Developed and developing nations are playing the blame game over trade talks which fell apart on Tuesday. While Japan, China and India pointed fingers at each other, the EU and U.S also faced off.
Japan blamed China and India for not shouldering greater responsibilities in the WTO as emerging nations, the dragon and tiger said talks collapsed ultimately because the United States and the European Union ( also Japan’s allies) were unwilling to scrap huge subsidies they pay their farmers.
“Frankly, I’d have to wonder whether China and India weighed their words and actions commensurate with their responsibility and how much they considered the overall global economy as they focused too much on their own interests,” Chief Cabinet Secretary Nobutaka Machimura told the Guardian.
The criticism may sting, but the two Asian giants aren’t likely to succumb to overseas pressure. In retaliation, China’s Commerce Minister and head of its delegation to the Doha Round, Chen Deming, said major developed countries were the biggest beneficiaries of the talks as they set aside a large space for farm subsidies. Developed countries need to fully understand the core concerns of developing nations and should not hinder the settlement of these problems, he told Xinhua.
The BRIC’s are crumbling the house of international trade. After nine days of tough negotiations, which would have resolved the Doha round of free trade talks, prominent BRIC countries India and China failed to reach an agreement with the United States who refused to compromise over measures to protect farmers in developing countries from greater liberalization of trade.
The failure of the talks underscores what is s likely to be the biggest challenge in coming years to expanding world trade: the reluctance of emerging juggernauts such as India and China to risk their newfound success by offering rich nations greater access to the hundreds of millions of consumers rising out of poverty in the developing world, the Washington Post posted.
While it might be a good sign to see the developing powers stand against the might of the developed world, the failure of the talks on the whole, might not work well for the developing nations as the issue of farm subsidies still rests in favor of the developed nations.
Get your pinhole cameras or laptops ready. This Friday, August 1, a total solar eclipse will occur as the moon passes directly between the Sun and Earth for the first time in more than two years. The solar eclipse which will start in Northern Canada will race across the roof of the world before alighting in northern Siberia, where it will skip across central Russia and central Asia and head into Mongolia and northwestern China. The totality is expected to last a maximum of two minutes, 27 seconds, at 1021 GMT, near Nadym, in northern Russia. The record duration for totality is seven and a half minutes, AFP reported. Continue reading
China will enforce Antitrust laws (anti monopoly laws or competition laws) from Friday, August 1st, while India will put the same laws into place by the end of this year. Antitrust laws are expected to delay or thwart high-profile cross-border mergers and acquisitions, in the burgeoning economies, lawyers and business executives warned the Financial Times.
China and India both will implement Antitrust laws based on the European Union model, which will essentially prohibit agreements or practices that restrict free trade and competition between business entities. The law will help control monopoly practices by firms which might use predatory pricing, price gouging, refusal to deal etc. The aim of the law which is to promote fair competition by supervising mergers and acquisitions of large corporations, including some joint ventures, is a cause for concern of many multinationals in the region.
Seized by innumerable natural disasters in the last decade, Asian leaders present at the Asia – Pacific summit in Singapore decided to help each other and develop a common vocabulary during a crisis.
“If you have practiced before, if you know the radio frequencies, you share common language, common procedures, then you can act so much more effectively in a disaster situation,” said Singapore Foreign Minister George Yeo, who chaired this week’s series of meetings of foreign ministers from the Association of South East Asian Nations.
The East Asia Summit (EAS), (or ASEAN+3 summit) a “leaders-driven forum” with India, China and Japan in its fold, “is studying the feasibility of a free trade area among its 16 countries,” the official spokesman for the Summit told The Hindu. The forum of Asian leaders met in Singapore on Tuesday to discuss ways in which Asian nations could enhance their “internal consolidation”. The ASEAN-Plus-Three covers China, Japan, and South Korea, besides all the 10 members of the Southeast Asian grouping.
Although the United States was not a part of the forum, economic linkages between the U.S. and East Asia had already ensured that Washington “is very much a part of this region,” the spokesperson added. The forum however, made no mention of the new Australian proposal of forming a wider “Asia Pacific Community” or even the other idea of a pan-Asian grouping, the spokesman said.