INTERNATIONAL CHAMBER OF COMMERCE
We make business work for everyone, everyday, everywhere A Quarterly Newsletter of ICC Bangladesh Volume 23 > Issue 91 July-September 2020
Latifur Rahman A Legend of Bangladesh Business About ICC Bangladesh International Chamber of Commerce (ICC), The world business organization, with its headquarters in Paris, is having its Centenary Celebration world over in 2019. With its physical presence in more than 100 countries, ICC represents 45 million companies and more than 1 billion workers worldwide. One in every three worker depend on ICC Members for their livelihood. ICC was founded in 1919 in the aftermath of the First World War when no world system of rules governed trade, investment, finance or commercial relations. ICC’s founders, referred to as “The Merchants of Peace”, acted on their conviction that building stronger trade relations between nations would reduce the risk of war and armed conflict. ICC, is the largest and the only private sector non-sovereign organization, which was granted Status of a Permanent Observer at the General Assembly of the United Nations in December 2016. ICC works in close cooperation with national governments and multi-national institutions such as G-8/G-20, World Bank, WTO, Asian Development Bank, UNCTAD, OECD and several UN agencies for promotion, protection and development of world economy. Bangladesh National Committee of ICC, founded in 1994, is comprised of trade organizations, national and trans-national corporations, who represent almost 80% Bangladesh economy. The activities of ICC Bangladesh include promotion of foreign trade and investment, trade policy reviews, business dialogues, seminars & workshops both at home and abroad on related policy issues, harmonization of trade law & rules, legal reforms, updating businesses with the ICC rules & standards for cross border business transactions. ICC Bangladesh has so far organized following regional & international conferences. • 10-11 November 2000: ICC Asia Conference on "Investment in Developing Countries: Increasing Opportunities" organized in Dhaka was inaugurated by the Prime Minister of Bangladesh and attended by a number of high profile dignitaries including the Thai Deputy Prime Minister & WTO Director General Designate, ADB President, UN-ESCAP Executive Secretary and Chinese Vice Minister for Foreign Trade & Economic Cooperation. More than 250 participants from 24 countries participated in this event. • 17-18 January 2004: International Conference on "Global Economic Governance and Challenges of Multilateralism" was held in Dhaka, coinciding with 10th Anniversary of ICC Bangladesh. The Conference was inaugurated by the Prime Minister of Bangladesh and Thai Prime Minister was the Keynote Speaker. WTO Director General, EU Commissioner for Trade, UNESCAP Executive Secretary, Governor of Japan Bank for International Cooperation, six Ministers from three continents, Bangladesh Ministers, ICC Chairman, ICC Vice Chairman, ICC Secretary General and more than 500 participants from 38 countries attended this event. • 27-28 September 2005: Regional Seminar on "Capital Market Development: Asian Experience". The Seminar held in Dhaka was inaugurated by the President of the People's Republic of Bangladesh and attended by Chairmen/CEOs of securities & exchange commissions, stock exchanges, capital market operators, financial institutions and investors from 15 Asian countries. • 13 April 2010: Conference on "Energy for Growth" was held in Dhaka coinciding with the 15 years of ICC's presence in Bangladesh. The Conference was inaugurated by the Finance Minister of Bangladesh and attended by ICC Global Chairman, Minister for Commerce of Bangladesh, Minister for Development Cooperation of Denmark and Adviser to the Bangladesh Prime Minister for Energy & Mineral Resources. Some 800 delegates from home and abroad including energy experts and international financiers from Australia, China, Denmark, India, Germany, Japan, Singapore, Switzerland, UK and USA attended the event. • 25-26 October 2014: International Conference on "Global Economic Recovery: Asian Perspective", was in held in Dhaka coinciding with the 20 years of ICC's presence in Bangladesh. The Conference was inaugurated by the President of the People's Republic of Bangladesh. Minister for Finance & Minister for Commerce of Bangladesh, UNCTAD Secretary General, Ministers from Myanmar and Nepal; ICC Vice Chairman; ICC Secretary General; ICC Research Foundation Chairman; Director of ICC National Committees and more than 500 participants attended this event. • 8-9 February 2017 : The first ever "UNESCAP Asia Pacific Business Forum: Regional Integration to Achieve Sustainable Development" was organized by ICC Bangladesh jointly with UNESCAP under the patronage of the Ministry of Commerce, Government of Bangladesh. The Forum was inaugurated by the Hon’ble President of the People’s Republic of Bangladesh. Ministers from Bangladesh, Sri Lanka, Nepal, UNESCAP Under Secretary General, UNCTAD Secretary General, business leaders and some 600 delegates from home and abroad attended the Forum. • 10-12 December 2019 : "The Asia Pacific Conference on Financing inclusive and Sustainable Development" was organized by ICC Bangladesh jointly with UNESCAP, ADB and LIBF (The London Institute of Banking & Finance) under the patronage of the Financial Institutions Division (FID), Ministry of Finance, Government of Bangladesh to celebrate 100 years of ICC and 25 years of ICC Bangladesh. The Hon’ble President of the People’s Republic of Bangladesh inaugurated the Conference. Video Messages from UN Secretary General Mr. António Guterres and 8th former United Nations Secretary General Mr. Ban-Ki moon were also played during the inauguration. Ministers from Bangladesh, Cambodia, Maldives and Sri Lanka, Under-Secretary-General of the United Nations and Executive Secretary of ESCAP, Central Bank Governors, Business Leaders, Policy Makers, Experts and some 800 delegates from home and 30 foreign countries attended the Conference. As part of its activities, ICC Bangladesh has been organizing Workshops / Seminars on International Trade Finance, mainly for bankers, within Bangladesh and in various countries. Since 2014, the National Committee has organized workshops in Kuala Lumpur (April 2014); in Colombo (February 2015); in Kunming (August 2015); in Yangon (November 2015); in Hanoi ( April 2016); in Bangkok ( December 2017) and in Phnom Penh (April 2018). The National Committee also arranged participation of Bankers from Bangladesh at ICC Annual Banking Meetings held in Singapore (April 2015), in Jakarta (April 2017) and in Beijing (April 2019). Besides, ICC Bangladesh arranged participation of Bankers at ICC Austria Global Trade Conference held in Vienna in May 2017, June 2018 and May 2019, FCI Annual Meeting in Vietnam (June 2019), ICC Academy 8th Supply Chain Summit in Singapore (February 2019) & International Financial Crime Forum in Kualalumpur (July 2019). For professional development of bankers, ICC Bangladesh also organizes Certified Documentary Credit Specialist (CDCS), Certificate for Specialists in Demand Guarantees (CSDG) and Certificate of International Trade Finance (CITF) Examinations in Dhaka, conducted worldwide every year by LIBF (London Institute of Banking and Finance) and endorsed by ICC Paris. ICC Bangladesh participates in most of the World Chambers Congress & ICC World Congresses held every two years and WTO Ministerial Meetings as well as ICC Regional Consultative Group Meetings. The National Committee also arranges visit by Bangladesh Business delegation to different countries for promotion of trade and investment.
Rangs FC Square (5th Floor) Plot- 6A, Road- 32, Gulshan Avenue, Gulshan, Dhaka-1212, Bangladesh Mobile : +8801552203509-12 Email: [email protected] Website: www.iccbangladesh.org.bd Editor’s Note Latifur Rahman : An exemplar of ethical and patriotic businesses Latifur Rahman, Chairman of Transcom Group was the founding member and Vice President of ICC Bangladesh and founding Vice President of Bangladesh International Arbitration Centre until his sad demise on 1 July. He also served as a Member of the Executive Board of ICC, Paris for two consecutive three-year terms from July 2011 to June 2017. His unqualified support, contribution, guidance and active participation, since ICC Bangladesh started its journey in the 90’s, are remembrance with gratitude. Transcom Group, which originated with family tea plantations in 1885, became one of the fastest growing and diversified business houses in Bangladesh over a period of around The Executive Board 47 years. Latifur Rahman, who started his career as a trainee in 1966 in his family-owned W Rahman Jute Mills and was an executive until 1971, established Transcom Group in 1973. Gradually he has spread his excellence of entrepreneurship to various fields. He has President diversified his businesses and institutions. Latifur Rahman believed in corporate culture. Mahbubur Rahman He took over the operations of two big multinationals in 1980s, Eskayef and Philips and kept the old management intact. He believed that the professional management should Vice President be left to do what it can or is supposed to do. Rokia Afzal Rahman Today, Transcom has 16 operational entities from medicine, foods, lighting, electronics to media. It is the local business partner of international brands Pizza Hut, KFC, PepsiCo Members and Philips. It employs more than 17,000 people and the Group’s annual turnover is Abdul Hai Sarker Tk. 80,000 million. A. K. Azad Although the business of the Group suffered tremendously due to Covid-19, it did not A. S. M. Quasem lay off any of its employee as it believes that all the employees are part of bigger family. Aftab ul Islam Latfiur Rahman’s reputation for honesty and integrity were unrivalled and he was Anwar-Ul-Alam Chowdhury (Parvez) universally respected for upholding the highest ethical standards in business. He is one Kutubuddin Ahmed of the few entrepreneurs who have contributed in the economic and social advancement Mahbubul Alam of the country by setting up business houses. He showed that it is possible to do business Md. Fazlul Hoque here and take the nation forward by maintaining a high ethical standard. Mir Nasir Hossain As a superior, says Latifur’s eldest daughter Simeen Rahman, now MD and CEO of Mohammad Ali Khokon Transcom Distribution Company Ltd. that her father was an entirely different person. "When we first joined work he told us in very clear terms that we would not get any extra Mohammad Hatem favours just because we were the chairman's children; we would get a salary and the Rubana Huq ground rules would be the same as for any other employee of the company and we would Rupali Chowdhury be rewarded only if we deserved it." Sheikh Fazle Fahim He believed and was committed to the ideal that a democracy needs a free and Sheikh Kabir Hossain independent press. This led to his very critical role in the creation of the two newspapers Simeen Rahman The Daily Star and Prothom Alo, both recognized universally as the most independent Tapan Chowdhury newspapers in the country. He was uncompromising in principles, ideals and integrity, even if this would go against his own interest. He had been harassed many times for Editor being the owner of the country's leading English and Bangla dailies; but he never gave Ataur Rahman into any kind of pressure. Secretary General Unlike many industrialists in the country, Rahman believed that all industries should have labour unions. He thinks it is important that every industry has an elected Collective Editorial Associate Bargaining Association (CBA). Syeda Shahnewaz Lotika He was awarded the “Oslo Business for Peace Award” by the Business for Peace Deputy General Manager Foundation, Oslo in 2012 as a mark of his highest distinction for outstanding accomplishments in the area of ethical business. He was also awarded Business Executive Contents of the year 2001 by the AmCham Bangladesh; The Daily Star-DHL Special Award in 2012; the SAARC Outstanding Leader Award in 2017 and Lifetime Achievement Award ICC Bangladesh News 3 by the UK Bangladesh Catalysts of Commerce & Industry in 2017. ICC HQs News 17 Mr. Rahman believed that in the next decade Bangladesh's economy will grow Bangladesh Economy 27 significantly and Bangladeshi companies should be playing roles not only in the country, Regional News 39 but also beyond that. Just need to get our act together and set our management practices right, it was his vision. WTO News 50 WE DEEPLY MOURN
ICC Bangladesh is deeply shocked and grieved at the sad demise of founding member and ICC Bangladesh Vice President and Chairman Transcom Group Latifur Rahman at 11.00 am on Wednesday, 1 July 2020. Innalillahi Wainnailayhi Raji'un.
We remember with gratitude his unqualified support, contribution, guidance and active participation since ICC Bangladesh started its journey in the 90s. Mr. Latifur Rahman was elected as a Member of the Executive Board of the Paris- based International Chamber of Commerce (ICC) for two consecutive three-year terms from July 2011 to June 2017.
In 2012 Mr. Rahman was awarded “Oslo Business for Peace Business Icon Award” by the Business for Peace Foundation, Oslo; Business Latifur Rahman Executive of the Year 2001 by the American Chamber of (28 August 1945 -01 July 2020) Commerce Bangladesh; The Daily Star-DHL Special Award in 2012; the SAARC Outstanding Leader Award in 2017 and the Lifetime Achievement Award by the UK Bangladesh Catalysts of Commerce and Industry in 2017.
Mr. Latifur Rahman was also the founding Vice President of the Bangladesh International Arbitration Centre ( BIAC), Chairman of National Housing Finance & Investments, Member, Governing Body of BRAC and former Chairman, Nestlé Bangladesh and Holcim Cement Bangladesh.
Mr. Latifur Rahman has served in many important national bodies in various capacities including President of Metropolitan Chamber of Commerce & Industry (MCCI), Dhaka for seven consecutive terms; President of Bangladesh Employers’ Federation (BEF) for two terms and Member of Executive Committee of Federation of Bangladesh Chambers of Commerce & Industry (FBCCI), Bangladesh Jute Mills Association and Bangladesh Tea Association. He was a Member of the Executive Board of Bangladesh Bank. He has been closely involved with fiscal and trade policy making bodies of the Government as Chairman, Trade-body Reforms Committee and Member, Advisory Committee on WTO.
Transcom Group, which originated with tea plantations in 1885 became one of the fastest growing and diversified business houses in Bangladesh. Rahman's family businesses were nationalized after the independence but he did not stop. He had to start from scratch to build the current business empire in a glowing example of how a man can be successful by strictly following principles and ethics of doing business.
Mr. Rahman founded The Daily Star (1991), country’s premier English daily, Prothom Alo (1998), the largest mass-circulated and most respected Bangla newspaper and ABC Radio (2009), which is the leading FM service in Bangladesh. The newspapers have always pursued a nationalistic and independent position devoid of political leanings, whilst maintaining an uncompromising stance against any fundamentalist/ communal politics.
Today, Transcom has 16 operational entities from pharmaceuticals, foods, lighting, electronics to media. It is the local business partner of international brands Pizza Hut, KFC, PepsiCo and Philips. It employs more than 17,000 people and the Group’s annual turnover is Tk. 80,000 million.
May Allah rest his soul in peace in heaven. July-September 2020 July-September 2 ICC Bangladesh News
Chambers of Commerce/Associations Presidents pay tribute to Business Icon Latifur Rahman : a role model for new generation of businessmen ICC Bangladesh, The world business empire in a glowing example of how supporting partners of the Business organization in association with a man can be successful by strictly for Peace Foundation are ICC, World major Chambers of Commerce/ Associations and Trade Bodies organized a brief discussion on the life and achievements of the Business Icon and ICC Bangladesh Vice President Late Mr. Latifur Rahman followed by a Milad & Doa Mahfil (prayer) on a Virtual Platform at 4.00 p.m. on Thursday, 13 August 2020. The event was organized by ICC Bangladesh, Federation of Bangladesh Chamber of Commerce and Industry (FBCCI), Dhaka Chamber of Commerce and Industry (DCCI), Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, Chittagong Chamber of following principles and ethics of Chambers Federation (WCF), The Commerce and Industry (CCCI), doing business. Today, Transcom City of Oslo, The Oslo Chamber of Foreign Investors’ Chamber of has 16 operational entities from Commerce and the initiators of The Commerce and Industry (FICCI), pharmaceuticals, foods, lighting, Oslo World Trade Centre (OWTC). Bangladesh Association of Banks electronics to media. It is the local Mr. Mahbubur Rahman said that (BAB), Bangladesh Insurance business partner of international Latifur Rahman not only made his Association (BIA), Bangladesh brands Pizza Hut, KFC, PepsiCo and marks by building one of the leading Garments Manufacturers and Philips. It employs more than 17,000 business conglomerate of Bangladesh Exporters Association (BGMEA), people and the Group’s annual but also generated huge employment Bangladesh Knitwear Manufacturers turnover is Tk. 80,000 million. and business opportunities, and Exporters’ Association ICC Bangladesh President Mahbubr contributed in policy formulation (BKMEA), Bangladesh Textile Mills Rahman in his opening remarks said for the economic development of Association (BTMA), Bangladesh "It is hard to speak about the legacies the country as well as played a key Association of Pharmaceutical of Latifur Rahman in such a short role in promoting private sector Industries (BAPI), American time". He described Late Latifur development and attracting FDI. Chamber of Commerce (AmCham) Rahman a business person who never He also served as a Member of the and Nordic Chamber of Commerce compromised in following ethical Executive Board of ICC, Hq for a & Industries (Nordic). and transparent business practices. two consecutive terms of three years, The speakers recalled the ethical His activities stretched beyond the ending on 30 June 2020. He was practices, values and leadership boundaries of Bangladesh. As a the only business personality who qualities of Late Latifur Rahman, a recognition to his ethical business was President of MCCI for seven towering figure in the business and practices, Late Latifur Rahman, consecutive terms. corporate world of Bangladesh and founding Member and Vice President founding Chairman of Transcom of ICC Bangladesh received the Mr. Zaraif Ayaat Hossain, a grandson Group, who passed away at his Oslo Business for Peace Award of late Mr. Latifur Rahman, expressed village home in Comilla on July 1 at in 2012, the highest distinction gratitude on behalf of the family to the age of 75. given to a business person for Presidents of chambers of commerce outstanding accomplishments, said and associations of Bangladesh, The family businesses consisting tea ICC Bangladesh President. It may business leaders and guests for garden and jute mills of Mr. Latifur be mentioned that an independent standing by his grandfather and Rahman were nationalized after the committee of Nobel Prize Winners for organizing the Milad and Doa independence. He had to start from in peace and economics decide Mahfil. He said “ Nanabhai, a beloved scratch to build the current business the recipients of the Award. The husband, father, and grandfather, left July-September 2020 July-September 3 ICC Bangladesh News
us just over forty days ago and the uncultivated in all of us in taking us people like me, the members of the support we, his family have felt from all ahead. Please keep our beloved private sector, the new generation are the business community, has given us Mr. Latifur Rahman and our family enjoying the fruits of dedication and so much strength. For over a month in your prayers and thank you once breaking glass ceilings. Mr. Latifur now, the way you have all fondly again for organizing this Doa Mahfil”. Rahman will be missed by all of us. remembered, honored and admired That being said, the legacy of Mr. our beloved Mr. Latifur Rahman, BIA President Sheikh Kabir Hussain Latifur Rahman will not be measured gives us the courage to look ahead” said “ I cannot say much about Mr. by physical business or other non Latifur Rahman, because I did not living factors. Rather, the legacy of Zaraif observed, “the legacy of know him personally, but I can Mr. Latifur Rahman is found in the Mr. Latifur Rahman also entails say this much that whenever I met people whom he inspired to exceed a representation of deeply rooted him at ICC Bangladesh Board the norm, to instill excitement in values, sense of community and being Meetings and at other places, he bringing reform, to help the business a pillar of support for all of those was always the first to greet and ask community and to discover leaders around him. Though he is absolutely me about my well being. He had who have been obscured from vision. irreplaceable, as a man who was born made immense contribution in the Mr. Latifur Rahman’s legacy are the into a thriving business family, but development and business sector people he inspired and mentored. he lost everything after 1971 and as of Bangladesh by always following Today, we can see them all around a patriot who started his business ethical and transparent business u s”. practices. I always admired how such journey from scratch with a firm a renowned person like him would conviction in the potential of the MCCI Vice President Anis A. Khan always interact in a humble manner. then newly independent Bangladesh. in his remarks said “Mr. Latifur I pray for the wellbeing of his family For us, his family, we will strive, to Rahman was the longest serving and his departed soul”. emulate even a fraction of the force MCCI President. He served for seven years which is the record for for good he was for our country. As DCCI President Shams Mahmud in anyone. Everybody knows that his we look ahead with your support, his remarks observed “Mr. Latifur ethical commitment to business and we look to keep moving towards the Rahman was one of the pioneers of behavior is legendary including the vision of Bangladesh, of businesses’ business in Bangladesh, who helped Business for Peace Award that he responsibility to our country that build the foundations upon which received in Oslo in 2012. I consider Nanabhai believed in, and of values the private sector is flourishing today. him an icon, a pathfinder, a motivator driven by ethical practices that he Because of all the hard work he did, and as Zaraif said, he set examples through his actions. He practiced what he preached. I have evidenced his sense of commitment a number of times; if he said that he will get back to me within a day, then that’s exactly what he would do without any prodding or reminder. The MCCI Gulshan Office which has been in operation for a year now, will stand in shining testimony to his memory. He has donated all the equipment there including air conditioners, sound system and everything we needed. A lounge has been dedicated in honour of Latifur Rahman. Unfortunately he didn’t get an opportunity to see for himself the facilities he endorsed which will remain a disappointment for us. He also made us proud on an international level when the Pepsico Chairman gave award to Mr. Latifur Rahman. It was a wonderful prestige for a Bangladeshi to receive such an award. I hope his legacy will be carried forward by his wife, daughter July-September 2020 July-September 4 ICC Bangladesh News and his grandchildren. I wish them biography of Latifur Rahman if you spoke about his grandson with great all the best and I am sure they will want to be a good businessman," said pride, love and affection. I observed continue in the same way Shamim Syed Manzur Elahi. a different Latifur Rahman, a loving Bhai lead. Apex Group Chairman and caring grandfather. He will be Syed Manzur Elahi, said “since the CCCI President Mahbubul Alam said greatly missed in the roles he played birth of Bangladesh on 16 December “ I agree with Syed Mazur Elahi when in our lives. He had a great journey in 1971, our country has seen no other he said that our future generations this world, he helped millions and we business role model better suited to should follow the footsteps of Latifur pray that his soul finds eternal peace. represent us than Latifur Rahman. Rahman, who himself was an Bangladesh will surely miss him
ICC Bangladesh Vice President Latifur Rahman (8th from left) is seen at a reception held on 3 June 2012 for being honoured with the Oslo Business for Peace Award. He is receiving Memento from ICC Bangladesh President Mahbubur Rahman (9th from Left) and FBCCI President A. K. Azad (7th from Left). Also seen in the picture from left to right are : Masudur Rahman, President, CanCham; Rashed Ahmad Ali, President, JBCCI; Ms. Nihad Kabir, Vice-President, MCCI Dhaka, M. A. Momen, President, BTCCI; Asif Ibrahim, President, DCCI; Aftabul Islam, President, AmCham; AKM Nurul Fazal Bulbul, Member Executive Committee, BAB; Tapan Chowdhury, Chairman, BAPL; M. Azizul Huq, Committee Member, FICCI; Salmam F Rahman, President, BASS; Muhammad Hatem, Vice President, BKMEA; Alhaj Md. Nurun Newaz Salim, Vice President, CCCI; Sheikh Kabir Hossain, Chairman, BIA and Ashraf Hossain, Director BTMA. He built an empire from scratch institution. On his own he built his and we are committed to uphold his without doing anything illegal. He career with integrity and honesty. I standards of not only doing business did business in all honesty with hope that people like us and other but also being a true leader and a good integrity and I think that’s a great businessmen should follow him human being. I on behalf of FICCI, example for future generations to live and lead lives with honesty and would like to thank him for the life he by. There is no need to emphasize dedication”. Mr. Alam also observed lead, and the influence he left behind how patiently Latifur Rahman took that Mr. Latifur Rahman was an in this country and its people”. his business to higher heights because Ambassador of Bangladesh who everyone is already aware of that. I BGMEA President Rubana Huq said has projected the country to the have known him since 1974, he was 3 "We lost a man who taught us not to outside world. As MCCI President, years younger than me, he wasn’t just lose ourselves in any difficulties. It is a Vice President of ICC Bangladesh a business partner but also my close great lesson that we learnt from him. friend. His generosity, simplicity and as well as Executive Board Member He taught us how to turn tragedies honesty of thoughts and reasoning of ICC, Paris he has made immense into strength". She mentioned that is unparalleled. Mahbub and I who contribution in promoting private Late Latifur Rahman never thought were his close friends, will definitely sector globally. of leaving Bangladesh even after the feel his loss which cannot be replaced death of his grandson. Rather, he FICCI President Rupali Chowdhury, in our lives. I would like to end by stood with determination and fought speaking about Latifur Rahman, saying his family is blessed to have against all kinds of difficulties , she said “I had the opportunity to work a man like Latifur Rahman and it is said and observed that the legendary with him in different forums and with his blessings and guidance from businessman taught every one not associations. He was a dynamic and above that Transcom will continue to get depressed even in disastrous talented entrepreneur with humility to thrive”. New generation of situation. We will always remember at core. A soft spoken person with businessmen in Bangladesh should our Bsuiness icon Latifur Rahman firm determination, always focused follow the ethics and principles and will be by the side of his family, practised by the iconic and legendary on the solution, never deviated from she concluded. entrepreneur Latifur Rahman to the core issue. I saw him devastated succeed and serve the country when his grandson was killed, yet his Mr. Mahfuz Anam, Editor of The honestly, he said. "Please read the grief was composed in public when he Daily Star said: "I can't believe that July-September 2020 July-September 5 ICC Bangladesh News
we have to commemorate at this time example of a true entrepreneur and carry forward Transcom group to for Latifur Rahman. I am one of the AmCham is proud to have Transom new height as dreamt by Late Latifur few people who had the opportunity Group as a Member. In recognition Rahman. to work with him." Transcom Group to his success, he was given the is also a majority shareholder of The AmCham Business Executive of the BAPI Senior Vice President Daily Star. "We [Mahfuz Anam and Year Award for 2001. His exceptional Abdul Muktadir said that Mr. Matiur Rahman] can proudly say integrity in Bangladesh and beyond Latifur Rahman established high- that we are one of the freest editors was well acknowledged. We consider quality factories and business in and our spirit of freedom comes him as Brand Ambassador of the pharmaceuticals sector. "The from Latifur Rahman”. He would Bangladesh, AmCham President legacy that he has left behind is never interfere and try to influence observed. simply unbelievable. The kind of even though he was always under commitment he had in this country pressure from various corners to do ICE Technologies Chairman is also unbelievable. "The chairman so, said Mahfuz. “I remember and Mahbub Jamil recalled that he never of Incepta Pharmaceuticals said miss his presence every moment," found any arrogance in Latifur many people believe that Bangladesh Mahfuz Anam said. Rahman. "He had always had a is not a safe place for investment smiling face. A person like him is and many bought homes abroad for Prothom Alo Editor Matiur Rahman rare. We could have learnt a lot had safety. "But he did not do so. He used said that from his student life he had he lived longer." During the last to say that Bangladesh is his place to a dream to take part in building political turmoil, I was in the MCCI invest and he believes in Bangladesh a nation and a free media. “So, I Committee along with him. I have and invested here. Many people responded to the call of Latifur seen his commitment and concern do not know the value of this kind Rahman and became the editor of for the country and his farm believe of philosophy of Latifur Rahman the Prothom Alo. His patriotism, of overcoming all difficulties. which we all businesses should try to believe in democracy, freedom of follow of his ideology and invest in press and non-interference in our BTMA President Mohammad Ali our country ," Muktadir said. "If we work as journalist has made Prothom Khokon said “Late Latifur Rahman follow his principles in business, we Alo what it is today, observed was not only Chairman of Transcom can see a big change in Bangladesh in Editor Rahman. “I found him as a Group but a brand by himself. He the next 15 years." source of inspiration. It is our duty was committed to the country. We to materialise his dreams," Matiur are grateful to him for giving us two Mr. Mohammad Hatem, Vice Rahman said. independent newspapers He was President of BKMEA said "we can a down to earth man. I have not learn how to do ethical business AmCham President Syed Ershad heard of any criticism about him," from Latifur Rahman. We have to Ahmed recalled the contribution he observed. On behalf of BTMA follow him and try to do our business of late Mr. Latifur Rahman to the he conveyed his condolence to the ethically. We pray to Allah to rest his businesses and societies. He was an family and hoped that they will soul in peace in heaven”.
ICC Bangladesh President Mahbubur Rahman (5th from right) and ICCB Vice President Latifur Rahman (4th from right) are seen with Finance Minister AMA Muhith, M.P. (5th from left) and other award winners at 12th Bangladesh Business Award Ceremony organized by The Daily Star & DHL Express in Dhaka on 18 May, 2012. Also seen in the picture from left to right are : Towhid Samad, Chairman of Bangladesh General Insurance Company; Anwar Hossain, Chairman of Anwar Group; Ehsan Khasru, Managing Director of Prime Bank; M. Anis Ud Dowla, Chairman of ACI and Sharmin Hossain, Chairman of Fresh and Safe Agro; Ramesh Natarajan, Vice-President of DHL Express, Rest of South Asia and Desmond Quiah, Country Manager of DHL Express. July-September 2020 July-September 6 ICC Bangladesh News
Mr. A K M Nurul Fazal Bulbul, and his ethical values were second to Executive Board Members: A. Member Secretary, BAB said that none. I want to express our gratitude K. Azad, Aftabul Islam, A. S. M. Mr. Latifur Rahman has left behind to the business icon of Bangladesh. Quasem, Mir Nasir Hossain, Md. a legendry of doing ethical and His departure has created a big Fazlul Hoque; Md. Matiur Rahman, transparent businesses. He was well vacuum in the business sector of the Chairman and Managing Director respected by the all the Members of country. We pray for the salvation of of Uttara Group; Arshad Ali, BAB for his integrity and honesty. He the departed soul and wish his family Managing Director, The Merchants was privileged to have known Latifur to withstand this loss”. Limited; Mohammed Abdul Jabbar, Rahman for more than 30 years. Managing Director, DBL Ceramics ICC Bangladesh Vice President Rokia Ltd.; Muhammad A.(Rumee) Ali, On behalf of BAB Chairman and Afzal Rahman said that it is hard to CEO of Bangladesh International Members of the Executive Board, believe that he was no more."Latifur Aebitration Centre (BIAC); Ghulam Mr. Bulbul paid highest regards to Rahman was an integral part of the Rahman, Executive Vice Chairman, Latifur Rahman conveyed deepest business chamber. He had a unique Eastland Insurance Company Ltd.; condolence to the family. May quality. Latifur Rahman had a lot of Syed Ali Jowher Rizvi, Managing Allah grant him the highest place in fellow-feelings." She recalled Latifur Director, Summit Alliance Port heaven. Rahman's outstanding contribution Limited; Syed Nasim Manzur, to the ICC. "Even our generation has Mr. Tareq Rahman, President NCCI Managing Director, Apex Footwear a lot of things to learn from Latifur said “Mr. Latifur Rahman had an Limited; Waqar Ahmad Choudhury, Rahman because of his integrity excellent personality and was a kind and honesty." She thanked all the Director and Managing Director hearted and perfect gentleman. His speakers and guests. & CEO, Vanguard AML; MCCI contribution was not only in business Secretary General Farook Ahmed sector but also for Bangladesh at The event, among others, was and ICCB Secretary General Ataur large. He was a humble human being also attended by ICC Bangladesh Rahman. ICC Bangladesh-MCCI Memorial for Late Mr. Latifur Rahman "Latifur Rahman is a name Hossain. “July 1 would continue to about maintaining it in running his synonymous with ethical business, be the hardest day for her family business. He was uncompromising ethical values, business excellence every year since 2016. The day serves in principles, ideals and integrity, and the spirit of Bangladesh. But to as a reminder when I lost my Faraaz. even if this would go against his own me, he will always be Abbu [father]," I never imagined that I will lose interest. He had been harassed many said his eldest daughter Simeen Abbu on that very day", she said and times for being the owner of the Rahman, Managing Director & mentioned that it seemed that it was country's leading English and Bangla CEO of Eskayef Pharmaceuticals. the wish of the Almighty Allah that dailies. "As a child, I knew my father as the the two (Faraaz and Latifur) would "Latifur Rahman took Bangladeshi man who kept us all together. As the become one as Latifur left this world businesses to a new height, when he man, he would make all our troubles peacefully in his sleep on this day. received the Oslo Business for Peace disappear. As I grew older, Abbu "Now, July 1 will remain a day to Award, and the Best Business Person began to transform from being my remember not one but for two from Award from the SAARC," Mahbubur hero to my mentor, my confident our family. I can just picture him said. The Oslo Business for Peace and my strength," she said. "I began in my head, smiling, finally united Award 2012 was a recognition for to truly see who Mr Latifur Rahman with his Shazneen and Faraaz". She Latifur's business ethics and social has always been, to his loved ones, to promised that her father's legacy responsibilities. In the business his friends and to 17,000 members of will live on. "I promise that what you world, the award is almost similar to the Transcom family. His unwavering taught us about leading a life filled the Nobel Prize. stance, ethical business practices and with integrity and ethical values integrity were the values he lived by will go from strength to strength. I "Mr. Latifur Rahman was an every day”, she said. promise you that your life's legacy exceptional friend, whose absence will continue." reminds me of his kind presence in She said her father was an my everyday life." Mr. Mahbubur unwavering protector in any kind ICC Bangladesh President Rahman added. of crisis, especially when he lost his Mahbubur Rahman said Mr. Latifur youngest daughter Shazneen Tasnim Rahman never compromised his Syed Manzur Elahi, a former Rahman and grandson Faraaz Ayaaz ethical position and was adamant president of MCCI and Chairman July-September 2020 July-September 7 ICC Bangladesh News
Apex Group said Latifur Rahman's entrepreneur, said New Age Group Latifur Rahman 'sleadership helped patriotism was admirable, and he Chairman and ICC Bangladesh the MCCI reach its current stage. He was a role model for ethical business. Executive Board Member A S also supported the Dhaka Chamber "He was a polite gentleman, and M Quasem. "Mr Rahman was a of Commerce and Industry (DCCI) can disagree with anyone politely." natural leader and a great architect and the Bangladesh Employers' Latifur Rahman has done everything in institution building. He proved it Federation (BEF), "I remember such
Latifur Rahman, ICCB Vice President & Chairman and CEO of Transcom Group (third from right) is seen with George Freeman M.P. (third from left) at the UKBCCI Lifetime Achievement Award Ceremony at the London Hilton Park Lane on 15 October, 2018.
honestly and ethically, and he throughout his life. He was a man of a good friend with a heavy heart. His is a role model whom younger courage and determination, and he demise is an irreparable loss to the generations can follow. "His business never gave up hope even in the worst country," Mr. Dowla noted. ethics was something very laudable situations," he added. and very rare in our country. "He President of the Federation of was a good human being. He never Mrs. Rokia Afzal Rahman, ICC Bangladesh Chambers of Commerce lost his temper, he was very rational Bangladesh Vice President and and Industries (FBCCI) Sheikh Fazle and always encouraged constructive chairperson of Mediaworld Ltd, Fahim said a person is posthumously argument," he added. the owning company of The Daily most remembered for his behavior. Star, said Latifur was "one of our Mr. Latifur Rahman will be Family was his first love and centre strengths"."I never thought he remembered for his nice manner, he of everything. He was extremely would leave us so early," she added. noted. analytical in business, and it "Latifur Rahman was a true lover of A video message from John W H brought him success. "He had been his birthplace Bangladesh." Rokia Denton, Secretary General of the a business giant, and whatever he Afzal Rahman said she used to sit touched had turned into success" International Chamber of Commerce with Latifur Rahman on the boards said Syed Manzur Elahi and recalled (ICC), was played in the programme. of eight companies. His presence that he first met Mr Rahman at a in the meetings changed the whole dinner party in Dhaka in 1974. "I was Mr. A. K. Azad, ICC Bangladesh environment, always added value, impressed by his inherent goodness," Executive Board Member and a and made a difference. "Mr Rahman he noted. former president of the FBCCI, said left us with dignity," she concluded. although Latifur Rahman was a very Salman Ispahani, Chairman of M. successful businessman, he never ACI Chairman M Anis-ud-Dowla M. Ispahani Group, said he learnt interfered in the decision-making of many tricks of business from Latifur said it was fortunate to have a the newspapers he owned. Mr Azad Rahman, and he is very proud of Mr. friend like Latifur Rahman, and it also said he has been benefited by Rahman's achievements in many is equally painful to lose such one. learning many things in business businesses. Mr. Dowla, also a former president (from Mr. Rahman). of the MCCI, noted that Mr Rahman Mr. Latifur Rahman considered left a business conglomerate, which Mr. Tapan Chowdhury, ICC each member of his company as an is one of the finest in the country Bangladesh Executive Board July-September 2020 July-September 8 ICC Bangladesh News
Member and former MCCI President Secretary-General of the MCCI. Bangladesh. And he was the man said Latifur Rahman was a friend of "He was very honest person in any who made my dream come true. his family for almost 40 years. "He situation. Throughout his life he He was the greatest strength that always talked about prospects of the worked for clean and honest business. I had, the greatest friend, brother, country. Nobody can raise questions I saw him as a very religious person, the supporter, the investor," he said, about his integrity." He promised but also a very secular person. "He adding, "It is with deepest sorrow and that he will always be with the family said he was with Latifur Rahman most heartfelt grief that I participate of Mr. Rahman, when they need once, when he took him to help in this discussion." him"Latifur Rahman's manners destitute freedom fighters financially. and behavior would attract anybody "He had deep respect for freedom He said Latifur's most telling to him, and made him dear to all." fighters," he noted. contribution to the country was Mr Rahman was a man of vision two independent newspapers - The and always non-compromising. Latifur Rahman proved that doing Daily Star and Prothom Alo. "His He had to take a lot of pain and go business with integrity does not world has been the world of business through humiliation, but he never depend on socio-economic system, - of setting up industries, setting up compromised, Mr. Chowdhury but on one's individual values, said commercial institutions. His first further said. Rumee Ali, CEO of Bangladesh foray into a world which was not International Arbitration and his was the media. Yes, he always Mir Nasir Hossain, ICC Bangladesh Centre (BIAC) and a former deputy insisted that we should think of it as Executive Board Member and a governor of the Bangladesh Bank. a business and he insisted that if you former president of FBCCI, said no Mr. Rahman was like a mentor and really want to have an independent one can say what would happen to elder brother to him, he added. newspaper, you must be independent Bangladesh's journalism, if Latifur businesswise” he said. Rahman had not established two Mr. Mahfuz Anam, Editor of The leading dailies. Daily Star, said his dream of having "If you come to me or come to the an independent newspaper would board, asking for money in every Mr. Fazlul Haque, ICC Bangladesh not have come true if Latifur was other year or every other month, Executive Board Member and a former not around. "I dreamt of establishing then obviously we will not be happy president of the Bangladesh Knitwear an independent newspaper in about it. "But if you can turn the Manufacturers and Exporters Association (BKMEA), said Mr. Rahman was a very friendly person, and he befriended everyone he met. "I thought Mr. Latifur loved me a lot. Later, I understood that he was friendly to everyone. I cannot remember shedding tears at anyone's death out of my family, except for him," he added.
Mr. Kutub Uddin Ahmed, ICC Bangladesh Executive Board Member and former President of MCCI, said not everyone can create history, but Latifur Rahman created history. "We are the witnesses of history when Latifur Rahman created history himself. If any Bangladeshi businessman is worth following, he is definitely the one," said Mr. Ahmed.
Mr. Kamran T Rahman, President of the BEF, said Latifur Rahman was his uncle and an inspiration for all. He used to guide him in any difficulty in running businesses.
"Latifur Rahman was a great personality," said C K Hyder, former July-September 2020 July-September 9 ICC Bangladesh News
investment into a self-sufficient Shamim Bhai is one of the finest men memorial and joining the prayer for profit-making body, you will really I have the pleasure of knowing him Late Mr. Latifur Rahman. get the type of independence that in the entire world. He was a man The programme ended with a prayer you want, and we all want that," The of rock-solid core values. A man of conducted by ICC Bangladesh Daily Star editor said while reflecting steadfast integrity and a man with President Mahbubur Rahman for the on his many exchanges with the unwavering high standards," he said. departed soul to rest in peace in heaven. visionary businessman. Latifur was an admirable family man and an outstanding leader who has Mr. Shiv Shiva Kumar, group Prothom Alo Editor Matiur Rahman built so many diverse businesses, Executive President for Corporate said he knew Latifur for 22 years. he said. "His wisdom shaped and Strategy and Business at Aditya Birla When Prothom Alo was brought out, benefited many communities,Group of India; Mr. M. Sanjiv Mehta, Latifur gave four pieces of advice - industries, institutions and certainly Chairman and Managing Director of the newspaper should be the number the country. "Latifur always had a Hindustan Unilever Ltd. also spoke one newspaper in the country, the positive mindset and saw the glass- at the Memorial. newspaper should run with its own half-full. "He has guided us, spoken Among others, the memorial was income, the government rules and to us, inspired us and strengthened attended by Mr. Abdul Hai Sarker, regulations like taxes and vat should us." be honoured, and the newspaper Chairman & CEO, Purbani Group; should be independent and not MCCI President Barrister Nihad Prof. Mustafizur Rahman, Executive Director, Centre for Policy Dialogue biased. He added that Prothom Alo Kabir said Mr. Latifur Rahman was (CPD); Mr. Shams Mahmud, became self-dependent in a few a seven-time MCCI president. He President, DCCI; Mr. Rizwan ur years and he enjoyed independence always supported her and taught Rahman, Managing Director & as its editor. "We are so independent her a lot. She said her uncle has CEO, ETBL Securities & Exchange as editors that I cannot imagine always been a firm believer in Ltd.; Mr. A. Matin Chowdhury, any editor in the country who gets the young generation's ability to Managing Director, Malik Spinning such independence. We got that change the fortune of the country. Mills Ltd.; Mr. Asif Ibrahim, Vice independence from him and he "We will mourn his death. But we Chairman, Newage Group; former always gave us support and advice. will celebrate his life and dedicate DCCI President Mr. M. A. Momen; He never interfered in any news, ourselves to his legacy" she said. Dr. Masrur Reaz, former IFC Senior business related decisions, and Zaraif Ayaat Hossain said his Economist; Mr. Khalilur Rahman, hiring and firing of employees," he grandfather had an incredible Managing Director, National said. Latifur had to face different personality. "We, the Nanbhai's Housing Finance and Investments attacks and obstacles because of family, will never stop carrying his Limited; Mr. Mohammed Abdul Prothom Alo. He had to visit the legacies of being in ethical business. Jabbar, Managing Director, DBL anti-corruption commission office, "Nanbhai's legacy will continue Ceramics Ltd.; Mr. Naser Ezaz although he was the highest tax payer through generations Insha Allah and Bijoy, Chief Executive Officer, of the country, Motiur Rahman that is our commitment to him," he Standard Chartered Bank; Mr. added. concluded. Tabith Mohammed Awal, Deputy Former PepsiCo CEO (Asia, Middle MCCI Vice President Anis A. Khan Chief Executive Officer, Multimode East and Africa) Mr. Sanjeev and ICC Bangladesh Secretary Group; MCCI Secretary General Chadha said Latifur's death was an General Ataur Rahman thanked all Farook Ahmed and Mr. Ahmed irreparable loss."[Latifur Rahman] the speakers and guests for attending Shaheen, DMD, Eastern Bank Ltd. 12th ICC Asia Pacific Regional Consultative Group Meeting held The 12th Meeting of ICC Asia Pacific ICC’s response to Covid-19 issues 'easy to execute' measures that Regional Consultative Group was related to trade finance and NC can be undertaken to encourage held virtually on 3 September. The Development Fund, activities & cross border trade and ways to Meeting Chaired by Coordinator of future vision of ICC and a report on counter the rising protectionist Asia-Pacific Regional Consultative other developments in the region. sentiments in the region; update by Group Harsh Pati Singhania was ICC HQ on Incoterms 2020, ICC participated by representatives of 13 The meeting adopted the Summary Dispute Resolution Development NCs. ICC Bangladesh was attended of the last Asia Pacific RCG meeting Programme Support to NCs and by Secretary General Ataur Rahman. held on 13 March 2019 in Jakarta; discussed on NC feedback and next ICC / WCF Regional Action ICC Secretary General John updates on Covid-19 pandemic Network for Asia-Pacific expected to Denton presented an overview of including NCs views on some be held sometimes in October. July-September 2020 July-September 10 ICC Bangladesh News
In Remembrance of Late President of India H.E. Mr. Pranab Mukharjee
FBCCI called for sustainable base for Bangladesh –India Trade and Economic Cooperation The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Mahbubur Rahman emphasised the need for creation of a sustainable base for long term trade and Economic cooperation between Bangladesh and India for their mutual advantage. The President was delivering an address of welcome to Indian Commerce Minister H.E. Mr. Pranab Mukharjee when he had a meeting with the leaders of FBCCI at the Conference Hall of the Federation on 27 December 1993. Commerce Minister H.E. Mr. M. Shamsul Islam and Special Envoy of the Prime Minister Mr. M. Morshed Khan were also present. The President urged the Indian business community to interact with their counterparts in Bangladesh to promote bilateral trade, investment and economic cooperation.
FBCCI President Mahbubur Rahman presenting Memento to Indian Commerce Minister H.E. Mr. Pranab Mukharjee Mr. Pranab Mukharjee disclosed that his Government had taken some decisions that would help create confidence about Indian investment in Bangladesh. He suggested that India and Bangladesh should set up joint venture industries in Bangladesh for marketing goods in north eastern India.
Speaking on the occasion, Commerce Minister H. E. Mr. Shamsul Islam underlined the need for urgent initiatives on the part of India to reduce the huge trade gap between the two countries. Mr. M. Morshed Khan said that time had come to remove irritants between Bangladesh and India so that businessmen of the two countries could interact with open mind. July-September 2020 July-September 11 ICC Bangladesh News
Executive Board Meeting held virtually reviewed activities The 79th Meeting of ICC Bangladesh Rahman, the founding Vice Elahi. The Board Members prayed Executive Board was held virtually President of ICC Bangladesh and to Allah Gafur-ur-Rahim to forgive on 29 July. This was the first meeting offered prayer for the salvation of the them and grant them eternal abode of the new Executive Board elected departed soul. The Board also offered in Jannatul Ferdous (heaven)! for 2-years term from April 2020 to prayer for Late Waliur Rahman March 2022. The Meeting presided over by ICC Bhuiyan, OBE, who was a Member Bangladesh President Mahbubur At the beginning of the Meeting, of ICC Bangladesh Executive Board Rahman was attended by the Vice the Board Members recalled the and Mrs. Niloufer Manzur, wife of President Rokia Afzal Rahman; the contribution of Late Mr. Latifur Apex Group Chairman Syed Manzur following Members of the Board : Abdul Hai Sarker, A. K. Azad, Aftab ul Islam, Anwar-Ul-Alam Chowdhury (Parvez), Kutubuddin Ahmed, Mahbubul Alam, Md. Fazlul Hoque, Mir Nasir Hossain, Mohmmad Hatem, Sheikh Fazle Fahim, Sheikh Kabir Hossain, Tapan Chowdhury and Secretary General Ataur Rahman. DCCI President Shams Mahmud and BIAC CEO Mohammad A. (Rumee) Ali also attended as special guests. The other members could not attend due to other engagements.
The Executive Board confirmed the minutes of the 78th Meeting, reviewed the activities during January-June 2020, status of the interior decoration of ICC Bangladesh New office at Gulshan. The Executive Board approved ICC Bangladesh Budget for 2020 and Plan of Action and application of new members, among other matters. New Members The following joined ICC Bangladesh as members during July-September period:
Bangladesh Textile Mills Association (BTMA) Level-8, UTC Bhababn, 8, Panthapath, Dhaka 1215 Represent by: Mr. Mohammad Ali Khokon President, BTMA Membership under Corporate Category Tradewind GmbH German based trade finance Company House-30, Baliaree(2nd Floor), Road-130, Gulshan-1, Dhaka-1212 Represent by : Mr. Mahbubur Rahman Chowdhury Head of Operations, Bangladesh JM Agro Fisheries 173/3 Badsha Market, Khatungong, Chattogram Represent by : Mr. Mahbubul Alam Chairman July-September 2020 July-September 12 ICC Bangladesh News
Remembering Late Mr. Latifur Rahman
H.E. Mr. Md. Abdul Hamid, Hon’ble President of the People’s Republic of Bangladesh (middle) is seen with H.E. Mr. Tofail Ahmed, M.P. (3rd from left); H.E. Mr. Rishad Bathiudeen, Minister of Industry and Commerce, Sri Lanka (2nd from right); ICCB President Mahbubur Rahman (2nd from left); ICCB Vice Presidents Latifur Rahman & Rokia Afzal Rahman (extreme right & extreme left) and ICCB Secretary General Ataur Rahman (3rd from right) after the inauguration of UNSCAP Asia Pacific Business Foram(APBF) held in Dhaka on 8 February 2017.
ICC Bangladesh Vice President Latifur Rahman (2nd from left) is seen with other five Business for Peace Honorees in Oslo City Hall on 7 May 2012. Other five Honorees from left to right are : David W. Mac Lennan (USA), Reginald A. Mengi (Tanzania), Vladas Lasas (Lithuania), Eduardo Eurnekian (Argentina) and Ibrahim Abouleish (Egypt).
ICC Bangladesh Vice President & Global ICC Executive Board Member Latifur Rahman is delivering vote of thanks at the opening session of ICC International Conference on Global Economic Recovery : Asian Perspective held in Dhaka on 25 October 2014. July-September 2020 July-September 13 ICC Bangladesh News
Remembering Late Mr. Latifur Rahman
ICC Bangladesh Vice President Latifur Rahman (extreme left) is seen at the ICC Conference on Energy for Growth held in Dhaka on 13 April 2010. Also seen in the picture Finance Minister A.M.A. Muhith (centre), ICC Chairman Victor K. Fung (3rd from left), Commerce Minister Muhammad Faruk Khan (3rd from right), ICCB President Mahbubur Rahman (2nd from left), Adviser to the Prime Minister Dr. Tawfiq-e-Elahi Chowdhury (2nd from right), Minister for Development Cooperation of Denmark SørenPind (extreme right).
ICC Bangladesh Vice President Latifur Rahman is addressing at the inaugural ceremony of ICC Regional Seminar on Capital Market Development : Asian Experience held in Dhaka on 27 September 2005.
ICC Bangladesh Vice President Latifur Rahman (extreme left) is seen with Finance and Planning Adviser Dr. A.B. Mirza Md. Azizul Islam (3rd from left), ICCB President Mahbubur Rahman (3rd from right), Board of Investment Executive Chairman Kamaluddin Ahmed (2nd from left), FBCCI President Annisul Huq (2nd from right), ICCB Vice President Samson H Chowdhury (extreme right) at the launching ceremony of ICCB Business Directory held in Dhaka on 02 April 2008. July-September 2020 July-September 14 ICC Bangladesh News
Remembering Late Mr. Latifur Rahman
ICC Bangladesh Vice Presidents Latifur Rahman (4th from left) is seen with Bangladesh delegation at 10th WCC (held from 19-21 September 2017). Also seen in the picture among others are: ICC Bangladesh President Mahbubur Rahman (5th from left), ICCB Vice President Rokia Afzal Rahman (middle), ICCB Board Members from left to right are: Md. Fazlul Hoque, A.K. Azad & Kutubuddin Ahmed; Director at International Chamber of Commerce, Regional Office, Asia, Lee Ju Song (6th from left), ICCB Member and Shasha Denims Chairman Parveen Mahmud (6th from right).
ICC Bangladesh President Mahbubur Rahman, Vice-President Latifur Rahman & Secretary General Ataur Rahman are seen among other delegates at the ICC World Council held in Tokyo on 8 March, 2018.
ICC Bangladesh Vice President Latifur Rahman (4th from left) attended ICC Bangladesh Annual Council 2017 held in Dhaka on 30 June 2018 which was his last attendance at ICC Bangladesh Annual Council. July-September 2020 July-September 15 ICC Bangladesh News
Remembering Late Mr. Latifur Rahman
ICC Bangladesh President Mahbubur Rahman (4th from left) & Vice President Latifur Rahman (4th from right) is seen with outgoing USA Ambassador H. E. Ms. Marcia Stephens Bloom Bernicat (middle) during the farewell hosted by ICC Bangladesh in Dhaka on 28 July 2018. Also seen in the picture among others are : Japan Ambassador H.E. Mr. Hiroyasu Izumi (2nd from left), France Ambassador H. E. Mrs. Marie Annick Bourdin (3rd from left), US Embassy Deputy Chief of Mission Mr. Joel Reifman (extreme right), CCCI President Mahbubul Alam (2nd from right), FBCCI Senior Vice President Sheikh Fazle Fahim (extreme left), ICCB Executive Board Members : Aftabul Islam (2nd from left standing), Md. Fazlul Hoque (3rd from right standing) and ICCB Members: R. Maksud Khan (extreme left standing), Rizwan-Ur Rahman (5th from left standing), Uttara Group Chairman & Managing Director Matiur Rahman (3rd from left standing), BIAC CEO Muhammad A. (Rumee) Ali (2nd from right standing), First Security Islami Bank Limited Managing Director Syed Waseque Md. Ali (4th from left standing), Mutual Trust Bank Ltd. Managing Director & CEO Anis A. Khan, (4th from right standing), Ministry of Foreign Affairs Secretary-Bilateral Kamrul Ahsan (3rd from right) and ICCB General Manager Ajay Bihari Saha (extreme right standing).
A group photograph of ICC Bangladesh members attending the meeting with ICC Chairman Victor K. Fung on 12 April 2010. ICC Bangladesh President Mahbubur Rahman (6th from right) & ICCB Vice President Latifur Rahman (5th from right) are also seen among others.
High Commissioner of Malaysia H.E. Norlin Binti Othman ( 6ht from right) is seen with Hon’ble Mr. Anisul Islam Mahmud, M.P., Minister for Water Resources (4th from right); ICC Bangladesh President Mahbubur Rahman (5ht from right); ICCB Vice President Latifur Rahman (2nd from right); Justice Mr. Latifur Rahman, Former Chief Justice (3rd from right); Justice Mr. Tafazzul Islam, Former Chief Justice (5th from left); Justice Mr. Md. Awlad Ali, Former Justice of the Supreme Court of Bangladesh (6th from left standing); Dhaka North City Corporation Mayor Annisul Huq (7th from right); ICCB Executive Board Member Barrister Rafiq-ul Huq (7th from left) and other guests at a farewell lunch for her organized by ICC Bangladesh held in Dhaka on 29 October 2015. July-September 2020 July-September 16 ICC HQs News
ICC HQs News
ICC mourns loss of Gerard Worms
Gerard Worms, former ICC Chair, passed away on 31 August, at the age of 84. Mr Worms led ICC as Chair from 2011-2013 before taking up the role of ICC Honorary Chair. He had served as Chair of ICC France from 2006 to 2017.
During his rich career, Mr Worms also served as Vice-Chairman of the investment bank Rothschild Europe and spent a large part of his career with the Suez Group. He served on the Boards of Directors of many companies, including Saatchi & Saatchi.
Mr Worms’ early experiences included working as an advisor to French Minister of Industry Olivier Guichard and to former Prime Minister of France Jacques Chaban-Delmas.In his capacity as ICC Chair, Mr Worms was a passionate supporter of ICC’s purpose and brought more than 50 years of experience in the public and private sectors to advance the global institution.
Mr Worms was instrumental in modernising the ICC governance system and in securing a new global headquarters in Paris. A Commander of the French Legion of Honour, Mr Worms was also a trustee of the ICC Research Foundation and most recently took part in the inaugural ICC Past Chairs Council, held in May 2019. He was a much-welcomed guest at our Centenary celebrations in Paris last year.
Mr Worms was also a strong advocate of international arbitration – particularly with French authorities – and was an active member of the ICC Governing Body for Dispute Resolution Services.
He will be greatly missed.
COVID-19 Private Sector Global Facility announced at SDG Business Forum The United Nations Development negative impacts of the coronavirus context. Guided by the UN Global Programme (UNDP), the United pandemic. The initiative has been Compact’s Ten Principles and the Nations Global Compact (UN Global established to better coordinate their Sustainable Development Goals, the Compact) and the International responses, helping to ensure that Facility will support a multisectoral, Chamber of Commerce (ICC) have immediate stimulus efforts flow into whole-of-government and whole- established the COVID-19 Private the real economy. of-society approach to face the Sector Global Facility, a global multidimensional nature of the initiative and collaboration bringing crisis. Recovery efforts will focus together public and private sector on how to rebuild more inclusive partners to help local communities economies and societies, to set a new recover better from the pandemic. course for a socially just, low-carbon Deutsche Post DHL Group, Microsoft and climate-resilient world where no Corp. and the PwC network (“PwC”) one is left behind. Initial projects will have already joined the COVID-19 focus on the countries of Colombia, Private Sector Global Facility and Ghana, the Philippines and Turkey. the initiative is open for other like- Both the geographical scope and The Global Facility will operate at minded private sector organisations participating partners will expand as both the global and national levels. that want to contribute. the Global Facility develops. It aims to co-create solutions that The Global Facility is a response to are tailored to the phase of the “Solidarity to ‘Recover Better corporate calls to action for private COVID-19 pandemic in a given Together’ can boost our collective sector leaders and governments area and the specificities of the efforts not only to cope with the to work together to address the local private sector and government crisis but overcome it. UNDP’s July-September 2020 July-September 17 ICC HQs News
footprint across some 170 countries Together, they will bring their 50% of global GDP and more than and territories, combined with the unique access to global expertise 70% of global employment. The UN Global Compact’s network of on responsible business practices, partners of the COVID-19 Private more than 10,000 companies and 68 economic recovery, green business Sector Global Facility, representing Local Networks around the world, transformation and multi-hazard multinational, global and local and the International Chamber of risk management. private sector stakeholders, commit Commerce’s network of over 45 to joint projects to develop policy The private sector has been acutely million companies, multiplies our and financial solutions for pandemic affected by the COVID-19 pandemic. collective capacity and potential. relief. The Facility is the first of its kind The 10 principles of the UN Global – designed to join forces across Compact affirm the belief that ICC Secretary General John W.H. public and private sectors to serve businesses exist to serve and advance Denton AO said: “ICC’s local humanity in an imperative moment,” their societies, and their success networks can bring value to the said UNDP Administrator Achim cannot come at the cost of social or cooperation by reaching small Steiner. environmental regression. business owners who want to have their challenges understood, their The COVID-19 Private Sector Global “It is a moment of human tragedy ideas heard, and their efforts to Facility was announced by Mr Steiner and intense economic and social Recover Better recognised and built at the SDG Business Forum during upheaval. But it is also a moment of upon by others. SMEs need a way to the UN General Assembly, the largest possibility. Through partnerships like facilitate this vital exchange of ideas, and most inclusive UN convening the COVID-19 Private Sector Global of private sector leaders. Launched Facility we will support companies learning and experience with each under the motto “Recover Better to Recover Better Together from other and with organisations and Together”, the timing of this initiative the pandemic and finally confront institutions in a position to support has special importance, marking the global inequality by taking action, as them.” well as mitigate the worst impacts of commemoration of some important In order to effectively reach the most UN-related milestones: the 75th a climate emergency that threatens vulnerable in the most efficient ways, anniversary of the founding of the all of humanity. Together we can the facility aims to expand the list United Nations; the 20th anniversary construct a new paradigm of of strategic partners. Organisations of the establishment of the Global resilience,” saidSanda Ojiambo, CEO that want to play a leading role in the Compact; and the Centenary of and Executive Director of the UN global pandemic recovery and join ICC’s founding after WWI at a time Global Compact. when multilateralism is facing the this call to action are encouraged greatest challenge of its generation. The COVID-19 pandemic has forced to contact the UNDP project around 70% of small- and medium- coordinator at global.facility@undp. The Initiating Partners are UNDP, sized enterprises (SMEs) to shut down org for a discussion on how they can UN Global Compact and ICC. their operations. SMEs represent get involved. ICC letter in FT flags consequences of retreat from commodity financing In a letter published in the a global recovery – impacting interventions to ensure the market Financial Times on 18 September, the survival chances of small can power an economic rebound in ICC Secretary General John W.H. businesses. On behalf on over 45 the wake of the COVID-19 crisis. Denton AO calls on G20 leaders to million companies wordwide ICC ICC estimates that as much as US$ heed warnings over the real-world has called for proactive government 5 trillion in market capacity will be consequences of banks retreating needed to return trade volumes close from financing commodity traders. to 2019 levels in 2021. In May, ICC called on policymakers to proactively Already threatening the livelihoods scale support for trade finance of small businesses who rely on transactions to prime the market funding and work on narrow ahead of demand returning to the margins, the worrying trend says Mr global economy identifying four Denton, “could be a precursor to a priority interventions that, if properly much broader shortfall in the supply calibrated, could immediately bolster of trade credit once demand returns financing capacity. to the global economy.” In his letter to the Financial Times Earlier this year, ICC warned that Small business needs the G20 to trade financing gaps risk hampering safeguard trade financing, Mr July-September 2020 July-September 18 ICC HQs News
Denton concludes: “The events of the sake of the millions of small it’s high time for governments to take recent weeks show the time for a businesses banking on global trade all necessary steps to safeguard the wait and see approach is over. For to drive a post-pandemic recovery, supply of trade finance.” 2020 Business for Peace Award winners The International Chamber of who have dedicated their careers following a global nomination Commerce (ICC) and the Business to transforming their businesses, process assisted by ICC, Principles for Peace Foundation are pleased to industries and communities through for Responsible Investment, United announce on 9 September the three positive change to meet the challenges Nations Development Programme winners of the 2020 Oslo Business of tomorrow. ICC is proud to be a and United Nations Global Compact. for Peace Award. partner of the Business for Peace Past winners include Paul Polman Foundation and play a role in the (Unilever), Ouided Bouchamaoui This year’s honourees are Marc nomination process.” The 2020 Oslo (Tunisian Confederation of Industry, Benioff, Founder, Chair and CEO of Business for Peace Award winners Trade and Handicrafts), Richard Salesforce, James Mwangi, Chairman and CEO of Equity Group Holdings and Felicitas “Joji” Bautista Pantoja, Co-Founder and CEO of Coffee for Peace. The Oslo Business for Peace Award is awarded annually to business leaders for their outstanding businessworthy accomplishments and to recognise efforts to foster peace and stability in the business community.
Commenting on the announcement, Secretary–General of the International Chamber of Commerce John W.H Denton AO were selected by an independent Branson (Virgin Group) and said: “On behalf of the ICC we Award Committee of Nobel Durreen Shahna (Impact Investment congratulate the worthy honourees Laureates in Peace and Economics, Exchange). ICC launches high-level advisory group to prime trade finance to power COVID-19 recovery The International Chamber of initial phase of the crisis, reports further public interventions may Commerce (ICC), the institutional suggest that the commercial trade be needed to ensure businesses – representative of 45 million financing market is showing signs of particularly small and medium-sized businesses worldwide, has volatility – raising concerns as to its enterprises (SMEs) – can access cost- announced the creation of a new ability to finance a rebound in global effective credit once demand returns Advisory Group on Trade Finance trade in 2021. to the global economy. (ATF) – a cross-sectoral coalition of leaders in global trade. To take one example, development The ATF will provide strategic bank trade finance programs – which insights and lead external The ATF – co-chaired by Victor K. fill market gaps for trade finance by engagement to: build awareness of Fung, Chairman of the Fung Group, providing guarantees and loans to the importance of trade financing to and Marcus Wallenberg, Chair of commercial banks – appear to be a post-pandemic recovery; inform SEB – will work to inform policy being utilised at record levels despite interventions from governments and reforms and interventions to prime heavily depressed trade flows. multilateral institutions to mitigate the trade credit ecosystem to power risks of short-term credit shortages a rapid economic recovery from The European Bank of affecting SMEs; and provide thought COVID-19. Reconstruction and Development recently reported that it has provided leadership, data and strategic Despite impressive early actions a unprecedented €1.8 billion in guidance to help bridge persistent taken by commercial banks and market support over the first six trade financing gaps, particularly in public bodies in response to the months of this year, suggesting emerging markets. July-September 2020 July-September 19 ICC HQs News
John W.H. Denton AO, also joins the ATF as an ex officio member. ATF members will formally convene for a limited period of 15 months and work closely with other relevant bodies, including ICC’s Banking Commission – the leading global standard setting body for trade finance transactions. The initiative will culminate with a review of its impacts on 15 November 2021 in Hong Kong, conditions permitting.
Welcoming the launch of the Advisory Group, Mr Denton said: In addition to the two co-chairs, Chief Executive Officer of Suntory members of the group will include: Holdings; Samuel Palmisano, “We see a strong case for proactive Anabel Gonzalez, Former Minister Chairman of the Center for Global interventions to prime the trade of Trade of Costa Rica and Senior Enterprise; Kevin Sneader, Global finance market in anticipation of Fellow at the Peterson Institute Managing Partner of McKinsey; demand returning to the global for International Economics; Amy Mark Tucker, Group Chairman economy. Such measures should Jadesimi, Chief Executive Officer of HSBC Holdings; Jeremy Weir, form a central part of on-going efforts of Lagos Deep Offshore Logistics CEO, Trafigura; and Zhu Min, to help small businesses weather the Base (LADOL); Flora Mutahi, Chief Chairman of the National Institute COVID-19 crisis – given that access Executive Officer of Melvin Marsh; of Financial Research at Tsinghua to cost-effective trade credit is a vital Takeshi Niinami, President and University. ICC Secretary General, lifeline for many entrepreneurs.” ICC and World Travel and Tourism Council issue COVID-19 restart guide for the Travel & Tourism sector The International ChamberSecretary General John W.H. Denton Mr Denton said: “With over 150 of Commerce (ICC) and the AO and WTTC President & CEO million travel and tourism jobs lost World Travel & Tourism Council Gloria Guevara. During the meeting, since the outbreak of COVID-19, (WTTC) have published a set of both leaders acknowledged that the more needs to be done to address the recommendations for safely re- Travel & Tourism sector will need challenges faced by these businesses opening customer facing businesses – many of which are SMEs with to implement new measures, such in the age of COVID-19. limited resources. It’s critical for ICC as the WTTC Safe Travels protocols, and our global network to engage The COVID-19 pandemic has fortify knowledge sharing and with travel and tourism businesses caused widespread disruptions to institute careful plans, to ensure that as we work together to reinstate global supply chains and businesses businesses can operate safely in the consumer confidence, protect of all sizes. The Travel & Tourism age of COVID-19. employees and safely re-open our sector has been particularly impacted by the current pandemic due to travel restrictions, declining traveller confidence and reduced consumer demand. In recognition of the challenges faced by the travel and tourism industry, ICC and WTTC have released a Quick Restart Guide for Employers to provide businesses with recommendations for ensuring operational readiness, preparing staff and limiting risk of exposure to the virus within workplaces.
The guidance was released as part of a virtual meeting between ICC July-September 2020 July-September 20 ICC HQs News economies.” Gloria Guevara, WTTC and tourism businesses restart their – and offered ICC’s support in President & CEO, said: “Travel & operations safely. From rebuilding promoting the WTTC Safe Travels Tourism is a highly interconnected trust and confidence with customers Protocols and Stamp, the world’s first sector, the devastating impact that to preparing staff returning to ever global safety and hygiene stamp. the COVID-19 pandemic is having workplaces, the guidance provides on businesses across the global Travel travel and tourism businesses with Earlier this year, ICC and WTTC & Tourism sector, is also causing a checklist of considerations for co-organised a webinar on the extraordinary damage outside of our reopening. consequences of COVID-19 sector, impacting millions of jobs and for small- and medium-sized During their meeting, the two livelihoods around the world. Our enterprises operating within the discussed collaboration on digital guide provides recommendations for travel and tourism sector. Hosted by businesses around the world, be they platforms aimed at reopening economies and borders for ICC’s Centre for Entrepreneurship large enterprises or SME’s, to ensure in Istanbul, the webinar gathered employees are able to return to their international travel. Mr Denton leaders from across the travel and place of work safely and are in line provided an update on ICC AOKpass tourism industry to discuss the with WTTC’s Safe Travels protocols.” – a risk mitigation tool that facilitates cross-border travellers to present ramifications of the pandemic and The ICC-WTTC guidance is divided digitally authenticated and secure the measures designed to contain its into clear categories to help travel medical records to border authorities spread. ICC publishes model online business-to-consumer (B2C) conditions of sale for new online sellers With more and more businesses a blueprint for their own respective collaborate with a legal advisor to turning to online sales in the age online B2C conditions of sale. These adapt the ICC model online B2C sale of COVID-19, the International model sale conditions are to be used conditions to comply with relevant Chamber of Commerce (ICC) has as a starting point for businesses local requirements. published a set of model online business-to-consumer (B2C) conditions of sale, to be adapted by sellers for use on their consumer- facing websites.
As a result of the economic and health consequences associated with COVID-19, goods are increasingly being sold online to consumers. At the same time, many businesses are shifting their operations virtually to comply with social distancing measures aimed at reducing the spread of the virus. This expansion interested in selling their goods of online sales and workspaces has online to consumers and must be ICC has a long-established history of led many businesses, especially adapted to comply with the law in providing concrete and trustworthy -micro, -small, and -medium sized the customers’ countries. tools for businesses, such as model enterprises (MSMEs), to adopt new contracts and clauses to ensure a tools, processes, and procedures, to Businesses that sell their products sound legal basis for international continue their operations virtually. online must comply with a range contracts. ICC model contracts of local consumer protection and provide guidance on a wide range In recognition of the growth of other rules that vary depending on of areas related to international online sales, ICC has published where customers are located and commercial law, including force a set of model online B2C sale the kinds of goods being sold, and majeure, confidentiality, and conditions for businesses to use as thus it is essential that companies international B2B sales. ICC, IOM launch COVID-19 guidance for the protection of migrants
The International ChamberInternational Organization for guidance for measures to protect of Commerce (ICC) and the Migration (IOM) release employer migrants during COVID-19. July-September 2020 July-September 21 ICC HQs News
Migrant workers are a crucial part or cultural barriers and often lack ethical recruitment, and supply chain of the global workforce, accounting social protections. Many suffer transparency commitments. for 3.5% of the world’s population, from discrimination. Meanwhile, according to IOM. Worldwide, overseas economies that rely on The ICC-IOM guidance document micro-, small-, and medium-sized financial contributions from migrant has been adapted from the IOM’s enterprises (MSMEs), rely upon workers–especially low- and middle- COVID-19 guidance to enhance migrant workers, including sectors income countries—face a steep migrant worker protection providing essential commodities and decline in cross-border remittances. during the current health crisis services, as well as industries hard- and complements other ICC hit by COVID-19. In response, ICC and IOM have recommendations on health and published a set of guidelines for safety measures for employees. As the economic and human employers highlighting the private consequences of COVID-19 sector’s role in addressing the specific ICC and its network of national continue to shape local communities, challenges of migrant workers committees are working with IOM to businesses can play a decisive role in during the COVID-19 pandemic. raise awareness of the specific needs addressing the unique challenges The guidance includes a set of and support measures for migrant faced by migrant workers. general principles for employers— workers during COVID19 among such as treating all workers with businesses in different regions. Most Migrant workers are susceptible to “equality, dignity, and respect”— recently, IOM and ICC – along with job loss, salary cuts, and various notwithstanding their gender or its regional offices in Argentina, health and safety concerns. Unlike migratory status. This guidance is Colombia, Guatemala, and Mexico local populations, migrant workers presented in five categories: physical – hosted a webinar directed at often are far from family support and mental health, living and working employers in Latin America in networks. They face language and/ conditions, economic support, Spanish. Pilot test of ICC AOKpass announced successful International SOS and Singapore were saved on the crew’s individual been authenticated via the ICC company Energy Drilling AOKpass app and sent to the client AOKpass app. Management have announced a in Thailand ahead of their journey. successful pilot of the ICC AOKpass Pilot testing of ICC AOKpass has mobile app. The use of the app also been successfully used with the Singapore-based employees of provides trusted recognition of International SOS. The app provides individuals’ COVID-19 compliance employees and businesses with a status from Singapore to Thailand. substantially safer, more efficient and Following the pilot launch of ICC controlled path to the resumption AOKpass in May – carried out with of work alongside other social and employees at the International SOS health-based recovery efforts. Singapore office – Energy Drilling Dorjee Sun, AOKpass Co-founder worked with International SOS to Using these results, International and CEO of Perlin said: test the app for a 10-strong crew SOS worked with Energy Drilling needing to travel aboard an oil rig and PTTEP to facilitate smooth “Currently, there lacks a common vessel to conduct drilling services entry into Songkhla Port Authority technical standard for Digital Health for their client, PTT Exploration upon arrival in Thailand. The request Passports, which creates inefficiency and Production (PTTEP). All 10 was approved with ease having as travellers will have to navigate personnel were screened with a PCR provided assurance to authorities many different processes and swab test and the results were verified that the medical test results were unnecessary duplication to have their by a doctor. Their medical results from an accredited source and had health status verified. In contrast, July-September 2020 July-September 22 ICC HQs News the ICC AOKpass is an easy-to-use mobile device and use it to securely data records or external systems. mobile app using a common global store an authenticated digital copy Hardcopy certificates issued by standard that can be deployed and of their COVID-19 compliance medical professionals, are digitised, used anywhere in the world today. status certificate, as provided by their authenticated and then made It can adapt to the rules of any given consulting medical professional. available for efficient verification by country and allows users to instantly verify their COVID-19 compliance To address privacy concerns, data employers, authorities or any other status anytime, anywhere.” Once entered into ICC AOKpass remains third parties with no transfer or fully deployed, users can download localised at all times within the user’s external storage of the underlying the ICC AOKpass app to their app and does not rely on centralised personal health information. ICC issues open letter to G20 ministers responsible for the digital economy Ahead of G20 Digital Economy “The COVID-19 pandemic is an on cybersecurity; Advance data free Ministers meeting on 22 July, unprecedented health and economic flow with trust; Enable responsible, the International Chamber of crisis, affecting the lives and human-centric and trustworthy Commerce (ICC) has called upon livelihoods of workers, as well as the artificial intelligence; Maintain G20 leaders to implement policies continued operations of businesses momentum on the Joint Statement that will enable the deployment of globally,” Mr Denton states. Initiative on E-Commerce. digital technologies to tackle the consequences of COVID-19. “As the international community In addition, the letter calls upon the continues to respond to the G20 to work in close partnership with In an open letter to G20 ministers pandemic, having the right policy business and civil society to address responsible for the digital economy, settings in place to enable digital digital gaps and policy challenges ICC proposes a set of policy technologies to both tackle the crisis that the COVID-19 pandemic has interventions aimed at accelerating and build a more resilient global revealed. and strengthening the world’s economy will prove essential.” collective response to the COVID-19 “Only then will we be able to pandemic. The letter, signed by ICC The five policy interventions outlined unlock the full potential of digital Secretary General John W.H. Denton in the letter are: Devise long-term technologies as we look to rebuild AO, outlines immediate and long- strategies to bridge the digital divide; the global economy,” the letter policy priorities for policymakers. Develop a robust global framework concludes. ICC and UNICEF call for greater public-private sector collaboration in response to COVID-19 The International Chamber of public-private collaboration can imperative to ensure that COVID-19 Commerce (ICC) and UNICEF on 21 ensure a fairer, healthier, and more diagnostics, treatments, and vaccines July have issued a call for enhanced prosperous world for all. are made available for everyone, cooperation between the public and everywhere. The call to action responds to growing private sectors to strengthen the concerns about the accelerated response to COVID-19 and enable The call to action also outlines spread of the virus in several regions a resilient and sustainable rebuild other opportunities for greater and the economic fallout from the from the pandemic. public-private sector collaboration, pandemic – which, absent of effective including: the scaling-up of Entitled “Reimagining the World We interventions, is expected to lead to family-friendly workplace policies; Need,” the joint statement leverages widespread business foreclosures developing stimulus measures and an estimated 86 million children the organizations’ respective which channel support into the falling into poverty this year. expertise in the fields of business and real economy; bolstering mental children’s rights to set out a common In this context, the recommendations health and social protection vision to address the economic, include a call for the immediate services; expanding job readiness health, and societal consequences elimination of tariff and export curbs programmes; and reimagining of COVID-19. To this end, ICC on all goods required to mitigate the schooling to enable continued and UNICEF have identified eight spread of the pandemic – with the learning opportunities for all concrete areas where enhanced two organizations emphasising the children. July-September 2020 July-September 23 ICC HQs News
ICC Global Survey on Trade Finance confirms industry optimism ICC’s 11th annual Global Survey Some 64% of global banks surveyed model scenarios on how COVID-19 on Trade Finance reveals bank currently offer SCF platforms, could disrupt trade, suggesting optimism about the evolving nature compared to just 13% of local that trade flow values could fall by of trade finance, though expect banks and 38% of regional banks. anywhere between 11% and 30% in various industry-wide challenges Similarly, while 83% of global banks 2020. Findings also indicate that the and disruption as a result of the have a digital strategy, only 46% longer any lockdowns persist, the COVID-19 pandemic. of local banks report having one – more severe the global and systemic highlighting a growing gap between impact will be, as businesses of all The 2020 ICC Global Survey report players of different scale and reach. sizes – domestic and international – recognised as the world’s most in nature – fight to meet financial authoritative review of the trade Other topics are also gaining and commercial obligations and to finance industry – has been released traction with participants – such as remain viable. based on exclusive information from sustainability and financial inclusion, nearly 350 respondents in more than whereby some 67% of respondents ICC also conducted a supplementary 80 countries, bolstered by nuanced indicated that their bank now has a COVID-19 survey to understand contributions from an banks’ sentiment international array of regarding the experts from the Asian initial impact of the Development Bank pandemic on trade (ADB), AUSTRAC, finance, with banks Boston Consulting across geographies Group (BCG), Coriolis reporting an Technologies, HSBC, average 0-10% Kountable, SWIFT decrease in their and TXF. trade flows in the Survey responses first quarter of sustainability strategy. What’s more, and accompanying commentary 2020, and most expecting at least the majority of banks surveyed are continue to reflect evolution and a 20-30% decline for the full year. also integrating sustainability risks greater receptiveness to innovation In addition, results from the survey into their credit risk management in the financing of international reveal that many of the participating procedures. trade, whether through traditional banks are supporting their customers techniques or emerging mechanisms In terms of ongoing challenges, during the crisis by extending in Supply Chain Finance (SCF). The banks of all sizes remain concerned financing terms, enhancing their underlying optimism reflected in by the obstacles to their trade digital offerings, and some even past surveys is evidenced again this finance businesses’ growth posed by relaxing internal policies on original year, as are key topics and areas of regulation and compliance policies, documentation rules. global industry focus. with 56% indicating ‘significant Despite today’s challenging concern’ regarding regulatory SCF and digital trade are confirmed atmosphere, banks around the world requirements. as key growth priorities for banks, are generally optimistic. Even in the with 86% and 84% of respective Assessing the impact of COVID-19 initial, highly disruptive stages of respondents calling them an the global COVID-19 crisis, trade ‘immediate or near-future priority’. Meanwhile, to quantify the likely finance has remained available However, there is a divide between impact of the pandemic on the trade and accessible. In turn, the Global global and non-global banks on finance industry, the report contains Survey confirms and reinforces their supply chain finance offerings results from two additional projects. trade finance’s resilient character and and investments in digitalisation. The first is analysis from BCG to adaptability. ICC releases 2019 Dispute Resolution statistics The International Court of Arbitration announced preliminary record figures 851 were administered under the ICC (ICC Court) of the International in January. Rules of Arbitration and involved Chamber of Commerce (ICC) has parties originating from 147 countries published its full dispute resolution The ICC Court registered a record and independent territories, as statistical report for 2019, having 869 new cases in 2019. Of that total, well as arbitrators from a record 89 July-September 2020 July-September 24 ICC HQs News jurisdictions. In 18 cases, ICC was At the end of last year, 146 cases had The cases involved parties of 29 acting as appointing authority. been or were being conducted under nationalities and six multi-party cases. Expedited Procedure Provisions ICC first introduced the service as a Another ICC record included a (EPP), which were first introduced response to arbitration user needs in significant increase in the number of state and state-owned entities in ICC Arbitration over the past five years. Marking a historical record, 42 states and 172 state-owned entities were parties in 20% of ICC’s new cases.
Increases were also seen in the number of Indian parties, which tripled and reached 147. Having ranked 15th in 2018 with just 47 parties, India now comes in second on the overall number of parties worldwide. Moreover, Chinese parties also rose significantly, going from 59 to 105. The surge moves China, which includes Hong Kong and by ICC in March 2017. Of the 50 2012 and since has received a total Macao, from the 11th position to the final awards rendered in expedited number of 117 emergency arbitrator fifth, as the most frequent nationality proceedings, 37 were within the six- cases. in ICC Arbitration cases. month time limit, with very limited In December 2019, the ICC Court delays encountered in the balance In terms of arbitrator representation, also celebrated the registration of its of cases. Among those cases, the 61.7% originated from Europe, 21.1% 25,000th case. delay for submitting the final award from South America, 10% from North exceeded one month in only 10 cases America (United States and Canada), The milestone case was a corporate due to justified circumstances and the 12.6% from Asia and Australia and dispute between parties from the parties agreeing to a new procedural 3.6% from Africa. New nationalities Middle East and India and is currently represented in 2019 originated from timetable. In three of those cases, the being administered through the Azerbaijan, Botswana, Haiti, Malawi, delay resulted in a fee reduction for the Secretariat’s case management office the Palestinian authority, St Kitts and arbitrator(s). Scrutiny of all 50 awards in Singapore. Nevis. was made within 11 days on average. In addition to ICC’s leading arbitration Furthering the drive for gender The average duration of non EPP services, the institution also provides a diversity for the tenth year in a row, proceedings was 26 months for cases range of alternative services that can the ICC Court reported another that reached a final award, two months be used separately, successively or increase in the total number of women down from 2018. Further, of the 162 even concurrently with arbitration – serving as arbitrators. The figure draft final awards submitted to the all of which are managed by the ICC stands at 21% for 2019, an increase ICC Court for scrutiny beyond the International Centre for ADR. Last from 18.4% in 2018. Last year, 312 approved timeframe (two or three year, the Centre received a total of 61 women in total were appointed by the months from the last substantive new cases. ICC Court, confirmed further to party submission, depending on whether or received co-arbitrator nominations. the tribunal is composed of 1 or 3 The cases were registered under the The ICC Court appointed 43% of all arbitrators), 68 cases resulted in a fee ICC Rules of Mediation, Dispute women arbitrators – a total of 134 reductions. Board Rules and Documentary Credits appointments – while an additional (DOCDEX) Rules. Of the 61 cases, 35 42% of women arbitrators were Throughout 2019, the ICC Court also were for ADR, 16 were for Expertise, confirmed upon party nomination – administered a total number of 23 four were for Dispute Boards and six for a total of 131 confirmations. Emergency Arbitrator applications. cases pertained to DOCDEX. ICC launches survey to understand challenges faced by small businesses in least-developed countries The International Chamber of Fund (UNCDF) and other partner faced by small and medium sized Commerce (ICC) joins the United organisations to launch a major survey enterprises (SMEs) in least-developed Nations Capital Development to understand the unique challenges countries (LDCs). July-September 2020 July-September 25 ICC HQs News
The United Nations Capital(SDGs) to ensure that sustainable specifically targeting development Development Fund (UNCDF), the development touches every part of the finance institutions, institutional International Chamber of Commerce world so that no one is left behind. The investors, impact investors, non- (ICC), the Global Alliance PME consortium also acknowledged that government organisations and public (GAPME), Concordia, Columbia there are SMEs enacting innovative sector entities. The survey will seek University-Quantitative Methods steps to transform their business to embody the appropriate rigor in the Social Sciences, and Business processes, their products, and their in both its design and deployment. Africa convened several consultative workforces in response to COVID-19. This includes the application of the meetings in May and June 2020. The CEOs of businesses such as these are appropriate weighting to correct institutions expressed their shared rarely if ever given a platform to share underrepresentation where it may and profound concern over the their ideas, challenges, and vision. arise. The institutions will also apply precarious state of small and medium- their data and insights capabilities sized enterprises (SMEs) in so far As a result, the consortium has towards this purpose. as navigating the historic economic expressed its commitment to carrying disruptions caused by the COVID-19 out a COVID-19 SME survey that is Separate from the creation of the SME pandemic; in particular, SMEs in the designed to provide an accurate and survey database and the associated world’s least developed countries actionable portrait of the challenges commercial and policy intelligence (LDCs) where such businesses are SMEs are facing in LDC markets due products, the institutions agreed that an essential force for generating jobs, to the COVID-19 pandemic. the survey must serve as the basis reducing poverty, ensuring social for programming that will bring The institutions will leverage their cohesion and creating the conditions attention to the challenges of SMEs extensive networks of SMEs in LDC for the post-pandemic economic in LDC markets. Additionally, all six markets to deploy the survey in order recovery. institutions agreed that programming to acquire the quantity of data that will related to the survey will include The consortium discussed the support robust insights; to develop opportunities to feature CEOs and specific challenges that SMEs in last- content in the form of thought- business leaders of SMEs that have mile geographies experience given leadership and knowledge sharing, participated in the survey. Providing COVID-19, including disruption commercial and policy intelligence, a platform for these CEOs will be of value chains due to public and development data; to provide an essential aspect of the survey transportation moratoriums, and avenues of programming to share rollout, notably to cultivate the rare problems relating to physical and the results with a wide network of opportunity to connect these leaders digital infrastructure. This is on top relevant stakeholders; and to apply the with critical stakeholders from the of the significant decrease in demand appropriate academic rigor to ensure areas of development finance and and availability of commercial capital the quantitative value of the data. capital investment. that threatens the sustainability of The end goal is to create a database such businesses. The organisations The six institutions agreed that as well as commercial and policy also acknowledged that these they will convene regularly for the intelligence products that will provide existential challenges to SMEs remainder of the year along with all awareness to key stakeholders on how directly undermine the purpose of aspects of the survey, from design they can address SME needs, as well the Sustainable Development Goals and deployment to data assessment to as identify investable opportunities; programming and publication. July-September 2020 July-September 26 Bangladesh Economy
ADB unveils $11b lending plan for Bangladesh over three years The Asian Development Bank support, Parkash said, “ADB will another $5,170 million is for standby has programmed $5.9 billion firm increase its support for private projects with another $35.6 million and $5.2 billion standby project sector, public-private partnership for technical assistance programmes assistance for Bangladesh in 2021- projects and help with bond market during 2021-2023. 2023, according to the new Country development”. Operations Business Plan for The standby list includes a pipeline Bangladesh. of bankable projects, that respond to the country’s needs and growing “Given the coronavirus disease absorptive capacity, to be financed (Covid-19) pandemic, we are depending on the availability of enhancing our partnership with additional lending resources, the Bangladesh by adjusting program ADB said in a statement. priorities to help the country overcome immediate challenges Regardless of firm or standby related to health and social “To mobilise more resources, we will status, projects will be selected protection, accelerate economic leverage cofinancing opportunities and processed based on strong recovery, and maintain inclusive and use diverse financing tools and government demand, sector growth,” ADB Country Director for modalities including policy-based absorptive capacity, and readiness, Bangladesh Manmohan Parkash said loan, technical assistance, grants, among other criteria. in a statement on on 27 August. equity, guarantees, B-loan, and trade financing.” The ADB is increasing its The COBP is aligned with “More support will be provided to technical assistance support while the guiding principles of the improve health, food security, social emphasising innovative approaches government’s 8th five-year plan protection, skills development, rural and new technologies to further (under preparation) and its core development, water and sanitation, boost development effectiveness and themes of promoting prosperity and and finance sector, among others. strengthen results, according to ADB fostering inclusiveness, and ADB’s Climate resilience, gender inclusion, Country Director Bangladesh. Strategy 2030. Projects in the COBP and balanced regional development will also help the country attain are programme priorities.” Noting According to the plan, $5,938 several Sustainable Development the government request for increased million is for firm projects, while Goals, according to ADB. Bangladesh shows resilience despite Covid-19 : HSBC As global growth recovers in the Bangladesh economy and silver by the global COVID-19 outbreak coming quarters, Bangladesh stands linings’. Neumann also talked about well. While exports in particular to benefit from its strong economic the impact of COVID-19 on the have suffered amid a global decline fundamentals and will likely continue global as well as regional economy. in apparel demand, and remittances to deliver steady growth rates. This is have cooled, the fall in oil prices according to Frederic Neumann, Co- In his presentation, Neumann also and slowing imports have kept head of Asian Economics Research, said, “Bangladesh continues to the country’s trade position in a HSBC, who shared his insights at a impress with economic resilience. resilient position. Locally, consumer Strong growth in recent years was spending has softened due to a softer based on solid fundamentals, with labour market and the need for social stable inflation and a robust external distancing. However, the government payments position. Bangladesh has delivered a robust response to exports have also gained global support demand, supported by an market share in recent years and accommodative central bank.” the continued rise in remittance has helped to support local demand.” Robert Chatterton Dickson, British High Commissioner to Bangladesh virtual session for HSBC Bangladesh Neumann went on to explain that, attended the session as the Chief clients and stakeholders on 7 July “Bangladesh’s economy has so far Guest and Ahmed Jamal, Deputy titled ‘Impact of COVID-19 on the managed the challenges brought Governor, Bangladesh Bank July-September 2020 July-September 27 Bangladesh Economy
attended the event as a Special Guest. inclusive private sector-led growth. I our resilience and together we will Md. Mahbub ur Rahman, Chief hope that the insights shared by the navigate this tumultuous time.” Executive Officer, HSBC Bangladesh experts at HSBC, one of the leading was also in attendance alongside key UK-based investors in Bangladesh, Md. Mahbub ur Rahman during members of the business community, will help Bangladeshi businesses and the opening remarks said, “The regulatory bodies and representatives entrepreneurs to emerge stronger COVID-19 pandemic has disrupted from state-owned enterprises. from these complex challenges.” our way of life in many dimensions deemed unthinkable before. A Commenting on the event, Speaking at the event, Ahmed Jamal sustainable and timely recovery Robert Chatterton Dickson said, said, “This is an unprecedented from this turbulence warrants “Bangladesh has been one of the situation for all of us. Bangladesh deeper collaboration among all great economic success stories of the entered this situation with strong stakeholders. It is said that the sun last decade. The key question now is macroeconomic fundamentals. rises even after the darkest night. I how the country recovers from the The central bank has worked to share the optimism discussed today. COVID-19 pandemic, and sets itself provide adequate policy support. We will come out stronger and better on a renewed path of sustainable, Bangladeshi people are known for from this unprecedented situation.” Covid-19 Stimulus Package: Disparity in disbursement Implementation of government's Four months after its launch, around and refinancing for pre-shipment stimulus package, announced to Tk 29,200 crore was doled out to the credits. Of the amount, Tk 25,574 absorb the economic shock from the fund recipients as of July, according crore was disbursed to these five coronavirus pandemic, saw a mixed to the latest progress report of the sectors, according to the progress progress as around 26 percent of the stimulus packages, supervised by report documents. massive Tk 111,141-crore scheme the Prime Minister's Office. The was disbursed in four months till July. The export-oriented sector, mainly government's economic rescue For sectors like export-oriented and the readymade garments, is scheme, channelled and executed ahead of all so far, as the Tk 5,000 large industries, the disbursement of using the banking networks, will be crore support here has been fully the funds was quick. But the needy disbursed. Soon after the deadly small and medium enterprises and implemented by both government virus arrived on the shores of the farm sectors are yet to avail much of and private banks as per the direction country, the government allocated the support, making it difficult for of Bangladesh Bank. the interest-free fund for them to pull through the export sector with the losses incurred by a service charge of two the pandemic. percent as employment The government of nearly 50 lakh workers rolled out 20 stimulus became vulnerable amid packages after it cancellation of orders reported the maiden and placement of no new cases of coronavirus order from the buyers. infections on March 8. The funds were The combined support released as salaries for now accounted for 3.7 workers and employees percent of the country's of export-oriented gross domestic product industries through equal (GDP). instalments in the three The packages have been months from April to provided in the form June. Nearly the entire fund -- Tk 4,935 crore -- of low-cost loans to was disbursed as of July. micro, small, medium As many as 1,992 such industries and large industries and services, Of the scheme, there are five large borrowed the funds through 47 food security, social protection and loan-related packages where the commercial banks. special allowances as the pandemic- lion's share -- around Tk 75,750 induced shutdown paralysed the crore -- will go. Those include Significant progress was made in economy, destroyed millions of jobs export-oriented industries, large dispensing the Tk 33,000 crore and created new poor. businesses, service sectors, SMEs, funds to affected large industries and July-September 2020 July-September 28 Bangladesh Economy services at 9 percent interest rate to it went up to 20 percent with number income farmers and small traders in be repaid equally by the borrowers of enterprises 11,183, said sources. the agriculture sector. The progress and government as subsidy. Some of lending was so slow that the 2,062 large companies received the The pre-shipment credit refinance Bangladesh Bank last week extended low-cost loans as of September 17 Tk scheme amounting to Tk 5,000 crore its timeframe. As of August 31, the 25,461 crore, which is 77.15 percent, for export-oriented industries has amount stood at Tk 286 crore. according to data from the central also not made any progress. The Bangladesh Bank issued the scheme Forty-three banks have so far signed bank. The quick fund disbursement on April 13, but it's yet to release any participation agreements with the by the lenders has already had a funds under the scheme till now. As central bank to disburse the loan positive impact on the ongoing of August 4, 30 banks signed deals by December 31. The government recovery process of the business with the BB for releasing the fund. included agricultural subsidy in a sector. For the cottage, micro, small stimulus package as it gave the food and medium enterprise sector, the This slow pace was also observed in security issue the utmost importance picture is rather gloomy. the case of the special refinancing in the wake of the pandemic. Last scheme worth Tk 5,000 crore for The government announced Tk year, the subsidy was Tk 8,000 crore, the agricultural sector. But only Tk of which Tk 7,188 crore was spent. 20,000 crore as the working capital 497 crore was disbursed as of July, Now the government increased it by support to the pandemic-hit small the documents showed. However, Tk 1,500 crore, but the disbursement businesses at 9 percent interest rate there was a rise in the disbursement process is yet to begin. – four percent to be paid by the till August 31 as 46,804 farms and borrower and five percent interest by farmers got the loan support of Tk The government allocated a Tk 3,200 the government as subsidy. Till July, 1,095 crore in total, said sources. crore stimulus package to speed only Tk 1,491 crore was disbursed for up mechanised farming. However, the sector where 6,432 firms got the Similar was the case for the no money was disbursed yet as the loan through 76 banks and financial disbursement of Tk 3,000 crore agriculture ministry is outlining a institutions. As of end of last month, in refinance loans meant for low- project under which it would be spent. 98.6pc poor severely affected by Covid-19 : Right to Food Bangladesh study The Covid-19 pandemic has severely relatively high in Mymensingh and Half of the poor received some affected 98.6 per cent of the poor, who Sylhet compared to other divisions. forms of assistance -- dry food, have seen a decline in income, loss of The nutritional status of the poor, cash, or cooked food -- from the jobs, the closing of shops and business especially children, pregnant women government or private sector. The activities and even a complete halt of study also wanted to explore the and lactating mothers, is at stake income, a study finds. Although the awareness status of poor people now. country is facing economic hardship, amid the health risks of coronavirus. only a few respondents of the survey With these objectives, a short survey have changed their occupations, was conducted among 834 poor which implies that it is not easy to get people from 37 districts, covering all new jobs. divisions.
The study on the 'Impacts of Rickshaw and van drivers, scooter Covid-19 on food-intake and and taxi drivers, transport workers, nutrition of poor people: a rapid small shopkeepers, road or pavement appraisal' was conducted by the vendors, barbers, beauty parlour Right to Food Bangladesh, a platform workers, garbage collectors, part- of food security campaigners. Poor time housemaids, workers in small people have also been suffering from workshops, street vendors, individual insufficient food supply, according to or commercial drivers, freight the study. workers, carpenters, e-commerce delivery workers and agricultural Nearly 87 per cent of the poor have workers were included in the study. been facing hardship to arrange adequate food and nutritious food Many of these workers mostly get supplies. Even 5 per cent of the poor paid daily, so they survive one day lived on one meal a day during the at a time. The survey also included countrywide shutdown in April some respondents from jobless and May. The shortage of food is people like beggars, street children July-September 2020 July-September 29 Bangladesh Economy
and physically challenged people. To to have extended negative impacts Low-income families are in the control the spread of coronavirus, on their food intake and nutritional food supply problem, which has the government announced a status." Since the outbreak of the exposed their families to nutritional general holiday of all economic and epidemic, both government and and health risks. In the last three social activities in late March and it private sector people have come months, the health risks of Covid-19 continued for more than a month. forward with various types of help could be minimised by maintaining for the poor and vulnerable, she social distance, wearing masks and Although businesses opened on said. Such programmes include the following some basic hygiene at a limited scale in early May, the distribution of cash, food and cooked home and outside. It was found that economic activities have remained food, she said. all respondents of the study knew at a sub-optimal level, according to about the coronavirus. the study. Those who changed the It is noted that in the pre-pandemic occupation have mostly become day situation, 91.6 per cent of the The study recommended that various labourers and agricultural labourers respondents used to take three meals government initiatives to support as it is relatively easy to start working a day, and the remaining used to take the poor should be made available with. About 70 per cent took these two meals a day. Though most of the to the poor people in urgent need new occupations for survival. respondents used to have three meals of food. The transfers of money, including various social protection However, the agriculture workers a day, during the general holiday, 95 per cent to 100 per cent of the benefits, should be sent regularly were able to manage works during to the beneficiaries through mobile respondents of different divisions the pandemic as the period of financial services. It also suggested faced problems to maintain three general holiday was the harvesting ensuring supply of nutritional food meals a day. time of boro, the major rice crop for children. of Bangladesh. The coronavirus- In all divisions, poor people mainly induced livelihood losses have Various stimulus packages suffered from a shortage of sufficient caused damage to the income of announced by the government for food and a severe lack of nutritious poor people, said Nazneen Ahmed, micro, small and medium enterprises food. Nearly 87 per cent of poor senior research fellow of Bangladesh and informal sector enterprises people faced hardship to manage Institute of Development Studies, should be implemented immediately. who led the study. adequate food, the study also found. This would ensure livelihood The poor in Rangpur region suffered opportunities for many poor people "As these people have minimal the most from the food crisis, and working in these enterprises. savings or no savings at all, a Rajshahi region suffered the most downturn in their income is bound from the nutritious food crisis. Source : The Daily Star Ten more economic zones approved The government has given primary Hizla Char Megha and Manikganj's Industrial City with the Marine approval to set up ten more Shibalaya areas. So far 101 EZs have Drive in Cox's Bazar. The meeting economic zones (EZ) in a bid to been permitted including the newly also decided to change the name attract investment, create jobs and approved ten, while infrastructural of 'Maheshkhali Special Economic protect arable and forest land. The and land developments are on in 28 Zone' to 'Sonadia Eco-Tourism Park'. 7th governing board meeting of EZs. the Bangladesh Economic Zones Concerned officials said the meeting Authority (BEZA) chaired by Prime decided that all agri products Minister Sheikh Hasina gave the processing units in EZs would get approval on 20 August. The PM export subsidy and cash incentive joined the virtual meeting from like the non-EZ industries. Besides, Ganabhaban while other board BEZA officials said the meeting members were connected from the decided to declare Sirajganj, Prime Minister's Office and the Kishoreganj and Hosendi Economic Cabinet Division. Area, and Karnaphuli Dry Dock and East West Special Economic Area as According to the meeting, the economic zones. EZs will be set up in Nawabganj, Tangail, Naogaon's Sapahar, Meantime, sources at the BEZA The prime minister has asked Dinajpur, Noakhali's Companiganj, said the concerned organisation the BEZA to promote small Chattogram's Sandwip, Sunamganj's has been instructed to connect entrepreneurs, especially youths, Chhatak, Pabna's Bera, Barishal's the Bangabandhu Sheikh Mujib alongside attracting foreign July-September 2020 July-September 30 Bangladesh Economy investment. She said, "We have progress without industrialisation," further advance socio-economically to work to encourage small she said. despite the onslaught of the Covid-19 entrepreneurs, especially youths, in pandemic on the global economy The premier, however, stressed the making investments in the economic including Bangladesh. zones to further speed up the pace need to save arable land to ensure of socio-economic progress of the food security of a huge population Finance Minister AHM Mustafa country." despite the fact that the country's Kamal, Planning Minister MA land size is small. Mentioning that Mannan, Agriculture Minister The prime minister said the young Bangladesh has already made much Abdur Razzaque, Industries Minister generation should not only run after progress in drawing investments and Nurul Majid Mahmud Humayun, jobs as they could take on ventures building small entrepreneurs, Sheikh Commerce Minister Tipu Munshi instead. "We will have to work by Hasina hoped that her government and BEZA Executive Chairman keeping eyes on these," she added. would be able to continue this Paban Chowdhury were present at "There is no doubt our economy progress. is agriculture dependent, but we the meeting. Besides, representatives need industrialisation at the same Sheikh Hasina reiterated her of different business organisations time. Because, no country can make optimism that the country would also took part in the meeting. Light engineering industrial park in five districts The government is planning to set up Director Md Shafiqul Islam,Around Tk 30,000 crore worth of dedicated light engineering industrial Bangladesh Chamber of Industries light engineering products are sold park at five districts : Dhaka, (BCI) President Anwarul Alam every year in Bangladesh. Of the sum, Narayanganj, Jashore, Bogura and Chowdhury (Parvez) and BSCIC products worth Tk 9,000 crore are Narsingdi- to harness the immense Director Dr Moha Abdus Salam, potential of the domestic light among others, spoke at the meeting. engineering industry. At the same time, Light Engineering Training KM Ali Azam said that the importance Institute will be set up to ensure the of the light engineering industry has supply of skilled manpower for the increased a lot as Prime Minister industries set up in the industrial Sheikh Hasina has declared it as the parks. ‘Product of the Year’. This industry is The decision was taken at an inter- developing in different parts of the produced locally while the rest are ministerial on 7 September at the country and there is no alternative to imported. Bangladesh exports $349 Industries Ministry in the city, said a setting up a dedicated industrial park million worth of light engineering press release. Industries Secretary KM to harness the huge potential of the products a year while the annual Ali Azam presided over the meeting light engineering industry as planned, global demand hovers around $6 while SME Foundation Managing he added. trillion. Bangladesh remains one of the vital sourcing destinations after China: QIMA survey According to a survey ‘Evolution of the ongoing COVID-19 pandemic, diversification of supplier portfolios Sourcing in 2020 conducted by Hong trade disputes between the United has been a priority for some time Kong-based QIMA, Bangladesh States and China, and other threats to now. remains one of the top destinations global supply chains. The report notes Consistently ranked among China’s for foreign clothing retailers and that China continues to dominate regional rivals, Vietnam continues labels after China due to favorable as the global sourcing destination to reap the most benefits from prices even during the pandemic. The although its dominance is noticeably the continued mass migration of findings of the survey were drawn less dramatic than in previous Western buyers from China, with from feedback from more than 200 40 percent of EU respondents and companies worldwide across a range nearly as many U.S. brands listed of consumer product segments and Vietnam among their top sourcing based on previous QIMA studies. regions. The US and EU brands are The study analyzes the evolution of years, particularly in industries seeking closer to home sourcing global procurement in response to such as textiles and apparel, where options, but are more likely to target July-September 2020 July-September 31 Bangladesh Economy
near-shore rather than re-shore. and South America’s popularity near shoring destination, since the Sourcing destinations closer to nearly doubling compared to last latter has been listed by 30 percent of home continues to expand steadily year. Meanwhile, EU brands are EU respondents among the top three for US-based businesses, with Latin increasingly turning to Turkey as a sourcing regions.
Dedicated Chinese Economic and Industrial Zone in Chattogram After five years of delays, China Company and Bangladesh Economic Chattogram district.” Bangladesh has finally decided to speed up Zones Authority (Beza). presently has 88 special economic the development of the dedicated zones, 59 set up by the government Chinese Economic and Industrial China Harbour agreed a $100m and 29 by private investors. China’s Zone (CEIZ) in Chattogram, The investment in scheme and the Yabang Group announced that it Bangladesh government allocated Chinese Economic and Industrial would spend $300m on textile and $50m.. More than 60 Chinese Zone (CEIZ), to be developed near chemical plants. the southeastern port of Chattogram. concerns have expressed interest in investing nearly $280m in the The zone was first proposed by zone, accounting for about 40% Sheikh Hasina during her visit to of the available land. CEIZ will be Beijing in 2014. The following year, able to eventually attract more than the Executive Committee of the $1bn in foreign investment, create National Economic Council in China 60,000 to 90,000 jobs, directly or approved the plan, and the CEIZ indirectly, and ultimately boost Development Company was set industrialisation and develop up by China Harbour Engineering the economy of the surrounding Yabang Group to invest $300m in Bangabandhu industrial city Bangladesh Economic Zones while Bangladesh Ambassador to in the country. The investment of Authority (BEZA) on 4 August inked China Mahbub Uz Zaman joined Yabang Group will help Bangladesh a land lease agreement with Jiangsu it as the guest of honour. BEZA diversify its export basket as well as Yabang Dyestuff, China, a concern Executive Member (Planning and ensure technology transfer, he added. of the Yabang Investment Holdings Development) Irfan Sarif and The Yabang Investment Holdings Group Co Limited, at BEZA office Deputy Director of the Yabang Group Co Limited, a Chinese in the city for 100 acres developed Investment Holding Group Wei Zhu company that originally belongs land. Prime Minister’s Office (PMO) inked the agreement on behalf of to the Yabang group of China, has Secretary Md Tofazzel Hossain Miah their respective sides. a plan to invest US$300 million in attended the agreement signing In his speech, Tofazzel Hossain Miah textile and other chemical industries. ceremony as the chief guest while welcomed the Yabang Group for the BEZA Executive Chairman Paban investment and said the government The Yabang group, one of the top 500 Chowdhury was in the chair, said a under the leadership of Prime Chinese companies, applied for 100 press release. Minister Sheikh Hasina is committed acres developed land on annual lease to provide all sorts of support to the rental basis to set up textile and other Foreign Direct Investment (FDI). chemical industries in Bangabandhu “We are committed to provide all Sheikh Mujib Shilpa Nagar (BSMSN) sorts of supports to the investors. at Mirsarai, Sitakundu and Sonagazi We are making much more reforms. upazillas under Chattogram and We are providing good investment Feni districts. friendly incentive comparing the other neighbouring countries. By The group has submitted now, many foreign direct investments conceptual master plan along with are taking place in Bangladesh,” he implementation plan in support of added. infrastructure development of the project. They have also submitted Paban Chowdhury said the ongoing ‘Environment Management Plan’ to Chairman of the Yabang Group global trade situation is favourable address environmental issues of the Xu Xiaochu joined the function as for Bangladesh and that is why the project and this will be a 100 percent the special guest through online Chinese businesses are keen to invest foreign owned project. July-September 2020 July-September 32 Bangladesh Economy
The group has also submitted three likely to create employment for 2,200 sector with present operating income years audited balance sheet of the people and annual export will be exceeding 32 billion RMB ($4.5 sponsor company certified by them around $146.40 million. The amount billion) in China. Its business covers and as per balance sheet, the sponsor of annual domestic sale of the group dye, coating, pigment, medicine, company have sufficient fund as is likely to be $97.60 million. veterinary, pesticide, photovoltaic, “Surplus Reserve” and “Undistributed logistics, finance and real estate Profits” to cover equity contribution The Yabang Group is one of the industries. It has more than 60 of the proposed project. The group is leading companies in the chemical subsidiary (branch) companies. $30m for Active Pharmaceutical Ingredient plant Australian biotechnology company facility spanning 10 acres on at following improvements in product HA TECH will invest up to the Bangabandhu Sheikh Mujib quality and policy support. $80 million, or roughly Tk 700 Shilpa Nagar (BSMSN) will begin crore, to establish a large-scale in January, said Paban Chowdhury, The National Board of Revenue active pharmaceutical ingredient executive chairman of the Bangladesh recently declared that imports of (API) manufacturing facility in Economic Zones Authority (BEZA). API products, pharmaceutical raw Bangladesh that could help the materials and reagents would be country meet its growing demand. exempt of VAT until 2025 in a bid to Initially, the Sydney-based company, boost the sector. which produces APIs mainly for However, the tax authority also cardiovascular, diabetic, ulcer and imposed a condition on API oncology applications, will invest $30 producers that require them to million to develop the facility. But spend at least 1 per cent of their within the next five years, the total annual turnover on research and investment could reach $80 million development projects for them to if the company wants to increase the avail the benefit. The minimum product range. value-addition should be 60 per cent. There are about 10 local companies, including Eskayef, Square, Beacon "Our pharmaceutical sector will and Beximco, that produce API contribute to export diversification. materials on a limited scale, Therefore, BEZA always welcomes according to SM Shafiuzzaman, API manufacturers at economic secretary general of Bangladesh zones and is ready to roll out the red Association of Pharmaceutical carpet, if needed," he added. There Industries (BAPI), a collective of HA TECH and BEZA signed the is a huge potential to invest in API about 250 local drug markers. land lease agreement on 25 August. manufacturing in Bangladesh, said The facility is expected to go into Beacon Pharma's Alam. Local production can at best full operation by sometime next meet 5 or 6 per cent of the annual year. Securing more foreign direct The reason being, the pharmaceutical demand from the pharmaceutical investment (FDI) for the country's sector is expected to grow 15 per cent sector, which has only grown Tk 22,000 crore-pharmaceutical year-on-year to reach $5.1 billion by in stature with the onset of the industry, particularly API 2023, propelled by investments from coronavirus pandemic, according to manufacturing, is crucial for local companies that seek to grab a Monjurul Alam, director for global propping up the sector, Chowdhury bigger share of the global market, business development at Beacon said. according to an estimate. Pharmaceuticals. Subsequently, Mahmud though is buoyant that Bangladesh spends about $1.3 billion About 98 per cent of the annual HA TECH's facility will become a each year to import APIs from the domestic demand for pharmaceutical manufacturing hub for a range of US, Taiwan, Italy, Germany, Spain, products is met by BAPI members. finished pharmaceutical products as Switzerland, France and the UK. After meeting the local demand, the products are shipped to 144 well. This includes nucleic acid drugs Development works for HA TECH's different countries. Pharmaceutical that use oligonucleotide, which is one upcoming state-of-the-art good shipments rose 4.5 per cent year-on- of the newest segments of innovative manufacturing practice (GMP) year to $136 million in fiscal 2019-20 medicine. July-September 2020 July-September 33 Bangladesh Economy
Lease agreement between BEZA and Samuda Food Products Samuda Food Products and The group on 28 September inked the new production site in 2 units, the Samuda Chechemical Complex, the agreement with BEZA to take construction of which will hopefully 2 sister concers of TK Group of 60 acres of land on lease inside begin in January. The consumer unit Industries will invest Tk 1744.80 Bangabndhu Shilpanagar to set up will go into operation within next crore at Bangabandhu Sheikh Mujib the new production units. one and a half years and the chemical Shilpanagar (BSMSN) to produce unit in two and a half years. consumer goods and chemicals. Mohammad Mostafa Haider, Paban Chowdhury, Executive Manageing Director of Samuda Chairman of BEZA said, the Food and Md. Abdul Mannan, authority encourages the food Executive Member of Bangladesh processors to ensure quality products Economic Zones Authority signed for the consumers. Investments in the deal on behalf of their respective the country’s economic zones are organizations. rather secured and are a result of BEZA’s hard work, he said. He added, “We aim to attract the regional not only local companies, but also consumers of Chattogram with new foreign ones are investing in food products”, said Mohammad Mostafa processing sector. Haider, Manageing Director of Samuda Food. Initially Tk 650 crore The fresh investment will be used to BEZA has created a welcoming will be financed, which will hit 1744 produce soybean oil, soybean cake, atmosphere for the investors in the crore or $205.28 million in next refined edible oil, caustic Soda etc. economic zones and it is ready to 3 years, said the MD of Samuda. Around 1560 jobs will be created in help them to do business smoothly. ACI Motors secured Tk 126cr in foreign investment ACI Motors is set to secure an is an investment company based in mini excavator segment. It brought equity-based foreign investment of Singapore. Japanese brand Kobelco in the Tk 126 crore from two companies as segment of the premium brand it landed its first foreign investment. The arrangement will reduce ACI's excavator. In 2019, it added pick and The fund from the Netherlands shareholding in ACI Motors to carry crane from India's Indo Farm 52.7 per cent from 65 per cent. The and Singapore would be used to Equipment. investment will allow ACI Motors to accelerate business growth and go further. ACI Motors sells products expand existing manufacturing such as agricultural machinery, facilities of ACI Motors. construction equipment and The fund will be raised through the motorcycle. It offers a complete line issuance of 23.33 lakh convertible up of high horsepower agricultural non-cumulative preference shares machinery, bringing in tractors, of Tk 100 each at a premium of Tk power tiller, reaper, mini combine 440. In the case of non-cumulative harvester and rice transplanter. The foreign investors will sit on the board of the company and preference shares, the dividend is It introduced the Sonalika tractor, will thus play a role in improving only payable from the net profits which is specially designed for the corporate governance further. each year. If the company makes Bangladesh making it suitable for ACI Motors' revenue stood at Tk no net profits in a year, the arrears small land size and roads. ACI 954 crore in the three quarters of of dividend can't be claimed in the Motors became the distributor the 2019-20 financial year. Assets subsequent years. of Yamaha Motorcycles in 2016. were valued at Tk 1,407 crore and The company represents some of The shares will be issued to liabilities Tk 1,115 crore as on 31 the world's leading construction Bangladesh-managed account CV, March. ACI Motors logged a profit equipment manufacturers, providing a limited partnership of the FMO backhoe loader, soil compactor and of Tk 98.6 crore from 19 July 2019 and SDI Pte, the two investors. The tandem roller, among others. to 20 March this year. However, ACI FMO is a Dutch development bank incurred a loss of Tk 119.5 crore structured as a bilateral private- In 2017, ACI Motors added China's during the same period owing to sector international financialleading brand Lovol's construction higher operating costs and finance institution based in Hague. SDI Pte equipment to the wheel loader and cost. In the last three quarters, ACI's July-September 2020 July-September 34 Bangladesh Economy total finance cost was Tk 352.6 crore group's long-term bank loan stood at listed on the Dhaka Stock Exchange and the operating cost totalled Tk Tk 826 crore and the short-term loan since 1976. 1,264.2 crore. As of 31 March, the Tk 2,978 crore. The stocks of ACI, Source : The Daily Star 50-megawat solar power plant in Mymensingh A 50-megawatt solar power plant director of Power Development director. Currently, the project is in Mymensingh's Sutiakhali area, Board (PDB) in Mymensingh, said on a testing phase, he added. The the largest of its kind, is ready to solar plates were set up in 1 square- government has targeted generation start operations early October. The kilometre area for the power plant. of 24,000MW of electricity by 2021. construction work of the megaproject has been finished following all the government rules and regulations, said Group Captain (Rtd) Sheikh Md Shafiqul Islam,director of HDFC Sinpower Ltd.
"It is the largest solar-based power plant among all the projects ongoing in the country and we are hopeful to go into production by the first week of the next month," he said. HDFC Sinpower Ltd, a joint venture of three companies from Bangladesh, Singapore and Malaysia, implemented the project. The Connection of 10 transmission power plant would help meeting the Of the electricity, 2,000MW of power government's target of generating boxes, construction of 132-KV would come from renewable sources, 10 percent of the country's total Transmission Tower, installation of according to sources. electricity using renewable energy by four-kilometre underground cables to add the electricity to the national 2021. Primarily, the production cost will power grid at city's Kewatkhali power be between Tk 10 and Tk 13 per The power plant was established on grid, and lining of one kilometer a 144-acre land with an estimated over-head transmission line were unit, but gradually the cost will come cost of Tk 800 crore. The project done, he said. down, added the director. Besides, started in 2017 and was scheduled the project has opened a horizon of to finish by July this year. It was, Earlier, barbed wire was set up work facilities for hundreds of people however, delayed due to coronavirus around the plant and solar pillars in the region, he said. pandemic. Indrajit Debnath, the and dredging in the necessary rivers project director and an executive was completed, said the project Source : The Daily Star Walton launches compressor export to Turkey Bangladesh’s electronics giant Kargi deals with imports, exports inked an agreement with Walton Walton is going to enter into the and marketing of hi-tech spare to be a distributor of Walton brand promising Turkish market with the parts for domestic and industrial products in the Turkish market. export of its produced ‘Made in products with comprehensive range Walton’s International Business Unit Bangladesh’ labelled compressors, of customer portfolio throughout (IBU) President Edward Kim and undoubtedly made a big opportunity Turkey and also abroad, specially in Kargi’s Managing Director Emin for expanding the local brand’s Europe. Attending as the chief guest, Kargi signed the deal on behalf of export market in Turkey and across Commerce minister Tipu Munshi their companies. inaugurated the Walton’s compressor the Europe. In its own brand name, export to Turkey through attending The virtual conference was addressed Walton launched the first shipment a virtual conference, arranged by by National Board of Revenue (NBR) of its compressor’s export to a the local brand at its Corporate Chairman Abu Hena Md. Rahmatul Turkish company named ‘Kargi’, one Headquarter in the capital on 7 July. Muneem, Commerce Secretary Md. of the leading Turkish marketing Jafar Uddin, Turkish Ambassador brands. Meanwhile, Turkish brand Kargi in Dhaka Mustafa Osman Turan, July-September 2020 July-September 35 Bangladesh Economy
Bangladesh Ambassador in Turkey sector of Bangladesh. I believe that a Walton brand’s distributor. Thanks M Allama Siddiki, Walton Hi- one day Walton would become to Walton. I hope that kagi will be a Tech Industries Limited Additional the leading global brand and also sustainable distributor of Walton in Managing Director Engineer Golam the export volume of Bangladesh’s the Turkish market.” Murshed, Walton Compressor’s electronics to Europe, America and Chief Executive Officer (CEO) other developed countries would be Delivering the welcome speech, Engineer Meer Muzahedin Islam increased.” Edward Kim said that Walton is moving ahead with its single goal- to be the amongst top 5 global electronics brand in the world. The compressor export to Turkey would a milestone towards achieving this goal, he added.
Congratulating Kargi for becoming an exclusive overseas distributor of Walton brand, Kim said, “Turkey, being known as business hub of Eurasia, I expect that this initiative will pave the way of expanding our compressor market not only in Turkey but also across the Europe.”
Walton Compressor’s CEO Engineer and Walton Laptop’s CEO Liakat NBR Chairman Abu Hena Md. Meer Muzahedin Islam said that Ali. The conference was moderated Rahmatul Muneem said, it’s a they are manufacturing world’s most by Walton’s Executive Director Firoj great news that country’s leading ‘silent and durable’ compressors by Alam. electronics brands Walton is exporting compressor to Turkey. using German technologies. Islam Congratulating Walton on exporting Compressor is also a new export noted that the full-fledged Walton’s compressor to Turkey, Commerce item. Walton is contributing to not compressor manufacturing factory Minister Tipu Munshi said, “While only increasing the government is well-equipped with international I visited Walton factory, seen that revenues but also creating huge standards testing lab, research they are manufacturing various employment opportunities.” and development department, types of high quality appliances. I metal casting foundry. Now, they was overwhelmed witnessing the Kargi’s Managing Director Emin Kargi are working on producing a new production of compressor like hi- said, “I was pleased witnessing the series of world’s latest technologies tech products. Walton is exporting high quality of Walton compressors compressors, mentioning it he added compressor, mobile phone and that were sent as samples. Thus, I that commercial production of that other appliances. It’s a great great were expressed my keen interest to be series will increase the present export initiative for Bangladesh. Really, a distributor of Walton compressor. volumes of Walton compressors by Walton is a giant in the electronics Today, I am very happy for becoming several times. SASEC Projects in Bangladesh slowed by pandemic The coronavirus pandemic has Under the SASEC Chattogram-Cox's Bangladesh. According to Mr. Quazi slowed the implementation of Asian Bazar Railway Project, Bangladesh Shahriar Hossain, Chief Engineer, Development Bank (ADB)-funded is building a single-line dual-gauge projects in Bangladesh. These railway track from Dohazari in include South Asia Sub-regional Chattogram to Cox's Bazar via Economic Cooperation (SASEC) Ramu. Physical work on the railway Road Connectivity Project-1 and 2 project was supposed to reach 50% and the SASEC Chittagong-Cox's completion within fiscal year 2019- Bazar Railway Project. 2020. Up to 40% had been completed when the pandemic struck. Under the SASEC Road Connectivity Projects, the two-lane road from The coronavirus pandemic has Gazipur to Rangpur is being affected progress of around 40 of upgraded to include four lanes. the 49 projects funded by ADB in July-September 2020 July-September 36 Bangladesh Economy
Roads and Highways Department Some construction sites have prepared health safety guidelines for of Bangladesh, his office will have to reopened on a limited scale. implementing agencies, contractors, Implementing agencies are also extend deadlines by at least 3 months and consultants to supplement preparing plans for the full resumption given that the pandemic has affected of work on construction sites. ADB's existing health guidelines and its every project. Bangladesh Resident Mission has environmental management plan. Bangladesh-Vietnam shipping service began A new shipping service, connecting and local manufacturers always want from a negative 6.8 per cent in Q1. ports of Bangladesh, China and to maintain lead time of export goods They said Bangladeshi exports are Vietnam has begun from August - the period between placement of also rising after a shock, and the new 22. The voyage is likely to quicken the country's clothing shipments, as it will take Bangladeshi cargoes to the US from Vietnam instead of Singapore. France-based CMA- CGM and Hong Kong-based SITC (Shandong International Transportation Company) have partnered to launch the service - named BBX2 - on the route. Initially, at least four vessels will ply the route.
CMA-CGM, the world's fourth largest shipping company by vessels, has dedicated direct services from Vietnam to the US destinations through its mother vessels. The new service will shorten the time, at present required for Bangladeshi- made goods to reach the US an order and its delivery. The new service wants to grab a large share of destinations. service will help them maintain lead the trade by offering quick shipments. time. Besides, BBX2, an express service Under the service, the vessels from China to Bangladesh, offers one carrying local goods will first go from Meanwhile, the ships (under the new of the best transit times in the market Chattogram to Ho-Chi-Minh city of service) will come back via Chinese between the two countries. Vietnam that will take around six ports, carrying imports from China. days. From there, mother vessels will The world's second largest economy "We are pleased to announce the take the goods to the US destinations is the biggest trade partner of launch of BBX2, a weekly service in around 12 days. So, Bangladeshi Bangladesh. The volume of bilateral that connects Bangladesh-China- export cargoes, which now require trade may reach US$18 billion by Vietnam and Singapore," said a around one month in reaching the 2021. notice of CMA-CGM. US, will go to the country in around 20 days through the new service. Shipping executives in Dhaka said This is the first Bangladesh- Chinese economy is rebounding Vietnam connecting service, while Uncertainty looms over connecting fast due to its effective control of Bangladesh-China route has two Bangladeshi cargoes to the US from the COVID-19 pandemic, and its more services, rendered by Maersk Singapore. But, this will not happen trade with Bangladesh is also on the Line and Sinocor-Hyundai jointly. from Ho-Chi-Minh of Vietnam. He rise. China's economy grew by 3.2 Around 20 vessels ply between added that export is time-sensitive, per cent in the second quarter (Q2) Chinese ports and Chattogram Port. Bangladesh lags behind Asia Pacific peers in telecom services: GSMA In the digital age, Bangladesh's mobile countries are quite different and mobile communications standard telecom market is still dominated by are predominated by 4G services, allowing mostly voice calls, SMS and the second generation (2G) services according to a GSMA report published limited data transmission while 4G is while scenarios in other Asia Pacific on 6 July. The 2G technology is the more data driven. July-September 2020 July-September 37 Bangladesh Economy
per cent by 2025 and Of that, the Australian and South of it 38 per cent will Korean markets will dominate with be internet users. 5G and the remaining three would Bangladesh will get 25 capture a significant share. million new internet Nine markets of this region have users in these five already launched commercial years, they said. mobile 5G services and 12 others In 2025, of the total have officially announced plans internet users of to launch it and Bangladesh is Bangladesh, only 6 per nowhere with regard to that, reads cent will use 5G while the GSMA report. Bangladesh 4G will dominate the Telecommunication Regulatory market having 46 per Commission (BTRC) formed a cent of the total data committee last year to prepare a users. At that time draft guideline on 5G service and By 2025 Bangladesh will be a data 3G users will amount initially planned to launch the 5G driven market where 4G service will to 30 per cent and 18 per cent will service by 2023. However, for the dominate with a 46 per cent share, still be connected to 2G. However, at Covid-19 situation all preparations reads The Groupe Speciale Mobile the end of 2019, only 10 per cent of have been halted for months. About Bangladesh's situation, the GSMA Association (GSMA) report "The internet users had 4G connections in said the 5G opportunity was for a Mobile Economy Asia Pacific 2020". this market, 40 per cent 3G and half longer term, largely because there However, Bangladesh is in a position of the mobile phone users just using was still a lot of room to grow for below the average standard of the it for calling purposes. Asia Pacific countries in almost all 4G, which was the dominant mobile the parameters and the situation Apart from Bangladesh, Pakistan is technology across Asia Pacific and will last long ever after five years, the the other country where 2G is still would remain so for the foreseeable report's data shows. dominating the market. Bangladesh future. is also the worst in position when it According to the report, about 663 Senior executives of mobile operators comes to using smartphones, even million new people across the region said high tax and regulatory worse than Pakistan. Currently would start using mobile internet challenges were the main barriers smartphone penetration in by 2025 and a majority of them will for Bangladesh lagging behind in Bangladesh is only 40 per cent and come from China (261 million), the table. "Our regulatory situation is it will reach 69 per cent after five India (190 million), Pakistan (46 the worst possible in the world and years, reads the report. In Pakistan million), Indonesia (44 million) at the same time the government smartphone penetration is 46 per and Bangladesh (25 million). The is increasing taxes every year on cent and it will grow up to 85 per report also reads that 6.3 billion new telecom services which halted new cent by 2025. internet of things (IoT) connections adoptions," said a top executive of a will be in Asia Pacific within the Mobile penetration in Bangladesh leading mobile carrier of Bangladesh next five years, accounting for half already reached 100 per cent which requesting anonymity. of global new additions, with smart is better than India (78 per cent) homes and buildings being the key The 2G technology will become and Pakistan (76 per cent) and will growth verticals. Currently there are obsolete in most of the developed be ahead of them even in 2025. But Asia Pacific countries within 5.2 billion IoT connections in this other countries mentioned such region. the next couple of years but till as Indonesia, Australia, Japan, 2025, 18 per cent of Bangladesh's Malaysia, Singapore and South Korea The Covid-19 pandemic will result in telecommunication customers will are clearly ahead at this point. Ever 18 per cent fewer 5G connections in be "only" calling users requiring no some of those countries have 150 per this region than previously expected. data access. The GSMA ran the study cent penetration. Mobile data traffic consumption was in recent years with numbers of 2019 9.2 GB per subscriber per month and estimates of 2025. The last five countries mentioned which will increase more than formed a new platform – APAC 5G threefold to reach 28.9 GB in 2025. According to the GSMA, at the end Forum – which will be leading in this However, according to the top three of 2019 about 54 per cent of people region's 5G services and the report carriers, the average internet user in in Bangladesh were using mobile mentioned that there would be no Bangladesh is currently consuming phones, of which 25 per cent had 2G service in those countries in about 2 GB of data per month. internet access. They estimated that 2025 while 3G will exist only among unique user numbers will reach 59 around 1 per cent of mobile users. Source : The Daily Star July-September 2020 July-September 38 Regional News
IMF chief warns global economy 'not out of the woods,' dangers lurk Global economic activity is picking virtual meeting of finance ministers restructuring could pose significant up after an unprecedented decline and central bank governors from challenges for the financial sector, this year due to the coronavirus the Group of 20 major economies. including credit losses to financial pandemic, but a second major The IMF last month further slashed institutions and investors, she said. wave of infections could trigger its 2020 global output forecasts, more disruptions, the International predicting a 4.9 per cent contraction To ensure stability, continued and weaker-than-expected recovery coordination across central banks in 2021. and support from international financial institutions was essential, Georgieva said $11 trillion in fiscal she said. Regulation should also measures by G20 members and support the flexible use of capital to other countries, as well as massive keep credit lines open for businesses. central bank liquidity injections, “Monetary policy should remain have put a floor under the global accommodative where output economy. Even so, dangers lurked, gaps are significant and inflation is she said, including a major new below target, as is the case in many Monetary Fund’s top official said. wave of infections, stretched asset countries during this crisis,” she said. IMF Managing Director Kristalina valuations, volatile commodity Georgieva said the fiscal costs prices, rising protectionism and In a report to the G20, the IMF of actions aimed at containing political instability. warned that rising protectionism and the pandemic and mitigating its renewed trade tensions endangered economic fallout were driving up Some countries lost more jobs the recovery. A weak recovery itself already high debt levels, but it was in March and April than had raised the chances of disinflation and premature to start withdrawing been created since the end of a prolonged period of low interest needed safety nets. the 2008 global financial crisis, and many of those jobs will rates, which could undermine debt “We are not out of the woods yet,” never return, Georgieva said. Job sustainability and financial stability, she said in a blog posting ahead of losses, bankruptcies and industry it said. Virus resurgence poses biggest risk to US economy: warns IMF
The dominant risk to the US fund said, stressing the “tremendous And the IMF warns that the brunt economic recovery is a resurgence uncertainties” surrounding the of the economic impact is being of COVID-19 cases that would outlook. borne by lower income families, force renewed business shutdowns, predominantly black and Hispanic, the International Monetary who are least able to weather the Fund warned on 17 July. The US downturn. The US economy is going government will need to do more in to take longer to recover from the coming months to provide support hit from the coronavirus pandemic to households and boost demand, than the market expects, and more as well as address worsening poverty stimulus is critical, BlackRock Inc and the shortcomings of the US Chief Executive Larry Fink said. “The principal risk, and one that health system, the IMF said in its is the most difficult to quantify, is annual Article IV report on the There were 32 million people that a resurgence in the number of world’s biggest economy. receiving unemployment checks COVID-19 cases in the US could under all programs in the last week “Even with the unprecedented lead to renewed, partial shutdowns,” of June, down 433,005 from the prior policy support being provided to the the report said. With case counts week. Economists say unemployment economy,” the US suffered a 37 per spiking in states like Florida, remains uncomfortably high because cent collapse in GDP in the second Georgia, Texas and California, local of a second wave of layoffs, which quarter, and the economy is expected authorities already have reimposed could intensify as COVID-19 to contract by 6.6 percent in 2020, the some restrictions. infections rise. July-September 2020 July-September 39 Regional News
World Bank: Warning that a true The IMF agreed with many other losses will lead to a systemic increase economic recovery from the global economists in warning that the in poverty," the IMF said. coronavirus pandemic remains “in brunt of the economic impact the distant future,” a top World Bank of the coronavirus crisis is being Federal Reserve Chair Jerome Powell official on 17 July G20 nations to borne by lower income families, and other central bankers have urged extend debt relief for the poorest predominantly black and Hispanic, the government to step in to provide nations. Cautioning policymakers who are least able to weather the more support to the economy, and not to “confuse rebound with downturn and will need more that chorus was joined by Powell's recovery,” newly-installed World support. "There are already urgent two predecessors, Janet Yellen and Bank chief economist Carmen warning signs that the depth of Ben Bernanke, in testimony before Reinhart called for an extension to the economic contraction and the Congress Friday. "The spending is the existing debt moratorium. sectoral distribution of economic absolutely needed," Yellen said. World’s Workers Lost $3.5tr in Wages amid Pandemic: UN With hundreds of millions of jobs a devastating impact on jobs and and new lockdowns, he said, “the lost and employees experiencing income across the globe. impact on the labour market could a "massive" drop in earnings, be comparable to the magnitude we the coronavirus pandemic is ‘The ILO also cautioned that the saw in the second quarter of this taking a heavier toll on jobs than outlook for the final three months of y e a r ”. previously feared, the UN said on 23 2020 had "significantly deteriorated" September. The International Labour since its last June survey. The Ryder cautioned against those Organization ( ILO) found in a new organisation had previously pushing for policy makers to focus report that global working hours had projected that in the fourth quarter, on economy over health in their decreased by 17.3 per cent by mid- global working hours would be 4.9 response to the pandemic. year compared to last December, percent lower than a year ago, but “It is very clear--that the capacity equivalent to almost 500 million full- said it now anticipated a decrease of and the speed with which the time jobs, reports BBC. 8.6 percent, equivalent to 245 million full-time jobs. global economy can get out of its That is almost 100 million more labour market slump is intimately workers, equal to the amount linked to our capacity to control projected by the ILO back in June the pandemic,” he said. “These two when 14% of working hours were things are very, very intimately expected to be lost by the end of intertwined, and we have to act on the second three-month stretch that understanding.” of the year. “The impact has been Meanwhile, the ILO report showed catastrophic,” ILO chief Guy Ryder that the destruction of the labor told reporters in a virtual briefing, market could have been worse pointing out that global labour without the various fiscal stimulus income had shrunk by 10.7 per cent packages offered by governments. It during the first nine months of the said that global working hours would year compared to the same period in It explained that workers were much have decreased by a complete 28 2019. more affected than in past crises in developed and emerging economies, percent in the second quarter without That amounts to a decline of some 3.5 especially those in informal such stimulus efforts, amounting to trillion dollars or 5.5% of the global employment. The ILO also pointed about $9.6 trillion globally. But it gross domestic product ( GDP) as a out that while many of the most cautioned that fiscal stimulus was whole, the ILO said. serious workplace closures have been distributed very unevenly, with eased, 94% of the world 's employees low- and middle-income countries After the introduction of the novel are in countries where there are still receiving total funding of about coronavirus in China late last year, some form of workplace restrictions. $982 billion less than their wealthier nearly one million people worldwide counterparts. have been killed out of more than 31 And Sangheon Lee, head of ILO’s million infected. In addition to the employment policy division, warned Ryder urged international efforts to health challenges, lockdowns, travel that the situation for workers could close the gap, maintaining that "no restrictions and other measures worsen further. If second waves of group, nation or region alone can taken to rein in the virus have had infections bring tighter restrictions resolve this crisis." July-September 2020 July-September 40 Regional News
COVID-19 may have pushed 100m into extreme poverty : World Bank Chief
The coronavirus pandemic may Advanced economies in the Group think the awareness of this will be have driven as many as 100 million of 20 already have committed to gradually, more and more apparent," people back into extreme poverty, suspending debt payments from the especially "for the countries with World Bank President David poorest nations through the end of the highest vulnerability to the debt Malpass warned on 20 August. The the year, and there is growing support situation." The World Bank has development lender previously for extending that moratorium into committed to deploying $160 billion estimated that 60 million people next year. But Malpass said that will to 100 countries through June 2021 would fall into extreme poverty in an effort to address the immediate because of COVID-19, but the new emergency, but even so, extreme estimate puts the deterioration at 70 poverty, defined as earning less than million to 100 million, and he said $1.90 a day, continues to rise. "that number could go higher" if the pandemic worsens or drags on. Malpass said the deterioration is due The situation makes it "imperative" to a combination of the destruction that creditors reduce the amount of of jobs during the pandemic as well as supply issues that make access to debt held by poor countries at risk, not be enough, since the economic going beyond the commitment to downturn means those countries, food more difficult. suspend debt payments, Malpass which already are struggling to said in an interview with AFP. Even "All of this contributes to pushing provide a safety net for their citizens, people back into extreme poverty the so, more countries will be obliged will not be in a better position to deal longer the economic crisis persists." to restructure their debt. "The debt with the payments. vulnerabilities are high, and the Newly installed World Bank Chief imperative of getting light at the end The amount of debt reduction Economist Carmen Reinhart called of the tunnel so that new investors needed will depend on the situation the economic crisis a "pandemic can come in is substantial," Malpass in each country, he said, but the depression," but Malpass was less said. policy "makes a lot of sense." "So I concerned with terminology. AIIB to invest more in non-regional members in coming days
In its annual meeting at last week regional member country, Egypt. society review or input, civil society of July, the Asian Infrastructure In the coming five years, Jin would organizations said prior to the Investment Bank board elected like AIIB to invest more in non- meeting. They also criticized the Jin Liqun -- the sole nominee-- regional members, because “Asia bank’s limited engagement with for a second term as president. should not expect to grow on its them and with communities about own without close collaboration bank projects and key strategies. and regional cooperation with other Jin said that the bank will need to regions, other countries,” he said at build up its lending program to a press conference.One of Jin’s chief “play its proper role” and is focused priorities going into his second term on trying to “strike a proper balance is to get AIIB’s corporate strategy between the fast expansion of our approved, which he expects the business” and making “sure the board will do by the end of the year, quality of our lending program will AIIB launched nearly five years he said. ago, growing to 103 members and not be compromised.” While the investing almost $20 billion in While the draft corporate strategy bank is looking to the future, and infrastructure projects. The projects was mentioned during the online to how it can increase its climate have primarily been in Asia, though sessions of the annual meeting, it investments, it first needs to get past the bank did invest in one non- has not yet been shared for civil the coronavirus crisis, Jin said. Britain Pledges £705m to prepare post-Brexit borders
Britain on July 12 pledged £705 on December 31, amid concern new staff to both ensure security and million ($890 million, 788 million within government that it is not handle new customs controls after euros) to prepare its borders for ready. The money will fund new Britain leaves the EU's single market cutting ties with the European Union border posts, IT systems and 500 and customs union, the government July-September 2020 July-September 41 Regional News
said in a statement. Britain ended concern that border infrastructure the borders would be ready. The new its EU membership on January 31, would not be ready even by then. funds only cover the border between almost four years after the historic mainland Britain and the EU, with Brexit vote, but agreed a standstill She warned the delay in imposing plans for the frontier between the transition period until the end of the checks could spark a legal challenge province of Northern Ireland -- year while it tries to negotiate a new at the World Trade Organization which will have a special trade status trade deal with Brussels. The talks (WTO), adding: "I would like after Brexit -- and the Republic of are moving slowly, sparking alarm assurances that we are able to deliver Ireland due in the coming weeks. among businesses that almost half full controls at these ports by July a century of economic integration 2021." The main opposition Labour party with the EU will end abruptly in a said Truss' letter showed a "growing few months' time. sense of chaos and confusion" within the cabinet about Brexit preparations. Citing the disruption caused by the coronavirus outbreak, London has The government is also planning a already said it will not immediately new public information campaign to introduce checks on EU imports, prepare businesses and individuals instead delaying them until July. for the end of the transition, dubbed "The UK’s new start: let's But in a letter to her cabinet Gove, the minister in charge of get going". It will include detailed colleague Michael Gove, leaked to preparing for Brexit, said the guidance for everyone from traders the media this week, international government had been consulting to holidaymakers on what might trade minister Liz Truss expressed on the issue for months and insisted change, Gove said. First major post-Brexit trade deal between Japan and Britain
Japan and the U.K. agreed in EU free trade agreement when its agreement, the EU will phase out principle on 11 September on a post- period for transitioning out of the 10 percent tariffs on Japanese auto Brexit free trade deal, ministers of bloc ends in December. Both sides imports by 2026, while Japan will the two countries said, paving the are seeking to implement a new deal reduce a 29.8 percent tariff on hard way for business relationships to next January. cheeses in stages to zero by 2035. continue smoothly even after the end of London’s transition period out of The two ministers had reached a Britain’s Department for the European Union in December. substantial agreement on most areas International Trade said the deal Foreign Minister Toshimitsu Motegi on Aug. 7 following talks in London. will increase its trade with Japan by and British International Trade But they missed their initial goal of some £15.2 billion (¥2.07 trillion). The U.K. said its newly agreed trade Secretary Liz Truss reached the agreeing in principle by the end of August due to differences over how deal with Japan, its first since leaving much Japan would the European Union earlier this year, cut tariffs on its meant 99 percent of the country’s cheese and farm exports to Japan would be tariff- imports from free. Digital and data provisions in Britain, according the agreement went “far beyond” to negotiation those in the EU’s trade deal with sources. Japan, helping British fintech firms operating in the Asian country, it The broadsaid. agreement is expected to allow Britain left the EU in January but Tokyo to avert agreed a standstill transition until a situation in the end of the year, and is racing to which the U.K. strike both replica and new trade accord when they met via video- would raise its tariffs on imported agreements before that date. “This conference. Japanese vehicles following its is a historic moment for the U.K. exit from the European Union, and Japan as our first major post- The two sides have been negotiating and largely replicate the existing Brexit trade deal,” said Truss. “The a deal since June as Britain will no Japan-EU agreement that came into agreement we have negotiated — longer be part of the existing Japan- force in February 2019. Under that in record time and in challenging July-September 2020 July-September 42 Regional News circumstances — goes far beyond The deal was an “important step” trading relationship, with Brussels the existing EU deal, as it secures towards joining the Trans-Pacific on Thursday threatening legal action new wins for British businesses in Partnership, she added. Britain is over contentious Brexit legislation our great manufacturing, food and locked in increasingly fractious that would violate the binding drink, and tech industries.” talks with the EU over its future divorce treaty agreed last year. UK economy extends recovery from COVID crash, growth seen fading Britain’s economy recovered half economist with Capital Economics, social distancing rules and many of its COVID-19 crash by the end said. people remain reluctant to travel of July, helped by pubs and on public transport or go to restaurants reopening from crowded places. lockdown, but the bounce- back is expected to slow Furthermore, unemployment as job losses mount and is expected to rise sharply Brexit tensions rise. After because Sunak has ruled out shrinking by a record 20% in extending his coronavirus the second quarter, output job retention scheme which expanded by 6.6% in July, slower than June’s monthly is due to expire at the end rate, the Office for National of October. Parliament’s Statistics (ONS) said on 11 Treasury Committee urged September. Sunak to “carefully consider” a targeted extension of the Economists polled by scheme and other support Reuters had expected growth measures, a call echoed by the of 6.7%. Finance minister Rishi Sunak In response, the Bank of England welcomed the figures but added that was likely to ramp up its bond- head of a major employers group. buying stimulus programme by a people were rightly worried about Carolyn Fairbairn, director general the coming months. The economy third, or 250 billion pounds ($320 of the Confederation of British remains 12% smaller than its level billion), Pugh said. Britain’s economy in February, before the pandemic hit suffered the sharpest second-quarter Industry said she was in “deep Britain. “July was probably the last of fall of any Group of Seven nation conversation” with the government the big step-ups in activity and a full in the April-June period. Hopes about a more selective version of the recovery probably won’t be achieved for a swift rebound have faded as job subsidies scheme to avoid long- until early 2022,” Thomas Pugh, an businesses struggle to cope with term job losses. Eurozone businesses bounce back in July as lockdowns loosen Eurozone business activity grew "The sharp rise... is an encouraging fund on July 21 and with European in July for the first time since the sign that the economic recovery Central Bank monetary policy coronavirus pandemic hit, as more continued at a decent pace. But we expected to stay ultra-loose for a long parts of the economy that were suspect that activity will remain time, optimism about the year ahead locked down to curtail its spread below pre-crisis levels for at least the improved. Markets are still expecting reopened and people emerged from next couple of years," said Jack Allen- a V-shaped recovery - as are some their homes to work and spend Reynolds at Capital Economics. The economists - but while 25 July data money. headline index had been below the 50 indicated a bounceback of sorts, it mark which separates growth from is unlikely to support those views. As the rate of infections has eased contraction since March so a return "A V-shaped recovery seems quite across much of Europe, governments to positive territory have loosened some restrictions. will be welcomed by That unleashing of pent-up demand policymakers and pushed IHS Markit's flash Composite governments who have Purchasing Managers' Index (PMI), pumped trillions of seen as a good indicator of the bloc's euros into the economy. economic health, to 54.8 in July from June's final reading of 48.5, its highest European Union leaders since mid-2018 and well ahead of the agreed a 750 billion 51.1 forecast in a Reuters poll. euro pandemic recovery July-September 2020 July-September 43 Regional News
unrealistic, despite the encouraging reopened and shoppers pushed their Still, a survey of the bloc's dominant numbers," said Bert Colijn at ING. spending back up to within a whisker service industry, which was hardest of pre-lockdown levels. hit by the government-imposed French business activity rebounded lockdowns, climbed above the far more than expected as a post- As demand increased, eurozone firms breakeven mark to its highest lockdown recovery in the service cut their headcount at a shallower since mid-2018. But some of the sector shifted up a gear, PMI data rate and purchasing managers resurgence in demand was driven by showed. Manufacturing activity were at their most optimistic since firms cutting prices for a fifth month, in Germany stabilized, avoiding a February, just before Europe began albeit at a shallower rate than in June. contraction for the first time in 19 to feel the full brunt of the pandemic. months, giving hope for a recovery The new business index rose to The manufacturing industry also from a long recession exacerbated by its highest reading since October returned to growth with the factory the pandemic. 2018, suggesting the recovery would PMI rising to 51.1 from 47.4, its first extend into August, but there are time above breakeven since January Meanwhile, British businesses, fears with jobs still being shed and 2019 and ahead of predictions. An outside the eurozone, experienced coronavirus containment measures index measuring output, which feeds the fastest upturn in five years still in place the upswing could be into the Composite PMI, jumped during July as more of the economy derailed. into growth territory. China's economy rebounds after steep slump, weak demand, U.S. tensions raise risks China’s economy returned to growth a Reuters poll, as lockdown measures their wallets tightly shut, pointing in the second quarter after a deep ended and policymakers ramped up to a bumpy outlook at home and slump at the start of the year, but stimulus to combat the virus-led overseas, as many countries continue unexpected weakness in domestic downturn. to grapple with the COVID-19 consumption underscored the need pandemic - led by surging infections for more policy support to in the United States. bolster the recovery after the shock of the coronavirus Though June indicators and crisis. GDP numbers largely beat expectations, Rodrigo Catril, Asian share markets and the a foreign exchange strategist at Chinese yuan CNY=CFXS NAB in Sydney, said they also fell, partly reflecting the revealed “the China consumer broad challenges facing remains behind in terms of the the world's second-largest recovery story.” economy as it grapples with the double-whammy of the “It’s very much a story of pandemic and heightened government stimulus-led tensions with the United recovery, which is very much States over trade, technology and The bounce was still the weakest focused on the industrial side. The geopolitics. expansion on record, and followed a consumer remains very cautious. steep 6.8% slump in the first quarter, Gross domestic product (GDP) rose That cautiousness is something the the worst downturn since at least the 3.2% in the second-quarter from a market is looking at in terms of year earlier, the National Bureau of early 1990s. Those risks were partly countries where the consumer plays Statistics said on Thursday, faster reflected in separate retail data that a bigger role, so that’s obviously than the 2.5% forecast by analysts in showed Chinese consumers kept relevant for the U.S. as well.” Dubai reopens doors to tourists after long shutdown The city-state of Dubai, known for hope of reviving its tourism industry before wary foreign holidaymakers its mega malls, high-end restaurants after a nearly four-month closure. return. “A warm welcome to your and five-star hotels and resorts, second home,” says the sticker has now reopened its doors to But businesses are mainly betting on applied to passports at Dubai airport, international visitors on 7 July with those already living in the gleaming where employees wear hazmat suits a “welcome” passport sticker and desert city to energise its ailing and vending machines offer personal coronavirus tests on arrival, in the economy and serve as a test run protective equipment. July-September 2020 July-September 44 Regional News
known for its mega malls, high-end restaurants and five-star hotels and resorts. But all have taken a severe hit during the coronavirus outbreak, and Dubai’s GDP in the first quarter of 2020 was down by 3.5% year-on- year.
Dubai-based airline Emirates, the largest in the Middle East, has been forced to slash its sprawling network and is believed to have laid off thousands of staff. Before reopening to international tourists, authorities launched social media campaigns and deployed hundreds of social The reopening comes even as the United Arab Emirates. High season media “influencers” to tout Dubai’s number of COVID-19 cases in starts in October when the scorching attractions. the United Arab Emirates climbs heat of the Gulf summer starts to But as the hospitality business works to 52,068 included 324 deaths, dissipate. Dubai welcomed more out how to create an environment with millions of foreign workers than 16.7 million visitors last year, that follows strict hygiene rules but living in cramped accommodation and before the pandemic crippled is still worth the hassle for potential particularly hard hit. Incoming global travel, the aim had been to foreign clients, hotels are offering tourists are required to present a reach 20 million arrivals in 2020. Dubai residents “staycation” and negative test result taken within four “daycation” deals to offset the slump. days of the flight. If not, they can With scant oil resources compared take the test on arrival, but must self- to its neighbours, Dubai has built The UAE’s capital is home to top isolate until they receive the all-clear. the most diversified economy in attractions including an F1 circuit the Gulf, boasting a reputation as a and the Louvre Abu Dhabi museum, Tourism has long been the lifeline financial, commercial and tourism which in late June opened its doors of the glitzy Gulf emirate, one of the hub despite an economic downturn to masked, gloved visitors after a seven sheikhdoms that make up the in recent years. The city-state is 100-day closure. Alibaba is in talks to invest $3 Billion in Grab Alibaba Group Holding Ltd. is the Singaporean startup access to a as reported by Bloomberg News on in talks to invest $3 billion in wider network of consumers. 14 September, could boost the user Southeast Asian ride-hailing giant growth of e-commerce subsidiary Grab Holdings Inc. The Chinese Alibaba’s potential $3 billion Lazada, which has been losing e-commerce giant, a sole investor in investment in Southeast Asia’s Grab, ground against Tencent-backed the round, will spend a portion of the funds to acquire some of the Grab stock held by Uber Technologies Inc. The deal may represent one of Alibaba’s biggest bets on Southeast Asia since its first investment in Lazada in 2016.
China’s largest corporation has previously had limited forays in ride-hailing but a potential tie-up with Grab gives it access to data on millions of users in eight countries, a growing delivery fleet as well as a stake in digital wallet and financial services. One specific plan under discussion is to integrate Grab’s delivery network into Lazada, giving July-September 2020 July-September 45 Regional News
Shopee. Lazada may tap the sizable Uber said it expects an impairment Corp 9984.T as one of its backers, ride-hailing and food-delivery user charge of up to $2.2 billion, adding expanded into financial services, base of Grab, whose services typically that the charge would be against food delivery and mobile payments have higher usage frequency than the carrying value of some of over the last few years, even before the company's minority equity e-commerce. the COVID-19 pandemic hurt its investments, due to the impact of Uber, which surrendered its the pandemic on the estimated mainstay ride-hailing business. In Southeast Asian operations to Grab value of those entities. Grab, which June, Grab announced a 5 per cent in March 2018, took a 27.5 percent has an estimated valuation of $14 reduction in staff numbers as it cut stake in Grab's business. In April, billion and counts SoftBank Group costs amid slower growth. Google will invest $10 billion in India over the next few years Google is planning to invest $10 tech sector over the next five to India is the world's fastest growing billion in India as part of plans to seven years through a mixture of internet market, with almost 700 make the internet "affordable and equity investments, partnerships, million internet users and nearly as useful" for a billion people. CEO and spending on infrastructure. The many yet to come online for the first Sundar Pichai announced time. the investment via livestream on 13 July at the The country has annual Google (GOOGL) attracted billions of for India event. "This is a dollars of investment reflection of our confidence over the last 15 years in the future of India and its from the likes of digital economy," he said in Google, Facebook (FB), a statement. Netflix (NFLX) and Twitter (TWTR), which "India's own digital journey rushed to cash in on the is far from complete. There's still more work to internet boom. investment will focus on enabling do in order to make the internet The numbers suggest there is still affordable access and information for affordable and useful for a billion huge potential for growth, despite red Indians ... from improving voice every Indian in their own language, flags raised recently by government input and computing for all of building new products and services efforts to exert more control India's languages, to inspiring and relevant to India's unique needs, online. Google's plans, and the supporting a whole new generation helping businesses with digital recent fundraising spree by Indian of entrepreneurs," he added. transformation and leveraging technology and artificial intelligence entrepreneur Mukesh Ambani, show The Google for India Digitization for social good, in areas like health, investors are ready to commit even Fund will pour money into India's education, and agriculture. more. Reliance-Google smartphone deal in India threatens Chinese firms A $4.5 billion deal under which The new phone is set to pose a Reliance executed a similar plan in Alphabet's GOOGL.O Google will major challenge to Chinese vendors 2017 with the launch of the JioPhone, collaborate with India's Reliance such as Xiaomi 1810.HK and BBK a no-frills device that gave users Industries RELI.NS on a new Electronics, owner of the Realme, internet access for as little as $20. smartphone likely heralds a big Oppo and Vivo brands, which JioPhone now has more 100 million shake-up for the world's second- users, many of whom are internet currently dominate a $2 billion largest mobile market. Reliance boss first-timers. Reliance's ambition market for sub-$100 smartphones Mukesh Ambani, announcing the to hand a smartphone to every in India. Powered by a clever partnership at his company’s annual Indian could also win subscribers meeting in mid-July, said Google mix of Bollywood, cricket-driven from telecoms rivals Vodafone Idea would build an Android operating marketing and product features such VODA.NS and Bharti Airtel, who system (OS) to power a low-cost as powerful cameras, the Chinese still have hundreds of millions of “4G or even 5G” smartphone that firms sell roughly eight of every 10 users with old-style feature phones Reliance would design. smartphones in the country. on basic 2G networks. July-September 2020 July-September 46 Regional News
movie apps. Jio network’s 387 million subscribers Jio Platforms and the Google brand name will give has also since it a big leg up. April won the backing Just as important are the possibilities of global for bundling Jio’s massive video financial and and music libraries with the phone. tech investors Google’s Android team also aims including Intel to ensure access to apps related INTC.O and to health, communications and Qualcomm jobs, and ease of use for first time QCOM.O, smartphone owners. which could That kind of packaging could help bolster its woo roughly 350 million Indians smartphone who still use basic, non-touch phones ambitions. and are yet to taste high-speed While Reliance mobile data on fancier devices. The has given no collaboration with Google could also The alliance will see Google invest details on set the stage for further partnerships $4.5 billion in Reliance’s digital the specifications or price of the between smartphone makers and unit, which houses telecoms and new smartphone, the timing of its Reliance to make devices specifically fibre businesses as well as music and launch, or who might build it, the for the Jio telecoms network. SBI to invest 17.60b rupees in Yes Bank State bank of India, country’s largest Yes Bank, after the bad-debt laden lender’s executive committee has lender had failed to raise the capital approved a further investment of it needed to stay above mandated upto 17.60 billion rupees in public regulatory requirements. offering of Yes Bank. In March this year, SBI board had approved an Since then SBI had stepped in to investment of 72.50 billion rupees acquire a stake in the private lender into the troubled lender Yes Bank. and to keep it afloat. However, SBI’s total investment is not likely to Earlier this year the Reserve Bank exceed 100 billion rupees, according of India (RBI) had taken control of to the bank’s chairman. Amazon India's SMB exports reach $2B Online giant Amazon is increasing helped more than 60,000 Indian Clothing, leather products, jewelry its drive to build its business in sellers to export products through and home items are big sellers, he India. The company said that total Amazon. In January, the company said. Amazon said it has worked with exports from small to medium-sized said it expected to spend $1 billion Indian banks to offer inexpensive businesses (SMBs) in that country on bringing Indian SMBS into the loans to its small sellers. has hit the $2 billion level. “It took us 21st century. Per the Reuters report, In June, Amazon launched a new three years-plus to hit the first billion Amazon plans to boost its exports of “Smart Stores” initiative in India dollars, today we are able to hit the Indian-made goods to $10 billion by aimed at expanding its reach into next billion dollars; 100 percent 2025. The U.S. is currently the biggest the country’s massive retail market. growth in the last 18 months,” noted market for such sales. The company said it is giving out Gopal Pillai, vice president for seller QR codes to retailers ranging from Therefore, annual sales events services at Amazon India. village shops to big retail chains like --such as Black Friday and Cyber Big Bazaar and More Supermarkets. Amazon’s “Global Selling” program Monday--are key times of the year, was launched in India in 2015. The Abhijit Kamra, head of global trade Shoppers can actually remain outside company said the program has at Amazon India, told Reuters. the store while scanning the QR code July-September 2020 July-September 47 Regional News
and then looking over merchandise virtually. Next, buyers can purchase the items they have selected using Amazon Pay. This ties into the worldwide trend of consumers using touchless technology.
Last month, Amazon India expanded its Amazon Flex delivery network to 35 cities across the country. The delivery service, which includes two- wheel delivery workers, was started last year in three cities.
Apple supplier Foxconn to invest $1B in India Foxconn plans to invest up to $1 does not comment on matters related west of Chennai, will take place over billion to expand a factory in southern to customers, while Apple did not the course of three years. Some of India where the Taiwanese contract respond to a request for comment. Apple’s other iPhones models, made manufacturer assembles by Foxconn in China, will be Apple iPhones. The move, made at the plant. the scale of which has not previously been reported, Taipei-headquartered Foxconn is part of a quiet and will add some 6,000 jobs at the gradual production shift Sriperumbur plant in Tamil by Apple away from China Nadu state under the plan. as it navigates disruptions from a trade war between It also operates a separate plant Beijing and Washington in the southern Indian state and the coronavirus crisis. of Andhra Pradesh, where it makes smartphones for China’s “There’s a strong request Xiaomi Corp, among others. from Apple to its clients to move part of the iPhone Foxconn Chairman Liu Young- production out of China,” one of the Foxconn’s planned investment in the way last month said it would ramp sources with direct knowledge of the Sriperumbur plant, where Apple’s up its investment in India, without matter told Reuters. Foxconn said it iPhone XR is made some 50 km giving details. Amazon deforestation increases 25pc in Brazil Deforestation of the Brazilian percent year-on-year in the first half July showed, increasing pressure on Amazon increased by a record 25 of 2020, official data released on 10 President Jair Bolsonaro to abandon his plans to develop the region.
Some 3,069 square kilometers (1,184 square miles) were affected by deforestation, the highest figure since satellite data has been collected beginning in 2015, the country’s National Institute for Space Research (INPE) said. June, which marks the start of the dry season and fires, also hit a record with 1,034 square kilometers of deforestation, an increase of nearly 11 percent. Brazil has been criticized by a number of July-September 2020 July-September 48 Regional News countries and environmental groups vast amounts of the Amazon and they will consider participating in over large-scale deforestation and triggered spats with several Western environmental protection projects in fires that ravage the world’s largest leaders. Despite the military the country. “It’s not true that we’re rainforest during the dry season. presence, however, INPE data shows destroying the jungle to produce an increase in deforestation for each food,” he said, also denying that Illegal logging by the timber industry, month since January, compared to as well as mining and cattle ranching Brazil was dismantling the state’s the same period last year. Last month, environmental protection structure. in protected areas are the main investment funds from Europe, Asia causes of destruction. Bolsonaro, a and South America that collectively Bolsonaro has shown little concern climate change skeptic, has facilitated manage nearly $4 billion demanded for the environment and repeatedly farming and mining projects on in an open letter that Bolsonaro stop indicated his intention to open up protected land and indigenous projects that threaten to accelerate indigenous territories and nature reserves. In May he deployed the destruction of the planet’s largest reserves to mining and agriculture. troops in the Amazon ahead of the rainforest. burning season to take “preventive Non-governmental organizations and restrictive action against Vice President Hamilton Mourao, point out that the right-wing environmental crimes, namely who heads Brazil’s National Council government’s discourse in favor of the illegal deforestation and wildfires.” for the Amazon, said international Amazon’s commercial exploitation The aim is to prevent a repeat of investors want Brazil to show “results” contradicts the military mission of last year’s wildfires that devastated in fighting deforestation before inspection and prevention. World’s biggest rooftop greenhouse opens in Montreal Building on a new hanging garden linked to climate change. Lebanese- Enough vegetables are harvested trend, a greenhouse atop a Montreal born Mohamed Hage and his wife each week to feed 20,000 families, warehouse growing eggplants and Lauren Rathmell, an American from with baskets tailored for each at a tomatoes to meet demand for locally neighboring Vermont, founded Lufa base price of Can$30. On the ground sourced foods has set a record as Farms in 2009 with the ambition of floor of the new greenhouse, a huge the largest in the world. It's not "reinventing the food system." an obvious choice of location to cultivate organic vegetables -- in the heart of Canada's second-largest city -- but Lufa Farms on Wednesday inaugurates the facility that spans 160,000 square feet (15,000 square meters), or about the size of three football fields.
It is the fourth rooftop greenhouse the company has erected in the city. The first, built in 2011 at a cost of more than Can$2 million (US$1.5 million), broke new ground. Since then, competitors picked up and ran with the novel idea, including American Gotham Greens, which constructed eight greenhouses on At Lufa, about 100 varieties of distribution center brings together roofs in New York, Chicago and vegetables and herbs are grown year- nearly 2,000 grocery products Denver, and French Urban Nature, round in hydroponic containers for offer to "Lufavores," including which is planning one in Paris in lined with coconut coir and fed restaurants. 2022. liquid nutrients, including lettuce, Fully automated, the new greenhouse A local Montreal supermarket has cucumbers, zucchini, bok choy, also has a water system that collects also offered since 2017 an assortment celery and sprouts. Bumblebees of vegetables grown on its roof, pollinate the plants, while wasps and reuses rainwater, resulting which was "greened" in order to and ladybugs keep aphids in check, in savings of "up to 90 percent" cut greenhouse gas emissions without the need for pesticides. compared to a traditional farm. July-September 2020 July-September 49 WTO News World merchandise trade fell 14% in volume, 21% in value in Q2 amid global lockdown Global merchandise trade volumes In the latest data, the steepest In terms of monthly performance, declined by 14.3% in the second declines were recorded in Europe the dollar value of world merchandise quarter of 2020 compared to the (‑21%) and North America (‑20%) trade fell 23% in April year-on-year previous period as COVID-19 while Asia was relatively less affected and 26% in May before easing to a 10% contraction in June as countries containment measures affected (-7%). The nominal dollar value of in Europe started to relax lockdown measures while some Asian economies saw a modest rebound. In July, merchandise trade remained weakened at -9%. The monthly estimates are based on data from 72 economies accounting for 92% of global merchandise trade.
The decrease in world services trade was more pronounced, dropping by 29% year-on-year in both April and May, 24% in June and 22% in July, based on preliminary statistics of 38 economies representing more economies around the world merchandise trade also plunged in than two-thirds of global services according to data released on the second quarter, falling by 21% trade. In July, services exports from 23 September. The latest trade year-on-year. In comparison, the North American economies were contraction is sharper than the 10.2% decline in merchandise trade values down 30% while in Asia, China's drop recorded during the financial during the financial crisis was deeper services exports stopped declining, crisis between the third quarter of with a 33% drop recorded in the reflecting the divergent trajectory of 2008 and first quarter of 2009. second quarter of 2009. the pandemic across regions. Statement of Alan Wm. Wolff, Joint Acting Director-General of the World Trade Organization at G20 Trade Ministers Meeting Shortfalls in key medical supplies and fueling future trade tensions. begin to unwind those that are no persist, despite increased production However, fresh opportunities also longer absolutely necessary. — and increased trade. Preliminary exist. figures indicate that global trade in Existing negotiations to modernize products such as personal protective The WTO’s Members are well- the WTO’s rules to meet the advanced in the process of selecting equipment, hand sanitizer and challenges of the global digital ventilators grew by close to 30% in a new WTO Director-General. economy and to provide for the first half of the year. While some Renewed engagement of the WTO’s trade restrictions have already been Members can ensure that the WTO rolled back, particularly with respect is fully ready to meet the challenges to foodstuffs, the pandemic is far of a changing global economy. from over and economic challenges As the pandemic continues, will persist. emergency trade-restrictive The roll-back of trade restrictions measures should be reviewed may already be losing momentum. through the lens of the G20’s criteria Government support needed to fight that existing measures are, in fact, the economic downturn could end targeted, proportionate, transparent, up distorting competitive conditions and temporary; members should July-September 2020 July-September 50 WTO News sustainable development should be settled within a universally accepted economic recovery requires open brought to a successful conclusion. structure; actively served by a strong, and predictable international trade, The process of systemic reform, called dedicated, professional Secretariat. supported by a well-functioning for by the G20 leaders and trade world trading system. ministers, should begin in earnest In an era of political and economic with WTO Members deliberating stress, the WTO must be made fit for Spurred by the determination concrete proposals, restoring the purpose. It must be seen to deliver expressed by you as trade ministers, WTO to its intended place where fairness to all who participate in or informed by the Riyadh Initiative, negotiations are successfully are affected by global commerce. under a new leader, the WTO can concluded; where disputes are A robust, sustained and inclusive fulfill its promise. WTO announces winner of 2020 Essay Award for Young Economists The winner of the 2020 WTO Essay knowledge inputs such as research tendency for protectionist policies Award for Young Economists is and development, information to raise consumer prices if the Xiang Ding of Harvard University. technology, and other professional measures are focused on knowledge- His paper, “Industry Linkages from services. The paper finds that in intensive industries. This is because, Joint Production”, was ranked first firms that make multiple products, when industries share knowledge, by the Selection Panel. He receives a a rise in demand in one industry to producer prices (PPI) fall or increase prize of CHF 5,000. which the firm sells also increases the less not only in industries that firm's sales to other industries. These are directly protected, but also in positive cross-product linkages industries that are jointly produced. are found where industries share According to the Academic Selection knowledge inputs but not where they Panel, the paper is likely to have a share other kinds of inputs such as substantial impact on trade policy physical inputs and intermediate going forward. The panel is also of components. Knowledge inputs have the view the paper has clear trade a special role in joint production policy relevance, and touches on a because they allow capital to be more wide range of literature. flexibly deployed across the firm's various products to find its best Xiang Ding is from Hong Kong, Xiang Ding's paper provides novel match. China. He received his Ph.D. from and quantitatively important Harvard University in 2020. He evidence on cross-industry linkages, These findings have implications for is currently Assistant Professor particularly joint production the re-evaluation of trade restrictions at Georgetown University, Walsh arising from industries sharing as there is found to be a lesser School of Foreign Service. WTO issues new report regarding impact of COVID-19 crisis on agricultural trade The WTO Secretariat has published a to the same period in 2019, with has increased the number of hungry new information note examining the further increased in March and people worldwide. impact of the COVID-19 pandemic April. However, the crisis has exerted on world agricultural trade. The further downward pressure on food The paper warns that countries are paper notes that agricultural trade prices, and therefore on producer still fighting the pandemic, and its has fared better than other sectors, revenues. repercussions for food supply chains and that initial measures focused are still unfolding. While there is on guaranteeing the immediate In addition, while availability of food have been world food stocks followed by a second phase of policies and production seeking to mend broken supply levels for the most chains and help producers to cope widely consumed with the “new normal” situation. staples — rice, wheat and maize While overall merchandise trade — are at or near fell sharply in the first half of 2020, all-time highs, agricultural and food exports the COVID-19 increased by 2.5 per cent during the pandemic’s impact first quarter of the year compared on jobs and incomes July-September 2020 July-September 51 WTO News
currently no reason why the ongoing crisis, disruptions to food supply chains trade policy choices likely to determine health crisis should turn into a food constitute a risk, with governments’ how the situation evolves.
WTO issues new report on how COVID-19-related restrictions on cross-border mobility are affecting global trade A new information note published allowing through “essential” foreign help WTO members foster greater by the WTO Secretariat highlights workers, or creating quarantine-free resilience in the face of future crises. how trade in goods and services has “travel bubbles” among partners. Such an exercise could help with been affected by temporary border Nevertheless, mobility barriers have identifying options to implement closures and travel restrictions had a particularly heavy impact on travel measures that meet public linked to the COVID-19 pandemic. tourism and education services, as health protection objectives while It describes how the cross-border well as on trade in goods, due to their minimizing the negative effects on mobility of individuals plays an effect on transport services and on trade. important role in both the cross- information and transaction costs. border provision and consumption of services and in manufacturing The paper notes that international value chains. cooperation has a potentially important role to play in minimizing The paper notes that sweeping travel the economic impact of mobility barriers introduced in the early stages restrictions. For instance, exchanging of the pandemic have given way to information on lessons learnt about more fine-tuned policies aimed at mobility restrictions and trade could WTO issues new report on how COVID-19 crisis may push up trade costs The WTO Secretariat has published measures and detours. Moreover, facilitation or of intellectual property a new information note warning business travel, which is important protection. The report notes that of possible increases to trade costs for maintaining trading relationships while COVID-19 has motivated due to COVID-19 disruptions. and managing global value chains, both trade-restricting and import- The note examines the pandemic’s in addition to being a significant facilitating changes in tariffs and impact on key components of trade economic activity in its own right, regulatory practices, these measures costs, particularly those relating to is being disrupted. The quality of have so far affected only a small travel and transport, trade policy, information and communications subset of products. A crisis-induced uncertainty, and identifies areas technology (ICT) infrastructure shift towards the digitalization of where higher costs may persist even and digital preparedness will be customs and regulatory procedures after the pandemic is contained. important in determining how well to reduce physical contact could economies can cope. potentially lower the associated trade The note estimates that travel and costs in the long-term. transport costs account for as much as a third of trade costs depending on The report also points to uncertainty the sector. Pandemic-related travel as a factor that magnifies the impact restrictions are therefore likely to of existing trade-related costs, affect trade costs for as long as they weighing on trade finance flows remain in place. For example, global and dampening the appetite of air cargo capacity shrank by 24.6 per businesses to invest in researching cent in March 2020, as passenger new markets, acquiring language flights account for around half of skills and prospective partners, and air cargo volumes. The resulting conforming with foreign standards. increase in air freight prices is likely Trade policy barriers and regulatory It notes that in the first quarter of to subside only with a rebound in differences are estimated to account 2020, a widely used measure for the passenger transport, according to the for at least 10 per cent of trade costs global level of uncertainty registered report. While sea and land transport in all sectors. They include tariff levels 60 per cent higher than those have not faced comparable shocks, and non-tariff measures, temporary triggered by the Iraq War and the maritime transport has seen a trade barriers, regulatory differences Severe Acute Respiratory Syndrome decrease in numbers of sailings, while and the costs of crossing borders, (SARS) outbreak in 2003. In mid- international land transport has been as well as other policies that impact March, a separate index of financial affected by border closures, sanitary trade, such as a lack of investment market volatility came close to highs July-September 2020 July-September 52 WTO News last seen in 2008 after the failure of crew from travel restrictions, or in passenger appetite for air travel Lehman Brothers. by enhancing the quality of and could lead to higher air transport the access to ICT. While many costs. In addition, government policy Looking ahead, the report notes of the changes in trade costs can choices — which could either reduce that many governments have be expected to revert once the or increase trade policy uncertainty implemented measures to mitigate pandemic is brought under control, pandemic-related disruptions to the report observes that some effects — will be important in shaping economic activity, for instance may persist. For example, aviation uncertainty-related trade costs in the by exempting certain transport industry consolidation and shifts future. WTO, World Bank launch joint publication on the role of trade in empowering women The WTO and the World Bank The publication features new data policies countries could introduce to launched the joint publication and analysis on how women benefit harness these opportunities, such as “Women and Trade: The role of trade from trade in different ways to men in lowering tariff and non-tariff barriers in promoting gender equality” at a terms of wages, welfare gains and the on goods produced and consumed virtual event on 30 July. Gaining a quality and quantity of jobs available largely by women, further opening better understanding of how women to them. It draws from a new dataset trade in services, and helping women can benefit from trade is essential in which, for the first time, provides traders and small enterprises benefit ensuring that trade works for all and labour data broken down by gender from market opportunities through that its benefits are sustained in the aftermath of the COVID-19 crisis, said WTO Director-General Roberto Azevêdo and World Bank Managing Director Mari Pangestu.
"The report comes out at an opportune time. The COVID-19 pandemic has provoked the deepest economic recession of our lifetimes. Recent WTO analysis shows that women risk losing some really hard-won progress towards greater gender equality because of this crisis. Looking forward, I have no doubt we need to lay the foundations for a strong, sustainable, and inclusive at the industry level for 72 countries. trade facilitation measures and economic recovery. To build back It also draws from the first database greater availability of trade finance. better, we need to ensure that women on explicit gender-related provisions The WTO has a key role to play, the are able to benefit from trade," DG in regional trade agreements. report stresses. Ongoing talks related Azevêdo said at the launch. The report finds that firms engaged to services, agriculture (which "Although this research was done in international trade employ a employs a large number of women before the global pandemic, its higher percentage of women than in developing countries), electronic non-exporting firms (33% on conclusions are more relevant than commerce and micro, small and average compared to 24% per cent ever. Gaining a better understanding medium sized enterprises are key to for non-exporting firms). It also of how women are affected by identifying and eliminating barriers features findings on how trade trade will be essential as countries to women's participation in trade. increases wages, improves working develop and the global economy The WTO also provides a forum conditions and is linked to higher recovers from the pandemic. I where members discuss tariff and levels of gender equality. non-tariff barriers across a range of hope the discussion today can help sectors and members' trade policies. policy makers identify the potential The report identifies trends pointing Improving transparency on gender- opportunities that trade can provide to opportunities for the further related policies can help establish for women and businesses and empowerment of women, namely good practices and draw attention buttress support for a more inclusive the rise in services, the expansion of to the challenges that women face in rules-based trading system," Ms global value chains and the growing participating in world trade. Pangetsu said. digital economy. It highlights trade July-September 2020 July-September 53 WTO News
The report highlights the need for finance, and enhancing information are required from governments, complementary policies aimed at technology skills to maximize international organizations and the increasing opportunities for women the gains from trade for women. private sector to promote the role of in education, increasing access to In addition, collective efforts trade in improving gender equality.
WHO, WIPO, WTO launch updated study on access to medical technologies and innovation On 29 July, the Directors-General recalled that “it is only through Dr Tedros Adhanom Ghebreyesus, of the World Health Organization joint efforts at the global level that WHO Director-General, said in (WHO), the World Intellectual we can achieve our shared public his video message: “Barriers to Property Organization (WIPO) health goals” and that “cooperation access must be removed, including and the WTO presented a new is also necessary to prepare for future unaffordable prices, intellectual edition of the Trilateral Study on health crises”, a goal to which the property barriers, unjustified tariffs Access to Medical Technologies study contributes. and challenges in ensuring effective and Innovation. Building on the and efficient regulatory review.” first edition launched in 2013, the WIPO Director General Francis publication seeks to strengthen Gurry said in a video message that “We have seen over the past months the understanding of the interplay the new edition of the trilateral study how countries have mobilized between the distinct policy domains is an important example of the three unprecedented investments in of health, trade and intellectual international organizations bringing collaborative, not-for-profit research property (IP), and how they affect their separate expertise together to and development. The COVID-19 innovation and access to medical address core issues at the intersection pandemic is showing what we can technologies, such as medicines, of health, trade and innovation. He do when we come together to face vaccines and medical devices. The observed that the original study, a shared global health threat. That’s second edition provides an improved, published in 2013, was well received the kind of collaboration that can evidence-based foundation for precisely because it provided a save lives and transform the health of policy debate and informed decision- factual account of the landscape on billions of people globally,” he added. making at a critical time for global access to medical technologies and health. innovation, and of the multiplicity of The study discusses key factors actors involved. determining access to medical In a video message released on technologies and innovation, the day of the launch, WTO “Our first duty,” DG Gurry said, including regarding medicines, Director General Roberto Azevêdo “always is to survey what the situation vaccines and other medical emphasized the need for policy actually is” before determining the technologies, such as medical coherence and collaboration. best way to improve it. He noted devices and diagnostics. The second Recognizing the close link between that while the new edition coincides edition draws practical lessons the health, trade and IP dimensions, with the current global health crisis, from experiences regarding the he noted that “coherent approaches it was completed to vital medical technologies that prior to the advent bring together the key determinants of the COVID-19 for innovation as well as access” pandemic. The were required and needed “to span study nonetheless the entire process, from research to includes a separate development to manufacturing and section on this delivery to those in need”. hugely challenging and complex subject DG Azevêdo said: “Close matter. DG Gurry collaboration between our three underscored the specialized agencies has yielded importance of interdisciplinary intersections between public health, important practical benefits. Similar approaches and of cooperation IP and trade within the broader benefits could be replicated at the amongst international organizations perspectives established by the domestic level by mirroring this as “the COVID-19 pandemic is human rights dimension of health integrated approach.” He expressed showing the need for health, trade and the Sustainable Development the hope “that the revised material and innovation policy to come Goals (SDGs). will support policy debate and help together to provide the answers build governments’ capacity to deal that we need to confront this huge The study records numerous with health challenges”. DG Azevêdo challenge for humanity”. significant developments since 2013 July-September 2020 July-September 54 WTO News when the first edition was launched. of access to medical technologies measures taken to address this Among the new topics covered are globally and key provisions in extraordinary public health crisis, antimicrobial resistance and cutting- regional trade agreements. In which began after the work on the edge health technologies. The revised addition, it takes account of second edition of the study had edition provides updated data on developments in IP legislation and been completed. The section guides jurisprudence. health, innovation trends in the the reader to parts of the study that pharmaceutical sector, and trade and A COVID-19 section at the start of are of direct relevance to the issues tariffs regarding medical products. It the publication provides a factual that have been raised during the also includes an updated overview overview of the developments and pandemic. WTO members review five regional trade agreements WTO members considered five ten years since 2008 although it was ASEAN while ASEAN members regional trade agreements (RTAs) difficult to evaluate separately the will liberalize between 85 and 100 involving the Association of effects of this agreement from the per cent of their tariff lines for Southeast Asian Nations (ASEAN); relevant bilateral EPAs. imports from Korea. Korea noted the Azerbaijan; Georgia; Honduras; increase in bilateral trade volumes, Hong Kong, China; Japan; the ASEAN is the second-largest trade which it said will continue through Republic of Korea; Moldova; Peru partner of Japan while Japan is the close cooperation among parties and Ukraine at the meeting of the the fourth-largest trade partner of to the Agreement. Korea added that Committee on RTAs on 27 July. ASEAN. The parties have expanded parties are currently negotiating The new chair of the Committee, the Agreement's initial provisions market access for sensitive goods Ambassador Mārtinš Kreitus of on trade in services and investment to enjoy additional benefits. Latvia, presided at the meeting. by concluding the First Protocol Thailand, on behalf of ASEAN, said to Amend the Agreement. This the Agreement builds on existing The Committee on RTAs considered agreement entered into force on 1 WTO commitments and provides the Free Trade Agreement for a progressive liberalization between ASEAN and of trade through substantial Japan, which entered coverage of various sectors. into force for the parties Thailand noted that Korea is between 2008 and 2010. currently the fifth-largest trading The parties noted that by partner of ASEAN and its tenth the time this agreement had largest source of foreign direct entered into force for all investment. parties, bilateral economic partnership agreements For the Free Trade Agreement (EPAs) between Japan and between Hong Kong, China seven ASEAN member and Georgia, parties to the states had already entered Agreement, which entered into into force. The Agreement force on 13 February 2019, served as an important building August 2020 and includes concrete highlighted the benefits it has block for the economic integration provisions in these two areas. brought to trade and investment in and integrity of the region. By both parties. Georgia eliminated April 2026, ASEAN states will have Members also considered the goods tariffs on 96.6 per cent of its tariff liberalized 76 to 100 per cent of tariff aspects of the Free Trade Agreement lines on imports from Hong Kong, lines for imports from Japan. Japan between ASEAN and the Republic China while Hong Kong, China will have liberalized almost 88 per of Korea, which entered into force bound its existing zero duty tariff cent of its tariff lines for imports on 1 January 2010. The goods regime. from ASEAN. aspects of the Agreement will also be considered in a forthcoming meeting Hong Kong, China said the Japan said the Agreement applies a of the Committee on Trade and Agreement provides legal certainty rule that allows for the cumulation Development. The trade in services and enhances trade and investment of rules of origin, meaning that aspects of the Agreement had been flows. It further noted that the products made up of components considered by the Committee in Agreement covers a comprehensive manufactured among the FTA 2018. range of services sectors and parties can qualify for preferential includes provisions on investor tariffs. Two-way trade in value terms Korea will liberalize over 76 per cent protection, intellectual property has expanded by 14.8 per cent in of its tariff lines for imports from rights, competition, environmental July-September 2020 July-September 55 WTO News
sustainability, transparency and respective commitments under the the full implementation of the dispute settlement. Georgia said WTO's General Agreement on Trade Agreement will help parties achieve the Agreement is a positive tool to in Services. Peru said the Agreement a predictable trade environment and increase attractiveness to traders establishes a legal framework that is will stimulate development. Moldova and investors. It added that the predictable for all trading activities said free trade agreements like this Agreement, the first instrument of and it will open up new opportunities are an important supplement to Hong Kong, China with the region, for small enterprises. Bilateral trade the multilateral trading system. serves as a platform for trade with amounted to only US$ 66 million in Azerbaijan, a WTO observer, said markets in the European Union, 2019 but this figure should grow in the Agreement builds on positive the Commonwealth of Independent the post-pandemic phase, Peru added. developments parties have already States and Turkey. enjoyed with individual GUAM Members also considered the member states under existing free Peru, speaking on behalf of the Free Trade Agreement between trade agreements. parties to the goods and services the GUAM participating states of aspects of the Free Trade Agreement Georgia, Ukraine, Azerbaijan and The Chair of the Committee between Peru and Honduras, said Moldova. The Agreement eliminated informed members that 53 RTAs the Agreement underlines the tariffs on all goods among the parties have still not been notified to the importance of using trade as a upon its entry into force on 10 WTO. In addition, there are 27 RTAs motor for growth, particularly in the December 2003. The Agreement also involving WTO members only and a aftermath of the COVID-19 crisis. has a rendezvous clause to liberalize further 25 involving non-members The Agreement entered into force on trade in services in the future. for which a factual presentation 1 January 2017. has to be prepared, counting goods Georgia said the Agreement will and services separately. The Chair Peru and Honduras will liberalize significantly support investment said he had held consultations with around 99 per cent of their tariff lines in the participating states. The delegations for which the RTA factual on imports from each other by 2031. parties are working on regulating consideration remains delayed due Moreover, the liberalization of trade rules of origin for the Agreement, to the lack of comments or data from in services goes beyond the parties' Georgia added. Ukraine said the members involved.
WTO, ICC and B20 call for action to narrow the growing trade finance gap The WTO, the International imports and exports, the statement The WTO, the ICC and B20 Saudi Chamber of Commerce (ICC) and reiterates. Since the need for trade Arabia also welcomed the measures B20 Saudi Arabia issued a joint finance is estimated to be between taken to stabilize trade finance statement on 9 July pointing to the USD 2 trillion and USD 5 trillion, markets. They urged the private diminishing availability of trade meeting this demand and addressing and public sectors to work together finance. Warning that gaps between the shortfall will be challenging. to bring about a rapid transition trade finance supply and demand There is serious concern that the to paperless trading, including could seriously impede the ability growing gap between demand e-documents in the processing of trade to support post COVID-19 and supply will particularly affect of trade finance transactions. In economic recovery, they are urging micro, small and medium-sized addition, the statement called for an private and public- exchange of views on how sector actors to work regulatory authorities together to address can help ease constraints shortages. on the provision of trade enterprises (MSMEs) and businesses The joint call for action, which finance. It also proposed increased highlights the importance of cross- in developing countries, with risk sharing to support trade finance border trade in driving economic important implications for jobs and and the extension of development recovery from the downturn caused incomes. bank schemes to provide risk by the COVID-19 pandemic, has its mitigation. The call to action welcomed a recent origins in a WTO Trade Dialogues joint pledge by the heads of the WTO The joint statement emphasizes that meeting with the private sector in and six multilateral development timely interventions are vital to May, where concerns about trade banks to monitor and address finance featured prominently. ensure MSMEs in particular have trade finance gaps, particularly for continued access to trade finance as Trade finance is a critical element developing countries and small a means of weathering the present in re-igniting world-wide growth in businesses. crisis. July-September 2020 July-September 56