Mexico said Monday it will increase tariffs on about 90 U.S. products in retaliation for last week's decision to end a pilot program that allowed some Mexican trucks to transport goods in the United States. Economy Secretary Gerardo Ruiz Mateos said the U.S. decision violates a provision of the North American Free Trade Agreement that was supposed to have opened cross-border trucking by January 2000. "We consider this U.S. action to be wrong, protectionist and a clear violation of the treaty," Ruiz Mateos told reporters. "By deciding to protect their trucking industry, they have decided to affect other countries and the region." The measure will affect about $2.4 billion in trade involving approximately 90 agricultural and industrial products from 40 U.S. states. Ruiz Mateos said the department later this week will publish a list of the products, which he said were chosen to represent a large number of U.S. states and significant trade items. He did not specify how much tariffs would be increased, but said "the retaliatory measures are the cost the United States is going to have to pay for failing to fulfill its obligations under NAFTA." The action alarmed Rep. Kevin Brady of Texas, the ranking Republican on the trade subcommittee of the House Ways and Means Committee. Wheat and beef are two of his states top three exports. "We've got a tough economy. We are going to lose sales, ag sales of exports that we are selling into Mexico and that may well go to other countries," he said. "If you raise (duties), our wheat or beef may not be competitive to Mexico consumers." A pilot program begun in 2007 that had allowed a few Mexican trucks beyond a border buffer zone died last week when President Barack Obama signed a sweeping government bill that barred spending on it. But the administration says Obama has asked the office of the U.S. Trade Representative to work with the Department of Transportation, State Department and Congress to create a new trucking program. Rep. Sander Levin, a Michigan Democrat who chairs the Ways and Means trade subcommittee, said he was "disappointed that the Mexican government has decided to retaliate, given that the Obama Administration has publicly committed itself to working with the Congress and the Mexican government to address this and related issues."

China to voice concern over import curbs without reaching WTO New Delhi, Mar 16 (PTI) -- China is likely to convey its concern to India over New Delhi trying to restrict import of Chinese goods, even though Beijing has not "yet" dragged its neighbour to the WTO on the issue. Chinese Vice Minister of Commerce Zhong Shan is expected to convey his country's strong resentment over India resorting to protect its industry against imports from China, when he meets Commerce Secretary G K Pillai here this week, sources said. "We have nothing on this yet," WTO spokesperson said in an e-mail from Geneva when asked whether China has lodged any formal complaint against India. China was upset over India slapping a ban on import of Chinese toys on January 23, which was partially eased within six weeks, provided the toys conformed to international health and safety standards. The official Chinese media had reported that the country was mulling to drag India to WTO for contesting the ban. However, Pillai is expected to confront Zhong with data showing surge in imports from China. While the bilateral trade has seen a sharp rise in the fiscal 2008-09, it is highly skewed in favour of China. In 2007-08, India's exports to China stood at USD 10.83 billion, while imports was USD 27.11 billion.

U offers US bigger beef quota in hormone row-sources By Darren Ennis BRUSSELS, March 16 (Reuters) - The European Commission is offering to double the preferential quota for beef imports from the United States as part of a deal to end a long-standing dispute over beef trade, EU sources familiar with the plan said. Last week, Washington said it would hold off on applying new retaliatory duties to EU products while it negotiates with Brussels on a solution to the trans-Atlantic row, sparked by an EU ban on U.S. imports of hormone-treated meat in 1988. But the sources told Reuters the plan by the EU executive -- which oversees trade and food safety policy for the 27-nation bloc -- did not include lifting the embargo which Brussels says is based on scientific advice and is not protectionist. "The proposal is aimed at giving a bigger incentive to U.S. beef farmers to export normal-treated beef in return for the U.S. ending its sanctions," one EU source with knowledge of the proposal said. "The ban on hormone-treated beef stays. The Commission was quite clear on that," another EU source said, adding the proposal was discussed at a regular closed-door meeting of EU trade officials on Friday. The United States and Canada currently pay a reduced tariff of 20 percent on the value of the first 11,500 tonnes of beef exported into the EU. Any beef imported above this quota must pay a combined tariff of 12.8 percent duty plus 3,000 euros cash ($3,877) per tonne. Under the new proposal, the reduced quota would be increased to between 20,000 and 30,000 tonnes in return for an end to U.S. sanctions on EU goods -- known as "carousel measures" -- worth around $116.8 million a year, the EU sources said.

Safeguard duty on 12 Chinese items likely ; India is likely to impose safeguard duty — an emergency... RITUPARNA BHUYAN New Delhi 14 March 2009 Business Standard India is likely to impose safeguard duty — an emergency import duty — on about 12 products originating from China. The Directorate General of Safeguards (DGS) under the finance ministry has already recommended safeguard duty on import of soda ash and certain aluminum products from China, earlier this year. “The government will initiate safeguard duty investigations on about 12 to 13 products belonging to chemicals and base metals sector. Import of these products from China has surged in the past few months, causing injury to the industry. In most cases, this provisional duty is likely to be for a period of 200 days,” said a government official in the know. Proceedings for imposing safeguard duty on Chinese Nylon Tyre Cord Fabric have already been initiated by the DGS on February 6 this year. Significantly, these moves to protect the domestic industry come at a time when India’s industrial production contracted for two consecutive months ending January 2009.

Brazil To Put Dumping Surcharge On Rayon Fiber From 6 Nations BRASILIA (Dow Jones)--Brazil will apply surcharges on rayon fiber imported from six countries for up to six months as a penalty for alleged dumping practices, according to a resolution adopted Monday by the government-administered Chamber of Foreign Commerce, or Camex. The measure, which was published in the country's federal register, will apply surcharges of between $0.06 and $1.59 per kilogram on imports from Austria, India, Indonesia, China, Thailand and Taiwan. The government said the surcharges were applied as part of an investigation requested by local manufacturers Vicunha Textil S.A., Jofege Fiacao and Tecelagem Ltda., and Textil Carmem Ltda.

Vanuatu Trade Minister defends WTO accession Radio New Zealand International16 March, 2009 UTC Vanuatu’s Trade Minister, James Bule, has defended the government’s move to join the WTO. The government recently re-entered negotiations for its accession to the WTO after pulling out of the process in 2001 citing "technical reasons". However some local NGOs and politicians have questioned what benefit the country will get from joining the WTO. Policy analyst John Salong says that if the government is serious about improving trade for ordinary ni-Vanuatu, it should first look at improving the internal infrastructure for market access. However Mr Bule says joining the WTO is important as it offers a wide range of privileges to Vanuatu, as a country with Least Developed Country or LDC status. “We need to join so that we can be provided with those assistance. And now we are enjoying the IF programme (Integrated Framework) which is one of the (examples of) assistance that is provided by WTO, funds put aside by WTO specifically to LDCs to address the trade.”

African trade ministers to meet over EPAs, WTO negotiations APA-Addis Ababa (Ethiopia) African ministers will gather in Addis Ababa from 19 to 20 March to discuss economic partnership agreements (EPAs) and Doha Round negotiations. EPAs have been under negotiations for the past few years among African countries and the European Union but there has been a division among a few African states. Few African countries have signed EPAs while many are still demanding further negotiations with the EU to amend some of the clauses in the agreements. The ministers will address the trade issues and decide on the next steps forward in the respective negotiations. According to the program, a key item on the agenda will be an interactive session between African ministers and other key players in the Doha Round of the WTO and EPA negotiations including EU Trade commissioner, United States Trade representative, Brazilian and Indian ministers of Trade, director general of the WTO and UNCTAD secretary general. The meeting comes at a time when there is a global financial crisis already affecting a number of African countries in their trade with the EU and the rest of the world countries.

African leaders petition G20 for more funds By Adrian Croft and Carolyn Cohn LONDON, March 16 (Reuters) - African countries petitioned the G20 on Monday for an increase in funding and easier access to international financing to help them through the global financial crisis. More than 20 African leaders and ministers met British Prime Minister Gordon Brown to present a joint African position before the G20 summit of old and emerging economic powers that Brown will host on April 2. Brown will transmit their message to the G20, which will examine how to restart the stalled world economy and reform global financial institutions. South Africa is the only African member of the G20, although Brown has invited umbrella groups the New Partnership for Africa's Development and the African Union Commission to the summit.

SA may be excluded from EU partner deal MATHABO LE ROUX 16 March 2009 Business Day (South Africa) Meeting in Swakopmund fails to break deadlock over SA’s concerns about economic partnership agreement Trade and Industry Editor THE European Union (EU) is likely to move towards the official signing of an interim economic partnership agreement, known as an EPA, with countries of the Southern African Development Community (SADC) that will exclude SA. A meeting last week in Swakopmund, Namibia, between the European Commission (EC) and the SADC group failed to break an impasse over concerns SA has, despite significant further concessions by the EU to sweeten the deal. A source close to the talks, who declined to be named, said it was likely the EC would ask to be given the go-ahead to prepare to sign the interim deal as all attempts to bring SA back into the talks had failed. This will see Botswana, Lesotho, Namibia and Swaziland sign the deal, leaving SA, the only other member of the Southern African Customs Union, out of the deal. The EU agreed to favourable terms for infant industry protection, which could see the countries in the SADC configuration exclude sectors earmarked for development from liberalisation. The EU also allowed for existing export taxes — used by countries to encourage beneficiation — to continue and gave scope for new export taxes to be introduced.

APEC to make continuous efforts in development and trade facilitation: official Gao Chuan SINGAPORE, March 16 (Xinhua) -- The Asia-Pacific Economic Cooperation (APEC) will continue its efforts to develop its strength and diversity and facilitate trade in the region, a senior APEC official said here on Monday. Speaking at a seminar on Monday, Michael Tay, current Executive Director of the APEC Secretariat, said that the APEC will continue to do what it does best and develop on its strength and diversity. The seminar, "APEC: Relevant or Passe?", was held at the Institute of Southeast Asian Studies, focusing on discussions about whether the APEC has the ability to make more meaningful contribution to Asia-Pacific economies than being a "talkfest."

Poor states unable to plug West's labour gap-report BRUSSELS, March 16 (Reuters) - Workers in poor nations lack the skills to help plug growing shortages in the rich world in jobs ranging from plumbing to medicine, the World Bank said in a report released on Monday. The global lender urged governments to look beyond the current economic and financial crisis and start now to coordinate international training programmes to pre-empt a labour shortage "crisis" in decades to come. "Training for the global labour market of 2030 and beyond must start now," said Leila Zlaoui, the report's main author, urging cooperation between labour-surplus and labour-deficit areas to better educate future workers and facilitate migration. The labour force of regions such as Europe, North America and China could decline by 215 million workers between now and 2050 because of ageing populations, declining fertility rates and increased longevity, the report said. It projected growth of more than 500 million workers in some regions, including the Middle East and North Africa. Training professionals, from plumbers to doctors, takes roughly 15 to 20 years, but regions with a future labour surplus, such as the Middle East and North Africa (MENA), lack the ability to train such workers, she said.

Swiss Fin Min: Pressure On Tax System Unacceptable ZURICH (Dow Jones)--Swiss President and Finance Minister Hans-Rudolf Merz Monday said the pressure put on the Swiss tax system by some partner and neighboring countries is unacceptable. "Some neighboring and partner countries of ours are - through threats - putting pressure on the Swiss tax system. That's unacceptable," said Merz in a video pod cast published on the Swiss Finance Department Web site. Merz said he advocates Switzerland's compliance with international standards set by the Organization for Economic Cooperation and Development, OECD. "I'm convinced that applying the full international standards (...) will help increase the acceptance" of Switzerland and its tax rules he said. However, the Swiss government sticks to banking secrecy, he added. "It's secured through our constitution and further single laws," he said. Earlier Monday, German Finance Minister voiced concerns regarding the willingness of Switzerland to implement the OECD tax standards. (END)