ISO & CLIMATE CHANGE + India-ASEAN + India-Cambodia + Sugar Subsidy Issue with Australia, Thais

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NEWS Bulletin from Indian Society For Sustainable Agriculture And Rural Development **************************************** On ENERGY TRADE & CLIMATE CHANGE 1. ISO set to formulate norms on energy trade and climate change 2. India to counter Australia, Thailand on sugar subsidy India-ASEAN------ 3. India and East Asia & ASEAN - India is choosy about eastern neighbours 4. Cambodia calls for more Indian

investment 5. UP farmers demand cane price arrears ------ ISO set to formulate norms on energy trade and climate change http://www.financialexpress.com/news/ISO-set-to-formulate-norms-on-energy-trade-and-climate-change/247402/0 ASHOK B SHARMAPosted online: Thursday , December 06, 2007 at 2014 hrs IST As climate change, environment and energy trade are likely to be an

issue in future negotiations at the WTO, the International Standards Organisation (ISO) has decided to give added focus in these sectors. It urged India to move from its position as a taker of standards" to "maker of standards." The ISO secretary-general, Alan Bryden in an interaction with the industry in Delhi on Thursday said : "We have formulated some norms like environmental management, environmental labeling, life cycle analysis, greenhouse gas emissions accounting and verification, air, water and soil quality, ship recycling, but we need to do more in the area, particularly in relation to climate change and trading in emission credits." In collaboration with the International Energy Agency and the World Energy Council, ISO would formulate norms on bio-fuels and bio-diesels, energy management and auditing, energy efficiency in transportation, sustainable and energy efficient buildings, hydrogen

technologies and solar energy. Bryden said that ISO has already registered its presence at the on-going UN Framework Conference on Climate Change in Bali and would also participate at the scheduled meeting of trade ministers on December 8. He said that ISO has also decided to develop standards on societal problems at the instance of NGOs. Other focus areas of ISO are basic industries, new technologies like IT, aeronautics and space technology, biotechnology, nano-technology, hydrogen technology, food safety management, healthcare, education, homeland security like biometrics, natural disaster reduction strategy, security in the supply chain. Bryden was in Delhi to participate in the meeting of the World Economic Forum which concluded on December 4. He has plans to go to Bangalore to discuss with the IT industry. ISO is a global non-governmental

body having membership of national standard bodies from 157 countries. India is represented in the ISO through the Bureau of Indian Standards (BIS) from 1947. ISO and has been accorded observer status in the WTO and has an institutional arrangements with this global trade body to suggest solution arising out of technical barriers to trade (TBT). BIS is the designated TBT point in India. BIS has formulated 18324 standards for goods and services, out of which only 4500 are aligned to ISO norms. India has been elected to represent in the ISO governing council for two years beginning from January 2008. Earlier India represented in the ISO governing council in 2002 and 2003. The ISO governing council has 18 members in total. India had hosted the meeting ISO sub-committees on plastics and textiles. Earlier in 1965-67 Jehangir Ghandy and DC Kothari from India were the presidents of

ISO. Lal C Verman from India was ISO vice-president in 1949-51 and in 1952-54. India is also a participating member ISO sub-panels like DEVCO, CASCO, COPOLCO. After ISO declaring South Asia region as a separate entity in standard formulations, India is the regional coordinator. ISO members are ranked according to the contribution in quality setting as well as country's GDP. India ranked 18 and is in the second group of countries alongwith China, Brazil, Spain and Holland. Bryden said that there was 10% increase in Asian membership in ISO technical committees. ISO formulates 100 new standards every month. It works closely with UN agencies like Codex, ILO, IMO, ITC, UPU, UN/ECE, UNIDO, WHO, WMO, WTO-OMT and also with other global standards bodies like IEC and ITU. It also cooperates with the OECD and has links with seven regional bodies like ACCSQ, AIDMO, ARSO, CEN, COPANT, EASC, PASC. It has cooperation

agreements with World Economic Forum, IAF, ILAC, Consumers International, ICC, IFAN and World Energy Council. ----------- India to counter Australia, Thailand on sugar subsidy http://www.financialexpress.com/news/India-to-counter-Australia-Thailand-on-sugar-subsidy/245905/0 ASHOK B SHARMAPosted online: Sunday , December 02, 2007 at 2211 hrs IST World's two leading exporters, Australia and Thailand have questioned India's inland transport subsidy for sugar exports at the WTO. India has not only come out in defence of its measures but is also gearing up to counter question the support given by these two countries to their sugar sector. The India has been compensating inland movement in coastal areas to the extent of Rs 1,350 a tonne and Rs 1,450 a tonne for movement of sugar for exports by mills located in the interior. The official records have not termed this as 'assistance" and not as subsidy. Reacting to the move by Australia and Thailand, the Indian commerce minister, Kamal Nath has maintained the measure as WTO compatible. According to sources, India is also gearing up to question the subsidy and support given by Thailand and Australia for sugar exports. Thailand has set up Cane and Sugar Fund (CSF) and according to records 20,286 million baht had been disbursed to cane growers as interest

free long-term loan in the 1998-2004. Most of the loan has not yet been recovered, which practically amounts to making "direct payments." Even till date, despite no recovery, CSF continues to extend loan. The then deputy secretary general of Thai Cane and Sugar Board, Nattaphon Nattasomboon at the 10th Asia International Sugar Conference in May 2004 in Kaula Lampur in Malaysia had admitted that the outstanding loan amount was 15,598 million bhat. The loan was extended to growers to keep them in cultivation as they were severely affected due to low prices for both sugar and cane, he said. Australia is the member of Carins group of countries which advocates "free and fair" trade and asks other countries to phase out their farm subsidies. But it is guilty of veiled subsidization. It may be noted in the context that Australia and Thailand which are guilty of veiled subsidization had

successfully challenged EU's cross subsidization of sugar sector alongwith Brazil. Australia exports about 95% of its sugar and Queensland produces 95% of the sugar produced in the country. The Queensland Sugar Ltd has monopoly rights over procurement of raw sugar from growers for export, a measure which is contrary to the WTO provisions. Although the applied tariffs on raw and refined sugar in Australia have been scaled down to zero since 1997, domestic prices of refined sugar are regulated through a complicated internal mechanism of distribution thereby discouraging imports. Over the past few years, Australia has introduced support regimes like emergency income support, interest rate subsidy and outright grants. About 444 million Australian dollar assistance was approved by the federal and state governments on April 28, 2004 under Sugar Reform Bill. The Australian support package programme includes, sustainability grant to growers and millers (Aus $ 146 million), re-establishment grant to producers who wish to leave the industry (Aus $ 96 million), grower restructuring grant (Aus $ 40 million), income support (Aus $ 21 million), business planning for growers, harvesters and mills (Aus $ 15.5 million), re-training (Aus 7 million), inter-generational transfers (Aus $23 million) and regional and community development projects (Aus $ 75 million). Funding was initially designed for a 3-year period and some of the components of programme have been completed. The regional community and development projects are slated to continue till June, 2008. This is designed to fund development of food grade low glycernic index sugar and molasses extracts, establishment of a sugarcane mulching facility and improvement of cane transport and management systems.

-------------- India and East Asia & ASEAN - Trade, Cooperation and Proposed FTAs India is choosy about eastern neighbours http://www.financialexpress.com/news/India-is-choosy-about-eastern-neighbours/246733/0 ASHOK B SHARMAPosted online: Tuesday , December 04, 2007 at 2341 hrs IST India has been selective in developing its relationship with its eastern neighbours. Over the years, India's merchandise trade with ASEAN remained concentrated in five major countries, namely

Malaysia, Indonesia, Singapore, Thailand and to some extent, the Philippines. In June 1997, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMST-EC) was set up at a sub-regional meeting in Thailand comprising countries like Bangladesh, India, Sri Lanka and Thailand. Subsequently Myanmar, Bhutan and Nepal joined up and BIMST-EC decided to work out a free-trade framework agreement. India expected that BIMST-EC would be the gateway for strengthening its relationship with ASEAN. The Mekong-Ganga Cooperation (MGC) came into being from November 10, 2000 at Vientiane and the first ministerial meeting was held at that time. MCG comprises six countries namely, Thailand, Myanmar, Cambodia, Laos, Vietnam and India. The emphasis were on four areas of cooperation, like tourism, culture, education and transportation linkage in order to be the solid foundation for future trade and

investment cooperation in the region. But India's policy over the years has been to develop relations with the influential countries in east and south-east Asia like China, Japan, South Korea, Malaysia, Indonesia, Thailand, Singapore and the Philippines. India has not shown a great deal of interest in some of its other smaller neighbours. The Cambodian prime minister, Samdech Hun Sen, for instance, was not accorded a ceremonial welcome when he landed in Delhi on July 9, this year. He had to leave the country immediately—the reason was—the nation was mourning the death of the former prime minister, Chandra Shekhar. However, Sen is again visiting India on December 8, this year. In bilateral trade with Cambodia, Laos and Vietman, the trade balance is heavily weighed in favour of India, while in bilateral trade with Thailand and Malaysia, the trade balance is not in favour of India.

In 2006-07, India's exports to Cambodia grew by 115.63% to be at $52.16 million, while its imports from that country was only $1.58 million. Similarly, India's exports to Laos in 2005-06 grew by 106.55% to be at $5.47 million, while its imports from that country was only $0.10 million. India's exports to Vietnam in 2006-07 grew by 42.27% to be at $982.60 million, while its imports from that country was only $167.65 million. Vietnam has rich deposits of natural gas and oil that can benefit India in meeting its energy needs. If India develops better economic cooperation with small countries in the region namely, Cambodia, Laos and Vietnam, it would help to boost its presence in the ASEAN region. Also, there is a need to improve trade and economic cooperation with Myanmar for strategic reasons. Myanmar has good reserves of gas and oil that can help India in meeting its energy needs. Myanmar grows and exports pulses to India, which is in shortfall in this essential agro commodity. Increase in border trade with India can help the landlocked northeastern part of the country with better prospects. At present border trade in select 22 items is permitted through three select points, namely Moreh in Manipur, Zowkhathar in Mizoram and Lungwa in Nagaland. The border trade is severely limited. Indians are allowed to cross the border with the assurance that they would return on the same day. It has been proposed to link United Bank of India at Moreh post in Manipur with Myanmarese Economic Bank at Tamu. If this happens, the two banks would avail the letter of credit facilities under which Indian rupee and Myanmarese kyats can be legally converted. Cooperation between India and Myanmar is also essential to check narcotic trade. Myanmar can act as India's gateway to the ASEAN through the land route. India's relations with Myanmar over the past years had been severely affected due to political reason as the former had criticised the latter's martial regime. Recently, there has been a shift in the India's attitude towards Myanmar and the relationship between the two countries is inching for better. It would be better to integrate Myanmar into South Asian Economy by inviting it to join SAARC. India should win over less important economies in the Asean region and counter the growing presence of China, Japan and Korea. ---------------------- India-ASEAN Event Series---------- Cambodia calls for more Indian investment http://www.financialexpress.com/news/Cambodia-calls-for-more-Indian-investment/248180/0 ASHOK B SHARMAPosted online: Saturday , December 08, 2007 at 1817 hrs IST Cambodia has invited Indian investments in manufacturing, services, infrastructure and human resources development and said it would export to India some agricultural products in which it is competitive. Speaking at an interaction with the Indian industry in Delhi on Saturday jointly hosted by the apex bodies, FICCI, Assocham and CII, the Cambodian Prime Minister, Samdech Akka Moha Sena Pai Techo Hun Sen said : "we are strongly determined to attract as much as possible foreign direct investment

(FDIs), including that from India." He said under the new policy private investors investing in infrastructure development have the option to build-operate-transfer (BOT) and Build-operate-own (BOO). Foreign investors can do business with or without Cambodian partners. In case of local partnership the level of equity, would be decided by the foreign investor. On the issue of the ownership of the land, Sen clarified that the right has been reserved for Cambodian citizens, the foreigners can use land through lease contracts for a period up to 99 years. The Cambodian Prime Minister called for attracting investments in agro-business, manufacturing, services, tourism, human resources development, hardware and software, roads, bridges, seaports, airports, railways, power, clean water supply, irrigation, development and transfer of knowledge and technology, telecommunications,

information technology. He said, "Cambodia has comparative advantages and potentials in agriculture and agro-industry, labour-intensive industries, processing, tourism, mining and in some sections of manufacturing and services sectors……At the same time promising future from commercialization of oil, gas and other mineral resources has opened up new economic opportunities and hope for Cambodia to become a new development zone in the region." At present India-Cambodia bilateral trade is less than $ 50 million, with balance tilted in favour of India. Cambodian exports to India are negligible. Cambodia is a member of the ASEAN group, with which India is planning to sign a free trade agreement. The Cambodian Prime Minister praised spirit of cooperation expressed by the Indian Prime Minister Manmohan Singh at the 6th ASEAN-India Summit in Singapore on November 21, 2007. "I am hopeful

that India will positively consider our request to provide assistance in IT, where it is known for its expertise," Cambodian Prime Minister said. The Indian minister of state for communications and IT, Shakeel Ahmed said that cooperation between the two countries in human resources development and IT was necessary due to the presence of skilled manpower in both the countries. He said that India had launched a plan to ensure 100000 broadband connectivity in its rural areas. Since the restoration of internal peace in 1999, Cambodian Economy had gained momentum and dynamism by growing at an average rate of 9.4% per annum in 2000-06. Economic growth peaked at 13.5% in 2005 and in 2006 it was 10.8%. In 2007 the growth is expected around 9.5%. Cambodia's average per capita income almost doubled from $ 288 in 2000 to $ 513 in 2006, while its price inflation rate was low at an average

of under 3% and the currency exchange rate was broadly stable. Cambodia's foreign exchange reserves increased threefold from about $ 500 million in 2000 to more than $ 1.5 billion as of date. The Cambodian Prime Minister assured the Indian investors that judicial system has been strengthened and legal framework and institutions have been developed to protect the interests of investors. ----------------- UP farmers demand cane price arrears http://www.financialexpress.com/news/UP-farmers-demand-cane-price-arrears/245906/0 ASHOK B SHARMAPosted online: Sunday , December 02, 2007 at 2220 hrs IST Cane growers in Uttar Pradesh, the major sugar producing state of Uttar Pradesh have demanded that the sugar mills immediately clear previous year's arrears payable to them with interest. They have also asked the state government to legislate a hike in cane prices for the current year. According to farmers a balance of Rs 1,200 remained to be paid as cane prices from the previous year. The director-general of Indian Sugar Mills Association (ISMA) SL Jain also confirmed that arrears payable to cane growers by alone by private sugar mill amounted to Rs 1,100 crore. The balance amount is the arrears payable by public sector and cooperative mills in the state. The cane growers are unhappy with the recent verdict of the Lucknow bench of the High

Court which called for a reduction in the state adviced price (SAP) in the current year from Rs 1,250 a tonne to 1100 a tonne. Farmers' agitation subsequently led to the arrest of the Bharatiya Kisan Union leader, Mahendra Singh Tikait on November 12. Farmers from all over the country including the president of Bharatiya Krishak Samaj, Krishan Bir Chaudhary have written to the state chief minister, Mayawati and the prime minister, Manmohan Singh demanding the release of Tikiat and respecting the demands of Uttar Pradesh farmers. According to state farmers input costs have gone up by over Rs 150 a tonne and a reduction in SAP would severely affect their income. In UP as the farmers do not get much benefit from thhe government sponsored procurement of wheat and paddy, they find cane cultivation as an assured source of income. When asked about the industry's view the ISMA director general, SL Jain said : "While the government is subsidises procurement of wheat and paddy, the industry subsidises cane growers. This is utterly unfortunate." Jain alleged that the SAPs were fixed by the state not on basis of economics, but for political considerations. "We find difficult to pay such high SAPs and that is why the arrears accumulate. Mills get loans from banks against 85% of the valuation of the stock. The valuation is done on basis of the current market price or the average price of the last 3 months, whichever is lower. Mills pay farmers after getting loans, which is not adequate to cover all costs," said Jain and added that while sugar recovery was about Rs 1010 per tonne of cane, it was not sufficient to meet the costs and pay a high SAP. -------------------------

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