China-North Korea

Coal imports

Severing the lifeline

In a move that is set to deal a major financial blow to North Korea, the Chinese Commerce Ministry has said that it has suspended coal imports from North Korea. The import ban took effect in late February and will last till the end of the year. Beijing’s surprise announcement was part of the efforts to enact United Nations’ sanctions against North Korean regime and send a strong message to deter the country from undertaking further nuclear tests. The ban came six days after North Korea successfully test launched a ballistic missile, which was condemned by UN Security Council as a violation of its resolutions. In response to North Korea’s earlier powerful nuclear test, the UN Council in November 2016 had adopted a resolution aimed at significantly curtailing country’s coal exports to China to $400 million or 7.5 million metric tonnes, whichever is lower. China’s coal import ban is likely to cut North Korea’s exports by half, depriving the latter of one of its most important sources of foreign currency. Coal has been North Korea’s largest export item to China, accounting for about 40% of country’s total shipments to China (by value). The country has a huge dependency on China for coal trade as China was its biggest consumer of coal. In retaliation to the Chinese ban, North Korea has also stopped shipments of some rare metals to the Dragon.

 

US-WTO

Trade threat

A knockout punch

The World Trade Organisation (WTO) faced its first attack by US President Donald Trump’s administration after the admisnistration clearly said that it will “not tolerate” unfair trade practices that distort markets.

Downplaying the role of WTO in settling trade disputes, the United States Trade Representatives’ Office in its annual trade policy agenda report (The President’s 2017 Trade Policy Agenda) declared that it was not bound by the WTO’s rulings. The document signaled that the US administration “will aggressively defend US sovereignty over matters of trade policy.” The report also touted Section 301 of the US Trade Act, 1974 as a powerful weapon for trade battles.



The document also sent the message that the US administration, in its quest to slash US trade deficits with China and Mexico, might try to push to the limits as to what is acceptable under WTO rules. However, interestingly, China said that it supports the work of the World Trade Organisation.

UAE

Damaged cars imports

Old is not always gold

Come May 2017, and the roads of UAE will be devoid of used and damaged cars! Yes, you read it right. In a clampdown on illegal import and resale of cars in UAE, the Emirates Authority for Standardisation and Metrology (ESMA) has reportedly banned the import, insurance and registration of vehicles that have been written off in other countries. The directive, which is being seen as a significant step towards making roads safer will come into effect from May 1, 2017 and covers water-damaged, rebuild, burnt out and non-repairable cars besides vehicles with significant manufacturing defects. Going by the official records, UAE every year imports about 3,00,000 used vehicles from United States, Japan and Germany.

Global Arms

Trade at its peak


Return of the cold war?

Is the global arms race on, again? Looks like though! As a study by the Stockholm International Peace Research Institute (SIPRI) suggests that the global exchange of weapons has steadily increased to its highest level since the end of the Cold War. According to the study, the volume of worldwide weapon sales increased by 8.4% between 2012 and 2016 compared with the previous five years and is the highest for any five-year period since the Cold War ended. Interestingly, the spike was fuelled by Middle East (which nearly doubled its imports) and a strong demand from Asia, where India remained the world’s biggest importer of arms accounting for 13% of the global imports. India dwarfed its neighbouring rivals China and Pakistan by increasing its imports by 43% in five years. Meanwhile, United States, Russia, China, France and Germany stood as the five biggest weapons exporter, together accounting for 74% of the world exports.

 

Iran-Pakistan

KINNOW IMPORT BAN lifted

A goodwill gesture
(with strings attached)

Bringing some hope for Pakistani exporters to boost their trade, Iran has temporarily lifted the ban on the imports of kinnow from Pakistan. The move is being seen as a goodwill gesture from Iran. However, the lifting of import ban after six years comes with certain conditions. The restriction has been lifted only for 21 days and the trade will be restricted to just two provinces via land route as imports would not be permitted through air or sea route. These conditions, experts believe, would limit the export volume to 5,000 to 10,000 tonnes of the fruit to Iran. Notwithstanding the conditions, Pak exporters are gearing up to take full advantage of the opportunity.

 

 

 

 

Brazil-China

MEAT import ban


To ban or not to ban...

On March 20, 2017, in what could have been a body blow to Brazil’s meat exports, China placed a temporary ban on Brazilian meat following dramatic media reports published across the world suggesting that a major meat industry scandal was unfolding in Brazil. The ban caused such an upheaval in Brazil’s meat industry that Brazilian government representatives flew to China to resolve the issue with China’s regulatory body. 

After being assuaged by Brazilian authorities that the scandal had no impact on the quality of meat, China lifted the ban on March 25. The move by China, the biggest consumer of Brazilian meat, was accompanied on the same day with the lifting of import bans by Egypt and Chile, bringing hope of an end to a crisis that saw one-fifth wiped off the value of Brazilian pork and poultry exports in the week of the ban.

South Africa

Rhino Horn Export

Proposing trade or poaching?

Now this piece of news is likely to alarm wildlife conservationists and bring cheer to poachers! According to media reports, the South African government is planning to go ahead with proposal to legalise and regulate the domestic trade of rhinoceros horn as well as allow some limited exports. The regulations envisage that foreigners visiting South Africa with a permit to export for personal possession will be able to buy two horns. Exports would be allowed only through Tambo International Airport.



While the government’s move has found support across exporters’ community, animal rights groups argue that the decision will threaten the rhino population in the country. Interestingly, international trade in rhino horn has been banned since 1977 and South Africa too introduced a moratorium on domestic trade of rhino horn in 2009, which has been challenged by rhino breeders several times.