antisubsidy investigation, for which a decision is due by mid-May. November 25, 2011 US celebrated Thanksgiving yesterday and
"Black Friday" today. November 24, 2011 Canada and Mexico. The US’ country-of-origin labelling (COOL) requirements for livestock and meat exports have been deemed WTO illegal, according to a ruling issued on Friday 18 November (DS384, 386). The three-member panel found that the label, which was challenged by both Canada and Mexico at the global trade body in 2008, was too trade restrictive, in addition to discriminating on the basis of nationality.
The panel, however, did not dismiss the right to label the origin of food; the experts only found fault with this particular US practice. Origin labels thus continue to be a lawful policy instrument under WTO rules.
The ruling marks the third time this year that a panel has dismissed the US implementation of a consumer protection policy, with all rulings calling for stronger protection and/or more consumer information.
In all three cases, the dispute panels recognised the US’ right to pursue the objective behind these policies. The problem was instead with the US’ implementation of these measures, either for not reaching far enough, thereby being misleading or unable to achieve the objective, and/or by being discriminatory.
Beef and pork producers in Canada and Mexico and the meat processing industry in the US applauded the ruling, hoping that it would ease the economic situation of the highly integrated North American meat market.
The decision was equally welcomed by the Canadian government, with Agriculture Minister Gerry Ritz calling it “a clear win for our industry.” A statement from the Mexican Economy Ministry similarly called the ruling an “important victory.”
The US, on the other hand, has already indicated an interest in an appeal. “Although the panel disagreed with the specifics of how the United States designed those [labelling] requirements, we remain committed to providing consumers with accurate and relevant information with respect to the origin of meat products that they buy at the retail level,” said Andrea Mead, Press Secretary for the Office of the US Trade Representative (USTR). November 23, 2011 Trade Pact. The private sector Transatlantic Business Dialogue wants Obama and European Commission President Jose Manuel Barroso to agree when the two leaders meet on Monday to explore the idea of negotiating a "TransAtlantic Economic and Trade Pact."
The advisory group includes U.S. corporate giants General Electric, Coca-Cola and Microsoft as well as European heavyweights Airbus, Siemens and ThyssenKrupp.
The business leaders also called on Obama and Barroso to tackle the "transatlantic debt crisis" with a plan to bring debts and deficits back to sustainable levels and to take a number of steps to promote innovation and green
growth "Even though the president had a very successful trip to Asia and many of our member companies of course are invested in Asia ... the transatlantic relationship is where the money is," Kathryn Hauser, the group's U.S. executive director for business organization, told Reuters on Tuesday.
Obama and leaders of eight other Asia Pacific economies announced this month in Honolulu they had agreed on the "broad outlines" of a deal to cut tariffs and other trade barriers and were committed to reaching a comprehensive final agreement.
Japan, Mexico and Canada also expressed interest in joining the talks on the Trans-Pacific Partnership pact, which now include the United States, Australia, New Zealand, Malaysia, Vietnam, Singapore, Brunei, Peru and
Chile. Obama then traveled to the East Asia Summit in Indonesia, where he underscored that the United States sees its future prosperity tied to the fast-growing Asia Pacific region.
Still, the 27-nation European Union remains the United States' largest trade and investment partner.
Together, they account for about half of world economic output and nearly one-third of world trade. Two-way trade is about $3.6 billion a day and transatlantic investment supports an estimated 7.1 million jobs, according to the U.S. Trade Representative's Office website. November 22, 2011 Vanatu. Campaigners against Vanuatu joining the World Trade Organisation say they will keep pressing their anti-WTO message in the community despite not being allowed to stage protests at the weekend.
Parliament is due to debate ratifying Vanuatu’s WTO membership tomorrow. Authorities refused permission for the protests, planned by the Vanuatu Christian Council, the Malfatumauri National Council of Chiefs and civil society groups.
One of the organisers, Pastor Alan Nafuki, says the protestors have been denied a democratic right but he says they’ll use other means to push their message that joining the WTO won’t bring any good to the country.
“I call it devil is coming. This country has been declared (for) the second time, the happiest place on earth and if we are not careful about this then this could turn into something else. We’ve struggled to achieve the independence and integrity of this nation. We want to keep it that way.”
Mr Nafuki says he will travel to Geneva next month to represent the views of Vanuatu’s chiefs, churches and civil society groups.
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