06/02/2023
EU-INDIA: NEW TRADE AND TECHNOLOGY COUNCIL TO LEAD ON DIGITAL TRANSFORMATION, GREEN TECHNOLOGIES AND TRADE
The European Union and India have strengthened their relationship as strategic partners with the creation of a new Trade and Technology Council (TTC).
The new Council will deepen the strategic engagement on trade and technology between the two partners.
The EU and India have a common interest in ensuring security, prosperity and sustainable development based on shared values. The TTIP will provide the political impetus and structure to coordinate approaches and advance technical work. To lay the groundwork, both sides have agreed to work on critical areas such as connectivity, green technologies and resilient supply chains.
08/02/2023
UK AND ITALY SIGN EXPORT AND INVESTMENT AGREEMENT
The UK and Italy have signed an export and investment partnership agreement, Britain’s first with a member of the European Union since leaving the bloc, aimed at boosting the two countries’ bilateral trade relationship.
“This partnership marks an important milestone in the UK’s trading relationship with Europe,” said UK enterprise and trade minister Kemi Badenoch.
9/02/2023
PUTIN SAYS RUSSIA’S ECONOMY WILL GROW IN 2023 DESPITE SANCTIONS
President Vladimir Putin said the Russian economy has overcome the worst effects of sanctions and is expected to post modest growth this year, despite what he described as attempts to undermine certain industries.
In his speech, Putin gave no concrete forecast for Russia’s gross domestic product (GDP).
Russia’s economic landscape changed dramatically after the invasion of Ukraine last February 2022, with Western sanctions excluding its major banks from the SWIFT financial network, limiting its access to technology and restricting its ability to export oil.
Although the government and central bank have acknowledged “difficulties”, Moscow claims its economy is resilient and that sanctions have backfired on the West by driving up inflation and energy prices.
13/02/2023
U.S. DELEGATION TO VISIT PAKISTAN AS THE TWO SIDES SEEK TO REPAIR TIES
US State Department Adviser Derek Chollet will lead a delegation to Pakistan as Washington and Islamabad try to repair strained ties under former Prime Minister Imran Khan. The US delegation will visit Bangladesh and Pakistan from February 14-18 to meet with senior government officials, members of civil society and business leaders.
The US delegation’s visit comes at a time when Pakistan’s economy is still reeling from last year’s devastating floods. The nuclear-armed country is mired in a full-blown economic crisis. Talks between Pakistan and the International Monetary Fund were scheduled to resume online this week after 10 days of face-to-face discussions in Islamabad on Friday ended without agreement on how to keep the country afloat.
The Dawn newspaper reported in late January that Pakistan had sought US support to unblock the stalled IMF programme that would free up $1.1 billion for its strained economy while the country rebuilds.
14/02/2023
CHINA CALLS FOR AN EARLY RESOLUTION OF THE IRANIAN NUCLEAR ISSUE
Chinese President Xi Jinping on Tuesday called for an early and appropriate resolution of the Iranian nuclear issue, while expressing support for the Islamic Republic in safeguarding its rights and interests, according to Chinese state media.
China will continue to “constructively participate” in talks to resume negotiations on the implementation of the Iranian nuclear deal, Xi Jinping told Iranian President Ebrahim Raisi in talks in Beijing.
The 2015 nuclear deal limited Iran’s uranium enrichment programme to make it harder for Tehran to develop nuclear weapons, in exchange for lifting international sanctions. Iran claims it continues to develop nuclear energy for peaceful purposes.
In 2018, then US President Donald Trump pulled out of the deal, claiming it had not done enough to curb Tehran’s nuclear activities, and reimposed sanctions.
China has criticised Washington for withdrawing from the deal and insists the US must take the first step to revive the pact.
15/02/2023
SWISS GOVERNMENT DECLARES SEIZURE OF RUSSIAN ASSETS UNCONSTITUTIONAL
In the wake of the conflict in Ukraine, the international community has imposed restrictive measures against persons, entities or organisations that contribute to the destabilisation of territorial integrity, sovereignty and independence in Ukraine. Switzerland joined the sanctions imposed by the EU at the end of February 2022.
According to a report by the Swiss State Secretariat for Economic Affairs (hereinafter SECO), financial assets in the country worth CHF 7.5 billion have been frozen under the sanctions imposed on those sanctioned for the invasion of Ukraine.
The Swiss government set up a working body to discuss the issue. After analysing the possibility of confiscating frozen assets of those sanctioned for the situation in Ukraine for the reconstruction of Ukraine, they established that the expropriation of private property of lawful origin without compensation was not permitted under Swiss law.
Furthermore, according to statements by the Swiss Ministry of Justice, “The confiscation of frozen private assets is incompatible with the Federal Constitution and the existing legal order and violates Switzerland’s international commitments”. Likewise, the Swiss Bankers’ Association has also opposed the confiscation, “There is no legal basis for confiscation today”.
15/02/2023
JAPAN POSTS RECORD MERCHANDISE TRADE DEFICIT IN JANUARY AS EXPORT GROWTH SLOWS
Japan’s merchandise export growth slowed sharply in January as Chinese demand for automobiles and chip-making machinery weakened, stoking concerns about a global slowdown and creating the country’s largest trade deficit on record.
Aggressive interest rate hikes in other advanced economies have cooled demand for Japanese goods, which came under further downward pressure in January.
However, the lifting of China’s zero COVID policy at the end of last year may improve somewhat the outlook for a global economy teetering on the brink of recession.
“With commodity inflation bottoming out and the yen unlikely to weaken further, import prices are likely to decline from now on, but exports are still trending down, so trade deficits will persist,” said Kenta Maruyama, an economist at Mitsubishi UFJ Research and Consulting.
16/02/2023
COLOMBIA AND VENEZUELA SIGN AGREEMENT TO REACTIVATE TRADE
Colombia and Venezuela have signed an agreement to revive trade between the two countries. The agreement “updates everything that has to do with tariffs, with traded goods, (and) lays the groundwork for a new dynamic, for the expansion of trade between Colombia and Venezuela,” Maduro said.
Diplomatic and trade relations began a process of normalisation in September 2022, after Petro took office in Bogotá last August, having pledged during his campaign to normalise diplomatic relations with the Caracas government.
17/02/2023
EU COUNTRIES READY TO REACH AGREEMENT ON FOSSIL FUEL PHASE-OUT
European Union countries are set to back a diplomatic stance calling for a global phase-out of fossil fuels as they prepare for this year’s UN climate change talks.
The EU’s conclusions on climate diplomacy aim to set out the bloc’s priorities for COP28, including the intention to phase out coal-fired power, and even going further by phasing out all CO2-emitting fossil fuels, including oil and gas.
According to these conclusions, “The EU will systematically promote and call for a move towards fossil-free energy systems well before 2050.”
However, these conclusions are still being negotiated, and some diplomats said it could be delayed as some countries were unhappy with other elements of the text, which covers issues such as the promotion of renewable energy and the EU’s efforts to move away from Russian gas.
19/02/2023
US PLANS NEW SANCTIONS AGAINST RUSSIA, TARGETING KEY INDUSTRIES
The Biden administration plans to impose new export controls and a new round of sanctions on Russia.
The new sanctions would target Russia’s defence and energy sectors and financial institutions. The EU’s proposed new sanctions include Iranian entities deemed to be supplying Russia with drones and other military supplies, technologies, components, heavy vehicles, electronics and rare earths, according to the report.
23/02/2023
THE IMPACT OF THE UKRAINIAN WAR ON TRADE IS NOT AS SEVERE AS EXPECTED, ACCORDING TO THE WORLD TRADE ORGANISATION
World trade grew more than expected last year despite the disruption caused by the Russia-Ukraine war, as the most affected countries managed to switch suppliers or products, the World Trade Organisation (WTO) said.
WTO Chief Economist Ralph Ossa, presenting his latest analysis of the impact of the war on trade, said world trade had “held up well”.
Ossa added that world trade was resilient because WTO members showed restraint in their use of export restrictions. “Part of the explanation (for the limited impact) is that the world trading system remained open,” he said.
Western sanctions on Russia over its invasion of Ukraine have led to a decline in Russian exports to the UK and the US and an increase to China and India.
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