IBT News Blog

Business Week has a nice summary just posted of the rice crisis:

http://www.businessweek.com/globalbiz/content/apr2008/gb20080428_894449.htm

Rice is obviously one of the most important crops in the world, and has been for a very long time. Much of the worlds poorest populations, particularly in Africa and Asia depend on rice as the primary staple their daily diet.

submitted by Dave

Rice prices have soared tremendously, one statistic in this article is particularly telling I think: Rice from Thailand was priced at $320/ton at the end of last year. Now, a mere four months later, it is $1100/ton. Thats more than a 300% increase! The article points out that most rice is not traded, but consumed domestically.

One thing that is not really discussed in this short summary however is the impact on urban poor. As we all know, urban areas in Africa and particularly in Asia are drawing many people from rural areas. Imagine the impact on these people who spend a large portion of their budget on food, particualrly rice. This is also putting pressure on the very organizations that provide aid for the world's hungry. Estimates are that this spike in rice prices will push an additional 100 million people into starvation conditions. Thats the equivalent of one third of the U.S. population that could feed itself before, but now will be unable to feed itself.

Some other interesting points brought out in this short peice: the role of speculators and the impact of export restrictions imposed by India and Vietmnam (the second and third largest exporters of rice respectively). These measures backfired and encouraged speculators to horde rice. Speculators are playing a big role in making this problem worse, much as they do in the oil markets.

Finally, high oil prices and the drive for biofuel are also contributing to the escalating rice crisis. Because so much corn is being grown for ethanol in the US, that decreases the amount of wheat that is planted. Higher wheat prices makes more people turn to rice for their needs, this increases demand for rice and the price for it.

This problem has the potential to get far worse, lets hope that somehow the price goes back down or at least stabilizes. If it doesn't we are looking at a humanitarian disaster of epic proportions.

An article from the british newspaper The Independent, published on April 23, deals with the financial bubble burst in China which started last October, and which affected the CSI 300, the leading indice of the Shenzhen and the Shangai stock exchanges. This market decline is described by the commentator as the most severe since the record reached by the CSI 300 in mid-October 2007.

The shock was hard for investors of the Shangai stock exchange, as a majority of them are retail investors, that is to say, individual investors who purchased small amounts of securities. Many Chinese people had invested much of their personal assets to buy stocks and take advantage of the financial positive trend. The commentator further explains (this may be directly linked to small investors' inexpertise) that lack of diversification of portfolios for a majority of investors could just make the strike more painful.

As a response to the decline, the Chinese Government lowered the tax on securities transactions from 0,3% to 0,1% on April 24 (that was already its level in May 2007, before the same Government decided to raise it to 0,3% to cool down what was considered as an overheated market at the time). The decision was greatly appreciated by investors at large, since the CIS 300 went up by almost 10% on the same day. But for experts, this governmental intervention will only have a positive impact on the short term.

To read the analysis from The Independent, written before the Chinese Government intervention, follow the link below:

http://www.independent.co.uk/news/business/analysis-and-features/chinas-bubble-bursts-814073.html

Tina Wetchy

Educated consumers with sophisticated palates have come to expect their local grocery stores to be stocked all year round with foodstuffs that normally would not be grown during certain times of the year. These consumers have gotten used to the low prices and welcome further price drops; however, cheaper and non-seasonal produce, among other groceries, comes at another price--Pollution. Particularly carbon dioxide emissions from ships and planes, whose fuel for transporting goods, including food, is exempt from taxes, unlike trucks, cars and buses. Proponents of repealing the exemption and implementing a tax say ending these breaks could help ensure that producers and consumers pay the environmental cost of increasingly well-traveled food. While companies are beginning to include carbon "footprints" on the labels of their products, they are far from accepting any type of taxation on transportation enabling them to take advantage of cheaper processing and production costs abroad.

The notion of a repeal of the agreement barring taxes on air and shipping fuel, and the subsequent taxation on the same is a good idea in theory, however, in practice it will not likely work. While many countries would gladly take advantage of the extra tax revenues, those countries choosing not to implement a tax would incur enormous trade advantages, and create an unbalanced, international "patch-work" of taxation. In addition, there are other avenues that can deal with the problem of pollution as a result of transportation. Educating consumers about products' carbon footprints is a good start; with information at hand, people will make conscious decisions when buying goods whose pollution history is easily traceable. The market, having spoken, will govern how companies conduct their respective businesses and give them an ultimatum; either offset your carbon or find new avenues for cost cutting that are less pollutive.

submitted by Michael

By plegding to help the national airline Alitalia financially, and by announcing the grant of a 300 million euros loan, the newly-elected Italian Prime Minister Silvio Berlusconi has entered into a difficult battle with the European Commission. Alitalia was created in 1947. It started facing severe financial hardships in 2001 and the situation just kept worsening. The Italian company is now close to bankruptcy: its debt averages 1,4 billion euros, and its losses total 1 million euros per day.

See the article published in the NY Times:

http://www.nytimes.com/2008/04/24/business/worldbusiness/24alitalia-web.html?_r=1&scp=1&sq=alitalia&st=cse&oref=slogin

State aids in the European Union, an antitrust law notion

As a Member State of the European Union, Italy must abide by European law and legislation, which has prohibited State aids (European law wording for subsidies) since the founding of the European Union in 1957. This prohibition ensures that governmental actions do not distort competition among Member States and intra-European trade. If the loan to Alitalia was to be analized as a “State aid”, it could be struck down by the European Commission, that is the European antitrust authority. And if nevertheless, Italy decided to implement the measure, the European Commission would be entitled to recover the amount of the loan, as a penalty.

A State aid is an advantage in any form whatsoever granted by national public authorities on a selective basis and which favours undertakings (for the complete definition, refer to Article 87 of the Treaty establishing the European Community:

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:12002E087:EN:HTML )

See also the document “Application of Articles 92 and 93 [currently 87 and 88] of the EC Treaty (…) to State aids in the aviation sector”, which provides for a specific regime of scrutiny:

http://ec.europa.eu/dgs/energy_transport/state_aid/doc/art_92_93_en.pdf

Any aid measure by a Member State must be notified first and exclusively to the European Commission for approval. In the Alitalia case, the European Commission has expressed some doubts about the legal nature of the loan to the airline. Prime Minister Berlusconi argues that the measure would be a “commercial” loan, that is, a loan with the same characteristics and interest rate as any other loan granted on the open market, so that Alitalia would not be treated more favorably than any other economic operator. But the European Commission takes the view that such measure would nevertheless be analysed as a State aid where the creditor knows that advantage is conferred to an insolvent debtor. The interpretation given to the notion of State aid by the European Court of Justice is very broad, both in terms of origins of the subsidy (State or State-controlled entities) and nature of the grant (it may be positive grants of money, or tax exemptions…). Loans with preferential interest rates have already been struck down as amounting to State aids, hence the preference for a “commercial” loan for Alitalia.

Explanations: European Commission strict scrutiny

With respects to subsidies to airlines, the European Commission will scrutinize several points (see “Application”, p.690):

- “whether the loan is made on normal commercial terms” (interest rate charged, security backing the loan sufficiently enough to repay it in the event of default), and

- “whether such loan would have been available from a commercial bank”.

The test used is the “market economy investor” test: if the expenses incurred to invest in the airline would yield structural profits in the future, which would cover expenses, then the loan can be granted (see “Application” p.689). But if the sole effect of the loan is to cover operating losses, than it is sure to be struck down by the European Commission.

Italy has a particular incentive to label the State measure as a “commercial” loan: it has already resorted to subsidies in aid of Alitalia with the consent of the European antitrust authority. The State aids prohibition is not a full-scale one: Articles 87(3) and 87(2) of the Treaty establishing the European Community set forth exceptional situations (called “exemptions”) where aid measures are deemed “compatible to the [European] common market”. In the case of Alitalia, could Italy ground its contention on Article 87(3)(c) and argue that the loan “promote[s] the development of [a] certain economic activit[y]” in a way that preclude airlines market concentration (thus promoting competition on the European territory)?

The reasoning, if used, is not likely to convince the European Commission. The “Application” guidelines set forth a strict scrutiny and a restrictive interpretation of Article 87(3). Insofar as the measure does “not adversely affect trading conditions to an extent contrary to the common interest” (Article 87(3)(c)), the State aid to airlines must be part of a “comprehensive restructuring programme”. In short, the airline should not have received previous State aids, and the aid measure should render it viable structurally, within a reasonable time (for details, see “Application”, p.692 and 693).

But another limit applies: a 10-years buffer period must be left between 2 grants. Italy had already been authorized to grant State aids to Alitalia (1,49 billion euros) from 1997 to 2001. For European Commission Transportation Spokesman Jacques Barrot, any new aid measure should consequently not be granted before 2011.

Suspense

Should this “commercial” loan granted by Italy and designed to save a doomed company and its employees (some 21,000) be upheld? After this overview of European law, the answer by the European Commission is likely to be negative.

On the European Commission and its European trade law policies, see its website:

http://ec.europa.eu/index_en.htm

Submitted by Tina

This article contains comments from the UN and World Bank on the rise of global food prices.

http://www.chinadaily.com.cn/world/2008-04/29/content_6652795.htm

submitted by aurelia

This is an observation about current bank practices and its interaction with the economy. Interesting read.

http://www.economist.com/opinion/displaystory.cfm?story_id=11089594

submitted by aurelia

This article discusses the expansion of several Lebanese banking operations to neighboring countries. See http://www.ft.com/cms/s/0/20702b64-114a-11dd-a93b-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=fc3334c0-2f7a-11da-8b51-00000e2511c8,print=no,_i_email=y.html

The cost of farm land in Europe has risen to a new high level. See http://www.ft.com/cms/s/0/55c8dc0c-1159-11dd-a93b-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=3ee7fd72-e9dd-11dc-b3c9-0000779fd2ac,print=no,_i_email=y.html

This article discusses the impact of freeing trade between the US and the Dominican Republic on the Dominican Republic. See http://www.ft.com/cms/s/0/1ec611da-116c-11dd-a93b-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=a22ad130-8ad8-11db-8940-0000779e2340,print=no,_i_email=y.html

This article discusses Mexico and Canada's support for US efforts to expand NAFTA and the controversy over expanding NAFTA. See http://www.iht.com/articles/2008/04/23/america/23trade.php

The government of Macau is ceasing allowing an increase in gambling operations despite these operations being extremely lucrative to the state as a whole. See http://news.bbc.co.uk/go/em/fr/-/2/hi/asia-pacific/7362683.stm

The leaders of four Latin American countries have devised an agreement to control the costs of food within their countries. See http://news.bbc.co.uk/go/em/fr/-/2/hi/americas/7364153.stm

New information indicates that the rate of business morale in France and Germany have declined. See http://www.iht.com/articles/2008/04/24/business/gcon.php

The Office of the Comptroller of the Currency (OCC) was established in 1863 as a bureau of the US Department of the Treasury. The OCC charters, regulates and supervises all national banks. Furthermore, it supervises the federal branches and agencies of foreign banks.

Typical to many government agencies, the OCC performs quasi-legislative and quasi-judicial functions. It has the authority to issue agency rules, legal interpretations, and corporate decisions concerning banking, bank investments, bank community development activities, and other aspects of bank operations.

The OCC activities are based upon four objectives: 1) to ensure the safety and soundness of the national banking system; 2) to encourage competition by allowing banks to offer new products and services; 3) improving the efficiency and effectiveness of the OCC; and 4) to ensure fair and equal access to financial services of all Americans.

http://www.occ.treas.gov/aboutocc.htm

Recently, the OCC announced the creation of a new group to focus on international supervision, stating that "International banking issues have grown increasingly important to the OCC and the national banking system."

http://www.occ.treas.gov/ftp/release/2008-37.htm

This could raise several questions concerning increased political administration in private banking issues. Essentially, since the OCC has the authority to pass regulations and enforce them upon national banks, it has the ability to affect how national banks engage in international agreements.

Suppose that the President decides that it does not condone political activity in Cuba. To foreclose investment in tandem with US banks, the President orders the OCC to scrutinize prospective banks who are in communications with Cuban investors. Effectively, without formal action or accountability, the executive can unilaterally prevent private investment activity to further unrelated agendas.

Granted, perhaps that is a very cynical view, but in my opinion it is not that improbable for the Executive to exercise his influence in that matter. Do you agree that this could create an avenue for underhanded political activity in international banking? Or do you think that the creation of the new group on international activity in OCC will ultimately lead to better coordinated and more profitable investment activity while protecting the banking industry within the United States?

submitted by: Brian

This article discusses the impact of rising fuel costs on US airline profit margins. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7363247.stm

Wal-Mart has announced that it will begin to ration its sales of rice across its stores. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7363970.stm

The price of rice continues to climb due to uncertainty over future supply. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7362538.stm

This article discusses the inconsistencies in international air travel and airline regulation and their effects on the flying public. See http://www.iht.com/articles/2008/04/23/business/safety.php

Japanese export rates have begun to decline due to the state of the overall US economy and market. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7362277.stm

This article discusses the EU debate over continuing farm subsidies in the current global food market, as well as the WTO issues which are attached to these debates. See http://www.iht.com/articles/2008/04/23/business/farm.php

This article discusses the potential impact of environmental legislation currently pending before the US Congress on the development of Canadian oil sand as a source of energy. See http://www.ft.com/cms/s/0/13efc1f2-1004-11dd-8871-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=5aedc804-2f7b-11da-8b51-00000e2511c8,print=no,_i_email=y.html

New information suggests that the size of the Japanese workforce is slowly shrinking. See http://news.bbc.co.uk/go/em/fr/-/2/hi/asia-pacific/7360077.stm

This article discusses new attempts by pharmaceutical companies to extend the lives of their patents. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7355527.stm

In an update to a previous posting, it appears that Chinese weapons meant to be sold to Zimbabwe might be returned to China after public outcry over the sale. See http://news.bbc.co.uk/go/em/fr/-/2/hi/africa/7360438.stm

This article discusses Turkey's newest bargaining strategy in its bid to become a member of the EU. See http://www.iht.com/articles/2008/04/22/europe/letter.php

This is a follow-up story on a previous posting regarding tainted heparin from China. See http://www.iht.com/articles/2008/04/22/business/heparin.php

Air France-KLM has announced that it will no longer seek to acquire Alitalia. See http://www.iht.com/articles/2008/04/21/business/21alitalia.php

This article discusses the likely changes in investment strategy which US investment firms will be making in light of the credit market crunch and the general downturn in the global economy. See http://www.iht.com/articles/2008/04/21/business/assets.php

This article discusses the impact of the fluctuating economy - especially in food-based commodities - on US farmers. See http://www.iht.com/articles/2008/04/21/business/commodity.php

Phone carrier Vodafone has become one of the most recognized brands according to a new survey. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7357560.stm

This article discusses the projections of a Singapore financial group regarding the future of the global economic community. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7357998.stm

This article discusses the efforts made by the British government to counteract the affects of its new - and highly controversial - tax laws. See http://news.bbc.co.uk/go/em/fr/-/2/hi/uk_news/politics/7359278.stm

Found a comment by Obama, and posted on some blogs, that was pretty interesting. It was not interesting for its substance, but its striking lack of it, and promise to do actually nothing. As the blogger eloquently put it:

Tough Talk on China's Currency

This article discusses Spain's new economic legislation. See http://www.iht.com/articles/2008/04/18/business/18specon.php

This article discusses the trends in US businesses which are doing well in the current economic climate and those which are suffering as a result of it. See http://www.iht.com/articles/2008/04/18/business/earns.php

Scotland's only oil refinery expects that its operations will cease soon due to an anticipated strike. See http://news.bbc.co.uk/go/em/fr/-/2/hi/uk_news/scotland/tayside_and_central/7356235.stm

This article discusses the link between South Africa, China and Zimbabwe with regard to transporting arms to the Zimbabwean government and the massive controversy it has caused. See http://www.iht.com/articles/2008/04/19/africa/19zimbabwe.php

This article discusses the WTO's new policy stance on the focus of international aid away from traditional areas and towards agricultural assistance. See http://news.bbc.co.uk/go/em/fr/-/2/hi/europe/7355949.stm

On April 16, the House passed the Jubilee Act for Responsible Lending and Expanded Debt Cancellation (HR 2634), sending the legislation to the Senate. The legislation calls on the US Treasury Department to negotiate at the International Monetary Fund (IMF) and World Bank for an agreement for debt cancellation for poor countries that need cancellation to meet the Millennium Development Goals (MDGs) but do not currently qualify for the current IMF/World Bank debt relief initiative.

Here's a link to the House bill.

This article discusses the efforts of the Royal Bank of Scotland (RBS) to raise funds from its shareholders in order to survive the current credit situation. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7353774.stm

In a landmark move meant to assist in the promulgation of several trade treaties between the US and Korea, the Korean government has announced that it will relax its restrictions on importations of US meat products. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7353767.stm

This article discusses offers by the Asian Development Bank to assist countries suffering the economic fallout from the global rise in rice prices. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7354950.stm

This article discusses the political and societal ramifications of the rice market problems on Asian nations. See http://www.iht.com/articles/2008/04/18/asia/food.php

US financial firm Citigroup has announced massive losses and will layoff at least 9,000 staff members as a result. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7354266.stm

On April 17, the WTO released a synthetic analysis of trends in world economy in 2007, and prospects for 2008 on the main aspects of international trade. Not surprisingly, the Organization is quite pessimistic about the near-term. Follow the link to know more: http://www.wto.org/english/news_e/pres08_e/pr520_e.htm Tina Wetchy

This article discusses the EU's announcement that China supplied the greatest number of dangerous toys on its market last year. See http://news.bbc.co.uk/go/em/fr/-/2/hi/europe/7353118.stm

This article discusses the recently announced agreement between Libya and Russia, under which Russia will forgive millions of dollars in Libyan debt it holds from the Col War period in exchange for Libyan assurances that military and other contracts will be awarded to Russian businesses. See http://www.iht.com/articles/2008/04/17/business/rusbiz.php

A major US grocery store has stopped purchasing Chilean salmon due to concerns over quality after the Chilean salmon stock has been ravaged by a new virus. See http://www.iht.com/articles/2008/04/17/america/17chile.php

This article discusses the impact of the Australian drought on the rising price of rice and decrease in supply. See http://www.iht.com/articles/2008/04/17/business/17warm.php

In an attempt to control rising rice prices, Sri Lanka has announced that it will cap the prices which can be charged for various forms of rice. See http://news.bbc.co.uk/go/em/fr/-/2/hi/south_asia/7352615.stm

The EU is taking a stand against recent attempts by rice producing nations to curb rice exports. See http://news.bbc.co.uk/go/em/fr/-/2/hi/europe/7352091.stm

This article discusses the follow-up plans announced by China and the Philippines as both nations attempt to handle the global increase in rice prices. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7352038.stm

Japan Airlines has been fined more than $100 million for fixing prices on its cargo shipments to the US. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7352292.stm

Interestingly, as the world is in the grip of rising rice prices, Ghana has created a hybrid rice plant that could save its population from starvation or high prices. However, as this article discusses, a key issue in the success of the hybrid rice is the willingness of the Ghanaian population to eat it. See http://news.bbc.co.uk/go/em/fr/-/2/hi/africa/7350856.stm

The British government has announced that it will attempt to stop the damaged mortgage market by implementing a bond swap. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7351073.stm

This article discusses the argument between the UK beef industry and EU meat regulators over the use of mince, a traditional British ingredient. See http://news.bbc.co.uk/go/em/fr/-/2/hi/europe/7349320.stm

This article discusses the massive increase in the inflation rate in Zimbabwe for February, 2008. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7351086.stm

This article discusses new attempts by a variety of banking institutions to stop bad banking practices and improve the situation of the banking industry. See http://www.iht.com/articles/2008/04/16/business/bis.php

New figures indicate that the UK unemployment rate fell during the first quarter of 2008. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7350042.stm

This article discusses Canada's attempts to recognize a compound prevalent in everyday plastics as toxic and to label products which contain it. See http://www.iht.com/articles/2008/04/16/business/plastic.php

This article discusses a new campaign targeted at members of the European Parliament, seeking to end the trade in tigers and tiger parts. See http://news.bbc.co.uk/go/em/fr/-/2/hi/science/nature/7348449.stm

Inflation within the Eurozone area reached a new high level. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7350101.stm

New figures reveal that Chinese food prices have gone up dramatically during the last year, raising concerns about an increase in inflation overall in China. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7349896.stm

Venezuela has introduced laws which impose a higher tax rate on foreign oil companies which make a profit. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7349986.stm

This article discusses the Japanese government's plans to prevent the sale of a stake in an energy corporation to a British entity. See http://www.iht.com/articles/2008/04/16/business/tci.php

The current repression on Tibetans by Chinese authorities has upset the international public opinion. But which country would take the risk to talk too loud, in a moment where there is so much benefit to be drawn from investing in China? Some politicians like Hans-Gert Poettering (president of the European Parliament) have risen the possibility of boycott (see his words in the Financial Times). But the boycott at issue would be political, not commercial.

Could international trade law ever be used as a way to enforce international human rights law objectively?

Article XX of the GATT set forth exceptions in which the High Contracting Parties are free to adopt measures restricting international trade, that would otherwise be condemnable under the Agreement (as long as the non-discrimination principle is preserved, or as long as the national measure is not a disguised restriction on international trade). But exceptions of Article XX mention no exception relating specifically to human rights, and drafters of the GATT never had the intention to do so. Voices have recommended recently that more deference and consideration be shown by the law of the WTO to this aspect, as humanitarian law should prevail on trade interests (see the Preliminary Report E/CN.4/Sub.2/2000/13 submitted by Special Rapporteurs to the Sub-Commission on the Promotion and Protection of Human Rights, on June 15^th, 2000). But those views are related to the impact of globalization on human rights and mostly contemplate labor law. What if one or several countries wanted to start an embargo on Chinese goods, because of violences in Tibet?

Embargos are contrary to the rules enforced by the WTO. In the Shrimp case (November 6^th, 1998), the Appelate Body of the WTO has ruled that, concerning measures imposing restrictions of trade extraterritorially, there must be a “sufficient nexus” between the State adopting such a measure and the cause for which the measure is taken. Under this standard, which country could establish such a connection between Tibetans and the embargo measure? The nexus would not be deemed inexistant.

This standard is actually consistent with a fundamental case of public international law. In the South West Africa case, which was decided by the International Court of Justice, Ethiopia and Liberia had brought an action to denounce the apartheid regime enforced by South Africa during its mandate. In its judgment of July, 18^th 1966, the Court found that the two countries had no standing to bring this action, because plaintiffs had failed to establish their legal rights or interests in the subject-matter. So that, in international law, there can be no actio popularis (the right for any member of a community to bring an action to defend public and common interests).

This restrictive conception of the international standing shows that moral or humanitarian considerations are not always sufficient to create duties and obligations on members of the international community.

submitted by: Tina

Indonesia has announced that it will move to reduce its rice exports. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7348865.stm

This article discusses the roles of trade and human rights concerns in EU/China relations. See http://www.iht.com/articles/2008/04/15/business/trade.php

This article discusses the Pakistani government's proposals regarding the price of wheat. See http://www.ft.com/cms/s/0/ca4195ac-0a96-11dd-a634-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,print=no,dwp_uuid=4d9dd3aa-5fbd-11dc-b0fe-0000779fd2ac,_i_email=y.html

A Chinese government owned investment fund has bought a 1% interest in British Petroleum (BP). See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7347950.stm

This article discusses the impact of tea cultivation on the Chinese province of Yunnan's economy. See http://www.iht.com/articles/2008/04/15/asia/tea.php

This article discusses the predictions of a Russian oil executive regarding the future of Russian oil supplies. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7348463.stm

Pakistan has publicly requested an oil pipeline alliance with Russia. See http://news.bbc.co.uk/go/em/fr/-/2/hi/south_asia/7347799.stm

A Chinese court has ruled in favor of Gucci in a copyright infringement case involving a Chinese company. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7347936.stm

Delta and Northwest have agreed to merge; if this merger does occur it will result in the world's largest airline. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7347731.stm

This article discusses the rising trend of Australian investmet in Japanese samurai bonds. See http://www.iht.com/articles/2008/04/15/business/samurai.php

This article discusses the link between US and EU biofuels promotion and the current food crisis. See http://www.iht.com/articles/2008/04/15/business/15food.php

This article discusses the World Bank's measures to fight the rising impact of global food shortages and costs. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7344892.stm

This article discusses the impact of the proposed UK budget on UK inflation rates. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7346037.stm

This article discusses a deal between the EU and Turkmenistan which would provide the EU with a gas supply which is not dependent on Russia. See http://news.bbc.co.uk/go/em/fr/-/2/hi/europe/7347051.stm

The Japanese whaling fleet did not meet its threshold capacity for whaking this year, due in large part to the activities of anti-whaling activists. See http://news.bbc.co.uk/go/em/fr/-/2/hi/asia-pacific/7345915.stm

This article discusses a new oil find made by Brazil. See http://www.iht.com/articles/2008/04/14/business/14oil.php

This article discusses one of the many issues raised in regards to the proposed Colombia-US free trade act. See http://www.iht.com/articles/2008/04/13/america/bogota.php

US sales rates rose slightly in March. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7346657.stm

http://online.wsj.com/article/SB120475150477614511.html

This article, published couple of weeks ago, discusses the ‘unfair’ practice by US Customs who were making shrimp importers post a surety bond as insurance for the antidumping tariff. The article calls the suspicious bond as “a novel accounting trick”. As a result of the bond, many shrimp importers were being run out of business as they had to overextend their credit lines. Nevertheless, the bond has been determined by a WTO panel as inconsistent with America’s WTO obligations. The unfairness is clearly evident, as dumping tariffs are not supposed to be protectionist tool that completely impede any foreign imports.

An interesting aspect of the imposition of the bond is how lobbying groups from shrimp producing States are more powerful in Congress than shrimp importing States. Whenever we have discussed antidumping in class, it is important to always consider the internal politicking that goes on in the halls of Congress between the different States. At the end of the day, the concept of antidumping has been continuously misused as a way to protect local industry rather than create a fair trade system. It seems as if the WTO panel has to constantly be on the watch for this because politicians are looking out for their local constituents more. As we have seen in our case studies, however, WTO has given the member countries’ local authorities considerable leeway in determining antidumping tariffs. However, with the imposition of this bond, the penalty was so great that it was irrefutable that the bond was purely protectionist. The article ends by saying that such measures are not in America’s interest, because they hurt America’s credibility. As we have seen in class, however, that credibility does not seem to be strong already.

submitted by: Mohammad

One aspect of globalization is the expansion of international tourism. This article presents an interesting perspective on the implications of opening areas of cultural and religious significance to tourist trade using the example of the Luang Prabang area of Laos, which has historically been a haven for Buddhist monks and monasteries. See http://www.iht.com/articles/2008/04/13/asia/luang.php

This article discusses the marketing strategy of a Chinese sneaker producer. See http://www.iht.com/articles/2008/04/11/business/WBJOE12.php

This article discusses the decisions of the G7 regarding the currency market. See http://www.iht.com/articles/2008/04/13/business/rtreconomy.php

The IMF has issued a new statement containing its projections for the impact of rising food costs on a global scale. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7344892.stm

After riots over food supplies, the Haitian parliament has decided to remove its prime minister. See http://news.bbc.co.uk/go/em/fr/-/2/hi/americas/7344729.stm

The International Energy Agency is lowering its forecast for oil market growth in 2008 due to the current state of the global economy. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7342155.stm

The EU has assessed a 3.5 million pound (roughly $7 million) penalty against the UK Treasury for inappropriately classifying certain types of cakes when applying the VAT to them. See http://news.bbc.co.uk/go/em/fr/-/2/hi/europe/7340101.stm

In a follow-up to a prior posting, a French energy company has indicated that it is also interested in bidding for control of British Energy - a nuclear energy corporation. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7342130.stm

GE has announced that its quarterly profits have declined. See http://www.iht.com/articles/2008/04/11/business/ge.php

This article outlines the measures which the G7 have adopted in order to stem the global credit crunch. See http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7342419.stm

This article discusses claims by the Cuban press that additional economic reforms in Cuba will occur in the immediate future. See http://news.bbc.co.uk/go/em/fr/-/2/hi/americas/7343883.stm

This article disc