Synopsis India and the UK reviewed their strategic partnership, focusing on finalizing a free trade agreement, enhancing defence cooperation, and counter-terror collaboration. Both nations aimed to identify new areas for collaboration, with discussions covering economic ties, technology, and security initiatives and fostering innovation in emerging technologies, clean energy, and cultural linkages. India and the UK on Tuesday reviewed their ties with a focus on the early conclusion of a mutually beneficial free trade pact, boosting counter-terror cooperation and enhancing defence ties. At the second edition of the India UK foreign and defence dialogue held here, the two sides agreed to revitalise the ties by identifying new focus areas of collaboration. The Ministry of External Fairs (MEA) said both sides discussed the entire gamut of strategic partnership and emphasised the importance of a sustained high-level engagement to advance the dynamic relations. "The delegations reviewed progress under the India-UK Roadmap 2030 and agreed on the need to revitalise the partnership by identifying new focus areas of collaboration and work towards a refreshed roadmap," it said. The two sides unveiled the 10-year roadmap in 2021 to expand ties in the key areas of trade and economy, defence and security, climate change and people to-people connections among others. The MEA said the discussions covered key priorities like strengthening economic and trade ties with a focus on the early conclusion of a mutually beneficial FTA and bolstering defence and security ties including in areas of cyber and counterterrorism. Following his talks with his Indian counterpart Narendra Modi on the sidelines of the G20 summit in Rio de Janeiro, British Prime Minister Keir Starmer said last month that the negotiations for the free trade pact will be relaunched in the new year. The India-UK talks for the proposed FTA began in January 2022. The two sides have held 14 rounds of negotiations on it so far. At the 2+2 dialogue, the two sides also discussed ways to foster innovation in critical and emerging technologies, deepen cooperation in clean and green energy and technology, health and enhance cultural, educational and people to-people linkages, the MEA said in a statement.
Source: Economic Times
Synopsis The Central Board of Indirect Taxes & Customs (CBIC) claried that media reports about GST rate changes recommended by the Group of Ministers (GoM) are speculative. The GoM, composed of state ministers, is yet to nalize and present its recommendations to the GST Council. The Council will consider these recommendations in their next meeting. The Central Board of Indirect Taxes & Customs (CBIC) has said that media reports regarding the Group of Ministers (GoM) recommendations on GST rate changes regarding various goods and services are premature and speculative. In a social media post, the CBIC said a Group of Ministers was constituted to look into the GST rate rationalisation apart from certain other issues referred by the GST Council. The GoM comprises of ministers from the States of Bihar, Uttar Pradesh, Rajasthan, West Bengal, Karnataka and Kerala with the Deputy Chief Minister of Bihar as the Convenor. The GST Council is chaired by Finance Minister Nirmala Sitharaman and ministers of all the states and Union Territories. This council is empowered to recommend GST rates including changes to them. The GoM is only a recommendatory body. The GST Council has not yet deliberated on any GST rate changes. The Council has not even received the recommendations of the GoM and they group is yet to nalise and present its recommendations. After the recommendations are received, the Council will take a nal view, said the statement on social media. — cbic_india (@cbic_india) Sitharaman also posted a social media post on X saying the nance ministers from various states are working to address GST rate change. "Important and timely. Thanks @cbic. Finance Ministers from various states in the GoM are working to address GST rate changes. Thereafter, the GST Council, consisting of all state FMs will take up their recommendations, when they next meet. Speculation is better avoided," said Sitharaman in a post on X.
Source: Economic Times
Synopsis The government is not considering adding new sectors to the PLI scheme, which aims to boost manufacturing and exports. Current focus includes electronics, pharmaceuticals, and textiles, with signicant progress in mobile phone exports and job creation. Efforts are ongoing to address challenges in the gems and jewellery sector. New Delhi: The government on Tuesday said it is not considering any proposal to include new sectors under the production linked incentive (PLI) scheme. Minister of State for Commerce and Industry Jitin Prasada said approved products under PLI schemes have been strategically selected to align with national goals, increase production capacity, enhance global competitiveness and promote exports in critical sectors such as electronics, pharmaceuticals, and textiles. "As of now, no such proposal for addition of new sectors under PLI scheme is under consideration," he said in a written reply to the Lok Sabha. The schemes for 14 key sectors have been announced so far with an outlay of Rs 1.97 lakh crore (over USD 26 billion) to enhance India's manufacturing capabilities and exports. He said actual investment of Rs 1.46 lakh crore have been realized till August 2024 across 14 sectors, which has resulted in incremental production/sales of over Rs 12.50 lakh crore and employment generation of 9.5 lakh. "PLI schemes have witnessed exports surpassing Rs 4 lakh crore with significant contributions from sectors such as electronics, pharmaceuticals, and food processing," the minister said. He informed the house that export of mobile phones has increased more than two-fold since the inception of PLI scheme. As of now 755 applications have been approved across the country in the 14 sectors. The import of mobile phones has decreased from Rs 48,609 crore in 2014-15 to Rs 7,665 crore in 2023-24. While the exports rose from Rs 1,566 crore in 2014-15 to more than Rs 1,28,982 crore. Replying to another question, he said the major reasons for the recent challenges in the gems and jewellery sector are reduced demands in major export destinations and supply side challenges such as G7 sanctions on Russia- originated diamonds. "Department of Commerce, in tandem with industry stakeholders including Gems and Jewellery Export Promotion Council (GJEPC), is undertaking initiatives focusing new markets and new products, while sustaining existing major markets, to solidify India's position in the gems and jewellery sector," Prasada said.
Source: Economic Times
The Maharashtra government aims to achieve the ambitious target of doubling the state’s GDP to $1 trillion by the end of this decade, a senior official has said. The BJP-led Mahayuti alliance recently secured a landslide victory in the Maharashtra Assembly elections and will retain power in the state. The new government is set to be formed on December 5. At $1 trillion, Maharashtra’s GDP would surpass the current GDP of Singapore, Switzerland, Belgium, Sweden, the UAE, and Thailand, among others. The new government seeks to achieve a 14 per cent compound annual growth rate (CAGR), increasing GDP from the current $500 billion to $1 trillion. This growth would raise per capita GDP in the state to $6,500 from the current $3,300. In a meeting organised by Jefferies between institutional investors and senior state government officials, Kaustubh Dasve, joint secretary and officer on special duty to Maharashtra Deputy Chief Minister Devendra Fadnavis, outlined the vision to double the state’s GDP. The plan includes increasing the share of manufacturing by 5 percentage points to 21 per cent of state GDP by the end of the decade. The government has identified 16 industries where Maharashtra has a competitive edge and six sunrise industries, including electric vehicles and semiconductors, to boost employment and avoid full automation. With Mumbai as a financial centre and Pune as an IT hub, the state’s services sector accounts for 59 per cent of GDP, which the government plans to maintain. Officials said they intend to persuade large global capability centres (GCCs) to set up in Pune and seek investments in city infrastructure, such as metro rail projects and airports.The state will also advance power sector reforms. It initiated the grid separation of electricity in 2017 to reduce cross-subsidisation losses between industry and agriculture. The process is nearing completion and will allow the state to offer industrial power tariffs of Rs 5.50–6 per unit—a reduction of Rs 2 per unit—making it highly competitive among Indian states. Additionally, the government plans to increase power generation capacity from 45 GW to 84 GW over the next five years. Improving the “speed of travel” will also be a priority. The government’s focus for Mumbai includes expanding coastal roads and metro lines, developing the new airport as a growth hub, and completing the high-speed rail project. Defending the women’s income transfer scheme, officials stated that it accounts for less than 10 per cent of the state’s $60 billion in revenues. The government does not plan to raise taxes and will instead rely on growth to fund its initiatives. Maharashtra continues to lead in attracting foreign direct investment (FDI), securing 31 per cent of cumulative FDI equity inflows—$78 billion—from October 2019 to June 2024. Karnataka was the second highest with $53 billion, followed by Gujarat at $40 billion.
Maharashtra growth agenda
• Double the state’s GDP by the end of the decade
• Increase the share of manufacturing in GDP by 5 percentage points
• Double per capita GDP to $6,500 from $3,300
• Promote key industries, including EVs and semiconductors
• Reduce industrial power tariffs
Source: Business Standard
Apart from the traditional non-tariff barriers, new dimensions in trade—such as sustainability and security measures—are adding to regulatory and economic uncertainties, a senior government official said on Tuesday. “Whether it is about the environment, inclusivity, gender, or labour—all trade-related sustainability measures are also bringing in both regulatory and economic uncertainty… Energy is a critical element towards the transition to the future. How do we deal with provisions related to energy, critical minerals… to ensure that our supply chains remain intact in the future?” L Satya Srinivas, additional secretary, Department of Commerce, said at the CII Partnership Summit 2024. Srinivas’s comment comes against the backdrop of new protectionist regulations being implemented globally, such as the European Union’s carbon border adjustment mechanism (CBAM) and other similar measures, which are set to hurt trade. Additionally, India is negotiating free trade agreements (FTAs) with a number of countries, including the EU, which has rolled out some of these regulations. “I’m sure everyone has been hotly debating how we deal with CBAM, how we deal with new regulations coming in Europe, such as EU deforestation laws, or new legislation emerging across the globe, in terms of protectionist elements, domestic legislations that incentivise industries to invest and ensure they have an impact on trade. There are also laws to ensure that there is no transfer of technology,” Srinivas said. According to Srinivas, these new regulations and focus areas are set to dictate the trajectory towards the future. As a result, it is imperative to build a framework to ‘preserve the preferential agreement’ in terms of the free trade agreements India is negotiating. He further stated that FTAs need to take a holistic view of the commercial significance they hold for the country and emphasise the importance of looking at goods, services, and investment together. “There should be a free flow of skilled personnel, and there is a need for investment in skilled personnel across the globe,” he said, adding that going forward, artificial intelligence (AI) will completely change how we trade.
Source: Business Standard
The long voyage time due to ships taking longer routes through Cape of Good Hope has impacted global trade, including Indian exports, Commerce and Industry Minister Piyush Goyal said on Tuesday.
This has resulted in increased time for goods to reach international markets, he said. "No shortage of containers has been, however, reported on account of the longer voyage time or the Red Sea conflicts issues and Russia-Ukraine War," the minister said adding regular interactions are done with shipping lines, port/ terminal, and export/import associations to assess for possible interventions. He added that there is limited demand for containers manufactured in India and accordingly the limited manufacturing capacity for containers in India. The container manufacturing industry is dominated by economies of scale that favour established manufacturers from other countries, who benefit from lower production costs, advanced technologies, and immediate cargo loading opportunities. "The long voyage time due to ships taking longer routes through Cape of Good Hope has impacted global trade, including Indian exports," he said in a written reply to the Lok Sabha. The minister informed that Container Corporation of India Limited (CONCOR) have placed order with Amba Coach Builders Pvt ltd located in Andhra Pradesh of total 2500 containers since 2021 out of which 28 containers have been delivered till November.
Source: Business Standard
New elements related to sustainability, inclusivity and security are now playing an important role in global trade discussions and they would dictate the future talks, a senior official said on Tuesday. Additional Secretary in the Department of Commerce L Satya Srinivas also emphasised on the importance of adopting a holistic perspective on the commercial significance of free trade agreements (FTAs) for the country. "On the plate of trade, there are vast new dimensions getting added. How do we deal with those new dimensions. These new regulations and new focus areas of present will dictate our trajectory towards the future," he said at CII's Partnership Summit here. Earlier in trade discussions, the main issues which used to figure included reduction or removal of customs duties and non-tariff barriers. In addition to these, now "new dimensions are coming into the trade play which is sustainability and security induced," he said, adding these issues like environment and labour are also bringing in regulatory as well as economic uncertainties. Srinivas added that as the country is targeting to export USD 2 trillion worth of goods and services by 2030, FTAs are going to play an important role in that. "(In FTAs), we need to look at goods, investments and services all together," he said stating that besides these, the new elements have also become important in terms of future. India has so far implemented over a dozen trade agreements with countries including Singapore, Korea and Japan and is now negotiating trade pacts with the European Union, UK, Oman, and Peru. In the FTAs with UAE, Australia and EFTA (European Free Trade Association) bloc, new elements are there. New rules such as EU's carbon tax and deforestation regulations are also impacting trade.
Source: Business Standard
External Affairs Minister S Jaishankar, at the CII Partnership Summit on Sunday, underlined India's growing role in the global arena and the need for stronger international partnerships amid a volatile global economy. He also highlighted India's economic rise, the challenges of emerging technologies, and the country's efforts to improve its manufacturing and infrastructure capabilities, positioning India as a stabilising force and key contributor to global growth. Jaishankar also stressed the importance of domestic development to strengthen India's credibility and attract international collaborations. Speaking about the Indian economy, he said, "India, which has risen to the fifth position globally and is advancing further, needs more significant partnerships. Our stakes in the world are higher, our responsibilities greater, and the expectations of us more substantial. The case for international relationships is further strengthened by the state of the global economy. At a time of such volatility and uncertainty, India can act as a stabilising factor. We can contribute to global growth engines and advance technology." Jaishankar addressed the variety of global challenges spanning multiple domains. He said, "On one hand, there are challenges in diversified manufacturing and improved logistics. On the other, we are entering an era of AI and EV, space and drones, green hydrogen and ammonia, clean and green technologies. Whether it is the orthodox demands or those of critical and emerging technologies, a common factor is human resources. The knowledge economy places a premium on innovation and creativity, which in turn demands more talent and skills. This need is especially pressing as much of the world contemplates a demographic crisis. The point is that the economic landscape we face is undergoing deep transformation. Responding effectively cannot be a national endeavour alone." He added that these challenges have necessitated a "strategic transformation," where managing global difficulties requires building stronger partnerships.
Source: Business Standard
The rupee recovered all losses after touching a new intraday low of 84.76 per dollar, as the Reserve Bank of India (RBI) intervened in the foreign exchange market via dollar sales, said dealers. The local currency ended 2 paise stronger at 84.68 against the US dollar, compared to 84.70 per dollar on Monday. Market participants said the RBI might have sold around $2 billion, which helped the domestic currency cut losses. The RBI has been actively intervening in the foreign exchange market to curb volatility, with reserves declining as much as $48 billion over the past two months (since September 27). “The RBI may have sold around 2 yards ($2 billion) to protect the rupee from further fall beyond 84.76 per dollar,” said Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP. The rupee depreciated in early trade, tracking the weakness in the Chinese yuan, which slumped to a year-low. Significant dollar demand in the non-deliverable forwards market further weighed on the local currency, said dealers. Reports indicate that the RBI holds a total of $70 billion in short positions in both offshore and onshore rupee markets, they added. The market believes the 85 per dollar mark remains on the cards; however, the timeline by which the Indian unit might breach the psychologically crucial level will depend on the extent of intervention by the central bank. “The Chinese yuan has been weakening, and then we had disappointing GDP data, which led to a fall in the rupee,” said a dealer at a state-owned bank. “The course of the rupee’s movement will be decided by the RBI from here,” he added. India’s economic growth slowed more sharply than anticipated in the July-September period of FY25, dropping to a seven-quarter low of 5.4 per cent, surprising analysts who had projected growth to hover around 6.5 per cent in the quarter. The Indian unit depreciated 1.75 per cent against the dollar in 2024.
Source: Business Standard
At present, manufacturers pay import duties on many raw materials and intermediate goods that are higher than the levies on finished goods. The government is likely to go for a major overhaul of the basic customs duty on more than 100 items in the Budget for FY26, in order to align the rates with global trade dynamics and correct the inverted duty structure, according to a senior official. The official told FE that inverted duty correction is likely to be done for information technology hardware items, automobile parts and textiles, among others. “Inputs have been received from the industry regarding this aspect, and we’ve kept those in mind (while reviewing rates)” the official said. Inverted duty structure is a situation wherein inputs and raw materials attract higher tax than finished products. The proposed modification of customs rates was announced by finance minister Nirmala Sitharaman in her FY25 Budget speech in July. She had proposed to undertake a “comprehensive review” of the duty structure over the next six months to “rationalise and simplify it for ease of trade, removal of duty inversion and reduction of disputes.” In a meeting with the finance ministry last month, the Confederation of Indian Industry (CII) had suggested undertaking “duty changes for imported goods basis sector-wise industry consultation, and review of existing free trade agreements (FTAs) and exemption notifications to correct cases resulting in inverted duty structure.” In a report, released in July, Niti Aayog had said that India needed to significantly overhaul” import tariffs, and use fiscal incentives for being a major player in global value chains for electronics, and set a target of $500 billion for the sector by 2030 from a little over $100 billion at present.
Besides electronics, industry experts have recommended correction of inverted duty structure in textiles, apparel, leathers, automotive parts, telecommunications, toys, etc. The Confederation of Indian Industry (CII) has recommended duty on raw materials to be in the range of nil-2.5%; on intermediaries to be 2.5-5%; and on finished goods to be 7.5-10%. At present, manufacturers pay import duties on many raw materials and intermediate goods that are higher than the levies on finished goods. Typically, this scenario exists because the government encourages firms to source input items locally rather than externally, but manufacturers are heavily reliant on imported inputs and thus have to pay a high price. Vimal Pruthi, tax partner, EY India, said, “This issue is faced across the industries and removing these anomalies will boost domestic production, reduce imports, and enhance India’s manufacturers competitiveness.” Across industries, many finished goods are exempted from levies or a concessional rate is applied under various FTAs, while on inputs higher duty is levied on imports. “Government should analyse such situations and provide concessional rate/exemption to inputs in those situations also,” said Pruthi.
Harsh Bhuta, partner, Bhuta Shah & Co, said that critical sectors such as steel, aluminium, solar batteries, lithium batteries, and polymers require rate rationalisation to boost domestic production. Earlier, CBIC chairman Sanjay Kumar Agarwal had told FE that correction of inverted duty is not always possible. “Many times, what we consider as inversion is not so. We have to check what’s the value of a particular item in a finished product,” he had said. In the Budget for FY25, the finance ministry had tweaked the BCD on many products, including mobile phones and electronics, gold, silver and critical minerals, to support domestic manufacturing.
Source: Financial Express
VIJAYAWADA: The State Cabinet, which met on Tuesday under the chairmanship of Chief Minister N Chandrababu Naidu, approved the IT and Global Competitive Centres Policy 4.0, AP Textile, Apparel and Garments Policy, AP Maritime Policy, and AP Tourism (Amendments) Policy. The Cabinet ratified the APCRDA’s decision to invite tenders for the stalled infrastructure development works estimated to be over Rs 11,471 crore in the Capital Amaravati. Briefing the media of Cabinet decisions, Minister for Information and Public Relations Kolusu Parthasarathy said the main objective of the IT policy is to make Andhra Pradesh the next destination for IT in the country. “Under the Information Technology and Global Competitive Centres Policy 4.0 2024-29, remote, hybrid and coworking spaces will be developed. Incentives will be given to coworking and neighbourhood space developers based on certain criteria,” he explained. Highlighting Chief Minister N Chandrababu Naidu’s vision of ‘One Family, One Entrepreneur’, he said, “The IT policy has been adopted to provide employment to the youth and improve the economic condition of the State. It will certainly help promote every graduate to the global level, besides ensuring lucrative salaries.” The AP Apparel and Textile Policy 4.0 2024-29 is aimed to attract Rs 10,000 crore investments, besides creating two lakh jobs in the next five years. Five textile parks under the Public Private Partnership (PPP) mode will be set up across the State. “During the next five years, $1 billion textile exports have been targeted,” he elaborated.
The Maritime Policy has been formulated to develop Andhra Pradesh as a port-centric economy taking advantage of its 975 km long coastline. Efforts are also being made to encourage the shipbuilding industry. The Chief Minister is holding discussions with the Prime Minister for the establishment of a mega shipyard in the State, he said. Minister for Municipal Administration and Urban Development Minister P Narayana said with no action on the Capital Amaravati project by the previous YSRCP regime for five years, not only the works got stalled causing huge damage to the structures already built, but also the estimated cost of the project increased significantly. “The Cabinet has approved the APCRDA’s decision of cancelling the previous tenders and invite fresh tenders. The damage incurred to the works has been estimated at Rs 286.78 crore. As there is GST now, there will be an additional cost of 452.35 crore. The estimated cost of 360 km long trunk roads has gone up by Rs 460 crore,” he explained. The works in Amaravati include construction of administrative towers, Assembly building and High Court complex, for which tenders will be invited by the end of this month. The budget estimate at that time for the construction of these structures was Rs 41,000 crore, which has now gone up by 30%, he added.
Other key decisions
Source: The New Indian Express
During 2001-23, India's exports to the US rose at the compounded annual growth rate of 10.48 % while during this period the US’s overall imports grew at 4.76 %. The ministry of commerce and industry has planned a review of the India-US trade relationship this week to assess its progress over the years and chalk out plans to deal with any possible execution of President-elect Donald Trump’s tariff threats. Though “there are no irritants in the relations between the two countries that can lead to discriminatory tariffs against India,” an official said, the ministry will take a look at the experience during the previous Trump administration and plan for the future course. Trump, who had called India an “abuser” of import tariffs during the US election campaign, on Sunday threatened the nine-member Brics bloc with 100% tariffs if the countries went ahead with their plan to create a new currency to rival the US dollar. Despite Trump’s threats, ministry officials do not expect any drastic change in duties on US imports from India.
Commerce and industry minister Piyush Goyal also expressed similar views last week. “To the best of my understanding of the situation based on the Indian experience of working with the Trump administration we do not see any problem whatsoever,” Goyal had said, adding Prime Minister Narendra Modi and Trump enjoy a good relationship. The officials said Trump’s tariff threats for Canada, Mexico and China made last week were tied to matters beyond trade such as illegal immigration and drug trade. While for Brics, the warning was aimed at desisting the bloc from undermining the role of the US dollar in international transactions. “Between India and the US there are no security or other similar issues so action on that count is not expected,” one of the officials added. The officials are hopeful that the India-US trade will continue its momentum of growth seen in the past nearly two-and-a-half decades. Data compiled by the ministry since 2000 suggests that India’s share in US imports has steadily increased and this trend did not stop even when Trump was President between 2017 and 2021. India’s share of US imports has grown to 2.8% in 2023 from 0.9% in 2001. During 2001-23, India’s exports to the US rose at the compounded annual growth rate of 10.48 % while during this period the US’s overall imports grew at 4.76 %. Though Trump had called India an “abuser” of import tariffs, the US itself puts very high tariffs on farm products such as dairy (188%); fruits and vegetables (132%); coffee, tea, cocoa and spices (53%); cereals and food preparations (193%); oilseeds, fats and oils (164%); beverages and tobacco (150%); fish and fish products (35%); minerals and metals (187%); and chemicals (56%). If Trump’s tariff threats bring both sides to the negotiating table then India also has the room to seek concessions, according to experts.
Source: Financial Express
Italy’s trade with non-European Union (EU27) countries recorded a cyclical reduction of 3.5 per cent month on month (MoM) in exports and an increase of 1.1 per cent MoM in imports in October this year, official statistics show. The monthly decrease in exports concerns all the main industrial sectors, with the exception of durable consumer goods (plus 8.6 per cent). The largest reductions were recorded for energy (minus 10.7 per cent) and capital goods (minus 7.4 per cent). On the import side, with the exception of intermediate goods (minus 4.3 per cent), widespread cyclical increases of varying magnitude were recorded: energy (plus 8 per cent), capital goods (plus 2.5 per cent), non-durable consumer goods (plus 0.7 per cent) and durable consumer goods (plus 0.1 per cent). Between August and October this year, exports reduced by 0.2 per cent quarter on quarter (QoQ) to which the decline in energy sales (minus 18.1 per cent) and capital goods (minus 4 per cent) contributed. In the same period, imports showed a slight increase (plus 0.3 per cent), explained by the greater purchases of durable (plus 5.4 per cent) and non-durable (plus 0.6 per cent) consumer goods and intermediate goods (plus 1.8 per cent), a release from the official statistical agency Istat said. In October, exports to non-EU27 nations decreased by 1.1 per cent year on year (YoY); it fell by 1.4 per cent in September. The decline is determined by lower sales of energy (minus 57.4 per cent) and capital goods (minus 10.5 per cent). Instead, exports of durable consumer goods (plus 37.7 per cent), intermediate goods (plus 4.9 per cent) and non-durable consumer goods (plus 4.5 per cent) increased. Imports recorded a trend decline of 4.1 per cent YoY in October, almost entirely explained by the contraction in energy purchases (minus 24.3 per cent). This October, Italy’s trade surplus with non-EU27 countries was 5,709 million, it was 5,089 million in the same month last year. In October, there were large YoY reductions in the country’s exports to OPEC countries (minus 16.9 per cent) and the United States (minus 11.8 per cent). Exports to Turkiye (plus 33 per cent), ASEAN countries (plus 15 per cent), MERCOSUR countries (plus 12.2 per cent) and the United Kingdom (plus 8.7 per cent) increased. Italy’s imports from OPEC countries (minus 33.9 per cent) showed a large trend contraction. Those from the United Kingdom (minus 4.4 per cent), the United States (minus 3.2 per cent) and China (minus 2.1 per cent) also decreased. On the other hand, imports from the other main non-EU27 partner countries increased, with the largest trend increases for MERCOSUR countries (plus 21.9 per cent) and India (plus 11.2 per cent).
Source: Fibre2fashion
Minister of Industry and Trade Nguyen Hong Dien had meetings with Canadian Minister of Export Promotion, International Trade and Economic Development Mary Ng and Singapore’s Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong on November 28 within the framework of the eighth Comprehensive and Progressive Agreement for Trans-Pacific Partnership Commission (CPTPP) meeting in Vancouver, Canada. Ottawa (VNA) – Minister of Industry and Trade Nguyen Hong Dien had meetings with Canadian Minister of Export Promotion, International Trade and Economic Development Mary Ng and Singapore’s Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong on November 28 within the framework of the eighth Comprehensive and Progressive Agreement for Trans-Pacific Partnership Commission (CPTPP) meeting in Vancouver, Canada. At the meeting with Mary Ng, the two sides focused on strengthening diplomatic and trade relations, as well as the Vietnam-Canada Comprehensive Partnership. Vietnam praised Canada’s efforts and its coordinating role in advancing CPTPP activities, which have made this framework increasingly dynamic and attractive to economies seeking membership. Dien emphasised Vietnam's readiness to collaborate with Canada and other member nations to maximise benefits for people and businesses, elevate the CPTPP, and enhance its role in regional and global trade. Regarding bilateral cooperation, the ministers reviewed the activities of the Vietnam-Canada Joint Economic Committee, with the Vietnamese side proposing close coordination with Canada to realise commitments on trade and investment facilitation, energy transition, and climate change adaptation.
Vietnamese exports to Canada have surged since the CPTPP took effect. Bilateral trade rose by 15% to nearly 6 billion USD in the first 10 months of this year. Vietnam is now Canada’s largest trading partner within the Association of Southeast Asian Nations (ASEAN), accounting for 43.6% of the North American country’s total imports from the region.
Dien also expressed concerns about the rising frequency of trade defence measures targeting Vietnamese goods in Canada. He urged Canada to strictly adhere to World Trade Organisation (WTO) regulations and international practices, ensuring fair conditions for Vietnam to provide information and documents as well as express its stance in such cases.
Talking to the Singaporean official, the Vietnamese minister acknowledged Singapore as a key partner in economic, trade, and investment collaboration. He emphasised the need to deepen and broaden bilateral cooperation as a foundation for the two governments to consider upgrading bilateral relations to a Comprehensive Strategic Partnership. The Vietnamese side proposed Singapore further facilitates the import of Vietnamese goods, especially processed agricultural products, seafood, and food items. The two parties agreed to effectively implement a Memorandum of Understanding on economic and trade cooperation and explore measures to promote cross-border e-commerce. They also pledged close collaboration in implementing and expanding the CPTPP to enhance its effectiveness in the future.
Source: Vietnam Plus
China's services activity expanded at a slower pace in November, pressured by easing new business growth, including in exports, a private sector survey showed, as the economy braces for a rocky ride of more US tariffs under a second Trump administration. The Caixin/S&P Global services purchasing managers' index (PMI), released on Wednesday, fell to 51.5 from 52.0 in October, but remaining above the 50-mark that separates expansion from contraction on a monthly basis. That aligns with the official PMI released on Saturday, which showed non-manufacturing activity weakened to 50.0. China's economy has faced constant pressure from multiple fronts this year, with consumer and business confidence hit by a prolonged property downturn, local government debt risks and weakening global demand. Beijing has responded with a series of policy measures, including increased fiscal support and monetary easing, to shore up economic growth. While markets expect more support from policymakers to bolster the recovery, US president-elect Donald Trump's threat to impose tariffs in excess of 60 per cent on Chinese imports has added a fresh layer of uncertainty to the world's second-biggest economy. "Service providers generally expressed confidence in market improvement amid policy support, although some were concerned about the future trade environment," said Wang Zhe, Senior Economist at Caixin Insight Group. The survey showed the new business sub-index declined to 51.8 in November from 52.1 the previous month and the expansion of new business inflows from abroad also slowed. Yet, companies hired additional staff for a third consecutive month to manage workloads, and overall business confidence rose to its highest level in seven months. Firms reduced their selling prices due to competition, but they also had some relief from lower material costs which led to a decrease in average input costs. said while the economic recovery has gained momentum in November, the downside pressure on growth remains prominent. "The structural and cyclical pressures facing the economy are expected to continue, coupled with the likelihood of continued accumulation of external uncertainties, which requires sufficient policy buffers," he said. The Caixin/S&P Global Composite PMI, which combines the manufacturing and services PMIs, rose to 52.3 from 51.9, driven by faster expansion in the manufacturing sector.
Source: Business Standard
