Agriculture Secretary Vilsack to Join Effort to Address Key U.S. Trade and Economic Priorities

U.S. Secretary of Commerce Gary Locke and U.S. Trade Representative Ron Kirk will serve as co-chairs with Chinese Vice Premier Wang Qishan of the 20th session of the U.S.-China Joint Commission on Commerce and Trade (JCCT) held on Wednesday, October 28th and Thursday, October 29th in Hangzhou, China. U.S. Secretary of Agriculture Tom Vilsack will join this effort to address key U.S. trade and economic priorities. The 2009 JCCT marks the first time three Obama cabinet officials have traveled together to a key economic summit abroad.

The JCCT, established in 1983, is the main forum for addressing bilateral trade matters and promoting commercial opportunities between the United States and China.

"The first JCCT under the Obama Administration provides an important opportunity to engage China on trade concerns impacting American companies," Secretary Locke said. "It is critical that we make progress on several priority issues, including intellectual property rights protection and enforcement, clean energy, medical devices and pharmaceuticals."

"China is America's second largest trading partner and is a fast growing market for American exporters," said Ambassador Kirk. "As we convene the 20th session of the JCCT, the Obama Administration recognizes that as we look to the next 20 years of our relationship with China, our successful engagement must include strong and smart U.S. trade policy. The JCCT gives the United States and China a venue to consider the breadth of our trade relationship and identify steps that each side can take to ensure that it is fair, sustainable, and mutually beneficial going forward."

"With two-way trade between the United States and China in agricultural, fish and forest products exceeding $21 billion in 2008, American farmers and ranchers recognize the benefits of our economic engagement with China, but they also rightly seek great equity and balance in our trade relationship," said Secretary Vilsack. "The JCCT is an opportunity to work with China to address the wide range of trade and economic issues that affect the lives of U.S. agricultural producers and consumers."

During the 2009 JCCT in Hangzhou, American and Chinese officials will participate in a high-level annual plenary meeting as well as and review progress made by a large number of working groups convened throughout the year to bring U.S. and Chinese officials together to engage in detailed discussions of specific trade issues. Examples of these groups include the IPR Working Group, the Insurance Dialogue, and the Information Industry Working Group.

China was the second largest supplier of U.S. good imports in 2008 (after Canada) and was the third largest market for U.S. exports in 2008 (after Canada and Mexico). U.S. goods exports to China were $70 billion in 2008, up 649% since 2000. Trade in services with China (exports and imports) totaled $23.0 billion in 2007 (latest data available); services exports were $14.2 billion and services imports were $8.8 billion.

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U.S. moving to boost exports: Commerce Secretary Gary Locke

The Obama administration has made increasing U.S. exports a key part of its strategy to reduce unemployment and is moving on several fronts to do that, Commerce Secretary Gary Locke said on Wednesday.

In a wide-ranging interview, Locke said the size of the U.S. trade deficit was a concern for the Obama administration, even though it has fallen sharply this year.

Ahead of a visit to China, Locke said he would press the Chinese to lower import barriers to U.S. goods and protect the intellectual property rights of U.S. firms.

He shrugged off criticism the government is dragging its feet on free trade pacts, saying the Obama administration wants to finalize deals with Colombia, South Korea and Panama.

"The number one indicator that everyone is focusing on is the unemployment rate ... What we can do to help businesses grow and expand in America is to help them sell their products and services," Locke said at the Reuters Washington Summit. "The key to addressing that deficit is to export more American products and services, not just to China but all around the world."

CHINA BOUND

Later this week Locke will convene the Obama administration's first ever trade promotion policy coordinating committee. He and U.S. Trade Representative Ron Kirk will then travel to Hangzhou, China next week for high-level talks on trade and investment concerns.

The U.S. trade deficit with China totaled $143.7 billion in the first eight months of 2009, down 15 percent from the same period last year as the U.S. recession took a toll on consumer and business demand.

It is still the largest trade gap the United States has with any country and has fallen less than bilateral deficits with Canada, the European Union, Mexico and Japan.

"Clearly the trade imbalance with China is not healthy and we need to do everything we can" to address it, Locke said, adding the ideal situation would for it to be roughly in balance, with small fluctuations from year-to-year.

Locke said he would be pressing the Chinese next week to lower barriers that hamper U.S. companies from participating in China's fast-growing market for clean energy, alternative fuels and energy efficiency products.

But he also warned that the United States risked being left behind by China in those fields if Congress does not pass climate change legislation.

While American investors are waiting to find out what lawmakers will do, "China is spending almost $100 billion a year from the government supporting renewable energy, clean energy, energy efficiency," Locke said.

"The longer we in the United States take to pass comprehensive energy legislation, the farther ahead the Chinese will be," Locke said.

Locke, a former governor of Washington, also said he would also deliver a message to the Chinese that it is in their own economic interest to focus on strong intellectual property protection.

"As they start to innovate, as they start to invent, they're not going to want someone else ... ripping off those ideas and products and services," he said.

In one recent example of the problem, pirated copies of Microsoft's (MSFT.O:Quote, Profile, Research, Stock Buzz) new operating system, Windows 7, were on sale in China last week before the legitimate version was even released. They sold in shops in Shanghai for about $3 a copy -- a fraction of list prices as high as $320.

PUSH FOR VISA, EXPORT CONTROL REFORMS

Earlier this week, Republican Senator Charles Grassley said he gives President Barack Obama "an F" on trade for failing to push forward on free trade pacts with Colombia, Panama and South Korea left over from the Bush administration.

Approving those pacts is part of the administration's plan for boosting exports, but it is still too early to say when they would be sent to Congress, Locke said.

"The president does want those agreements ratified but there are some issues that need to be addressed," Locke said.

The Obama administration has previously cited concerns about anti-labor violence in Colombia, tax laws in Panama and non-tariff barriers in South Korea.

Meanwhile, the Commerce Department has embarked on an initiative aimed at getting more small and medium-sized U.S. businesses involved in exports, Locke said.

It also is working with the other government agencies to ease restrictions on business visas that make it hard for U.S. companies to make export sales, he said.

The department is moving "very, very fast" on its proposal to remove licensing requirements for companies to export certain dual-use goods that have both commercial and military applications to longtime allies, Locke said.

He hoped to have proposals submitted by year end and implement the measure in the beginning of 2010.

"Things that are readily available from Home Depot or Radio Shack and yet are subject to export controls make no sense," he added, echoing a longtime U.S. business complaint the current system makes them lose sales to foreign competitors.

Locke, who oversees a vast department with a number of agencies, said he was also moving to restructure the U.S. Patent Office to help U.S. business compete.

"I find it absolutely unacceptable that it takes almost three years before a patent application is accepted or rejected ... We need to get that down to less than a year. And that is a number one focus for us," Locke said.

(Reporting by Doug Palmer, Tim Ahmann, Glenn Somerville, Kristin Robertsand Paul Eckert; Editing by Andrea Ricci)

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UAE Leads Gulf in Implementing SEC’s Resolutions

UAE is at the forefront of member states committed to implementing decisions of the Supreme Economic Council, or SEC, between 2006 and 2008, a report said on Wednesday.

UAE’s regular participation in this forum marks its commitment to promoting economic integration among countries and is in accordance with the UAE’s intent to strengthen financial ties with global financial and economic institutions, aimed at supporting investment and
economic development, Finance and Currency Department of the Gulf 
Cooperation Council said in a statement.

UAE has implemented 11 out of 14 resolutions related to economic, financial and trade fields. These include the GCC Common Trademarks Law, the law allowing GCC natural and legal citizens to participate in all economic activities and professions without limitation; adoption of the process organising GCC nationals’ acquisition of real estates in member states for housing and investment purposes; application of full equality of treatment between nationals of the GCC countries to own and trade stocks; establishing companies and allowing GCC nationals to be engaged in reviewing services in 
governmental departments.

Obaid Humaid Al Tayer, Minister of State for Financial Affairs, led a high level UAE delegation compromising of Sultan Nasser Al Suwaidi, Governor of the UAE Central Bank, to participate in the 82^nd meeting of the Committee on Financial and Economic Cooperation, and the meeting of Arab governors with the Director General of IMF, being held in Mascat, Oman last week.

The UAE is fully committed to activating the integration of GCC economies, as it believes in the importance of joint action in achieving goals and interests of the GCC Charter. The country is continuously making efforts to support GCC joint projects, in addition to its expansion and diversification, in a way that serves the economies of
 all member states.

As per statistics on implementation of resolutions of the Supreme Economic Council concerning GCC Common Market, the UAE occupies first position among member states granting licenses for economic and financial activities to GCC nationals. The total number of licenses given by the UAE reached 11,083, followed by Kuwait with 2,628 licenses.

The value of loans granted to GCC nationals to establish industrial projects in the UAE reached US$ 18.11 million. Up to 2007, four commercial GCC banks were allowed to open branches in different Emirates to start operations.
—

business@khaleejtimes.com

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Arab League chief eyes Egyptian presidency

The head of the Arab League indicated in an interview published Tuesday that he may consider running for Egypt’s presidency in elections scheduled for 2011.

Amr Moussa’s remarks come amid a heated debate in Egypt about who would replace President Hosni Mubarak who has ruled the Arab world’s most populated nation for 28 years. The 81-year-old Mubarak has not said whether he will run for another six-year term in the 2011 vote.

Mubarak, 81, has no designated successor and there is widespread speculation that he plans to pass power over to his son, Gamal. The 45-year old former banker has become increasingly influential in the ruling party over the last decade.

Arab League chief Moussa is wildly popular in Egypt and the Arab world for his frequent criticism of the United States and Israel on such issues as the Palestinians and Iraq. A career diplomat, he served as Egypt’s foreign minister under Mubarak for nearly a decade before being named league secretary-general in 2002.

‘Every capable and efficient citizen has the right to aspire for the supreme post, which is the president of the republic,’ the 73-year-old Moussa said in the interview with the independent Egyptian newspaper, Al Shorouk. ‘Undoubtedly, I am like others looking forward to participate in the project of Egypt’s resurrection,’ he said.

Mubarak’s ruling party has a lock on all levels of the government and dominates parliament, and past elections have seen widespread reports of vote rigging in the party’s favor. Moreover, opposition parties are weakened and have little popular support, so whatever candidate gains the party nomination for the 2011 vote would have an overwhelming likelihood of winning.

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Dubai International Capital (DIC) has managed to borrow US$550 million.

DUBAI // Dubai International Capital (DIC) has managed to borrow US$550 million (Dh2.02 billion) from international banks, providing the latest evidence that a growing appetite for risk among global investors may be easing the cash crunch facing Dubai.

Bankers in Dubai and London confirmed that DIC had clinched the roughly two-year loan from a syndicate of lenders. DIC is an investment arm of Dubai Holding, and owns a number of well-known assets abroad, including a majority stake in Travelodge hotel chain of the UK. DIC executives could not be immediately reached to comment on the deal.

At the height of the financial crisis early this year, doubts about Dubai’s ability to service its estimated $85bn in debt led the emirate to seek $10bn in federal funding to support its companies. But low interest rates and signs of a global economic recovery have sparked a rally in financial markets that has revived funding to emerging markets.

Governments and corporations around the world have quickly seize the opportunity to borrow at lower rates, including Abu Dhabi, which has sold at least $9.35bn in bonds so far this year. Now Dubai has sent representatives to Asia to assess investor appetite for lending more money to its companies, which owe an estimated $65bn.

Dubai does not publish accounts of what it and the companies it controls owe, but analysts estimate that Dubai Inc will need to repay $6.8bn between now and the end of the year. Next year, it will need to come up with another $10.1bn. It will need $12.1bn in 2011, $15.2bn in 2012 and $4.8bn in 2013.

Much of the amount owed this year is from a $3.52bn bond from Nakheel, the property company, which matures on December 14. Before that, on November 2, DIC is due to repay a comparatively small $600m in bank loans.

Analysts consider Dubai Holding one of the better run of Dubai’s three sovereign wealth funds. The company recently repaid $250m it owed to BNP Paribas and this month repaid $300m that came due at one of its property divisions, Sama Dubai.

“Dubai Holding is well run and has high liquidity,” said Farouk Soussa, the head of sovereign ratings at Standard & Poor’s in Dubai, which has placed an “A” rating on the debt of Dubai Holding Commercial Operations Group.

In spite of its cash position, Dubai Holding has joined Dubai World in embarking on a major restructuring of its operations, merging its property divisions and announcing plans to combine DIC with another investment arm, Dubai Group.

Dubai World, which owns Nakheel, announced last week a restructuring that it said eliminated 12,000 jobs and would save it $800m over three years. Dubai World has an estimated $5.5bn in debt, while its subsidiaries owe another $18.77bn.

Dubai Holding owes at least $2.44bn, according to analyst estimates.

It has guaranteed DIC’s new loan, according to a report by Reuters citing unnamed sources.

The new loan refinances a bridge loan the company borrowed in August, Reuters reported, and was underwritten by Mashreqbank, Royal Bank of Scotland and Noor Islamic Bank, which is partly owned by Dubai Holding.

The syndication is due to close on November 12.

The loan is due to mature in August 2011, the Reuters report said, but gives bankers the option to extend it for another year in return for an additional percentage point in interest.

The loan is paying 4 percentage points over the benchmark interbank rate. In the event of repayment, the report said, lenders would be given shares of a special purpose vehicle holding DIC’s stake in Travelodge and KEF Holdings.

* with additional reporting by Uta Harnischfeger

warnold@thenational.ae

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Green projects in South Africa and Tunisia receive UN aid

Boosting energy efficiency in South African industry in the face of economy-threatening energy shortages and promoting environmentally-friendly production in Tunisia are the focus of two new United Nations projects signed today.

The Swiss Government will help fund the UN Industrial Development Organization (UNIDO) projects under the accord signed in Bern, the Swiss capital.

“South Africa’s energy intensive industry was developed based on abundant and cheap energy resources,” UNIDO Director-General Kandeh K. Yumkella said of the project that will help put in place energy management standards, ensure their adoption by industries at large and achieve a significant shift in energy practices by introducing a system optimization approach.

“But in 2008, the country experienced an energy crisis with frequent blackouts. The energy shortages directly threaten the growth rate in the country and the region. Taking advantage of its experience UNIDO will contribute to a substantial improvement of energy efficiency in industry.”

The Swiss Government will contribute €2 million, while the South African Government will give another €5 million to the project, which will also lead to significant reduction of carbon dioxide emissions and, at the same time, increase the competitiveness of industries.

A separate €1.5 million project, financed by Switzerland, will focus on promoting environmentally-friendly production in Tunisia. It will help increase the competitiveness of small- and medium-sized enterprises, and support the development of a regional network of such centres in the Middle East and North Africa.

The project is aligned with a new programme that UNIDO is carrying out in cooperation with the UN Environment Programme (UNEP), and will contribute to UNIDO’s Green Industry initiative, which aims to create national capacities in cleaner production, strengthen dialogue between industry and governments, and promote investments for development and transfer of cleaner technology.

UNIDO is a specialized UN agency promoting industrial development for poverty reduction, inclusive globalization and environmental sustainability.

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Launch of US-South Africa Partnership for Skills Development

PRETORIA, South Africa, October 19, 2009/African Press Organization (APO)/ — Higher Education and Training Minister Dr Blade Nzimande will address the official launch of the US-South Africa Partnership for Skills Development at the Waterberg FET College in Mokopane, Limpopo on Tuesday, 20 October 2009 at 10am.

The new bi-lateral international partnership between the Government of South Africa, the Department of Higher Education and Training and the United States Agency for International Development (USAID) is aimed at strengthening academic programs, skills development training and student support services at selected Further Education and Training (FET) colleges in South Africa.

The $6.7 million programme will operate over a three year period at 12 FET colleges in Limpopo, Mpumalanga and the Northern Cape and will be implemented by the American Council on Education and American Association of Community Colleges.

The programme will work to strengthen the FET college sector’s institutional capacity in student support services programs and offer a wide range of professional development programs for college lecturers. The team will also provide consultative support through partnerships with the private sector and exchange opportunities with US colleges and universities.