ETBL ETBL Securities & Exchange Ltd.

Head Office: Branch Office: Chandrashila Suvastu Tower (9th Floor) Hussain & Khan Centre (6th Floor) 69/1 Panthapath, -1205 13 Dilkusha C/A, Dhaka-1000 Tel: 9641351-4, Fax: 9641285 Tel: 9569510, 9569451 Fax: 9569463 Email: [email protected] www.etblsecurities.com

International Chamber of Commerce (ICC) CENTENARY CELEBRATIONS ( 1919-2019) To mark our centenary, ICC will host in May 2019 a half-day summit featuring leaders from business,government and international organizations. Taking place in Paris, the summit will highlight thought leadership on addressing pressing global challenges through international cooperation and the roleof business in the 21st century.Following the May summit, five regional events will be held in Lagos (June), Athens (October), Bogota(November), Dubai (tbd) and Hong Kong (tbd). A closing event will also be held in early 2020 inMexico. Dates for regional events will be announced as soon as they are confirmed with each regionalhost. National committees not hosting a regional event are encouraged to organize a local event and to inform the ICC secretariat. In the context of the centenary, ICC will also launch a fundraising drive to support the €100m Centenary Fund under the theme “The next century of global business”. The fund will enable ICC to investin the creation and expansion of results-oriented projects and business lines, as well as to help supportICC operations. Legal establishment of the fund under French law is expected by early 2019. KEY MESSAGES 1. ICC has been at the forefront of advancing peace and prosperity • ICC represents both the developed and the developing world, globally since it was founded in 1919 bringing a unique and diverseperspective to global discussions. • ICC was founded in the aftermath of the First World War when • ICC is the only private sector organisation to hold United Nations no world system of rules governedtrade, investment, finance or Permanent Observer status. commercial relations. 4. The extensive ICC network enables our global organisation to • ICC’s founders acted on their conviction that building stronger act locally commercial relations betweennations would reduce the risk of • ICC maintains a network of over 90 national committees. war and armed conflict. • Our first national committees were created in 1920 in Belgium, • ICC’s founders were referred to as “The merchants of peace.” Denmark, France, Italy, UKand the US. The most recent addition • ICC’s International Court of Arbitration was founded in 1923 and is ICC Armenia, created in 2017. remains the most preferredarbitral institution in the world. • Our geographical expansion includes opening new case • In 1927, ICC brought private sector experts together with management offices in New York (2014),Hong Kong (2008), governments to develop a globalpact on lowering tariff barriers Singapore (2010), Shanghai (2016) and Sao Paulo (2017). – a project that was eventually adopted by governments asthe • ICC is the first non-Asian headquartered dispute resolution General Agreement on Tariffs and Trade, precursor to the World institution to establish an officein mainland China. Trade Organization (WTO). • The case management offices provide local service delivery that is • In the 1950s, ICC prepared the first draft of the New York vital for the users of ourarbitration services, and they contribute Convention—the UN agreementthat founded international to ICC maintaining its market-leading position ina competitive arbitration. environment for arbitration. • In 2015, ICC’s strong presence at COP21 helped broker the • Our network of chambers of commerce plays a vital role in landmark Paris Agreement—the world’sfirst comprehensive connecting ICC to SMEs. climate accord. 5. ICC continues to adapt to global challenges and disruptions 2. ICC is ensuring the organisation is fit for purpose for the next with a focus on advocacy, standards and solutions that collectively 100 years enable business worldwide • ICC’s founding constitution states the organisation’s mission • In areas from trade finance and international arbitration to climate was “to further the developmentof an open world economy with change and Internetgovernance, ICC works to bring the expertise the firm conviction that international commercial exchangesare of business into global discussions and decisionmakingprocesses conducive to both greater global prosperity and peace among at the international level. nations.” • The UN decision to grant ICC the status of Permanent Observer • Building on that foundation, ICC’s renewed mission to “make in 2017 demonstrates a growingrecognition by governments business work for everyone, everyday, everywhere” is now and intergovernmental organisations of the crucial role the aligned with our purpose in the context of the global challenges privatesector can play in developing solutions to current and andopportunities of the 21st century. emerging global issues. • As part of an internal transformation, ICC is putting digital • ICC’s range of pioneering arbitration and dispute resolution first, strengthening its own networkand culture, and exploring services are the gold standardinternationally. new opportunities to help build more sustainable and inclusive • The Global Alliance for Trade Facilitation, which is jointly led businesscommunities globally. by ICC, is redefining the way tradefacilitation reforms are • ICC’s guiding vision is to “enable business worldwide to secure implemented by working with governments and businesses from peace, prosperity and opportunityfor all.” theground up to tackle trade barriers with a business mind-set. 3. ICC is the world’s largest and most representative business • The ICC Academy, based in Singapore, offers dynamic e-courses organization. and specialized programmes on trade finance and cross-border • With members in more than 100 countries, ICC represents 45 transactions designed by leading industry experts to meetthe million companies and morethan 1 billion workers worldwide. educational needs of , corporates and other organisations • 1 in 3 workers depend on ICC members for their livelihood. at the forefront ofinternational trade.

Editor’s Note

US-China trade conflicts—a major concern for global economy

China is the world's biggest developing country and the United States is the biggest developed country. Trade and economic relations between China and the US are of great significance not only for the two countries but also for the economic stability and development of the world economy. Since the establishment of diplomatic relations, bilateral trade and economic ties between China and the US have developed steadily. Recent trade friction between these two countries has overshadowed their relations. The Executive Board Two-way trade in goods has grown rapidly. Currently, the US is China's biggest export President market and sixth biggest source of imports. On the other hand, China is the fastest Mahbubur Rahman ETBL Holdings Limited growing export market for US goods and the biggest source of imports of the United Vice Presidents States. Trade friction between the two countries should be properly resolved as it bears Latifur Rahman on global economic stability and prosperity as well as world peace and development. Transcom Limited Rokia Afzal Rahman According to the recent White Paper released by China regarding trade and economic Metropolitan Chamber frictions with the US, trade between the two states reached US$583.7 billion in 2017. The Members A. H. Aslam Sunny Trump administration has instigated a trade war with China by imposing tariffs on a Knitwear Mfg. & Exp. Association total of $250bn of Chinese imports. As counter to the US move, China is also imposing A. K. Azad Ha-Meem Denim Ltd. tariffs on $110bn of US imports. There have been warnings from both the private and A. S. M. Quasem public sectors about the potential spillover effects of the ongoing trade war between the Dhaka Chamber US and China. Aftabul Islam IOE () Limited Anwar-Ul-Alam Chowdhury (Parvez) As globalization moves forward, the economies of the world are increasingly connected Evince Group through trade. Trade has become a major engine for global growth. According to the Kutubuddin Ahmed Envoy Textiles Limited World , the international economy's dependence on trade rose from 17.5 percent in Mahbubul Alam 1960 to 51.9 percent in 2017. Chittagong Chamber Md. Fazlul Hoque The "World Economic Outlook" report released by the IMF on April 17, 2018 noted that Plummy Fashions Limited Md. Shafiul Islam (Mohiuddin) raising tariffs and non-tariff trade barriers will disrupt the global value chain, slow down Federation Chamber the spread of new technologies, lead to a drop in global productivity and investment Md. Siddiqur Rahman Garments Mfg. & Exp. Association and ultimately slow down.growth trajectory. IMF also cautioned that all countries Mir NasirHossain would suffer as a result of the tensions and cut back its GDP projection for the US to Mir Akhter Hossain Limited ShehzadMunim 2.5% in 2019, and further still to 1.8% in 2020. This has undoubtedly cast a long shadow Foreign Chamber worldwide at a time when US growth has been critical to the global economy. Sheikh Kabir Hossain Insurance Association As a matter of fact for most Asian nations, China is their single biggest trading Syed Mahbubur Rahman destination, but the US remains an invaluable economic partner as well. As a result, the Tapan Chowdhury escalating tensions between the two economic giants have caused unease. In November Square Textiles Limited Editor 2018, Asia-Pacific Economic Cooperation (APEC) meeting in Papua New Guinea could Ataur Rahman not come up with a joint statement – the first failure of this kind in the entity’s 25-year Secretary General history. The meeting, with the high profile gathering was an opportunity to promote Editorial Associate Syeda Shahnewaz Lotika economic cooperation and try to resolve the ideological division between the two mega- Deputy General Manager world power - US and China.

Contents A trade war cannot help the entrenchment of trust and constructive cooperation in ICC Bangladesh News 4 US-China relations. The trajectory of their relationship will very much depend on the ICC HQs News 16 stability of the global economy, so it is crucial for both countries to mitigate strategic Bangladesh Economy 25 rivalry and expand mutual respect. Regional News 38 WTO News 54 ICC Bangladesh News Businesses support continuation of government for policy continuation Prime Minister Sheikh Hasina,M.P. relations and road connectivity facilitator. Hasina said the drives said she did not want to go to with the neighbouring countries. against militancy, terrorism and power by any means which might Rohingyas were given shelter drugs would continue and the destabilise peace in the country. on humanitarian grounds and government would show “zero She was speaking at “Bangladesh discussions were going on to resolve tolerance” against corruption.

ICC Bangladesh President Mahbubur Rahman in his address said we are recounting the past achievements of the present government and the future targets that they are planning to achieve under the dynamic leadership of Hon’ble Prime Minister Sheikh Hasina. The achievements of the government over the last ten years is well known to all of us and we have seen the reflection at home and abroad. We are now a proud nation Hon’ble Prime Minister H.E. Sheikh Hasina Chamber leaders at the Businessmen Conference 2018 titled “Bangladesh towards peace and prosperity”held in Dhaka 0n 18 December. whereas in seventies Bangladesh was branded as a country of poor, towards peace and prosperity” which the crisis through negotiation, problematic and natural calamities. was organised by Federation of she added. Pointing out her We all recollect the comments Bangladesh Chambers of Commerce government’s initiative to settle the made by the former US Foreign and Industry (FBCCI) in Dhaka on dispute on maritime boundaries Secretary considering Bangladesh 18 December . with Myanmar and India, the prime “a bottomless basket”, he added. He The PM said her party wanted to see minister said that her government further mentioned that no doubt the a peaceful election in the country as had also successfully implemented energy policy of present government many political parties would contest the land boundary agreement with is very much business friendly and the December 30 parliamentary India. the country as well as businesses are polls. The AL president said a benefitting from that. Sheikh Hasina said that the people peaceful situation was prevailing in of Bangladesh are now regarded with Top business leaders and the country. special honour in the world as the entrepreneurs across the political divides said they want to see Sheikh Prime Minister Sheikh Hasina citizens of a developing country. laid importance on continuation Hasina as the prime minister of Describing the private sector as of the government and said that the country for next term again, her government had embarked on the driving force of the country's terming her as the ‘symbol of hope’ massive development works in every economy, the PM said the sector for the entire business community sector. Continuation of the present would be the key player and and common people as well for the government was very crucial to the government would act as its country’s thriving growth. maintaining the existing business atmosphere, she emphasised. Construction of the Padma Bridge, nuclear power plant, Karnaphuli tunnel and other projects had been taken for the socio-economic development of country, she said, adding that addressing the adverse effect of climate change and poverty alleviation were also crucial tasks.

Sheikh Hasina said that her government had established good ICC Bangladesh President Mahbubur Rahman is delivering his speech at the Businessmen Conference 2018. October-December 2018 October-December 4 ICC Bangladesh News

“Business community wants a mega projects undertaken by the BASIS President Syed Almas Kabir leader who have vision, courage, government was screened at the spoke at the programme, moderated cooperation and whose doors are programme. by the FBCCI chief. always open for them,” said Shafiul Alam Mohiuddin, president of Former FBCCI president Salman F President of Leather Goods FBCCI adding that Sheikh Hasina is Rahman, also the PM's adviser on and Footwear Manufacturer & the last resort to resolve any problem private enterprises, said the business Exporters Association of Bangladesh of industries, owners and workers community was very much grateful to Saiful Islam, DCCI President and she stands as the guardian for the PM as she extended cooperation Abul Kasem Khan, Bashundhara development. to every businessman irrespective Group Chairman Ahmed Akbar of their political affiliation to do Sobhan, Berger Paints MD Rupali They extended their full support to business freely over the last 10 years. Chowdhury, Mohammadi Group the ‘zero tolerance’ policy of Sheikh Former FBCCI presidents Mahbubur Hasina to corruption, urging her to MD Rubana Huq, AKM Selim Rahman, Mir Nasir Hossain and AK Osman MP, Tipu Munshi MP, former give punishment if there is any ‘black Azad, leading woman entrepreneur BGMEA presidents Kutubuddin sheep’ in the business community. Rokia Afzal Rahman, Metropolitan Top business entrepreneurs, Ahmed, Atiqul Islam and Anwar- Chamber of Commerce and CEOs, managing directors of Ul-Alam Chowdhury Parvez, Anwar Industry (MCCI) President Nihad manufacturing industries and Group MD Manwar Hossain, Abdul Kabir, BGMEA President Siddiqur export-import enterprises, leaders Rahman, Incepta Pharmaceuticals Monem Sugar Refinery Chairman of steel industries, service oriented Managing Director Abdul Muktadir, Moinuddin Monem, BSRM Group organizations, power sector and ICT Chairman Ali Hussain Akber, and leaders of trade bodies joined ACI Limited Chairman Anis Ud Bangladesh Dokan Malik Samity the conference. Dowla, Grameenphone CEO Michael Foley, Microsoft Bangladesh President Helal Uddin and Anisur A video documentary on the MD Sonia Bashir Kabir, City Group Rahman Sinha of Opex Group also development of various sectors and Chairman Fazlur Rahman and addressed the conference. DCCI celebrated 60th year by organizing Destination Bangladesh Seminar The current pace of development On the occasion, the DCCI conferred multinational professional services may be stopped if not the Awami the “Visionary Leadership Award” on network headquartered in London, League return to power through the PM, calling her a “torchbearer” Bangladesh would emerge as the the next election due by December, of Sonar Bangla and a real change world's 28th largest economy by Prime Minister Sheikh Hasina said on October 28. “I don’t know what will happen if another party come to power as the election is approaching,” the Prime Minister said referring her bitter experience that her development schemes were discontinued with the political changeover.

Hasina, while addressing the country’s top business leaders in Dhaka, said she would be able to Hon’ble Prime Minister H.E. Sheikh Hasina is seen at an international business conference titled ‘Destination fulfill the development targets only Bangladesh’ was organized at the 60th anniversary of Dhaka Chamber of Commerce and Industry (DCCI). if the people vote her to power. Commerce minister Tofail Ahmed also seen in the picture. “We will also try to stand by them maker, who is an inspiration to 2030 and 23rd largest economy by even we don’t get their vote,” the private sector. “Sheikh Hasina 2050, exceeding many developed PM said while inaugurating an opened the gateway for greater economies like Australia, Spain, international business conference investment and is a trendsetter Malaysia and the Netherlands. “I titled ‘Destination Bangladesh’ of transforming Bangladesh into hope you the business people will do at Bangabandhu International 'Destination Bangladesh',” said a your business keeping the target in Conference Center (BICC). The DCCI citation. mind,” the PM said. programme was organized at the 60th anniversary of Dhaka Chamber Hasina said according to Hasina said her government had of Commerce and Industry (DCCI). Pricewaterhouse Coopers, a set a goal for quick development of October-December 2018 October-December 5 ICC Bangladesh News

the country through fulfilling the had already been implemented and country, the PM said her government basic rights of 160 million people. the implementation process of the envisaged expansion of industries “In doing this, we have given second five-year plan is underway. under the private sector. utmost importance to the private sector as the sector is the key to Against the backdrop of increasing Commerce Minister Tofail Ahmed, strengthening the economy through per-capita income and purchasing State Minister for Finance MA investment.” The PM said her capacity of people, Hasina hoped that Mannan and President of Federation government had done everything the country would be able to achieve of Bangladesh Chambers of for the development of the economy 8.25 percent growth next year as Commerce and Industry Shafiul in a planned way and set a goal to private sector would play a big role Islam (Mohiuddin) attended the make Bangladesh a middle-income in fulfilling the target. Mentioning function as special guests. DCCI country by 2021. To achieve the her government's plan to set up 100 President Abul Kashem Khan goal, she said the first five-year plan Special Economic Zones across the delivered the welcome address. Lack of good governance hampering economic growth : Speakers at civic dialogue People are failing to reap the benefits sector since 1990s, but the country's commissioner, said the country's of the economic growth Bangladesh good governance is still far below political parties “have been doing has been achieving for over a decade different in global indexes, said their job like private organisations”. due to lack of good governance, Wahiduddin Mahmud, a noted “There is no particular reference in weakness in the regulatory bodies economist and advisor to a former our constitution about the structure and structural flaws in political caretaker government. “Theof the political parties. We are lagging parties, analysts said on December upcoming election needs to be behind our competing countries because of weakness in our political institutions,” he said. “The Election Commission's infrastructure is the largest in comparison to the others in the subcontinent. Despite that, the EC has failed to discharge its responsibility properly,” Sakhawat said. The country does not have any policy on institutionalising the commission, creating crisis to take timely decisions, he said, adding that the businesspeople were now ICCB President Mahbubur Rahman (5th from left)& ICCB Vice President Rokia Afzal Rahman (4th from left) panicked about the situation after are seen at a civic dialogue titled “Middle Income with Quality and Dignity: An Agenda for Bangladesh”. Also the polls. seen in the picture former Advisor to the former caretaker govt. Dr. Hossain Zillur Rahman (5th from right); an Eminent Economist & Advisor to the former caretaker govt. Wahiduddin Mahmud (4th from right); former Bangladeshbank Governor Dr. Salehuddin Ahmed(3rd from left); Professor of Economics Dhaka University Ali ICC Bangladesh Vice President Taslim (2nd from left); DCCI President Abul Kashem Khan (2nd from right) and former DCCI President Asif Rokia Afzal Rahman pointed out Ibrahim (2nd from right). the rising inequality in Bangladesh. 15. Political parties should address accepted by the people. Even after Quoting a recent Oxfam report, she the issue in their respective election 47 years of our independence, we said Bangladesh has been ranked manifestoes to ensure inclusive have a basic agenda. And that is an 148th out of 157 countries. India growth, they said at a civic dialogue accountable and stable governing and Singapore – although financially titled “Middle Income with Quality system,” he said. “The current in a much better position – ranked and Dignity: An Agenda for politics and its unfair exercises are 147th and 149th respectively. “One of the prime philosophies of taxing Bangladesh”. mainly responsible for problems in is to reduce income inequality,” she the corporate governance,” he added. International Chamber of said. To harness benefit from the Commerce (ICC) Bangladesh and There remain a number of challenges demographic dividend, she said Power and Participation Research to attain sustainable development the government must create job opportunities for the ever growing Centre jointly organised the event goals as the country's allocation number of unemployed youths. at the LGED Auditorium in the for health and education is far capital. A remarkable progress has lower than its peers, he included. The ICCB vice president also said the been achieved in the socioeconomic Sakhawat Hussain, a former election massive development of the country October-December 2018 October-December 6 ICC Bangladesh News that has taken place in the last few continuing trying to improve the defaulters often reschedule their years was not a bi-product of good situation. nonperforming loans more than governance. As a matter of fact, this three times breaching the rules,” he development has been steered by a Hossain Zillur Rahman, another said. The upcoming government advisor to a former caretaker number of reasons: should strengthen the organisational government, said one of the core structure of the regulatory bodies, objectives of political parties for First -two-thirds of the population Salehuddin added. of the country falls in the age group ruling the country was providing of 21-35 and is considered as the unfair facilities to the people Among others, Selim Raihan, productive workforce in a country; involving with their organisations. executive director of SANEM, second, the contribution of garment A demographic discrimination Ghulam Quader, a former advisor industries; third, the contribution between Dhaka and the other parts to a caretaker government, Asif of foreign remittance; Fourth, the of the country has been created, he Ibrahim, a former president of contribution of Non-governmental said. The political parties should DCCI, Farah Kabir, country focus on the issues, he said, adding Organisations and Finally, the director of ActionAid Bangladesh, that the electoral process should proactive and courageous decision of M Ramizuddin Chowdhury, editor be credible so that people can vote the government. of daily Purbokone, Nasim Manzur, without fear. former president of Metropolitan Although good governance and Salehuddin Ahmed, a former Chamber of Commerce and Industry; development are interrelated as the governor, said Abul Kasem Khan, president of prior acts as the facilitator of the people from all walks of life had the Dhaka Chamber of Commerce latter, but, the case of Bangladesh is not got the benefits of the economic and Industry; MA Taslim, former unique as despite certain weaknesses development. “The central bank chairman of Tariff Commission; and the country has made a tremendous has framed a lot of rules and AB Mirza Azizul Islam, advisor to a success in economic as well as social regulations to supervise banks. But former caretaker government; also development because, the govt. is banks hardly follow those as many addressed the event. Delayed settlement of international payment (export-import) damaging country’s image : ICCB President A number of cases of the commercial their duties with due diligence and to be stopped, he observed. banks in Bangladesh do not make without any pressure as well as follow payments on time against letters of the international banking rules & Mr. Rahman said in order to credits though there is no discrepancy. regulation to settle international remain competitive in today’s This affect country’s image to the payment. ICCB President mentioned changing environment, both clients outside world very badly said ICC that our financial institutions are and financial institutions have to Bangladesh President Mr. Mahbubur passing through a very crucial time streamline their trade activities. As Rahman while addressing at the because of nexus between regulators, per the ICC 2017 survey the major closing ceremony of the Workshop bankers and big borrowers. This has challenges facing businesses today on Documentary Trade Finance: Technical, Legal & Technology organized by ICC Bangladesh in Dhaka on 9 December. We at ICC Bangladesh quite frequently receive complain from foreign banks for not honoring the L/C terms and making payment on time, he added.

He therefore urged Bangladesh Bank, the regulator to make sure that the commercial banks do not withheld payment when the documents are not discrepant. He ICC Bangladesh President Mr. Mahbubur Rahman (2nd from right) is seen at ICC Workshop on Documentary advised the participants to scrutinize trade Finance : Technical, Legal & Technology held in Dhaka on 9 December. Also seen in the picture from left the documents carefully and ensure to right are : Executive Committee Member of ICC Banking Commission, Paris and Vice Chair of the Banking Commission of ICC United Arab Emirates Mr. Vincent O’ Brien, ICC Bangladesh Banking Commission Chairman that payments are made on time. & Chief Executive Officer of Bangladesh International Arbitration Centre (BIAC) Mr. Muhammad A. (Rumee) Ali He also told the participants to do & ICC Bangladesh Secretary General Mr. Ataur Rahman.

October-December 2018 October-December 7 ICC Bangladesh News

are cost control, limited technical (BIAC) Mr. Muhammad A. (Rumee) the sector declaring profit every competency, limitations of current Ali in his address said the banking year, he questioned? He mentioned that lack of good governance and pressure of the vested group are the main reasons for such huge scam. He urged the central bank for ensuring good governance of the banking sector.

Mr. Vincent O’ Brien, Executive Committee Member of ICC Banking Commission, Paris and Vice Chair of the Banking Commission of ICC United Arab Emirates conducted the workshop. ICC Bangladesh Secretary Group picture of participants with ICC Bangladesh President Mahbubur Rahman. General Ataur Rahman also spoke at technology, poor productivity sector has lost Tk. 22, 502 crore the occasion. during the last 10 years through management, and limited training A total of 151 participants from and development. major scams, according to media reports. Therefore, per year lose is 35 banks attended the workshop ICC Bangladesh Banking Tk. 2,250.20 crore and per day loss held in Dhaka. Earlier a similar Commission Chairman & Chief is Tk. 8.6 crore (260 working days workshop was held in Chittagong on Executive Officer of Bangladesh a year). How the banking sector is 8 December where 80 participants International Arbitration Centre sustaining in that situation and how from 30 banks attended. Non-Performing Loans impacting capital adequacy of the industry said ICCB President Capital adequacy is the primary show any sign of strengthening their Mahbubur Rahman observed that indicator of the banks’ financial capital base. On top of this of the total until now, only limited action has fitness and stability. Banks are loan banking sector loan amounted been taken to penalise defaulters, required to keep at least 11.81% capital adequacy ratio (CAR) which determines the adequacy of banks’ capital keeping in their risk exposures. But as of June, banks’ CAR stood at 10 percent, down from 10.11 percent a quarter earlier said ICC Bangladesh President Mahbubur Rahman at the closing ceremony of ICC workshop on Importance of Compliance in Trade Finance at a city hotel on 7 October.

Non-Performing Loans (NPL) is

one of the issues that is impacting Mahbubur Rahman, President of ICC Bangladesh (centre) is seen at the concluding session of a two-day ICC capital adequacy of the industry Workshop on Importance of Compliance in Trade Finance held in Dhaka during 6-7 October. Also seen in the specially the eight state-owned picture Muhammad A. (Rumee) Ali (2nd from right), Chairman, ICCB Banking Commission; Helal Ahmed Chowdhury (2nd from left), Supernumerary Professor, BIBM; Ataur Rahman (extreme right), ICCB Secretary commercial and specialized banks. General and Sudhakar Sanjeevi (extreme left), Workshop Resource from the UAE. For decades, state-owned banks have improve risk management and been the prime leader to the large to Tk. 7,527.30 billion, of which strengthen bank management. To corporate borrowers particularly in Tk. 803.07 billion or 10.67 per cent tackle the sector's deep-rooted the industrial sector of the economy, was bad debt. And if restructured problems of corruption and poor mentioned Mr. Rahman. or rescheduled loans were included, risk practices further efforts needed. Since 2009, the government has NPL in the banking sector goes up to Bangladesh Bank must ensure injected Tk,.14,505 crore into the 17 percent of total outstanding loans, following of regulatory measures by state owned banks but they are yet to he added. the commercial banks, he urged. October-December 2018 October-December 8 ICC Bangladesh News

ICC Bangladesh Banking Mr. Helal Ahmed Chowdhury, yearly allocations for training their Commission Chairman & CEO, Supernumerary Professor, BIBM & officials so that they can attend such Bangladesh International Arbitration Former Managing Director, Pubali workshop/training of international Centre (BIAC) Mr. Muhammad Bank Ltd thanked ICC Bangladesh standard. He said risk management and compliance are more important A. (Rumee) Ali, in his address for continuously arranging in the financial industry than ever said the non-compliance in trade workshops for the bankers both at home and abroad. Such programme before. For us, they are also part of financing risk is having an impact in allows the bankers to interact with building genuine relationships with Bangladesh’s overall risk rating. In their colleagues and learn from the our customers. fact, in Bangladesh it raises the cost experienced speakers on various ICC Bangladesh Secretary General of accessing trade finance product issues related to banking operations, Ataur Rahman also spoke on the in International Market. Therefore in particular international trade occasion. Mr. Sudhakar Sanjeevi, training like this must increase the finance. He opined that all the Senior Officer, Internal Control efficiency of the concerned bank banks including the Bangladesh Department, Rakbank, UAE officials, he added. Bank should have appropriate conducted the workshop. ASEAN Diplomats visited ICC Bangladesh The Diplomats of the Association of Vietnam Son Bao Tran and Consul ASEAN, with legacy of 50 years, South East Asian Nations (ASEAN) of Singapore William Chik. ICC have seen significantly contributing visited the International Chamber Bangladesh Vice-President Rokia A to regional trade and business proliferation. It is a common economic bloc of 10 countries amounting USD 3 trillion GDP and maintaining a trade bloc of around USD 548 billion.

Bangladesh an economic miracle and model for LDC due to its prudent macro-economic management with exemplary achievement in UN MDG agenda many heavy-weight multinational financial companies like Merill Lynch, Goldman Sachs, Mahbubur Rahman, President, International Chamber of Commerce-Bangladesh (4th from right) & Rokia Afzal JP Morgan, UBS ranked high of Rahman, Vice-President, International Chamber of Commerce-Bangladesh (extrete left) are seen with ASEAN Dhaka Committee members. Bangladesh and one of front runner economies. of Commerce Bangladesh & Rahman & BIAC CEO Muhammad Bangladesh International Arbitration A. (Rumee) Ali were also present. Currently the bilateral trade is Centre (BIAC) on 14 October. around $215 Million with average The ASEAN Dhaka Committee has import of Bangladesh from ASEAN ICC Bangladesh President Mahbubur been established with an aim to countries is 16%, but export to Rahman briefed them about the strengthen ties between the bloc and activities of ICC Bangladesh BIAC. ASEAN countries from Bangladesh Bangladesh. A video presentation on ICCB is 1.6%. activities also showed to them. BIAC Director M A Akmall Hossain Azad made a Power Point presentation on BIAC. The ASEAN members are Myanmar Ambassador and Committee Chairman U Lwin Oo, Indonesian Ambassador Rina P Soemarno, Malaysian High Commissioner Nur Ashikin binti Mohd Taib, Philippines Ambassador Vicente Vivencio T Bandillo, Charge d' Affaires of Meeting with ASEAN Dhaka Committee members is in progress.

2018 October-December 9 ICC Bangladesh News

Bangladesh, India and China keep growth for Bangladesh, this regional unanimously agreed AEC endorsed maintaining the position of top inclusion is imperative. ASEAN by all ASEAN head of states in economic Growth performers during is growing in width and breadth 2015. AEC was signed to spearhead past couple of years which justify as ASEAN members are united to common economic interests with strong position of Asian Economies. create a more engaging and liberal the philosophy of ‘One vision, One To progress with same escalating trade and economic forum under the Community’. Visit by Ambassador of Japan H.E. Mr. Hiroyasu Izumi, Bangladesh Secretary General were favourable to the development work. Ambassador of Japan to Bangladesh also present. Over the years, the relationship and visited ICC Bangladesh and BIAC economic cooperation between at the invitation of ICC Bangladesh After independence of Bangladesh these two Asian countries have been President Mahbubur Rahman. The in 1971, Japan has been consistently growing stronger and stronger. Since Ambassador was briefed about maintaining a very significant 1985 Bangladesh has ranked first as the recipient of Japan’s Grant Aid (roughly 10 per cent of Japan’s total grant aid) with a moderate rate of increase annually. Japanese Technical Assistance and Cooperation to Bangladesh is also appreciable. JICA has extended its technical cooperation through funding and implementing Technical Cooperation Projects in Bangladesh in the prime sectors of Education, Health, Environment, Disaster Management, Agriculture and Rural Development, Power, Transport and Mahbubur Rahman, President, International Chamber of Commerce-Bangladesh (4th from right) & Rokia Afzal also in private sector over the last Rahman, Vice-President, International Chamber of Commerce-Bangladesh (extrete left) are seen with ASEAN Dhaka Committee members. two decades. Bilateral relationship between and effective relationship in the the activities of ICC HQs and ICC Bangladesh and Japan has also been development process of Bangladesh. Bangladesh. He was also informed enhanced in other areas, especially in by the President about organizing Since the establishment of trade and investment. Japan has been special conference to celebrate diplomatic ties between Bangladesh one of the major destinations for centenary of ICC and Silver Jubilee and Japan, Japan has been extending Bangladeshi goods. In recent years, of ICC Bangladesh towards the end its aid assistance to Bangladesh. shoes, prawns, garments and leather of 2019. Mr. Takeshi Ito, Minister Japanese ODA for Bangladesh has goods are major export products to of the Japanese Embassy and ICC been focused less conditional and Japan. French Ambassador called on ICC Bangladesh President H. E. Mrs. Marie Annick Bourdin, following President Mitterrand’s visit before. It is mostly fuelled by RMG Ambassador of France visited in 1990 and the French proposal which accounted for more than 98% ICC Bangladesh and BIAC at for a flood-prevention development of Bangladeshi exports to France. The the invitation of ICC Bangladesh programme. Prime Minister Sheikh value of exports from Bangladesh to President Mahbubur Rahman. The Hasina visited France in 1999 France increased by 1.4% to EUR Ambassador was briefed about and again travelled to France in 2.4 billion, while French exports the activities of ICC HQs and December 2017 for the One Planet to Bangladesh only reached EUR ICC Bangladesh. Mr. François Summit, where she met the President 191 million. France is Bangladesh's Petit, Economic and Commercial of the French Republic. fourth largest export market. Councilor of the French Embassy Economic relation between To reduce the huge trade deficit that and ICC Bangladesh Secretary Bangladesh and France is faring we are dealing with, France is eager General were also present. well. In 2017, overall trade volume to put its world acclaimed know- In the late 1980s, French- between the two countries followed how and experience at the service of Bangladeshi relations were on a high its increasing trend, as the year Bangladesh, especially in the sectors October-December 2018 October-December 10 ICC Bangladesh News where our companies' excellence is proven around the world.

Hence, we follow with a keen interest the development of the sectors of electricity, rail transportation, water treatment and all environment related issues. Likewise, we supported the French company THALES in designing and manufacturing the first Bangladeshi geostationary communications and Broadcasting Satellite, Bangabandhu Satellite-1, which was launched on 10th May ICC Bangladesh President Mr. Mahbubur Rahman (2nd from right) is seen with France Ambassador H.E. Mrs. Marie Annick Bourdin (centre). Also seen in the picture from right to left are : ICCB Secretary General Mr. Ataur 2018. Rahman, Economic and Commercial Councilor of the French Embassy Mr. François Petit & ICCB General Manager Mr. Ajay Bihari Saha Another success story for our to consolidate the mutual economic bilateral relationship is the winning and Veolia, through a subsidiary of and social benefits. of the 275 million euros contract Veolia Water Technologies, as equal to design, build and operate a partners. France and its companies are drinking water production plant committed to developing their action in Narayanganj's Ghandharbpur. The individual strength of both and establishing partnerships which This contract will be executed by a France and Bangladesh are to be would allow Bangladesh to reach its joint venture set up between Suez amply utilized and shared in order ambitious economic targets. Malaysian High Commissioner at ICC Bangladesh H.E. Ms. Nur Ashikin binti Mohd Malaysia is one of the time-tested The steady diversification of Taib, High Commissioner of friends of Bangladesh, the inherent relationships between Malaysia Malaysia to Bangladesh visited ICC reasons behind the strong bond and Bangladesh has become a Bangladesh. She was briefed by of friendship are mainly based natural process now. Bangladesh President Mahbubur Rahman about on religious, cultural, linguistic, and Malaysia have agreed to start the activities of ICC HQs. and ICC ethnic, historical and social links negotiations on the preferential trade Bangladesh. ICC Bangladesh Vice existing between the peoples of agreement (PTA) to give the bilateral trade a boost. This was agreed at the President Rokia A Rahman was both the countries. In our socio- 2nd Foreign Office Consultations also present. Mr. Edham Zuhri economic development, Malaysia's (FOC) between the countries in Muhammad Yunus, Counsellor contribution is remarkable and so it Putrajaya on 28 February. Foreign of the High Commission and ICC goes with trade and commerce and Secretary Md. Shahidul Haque led the Bangladesh delegation while the Secretary General Ramlan Ibrahim led the Malaysian side. Two sides discussed all issues related to the bilateral relations including trade and investment, employment of Bangladeshi workforce in Malaysia, Rohingya issue, and culture, the foreign ministry said. Both sides noted that the government to government plus [G2G+] mechanism has brought in “positive” development in reducing the cost of the labour force to come to Malaysia H.E. Ms. Nur Ashikin binti Mohd Taib, High Commissioner of Malaysia (middle), ICCB President Mr. Mahbubur and the influence of the middlemen. Rahman (2nd from right), ICCB Vice-President Mrs. Rokia Afzal Rahman (2nd from left), Mr. Edham Zuhri Muhammad Yunus, Counsellor of the High Commission (extreme right) & ICC Bangladesh Secretary General The two-way trade is around $2 Ataur Rahman (extreme left) are seen in the picture. billion in which Bangladesh exports only around $100 million worth Secretary General attended the there exists a very deep engagement products mostly frozen food, agro Meeting. between the two countries. products and jute. October-December 2018 October-December 11 ICC Bangladesh News

Brunei Darussalam High Commissioner made a farewell call on ICC Bangladesh President H.E. Mrs. Hajah Masurai Binti Haji investment and agriculture. The Bangladesh Chambers of Commerce Masri, High Commissioner of Brunei contribution to Brunei's economy and Industry (FBCCI). Darussalam to Bangladesh made a farewell call on ICC Bangladesh President Mahbubur Rahman on 31 December. She thanked the President for all the support and cooperation that she has received from the government and in particular the business community and people of Bangladesh.

From the very beginning, Bangladesh and Brunei enjoyed cordial and friendly relations as well as excellent

understanding and cooperation. H.E. Mrs. Hajah Masurai Binti Haji Masri, High Commissioner of Brunei Darussalam (2nd from left), ICC In 1985, soon after the Sultanate Bangladesh President Mahbubur Rahman (2nd from right) and ICCB Secretary General Ataur Rahman are seen achieved independence, Bangladesh in the picture among others. established resident diplomatic made by Bangladeshi nationals (such In order to increase bilateral trade, mission in Brunei Darussalam. as teachers, doctors, engineers and both countries emphasized on Brunei reciprocated by establishing expatriate workers) continues to the need to explore new areas its resident diplomatic Mission in strengthen relations to the mutual and to consider the possibility of Dhaka. benefit of the two countries. Bilateral preferential arrangement and regular consultative mechanism. Brunei The foreign policies of Bangladesh trade is still insignificant both in volume and value. expressed keen interest to invest and Brunei Darussalam have in Bangladesh Economic Zones many similarities including shared A business delegation of Brunei Authority for intermediary products outlook on matters of regional visited Bangladesh, led by which would be taken to Brunei for and international interest. The Permanent Secretary of the Brunei further value addition for export to two countries work closely in Foreign Affairs and Trade Ministry the Association of Southeast Asian international forums such as the OIC, Siti Norishan Abdul Ghafor, on 9 Nations and other world markets. United Nations, Commonwealth and September expressed their interest They showed an interest to invest in Non-aligned Movement. to develop the existing trade the Bangladeshi hotel business. Both There is scope for further deepening relations with Bangladesh. The sides, however, agreed that trade and widening of cooperation in a delegation expressed their interest volume was far less than existing number of areas, particularly trade, while meeting the Federation of potentials. ICC-UNHCR Programme for Rohingya Refugees and host community A 4-Member delegation from ICC Paris, UNHCR, Geneva and Foundation eDF, France visited the Rohingya camps on 6-9 November. ICC Bangladesh Secretary General accompanied by the Team. UNHCR arranged a de-briefing meeting at its office on 10 November which was presided over by ICC Bangladesh President Mahbubur Rahman. The Foundation eDF proposed that the Foundation will undertake a project to supply solar energy to a selected

ICC Bangladesh President Mahbubur Rahman (4th from left) & Secretary General Ataur Rahman (5th from right) area of the camps. The first phase are seen with ICC-UNHCR team of the Project with an allocation October-December 2018 October-December 12

ICC Bangladesh News of €95,000 will be initiated by the Pacific, UNHCR HQ; Ms. Ingrid Ms. Yasmine Rockenfeller thanked beginning of 2019 and it will be Christine Colette Ruyant, Head of ICC Bangladesh President followed by further expansion of the Operation, International Solidarity Mahbubur Rahman for his guidance, of the Foundation, eDF France, Mr. coverage under the Project. support and cooperation to UNHCR Robert Capozella, Member of Group The Team included Ms. Yasmine Foundation, eDF France and Ms. and Foundation eDF in selecting the Rockenfeller, Senior Development Sophie Louise Tomlinson, Assistant project for the Refugees in Cox’s Advisor, Bureau for Asia and the Policy Manager, ICC, HQs. Bazar. Participation at ICC Knowledge Sharing Session in Paris ICC Knowledge Sharing Sessions on integration of activities of WCF and World Chambers Congress to be 3-5 December 2018 was organized NCS. held in Rio de Janeiro, Brazil on 12- by ICC at its Headquarters, Paris. All 14 June 2019. the NCs were invited to attend the The programme included discussion Session. ICC Bangladesh President on the integration of National ICC Bangladesh Secretary General approved the participation of the Committees (NCs) and World also discussed with ICC officials

Group picture of ICC NCs representatives at ICC Knowledge Sharing Session in Paris.

Secretary General at the Session. The Chambers Federation (WCF) regarding organizing a Regional 3- day event was attended by 36 NCs. activities into a coordinated Event in Dhaka, Bangladesh during ICC Secretary General John W.H. membership function within early November 2019 marking the Denton welcomed the Delegates the ICC Secretariat; ICC dispute 100-year Anniversary and follow from Melbourne through Video. He Resolution Services, Membership up on Trade Facilitation Project in outlined the plan of celebration of and strategic planning, ICC Bangladesh to be undertaken jointly 100 years of ICC and future strategy Project Unify, Launching of New with ICC and The Global Alliance, of ICC to make it more vibrant and INCOTERMS 2020, update on 11th Washington. Training of Bankers of Cambodia in Phnom Penh At the invitation of the Institute of Banking and Finance (IBF) of Cambodia, ICC Bangladesh Secretary General Ataur Rahman and Mr. ATM Nesarul Hoque, Vice President, Mutual Trust Bank Ltd. organized a training for the bankers in Phnom Penh, Cambodia on 14-16 December 2018.

A total of 45 Cambodian bankers attended the first training held on 14 December and 15 bankers attended Group picture of participants with ICC Bangladesh Secretary General Ataur Rahman & Mutual Trust Bank Vice- 2-day training (15-16 December) President Mr. ATM Nesarul Hoque at Phnom Penh. October-December 2018 October-December 13

ICC Bangladesh News

including seven bankers who are UK. ICC Bangladesh has been of Cambodia and five bankers of going to appear at the Certified promoting CDCS Examinations in Myanmar will be appearing at CDCS Documentary Credit Specialist Cambodia and Myanmar. This year Examinations. (CDCS) Examination in April 2019 in April five Bankers of Myanmar It may be mentioned that ICC conducted by London Institute appeared at CDCS and all of them Bangladesh will receive commission of Banking and Finance (LIBF), passed. In April 2019, nine bankers of £100 per participants from LIBF. Meeting of ICC Bangladesh Banking Commission A Meeting of the ICC Bangladesh on the current scenario of the Project & former Executive Director Banking Commission was held on Banking sector. The Commission Bangladesh Bank; Mr. Mohammed 12 December. The Meeting chaired recommended the Action Plan Hossain, former Managing Director, Limited; Mr. Emranul Huq, Additional Managing Director, Dhaka Bank Limited; Mr. Tawfiq Ali, Sr. Representative Commerzbank AG, Bangladesh Representative Office; Mr. Ahmed Shaheen, Deputy Managing Director & Head of Corporate Banking, Eastern Bank Limited; Mr. Md. Bakhteyer Hossain, Executive Vice President & Head, MFIS, MITS & NRB Division, A meeting of ICC Bangladesh banking Commission is in progress. Mutual Trust bank Limited; Md. by Mr. Muhammad A. (Rumee) Ali for 2019 for consideration of the was attended by eight Members. Executive Board. The meeting was Motiur Rahman Meah, The City ICC Bangladesh President also also attended by Mr. Md. Ahsan Ullah, Bank Limited & ICCB Secretary attended and shared his thoughts Advisor, Financial Sector Support General Ataur Rahman ICCB organizing CDCS Examination in Dhaka ICC Bangladesh has made arrangement with The London Institute of banking & Finance (LIBF) UK for holding the CDCS Examination in Dhaka and accordingly the Examination is being held two times (April & October) in every year in Dhaka since 2008. So far 914 have successfully passed the examination from 49 Banks, 1 Financial Technology & 2 from Bangladesh Institute of Bank Management (BIBM). The details number of participant from different organization is given below:

Name of Institution No. Name of Institution No. Name of Institution No. AB Bank 57 Islami Bank 218 Social Islami Bank 24 03 19 Sonali Bank 03 Al Arafah Islami Bank 56 05 Sonali Polaris Financial Technology 01 BD Commerce Bank 02 03 SBAC Bank 01 BIBM 02 Mercantile Bank 36 Southeast Bank 24 Bank Asia 18 Midland Bank 01 Standard Bank 16 BASIC Bank 06 Modhumoti Bank 03 Bank 13 BRAC Bank 11 Mutual Trust Bank 34 01 Citibank N.A 08 National Bank 12 The City Bank 20 CBC PLC 01 NCC Bank 04 The Farmers Bank 02 Dhaka Bank 15 NRB Commercial Bank 05 HSBC 30 18 NRB Global Bank 03 Premier Bank 09 Eastern Bank 27 One Bank 06 Trust Bank 17 . 17 Prime Bank 47 03 First Security Islami Bank 14 43 Uttara Bank 09 Habib Bank 03 08 Bangladesh 01 IFIC Bank 01 Shahjalal Islami Bank 29

October-December 2018 October-December 14 Images from the Gallery

ICC Bangladesh President Mahbubur Rahman (middle) is seen with Unilever Bangladesh Limited CEO & Managing Director Kedar Lele (extreme right) during his visit to ICC Bangladeshon 19 December. Secretary General Ataur Rahman IS also seen in the picture.

ICC Bangladesh President Mahbubur Rahman (2nd from right) & Vice President Rokia Afzal Rahman (middle) are seen with Shehzad Munim (extreme right), Managing Director, British American Tobacco Bangladesh Co. Ltd. during his visit to National Secretariat on 24 December. Also seen in the picture are Bangladesh International Arbitration Centre Chief executive Officer Muhammad A. (Rumee) Ali (2nd from left) and ICC Bangladesh Secretary General Ataur Rahman.

Group picture of participants at ICC Bangladesh Workshop on Documentary Trade Finance: Technical, Legal & Technology held in Chittagong on 8 December. October-December 2018 October-December 15 ICC HQs News ICC calls for closest possible relationship between UK and European Union With the date for the United for both the UK and EU – and would the Single Market for a period long- Kingdom (UK) to leave the provide much needed certainty enough to allow the agreements to be European Union (EU) just months for companies, of all sizes, trading renegotiated. This period is certainly away, ICC has restated its position internationally. not shorter than five years and could be as long as 10 years.

“If the UK leaves the EU in a ‘hard’ Brexit scenario, with only World Trade Organization rules to fall back on, the disruption to the UK’s reputation and trading position could be potentially very damaging. It’s not in anyone’s interests for this to happen. In such a scenario, the only practical and responsible solution at this late stage in the negotiations is an extended transition within the Customs Union and the Single Market.” that the UK should seek the closest “The EU has 52 trade agreements possible trading relationship with covering over 70 countries and The UK-EU trade corridor is one of the EU to keep cross border trade as with economies as diverse as South the most sophisticated in world trade frictionless as possible. Korea, Canada and Chile – and having been built-up over 40 years. most recently Japan,” said Michael The EU is the UK’s largest trading In ICC’s view, this should mean Rake, Chairman of ICC United partner with exports of £274 billion staying with the Customs Union – Kingdom. “These are hugely complex in 2017 (44% of all UK exports – 54% if including all countries with an EU and preferably the Single Market – agreements that each take five-seven trade agreement) with UK imports for a transition period long-enough years on average to negotiate and to manage the significant complexity from the EU valued at £341 billion in cannot be quickly replicated. It is of leaving the EU after 45 years and 2017 (53% of all UK imports). therefore incumbent upon the UK the world’s largest single market. government to be responsible and With well over half a trillion pounds ICC believes this will require a minimise the damage to businesses of trade at stake – and the jobs, transition period of between 5-10 within the UK, the EU and those investment and prosperity such a years to minimise disruption in countries trading through the figure represents – ICC’s position the UK, EU and the global trading UK into the EU. And that means is driven by the practical need to system more broadly. Such an maintaining our position within minimise the disruption inherent outcome would represent a win-win the Customs Union and possibly within the Brexit process. ICC welcomes Qatar Chamber to International CO Accreditation Chain The Qatar Chamber of Commerce as Tamader Al Thani said that well as three local chambers in Italy Qatar’s accession to the ICC CO have become the latest members Accreditation Chain as the 24th of the International Certificate of member country will further Origin (CO) Accreditation Chain. promote and facilitate trade by The announcement was made during implementing a universally-accepted an International CO Council meeting certification standard for the issuance of Certificates of Origins in which took place in Jaipur, India, the country. 13-14 November 2018. The meeting was chaired by Peter Bishop, Deputy Director of International Relations She further noted that the chamber CEO of the London Chamber of and Chambers’ Affairs at Qatar will organise an awareness workshop Commerce and Industry. Chamber and ICC Qatar Sheikha in cooperation with ICC and ICC October-December 2018 October-December 16 ICC HQs News

Qatar in January of 2019 to provide established in 1963 and is one of the – The Chamber of commerce practical information on the ICC oldest chambers of commerce in the industry handicraft and Certificate of Origin and the benefits GCC countries. It aims to organise agriculture of Riviere di Liguria it will provide to the Qatari business business interests and represent Imperia La Spezia Savona. community. the Qatar private sector locally and globally. Created by the ICC World Chambers With its newly established status, the The new members are: Federation in 2012, the CO Qatar Chamber now benefits from the Accreditation Chain today includes – The Qatar Chamber of Commerce use of the internationally-recognised 560 chambers from 24 countries. ICC CO label. This certified mark In Italy (with UnionCamere as assures businesses, traders, banks national coordinating body); Through the creation of the CO and customs administrations – The Chamber of commerce Chain, ICC aims to assist chamber that their COs have been issued industry handicraft and leaders in promoting universal according to the most stringent and agriculture of Aosta; certification standards and harmonised certification standards, – The Chamber of commerce processes to better serve chambers based on the ICC International CO industry handicraft and of commerce, as well as traders and Guidelines. Qatar Chamber was agriculture of Reggio Emilia; customs administrations. Hamad Buamim named new Chair of World Chambers Federation Chambers of commerce making community will be of great value common goals and pave the way for up the General Council of to our global organization as we sustainable global growth.” the International Chamber of approach our centenary with a Commerce’s (ICC) World Chambers commitment to further strengthen Federation (WCF) have elected the important collaboration with Hamad Buamim as incoming WCF chambers to better enable business Chair. Mr Buamim, who is President worldwide.” and CEO of the Dubai Chamber Commenting on the appointment, of Commerce and Industry, has Mr Buamim said: served as WCF Deputy Chair since 2013. He will take over the “I look forward to working with my role from Peter Mihok in January colleagues at the World Chambers 2019. Attending the WCF General Federation and chamber leaders Council meeting in Dubai 20-22 around the world to develop and November, ICC Secretary General adopt a future-ready framework John W.H. Denton AO welcomed that will facilitate global trade and Mr Denton also thanked Mr Mihok Mr Buamim’s appointment, saying: move the chambers community for his excellent leadership and years “Hamad’s extensive experience and forward. Through our combined of dedication to the work of WCF high standing within the chamber efforts, I believe we can achieve and the global chamber network. Three reasons to attend the 2019 ICC Banking Commission Annual Meeting in Beijing Registration is now open for the 1. Celebrating one hundred years of “The theme of the ICC Banking ICC Banking Commission’s 2019 ICC Commission meeting this year Annual Meeting, taking place from ‘Leading the way in global trade’ 8-11 April 2019 at the World China The 2019 Annual Meeting marks the underlines the key role ICC has played Summit Wing in Beijing. centenary of ICC—the world’s largest for the past 100 years in supporting business organisation. As such, the an international rules-based trading Gathering over 600 delegates— conference will be especially focused system”, says ICC Secretary General including C-suite executives and on the ways in which ICC has worked John W.H. Denton AO. “This industry experts—to discuss to promote international trade in the milestone provides an opportunity to the challenges, prospects and past and the ways in which it will reflect on ICC’s achievements as well ongoing innovation in the trade as to look ahead to what more ICC continue to do so in the future. As finance industry, the ICC Banking can do to promote inclusive trade the trade finance sector continues its Commission’s Annual Meeting is and sustainable growth. one of the most prominent events in digital transformation , ICC’s role in the banking calendar. Here are three pioneering standards and rules for Trade finance figures prominently reasons why you should attend: the industry is as important as ever. in that discussion and is crucial to October-December 2018 October-December 17 ICC HQs News

our vision of enabling businesses ICC Banking Commission reports, in international trade and its focus worldwide.” including the Global Survey and on achieving self-sufficiency in key

2. Broaden your knowledge, expand your network

With a record number of attendees, including government officials, C-suite executives, industry experts, lawyers and insurers, this is an unmissable opportunity for delegates to broaden their knowledge and the Trade Register, both industry- technology sectors through its Made insight into the global trade finance leading initiatives exploring the state in China 2025 strategic plan. sector, as well as engage and debate of the trade finance industry. with one another. “It is a great pleasure to be hosting 3. Asia, the world’s premier trade the 2019 Annual Meeting in Beijing,” This will include taking a close look finance hub comments Daniel Schmand, Chair of at the industry’s transformation— the ICC Banking Commission. “With discussing the challenges and Asia is the world’s number one trade Asia’s crucial position at the heart of opportunities in increasing finance hub and China is the world’s the trade finance industry and the the efficiency of trade finance largest trading nation. In turn, it is centenary of the ICC, it seemed an operations—and addressing ways to only fitting that the 2019 conference obvious choice to gather members expand access to trade financing. will take place in Beijing. and delegates here—in the midst The meeting will include keynote and This year’s Annual Meeting will of such a vibrant hub—to explore breakout sessions exploring trade accordingly dedicate a regional focus the wide range of opportunities and finance policies, emerging trends, to the opportunities of the Belt and challenges the sector is currently ICC rules and findings from flagship Road Initiative, China’s evolving role facing.” Five highlights from the ICC Banking Commission’s 2018 Technical Meeting in Tbilisi This year’s International Chamber interest in the development and Georgia as a technology hub and of Commerce (ICC) Banking implementation of digital processes how the country is evolving in the Commission Technical Meeting and solutions within the global trade new digital era. was held for the first time in finance sector. Tbilisi, Georgia. Taking place on 2. Launch of the ICC Digital Road 15-17 October, the ICC Banking Here are five key highlights from the Map day: Commission’s 2018 Technical The various work streams gathered Meeting gathering over 200 trade 1. Georgia’s role as a technology hub to present to members updates on finance experts from 50 countries— their work and projects to date. as well as high-level attendees such as With this year’s Technical Meeting One standout stream was the Prime Minister of Georgia Mamuka held in Tbilisi, the success of Digitalisation Working Group. Bakhtadze—to discuss the major Georgia’s trade finance sector was Established last year, the Group issues currently affecting the global naturally a hot topic. Indeed, the works to both ensure that trade trade finance industry. country’s economy, driven by its finance rules are ‘e-compatible’ and banking sector, has established establish a set of standards to enable The plenary meeting focused on key itself as one of the fastest growing in digital connectivity for trade finance topics surrounding transformation Central and Eastern Europe over the service providers. and collaboration in the trade last quarter of a century. finance sector. Georgia, with its Chris Southworth, Secretary thriving export-based economy and With increasing interest in the General of ICC United Kingdom, wealth of small- and medium-sized digitalisation of global trade finance, announced the launch of the ICC enterprises (SMEs), proved an ideal Vincent O’Brien, member of the ICC Digital Roadmap project – one choice for this year’s forum – a prime Banking Commission Executive stream of the Digitalisation Working example showcasing the benefits Committee, and Vlad Radysh, Group. The project is in line with of open and international trade. At Government Relations Director for the group’s 2020 strategy to help the forefront of discussions was the the CIS Region at Bitfury Georgia, identify and support innovation and topic of digitalisation, with increased discussed the growing role of standardisation of rules for digital October-December 2018 October-December 18 ICC HQs News trade finance. It was stressed that the relevant in the digital age is a crucial dedicated the afternoon to the Roadmap is not a static document task for members of the Banking Official Opinions – a staple but will be continuously adapted in Commission. Expansion into new of each Banking Commission light of rapidly-evolving trends and markets and the proliferation of gathering. Widely cited by judges contributions from industry and new, digital processes are just a few and practitioners when resolving public sector experts. of the transformations underway disputes, the Official Opinions are the in the global trade finance sector ICC Banking Commission-approved 3. Survey report on the legal status of and ICC rules must be updated and interpretation of how ICC rules are to electronic bills of lading revised accordingly to ensure their applicability. be adhered to by members. Opinions With growing digitalisation of the trade finance sector, the move towards electronic bills of lading (eB/ Ls), which have traditionally been presented in paper form, will help reduce costs and increase efficiency.

ICC, alongside global law firm Clyde & Co, has launched a report on the legal status of eB/Ls to consider whether the law can keep pace with the technology that is rapidly developing in the international trade In turn, Dave Meynell, Senior are based on questions submitted by sector. Stephen Tricks, a Consultant Technical Advisor at the Banking ICC representative offices, known as at Clyde & Co LLP, delved into the Commission and Owner of TradeLC national committees. topic, presenting members with a Advisory, and David Hennah, powerful report on the legal status Global Head of Trade and Supply Responding to these questions of eB/Ls in a range of countries and Chain Finance at Finastra, presented represents an important task for the outlining potential courses of action. members with an update on the Banking Commission. In turn, the revision of the ICC rules eUCP, Technical Advisory Team presented 4. E-compatibility of ICC rules eURc and URBPO. its draft opinions, for review by the Ensuring that ICC rules – which 5. ICC Rules for Experts national committees, after which the underpin over US$1 trillion of Official Opinions were consolidated transactions each year – remain This year’s Technical Meeting and agreed upon. ICC Banking Commission and Clyde & Co launch report on the legal status of electronic bills of lading The ICC Banking Commission and launched a report on the legal status is replaced by an electronic bill global law firm Clyde & Co have of electronic bills of lading. The of Lading (eB/L). Similarly, there report considers whether the law in is currently uncertainty over the this area reflects the technological legal consequences if the eB/L is change that is rapidly occurring in subsequently printed in paper format. the international trade sector. The ICC Banking Commission appointed Clyde & Co to conduct a For centuries the principal document survey on the legal status of eB/Ls, in international trade has been the bill of lading (B/L). It is issued by whether in the form of an electronic the carrier and can be transferred record or in paper format when from seller to buyer, often via converted from an electronic record. their respective banks. The B/L is a The survey covers the following ten “document of title” in that the holder jurisdictions: UK (English law), USA of the original B/L has specific legal (NY law), Germany, Netherlands, rights in relation to the goods. UAE, China, Singapore, Brazil, India The question remains whether and Russia. The report sets out the those rights and liabilities are relevant issues and the results of the replicated if the original paper B/L survey. October-December 2018 October-December 19 ICC HQs News

The survey has been coordinated by keep pace with new developments. what needs to change in the law to London based Clyde & Co consultant We were therefore delighted to work support digitalisation in this area, Stephen Tricks and partner Robert with the ICC Banking Commission we first need to know what the law Parson. on this important report.” is today.

Stephen Tricks comments: “As Sean Edwards, lead of the legal work- The Clyde & Co report has given technology continues to disrupt stream of the ICC Digitalisation us a tremendously valuable starting industry it is essential that the law can Working Group adds:” To work out point.” ICC Banking Commission signs partnership with Global Credit Data to boost scope of Trade Register The ICC Banking Commission has indispensable tool for the global The ICC Trade Register was announced a long-term agreement banking system and policymakers, established in 2011 and has since with Global Credit Data (GCD), enhancing market understanding grown to include 22 member banks, an association owned by banks and of the nature of trade finance and covering over US$10.5 trillion of exposures and more than 20 million trade finance transactions.

The trade finance products included in the register have traditionally been letters of credit, loans for import/ export and performance guarantees.

The next edition, to be released in the first quarter of 2019, with Boston Consulting Group as a strategic partner, will expand to include supply chain finance products and home to the world’s largest database contributing to informed policy export finance provided by non- of bank defaults, to strengthen and regulatory decision-making. OECD export credit agencies. analysis within the market-leading This agreement with GCD, which Philip Winckle, Executive Director ICC Trade Register. is at the forefront of data collection and analysis, will allow us to further of GCD, said: “Extending our work The ICC Trade Register is one of develop and evolve the ICC Trade with the ICC Banking Commission the few comprehensive sources to Register as the go-to source for on this market-leading project will provide an objective and transparent quality and trusted data, which can improve the quality of trade finance view of the credit risk profile and be used for robust analysis.” credit data for the market and for our characteristics of trade and export members. This will help banks better finance. GCD will now manage and David Bischof, Senior Policy Manager understand the risks they take and oversee the collection of credit- at the ICC Banking Commission, better comply with regulatory rules related data from ICC Trade Register added: “There is a direct and critical such as the Basel Framework.” member banks. The cooperation link between the availability of timely will allow ICC and GCD to provide and affordable trade finance and the The latest ICC Trade Register, more granular data and detailed conduct of international trade. Since released in February 2018, revealed benchmarking reports to members. its inception, the ICC Trade Register the low-risk nature of transactions has been instrumental in promoting that support global trade, and Krishnan Ramadurai, Chair of the dialogue and advocacy around trade confirmed that trade finance ICC Trade Register project, said: finance as an asset class in its own products continue to present banks “The ICC Trade Register is an right.” with low levels of credit risk. Record-low hijackings yet danger persists in Gulf of Guinea, shows latest global piracy report A total of 156 incidents of piracy and nine months of 2018 compared to attacks, 13 vessels fired upon and armed robbery against ships were 121 for the same period in 2017. four vessels hijacked—although no reported to the ICC International vessels were reported as hijacked Maritime Bureau’s (IMB) Piracy The 2018 figure is broken down as in the third quarter of 2018. This is Reporting Centre (PRC) in the first 107 vessels boarded, 32 attempted first time since 1994 when no vessel October-December 2018 October-December 20 ICC HQs News hijackings have been reported in two noticeable increase in the number of 2018, while two fishermen were consecutive quarters. of vessels boarded at the Takoradi reported kidnapped off Semporna, anchorage, in Ghana. Malaysia in September 2018. Nevertheless, incidents of this crime persist, with the number of crew members held hostage increasing in comparison to the same period in 2017—from 80 incidents to 112 by the third quarter of 2018.

Pottengal Mukundan, Director of IMB, said: “While the record low number of hijackings in the second and third quarters of 2018 is of course to be celebrated, incidents of maritime piracy and armed robbery remain common. ICC urges governments to leverage the timely It is noted that 37 of the 39 crew Incidents in the remaining regions, data available from the IMB Piracy kidnappings for ransom globally including some Latin America Reporting Centre to concentrate have occurred in the Gulf of Guinea resources in these hotspots.” countries, border on low-level region, in seven separate incidents. opportunistic theft. Nevertheless, Shifting piracy trends in the Gulf of A total of 29 crew members were the IMB continues to encourage all Guinea kidnapped in four separate incidents masters and crew members to be off Nigeria—including a 12-crew aware of these risks and report all Statistically, the Gulf of Guinea kidnapping from a bulk carrier off incidents to the 24-hour manned accounts for 57 of the 156 reported Bonny Island, Nigeria in September PRC. The Centre will ensure that incidents. While most of these 2018. incidents have been reported in and reported incidents are relayed around Nigeria (41), the Nigerian In other world regions, incidents without delay to the appropriate Navy has actively responded and of piracy and armed robbery are response agency and will liaise dispatched patrol boats when comparatively seldom. No new with the ship, its operators and the incidents have been reported incidents have been reported off the response agency until the vessel is promptly. There has also been a coast of Somalia in the third quarter deemed safe. Global Supply Chain Finance Forum takes decisive step in clarifying Supply Chain Finance Following the release of Standard International and the International recognised expert in the field, a key Definitions for Techniques of Supply Trade and Forfaiting Association, player in the drafting process of the Chain Finance in 2016, the Global this industry consortium will definitions document and in the Supply Chain Finance Forum is leverage its collective footprint to Wolfsberg/ICC/BAFT Trade Finance taking another decisive step in aid financial institutions, accounting Principles, and a prime mover in clarifying Supply Chain Finance. firms, rating agencies and regulators the efforts to include supply chain in gaining clarity and consistency finance within the scope of the ICC on the various terms and Trade Register, Hausherr was elected techniques used. The forum for his vast ability to lead the forum will remain alert and react to towards achieving its goals and major market developments in implementing its fresh action plan. all relevant matters for supply chain finance. Supply chain finance is one of the fastest growing trade products The forum is invigorated with yet evolution into rules for supply the recent election of Christian chain finance is premature at this Hausherr, European Product stage. While we observe increasing Comprised of ICC, BAFT, the Euro Head of Supply Chain Finance at adoption of the terminology, financial Banking Association, Factors Chain Deutsche Bank as its Chair. As a institutions do not speak the same October-December 2018 October-December 21 ICC HQs News

language when it comes to supply in the accounting treatment of some need to engage and align with other chain finance. Recent developments techniques have also underlined the industry stakeholders.

Unique business initiative to support reform process of multilateral rules-based system launched ICC, supported by the World business to be a constructive partner deal with emerging challenges. The Trade Organization (WTO), the to the on-going intergovernmental voice of the private sector should be Organisation for Economic Co- negotiations through actionable heard in that conversation. I warmly operation and Development (OECD) recommendations on reform. welcome this initiative.” and regional development banks, have announced a new initiative to host a global consultation to support multilateral trade reform.

Launched on 10 October in Bali, Indonesia by ICC Secretary General John W.H. Denton AO and WTO Director General Roberto Azevedo, the new Global Dialogue on Trade platform will provide concrete support to the on-going intergovernmental approach to improving the multilateral rules- based trade system.

The initiative – digitally enabled More than 100 businesses – and managed by ICC – will convene The digital platform provides an representing a diverse range of open dialogue among multilateral unprecedented opportunity for institutions, think tanks and users of the multilateral rules-based sectors and geographies – along businesses from around the world. trading system to drive positive with a wide range of think tanks had Following an initial call for debate change and ensure that solutions been invited to join the platform. themes, the platform will seek input proposed to make the system fit-for- The Global Dialogue on Trade was from users to assess elements in the purpose are heard.” launched at a press conference on existing framework that work well, the sidelines of the 2018 Annual WTO Director-General Roberto elements that should be improved Meetings of the International Azevedo said: and what should be addressed to Monetary Fund and World Bank help the WTO effectively deal with “These are challenging times for Group took place in Bali. the challenges and disruptions of the trade. Escalating tensions between 21st century. major economies risk undermining The call for themes closed on 31 the global economic recovery and the October, followed in November by ICC Secretary General John W.H. multilateral trading system itself. So the platform’s first three privately- Denton AO said: we can’t just cross our arms. We need held, digital debates on selected “The business community is at the everybody who believes in the system themes. Recommendations for forefront of international commerce as a force for good to speak up. This reform will channel into the ongoing and should contribute to shaping is particularly crucial in the context intergovernmental processes and the rules that govern cross-border of the debate about the future of the will be made publicly available on the trade. The Global Dialogue on Trade, WTO and how it could potentially platform at: globaldialogueontrade. launched on 10 october, enables be strengthened and improved to org ICC and WTO announce new Small Business Champion The ICC and the World Trade Business Champion. This follows Award” aimed at encouraging small Organisation (WTO) announced the successful completion of the businesses around the world to begin at the Public Forum on 4 October Institute’s proposal, under the Small trading internationally. that the Institute of Export and Business Champions Initiative, to International Trade is the second run a competition entitled the “Open During a session at the Public Forum, company to be recognized as a Small to Export International Business 12 finalists pitched their “Export October-December 2018 October-December 22 ICC HQs News

Action Plans” to a panel of judges in international trade. I would world has been both humbling and for the chance to win a package of also wish to congratulate all the truly inspirational. Thank you to the financing and assistance from the finalists for the great ideas they have WTO and ICC for supporting it.” Institute of Export and International presented today.” Trade designed to help the winning small business implement their Chris Southworth, Secretary export plan. The competition was General of ICC United launched in May and attracted plans Kingdom, said: “Making from small businesses worldwide. world trade more inclusive The Institute provided support, means enabling more SMEs webinars and online tools to help to trade —like the 12 finalists the small businesses put together a of this International Business “global growth action plan”. Award—and expand into global markets. In helping SMEs The initiative is delivering projects Lesley Batchelor, CEO of Open to design and implement global growth with a range of business including Export and Director General of the plans, the Institute of Export and Argentina’s Chamber of Commerce Institute of Export and International International Trade is playing an and Services and Mercado Libre, eBay Trade announced that the winner important role in bringing the and Brazil’s National Confederation of the competition was Dytech Ltd indisputable benefits of open trade to of Industry. Once the projects have from Zambia. a wider cross-section of companies been successfully completed, the Deputy Director General Yi said: and workers. Congratulations.” businesses will be recognized as ICC- “I would like to congratulate the Lesley Batchelor, CEO of Open Institute of Export and International WTO Small Business Champions. Trade on the completion of their to Export and Director General project. Developing the skills of of the Institute of Export and Google was recognized as the SMEs and giving them the necessary International Trade, said: “Running first Small Business Champion guidance is essential if we want this competition and working with in December 2017 following the them to increase their participation inspiring MSMEs from around the successful completion of its proposal. ICC calls on governments to do more to maximise the potential of digital trade for inclusive growth The World Trade Organization’s global markets, often for the first those in the traditional economy. (WTO) 2018 Public Forum kicks time in developing countries. If Likewise, while women account for off in Geneva, Switzerland in the business and government work only 25% of entrepreneurs in China, last week of September under together with a solutions-oriented they have founded a whopping 55% the theme ‘Trade 2030’. Ahead approach to technology, I believe we of new online businesses. of discussions, the International can maximise the potential of digital Chamber of Commerce (ICC) has trade to spur more inclusive growth.” A recent Google video competition underscored how new technologies taking place within ICC and WTO’s are contributing to making world Far from posing a threat, new joint Small Business Champions trade more inclusive and fuelling technologies are currently being initiative showcases SMEs around progress towards the United Nations’ deployed worldwide to advance the world that explain in their own (UN) Sustainable Development global development goals. words how digital technologies are Goals (SDGs). Potential for inclusive growth – helping them connect with clients, promote their products and balance ICC Secretary General John W.H. Just as digital technologies have Denton AO said: connected people, trends and ideas their books. from around the world, e-commerce Governments must do more – “New technologies are helping gives many businesses access to Ensuring digital trade fosters transform world trade for the better, global markets for the first time— inclusive growth relies on an economy but there’s a current tendency to view with some of the biggest gains going having a solid policy environment their development through a negative to groups that have too often been and effective digital strategy in place. lens. What is frequently missed in this underrepresented in world trade. assessment is how small businesses, As governments map out ways to women traders and entrepreneurs Data from eBay shows that SMEs that foster the local benefits of digital are using digital technologies in use online platforms are more than trade, ICC encourages the following unprecedented numbers to access five times more likely to export than steps: October-December 2018 October-December 23 ICC HQs News

Develop global e-commerce rules – technologies but governments should the location for future investment or Navigating the myriad national rules start by being future-orientated. This inclusion in such value chains. Local and regulations covering digital trade means equipping populations with data storage regulations, for instance, makes it difficult for companies— the skills needed to innovate and can lead to higher costs for the local especially those small and medium- leverage digital tools, promoting companies—especially SMEs—that sized enterprises (SMEs) that investment and market entry to depend on technologies such as lack the resources of their larger attain greater network coverage and cloud computing. counterparts—to take advantage of driving interoperability across policy the opportunities. A new common and regulatory landscapes. Avoid imposing custom duties on framework of legal standards for electronic transmissions at national digital trade is needed to help SMEs Remove artificial constraints and borders – Electronic transmissions leverage digital technologies to reach unjustified localisation measures are typically time-sensitive and global markets. – Creating artificial constraints to need to flow seamlessly across companies’ global supply and value borders to be efficient. To stop these Take a holistic approach to developing chain planning through data or server transmissions at borders to impose policy frameworks – There is no one localisation restrictions not only custom duties would unduly disrupt size fits all approach to nurturing increases the costs of doing business; basic business processes that are the development gains of digital it diminishes the attractiveness of inherent in electronic delivery. ICC statement on US announcement on Universal Postal Union ICC has issued the following Secretary General John W.H. Denton “That said, the US administration’s statement in response to the US AO said: decision to serve notice on a possible Administration’s announcement that UPU withdrawal highlights the “The global postal system plays a it has served notice to withdraw from central role in enabling global trade importance of ensuring that global international postal rate system. governance systems are modernised in line with the realities of today’s economy. There is, quite clearly, an urgent need to update the international postal rate system to address inefficiencies that have been amplified by the growth of e-commerce.

The International Chamber of flows – more so now than ever with We urge all governments to engage the growth of e-commerce. We are Commerce – the world’s largest constructively in the months ahead therefore naturally concerned by business organization representing to agree on reforms to the relevant any potential fragmentation of the UPU instruments to provide a level over 45 million companies Universal Postal Union system. Being worldwide – has issued the following able to make last-mile shipments playing-field for all businesses and statement in response to the US to consumers efficiently is vital to enhance the security and integrity Administration’s announcement that support the growth of e-commerce, of the global postal delivery system. it has served notice to withdraw from which has tremendous potential to Business is ready to play its full part international postal rate system. make world trade more inclusive. in informing any such process.” October-December 2018 October-December 24 Bangladesh Economy

Bangladesh's General Election held: Massive victory for Ruling Party The led alliance won the third consecutive term. There Hasina was first elected prime the 11th parliamentary elections with was overwhelming support to Sheikh minister in 1996. The country has a massive victory. This is for the first Hasina and her party for nation's achieved more then 7.00 GDP. time in Bangladesh that all parties impressive economic growth over Bangladesh has achieved lower 11th JS Polls the alst couple Middle Income country status. Since of years. Awami she took power in 2008, Bangladesh's Awami League, allies 288 League party per capita income has seen a Awami League 259 won 288 out of threefold increase. The country's (Ershad) 20 300 seats, the gross domestic product (GDP) stood Workers Party of Bangladesh 03 result of two at USD 250 billion in 2017 and it Jatiya Samajtantrik Dal (Inu) 02 seats withhold. clocked a growth rate of 7.28 per cent Bikalpa Dhara Bangladesh 02 The opposition last year. Jatiya Party (Manju) 01 alliance led Bangladesh Tarikat Federation 01 by prominent The garment industry has emerged BNP, allies 07 lawyer Dr. as one of the main pillars of the BNP 05 Kamal Hossain economy, providing jobs to 4.5 Gono Forum 02 won only seven million people. Hasina has been Independent 03 seats. In general praised for cracking down on Islamist the election was Election held at 299 constituencies of 300. extremists after five homegrown peaceful. Result of one seat suspended. terrorists stormed a Dhaka cafe in 2016, killing 20 hostages, including participated in the election held on Hasina was one Indian. She also launched trials elected the president of the Awami 30 December 2018. With this Awami of the powerful Islamist opposition League in 1981, and since then she League will form the government over crimes committed during the has been the president of the party. with its President Sheikh Hasina for 1971 independence war. Bangladesh elected UNHRC member for 2019-21 tenure Bangladesh has been elected a the promotion and protection of member of the United Nations human rights around the globe Human Rights Council (UNHRC) and for addressing situations of for the next three years in an election human rights violations and make that took place in New York on recommendations on them. October 12. Bangladesh bagged 178 votes in the election where It has the ability to discuss all the members of the UN General thematic human rights issues and Assembly voted. Bangladesh will situations that require its attention serve as the UN rights body member throughout the year. It meets at the for the 2019-21 tenure. UN Office at Geneva. The Council Last time, Bangladesh served is made up of 47 United Nations the UNHRC as a member from Member States which are elected 2015 till 2017. The Human Rights by the UN General Assembly. The Council is an inter-governmental Human Rights Council replaced the body within the United Nations former United Nations Commission system responsible for strengthening on Human Rights. Bangladesh to import power directly from Nepal & Bhutan India has revised its two year old Nepal, Bhutan and other neighboring this revision, the guideline issued Cross-Border Trade of Electricity countries using India’s transmission in 2016 prohibited direct imports guideline enabling Bangladesh to lines. The guideline was published of power using Indian terrain. import electricity directly from on December 18, 2018. Prior to Now, Bangladesh will get a chance October-December 2018 October-December 25 Bangladesh Economy

to import power directly from the bilateral agreements. However, no recent past, the Nepalese Energy neighboring countries like Nepal and neighboring countries would be able Minister had an exclusive interview Bhutan using Indian transmission to trade electricity within themselves with Energy Bangla while he was infrastructure. using the territory of India, the visiting Bangladesh. He then said that the Indian policy was a major Recently, Bangladesh signed a MoU earlier version of the policy said. impediment towards commencing with Nepal to import power. Besides, the power trade between Bangladesh Bangladesh has taken initiatives to and Nepal. invest in hydropower generation in Nepal. Bangladesh now has to The Joint Steering Committee of sign an agreement with India to India and Bangladesh have had use the transmission lines in India. several meetings on the issue of Bangladesh will have to pay the importing power from Bhutan and regular wheeling charges once it will Nepal, or any other neighbor, via commence importing power using India as part of regional cooperation. transmission lines in India. Bangladesh and Nepal repeatedly According to the earlier version of The revised guideline of India’s Cross- requested India to revise the policy to the guideline called “Cross-Border Border Trade of Electricity says two ease the power trade. On December Trade of Electricity” (5th December, separate countries can purchase 3-4, 2018, there were meetings of the 2016), the section 3.1 says that India electricity from each other, which joint working group and the joint will be able to trade electricity with India will participate in or approve steering committee in Kathmandu, its neighboring countries under by way of tripartite agreements. In Nepal. ‘US-China trade war helps Bangladeshi RMG on top’ : AI survey The latest survey published by In Southeast Asia, the popularity of of North American and European the Asia Inspection (AI), a Hong Vietnam and Cambodia is confirmed buyers on China has actually Kong-based global inspection by the double-digit growth in the increased in 2018 compared to the and accreditation body, said that third quarter of 2018. Meanwhile, a previous year. Bangladesh is becoming a more notable portion of popular apparel sourcing destination companies working for western retailers. in the cost-sensitive textile sector has Bangladeshi apparel products are mentioned of getting more popular for ongoing plans to expand trade war. The latest AI report titled their sourcing ‘Global Sourcing Trends: Embattled to other Asian China vs. Regional Competition,’ manufacturing which was released on October 4, said hubs such as that geographical diversification of Bangladesh. sourcing is underway which is driven by the need for cost optimization that The report also said predates the current tariff battles. that, “So far, the manufacturing giant China displays On the micro level, Chinese Among the respondents of the resilience amid the trade escalation, businesses appear to be taking a AI mid-year survey, up to three- and remains confident in its status as somewhat relaxed attitude towards quarters of businesses said they a top sourcing destination.” Indeed, the trade war: among the survey were already looking for suppliers the findings of the AI mid-year respondents, only 36 percent of the in new countries or had plans to do survey indicate that China remains Chinese companies said they felt so in 2018 and some of China’s long- among the top 3 sourcing countries affected by new US-China tariffs standing competitors are emerging for over 90 percent of respondents compared to almost 60 percent in as their top choices. worldwide, while the dependence the US. Bangladesh most gender equal country in South Asia For the fourth time in a row, ensuring gender equality, achieving among 149 countries in the world, Bangladesh held its top most position 48th rank. The country has slipped but is still ahead of all other among the countries of South Asia in only one notch to the 48th position countries in the continent except October-December 2018 October-December 26 Bangladesh Economy the Philippines, according to World said the report. Its South Asian The report praises Bangladesh in Economic Forum’s ‘The Global neighbours on the index are Sri terms of political empowerment for Gender Gap Report 2018’ published Lanka on 100th position with 0.676 ‘recording progress on closing its on December 17. points, Nepal on 105th with 0.676 political gender gap’ but it adds the points India on 108th with South Asia country is experiencing ‘a widening 0.665 points while Pakistan gender gap in terms of labour force Overall Overall was at the bottom (148th) participation’. Country rank score scoring 0.550 point, ahead of only war-torn Yemen. Earlier in a report in September, Bangladesh 48 0.721 Iceland tops the list, followed the WEF said Bangladesh made Sri Lanka 100 0.676 by Norway, Sweden, Finland, improvements in creating equal Nepal 105 0.671 Nicaragua, Rwanda, New opportunities for legislator, senior Zealand, the Philippines, India 108 0.665 official and manager roles, as well as Ireland and Namibia. professional and technical roles. Maldives 113 0.662 Bangladesh has closed over 72 The Global Gender Gap Report Bhutan 122 0.638 percent of its overall gender benchmarks 149 countries on Pakistan 148 0.550 gap while Pakistan managed their progress towards gender under 55 percent. “With the “Bangladesh consolidates its position exception of Bangladesh and Pakistan parity across four thematic as the region’s top performer and at either end of South Asia’s regional dimensions: Economic Participation breaks into the global Index top 5 table, gender parity outcomes are and Opportunity, Educational on the Political Empowerment sub somewhat homogenous across the Attainment, Health and Survival, index this year, recording progress region,” says the report. It also warns and Political Empowerment. In on closing its political gender gap, that a widening gender gap in terms addition, this year’s edition studies despite a widening gender gap in of labour force participation remains skills gender gaps related to Artificial terms of labour force participation,” in Bangladesh. Intelligence (AI). $850m WB and ADB loan for primary education, health & fisheries projects Two multilateral agencies will The scheme will benefit 18.6 million will build eight more reproductive provide $850 million loans for students, about 340,000 teachers healthcare centres and 24 primary primary education, urban health and more than 65,000 schools healthcare centres. improvement and marine fisheries under primary and mass education The $240-million WB loan will enhancement projects. Theministry. The government will give help fisheries department and World Bank (WB) and the Asian $13.2 billion and the rest $1.38 Social Development Foundation Development Bank (ADB) signed on billion will be borne by development (SDF) improve management and October 27 three separate agreements partners like the ADB, the WB, production in marine and coastal with the economic relations division UNICEF and the European Union. fisheries and aquaculture. The (ERD) in Dhaka. The ADB will disburse loan over five years to 2023. sustainable and marine fisheries ERD senior secretary Kazi Shofiqul project will help improve fisheries Under the $110-million additional Azam, WB acting country director management systems, infrastructure ADB loan, city corporations and Dr Zahid Hussain and ADB country and value chain investments. some municipalities will work to director Manmohan Parkash inked improve access to urban primary According to the WB, the scheme the loan deals. The ADB will provide healthcare services through public- will also encourage private- $500 million in loans for improving private partnership. It will support sector investment to increase the primary education and $110 million the Urban Primary Healthcare availability and quality of marine for urban primary healthcare Services Delivery Project approved fish. In 16 coastal districts, it will services. On the other hand, the WB in 2012. set up community co-management will lend $240 million to develop associations with fishing marine and coastal fisheries and The loan will cover the cost of a communities, enabling them to aquaculture. five-year extension to help the adopt supplementary and alternative government strengthen local health livelihoods. The government will work to systems and continue to expand upgrade primary education under contracts of service providers. It While empowering fishing the $14.7 billion Primary Education expands coverage to an additional communities, especially women Development Program (PEDP)-4. city and 10 municipalities, and through skills development and October-December 2018 October-December 27 Bangladesh Economy

nutrition awareness, the project will cent interest rate for its loan. The cent interest with a maturity of 25 also establish 100 model fishing repayment period of the loan will be years for its two separate loans. The villages. The WB will charge 0.75 30 years with a grace period of five grace period of the loans will be five per cent as service fee, 1.25 per years. The ADB will charge 2.0 per years. Government signed $500 million WB deal to improve livestock and dairy production dairy, egg and meat products, the and emission-saving practices in project will help improve nutrition the sector and will address issues for citizens, especially children, related to food safety, environmental pregnant women, and new mothers. pollution, anti-micribial resistance and animal welfare. The project “Through improving market linkages will directly contribute to the and ensuring good practices, national climate change policies and Bangladesh can increase livestock commitments. production significantly,” said Dandan Chen, Acting World Bank The agreement was signed by Country Director for Bangladesh, Monowar Ahmed and Dandan The government of Bangladesh on Bhutan, and Nepal. “Growth in Chen on behalf of the government December 19 signed a $500 million livestock productivity potentially of Bangladesh and the World financing agreement with the World leads to growth in jobs for women, Bank, respectively, at the Economic Bank to improve livestock and dairy youth, and other vulnerable groups.” production as well as provide better Relations Division. market access to 2 million household The project will help small-scale The credit is from the World farmers and small and medium-scale livestock farmers—half of whom Bank’s International Development agro-entrepreneurs. are women—adopt improved Association (IDA), has a 30-year agricultural technologies. It term, including a five-year grace The Livestock and Dairywill support basic livestock period, and carries a service charge Development Project will help infrastructure, including processing of 0.75 percent and an interest of stimulate private sector investment and marketing as well as value 1.25 percent. The World Bank and sustainable, development of change development. It will help the was among the first development livestock value chains in Bangladesh. government strengthen the coverage partners to support Bangladesh It will help address the country’s of livestock insurance aimed at following its independence. Since current shortages in eggs, dairy, protecting the assets and livelihoods and meat production. By 2021, of the small and medium producers. then the World Bank has committed the country will likely face annual over $30 billion, mostly in grants and shortages of 1.5 billion eggs and In Bangladesh, climate change interest-free credits to Bangladesh. nearly 6 million tons of milk. affects livestock production. The Bangladesh currently has the largest By enhancing the availability of project will promote climate resilent IDA program totaling $12.4 billion. $300 m from WB to improve transparency and efficiency of major cash transfer programs for the poorest and vulnerable The government has signed a The cash transfer modernization Country Director for Bangladesh, $300m financing agreementproject will help the Department of Bhutan, and Nepal Qimiao Fan with the World Bank (WB). The Social Services (DSS) modernize said: "An efficient, automated, and agreement was signed on 28 Bangladesh's four major social transparent social protection service October , at the Economic Relations protection programs, using cash delivery system is critical to build Division, by Mahmuda Begum transfers, by improving beneficiary resilience and create opportunities and Qimiao Fan, on behalf of the targeting, program administration, for the poorest people.” government of Bangladesh and the and benefit payments. The programs WB, respectively. The deal aims provide allowances for: the elderly, He said the: "World Bank is helping to improve the transparency and widows, deserted and destitute the government build common efficiency of Bangladesh’s major cash women, the financially insolvent, digital platforms to better administer transfer programs for the poorest and the disabled. It also provides safety net programs. “This will and vulnerable— including for the stipends for disabled students. These help reduce administrative costs elderly, widows, and people with programs, collectively, will reach and errors by identifying the most disabilities. about 6.5 million people. World Bank vulnerable people with greater October-December 2018 October-December 28 Bangladesh Economy accuracy and transferring cash in of its cash transfer programs— linked to the Finance Division's a timely manner." In fiscal year and the project will help further centralized payment platform, and 2018, Bangladesh spent about strengthen case management and use a network of banking agents. $5.8bn – or about 2% of its gross payment processes. The WB said that domestic product (GDP) – on to accurately identify the recipients The credit is provided by the social protections; improving the of cash transfers, the project will International Development efficiency of these programs will help help integrate DSS's management Association, the WB's concessional Bangladesh to use public resources information system with the lending arm, which provides grants more effectively. Bangladesh Bureau of Statistics' and zero-interest loans. The credit National Household Database. For has a 38-year term, including a six- The DSS has already started more secure and accessible payments year grace period, and a service digitizing the records of beneficiaries to beneficiaries, the system will be charge of 0.75%. ADB approved $200m to upgrade rural road million and a regular loan of $100 after the date of construction on a million. The government will provide pilot basis. the remaining $85.31 million. The release said only about 40 The release said about 80 percent percent of the rural population has of the country’s population lives access to all-weather roads, and in rural areas and depends on these roads make up only 28 percent agriculture for its livelihood. But, of the total length of rural roads in Asian Development Bank (ADB) has the sector is held back by several the country. Guided by the Seventh approved a finance package of more constraints, including insufficient Five Year Plan, the government has than $200 million to improve the rural transport, inadequate market embarked on an effort to improve rural road network for 51.5 million infrastructure, and more intense the country’s rural road network, people in Bangladesh. “Rural roads floods and cyclones related to climate aiming to increase the percentage of are critical for uplifting country’s change. rural roads classified as good during agriculture sector, which accounted the period of the Five Year Plan from for more than 15 per cent of the ADB’s project will support this by improving about 1,700 kilometers of 43 percent in 2016 to 80 percent in country’s gross domestic product rural roads to all-weather standards 2020. in 2015, and employs-directly in 34 districts, it said, adding that or indirectly-about half of the The project will provide training to selection of roads will be taken into workforce,” said ADB Senior Rural the Local Government Engineering consideration on basis of factors Development Specialist Lee Ming Department on road and financial such as population size, agricultural Tai. potential, the number of farms and management, road safety, climate resilient design and construction, ADB’s rural connectivity commercial establishments, and economic potential. improving road users’ awareness, improvement project will support and enhancing women’s skills on the government’s current Seventh Those roads damaged by flashfloods road construction and maintenance. Five Year Plan, which focuses on in 2017 will be prioritized to be boosting rural incomes as well upgraded, the release also added. An ADB technical assistance grant as agriculture’s contribution to The climate resilient designs will also of $1 million will support these economic development according to be adopted incorporating features activities, the release said, adding ADB media release on 7 November. such as elevated paving, drainage, that more than 2,400 women were The total cost of the project, which road foundations, and earthworks consulted in the project area during will be implemented by November to significantly reduce maintenance. project design and the project will 2023, is $285.31 million. ADB will The roads will be covered under give them more access to economic provide a concessional loan of $100 contractual maintenance for 5 years opportunities and services. IFC’s efforts for ‘cleaner textile sector’ pay dividends in Bangladesh Aimed at popularising the efficient clean textile campaign is gaining in and cleaner garment manufacturing popularity and momentum since practices that would help reduce its inception. The second edition energy, water, and chemical use of the Partnership for Clean Textile across the textile value chain, the (PaCT II) has reportedly concluded October-December 2018 October-December 29 Bangladesh Economy

its first year with seven organisations in the world, and apparel exports Jeanologia and Omera Solar – have joining the campaign along with the from the country account for around joined the campaign. Started in apex body of Bangladesh’s garment 80 per cent of the Bangladesh’s total January 2018, with support from the sector, the Bangladesh Garment exports. governments of Denmark, Australia Manufacturers and Exporters As per an IFC statement, five textile and the Netherlands, the PaCT II Association (BGMEA). It may be brands – VF Corp, PUMA, Levi seeks to save 10.9 billion litres of mentioned here that Bangladesh is Strauss & Co, TESCO and GAP water and 1.3 million megawatt the second largest apparel exporter Inc and two technology providers hours of energy every year. IFC invests $20m in Omera Petroleum IFC, a member of the World Bank kerosene, wood, and other hazardous Bangladesh is a low-income Group, has invested $20 million as a cooking fuels, and allow the limited International Development long-term loan in Omera Petroleum reserves of natural gas to be diverted Association (IDA) country. IFC's to help the company double its to power generation and industries. country strategy for 2017-21 - while capacity and increase the availability addressing other key development of liquefied petroleum gas (LPG), Declining natural gas supplies gaps - focuses on increasing access especially in rural areas. The IFC have prompted the Government to electricity, and diversifying energy loan is part of its project to double its of Bangladesh to promote LPG as sources. This project will enable the capacity and make LPG available in a major source of primary energy. end users to switch to a much cleaner nearly all sub-districts of the country. The government aims to supply and efficient fuel. This will expand access of LPG LPG as cooking fuel for 70 per cent Access to energy and diversification to 350,000 additional households of households within the next three of fuel are two critical bottlenecks in (around 12 per cent of the total years. It has also been promoting LPG the growth trajectory of Bangladesh. market potential) over the life of the usage in vehicles as an alternative to In the last five years, IFC has invested loan. It will also help reduce green compressed natural gas, and bulk about $800 million to remove these house gas emissions by substituting LPG for industrial purposes. obstacles. DataSoft’s New Venture- Now in Nepal!! management information system microfinance institute with about (MIS) solutions platform. 5500 MFI branches having 10.26 million unique borrowers with a Finsoft CEO Mr. Yuvraj Thapa portfolio valued more that 1.6 billion and DataSoft Director and COO DataSoft signs with leading fintech USD. company Nepal Finsoft Company M Manjur Mahmud signed the Ltd to implement microfinance core agreement from both party. Experts believe , this is the first banking solution www.microfin360. This agreement gives Finsoft the large scale Software product signing com. Thirty-four Microfinance opportunity to automate it’s members between Bangladesh and Nepalese Institutions (MFIs) have come with cloud based microfin360. It may companies and this will open up together to invest in an IT company— be mentioned that microfin360 is the possibilities to collaborate between Nepal Finsoft Limited—to launch premium cloud based platform with two neighbors even in bigger and a world-class core banking and partners in 11 countries and 127 complex product and services . Japan's Sojitz in $500m tie-up with Energypac Sojitz Corporation, one of the of land. The joint venture would Sojitz has placed a proposal seeking leading business groups in Japan, is initially invest $500 million and it 1,000 acres of land to establish a keen to make massive investment would go up to $2 billion phase by service-oriented industrial park, in Bangladesh's energy and phase. The corporation is set to sign including a port at the Mirsarai infrastructure sectors and industrial a memorandum of understanding economic zone. Development of park. It has already teamed up with (MoU) with the Bangladesh energy, infrastructure and industrial Energypac Power Generation Ltd, a Economic Zones Authority (Beza) on park was the key targets of the local conglomerate, and is seeking October 21 to start feasibility studies. company in Bangladesh. Sojitz is also to establish a port at the Mirsarai Sojitz Corporation has a long-term keen to develop businesses in various economic zone over 1,000 acres investment plan for Bangladesh. industries such as machinery, October-December 2018 October-December 30 Bangladesh Economy

The entrepreneur hopes to start the project implementation work within one and a half years after carrying out different feasibility studies. Energypac and Sojitz Corporation have already signed an MoU to implement the project.

Sojitz has been working in Bangladesh since 1951 and was the contractor of a number of projects, including the Sonargaon hotel and an integrated steel plant in chemical, medical, renewable mother vessels will anchor. The Chattogram. In the same year, the corporation opened liaison offices in energy, coal, food and textiles, said Chittagong Port can't provide the Dhaka and Chittagong but they were the executive member. service for bulk materials handling closed in 2004. On August 8, Sojitz, Sojitz's plan is to establish an due to a lack of technology and however, opened an office in Dhaka. infrastructure project to provide required space. Sojitz will provide The new Dhaka office will focus on services for handling bulk materials the service, easing the cost of doing promoting projects in the energy and through constructing a port, where business. social infrastructure sectors. BJMC and Futamura Chemical Ltd. Signed MoU on ‘Sonali Bag’ production A Memorandum of Understanding Mubarak Ahmad Khan, a scientific senior secretary of the ministry (MoU) was signed on October 2 advisor of BJMC and former chief Faizur Rahman Chowdhury, BJMC between Bangladesh Jute Mills scientific officer of Bangladesh Chairman Dr Md Mahmudul Hasan Corporation (BJMC) and Futamura Atomic Energy Chemical Ltd., a United Kingdom- Commission, based company, for producing invented the ‘Sonali Bag’ commercially. Sonali Bag Sonali Bag from is a biodegradable and environment- jute cellulose. friendly jute-made ploy bag. Primary Pilot BJMC Deputy Secretary AKM Plant (PPP) Tareq and Graeme Coulthard, for producing general manager of Futamura Sonali Bag Chemical Ltd., signed the MoU was set up at and a Non-disclosure Agreement Latif Bawani and the inventor Dr Mubarak Ahmad (NDA) on behalf of the respective Jute Mills in Demra. State Minister Khan, among others, were present at sides. Bangladeshi scientist Dr for Textiles and Jute Mirza Azam, the signing ceremony. Meghna bags $82m foreign loan for sugar plant Meghna Sugar Refinery Ltd, a “We will use state-of-the-art arm of the Islamic Development sister concern of Meghna Group technology and this will be the first Bank Group. of Industries, has managed an $82 Bangladeshi plant to produce invert Eastern Bank Ltd (EBL) will be million loan or around Tk 688 sugar here.” Kamal shared the info at facilitator, security agency and crore from a consortium of foreign a programme on November 26 when the group signed a deal with the accounts bank of the deal for the financial institutions to establish consortium at The Westin Dhaka. low-cost loan that will come with an a sugar refinery plant at Meghna The consortium includes German eight-year tenure. Kamal along with Economic Zone in Narayanganj. The financier DEG, Dutch development Hubertus Pleister, director and head company will produce around 4,000 bank FMO, Austrian development of corporate Asia at DEG; Steven tonnes of liquid and invert sugar— bank OeEB and the Islamic Duyverman, manager and head an edible mixture of glucose and Corporation for the Development of FMO Agribusiness Asia, FMO; fructose—every day, said Mostafa of the Private Sector (ICD), which is Ahmed Al-Akwaa, division head Kamal, chairman of the group. the major private sector development for portfolio and follow up at ICD, October-December 2018 October-December 31 Bangladesh Economy

and Ali Reza Iftekhar, CEO of EBL, He also sought support from the signed the deal at the programme. development partners for skills development of the new entrants Bangladesh has achieved miraculous that are added to the workforce development in the last 10 years, when it achieved a threefold growth every year. Peter Fahrenholtz, in gross domestic product, Md Abul ceremony. It was possible due to German ambassador to Bangladesh, Kalam Azad, principal coordinator the contribution of entrepreneurs, and Paban Chowdhury, executive for SDG at the Prime Minister's financial institutions and leadership, chairman of Bangladesh Economic Office, said at the deal signing he said. Zones Authority, also spoke. GSK Bangladesh to sell 82pc stake to Unilever British multinational Hindustan Unilever Ltd (HUL) in health drink Horlicks and other GlaxoSmithKline Healthcare (GSK) an acquisition valued at 3.74 billion nutrition products are sold by GSK Ltd will sell its 82 per cent stake pounds in India’s largest merger & Consumer Healthcare in which GSK in its Bangladesh subsidiary and acquisition deal in the consumer of the UK holds a 72.5 per cent stake other related brand rights for GSK’s goods segment. The boards of the — will now come under the fold of two companies HUL. have agreed for the two separate After the merger in India, GSK will deals in India and own approximately 5.7 per cent of HUL. The merger values GSK Bangladesh. Consumer Healthcare at Rs 31,700 Sources said GSK crore in total following completion is selling its food of the transaction expected by a year. Following the merger, the HUL’s consumer healthcare nutrition and refreshment food and refreshment business will activities in certain other countries to subsidiaries in Bangladesh and India to help mobilize money for exceed Rs 10,000 crore and become Anglo-Dutch company in Unilever, its 13-billion dollar buy-out of one of the largest businesses in India for which the former is expected to leading drug-maker Novartis’ stake and place it ahead of key competitors receive cash proceeds equivalent to in their consumer healthcare joint Britannia and Nestle. 566 million pounds. venture. GSK Bangladesh is a Dhaka GSK’s consumer nutrition business Stock Exchange listed unit. The Besides, GlaxoSmithKline Plc’s globally, comprising mainly malt- total consideration for the merger Indian arm GSK Consumer based beverages, fetched 550 million & acquisition in India is valued at Healthcare has decided to merge dollars last year and roughly 80 per around 3.1 billion pounds. Popular with Unilever’s Indian subsidiary cent of the sales came from India. Bangabandhu Hi-Tech City to create 5,250 new jobs About 5,250 new job opportunities got 2.75 acres of land while Amra Bangladesh Hi-Tech Park Authority. were expected to be created with Holdings received 3.50 acres, Bangabandhu Hi-Tech City, to be an investment of Tk 558 crore in Devnet Limited two acres, Spectrum established on 355 acres of land at the country’s first hi-tech park, Engineering Consortium Limited Kaliakair in Gazipur, was a flagship Bangabandhu Hi-Tech City, in two acres, Media Soft Data System project of the park authority. Gazipur as plots had already been Limited one allotted to more seven companies to acre, UY System set up their industries in the park. Limited one The companies received their plots acre and SB Tel for the next 40 years by signing an Enterprise 8.16 agreement at a function held at the acres. meeting room of Bangladesh Hi- Tech Park Authority in Dhaka on Earlier, on December 10. November 28, the SB Tel Under the agreement, 20.41 acres Enterprise of land were allocated to the seven also signed an companies. Of those, Data Soft agreement with October-December 2018 October-December 32 Bangladesh Economy

Energy costs to double by 2031: Jica Infrastructure Finance Fund promote green and energy-efficient Limited (BIFFL) at Bangabandhu technology as well as public private International Conference Centre in partnership (PPP) for sustainable the first weekof October. Finance infrastructure development in the Minister AMA Muhith inaugurated country. A BIFFL statement said the the expo as the chief guest. The convention provided a platform for BIFFL gave a cheque worth Tk 64 the participants to share experience crore to Muhith as dividend. from global best practices and collate Energy costs in the industrial and recommendations for policymakers transport sectors will stand at $20 Hirata said efficient use of energy to formulate enabling policies and billion by 2031, double that of in Bangladesh is very crucial as the regulations towards fostering the 2021, said Hitoshi Hirata, chief country has been importing power green movement in Bangladesh. representative at the Bangladesh alongside going for low-cost natural office of Japan International gas-based electricity generation. To The BIFFL has been organising the Cooperation Agency (Jica). Jica minimise costs, the power tariff has convention and expo as a part of its has been assisting Bangladesh in also been increased, he said. The Jica nationwide promotion of widespread efforts to cut energy cost which is representative said energy-efficient usage of energy-efficient and very crucial for the country's future machines have to be set up in environment-friendly technology development, he said. industries, something for which Jica in energy intensive industrial sector has been assisting Bangladesh for the and infrastructure development Hirata was addressing the last couple of years. Hirata said Jica has work that will lead to savings in launching of the three-day “Green provided Bangladesh $100 million power and energy. & PPP Convention and Expo 2018” whereas the demand was $1 billion. organised by state-run Bangladesh The BIFFL organised the expo to Source :The Daily Star Local indigo goes global Indigo, which reminds of an episode indigo planters, who forced farmers British India and to the thousands of cruelty during the British colonial to grow indigo for the world market, of farmers in Rangpur who cultivate rule, is being farmed once again and cultivation of indigo began to now with pride, dignity and love and the famous blue has recently found disappear from the Bengal since the this time with a big smile.” its way to the US from Bangladesh. movement in 1859-62 and became Living Blue, which began its journey Last month, one tonne of indigo dye extinct for more than a century, 10 years ago to produce indigo and was shipped to the US by Living Blue, according to Banglapedia. handmade textiles, found a buyer a firm co-owned by Care Enterprise for the natural dye in 2013. The next Inc and Nijera Cottage and Village year its local sales rose 20 percent Industries. to 240 kilogrammes and the social “This appears to be the largest enterprise made its way to the global recorded export of the indigo dye market for the first time. Living Blue from Bangladesh to the world since exported 15 kilogrammes of the item the 1860s,” said Mishael Ahmad, in 2014, according to the company, manager of Living Blue. The social which has its own atelier in Rangpur. business entreprise buys indigo Shipment halved the following year from growers in the northwest only to rise to 21 kilogrammes in district of Rangpur to make dye with 2016. The volume of export rose to the objective to enable growers to 35 kilogrammes and the local sale to generate more income. 271 kilogrammes in 2017, Ahmad Its cultivation has been revived said. Living Blue started with 200 “This is a big achievement for us in recent decades by some non- growers and the number of farmers, and our farmers. This shipment will governmental organisations to mostly landless, rose over time. The enable farmers to earn more by enable us to make a breakthrough production of indigo also rose. in the major markets of indigo.” catering to the global demand for the Marked by resistance of Bengal natural dye. “Living Blue dedicates As the stock built up, the company farmers against the oppressive indigo the watershed moment to all indigo kept its indigo production halted production system and European farmers who were exploited during in 2017 and 2018. “We were trying October-December 2018 October-December 33 Bangladesh Economy

to find a big buyer and at last got Living Blue is now considered commercial purpose appears to have one,” Ahmad said. Following the globally as one of the very few begun in the 18th century. Indigo shipment, Living Blue has already producers of authentic, true Bengal production and its export was a started working with growers to Indigo dye, according to Ahmad. booming business in the early part of cultivate indigo next year. Ahmad said farmers in the northwest the 19th century. district had been growing indigo The social enterprise now works with even before Living Blue started But it fell in the 1840s and as a 3,000 indigo farmers and more than making indigo dye. result profit from indigo production 200 artisans and dyers. It buys indigo became uneconomic at the peasant Locals were unaware that this was leaves from growers to make natural level, it said, adding that by the late indigo plants. They gave a different indigo dye and high-end textile. 19th century farmers preferred name to it and grew the plant for However, locally made indigo has to cultivate rice and jute since green manure for crops. Banglapedia indigo was no more a profitable to compete with indigo producers said historical records suggest that crop. When coerced by planters to from other countries. India and indigo was produced in Bengal for cultivate indigo, farmers organised El Salvador are the two biggest use as a dye even in ancient times. a resistance movement during 1859- producers of natural indigo. There But then it was cultivated more 60. As a result indigo cultivation is also presence of cheap chemical for catering to domestic and ritual gradually disappeared from Bengal. indigo and impure indigo mixed needs than to serve as a commercial with synthetic dyes. commodity. Its cultivation for Source: The Daily Star Bangladesh 7th most affected countries : Global Climate Risk Index 2019 Dhaka, Dec 5 (UNB) - Bangladesh brought landslides leaving tens of Between 1998 and 2017, Puerto Rico, is the seventh most affected country thousands of houses and vast areas Honduras and Myanmar were the in the world due to “extreme weather of farmland and roads destroyed. countries most affected by extreme events” over the last 20 years from Nepal experienced flashfloods and weather events. Altogether, more 1998 -2017, says a new global landslides in August across the than 526 000 people died as a direct report. The other top nine affected southern border, amounting to US$ result of more than 11 500 extreme countries are Puerto Rico (1), 600 million in damages. Nearly weather events; and losses between Honduras (2), Myanmar (3), Haiti 250 people were killed by collapsed 1998 and 2017 amounted to around (4), the Philippines (5), Nicaragua US$ 3.47 trillion (in Purchasing buildings or drowning in regions (6), Pakistan (8), Vietnam (9) and Power Parities). of India, Nepal and Bangladesh. Dominica (10), according to Global 950, 000 houses were damaged or Climate Risk Index 2019 released in Storms and their direct implications destroyed in the floods. Poland on December 5. – precipitation, floods and landslides – were one major cause of damage Of the 10 most affected countries Countries most in 2017. Of the ten most affected and territories (1998–2017), eight a ected by countries in 2017, four were hit by were developing countries in the extreme weather tropical cyclones. Recent science low-income or lower-middle income events (1998-2017) has found a clear link between country group, one was classified as climate change and record-breaking 1 Puerto Rico an upper-middle income country precipitation of 2017’s hurricanes. (Dominica) and one an advanced 2 Honduras economy generating high income 3 Myanmar It also suggests that the number of severe tropical cyclones will increase (Puerto Rico). Bangladesh’s climate 4 Haiti risk ranking is 9th in 2017 against with every tenth of a degree in global 5 Philippines 13th position in 2016. average temperature rise. In many 6 Nicaragua cases, single exceptional disasters The report said massive rainfalls 7 Bangladesh have such a strong impact that the have led to floods across Nepal, countries and territories concerned Bangladesh and India, which affected 8 Pakistan are also ranked high in the long-term more than 40 million people. Some 9 Vietnam index. 1200 people lost their lives in these 10 Dominica three countries and millions were Over the last few years another displaced throughout the region. category of countries has been Puerto Rico, Sri Lanka and Dominica gaining relevance - countries like The floods spread across the were at the top of the list of the Haiti, the Philippines and Pakistan foothills of the Himalayas and most affected countries in 2017. that are recurrently affected by October-December 2018 October-December 34 Bangladesh Economy catastrophes continuously rank being omitted from final negotiation period from 1998 to 2017 Puerto among the most affected countries text, reads the report. Rico, Honduras and Myanmar rank both in the long-term index and in highest. the index for the respective year. The risks of future climate-related losses and damages are far too severe This year's 14th edition of the The Climate Summit in Katowice to simply function as a negotiation analysis reconfirms earlier results should adopt the 'rulebook' needed chip. The Global Climate Risk of the Climate Risk Index: less for the implementation of the Paris Index 2019 analyses to what extent developed countries are generally Agreement, including the global countries and regions have been more affected than industrialised adaptation goal and adaptation affected by impacts of weather- countries. Regarding future climate communication guidelines, said the related loss events (storms, floods, report. Furthermore, COP24 must heat waves etc.). The most recent data change, the Climate Risk Index may increase efforts to properly address available — for 2017 and from 1998 serve as a red flag for already existing loss and damage, which appears to 2017 — were taken into account. vulnerability that may further as a cross-cutting issue referenced The countries and territories affected increase in regions where extreme throughout various negotiation most in 2017 were Puerto Rico, Sri events will become more frequent or streams, with significant risk of Lanka as well as Dominica. For the more severe due to climate change.

Bangladesh to be 26th largest economy by 2030: HSBC report Bangladesh will likely to be the catch-up potential, population (size Poorer countries will have room to biggest mover in the global gross and shape), human capital (education catch up by simply adopting best domestic product rankings in and healthcare), politics, openness practice elsewhere, and those with 2030, says a report of HSBC Global and technology. It said China is set strong governance are more likely Report. The report titled “The World to continue to be the single biggest to facilitate investment and growth. in 2030: Our long term projections contributor to global growth and on Environmental challenges will be for 75 countries” says Bangladesh is our modeled estimates over the next one of the policy challenges, said the becoming the 26th largest economy decade and by 2030, and will have report. The report said population in the world from the current 42nd become the world’s largest economy. shape matters not just population position. Bangladesh will be followed growth. Young and educated people by Philippines, Pakistan, Vietnam It also said one of the striking rises are likely to be productive. and Malaysia. amongst the rankings will be by India which is set to become the Projected ranking changes by 2030 compared with 2018 “The starting point for a country is Biggest Economies (In 2030) Biggest Risers world's third-largest economy Country Ranking Change Country Ranking Change a key part of its potential growth. It in just over a decade, up from China +1(2to1) Bangladesh +16(42to26) is very clear that a country such as US -1(1to2) Philippines +11(38to27) seventh today – leapfrogging the India +4(7to3) Pakistan +10(40to30) Bangladesh has far more potential second- and third-largest developed Japan -1(3to4) Vietnam +8(47to39) growth than one like Norway, which Germany -1(4to5) Malaysia +5(34to29) economies of Germany and Japan. Source: HSBC Estimates and Projections is far richer,” it said. According to “…the projections and rankings the report, the real GDP growth of contained in this report are based It said the quality of institutions Bangladesh would be 7.1% per year on assumption that policymakers will play a big role in delivering on up to 2030 and the country will be a will continue to make progress the potential growth in a country. $700 billion economy in 2030 from Without a regulatory environment $300 billion now. on addressing economic flaws (education, ruled of law etc) and that that makes investment attractive The report focuses on six main they avoid wars and remain open to and facilitates investment, potential categories of economic indicators: global trade and capital. growth will be lower. Bangladesh ranked 39th in global brand value 2018 reflecting its socioeconomic brand value index 2018 as these two vivacity. Bangladesh has a brand neighbours have ranked 51st and value of U$257 billion, up 24 per 61st in the index. cent from last year, according to the 'Nation Brands 2018' report released The brand value of Bangladesh was by London-based Brand Finance. US$ 208 billion in 2017 and US$170 The brand value of Bangladesh has Bangladesh's rank was 44th in the billion in 2016. Brand Finance is the been rising as the country has ranked index in 2017. Bangladesh is ahead of world's leading independent brand 39th in the global brand value index Pakistan and Sri Lanka in the global valuation and strategy consultancy October-December 2018 October-December 35 Bangladesh Economy

and they measured the strength method based on the royalty relief the USA's brand value has gone up and value of the nation brands mechanism. Topping the table as the 23 per cent over the past year to of 100 leading countries using a world's most valuable nation brand, US$25.9 trillion, said the report.

WB Human Capital Index : Bangladesh ranked higher than neighbours Bangladesh has ranked above on a scale where 625 represents In India, 83% of 15-year olds India in the World Bank’s Human advanced attainment and 300 will survive until the age of 60. Capital Index (HCI); which is represents minimum attainment. Compared to India, this is slightly a new system to rank countries Factoring in what children actually higher in Pakistan – 84% – while based on how successfully they learn, expected years of schooling is the rate is 85% in Nepal. The World develop human capital. The ranking only 6.5. Bank report also revealed that in also prods governments to invest India and Neighbours Bangladesh, the HCI for girls is more effectively in education and Human Capital Index higher than for boys. It also showed healthcare. The index was launched 0.48 0.48 0.49 that in 2017, Bangladesh’s HCI is at the World Bank and International 0.44 0.39 higher than the average for its region Monetary Fund’s annual meetings but slightly lower than the average on the Indonesian island of Bali, on October11. Bangladesh scored for its income group. higher than its closest neighbours The Human Capital Project seeks to India and Pakistan. India Bangladesh Srilanka NepalPakistan Source: World Bank raise awareness and increase demand An average child born in Bangladesh, Across Bangladesh, 87% of 15-year for interventions to build human today, will be 48% as productive as olds will survive until the age of capital. It aims to accelerate better one born with complete access to the 60. This statistic is a proxy for the and more investments in people. country’s education and healthcare. range of fatal and non-fatal health Around 97 out of 100 children born outcomes that a child born today The Project has three elements— in Bangladesh have strong odds of would experience as an adult under the Human Capital Index; a surviving to age 5. In Bangladesh, a current conditions. Around 64 out program to strengthen research child who starts school at the age of of 100 children are not stunted, but and measurement about human four can expect to complete 11 years the rest are at risk of cognitive and capital, and support for countries to of school by his or her 18th birthday. physical limitations that can last a accelerate progress in raising human Students in Bangladesh scored 368 lifetime. capital outcomes. Bangladesh ranked 88th out of 199 countries in Global Hunger Index: IFPRI Bangladesh has ranked 88 out of Myanmar 77 in this year’s hunger undernourishment, child mortality, 119 countries on the global hunger index.The report said: “India is ranked child wasting and child stunting. index, the International Food Policy 100th out of 119 countries, and has According to this year’s scores, the Research Institute (IFPRI) said in a the third highest score in all of Asia level of hunger in the world has report. Bangladesh has a “serious” - only Afghanistan and Pakistan are decreased by 27% from the 2000 hunger problem, according to the ranked worse,” level. report. However, Bangladesh is IFPRI said in ahead of its neighbours India and Global Hunger Index 2017 Rank a statement on Pakistan. Bangladesh stood at 90th Thursday. China 29 position among 118 countries in Nepal 72 2017 ranking. The GlobalMy anmar 77 According to the report, among Hunger Index Sri Lanka 84 other South Asian countries India has been ranking Bangladesh 88 India ranked 100, Pakistan 106, Nepal 72, countries since 100 Pakistan Sri Lanka, 84, and Afghanistan 107. based on four 106 Meanwhile, China ranked 29 and key indicators - Data: Global Hunger Index 2017 Ease of Doing Business: Bangladesh lowest in South Asia Among South Asian nations, Lanka 100, Nepal 110, Pakistan 136, more reforms to improve ease of Bangladesh stands lowest, with Maldives 139, Afghanistan 167, with doing business, said a World Bank India ranking at 77, Bhutan 81, Sri Myanmar at 171. Bangladesh needs report. October-December 2018 October-December 36 Bangladesh Economy

taxes the country stands at 151 from last year's 152. Better performance in these areas has pushed Bangladesh up a notch this year, the report added.

On the other hand, Bangladesh’s ranking saw a downward trend on issues such as starting a business, getting credit, protecting minority investors, dealing with construction permits, and trading across borders. To improve its ranking, the World Bank recommended regulatory reforms to make doing business easier.

The marginal change in position indicates that the country has taken some initiatives to make doing business easier, but the pace of reforms needs to be increased According to the World Bank (WB) than the previous year, the WB significantly, said the report. Group’s report, “Doing Business report said. 2019: Training for Reform” released Last year, among the eight South on October 31, Bangladesh ranked Bangladesh has seen improvement in Asian countries, Bangladesh was 176th out of 190 countries for ease of providing electricity and ranked 179 only ahead of Afghanistan. But this doing business, up from a ranking of from last year’s 185. For registering year, the war-torn country too left 177 last year. Out of 100, Bangladesh property it ranked at 183 from a Bangladesh behind: it came in at scored 41.94, which is 0.91%t higher previous 185, and its rank in paying 167th in contrast to 183rd last year. Bangladesh a notch down : WEF global competitiveness Index Bngladesh slipped down to 103rd countries of South Asia, the report Germany and Switzerland position among 140 countries said. Corruption remained at the top respectively 2nd, 3rd and 4rth from 102th in last year in Global of the problematic factors in doing without any change with that in Competitiveness Index 2018 released business in Bangladesh, which was 2017, revealed the report. Among by World Economic Forum (WEF) also at the same position in last year’s the South Asian countries, India though its overall score increased by index. Inadequate infrastructure and gained by advancing five positions 0.7 percentage points this year. inefficient government bureaucracy (58th), in GCI 2018. Bangladesh are also major obstacles, it added. Bangladesh’s competitiveness (103), Pakistan (107) and Nepal has been weakened in most of Meanwhile, USA ranked top in the (109) slipped by one position each the indicators (both in rank and 2018 GCI followed by Singapore, and Sri Lanka by four positions (85). score). Among 12 pillars of this survey, Bangladesh ranked below 50 in one pillar on Market Size (36th). Bangladesh ranked between 80 to100 in two other pillars on Macroeconomic Stability (88th) and Health (96th), said the report. Centre for Policy Dialogue (CPD), the local partner of WEF, released the report. Bangladesh is partially better in terms of Macroeconomic Stability, Health and ICT adoption and far behind in terms of Business Dynamism and Institutions compared to other developing October-December 2018 October-December 37 Regional News

Trump- Xi summit agree on trade war ceasefire China and the United States agreed top diplomat, State Councillor financial markets and weighed to a ceasefire in their bitter trade Wang Yi, said the negotiations were on the world economy. After the war on December 1 after high- conducted in a “friendly and candid 2-1/2 hour meeting, White House stakes talks in Argentina between atmosphere”. chief economist Larry Kudlow U.S. President Donald Trump told reporters the talks went “very and Chinese President Xi Jinping, “The two presidents agreed that well,” but offered no specifics as he including no escalated tariffs on Jan. the two sides can and must get boarded Air Force One headed home bilateral relations right,” Wang told 1. Trump will leave tariffs on $200 to Washington with Trump. billion worth of Chinese imports at reporters, adding they agreed to 10 percent at the beginning of the further exchanges at appropriate China’s goal was to persuade Trump new year, agreeing to not raise them times. “Discussion on economic and to abandon plans to raise tariffs on to 25 percent “at this time”, the White trade issues was very positive and $200 billion of Chinese goods to 25 House said in a statement. constructive. The two heads of state percent in January, from 10 percent at present. Trump had threatened to do that, and possibly add tariffs on $267 billion of imports, if there was no progress in the talks. With the United States and China clashing over commerce, financial markets will take their lead from the results of the talks, widely seen as the most important meeting of U.S. and Chinese leaders in years.

Trump told Xi at the start of their meeting he hoped they would achieve “something great” on trade for both countries. He struck a positive note as “China will agree to purchase reached consensus to halt the mutual he sat across from Xi, despite the U.S. a not yet agreed upon, but very increase of new tariffs,” Wang said. president’s earlier threats to impose substantial, amount of agricultural, new tariffs on Chinese imports as energy, industrial, and other product “China is willing to increase imports early as the next year. He suggested from the United States to reduce the in accordance with the needs of its that the “incredible relationship” trade imbalance between our two domestic market and the people’s he and Xi had established would be countries,” it said. needs, including marketable products from the United States, to “the very primary reason” they could “China has agreed to start purchasing gradually ease the imbalance in two- make progress on trade. agricultural product from our way trade.” farmers immediately.” The two Xi told Trump that only through leaders also agreed to immediately “The two sides agreed to mutually cooperation could the United States start talks on structural changes open their markets, and as China and China serve the interest of peace with respect to forced technology advances a new round of reforms, the and prosperity. Washington and transfers, intellectual property United States’ legitimate concerns Beijing have also increasingly been at protection, non-tariff barriers, cyber can be progressively resolved.” odds over security in the Asia-Pacific intrusions and cyber theft, services The two sides would “step up region. At the same time, Trump and agriculture, the White House negotiations” toward full elimination again raised with Xi his concern said. of all additional tariffs, Wang said. about the synthetic opioid fentanyl being sent from China to the United Both countries agreed they will try The announcements came after States, urging the Chinese leader to to have this “transaction” completed Trump and Xi sat down with their place it in a “restricted category” of within the next 90 days, but if this aides for a working dinner at the drugs that would criminalize it. does not happen then the 10 percent end of a two-day gathering of tariffs will be raised to 25 percent, world leaders in Buenos Aires, their The White House said Xi, “in a it added. The Chinese government’s dispute having unnerved global wonderful humanitarian gesture”, October-December 2018 October-December 38 Regional News had agreed to designate fentanyl a NXP deal should it again be possibilities for both the United controlled substance. Xi also said presented to him, the White House States and China. It is my great that he was open to approving the added. “This was an amazing and honor to be working with President previously unapproved Qualcomm- productive meeting with unlimited Xi,” Trump said in the statement. Global trade wars risk 'millions of jobs': WTO chief Escalating trade wars "pose real risks" rise in tariffs, knocking up to 17 communities for new sources of to the global economy, potentially percent off global trade growth, growth," he added. threatening millions of jobs, head and 1.9 percent off overall global of the World Trade Organization Responding to claims that unfair (WTO) Roberto Azevedo warned in trade practices were going a London speech on October 17. US unpunished under the current President Donald Trump is locked in system, Azevedo said there needed a trade war with China, rolling out to be political solutions and he billions of dollars in tariffs in a bid to called on leaders to work towards tackle its trade deficit and rein in what them at next month's G20 summit in Washington considers unacceptable Argentina. Chinese trade practices. Trump has so far slapped tariffs Trump has also targeted the EU, on $250 billion worth of Chinese and WTO director general Azevedo goods imported by the US and told business heads at the Mansion threatened to go even further. He House speech that there appeared to economic growth. "These effects has also boosted military support be "no end in sight" to the tit-for-tat for China rival Taiwan and accused action, pleading with world leaders would cause significant disruptions China of interfering in US elections. to negotiate. "A continued escalation for workers, firms, and communities The US accuses China of rampantly of tensions would pose real risks," he as they adjust to this new reality," stealing technology and seeking an warned. said Azevedo. "Potentially millions unfair trade advantage by forcing WTO economists calculate that "a of workers would need to find new foreign businesses to work with local complete breakdown in international jobs; firms would be looking for partners, handing over their know- trade cooperation would see a sharp new products and markets; and how in the process. G20 sealed landmark deal on WTO reform by ducking 'taboo words' Many delegates from the world’s of December determined to clinch point by tensions between the 20 largest economies arrived at a an agreement to reform the global United States and China. To do so, summit in Argentina in the first week trade system, pushed to a breaking they had to bow to U.S. and Chinese October-December 2018 October-December 39 Regional News

demands to drop some of the pledges meeting in Washington in 2008, up its economy as envisioned when that have become hallmarks of the their communique did not contained China joined the body in 2001. To Group of 20 industrialized nations, a pledge to fight protectionism. force reform at the WTO, Trump’s which represents two-thirds of the team has blocked new appointments global population. But they left with China, meanwhile, steadfastly to the world’s top trade court, which a communique committing for the opposed the inclusion of the usual is rapidly running out of judges, first time to reform the dysfunctional calls for “fair trade practices,” meaning it will be unable to issue World Trade Organization (WTO), delegates said. Beijing rejects binding rulings in trade disputes. He the body supposed to regulate global criticisms from the United States, has even threatened to withdraw the trade disputes. Europe and Japan for dumping, United States from the global body. industrial subsidies, abuse of “A number of words that we used to intellectual property rights and The final statement said the group have always in G7 and G20 summit technology transfers, amongst other supports the “necessary reform of communiques became kind of practices. the WTO to improve its functioning”, taboos,” a European official said allowing U.S. officials to claim a on December 1 in the midst of the Even the word “multilateralism” victory. While there were no details negotiations. “We have American itself has fallen out of favor in a group of the proposed reform, many taboos and Chinese taboos.” designed to foster international delegates hailed a breakthrough in cooperation. committing Washington to global First among those taboos solutions. is “protectionism”. The U.S.Central to getting the United States administration has become sensitive to sign up to a phrase recognizing “For the first time China and the to criticisms after President Donald the importance of “multilateral United States agreed to engage Trump has imposed tariffs not only trading system” was acknowledging on the WTO,” said one delegate on $250 billion of Chinese goods but that the system was falling short of closely involved in drafting the also on steel and aluminum imports its objectives, delegates said. The communique. “Given Trump’s earlier that hit several of his G20 partners. United States is unhappy with what threats, to end up with the G20 As a result, for the first time since it says is the WTO’s failure to hold saying it would work together on G20 leaders held their inaugural Beijing to account for not opening WTO reform is interesting.” New G20 chair Japan wants global trade imbalances and impact of aging population on 2019 agenda Japan will put issues ranging from through macroeconomic policy and to President Donald Trump’s focus global trade imbalances to the structural reform, they added. on narrowing the U.S. trade deficit impact of aging populations on the using import tariffs and bilateral agenda when it chairs next year’s deals. His “America First” policies meetings of leaders from the Group and the U.S.-China trade war have of 20 major economies. At the end overshadowed debates at recent G20 of the G20 summit in Buenos Aires, meetings. Finance Minister Taro Aso unveiled the “priority issues” to be taken up Japan plans underscore Tokyo’s view by his counterparts and central bank that instead of focusing too much governors next year when Japan on bilateral trade imbalances, there takes over the chairmanship from should be more emphasis on overall Argentina. capital flows and structural factors behind the U.S. deficit - such as a Japan will host a G20 financial lack of domestic savings. Saddled leaders’ meeting in Fukuoka in with its own aging population and western Japan on June 8-9, followed the industrial world’s heaviest public by a leaders’ summit in Osaka on debt burden, Japan will also highlight June 28-29. Tokyo will assert that the issue of aging and its impact on global current account imbalances Global imbalances had once been fiscal and monetary policies at next should be fixed via multilateral policy a key topic at G20 meetings with year’s G20 meetings, the officials coordination rather than bilateral a focus on each country’s current said. trade deals. Excessive imbalances account balance, or the overall flow should be adjusted by improving of money including, but not confined Bank of Japan Governor Haruhiko the ratio of investment and saving to, trade. This approach runs counter Kuroda has said an aging population October-December 2018 October-December 40 Regional News could pose “serious challenges” firepower than before to boost rising debt in low-income countries, for central banks, as it undercuts growth. Also on the agenda under and to promote high-quality economies’ growth potential and Japan’s G20 chair will be the need requires them to use more monetary to ensure debt sustainability, given infrastructure investment. World ‘way off course’ in climate change fight: UN chief Antonio Guterres The world is “way off course” in its A firefighter is silhouetted by a poorest people,” said World Bank plan to prevent catastrophic climate burning home along the Pacific CEO Kristalina Georgieva. change, United Nations Secretary- Coast Highway during the Woolsey General Antonio Guterres said on Fire in Malibu, California, on Nov 9, Of the US$100 billion the World Dec 3 as the COP24 summit officially 2018. Bank plans to make available in the opened in Poland. After a string of damning environmental reports showing mankind must drastically slash its greenhouse gas emissions to avert runaway global warming, Mr Guterres told delegates “we are still not doing enough, nor moving fast enough”.

The nearly 200 nations that signed up to the 2015 Paris climate deal must in December finalise a rulebook to limit global temperature rises to well below two deg C, and to the safer cap of 1.5 deg C if possible. But the rate of climate change is rapidly outstripping mankind’s response. The World Bank said on it will give five years from mid-2020, half would equal weight to curbing emissions go to adaptation measures, it said. With just one deg C of warming and helping poor countries deal with Those include building more robust so far, Earth is blighted by raging the “disastrous effects” of a warming homes, schools and infrastructure, wildfires, extreme drought and world as it steps up investments to preparing farmers for climate mega-storms made worse by rising tackle climate change in the first half shifts, managing water wisely and sea-levels. “Even as we witness of the 2020s. The bank and its two protecting people’s incomes through devastating climate impacts causing sister organisations plan to double social safety nets, Dr Georgieva havoc across the world, we are still their investments in climate action to added. not doing enough, nor moving fast about US$200 billion (S$273 billion) enough, to prevent irreversible and from 2021-2025, with a boost in British broadcaster and catastrophic climate disruption,” Mr support for efforts to adapt to higher environmentalist David Guterres said. temperatures, wilder weather and Attenborough, who was given a rising seas. “People’s seat” on December 3 the Some of the nations most at risk from two-week climate conference in the climate change had the chance to The latest figures on climate funding Polish coal city of Katowice alongside plead the case for immediate action. for developing countries show two dozen heads of state and Mr Frank Bainimarama, prime barely a quarter has been going to government, urged world leaders to minister of Fiji and president of last adaptation, with the bulk backing get on and tackle “our greatest threat year’s COP climate talks, said nations adoption of clean energy and in thousands of years”. must act now to stave off disaster. more efficient energy use, aimed at “Or, God forbid, (we) ignore the cutting planet-warming emissions. “The continuation of our civilisations irrefutable evidence and become the “We must fight the causes, but also and the natural world upon which generation that betrayed humanity,” adapt to the consequences that are we depend, is in your hands,” said he said. often most dramatic for the world’s the naturalist. World leaders need to fix broken economic models : IMF chief World leaders need to fix global Monetary Fund chief Christine pushing tariffs and protectionism. trading systems instead of trying Lagarde said on October 10, in a Her comments come as a trade spat to tear them down, International rebuke to nationalist politicians between China and the United States October-December 2018 October-December 41 Regional News

threatens economic growth around More tariffs and theirChina are completely trumped up... the world, with IMF experts warning countermeasures "could lead to Grossly exaggerated." of "new vulnerabilities" in the global a broader tightening of financial As interest rates rise in advanced system. "We need to work together to conditions, with negative economies, prompting investors implications for the global economy de-escalate and resolve the current to take their money in search and financial stability," the fund trade disputes," Ms Lagarde said at of higher returns, the IMF said an IMF and World Bank gathering in warned. Lagarde told her audience emerging economies should take Bali. "We need to join hands to fix the that she did not feel overly gloomy steps to insulate themselves from an current trade system, not destroy it," about global conditions. "It's exodus of funds. That would include she added. boosting foreign currency reserves Around 32,000 members of the that could be used in a crisis, as well global financial elite are on the as working with local bond markets to build a local investor base, rather Indonesian holiday island for a than relying on financing from week of discussions that have been abroad. clouded by US President Donald Trump's America First trade policy. The fund also pointed to risks from Trump has levied or threatened high corporate debt and too much tariffs on goods from economies government borrowing, a hangover around the world, notably China, but from fiscal stimulus measures and also on traditional allies such as the government rescue spending in the European Union. wake of the 2008 global financial tempting to be a bit depressed about crisis. Since the last stability report A raising of US interest rates has this perspective but I'm actually in April, global economic conditions also helped send emerging market hopeful because there is a clear have become less balanced, with currencies into a tail spin, as appetite to improve and expand a more pronounced divergence countries that borrowed heavily in trade," she said. between advanced and emerging dollars race to pay back their debt. economies. Prominent US academic Jeffrey The IMF's latest report on world Sachs was less diplomatic in his Despite the Federal Reserve's interest rate increases, financial conditions financial stability, released October assessment of Trump's shepherding "have eased further" in the US as 10, said global growth could be at of American trade relationships, equity valuations have stayed lofty. risk if emerging markets deteriorate slamming the president's repeated Conditions in Europe and other further or trade tensions escalate. claims that deficits with China and major advanced economies have "New vulnerabilities have emerged other nations meant Americans were also remained "relatively easy," and the resilience of the global being taken advantage of. financial system has yet to be tested," although investors have pushed back it said in the twice-yearly Global "Trade deficits don't (necessarily) their expectations for the European Financial Stability Report. mean cheating by the other side... Central Bank to lift interest rates, the This is the United States trying report said. In China, the situation Market participants "appear stop China's growth -- it's a terrible remains "broadly stable," although complacent" about the potential risks idea," Sachs, director of the Center corporate debt is above historical from a "sudden, sharp tightening of for Sustainable Development at levels and household borrowing is conditions" -- like rising interest Columbia University, told a seminar at the high end among emerging rates or declining access to capital. in Bali. "All the accusations against countries. EU agrees 'best possible' Brexit deal urges Britons to back May European Union leaders finally Commission President Jean-Claude forces votes it down in the British sealed a Brexit deal on November Juncker told reporters after the 27 parliament, Juncker said “this is the 25, saying the package agreed with other EU leaders formally endorsed best deal possible”, although summit Prime Minister Theresa May was the a treaty setting terms for British chair Donald Tusk sounded more best Britain will get in a warning to withdrawal in March and an outline guarded, saying he did not want to of a future EU-UK trade pact. consider hypotheticals. the British parliament not to reject it. “Those who think that, by rejecting Asked whether there was any chance May used a post-summit news the deal, they would get a better Brussels would reopen the pact if conference to make a sales pitch for deal, will be disappointed,” European an alliance of pro- and anti-Brexit her plan, telling television viewers at October-December 2018 October-December 42 Regional News home that it was the “only possible “no time for champagne”, as one of European Council President Tusk deal”, offering control of UK borders Europe’s great powers quits after a said the bloc was determined to have and budgets while maintaining 2016 referendum. The harder work as close as possible a partnership close alignment with EU regulations that was good for business and the security of Britain and Europe.

“In any negotiation, you do not get everything you want. I think the British people understand that,” said May, who arrived after the endorsement to voice hopes for continued close ties. Parliament’s vote could open the door to a “brighter future” or condemn the country to more division, she said. “I will make the case for this deal with all my heart,” she added, declining to answer whether she would resign if of forging new relations now lies with Britain, which has long been parliament rejects it. ahead, he added. skeptical about EU integration: “We will remain friends until the end of German Chancellor Angela The EU leaders took barely half days. And one day longer,” he said. Merkel, the bloc’s veteran guiding an hour to rubber-stamp the 585- force, echoed that unwillingness page withdrawal treaty, aimed at an French President Emmanuel Macron to speculate on what she called a orderly exit in March to be followed said Britain’s Brexit vote showed “historic day” that was both “tragic by two to three years of a status- Europe needed reform. He stressed and sad”. quo transition period. The outline that Paris would hold Britain to of a future trading and security tight EU regulations, in return for Amid praise for Michel Barnier’s partnership was just 26 pages long. giving it easy trade access. He also team of negotiators for bringing May’s critics say it leaves Britain foreshadowed coming, fraught, home a deal after 18 months of tied to EU regulations that it will no negotiations by demanding access to grueling talks, Juncker said it was longer have a say in setting. British fishing grounds after Brexit. Asia to grow as expected in 2018 and 2019, trade war poses downside risks: ADB The Asian Development Bank 12 maintained its 2018 and 2019 welcome development, ADB Chief expects developing Asia to meet its economic growth estimates for the Economist Yasuyuki Sawada said growth forecasts for this year and region at 6.0 percent and 5.8 percent, “the unresolved conflict remains to respectively. next on strong domestic demand and be the downside risk to economic The ADB also prospects in the region.” kept its 6.6 percent and 6.3 The 2019 growth outlook for Central percent growth Asia was raised to 4.3 percent, projections from the September projection of for China as 4.2 percent, the ADB said, but the well as its 7.3 forecasts for Southeast Asia and percent and 7.6 percent growth South Asia for next year lowered to 5.1 expectations percent and 7.1 percent, respectively. for India for Easing commodity prices and central both years. bank policy actions could cause the Early this easing inflation pressures, though it pace of inflation in developing Asia month, U.S. President Donald to settle at 2.6 percent this year and warned of downside risks from a Trump and Chinese counterpart Xi rising tide of trade protectionism. Jinping agreed to a 90-day truce on to 2.7 percent in 2019, the ADB ADB released an update of its Asian further tariffs as they try to negotiate said, down from its 2.8 forecast in Development Outlook on December a deal. But while the truce was a September for both years. October-December 2018 October-December 43 Regional News

Climate change could cost US 'hundreds of billions' a year: study Climate change is expected to adaptation efforts, climate change National Oceanic and Atmospheric cause growing losses to American is expected to cause growing losses Administration's National Centers infrastructure and property and to American infrastructure and for Environmental Information, impede the rate of economic growth, property and impede the rate of said there had been "no external according to a major new study. economic growth over this century," interference" in the report. it added. The effects will spill over Climate change is already hurting Scientists found "clear and into global trade, affecting import the global economy and will cost the compelling evidence that global and export prices and US businesses US hundreds of billions of dollars average temperature is much higher with overseas operations and supply annually by century's end unless and is rising more rapidly than chains, it added. drastic action is taken to cut carbon anything modern civilization has emissions, a major US government Some of these impacts are already experienced," he told reporters. report warned on November 23. being felt in the United States, the "And this warming trend can only report said, be explained by human activities, and recent especially emissions of greenhouse extreme weather gases into the atmosphere." and climate- "Because several GHGs, in related events particular carbon dioxide, reside can now be in the atmosphere for decades or attributed "with longer, many climate-influenced increasingly effects are projected to continue higher changing through 2050, even if GHG confidence to emissions were to stop immediately," human-caused said the report. warming." Sea levels are continuing to rise, "With continued growth in emissions Compiled by more than 300 and extreme events like heavy rain at historic rates, annual losses in scientists, the Fourth National and floods continue to increase some economic sectors are projected Climate Assessment Volume II is worldwide, which will "cascade to reach hundreds of billions of a congressionally mandated report across economic sectors," Easterling dollars by the end of the century— that spans more than 1,000 pages. more than the current gross domestic said, warning of "substantial net Trump yanked the United States product (GDP) of many US states," damage to the US economy." The out of the landmark 2015 Paris report said it was "very likely that the latest edition of the National climate accord, signed by more some physical and ecological Climate Assessment said. than 190 nations to limit carbon impacts will be irreversible for "Without substantial and sustained emissions. David Easterling, director thousands of years, while others will global mitigation and regional of the technical support unit at the be permanent." Major cities can fight climate change and make billions: researchers Implementing green strategies like mayors have long known to be climate change, according to the bike lanes and better building codes true: taking bold climate action World Bank Group’s International could bring 94 world cities a collective also improves public health,” C40 Finance Corporation (IFC). More $583 billion worth of benefits, while executive director Mark Watts said than half the global population lives fighting climate change, according to in a statement. “There is no longer in cities, which consume over two- research by a global network of cities. any trade-off for cities between C40 Cities pinpointed transport, delivering policies buildings and industry as priorities to that benefit the be incorporated into climate change environment, policies. Doing so would encourage drive economic large investments and avert 223,000 growth and premature deaths, as people live and improve the health work longer. of citizens.”

“This research quantifies and Cities are key in provides the business case for what the fight against October-December 2018 October-December 44 Regional News thirds of the world’s energy, and air conditioning, water heating and percent, according to the researchers. account for more than 70 percent of lighting systems, researchers added. “Where the problem lies in terms of all carbon dioxide emissions, the IFC emissions, is also where the solution Industry and businesses should says. lies,” said Milag San Jose-Ballesteros, use energy efficient technologies. director for East, Southeast Asia and C40 researchers said cities should Emissions capturing and implement walking, cycling and mass maintenance and monitoring are Oceania at C40 Cities in Singapore. transit policies, introduce stringent all important if climate goals are to Although many C40 cities have emission standards, promote zero- be achieved, they said. By focusing already identified or implemented emissions vehicles and establish on green approaches to transport, some of the measures suggested in zero emission areas. Cities should buildings and industry, cities could the report, the three key areas in the also adopt strict regulations for new reduce greenhouse gas emissions by research needed to be fully reflected buildings and retrofit older buildings 87 percent and hazardous airborne in strategies by 2020 and in place or to improving heating, ventilation, pollutants known as PM2.5 by 49 adopted by 2030, she added. Gas to overtake coal as world's second largest energy source by 2030: IEA Natural gas is expected to overtake Administration of Customs data, The United States could account for coal as the world’s second largest China has already overtaken Japan as 40 percent of total gas production energy source after oil by 2030 due the world’s top natural gas importer. growth to 2025, the IEA said, while to a drive to cut air pollution and Although China is the world’s third- other sources would take over the rise in liquefied natural gas biggest user of natural gas behind the as U.S. shale gas output flattened (LNG) use, the International Energy United States and Russia, it has to and other nations started turning Agency (IEA) said on December import about 40 percent of its needs to unconventional methods of 11. The Paris-based IEA said in its as local production cannot keep gas production, such as hydraulic World Energy Outlook 2018 that pace. fracturing or fracking. energy demand would grow by more than a quarter between 2017 and Emerging economies in Asia would Global electricity demand will grow 2040 assuming more efficient use of account for about half of total global 2.1 percent a year, mostly driven by energy - but would rise by twice that gas demand growth and their share rising use in developing economies. much without such improvements.

Global gas demand would increase by 1.6 percent a year to 2040 and would be 45 percent higher by then than today, it said. The estimates are based on the IEA’s “New Policies Scenario” that takes into account legislation and policies to reduce emissions and fight climate change. They also assume more energy efficiencies in fuel use, buildings and other factors.

“Natural gas is the fastest growing fossil fuel in the New Policies Scenario, overtaking coal by 2030 to become the second-largest source of LNG imports would double to Electricity will account for a quarter of energy after oil,” the report said. 60 percent by 2040, the IEA report of energy used by end users such as China, already the world’s biggest said. “Although talk of a global consumers and industry by 2040, oil and coal importer, would soon gas market similar to that of oil is it said. Coal and renewables will become the largest importer of gas premature, LNG trade has expanded swap their positions in the power and net imports would approach the generation mix. The share of coal is level of the European Union by 2040, substantially in volume since 2010 the IEA said. and has reached previously isolated forecast to fall from about 40 percent markets,” it said. LNG involves today to a quarter in 2040 while According to Reuters calculations, cooling gas to a liquid so it can renewables would grow to just over based on China’s General transported by ship. 40 percent from a quarter now. October-December 2018 October-December 45 Regional News

However, the world’s coal plants and Storage, hydrogen, improving slow but steady pace to 2040. From make up one third of energy-related energy efficiency, and in some 2017 levels, the IEA said emissions carbon dioxide (CO2) emissions cases, retiring capital stock early. would rise by 10 percent to 36 today. Many of those are in Asia, To be successful, this will need an gigatonnes in 2040, mostly driven by where average coal plants are on unprecedented global political and growth in oil and gas. average 11 years old with decades left economic effort,” said Fatih Birol, the to operate, compared with an average IEA’s executive director. But this is “far out of step” with what age of 40 years in the United States and Europe. “We can create some Energy-related CO2 emissions could scientific knowledge says would be room for maneuver by expanding the reach a record high this year, the IEA required to tackle climate change, it use of Carbon Capture Utilization said, and will continue to grow at a added. Google-Temasek study sees $240 billion Southeast Asia internet economy by 2025 will exceed $23 billion in 2018, the forecast to grow to $100 billion by report said, and rise more than four 2025, accounting for $4 of every times to exceed $100 billion by 2025, $10 spent in the region, the report helped by increased consumer trust. said. It added that 2018 was on track It credited e-commerce companies - to be a record year for fundraising Alibaba Group Holding Ltd’s Lazada, for the region’s internet economy Southeast Asia’s internet economy is Sea Ltd’s Shopee, and Indonesia’s companies, with $9.1 billion raised expected to exceed $240 billion by Tokopedia - for helping develop the in the first half of the year, nearly as 2025, a joint study by Google and sector. much as in all of 2017. Temasek Holdings showed, a fifth more than previously estimated, The report estimated that the GMV The research covers Southeast Asia’s of the competitive ride hailing sector, as more consumers use their six largest economies - Indonesia, with the addition of online food smartphones to go online. The study, Malaysia, Philippines, Singapore, delivery, has reached $7.7 billion in first published in 2016, encompasses Thailand, and Vietnam. The growth ride-hailing, e-commerce, online 2018. “Powered by the ambitions is being boosted by the world’s most travel and online media. The latest of Go-Jek and Grab to become engaged internet users, of whom report released on November 19 Southeast Asia’s ‘everyday apps’, we more than 90 percent connect to the adds new sectors such as online project that ride hailing will reach food delivery, as well as subscription almost $30 billion by 2025,” the web through their smartphones, it music and video on demand. Google-Temasek study said. said.

It estimated that the gross Both Alphabet Inc’s Google and The report said the increasing merchandise value (GMV) of the Singapore state investor Temasek availability of affordable smartphones region’s internet economy has [TEM.UL] have invested in Go-Jek. and the rollout of faster and more reached $72 billion in 2018, rising Temasek-backed Vertex Ventures reliable mobile telecommunication 37 percent from the year earlier. The is an early investor in Grab. The services were supporting Southeast GMV of e-commerce in the region Indonesian internet economy is Asia’s growing internet user base. EU Enlists Asia in Anti-Trump Push on Trade and Climate The European Union won Asian Organization political support in campaigns at its core.” aimed at countering U.S. President Donald Trump’s challenges to E u r o p e a n global trade rules, the fight against and Asian climate change and the international leaders also nuclear accord with Iran. In a final recognized statement at an Asia-Europe summit “the serious in Brussels on October 19, the EU challenge said the government leaders agreed posed by on “the vital need of maintaining an climate open world economy and upholding change, its the rules-based multilateral trading tremendous system, with the World Trade impact felt October-December 2018 October-December 46 Regional News worldwide and the need for urgent “That’s an important signal because “When it comes to climate change, and effective action,” according to almost two-thirds of global gross it’s important to win these countries the statement. Furthermore, the domestic product is gathered here.” as partners,” said Chancellor text cites “collective support” at the Sebastian Kurz of Austria, which The meeting highlights the global summit for the United Nations- currently holds the EU’s rotating six- political maneuvering to address the backed agreement to prevent Iran month presidency. “It’s important from developing atomic weapons. consequences of Trump’s “America- First” agenda, which has led the that we act as one.” The Oct. 18-19 “The summit shows that countries U.S. to question the relevance of the summit brought together the heads gathering from Europe and Asia WTO, abandon a landmark 2015 UN of state or government of more than want rules-based world trade and agreement to fight global warming 50 European and Asian countries a commitment to multilateralism,” and pull out of a hard-fought including the 28 EU members, German Chancellor Angela Merkel international accord the same year to Russia, China, Japan and South said on Friday in the Belgian capital. curb Iran’s nuclear activities. Korea. US ‘green growth’ duo win Nobel Economics Prize US economists William Nordhaus society and the world economy was the environment will be so costly and Paul Romer on October 8 shared needed to avoid global climate chaos. and so hard that they will ignore the the 2018 Nobel Economics Prize for problem and deny it exists,” he said. constructing “green growth” models It said time was running out to avert “I hope the prize will help people that show how innovation and disaster, noting that Earth’s surface see humans are capable of amazing climate policies can be integrated has warmed one with economic growth. degree Celsius (1.8 degrees Working independently, they have Fahrenheit). Romer addressed “some of our time’s most told the Swedish basic and pressing questions about academy in a live how we create long-term sustained phone interview and sustainable growth,” the Royal at the prize Swedish Academy of Sciences said in announcement that a statement. he was confident the world could Nordhaus is a professor at Yale reduce greenhouse University. Romer is a former World gas emissions and still improve accomplishments when we try to do Bank chief economist now at New standards of living in the future. something.” York University’s Stern School of Business. The academy said their “We can absolutely make substantial The jury said that while Nordhaus models, both developed in the 1990s, progress to protecting the and Romer “do not deliver have “significantly broadened the environment, and without giving up conclusive answers … their findings scope of economic analysis”. The the chance for sustained growth,” he have brought us considerably closer prize announcement came as the UN said. “One of the problems with the to answering the question of how we warned in a landmark report that an current situation is that many people can achieve sustained and sustainable “unprecedented” transformation of think that dealing with protecting global economic growth.” Nearly half of German firms expect further escalation of trade tensions between Europe and US Forty-four percent of German reported. It said 41 percent of firms European firms from U.S. auto tariffs firms expect a further escalation surveyed considered it unlikely that while the two sides continue to work of trade tensions between Europe the United States and the European on trade issues. But the EU’s trade and the United States, which is Union (EU) would reach agreement commissioner, Cecilia Malmstrom, likely to continue to dampen new on a transatlantic trade agreement. last week said any U.S.-EU trade deal investments, the RND newspaper would be limited in scope, covering chain reported, citing a survey by U.S. President Donald Trump and industrial goods, but not agriculture. the IW economic institute. Thirty- European Commission President four percent do not see trade ties Jean-Claude Juncker struck an Pascal Lamy, the former director growing more strained, RND agreement in July that should shield general of the World Trade October-December 2018 October-December 47 Regional News

invest, which in turn would depress group reported. DIHK President Eric German firms’ export prospects in Schweitzer said it was imperative to the United States and elsewhere. continue dialogue with Washington, with the goal of negotiating a longer- “Given worldwide economic term free trade agreement that developments, the downturn of would give industry more certainty the German economy is expected and room for maneuver. to continue,” IW said in the study, Organisation said the EU should according to RND. “For the moment, we are far from also prepare for its companies to such a reasonable agreement with be targeted by U.S. sanctions in a The DIHK German Chambers of our second most important trading worsening trade dispute between Commerce also sees no signs that the partner, the United States,” he added. the United States and China. The United States will change course and He said the group had halved its IW study said continued uncertainty back away from threatened tariffs, a export growth forecast for 2018 to about the global trade environment situation that is of particular concern 2.8 percent, and expected modest would weigh on firms’ willingness to to German automakers, the media growth of just 2.5 percent next year. Beijing eases back on 'Made in China 2025' amid trade talks with U.S. China appears to be easing its high- of thing,” Ross said of China. “We’re Local governments that have seen tech industrial development push, perfectly happy to compete with results in their promotion of stable dubbed “Made in China 2025,” them toe-to-toe, as long as it’s a level industrial growth and upgrading will which has long irked the United playing field.” be given priority support, the state- States, amid talks between the two countries to reduce trade tensions, according to new guidance to local governments. Beijing has dropped references to “Made in China 2025”, an initiative intended to help China catch up with global rivals in sophisticated technologies and promoted aggressively since 2015.

The strategy is core to China’s aim to transform itself into a global superpower by 2050, and rival U.S. dominance in sectors such as semiconductors, robotics, aerospace, China has repeatedly denied the clean-energy cars and artificial backed China Information News U.S. allegations that it systematically intelligence. But its open efforts to said, citing a new document from the misappropriated U.S. intellectual deploy state support and subsidies to State Council. close a technology gap has provoked property through policies that alarm in the West and blowback effectively coerce U.S. firms to U.S. President Donald Trump and from the United States. transfer technology to Chinese joint Chinese President Xi Jinping agreed venture partners, through outright at a Dec. 1 meeting in Argentina to a U.S. Commerce Secretary Wilbur theft by cyber and other means and truce between the world’s two largest Ross said it was clear China has state acquisitions of U.S. firms. economies that delayed by 90 days a been de-emphasizing the 2025 plan planned Jan. 1 U.S. increase of tariffs in response to objections from the In its 2016 guidance to local to 25 percent from 10 percent on United States and other countries, governments, the State Council, $200 billion worth of Chinese goods. “but that doesn’t mean they’ve or cabinet, said local governments that promoted the implementation dropped it.” He told CNBC television The two sides are expected to of “Made in China 2025” while that he expects China to move into negotiate over U.S. demands for encouraging industrial growth and more advanced technologies and he stronger Chinese protections for has no objections to that. manufacturing upgrading would be given priority support. In its latest U.S. intellectual property, an end “We do object to using inappropriate guidance reported by state media on to forced technology transfers and methods, like stealing secrets, like December 12, references to “Made in greater market access to China for forced technology transfers, that sort China 2025” were omitted. U.S. companies. October-December 2018 October-December 48 Regional News

India- Japan sign $75 bn currency swap agreement India and Japan on October 29 75 billion,” said India-Japan Vision India...This facility will enable the concluded a USD 75 billion bilateral Statement issued after the summit- agreed amount of foreign capital currency swap agreement, a move that will help in bringing greater stability in foreign exchange and capital markets in the country. The agreement will further strengthen and widen the depth and diversity of economic cooperation between the two countries.

Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe held delegation-level talks during which the two leaders discussed a range of bilateral, regional and global issues including the situation level meeting between the two being available to India for use as in the Indo-Pacific region. “With leaders. and when need arises“. Recognising a view to enhancing financial and the unparalleled potential for economic cooperation, governments The swap agreement, a Finance development of relations between the of Japan and India welcomed the Ministry’s release said, should “aid in two countries, the prime ministers agreement to conclude a Bilateral bringing greater stability to foreign reviewed the significant milestones Swap Arrangement (BSA) of USD exchange and capital markets in achieved over the last four years. China largest internet user in Asia Bangladesh has been ranked fifth in all parts of the world in what is In India, internet penetration in last largest internet using country in termed the digital age and Asia has 10 years jumped from five million to Asia, according to Internet World shown impressive growth trends in 462 million by 2017. It is expected Stats. There were 0.1 million internet last 10 years. to grow up to 500 million this year. users in Bangladesh in 2000. The However, there is a rural-urban internet reached 80 million people South East Asia has seen the most divide in the country in terms of of the country by the end of 2017, penetration with China leading the internet penetration. reports Asia News Network. way. In the last decade, China had grown tremendously by providing In the last decade, internet China is leading the way with 772 internet from 22 million people to penetration in Indonesia grew from million, the highest number in 772 million people. China’s internet 2 million to 143 million. The country Asia, internet users in 2017, which availability rate has reached 55.8 is followed by Japan with 118 million. is followed by India, Indonesia and percent, exceeding the world average Although Japan had been far ahead Japan. The internet has grown widely by 4.1 percentage points. of other countries 10 years back with the internet penetration at 47 million in 2000. In the Philippines and Vietnam, 67 million and 64 million people respectively, have access to internet. Thailand made internet available to 57 million people in last 10 years.

South Korea was second to Japan in 2000 with internet availability to 19 million people. The internet reached 47 million people by the end of last year. Pakistan improved considerably from providing access to 0.13 million October-December 2018 October-December 49 Regional News

people a decade ago to 44 million by followed by Sri Lanka and Singapore lakh and 3 lakh people. Even with the end of last year. with internet availability to 6 million these impressive numbers, level of and 4 million people respectively. connectivity still has to improve Malaysia, Nepal and Myanmar made internet available to 25 million, Laos and Mongolia have provided considerably, especially in South 18 million and 16 million people internet availability to 2 million Asia. There are many challenges in respectively by 2017. By the end people. The smaller countries like terms of infrastructure, affordable of last year, 8 million people in Brunei and Bhutan have made devices, data plans and digital Cambodia had access to internet internet available to more than 4 literacy that need to be overcome. Alibaba's Jack Ma to set up an institute to train tech entrepreneurs for ASEAN countries after meeting Indonesian ministers invest “not only on e-commerce, but on the sidelines of the International also cloud computing, logistics and... Monetary Fund and World Bank infrastructure” in Indonesia, while meetings being hosted by Indonesia. also helping local businesses to grow.

The co-founder of Alibaba, China’s Indonesian Communications biggest e-commerce firm, said it is Minister Rudiantara told Reuters important for Indonesia to invest in in September that Indonesia was Jack Ma, executive chairman of human capital because “only when partnering with Ma to look into China’s Alibaba Group Holding, people improve, when people’s minds ways to harness Alibaba’s businesses said on October 13 that he discussed change, when people’s skills improve, to increase its exports, particularly with Indonesia’s government the then we can enter the digital period”. to China. McKinsey estimated in a possibility of opening an institute Indonesia has a shortage of trained report released on Aug. 30 that the to train tech entrepreneurs in the engineers in technology and Jack Ma value of Indonesia’s e-commerce Southeast Asian country. said Alibaba will train hundreds of market will surge to at least $55 developers and engineers on cloud billion (£42 billion) by 2022 from $8 Ma, who already advises the computing to help make Indonesian billion in 2017. government on e-commerce, said businesses more digital-savvy. he had talks with the government On October 12, Ma told a panel about opening a Jack Ma Institute of The country is a key market for discussion at the IMF and World Entrepreneurs, but no specific details Alibaba, whose cloud computing Bank meetings that “the internet is had been agreed. “We’re giving a lot of arm Alibaba Cloud launched a data designed for developing countries”, opportunities for young Indonesian center in Indonesia in March. Ma with “great opportunities in Africa” people to learn,” Ma told reporters said his company would continue to also. Many U.S. firms in China eyeing relocation as trade war bites: survey More than 70 percent of U.S. Sixty-four percent of the companies found. U.S. companies reported firms operating in southern China said they were considering relocating facing increased competition from are considering delaying further production lines to outside of China, rivals in Vietnam, Germany and investment there and moving some but only 1 percent said they had any Japan, while Chinese companies or all of their manufacturing to other plans to establish manufacturing said they were facing growing countries as the trade war bites into bases in North America. “While more competition from Vietnam, India, than 70 pct of the U.S. companies are the United States and South Korea. profits, a business survey showed on considering delaying or cancelling October 29. investment in China, and relocation Customers are slowing down orders or not placing them at all, Harley U.S. companies operating in China of some or all manufacturing out Seyedin, president of AmCham believe they are suffering more from of China, only half of their Chinese South China, told Reuters. “It could the trade dispute than firms from counterparts share the same consideration,” the AmCham report very well be that people are holding other countries, according to the said. back on placing orders until times poll by the American Chamber of are more certain or it could very Commerce in South China, which The trade war is shifting both supply well be that they are shifting to other surveyed 219 companies, one-third chains and industrial clusters, mostly competitors who are willing to offer from the manufacturing sector. towards Southeast Asia, the survey cheaper products, even sometimes at October-December 2018 October-December 50 Regional News a loss, in order to get market share,” Companies from other countries slower customs clearance. Analysts he said. also reported similar impacts as have warned of such a risk to U.S. their American Companies in the wholesale and counterparts. retail sectors have suffered the most from U.S. tariffs, while agriculture- The top concern of related businesses have been most companies surveyed hit by Chinese measures, the survey was the rising cost found. The survey was conducted of goods sold, which between Sept. 21 and Oct. 10, resulted in reduced shortly after the U.S. imposed tariffs profits. Other on another $200 billion worth of concerns included Chinese goods. That prompted difficulties managing Beijing to retaliate with additional procurement and tariffs on $60 billion of U.S. products, reduced sales. One- escalating a tariff war between the third of companies estimated the firms as China is increasingly unable world’s two largest economies. trade dispute had reduced business to match U.S. measures on a dollar volumes ranging from $1 million for dollar basis. The survey’s findings Nearly 80 percent of the survey to $50 million, while nearly one in add to evidence that export-reliant respondents said the tariffs have 10 manufacturers reported high- Chinese cities and provinces are knocked their businesses, with U.S. volume business losses of $250 tariffs having slightly more impact million or more. facing growing strains. Guangdong, than the Chinese ones. Around 85 China’s biggest province by gross percent of U.S. companies said they Nearly half the companies surveyed domestic product, reported a drop have suffered from the combined also said there had been an increase tariffs, compared with around 70 in non-tariff barriers, including in exports in the first eight months percent of their Chinese counterparts. increased bureaucratic oversight and from a year earlier. China agrees US$9b currency swap with Argentina China and Argentina signed a US$9 Now, this latest agreement will The agreement followed the G20 billion currency swap deal to boost "contribute to greater financial summit in Buenos Aires, as Chinese the crisis-stricken South American stability and also facilitate trade" President Xi Jinping was received country's foreign currency reserves, between China and Argentina, by his Argentine counterpart its central bank announced on according to the bank's statement. A Mauricio Macri for a state visit. The December 2. Struggling to recover currency swap sees two parties agree after a currency crisis earlier this to exchange a certain amount of two countries signed 30 trade and year, Latin America's third largest foreign currency at a pre-determined financial agreements in total. economy sought the help of the rate, protecting against fluctuations. International Monetary Fund - Argentina's central bank will be "We are extending cooperation on which approved a US$56 billion loan able to draw on these funds in an economic, agricultural, financial package. emergency. and infrastructure issues," Xi told a press conference. After Brazil, China is Argentina's second largest trade partner.

In 2017, the relationship was firmly in Beijing's favour: China exported US$17 billion of goods to Argentina, while importing US$8 billion of goods from that country.

Beijing and Buenos Aires also agreed another currency swap in 2014, which provided US$11 billion for Argentina's depleted treasury reserves. October-December 2018 October-December 51 Regional News

GM’s Cruise will get $2 billion from Honda to build a new self-driving car Cruise Automation, the self-driving together with a $750 million equity hailing service in Phoenix featuring unit of General Motors, is teaming investment in Cruise, brings the total fully driverless minivans later this up with Honda, one of the world’s commitment to $2.75 billion. year. largest automakers, the company GM bought Cruise in 2016 for $1 There was a flurry of partnerships billion to jump-start its self-driving and investments around self-driving efforts. The company says it plans cars in 2016 and 2017, but that to deploy its fully driverless cars, activity has since mostly died down, without steering wheel or pedals, for leading some critics to claim that commercial ride-hailing use as early the technology now finds itself in as 2019. the “trough of disillusionment.” To be sure, there are still huge sums of By committing to rolling out fully money exchanging hands despite this driverless cars in a shortened time lull. There was the Cruise-SoftBank announced on October 3. The two frame, GM is seeking to outmaneuver deal in May. And in August, Toyota auto giants will collaborate on a rivals both old and new in the and Uber said they would join purpose-built autonomous vehicle increasingly hyper-competitive race forces to build self-driving cars, in that can serve a “wide variety” of to build and deploy robot cars. Ford a deal that involved the Japanese use cases and be manufactured at has said it will build an autonomous automaker committing $500 million high volumes for global deployment. car without a steering wheel or pedals to the ride-hailing giant. There may Honda will devote $2 billion to by 2021, while Waymo is preparing be disillusionment in this trough, but the effort over 12 years, which, to launch its first commercial ride- there are huge piles of money, too. Google to spend $1 billion on new campus in New York Alphabet Inc's Google is investing Texas. In the month of November administration to create more jobs more than $1 billion on a new Amazon.com Inc (AMZN.O) said it domestically. Companies that have campus in New York, becoming the would open offices in New York and moved jobs overseas or closed second major technology company the Washington, D.C. area, creating factories have drawn sharp rebukes after Amazon to pick America’s more than 25,000 jobs. from President Donald Trump. financial capital to expand and create Mountain View, California-based The Wall Street Journal reported in thousands of jobs. The 1.7 million Google’s move to invest in prime November that Google was nearing a square-foot campus, called Google real estate on the lower west side deal to buy or lease an office building Hudson Square, will include leased of Manhattan also underscores the in New York City that could add properties at Hudson Street and growing importance of New York as a space for more than 12,000 new Washington Street, the company hub for innovation and an incubator workers. said in a blog post on December 17. for technology companies. With a The new campus will be the main plethora of white-collar workers and location for Google’s advertising good infrastructure, the city provides sales division, the Global Business a better option to other places that Organization. would require more investment.

Google hopes to start moving into “We’re growing faster outside the Bay two Hudson Street buildings by Area than within it,” said Ruth Porat, 2020, followed by a Washington chief financial officer of Alphabet Street in 2022 and will have the and Google. It is a “fairly sensible” Google’s first New York office at 111 capacity to more than double its New move for Google given the amount Eighth Avenue is one of the city’s York headcount, currently more than of available talent pool, Atlantic largest buildings that it bought in 7,000, in the next 10 years. Equities analyst James Cordwell 2010 for $1.77 billion. Earlier this said. It also makes sense for Google The company’s plans to invest year, the company announced a $2.4 as New York has been the center billion purchase of the Manhattan outside its home base mirror those for their core advertising business, Chelsea Market. It also has leased of other U.S. tech giants such as Cordwell added. Apple Inc (AAPL.O), which said space on Pier 57 jutting into the it would spend $1 billion to build U.S. corporations are also Hudson, which will create a four- a new 133-acre campus in Austin, under pressure from the Trump block campus. October-December 2018 October-December 52 Regional News

IBM to acquire software company Red Hat for $34 billion IBM Corp said on October 28 it Headquartered in Raleigh, North to dealmaking to gain scale and fend had agreed to acquire U.S. software Carolina, Red Hat charges fees to off competition, especially in cloud company Red Hat Inc for $34 its corporate customers for custom computing, where customers using billion, including debt, as it seeks features, maintenance and technical enterprise software are seeking to to diversify its technology hardware support, offering IBM a lucrative save money by consolidating their and consulting business into higher- source of subscription revenue. Red vendor relationships. margin products and services. The Hat is one of the very few companies transaction is by far IBM’s biggest in the cloud computing sector that IBM is hoping the deal will help acquisition. has both revenue growth and free it catch up with Amazon.com Inc, cash flow, Rometty, who has been Alphabet Inc and Microsoft in the It underscores IBM Chief Executive IBM’s CEO since 2012, said in an rapidly growing cloud business. Ginni Rometty’s efforts to expand interview with Reuters. IBM shares have lost almost a third the company’s subscription-based of their value in the past five years, software offerings, as it faces slowing while Red Hat shares are up 170 software sales and waning demand percent over the same period. for mainframe servers. IBM was founded in 1911 and is IBM, which has a market known in the technology industry capitalization of $114 billion, will pay as Big Blue, a reference to its once $190 per share in cash for Red Hat, a ubiquitous blue computers. It has 63 percent premium to 26 October’s faced years of revenue declines, as closing share price. Founded in it transitions its legacy computer 1993, Red Hat specializes in Linux “This acquisition we are clearly maker business into new technology operating systems, the most popular doing for growth synergies. This products and services. Its recent type of open-source software, which is not about cost synergies at all,” initiatives have included artificial was developed as an alternative Rometty said in the interview. The intelligence and business lines to proprietary software made by acquisition illustrates how older around Watson, named after the Microsoft Corp. technology companies are turning supercomputer it developed. JPMorgan Chase to build a Silicon Valley Campus JPMorgan Chase & Co. plans to JPMorgan has been moving further Capital Inc. More than 275 WePay open a fintech campus in Palo Alto, into fintech. Late last year, the employees along with its chief California, part of the bank’s efforts company acquired the startup executive officer and co-founder, Bill to attract more Silicon Valley talent. WePay, founded in 2008, to help its Clerico, will move to the Palo Alto The campus, scheduled to break 4 million small-business customers campus, according to the statement. ground early next year and open New York-based JPMorgan already in 2020, will have more than 1,000 accept payments faster, and has employees, JPMorgan said in a formed partnerships with fintech has an office on Mission Street in San statement on October 19. The new companies Bill.com and On Deck Francisco. financial-technology offices will make it easier for workers across business lines to host events and collaborate on new products and services, the company said.

“The addition of a first-class location is a key step for growing our presence in the Bay Area,” Bill Wallace, head of digital, consumer and community banking at JPMorgan, said in the statement. “This is an important market for us, and we’re looking forward to expanding our footprint and attracting more of the area’s top talent.” October-December 2018 October-December 53 WTO News Trade Dialogues: ICC and B20 present recommendations on strengthening global trade The International ChamberDG Azevêdo said: "Reaching make sure that the actions from the of Commerce (ICC) and B20 consensus amongst businesses is multilateral trading system and the Argentina, the business arm of just one element of the equation. WTO are in support of that as well." the G20, presented at the WTO You also have to bring your ideas Public Forum on 2 October a list and suggestions to the members Mr Funes de Rioja said: "We are all of recommendations on how to themselves, and work with them convinced of the need for a strong multilateral trading system, with the main values of open trade and a level playing field for all for achieving inclusive development. Certainly, the WTO has been the cornerstone of this system. We ask the WTO to have the proper mechanism, not only to avoid trade distortions but also to adapt the rules for the new digital age. We are ready to play our role in order to have a good multilateral system. We think the future of fair global trade is based on multilateralism.

"Business encourages the WTO to reinforce global trade in support of to drive your issues forward. "For capitalise on the current engagement inclusive growth and development. that to happen, it is vital to engage on regulatory cooperation in the Building on the outcomes of the with governments directly, and with area of investment. We believe a Business Forum held in Buenos Aires other stakeholders who also inform multilateral approach in investment at the end of 2017 and the Trade members’ positions. This must be a can be a cost-effective alternative to Dialogues meeting held at the WTO constant process. Therefore, I am bilateral negotiations. An investment in June 2018, these recommendations delighted you are using the Public facilitation agreement should focus cover e-commerce, investment Forum for this continued exchange." on transparency, predictability and facilitation, small businesses and cutting red tape." sustainable development. Secretary General Denton said: "We know it is a particularly challenging Mr Fernando Landa said: "When The meeting in June was the second time for the multilateral trading we talk about small and medium Trade Dialogues event with the system and the point we made when sized enterprises, the issue cuts business community. It was held we met in June was that the ICC across every trade aspect that you at the request of the ICC and the stands willing and able to engage in can think of. Predictable rules are B20, and facilitated by the WTO. constructive discussions to facilitate fundamental for MSMEs, and the Following the June meeting, four a continuing role for multilateralism availability of information is also groups of business representatives in global commerce. We think it is in important to them. Trade facilitation continued discussions on how to everyone's interest and we also think has a great impact on MSMEs. We deal with today's trade challenges. that it is the higher probability that need to better acknowledge that this will lead to peace and prosperity. trade is increasingly happening in The resulting business small packages, and we need to be recommendations were presented "We would like to see some prepared to deal with this. We need during a session at the Public Forum movements in the role of the WTO to consider how to revisit these areas by ICC Secretary General John to support e-commerce and the that are important for MSMEs. Denton, the B20 Chair Mr Daniel digital economy and also on the role Funes de Rioja and B20 Policy of the multilateral trading system in "We need to discuss things that Sherpa Fernando Landa. Director- supporting the achievement of the are simple and also those that are General Roberto Azevêdo attended Sustainable Development Goals. The difficult. The initiative on MSMEs is the session and delivered the opening business community is extremely one that should move forward. This is remarks. engaged in the SDGs and we want to something that we would encourage October-December 2018 October-December 54

WTO News our B20 leaders to get involved in and transparency provided by the senior business representatives to and to be proactive." multilateral trading system are discuss the challenges they face in crucial for supporting growth, global trade. Participants were from In their recommendations, the development and job creation. small and large enterprises, from business representatives reaffirm developed, developing and least- their strong support for the WTO and The Trade Dialogues event in June developed countries and from a stress that the stability, predictability 2018 brought together over 60 variety of sectors. Azevêdo welcomes G20 leaders’ commitment to improve the functioning of the WTO Director-General Roberto Azevêdo strongly welcomed the communiqué agreed by G20 leaders at the summit in Buenos Aires, Argentina, on 1 December and said he would work with all WTO members to improve and strengthen the trading system. The Director-General also called on the leaders to act urgently to address the blockage in the WTO dispute settlement system. Speaking in Buenos Aires at the close of the summit, the Director-General said: trade and of the multilateral trading “International trade and investment “This has been a very productive system in supporting growth, are important engines of growth, G20 summit. I have heard firm productivity, innovation, job productivity, innovation, job creation support for trade and the WTO creation and development. They call and development. We recognize the throughout my meetings with for improvements and "necessary contribution that the multilateral leaders in Buenos Aires and heard a reforms" to the functioning of the trading system has made to that end. range of ideas about strengthening WTO to ensure that it can continue The system is currently falling short our work. This is reflected in the playing this essential role. I will work of its objectives and there is room for leaders’ declaration, which I strongly with WTO members to take this improvement. welcome. The declaration represents forward in the interests of all.” a very important moment in tackling We therefore support the necessary the current challenges in global trade. The key paragraph of the declaration reform of the WTO to improve its With this statement, the leaders agreed by the G20 leaders on trade functioning. We will review progress underline the vital importance of issues is as follows: at our next Summit.” WTO members fix dates for Astana Ministerial Conference WTO members have agreed that 11 June 2020 in Astana, Kazakhstan. General Council. The General the organization’s next Ministerial The dates were endorsed at an 18 Council agreed on 26 July to Conference will take place from 8 to October meeting of the WTO’s accept Kazakhstan's offer to host the 12th Ministerial Conference in the Kazakh capital. Director- General Roberto Azevêdo met with President Nazarbayev of Kazakhstan in Astana on 27 September, where they reviewed preparations for the Ministerial Conference. The Ministerial Conference is the WTO's top decision-making body and the Marrakesh Agreement establishing the organization instructs members to hold one at least every two years. The event is October-December 2018 October-December 55 WTO News

attended by trade ministers and organization’s 164 members. The (MC11) was held in Buenos Aires in other senior officials from the previous Ministerial Conference December 2017.

WTO, IMF, World Bank and OECD heads call for new focus on trade as a driver of growth At a meeting in Bali, Indonesia, conference under the theme “How “Today the WTO covers around 98% on 10 October, the heads of four global trade can promote growth for of global trade. It is has overseen international organisations issued a all.” a historic opening of markets and integration of economies. Since 1980, average tariffs have been cut by two thirds.

The system has provided stability and predictability in global trade — holding firm even during the financial crisis. And, as a result, it has helped to fuel unprecedented growth and development around the world, as well as a dramatic reduction in poverty. The system has real value. So we have to keep working at it.

“We have to explore all avenues which could ease the current tensions DG Azevêdo said: and strengthen the trading system. strong call to ease trade tensions and We all know the risks of further refocus on the importance of trade “The trading system is not perfect escalation — risks to the economy and the multilateral trading system — but it represents the best efforts and risks to the trading system itself, in fuelling economic growth. This of governments around the world, which would multiply the economic call was made by Director-General working together for 70 years, to find risks over the long term. We can’t Roberto Azevêdo, together with ways to cooperate on trade issues. It let that happen. We need trade and IMF Managing Director Christine took a lot of people and a lot of time the trading system to play their part Lagarde, World Bank President Jim to push the boulder this far up the in fuelling growth — just as they Kim and OECD Secretary General hill. Even keeping it in place requires have done so effectively for seven Angel Gurria, at a jointly-organised constant effort. decades.” WTO, UNCTAD, ITC sign MoU to provide businesses with better access to trade data The WTO, the United Nations UNCTAD agree to further develop the easier for companies across the world Conference on Trade and platform, with the aim of improving to increase their participation in Development (UNCTAD) and the quality and accessibility of trade world trade and reduce trade costs. It the International Trade Centre information needed by businesses – will help policymakers make better- (ITC) signed on 23 November a and in particular, micro, small and informed decisions about trade and Memorandum of Understanding medium-sized enterprises (MSMEs) investment policies and will ensure to advance the development of an - to access market opportunities. that the international community online platform — the Global Trade As part of the agreement, the three provides better support to MSMEs. Helpdesk — aimed at providing organizations will provide technical businesses, and particularly small assistance to developing countries WTO Director-General Roberto businesses, with faster and easier to help them maintain up-to-date Azevêdo said: access to trade data and information information in the Global Trade “Gaining access to information on on potential export markets. Helpdesk and will raise awareness among MSMEs about how to benefit tariffs and other requirements for An early version of HelpMeTrade. from this trade information. accessing export markets imposes org was launched at the WTO’s 11th costs on firms wishing to trade, and Ministerial Conference in Buenos By making trade data freely available for small businesses this can be a Aires, Argentina, in December 2017. through a user-friendly interface, the substantial barrier to market entry. Under the MoU, the WTO, ITC and Global Trade Helpdesk will make it The Global Trade Helpdesk is a October-December 2018 October-December 56

WTO News joint endeavour to help remove this coordination and efficiency on trade and inspection processes), business barrier by providing businesses with information. Trade and market opportunities (such as market prices the critical information they need. It intelligence is fundamental for and upcoming events) and current will be particularly helpful for micro, companies’ decision-making and trade statistics. Development of the small and medium-sized enterprises, competitiveness, in particular for Helpdesk will take place over three which need reliable data to pinpoint export opportunities. I look forward to continuing this partnership with UNCTAD and ITC – and with WTO members. Much of the success of this initiative will depend on the engagement of all WTO members to make information related to trade available so that it can be fed into the Global Trade Helpdesk. We all have a role to play to make this vital project a success.”

Mukhisa Kituyi, Secretary-General of UNCTAD, said:

“The Global Trade Helpdesk is a practical tool that enables companies to access the data they need to make micro, small and medium sized three-year phases. However, it is informed decisions about trade. It enterprises, and the Global Helpdesk scheduled to be fully functional in is an innovation that helps level the is an important platform to facilitate phase 1. information playing field. Working greater coordination amongst the hand in hand with our partners at three agencies in delivering effective In addition to drawing on data from the ITC and WTO, we’re addressing trade-related capacity building on ITC, UNCTAD and the WTO, the the needs of the trade community in the ground." Global Trade Helpdesk will integrate a concrete fashion, and helping to The Helpdesk will containtrade information from a number of transform actions into real results.” comprehensive information other international organizations and development banks, including the Arancha González, Executive from various sources on market Inter-American Development Bank Director of the ITC, said: requirements (such as tariffs, taxes, relevant health and safety standards (IDB), the United Nations Industrial ‘‘ITC is extremely pleased to for export products), export and Development Organization partner with UNCTAD and import procedures (such as pre- (UNIDO) and the World Bank the WTO to ensure greater shipment formalities, certification Group. World Trade Report 2018 highlights transformative impact of digital technologies on trade The 2018 edition of the WTO’s The report shows that digital The share of services in global trade is flagship publication, the World technologies are likely to further projected to grow from 21 per cent in Trade Report, finds that digital reduce trade costs and boost trade 2016 to 25 per cent in 2030. The report technologies — namely the Internet significantly, especially in services also finds that the reduction in trade of Things, artificial intelligence, 3D and for developing countries. costs could be especially beneficial printing and Blockchain — will have Global trade is projected to grow by for micro, small and medium sized enterprises (MSMEs) and firms from a profound impact on global trade, an additional 2 percentage points developing countries, provided they adding up to 34 percentage points annually between 2016 and 2030 as a result of digitalization, falling have the ability to keep up with the to trade growth by 2030. However, trade costs and the increased use of adoption of digital technologies. In they could also create a challenging services. the best scenario, developing and environment for those seeking to least-developed economies' share in keep up with the latest innovations. This corresponds with a 31-34 global trade is predicted to grow to The Report was launched on 3 percentage point higher trade growth 57 per cent by 2030, from 46 per cent October at the WTO Public Forum. over 15 years. in 2015, whereas if they cannot keep October-December 2018 October-December 57 WTO News

up, this share is predicted to rise to Digital technologies can also quality of digital infrastructure and 51 per cent. significantly affect what the world market size as well as institutional and regulatory determinants of comparative advantage, including intellectual property protection, might become more relevant. 3D printing, furthermore, may to some extent reduce the need for outsourced assembly, the number of production steps and other factors related to global value chains.

The report identifies certain areas which may warrant international cooperation. These include key initiatives being undertaken by The report discusses how digital trades. For example, remote multilateral organizations such as technologies can unlock savings, controlled robotics have led to facilitating a favourable legal and such as through better route revolutionary advances in trade regulatory framework, competition- planning, autonomous driving and in services and the emergence of related issues, intellectual property smart inventories made possible by new services such as telesurgery. rules, supporting MSMEs, artificial intelligence and robotics. Enhanced technological capacities promoting digital inclusion, and Blockchain solutions — a system of which allow faster and simpler addressing challenges related to processing of traded products could decentralized, digital transactions — trade facilitation and infrastructure also foster trade in time-sensitive, can reduce time spent on customs for information communication certification-intensive and contract- compliance and logistics. The technology. The report concludes intensive goods. Internet of Things, the networking that, overall, the expansion of and processing capabilities of The report argues that new digital trade holds the potential to everyday objects, can help to improve technologies are likely to change generate considerable benefits if it operational efficiency throughthe established ways the world takes place under conditions that better preventative maintenance trades, with comparative advantages adequately address important public of machinery and products. These predicted to change across economies. policy challenges. Issues concerning technologies can therefore reduce AI, 3D printing and advanced inclusiveness, privacy protection transportation and storage costs, robotics could reduce the role of and cybersecurity are likely to figure which represent a major share of labour as a source of comparative prominently in debates on the future overall trade costs. advantage, while factors such as the governance of digital trade. WTO joins with IFC, regional development banks and IMF to boost financial inclusion in trade WTO joins with IFC, regional During the event Director-General this gap affects developing countries development banks and IMF to Roberto Azevêdo said: and smaller businesses the most. boost financial inclusion in trade Today, 60% of trade finance requests “Despite the importance of trade Event on 9 October organized by the by SMEs are rejected. finance, a number of problems WTO and the International Finance have emerged since the financial “Opportunities for growth and Corporation, entitled “Financial crisis. Supply and demand have development are being lost. So it's Inclusion in Trade: Reducing the become unbalanced. Perceived clear to me that action is needed. Global Trade Finance Gap”, in Bali, regulatory risk, combined with the Over recent years we have been Indonesia. At a special session low capacity of the financial sector building a coalition to that end. during the Annual Meetings of the in some countries, has resulted in Philippe (Le Houérou, CEO of the World Bank and the International big gaps in provision. Today, the International Finance Corporation) Monetary Fund (IMF) in Nusa Dua, Asian Development Bank estimates and I joined forces and started Bali, Indonesia, the organizations that the global gap in trade finance reaching out to the heads of the committed themselves to finding is about $1.5 trillion. This gap regional development banks, the ways to close the gaps in trade represents a significant barrier to Chair of the Financial Stability finance provision. trade. It is of particular concern that Board, and many others. Together October-December 2018 October-December 58

WTO News

I think we've taken some important actions which are needed in each of ideas and solutions that make a steps.” these areas. real difference. Working with a range of partners — including the DG Azevêdo outlined the significant “We need to make global trade more progress that has already been inclusive. But trade inclusion needs private sector — can help provide made in recent years, including to financial inclusion. So we need momentum to this work,” DG enhance the trade finance programs to continue developing concrete Azevêdo said. of key institutions. These programs are expected to support over $35 billion of trade this year, which is an increase of more than 50% over two years. He also outlined progress in addressing the knowledge gaps in local financial institutions, and in increasing dialogue with regulators to ensure that necessary financial regulations do not have unintended consequences for trade finance, which is a very low risk form of lending. He pointed to further DG Azevêdo and Premier Li Keqiang discuss how to safeguard the WTO Director-General Roberto Azevêdo in the context of the 40th anniversary playing their full role in fuelling visited Beijing, China, on 6 November of the country’s process of reform growth – just as they have over the to participate in the “1+6” roundtable and opening-up. last 40 years. However this could be undermined by the current tensions in global trade. Continued escalation is a real possibility, so this is an extremely serious situation. It threatens stability, jobs and growth. We have to act now, both to ease tensions and strengthen the trading system.

“The situation is unprecedented, both in terms of risks and opportunities. The stakes are higher than ever. Doing nothing is not an option. We need significant political engagement and political will to ensure that the trading system is equipped to meeting hosted by Chinese Premier The Director-General said: meet the challenges of today and Li Keqiang, together with five tomorrow. I hope that we will see other heads of major international “China's transformation over the last this at the G20 summit in Buenos economic organizations and 40 years has been truly remarkable. Aires at the end of the month. I will financial institutions (the IMF, World I am pleased that the WTO has be there – and I will be bringing a Bank, ILO, OECD and the Financial been part of this historic journey, by very clear message about the need to Stability Board). They discussed the facilitating the process of opening- preserve and strengthen the trading current global economic landscape, up, reform and liberalisation. system in the interests of all. I count the need to safeguard the multilateral Looking ahead, we need trade and on China's continued leadership and trading system, and China’s economy the trading system to continue engagement to that end.” DG Azevêdo and Prime Minister Abe discuss easing global tensions and strengthening WTO Director-General Roberto Azevêdo Shinzō Abe in Tokyo on 8 November in global trade, efforts to ease the met with Japan’s Prime Minister to discuss the current situation growing tensions between major October-December 2018 October-December 59 WTO News

trading partners and the emerging 'WTO reform and the path forward' with other markets. Prime Minister debate on strengthening the WTO. and delivered a keynote speech Abe signed a free trade deal with The Director-General welcomed at the International Symposium the EU in July. The CPTPP is set to enter into force at the end of the year. And of course Japan is a very prominent member of the WTO. In fact, Japan's representative to the WTO, Ambassador Junichi Ihara, is currently the chair of the General Council. This is one of the most important roles in the organisation. All of this shows how much you value trade and the trading system – including the WTO.

“In these times of rising tensions, and questions about the WTO's future, I think it's vital that we remember the system's fundamental importance. Japan’s continuing leadership on for the 60th Anniversary of the In my view we must work together these points. Establishment of the Japan External to ensure that we can meet the trade Trade Organization, JETRO. challenges of today, and be ready to During his visit the Director-General face the challenges of tomorrow. I am also met with Japan's Minister for In his remarks to the JETRO event confident that we can do this – and Foreign Affairs, Mr Taro Kono, and the Director-General said: ensure that the global trading system the Minister for Economy, Trade goes from strength to strength. I and Industry Mr Hiroshige Seko. In “Japan is currently the world's 4th know that we can rely on Japan's addition, he took part in a roundtable largest exporter of goods and the leadership and support in that discussion with Keidanren (the Japan 4th largest importer. One out of endeavour. In the end, this is how Business Federation), spoke at a panel every 10 Japanese jobs is linked to we will continue to support growth, discussion organized by the Japan exports. You are also working to development and prosperity for the Institute of International Affairs on further increase your integration years to come.”

DG Azevêdo meets Prime Minister Trudeau in Ottawa; welcomes strong support for WTO Director-General Roberto Azevêdo today with Prime Minister Trudeau to convene a meeting of ministers met with Canadian Prime Minister providing real leadership on this issue. in Ottawa this week to discuss how Justin Trudeau in Ottawa on 24 This is very welcome, particularly potential WTO reforms might help October to discuss the current state in the current circumstances with to address some of the current issues. of global trade and the emerging trade tensions rising between major I look forward to that discussion and discussions about reform of the trading partners. I congratulate the to Canada’s continued engagement WTO. DG Azevêdo welcomed the Prime Minister on Canada’s initiative h e re .” Prime Minister’s strong support for multilateralism and for the WTO and his commitment to work to strengthen and improve the trading system. The meeting took place ahead of a meeting of ministers to discuss WTO reform, which has been convened in Ottawa by the Canadian government.

The Director-General said:

“Canada has a very strong history of support for the multilateral trading system, and this is continuing October-December 2018 October-December 60

About ICC Bangladesh WTO News International Chamber of Commerce (ICC) - The world business organization was founded in 1919 by a few visionary business leaders of Europe immediately after the First World War; having its HQrs. in Paris. ICC has been promoting Free Market Economy, formulating various rules and guidelines for cross border trade and investment. ICC’s over 6 million member companies in over 130 countries have interests spanning in every sector of private enterprise. 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. The United Nations (UN) General Assembly on 13 December 2016 has granted Observer Status to the International Chamber of Commerce-the world’s largest business organization. The decision-taken by 193 members of the UN General Assembly during its 71st session in New York - is the first time that a business organization has been admitted as an Observer at the UN General Assembly. Bangladesh National Committee of ICC, established in 1994, is comprised of major Chambers of Commerce & Industry, Business Associations, Stock Exchange, Banks, Non-banking Financial Institutions, Insurance Companies, Trans-national companies, Law Firms and large Corporate Houses having significant interest in international trade. 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 H.E. Mr. Md. Abdul Hamid. 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 President of the People’s Republic of Bangladesh H.E. Mr. Md. Abdul Hamid. 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. As part of its activities, ICC Bangladesh has been organizing Workshops / Seminars on International Trade Finance, mainly for bankers of Bangladesh, in various countries since 2014. So far such events have been organized in Kuala Lumpur (April 2014); in Colombo (February 2015); in Kunming (August 2015); in Yangon (November 2015); in Hanoi ( April 2016); in Jakarta ( April 2017), in Vienna (May 2017); in Bangkok ( December 2017) and in Phnom Penh (April 2018) . 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. October-December 2018 October-December 61