Tariff Protection – Minecraft Inventions http://minecraftinventions.com/ Wed, 20 Oct 2021 15:00:22 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://minecraftinventions.com/wp-content/uploads/2021/04/minecraft-inventions-icon-1.png Tariff Protection – Minecraft Inventions http://minecraftinventions.com/ 32 32 I blame Ofgem for the collapse of my energy company | Andy harris http://minecraftinventions.com/i-blame-ofgem-for-the-collapse-of-my-energy-company-andy-harris/ Wed, 20 Oct 2021 14:34:00 +0000 http://minecraftinventions.com/i-blame-ofgem-for-the-collapse-of-my-energy-company-andy-harris/

I take no pleasure in saying to Ofgem, “I told you so. Thanks to a perfect storm in the energy sector, many suppliers have failed. But with all storms, you can see the clouds forming first. Utility Point, the company I helped create and grow with more than 220,000 customers, has been the victim of regulators’ inaction.

What started in late spring 2021 as a search for strategic partnerships and investments to help us grow, quickly turned, as the market deteriorated, to a quest for funds to help us get through a difficult winter. It wasn’t long before it became apparent that we were fighting for the survival of Utility Point.

The board of directors held weekly meetings to ensure that we follow our position and the market as closely as possible. It was when the search for investments or external partnerships was exhausted that we knew we had come to the end of the road. We immediately contacted Ofgem to let them know that we were in a position where we could not honor our commitments. We had a few days before the news went public and we weren’t allowed to tell our employees. This period has been tortuous. My biggest concern was, and remains, the impact on our 192 wonderful staff, as well as the companies we have worked with, all of whom were suddenly facing an uncertain future through no fault of their own.

“We must not bail out poorly run businesses” is an oft-repeated truism. Yet it is evident that not all of the failed energy providers have been mismanaged. Saying this demonstrates a lack of understanding of how energy providers work. Any implication that this has happened to our business is offensive and false.

I have no hesitation in pointing the finger at Ofgem for what happened. For years, the government and Ofgem have tinkered with regulations – from poorly designed and miscalculated price caps, to passing more obligations to suppliers, and new initiatives to support vulnerable clients without provisions for cost recovery. All of this made it harder for suppliers to operate and created an environment in which small operators were inevitable to fail. When gas prices soared this fall, lightning struck and many of these small suppliers found themselves exposed.

Customers are no better off. The price cap was put in place to prevent suppliers from penalizing their customers who stay on standard variable rates after their fixed rate term expires, and to ensure that everyone pays a fair price. This mechanism was not designed to protect customers from the price increases we are seeing now. Based on current average wholesale prices, I wouldn’t be surprised to see the price cap increase by more than 20% in April 2022. It doesn’t protect people from higher prices, it just facilitates a delay in the price. cost pass-through.

In the event of supplier default, their costs – such as customer credit balances – will be passed on to the remaining suppliers and also included in the price cap. Each supplier failure will increase the cap, further increasing costs for customers.

What’s frustrating is that a simpler approach to regulation that encourages competition and innovation, while ensuring that the most loyal customers are not penalized, is possible. Why not remove the price cap? Fixed rates could be charged at a small premium, reflecting risk, for clients who want security, in a manner similar to mortgages. It could then be guaranteed by a condition of license that a supplier’s cheapest rate should be its standard variable rate. At the end of your fixed rate, you will automatically switch to the cheapest rate and providers will compete against each other on that basis: those with the best-run businesses would be the most competitive and grow.

So instead of pointing fingers at “poorly managed companies” what do we do when we have a poorly managed regulator?

Andy Harris is a former CIO at Utility Point

Source link

]]> Why is the United States threatening to increase tariffs on imports from certain countries? Is a digital war on? http://minecraftinventions.com/why-is-the-united-states-threatening-to-increase-tariffs-on-imports-from-certain-countries-is-a-digital-war-on/ Tue, 19 Oct 2021 05:03:47 +0000 http://minecraftinventions.com/why-is-the-united-states-threatening-to-increase-tariffs-on-imports-from-certain-countries-is-a-digital-war-on/

The United States recently announced tariffs of 25% on more than $ 2 billion in imports from six countries on its digital services taxes, but immediately suspended tariffs to allow time for tax negotiations international organizations to continue.

What prompted the United States to take such steps?

The US Trade Representative’s office had approved the threat of tariffs on goods from Great Britain, Italy, Spain, Turkey, India and Austria after a “Article 301” special report found that their digital taxes discriminated against U.S. businesses. The potential tariffs aim to match the amount of digital taxes that would be collected from US businesses.

The United States Trade Representative (USTR) has investigated under Section 301 of the United States Commerce Act of 1974, which authorizes him to respond appropriately to an action by a foreign country that is discriminatory and adversely affects American commerce.

So what is the United States Special Report 301? It primarily reflects the annual review of the global state of intellectual property (IP) rights protection and social oversight. The exam reflects the administration’s desire to encourage and maintain voluntary environments for innovation, as well as effective protection of scientific discipline and social control, in markets around the world, which not only benefit to American exporters, but also to national industries of scientific discipline in these markets.
According to the report, India’s Digital Services Tax (DST) discriminates in two ways: first, it specifically excludes Indian digital businesses from its scope; and second, according to the report, DSTs are not identical services provided by non-digital service providers.

What does India say in this?

The idea of ​​the United States that Indian Daylight Saving Time is biased is not true. In the given diagram, most of the big tech companies are based in the United States. According to the USTR, 119 companies worldwide would likely be subject to DST, of which 86 are US companies! Thus, it may appear in the United States that daylight saving time is biased. Indian digital service providers will not pay DST due to the specific exemption provided by law (of course they are subject to Indian income tax).

What other countries are in this club?

France imposes 3% DST. In the Association of Southeast Asian Nations (ASEAN) region, Singapore, Indonesia and Malaysia are imposing a DST, with Thailand announcing plans to tax its foreign digital service providers. Wait, there is more. Negotiations are underway within the Organization for Economic Co-operation and Development (OECD) involving 140 countries to revise international tax rules given the rapidly growing internet economies.

The story so far

With advancements in technology, high speed internet and broadband services across the world, a business can run its operations smoothly without needing to be physically present in a particular country. A retail store in France can sell clothes directly to Indian customers without having a single storefront or a real seller! A gaming giant located in South Korea can bring players from all over the world to its platform through remote servers. A streaming giant in the United States can send its content digitally anywhere, anytime without a hitch.

As more and more companies join the crusade, it becomes imperative for governments to do something out of the blue. Because operating from a foreign country allows companies to avoid paying tariffs in other jurisdictions, even when dealing with customers there. Putting aside the obvious fact that local government could lose tax revenue, there is another problem that cannot be overlooked.

Now let’s put India in the spotlight. The Indian government wants local businesses to compete on an equal footing with their global peers. But this is rather impossible when the regulations allow them to operate in the country duty-free. Of course, the foreign company will have to pay taxes in its home country; but more often than not, the prices of companies are much lower elsewhere than in our country. So it is clear and obvious that local businesses are at a disadvantage here and that was certainly not acceptable to the Indian government.

So what should be done? Let’s go back to 2016.

In 2016, the Indian Minister of Finance pledged to oblige non-resident e-commerce operators to pay their dues. The government revealed the Equalization tax, a Law which made it possible to add a tax of 6% on non-resident Internet companies for advertising services rendered to Indian companies. This was known as the Digital Advertising Tax (DAT) or commonly the Google Tax., as a large chunk of online ad spending could be attributed to the search giant. And soon enough, large sums of money began to flow into the government treasuries (Rs 550 crores in 2017-2018). Most Internet companies thought that would be the end of it.

What’s the matter now? What is the digital services tax (DST)?

Everything was running smoothly until the Indian government in March 2020 extended the scope of the existing equalization tax to a range of digital services including e-commerce platforms. Any payment made by non-residents in relation to an Indian user will be subject to a 2% charge, ouch! This tax will come into effect when the goods or services are provided to an Indian resident, or when ordered through an Indian IP address. So if there are individuals and businesses ordering products through, say, an Amazon US or booking a hotel room through a foreign website, they have to pay this tax in full.

Let’s understand who exactly is a non-resident e-commerce operator. It designates a non-resident (foreigner) who owns, runs or manages an electronic platform for the sale of goods online or for the provision of online services, Amazon, Netflix, Cloud services are a few examples.

Should we be worried? Why?

Ultimately, this could weigh on digital consumers. Experts suggest that daylight saving time can be passed on to consumers. Although Indian customer may not pay this as tax, it might mean higher prices as they tax the Company. So, wait and see if this extra tax gets passed on to consumers and ends up adding a little extra burden to your Netflix bill, eh?

On the heavier side, the USTR’s investigations could pose a serious threat of tariff retaliation, as similar tariffs have been imposed by the United States on France. The United States is India’s largest trading partner and with which India has a trade surplus (India’s net exports are greater than net imports with the United States), this step could seriously hurt the economy of the country.

Additionally, it could turn into a digital trade war-like situation and harm India’s information and communications industry.

Source link

]]>
Swiss Federal Council adopts message on Renewable Energy Supply Act – Commentary http://minecraftinventions.com/swiss-federal-council-adopts-message-on-renewable-energy-supply-act-commentary/ Mon, 18 Oct 2021 00:12:23 +0000 http://minecraftinventions.com/swiss-federal-council-adopts-message-on-renewable-energy-supply-act-commentary/

Background
Main aspects of the Renewable Energy Supply Act
Comment

The Federal Council recently adopted the Federal Law on the Security of Electricity Supply by Renewable Energies (Renewable Energy Supply Act). As requested by the participants in the consultation process, the law combines a revised version of the Electricity Supply Law and a revised version of the Energy Law, aimed at enhancing the expansion of domestic renewable energies and at securing supplies to Switzerland.

Background

Economic and technological developments as well as political decisions in Switzerland and abroad are causing fundamental changes in the energy market. To prepare for these changes, the Federal Council has drawn up the Energy Strategy 2050, with the aim of enabling Switzerland to maintain its high level of supply and to reduce Switzerland’s environmental impact in terms of energy. To this end, Swiss national production of renewable energies will be developed rapidly and consistently, and the security of the grid and of electricity supply will be enhanced by specific new measures. In the Renewable Energy Supply Act, the Federal Council proposes a legal framework that provides planning security and investment incentives for the expansion of renewable electricity production and its market integration.

Main aspects of the Renewable Energy Supply Act

Binding target values
The proposed legislation contains binding target values ​​for 2035 and 2050 that specify the expansion of hydropower and other renewables and the reduction of energy consumption per capita. These binding target values ​​will align legislation with security of supply and climate policy objectives, thus providing planning security and investment incentives.

Tools
The existing tools supporting renewable energies are limited until the end of 2022 and 2030. These will be extended until 2035 and designed in a more market-oriented way, namely:

  • large photovoltaic installations will be acquired through calls for tenders;
  • more financial resources will be available for large hydropower plants; and
  • the feed-in tariff system will be replaced by direct investment contributions, in order to reduce the administrative burden associated with feed-in tariffs and to increase the efficiency of subsidies.

The tools will continue to be funded through a network surcharge, which will not be increased, but taken over a longer period.

Liberalization of the electricity market
Consumers who produce electricity themselves (prosumers), producers and suppliers of electricity will benefit from greater economic freedom. In particular, by opening up the electricity market, end consumers can freely choose their electricity supplier. This measure will strengthen decentralized renewable energy production and support innovative business models (e.g. energy communities) that are currently not allowed to operate in areas subject to monopoly legislation, such as direct selling. electricity produced locally via “neighborhood” platforms or innovative offers linked to e-mobility and home automation. This will further integrate renewable energies into the market. However, in order to protect small end users (i.e. households) from abusive practices, a basic supply regime will be maintained, which will provide renewable energy.

Longer-term security of electricity supply in winter
Switzerland’s current self-sufficiency will be maintained. To achieve this, additional climate-neutral power generation capacity will be added by 2040, in addition to the targeted increase in renewables, which can be reliably supplied in winter. The Federal Council intends to finance power plants (mainly large storage) via a “winter surcharge”, which is already included in the law on electricity supply as a precautionary measure against possible security deficits. Since the planning, approval and construction processes of the corresponding power plants are lengthy, the Federal Council intends to prioritize the expansion of storage hydropower on a large scale. In particular, projects meeting the adequacy and contribution criteria set out in the Electricity Supply Law will receive financial support in the form of investment contribution upon request. A prequalification process involving several interested parties (eg cantons, operators and environmental associations) will determine eligible projects. If it becomes clear by 2030 that the expansion target cannot be achieved solely by focusing on large-scale hydropower, technologically neutral tenders will be organized for additional capacities with lead times. shorter delivery.

In addition, a strategic energy reserve will be established to provide additional assurance that sufficient energy is also available towards the end of the winter seasons. Swissgrid will conduct a tender procedure for the acquisition of the strategic energy reserve. Successful bidders will undertake to retain a certain minimum amount of energy in the storage facility for a specified period, or to refrain from using such an amount.

Datahub and data protection
Strong competition and innovative business models in the electricity market require efficient exchange and access to digital data and information. In this regard, the Federal Council has proposed two revisions to the law on electricity supply; the act:

  • define the regulatory framework for the exchange and protection of data. A national energy data infrastructure with a data center will be established to support the various measures. This data hub ensures efficient data exchanges and allows uniform access to data, while guaranteeing data security and protection.
  • clarify certain aspects relating to counting. In particular, large end consumers, electricity producers and storage operators will be free to choose their metering service provider. In addition, the right to choose the metering service provider will be granted to self-consuming market players and certain end-user groups, regardless of their annual electricity consumption, if they need access to electricity. their metering services for consumption flexibility or energy savings. measures.

Ensure short-term security of supply
As negotiations for an institutional agreement between Switzerland and the European Union have been halted, it is unlikely that the envisaged electricity agreement with the European Union will be concluded, at least in the short term. The Federal Council has instructed several authorities and Swissgrid to analyze the short- and medium-term effects on grid security, security of supply and any additional measures that may be necessary to ensure security of supply in the short term. It is expected that a corresponding report will be submitted to the Federal Council by the end of 2021.

Comment

The Council of States will discuss the law on the supply of renewable energies proposed by the Federal Council in the last months of 2021. However, the Commission for the Environment, Spatial Planning and Energy of the National Council considers the Federal Council’s proposal to be “illusory in terms of timing” and the committee is concerned about the emergence of a funding gap for certain renewable energies, as the renewable energy support tools currently in force will expire at the end 2022. Therefore, the commission has prepared a separate proposal as an interim solution, which aims to replace the expiration feed -in the tariff system with investment contributions for the respective technologies (which will expire at the end of 2030). This interim solution is currently being debated in Parliament and the remaining differences between the Council of States and the National Council are being resolved. In general, it seems that this interim solution will receive the necessary support for Parliament to adopt it. Therefore, renewables are expected to receive a new regulatory boost and they will likely be integrated into the energy market on a broader basis.

for more information please contact Marcel Meinhardt or Patrick Sattler at Lenz & Staehelin by phone (+41 58 450 80 00) or by e-mail ([email protected] Where [email protected]). The Lenz & Staehelin website can be accessed at www.lenzstaehelin.com.

Source link

]]>
The president signs a decree to increase social contributions http://minecraftinventions.com/the-president-signs-a-decree-to-increase-social-contributions/ Sat, 16 Oct 2021 12:02:00 +0000 http://minecraftinventions.com/the-president-signs-a-decree-to-increase-social-contributions/

October 16, 2021 4:02 p.m. (UTC + 04:00)

458

By Vafa Ismayilova

Azerbaijani President Ilham Aliyev on October 16 signed a decree on further measures in the field of protection of the social welfare of the population, Azertag reported.

Under this document, the Cabinet of Ministers was tasked with preparing and submitting to the President the proposals to reflect the increase in social benefits, wages and salaries in the state budget proposal for 2022.

The decree was adopted to mitigate the negative effects of processes in international markets on domestic prices and to strengthen social protection for the population, especially the most vulnerable groups.

The presidential decree can also be seen as an important step to offset rising gas and electricity prices and a factor demonstrating that the citizen and their well-being are at the center of state policy.

The well-being of citizens at the center of state policy

Improving the well-being of the country’s population is one of the important priorities of socio-economic policy. In recent years, significant progress has been made in this direction, consistent measures have been taken to strengthen the social protection of the population, increase social benefits and wages. To this end, two social reform envelopes were adopted and implemented in 2019, increasing the amount of benefits and pensions by 92% on average, the minimum pension by 72%, the minimum wage by 92% and the wages of workers. state-funded organizations average 50 percent, according to the text of the decree.

Thanks to the measures taken, compared to the beginning of 2018, the average nominal monthly salary increased by 39%, the average amount of pensions by 60%, the average amount of social benefits by 2 times and the average amount of pensions by the President of Azerbaijan. by 2.2 times, notes the document.

The document points out that in 2021, Azerbaijan confidently returned to the path of economic recovery, leaving behind the shocks caused by the COVID-19 pandemic. This includes the development of pandemic vaccines around the world, the implementation of comprehensive and effective socio-economic measures by the state to protect the Azerbaijani people from this disease in the country, especially a large-scale vaccination campaign, as well financial and social support for socially vulnerable groups in 2020. This has also been possible through the granting of tax advantages and bank credits to entrepreneurs and organizations operating in the economic spheres affected by the pandemic.

At the same time, it should be noted that the recovery trends of the world economy are strengthening.

However, the recovery of global economic activity and the fact that the rate of growth of aggregate demand has far exceeded the rate of return of production, transport, logistics and supply capacities suspended on turnover economic, created new challenges, causing a significant rise in prices for many goods in international markets.

This situation leads to an increase in the prices of imported goods, including a number of food products, and, consequently, has a negative impact on the well-being of the most socially vulnerable groups.

Decision of the Tariff Board

Earlier on October 16, the Azerbaijani Tariff (Price) Council amended its decision “On the regulation of national electricity tariffs”, increasing the prices of electricity and gas.

Under the changes, the existing differentiation of tariffs for the population has been changed (up to 300 and over 300 kWh).

Tariffs for the population are set at eight qapiks per 1 kWh for consumption up to 200 kWh, nine qapiks / kWh for consumption from 200 kWh to 300 kWh (including 300 kWh), and 13 qapiks / kWh for higher consumption at 300 kWh.

In addition, the tariffs for consumption of up to 1,200 cubic meters of gas per year have been increased from 10 to 12 qapiks.

The monthly gas consumption in the per capita consumption basket is fixed at 21 cubic meters. Considering that the average family consists of four people, this means consumption of around 1,000 cubic meters of gas per year. The direct impact of the new tariffs on the monthly consumption basket of a family of four when paying for the gas consumed will amount to 1.72 manat ($ 1.01).

Follow us on twitter @AzerNewsAz


Source link

]]>
Farmers seek to re-engage in CPTPP http://minecraftinventions.com/farmers-seek-to-re-engage-in-cptpp/ Fri, 15 Oct 2021 15:50:46 +0000 http://minecraftinventions.com/farmers-seek-to-re-engage-in-cptpp/

Farmers involved in a virtual Farmers for Free Trade Roundtable on October 14 representing corn, pork, beef and milk farms, all supported a more multilateral approach to trade, such as reintegration into the Comprehensive and progressive agreement for the trans-Pacific, the predecessor of the TPP. An inward approach could leave American producers behind while others continue to work to advance trade agreements.

Darci Vetter, a former US agricultural trade negotiator under the Obama administration and active in negotiating the agricultural provisions of the Trans-Pacific Partnership, moderated the discussion which underscored the need for this Biden administration to be proactive in negotiating access. additional to agricultural markets so as not to fall behind.

Joseph Glauber, senior researcher at the International Food Policy Research Institute and former chief economist of the USDA, explains that over the past three decades, U.S. agricultural exports have skyrocketed, especially for meats.

For example, in the 1990s only 6% of poultry was exported, while today it accounts for 16-17% of total exported production. The United States was previously a net importer of beef. Now that markets are opening up in Asia, beef exports have grown from 4% to over 12% in recent decades. The history of pork is staggering, rising from just 2-4% of national exported production to currently over 25% of pork. Dairy products were previously dumped from surplus products into the world market, and exports account for over 16% of total milk solids production in 2020.

Southeast Asia, which has seen many countries participate in the current CPTPP deal, offers enormous market potential for US agricultural exports. And with the news that China, UK, Korea and Taiwan are looking to secure that deal, it might be even more important that the US is at the table as well.

Howard “AV” Roth, Jr., former chairman of the National Pork Producers Council and a fifth generation farmer who owns and operates Roth Feeder Pig, Inc. in Wauzeka, Wisc., Says that when the CPTPP came into effect in Japan, the pork producers began to lose market share quickly. While the Trump administration was able to negotiate a mini-deal with Japan to minimize these losses, other countries could quickly pull the growth potential of U.S. producers in the Southeast Asia region.

Roth says it’s imperative for the administration to focus on expanding markets, especially in Southeast Asia. Vietnam unilaterally lowered tariffs on pork, and since then U.S. pork exports have increased 150% in the first seven months of the year. While market access wins are important, Roth says we should focus on returning to CPTPP and encouraging the administration to start broader market access negotiations.

Those looking to enter the CPTPP are huge markets for pork producers, says Roth. “We have to be there with our competition. As these rules form, Roth says it’s important the United States is at the table as new countries arrive.

Related: Time for a New Business Strategy

Vetter said from her experience as a negotiator during the TPP, one of the things discussed was the ability of the multilateral agreement to be a magnet. Other countries see the benefit of being part of this “club” to get the tariff advantages, and they are ready to adopt some of these rules on labor, environment, intellectual property and protection.

“This magnet seems to be working, but we’re not currently inside,” Vetter says.

Glauber says that the idea of ​​going from country to country and trying to counter the market access problems the United States has suffered by not being part of the CPTPP as it is with Japan will be very timely. He hopes the Biden administration will begin to look outward and seek potential re-engagement in the region. We were instrumental in creating the architecture of the TPP, which has now become the CPTPP.

“I think it may take a little while for the administration to start doing it, but hopefully within a year or so we’ll start to see changes in that direction,” Glauber said. “Otherwise, I think you might be really falling behind. “

Doug Chapin, Michigan dairy farmer and president of the Michigan Milk Producers Association, says U.S. exporters face increasingly uneven playing field as the European Union and New Zealand continue to strike new deals trading with key markets while the United States lags behind.

“Besides the USMCA’s NAFTA update, the latest new US free trade agreements came into effect almost a decade ago and negotiations took place even earlier than that,” he said. Chapin said. “We seem to either assess or sometimes negotiate deals, but fail to implement comprehensive new trade deals that eliminate tariffs on our exports.”

Source link

]]>
19 months to go, Buhari urges ministers to accelerate achievement of goals http://minecraftinventions.com/19-months-to-go-buhari-urges-ministers-to-accelerate-achievement-of-goals/ Wed, 13 Oct 2021 04:41:07 +0000 http://minecraftinventions.com/19-months-to-go-buhari-urges-ministers-to-accelerate-achievement-of-goals/

• Asks SGF to convene quarterly meetings to review government priority areas

• Okonjo-Iweala: the cost of Nigerian trade is too high to attract investment

By Deji Elumoye

With just 19 months and two weeks to complete his two eight-year terms, President Muhammadu Buhari yesterday called on ministers and permanent secretaries to redouble their efforts and work in synergy to achieve the goal set by his administration. to improve the living conditions of all Nigerians.

The president, who gave the charge to Abuja, during his closing remarks at the end of a two-day retreat on the mid-term ministerial performance review, also called on ministers to “speed up the process. implementation ”of their mandates in the nine priority areas of its administration.

It is just as the Director General of the World Trade Organization (WTO), Dr Ngozi Okonjo-Iweala, who spoke at one of the retreat sessions, lamented that the cost of Nigerian trade is too high to attract foreign investors.

Buhari, who further mandated the Federation’s government secretary, Patron Mustapha, to convene quarterly meetings to allow them to further discuss priority areas of the administration, stressed the need for synergy between fiscal and monetary authorities in the country to keep the economy on track. growth trajectory.

In the same shared spirit, the President asked the Head of Department, Dr. Folashade Yemi-Esan, to urgently invest in strengthening the capacity of the planning, research and statistics departments in all MDAs.

Buhari noted that the intensive discussions at the retreat provided some reflection on what this administration has been doing and where it needs to improve and refocus attention.

He said: “The retreat has enabled us to undertake an objective assessment of our management in accordance with the contract we have signed with the Nigerian people to keep our election promises. Based on the evaluation report and the discussions at this retreat, I am pleased to see that progress has been made towards achieving our goals.

“The independent performance appraisal report presented on the first day of the retreat indicates that significant progress has been made in fulfilling ministerial mandates. Distinguished participants, the discussions during the retreat led us to accelerate the implementation of the deliverables.

“We need to close the gaps in our implementation efforts to ensure we meet the targets set by 2023.”

It is in this context that the President asked Mustapha to immediately start the process of convening quarterly coordination meetings for each priority area on the basis of the collaborative results framework.

He explained that the purpose of the meetings was to determine the status of implementation in the nine priority areas, identify bottlenecks and come up with immediate solutions.

“All ministers and permanent secretaries must be present. These are not meetings to be delegated, ”he said.

The President also requested the SGF office to immediately begin engaging with stakeholders to agree and advance a framework for the institutionalization of the central delivery coordination unit.

According to him, “all ministers and permanent secretaries must promote a strong performance culture in ministries, departments and agencies (MDA) by setting up intra-ministerial work teams.

Calling on the head of department to urgently invest in building the capacity of planning, research and statistics departments in all MDAs, Buhari added that the initiative should be carried out in collaboration with the central unit of coordination of the service.

While stressing the need for synergy between fiscal and monetary authorities, the president assured Nigerians that his administration will continue to implement fiscal measures to improve domestic revenue and mobilize external financial support to build a more resilient economy. .

He pledged that issues relating to expanding access to quality education, affordable health care and productivity for Nigerians would receive priority attention during the period of this administration.

“We will maintain all on-going efforts to rebuild our health system through targeted investments in the health sector, especially our vaccination campaign to stop the spread of the coronavirus pandemic.

“This administration remains committed to providing the education and training necessary for employment and entrepreneurship, in particular using technology to impact the relevant skills of our young people.

“Our social investment programs will be sustained in the years to come. We will continue to reach out to the poorest and most vulnerable households through the National Cash Transfer Program and other government initiatives.

The president further called on the Ministry of Humanitarian Affairs, Disaster Management and Social Development to come up with a legislative framework for social protection that also guarantees its flow of funding.

In addition, given the essential role of micro, small and medium enterprises (MSMEs) in economic growth and development, he added that efforts would be focused on removing any bottlenecks that militate against access. MSMEs to government support programs.

“The government will take a holistic approach to industrialization aligned with Nigeria’s aspirations and demands, working closely with key private sector stakeholders. We will continue to support SMEs given their multiplier effect on the economy, ”he said.

Regarding the national single window project, the President also asked the Minister of Finance, Budget and National Planning to ensure that all the MDAs concerned involved in the implementation of the projects complete all the processes necessary for the effective start-up. of the national single window platform by the first quarter. from 2022.

He spoke of the administration’s determination to put in place systems to fight corruption and improve governance, saying, “We will continue to tackle issues that foster corruption and undermine transparency in resource management. public. Efforts will be focused on improving coordination and synergy between anti-corruption agencies.

On infrastructure, the president pledged that the federal government would prioritize funding and ensure that all ongoing high-priority infrastructure projects are completed before his administration ends.

He announced that the Presidential Infrastructure Development Fund will continue to support the completion of legacy infrastructure projects across the country.

According to Buhari, the nine priority areas defined by the administration included building a prosperous and sustainable economy, improving social inclusion and reducing poverty, increasing agricultural production for food security and export as well as achieving energy sufficiency in electricity and petroleum products.

Others were developing transport and other infrastructure development, business growth, entrepreneurship and industrialization; access to quality education, affordable health care and productivity for Nigerians.

The administration has also given priority to building a system to fight corruption, improve governance and create social cohesion and security for all.

Meanwhile, Okonjo-Iweala, former Minister of Finance and Coordinating Minister of the Economy under the administration of former President Goodluck Jonathan, spoke of the need to improve the country’s security in order to attract foreign investment and national.

The WTO Director General said the country needs to reduce not only its trade costs, but also infrastructure costs, link costs, regulatory costs, customs costs and all costs associated with transporting goods from the factory to the end consumer to complete the facilitation of investments.

She pointed out that Nigeria’s trade cost was equivalent to a 306 percent tariff, one and a half times the cost in high-income countries.

According to her, congestion, capacity constraints and high costs in Nigerian ports do not encourage investments as they make it difficult to set up supply chain operations in the country.

She said, “It would be necessary to improve security and reduce transaction costs for foreign investments, even for domestic investments. And Nigeria is one of a group of countries negotiating an investment facilitation agreement at the WTO.

“Once this agreement is negotiated, ratified and implemented, it could help attract additional business investment.

“To complete the facilitation of investments, Nigeria needs to reduce trade costs, infrastructure costs, link costs, regulatory costs, customs costs, basically all costs associated with transporting goods from the tie factory. or from farm to end consumer.

“Nigeria’s trade costs are too high. According to the World Bank and ESCAP trade costs for 2019, trade costs for African countries are on average equivalent to a duty of 304% and for Nigeria they are even slightly higher at 306%.

“These numbers are one and a half times the cost of doing business in high income countries. Such high costs are not conducive to the formation of a regional value chain.

“Congestion, capacity constraints and high costs at our ports make life difficult for anyone looking to develop supply chain operations in Nigeria and therefore expand trade from there. “

Source link

]]>
Treasury bans the use of imported cement on all government funded projects http://minecraftinventions.com/treasury-bans-the-use-of-imported-cement-on-all-government-funded-projects/ Mon, 11 Oct 2021 22:01:34 +0000 http://minecraftinventions.com/treasury-bans-the-use-of-imported-cement-on-all-government-funded-projects/

The use of imported cement on government-funded projects was banned by the National Treasury from November 4, which will give local cement producers a boost.

The announcement prompted shares of the JSE PPC-listed cement and building materials producer to rise 8.98% on Monday to close at R5.34 per share.

Shares of competitor Sephaku Holdings, whose portfolio of construction and building materials assets includes subsidiary Métier Mixed Concrete and partner Dangote Cement South Africa (SepCem), rose 6% to close at 1.59 rand per share.

PPC and Sephaku stock prices

Bryan Perrie, CEO of Cement and Concrete SA (CCSA), the consolidated concrete and cement association, said on Monday that the cement industry has been campaigning for state protection from cheaper imported cement for several years. and is pleased with the designation of the cement.

Perry said the National Treasury has issued a circular to all relevant state departments informing them of the new decision in terms of regulating preferential markets.

He said the designation prescribes that all state bodies, including state entities such as national, provincial and local authorities and state-owned enterprises, must from November 4 this year stipulate in appeals for offers that only South Africa produces cement, locally produced-raw materials, will be permitted for all public sector construction projects.

Perry said the National Treasury has stipulated a 100% threshold for common cements and masonry.

“This is an important decision to protect a sector of vital importance to the national economy. In addition, it has come at the right time given the multibillion rand infrastructure projects planned by the government over the next three years. ”

The government unveiled in July 2020 the first 50 Integrated Strategic Projects (SIPs) and 12 special projects involving an investment of R340 billion that were part of a campaign to boost the economy and job creation after Covid- 19.

It unveiled the second tranche of projects last week, comprising a pipeline of 55 new catalytic infrastructure projects from various sectors valued at around R595 billion that will create around 538,500 job opportunities.

Perrie added that the cement’s designation will help protect the local cement industry from unfair competition.

“In countries like Kenya, for example, rampant imports have all but destroyed local cement production,” he said.

“Although cheaper imported cements arriving in South Africa may meet regulatory standards, South African cement producers must adhere to a mining charter, processing targets, and social and labor plans, to which importers do not have to comply.

“In addition, local producers are subject to a carbon tax, of which importers are also exempt from [paying]. ”

Perspective

Peregrine Capital executive chairman David Fraser said the cement designation is positive “on the margins but certainly not revolutionary.”

Fraser believes all major construction projects are already using only cement produced in South Africa because contractors knew the designation for the cement was on hold.

He said there will be pressure for imported cement on small projects, especially in rural areas and KwaZulu-Natal where imported cement is available.

Perry pointed out that the designation specifically states that the cement must be produced with locally sourced raw materials.

Hard blow for Cemza

It will be a blow to Cemza, a joint venture between South African company Osho Cement and Germany’s Heidelberg Cement, the world’s second-largest cement plant, which has invested around R500 million in a grinding plant in the economic zone. special (SEZ) of Coega. and started producing cement in 2018 from imported cement clinker, limestone, gypsum and granulated blast furnace slag.

The South African cement industry has submitted a request to the South African Commission on International Trade Administration (Itac) for a sunset review of the anti-dumping tariffs imposed on Pakistani cement in 2015 and another request for a general import tariff on all imported cements and clinker.

Perry said Monday those requests were “still pending.”

PPC CEO Roland van Wijnen said last month that cement imports continue to threaten the sustainability of South Africa’s cement industry, with total imports increasing 14% year-on-year after adjusting for impact strict foreclosure of the previous comparable period.

PPC estimates that imports will account for around 10% of total industry volumes by the end of 2021.

Van Wijnen said this equates to the production of a fully integrated cement plant that employs hundreds of people directly and thousands of people indirectly.

“So we are destroying jobs and are probably paying around $ 70 million a year as one country to another country that is weakening the rand. It just doesn’t make sense, ”he said.

Van Wijnen said the designation of the cement will send a strong signal to the market and “will help a little here and there but not overwhelmingly” and the most important difference will come from putting in place measures to level the playing field between producers. local and imported products. cement.

Source link

]]>
How to sustainably increase agricultural growth by at least 1%? http://minecraftinventions.com/how-to-sustainably-increase-agricultural-growth-by-at-least-1/ Sun, 10 Oct 2021 08:51:26 +0000 http://minecraftinventions.com/how-to-sustainably-increase-agricultural-growth-by-at-least-1/
STAR PHILIPPINE / MICHAEL VARCAS

TThe Philippine economy is expected to grow this year perhaps between 4% and 5%, coming out of a deep contraction last year largely due to economic lockdowns here and the global economic recession, all due to COVID-19 . If agriculture is to make a significant contribution to economic recovery, it should return to its growth performance of several years ago.

Recent data is not encouraging. Agricultural growth has not contributed to the higher growth of the economy over the past decade. When the economy grew faster to become the second best performer in East Asia after China, the growth disparity between GDP (gross domestic product; the monetary measure of the market value of all the final goods and services produced in a given period) and the GVA (gross value added; the measure of the value of goods and services produced in an area, industry or sector) of the growth of the sector had enlarged. Agriculture has been left behind.

It’s no surprise that as the economy recovers this year and maintains higher growth in 2022, the sector will, as in the past, be left behind.

To reverse this trend, the authorities may wish to focus on realizing the comparative advantage of the agriculture and fisheries sector. In the 1960s, the share of agriculture in total exports was 64%. Its contribution to the GVA was 33%. In 2019, these figures fell to 8% and 1.6% respectively.

Considering both exports and imports, the marketability of the sector fell from 38% in the 1960s to just 3.5% in 2019.

If the sector can increase its share in the overall growth of the economy, the sector only needs to increase its exports and imports. It must become more open to the global economy. Economic performance is strongly correlated with export performance, and robust export performance is in turn correlated with more imports.

We had focused our attention on increasing productivity, investing large sums of public money to increase the yield of our rice farmers. The problem is that we have focused too much on the rice sector alone to the detriment of other commodities with great potential for increasing the sector’s exports. Rice, it’s true, had been our export success in the 1970s. But that was only for a few years, and in their heyday it wasn’t that important.

Our apparent mantra of reliving our golden age of rice came at the expense of declining export performance. We were proud of our coconut exports in the 1970s, but we lost that advantage to palm oil exports. It is concerning to note that agricultural exports accounted for only 7% of total merchandise exports in 2018, 9% if we include processed food and beverages.

I tried to estimate the value of discontinued exports of the top 20 agricultural exports to the top 20 market destinations. We may have lost $ 230 million by not taking advantage of the strong growth in imports from our trading partners like the United States of products that we can supply. In fact, 65% of these potential abandoned exports are attributable to our agricultural exports to the United States.

It is high time that, while continuing to increase the productivity of our farmers and fishermen, we put more weight on expanding our exports, realizing the sector’s comparative advantage in world markets.

FOOD SAFETY STANDARDS
There are many constraints to exports, but I want to focus on our inability to meet international food safety standards. The top 20 Philippine exports over the period 2014-2018 were compared to food safety measures applied by the country’s main export markets. Over the five-year period, the average share of the top 20 commodities was almost 3/4 of all these exports. Trading partners in turn, which include East Asian countries, the EU, Australia and the United States, account for 91% of all the country’s export markets for these products.

Food safety measures constitute the bulk of all non-tariff measures on traded goods. Member countries of the World Trade Organization (WTO) retain their right to develop and adopt their own food safety regulations that provide their respective appropriate levels of protection. While different countries have different SPS standards, the Sanitary and Phytosanitary Agreement (SPS) strongly endorses international standards set by international standard-setting bodies.

International benchmarking of agricultural exports is essential to understand the overall export performance of these products. Cases of failure or refusal at the border of the country’s exports testify to a weak capacity to comply with international standards. I have examined the reasons for rejecting our agricultural exports to three markets, Australia, the EU and the United States.

In Australia, export refusals are attributed to those products that do not meet the maximum residue limits (MRLs) for non-microbiological substances; prohibited substances used in the processing of food products; and the incidence of aflatoxins. Two SPS standards are involved: MRLs and banned or regulated substances. For the MRL, the SPS capacity in question relates to the production and post-production processes leading to the final products (dried fish and jute leaves). Capacity building in this area may involve improving production processes and post-harvest / production management, or greater access to testing laboratories for food products for export.

For banned or restricted substances, food exports are required to comply with Australia’s negative list of substances. Most of the relevant incidents identify processed foods to which micronutrients (vitamins) have been added. Although micronutrients are not necessarily harmful to health, the Australian standard does not allow the indicated product-micronutrient combinations. Unless the scientific legitimacy of the banning of the substances in question has been contested by the Philippines, then the SPS issue becomes an issue of awareness. Providing relevant information in advance to food exporters on this Australian standard avoids incidents of failed food export inspections and allows exporters time to adjust the composition of the product.

In the case of our exports to the European Union, 13 different product categories were reported in 83 cases of food safety alerts. The most affected export products are prepared meals and snacks, accounting for almost 23% of all cases. These processed foods have been reported as a health risk primarily due to their use of color additives and other prohibited substances. For soups, broths, sauces and condiments, most of the problems relate to excessive levels of color additives and a carcinogenic chemical food contaminant.

The health risks associated with nuts, nut products and seeds are mainly due to high levels of aflatoxin. The secondary reason is the undeclared use of color additives, not all of which are permitted.

The notifications of risks to fish and fishery products were mainly due to damaged or defective packaging and inadequate temperature control during transport or storage.

In the case of the US market, import refusal fees can be categorized into three general categories: forgery, trademark error, and all others. Seven of the ten refusal to import charges were due to forgery. Adulteration due to biological contaminants (pathogen or toxin) accounted for 14%. Chemical adulteration accounted for 17% of all charges, and two-thirds of these involved the use of color additives deemed to be dangerous.

Adulteration due to all other factors other than biological and chemical is the main reason for all refusals to import, and the charge reads: “the article appears to consist of a dirty, putrid or decomposed substance”. This represents almost 40% of all refusal charges and almost 41% of all forgery charges.

Along with adulteration, there are labeling fees that cover both SPS and technical reasons. Of 1,090 import refusal charges, 235 were due to the above labeling grounds. The most frequent case of labeling is the non-declaration of the use of artificial colors.

Other denial charges outside of adulteration and mislabelling refer only to “no new drug requests”. This applies to products that claim health benefits and other therapeutic benefits.

The weaknesses or constraints of our country’s exports can be reversed by educating and helping producers and exporters to comply with the market standards of trading partners. International benchmarking of products and world market standards would be an important aid to exporters in increasing their income and diversifying markets for the country’s main food and agricultural products.

If we want the sector to increase growth by at least 1%, the authorities may be able to focus their assistance on helping our agricultural and fish exporters meet international food safety standards.

Romeo L. Bernardo was Undersecretary of Finance under the Cory Aquino and Fidel Ramos administrations.

romeo.lopez.bernardo@ gmail.com

Source link

]]>
Advocates to protect the most vulnerable as annual bills could reach £ 2,000 | Politics | New http://minecraftinventions.com/advocates-to-protect-the-most-vulnerable-as-annual-bills-could-reach-2000-politics-new/ Sat, 09 Oct 2021 09:51:00 +0000 http://minecraftinventions.com/advocates-to-protect-the-most-vulnerable-as-annual-bills-could-reach-2000-politics-new/

Yesterday, charities called for more help to keep the elderly and vulnerable warm this winter. Critical energy industries also had crisis talks with Secretary of Business Kwasi Kwarteng. Experts say bills could rise by £ 800 to £ 2,000 a year. The energy price cap rose to £ 1,277 a year on October 1 and regulator Ofgem warned of another sharp rise in April. Domestic customers who have lost fixed-term contracts due to the bankruptcy of their suppliers are expected to suffer particularly.

Ofgem CEO Jonathan Brearley said below: “The wholesale market has had extremely rapid ups and downs, so we can’t fully predict what that will be. But looking at the costs of the system, we expect a significant increase in April. “

UK gas prices hit an all-time high earlier this week after rising dramatically since the start of the year. Low levels of stored gas have left the UK more exposed to price volatility than some other countries. Support is available for OAPs and vulnerable people, including up to £ 300 in winter fuel payments and £ 140 off electricity bills as part of the warm house rebate.

But activists have asked for more money, as official figures show around 13% of English households – 3.18 million – were fuel poor in 2019. Charities say more than four million payers of bills are struggling and that number could reach 1.5 million if the price cap increases. from £ 400 to £ 600 per year.

Adam Scorer of National Energy Action said: “The impact on health, finances and quality of life could be catastrophic. We want Ofgem to ensure that vulnerable consumers are not put at risk if their supplier fails, and that businesses provide deeper protection for low-income consumers. The central government must also provide more direct financial support, such as increasing the rebate for warm houses or extending winter fuel payments.

Ruth London, of Fuel Poverty Action, said: “Even before these price increases and the pandemic, around 10,000 people have died each winter in the UK because they could not afford to heat their homes. Now, the rising cost of fuel, low wages, and reduced universal credit will cause far more death and misery for retirees, children and everyone in between. “

Who? Adam French, a consumer rights expert, said customers who always get cheaper deals should stay with them during the winter, when bills are higher. But he said it might be worth considering a more expensive flat rate ahead of the April changes to guard against future increases.

Consumer expert Scott Dixon called Ofgem a “toothless watchdog,” saying: “New entrants to the energy market have never been properly screened and business models have not been subjected to scrutiny. meticulous examination “.

Eco-entrepreneur DaleVince said many small vendors now collapsed had “bet on future prices and lost.” He said: “They shouldn’t have been allowed to enter the market and treat it like a casino. It’s on Ofgem. But as the price cap hikes, that change will come after the damage is done. It shouldn’t have taken this disaster for us to have a common sense regulation. “

Alex Belsham-Harris of Citizens Advice said the April energy price cap hike would be a “hammer blow” to many. He added: “The government needs to urgently plan to support people with even higher energy bills next year. “

Industries such as chemicals, paper and glass warned of a production slowdown when the energy-intensive user group met with Kwarteng. Group Chairman Richard Leese said: “We will work with the government to avoid threats, both to the production of essential domestic and industrial products and to a wide range of supply chains critical to our economy and to the rise in power.”

Comment from Caroline Abrahams

High energy prices, cold homes and poor health often make winter a difficult time for many seniors. More than ever, this year poses a particular challenge with the rise in household bills.

It is essential that older people do not ration their energy consumption and put their health at risk. The cold can make conditions like arthritis, MS, and heart disease worse and make breathing problems worse.

There is support for the elderly, such as the Warm

Home shed and winter fuel payments, but these still only help at a fraction of the cost.

The government has announced £ 500million to be distributed to councils through the Household Support Fund. It is vital that these grants help those who struggle to pay and those most affected by the cold. With the end of holidays and the increase in universal credit, many families will seek additional help,

Longer term, we need to see a lot more investment to make our homes warmer and more energy efficient: the best way to avoid future fuel crises.

If you’re struggling to meet your energy bills or owe your supplier money, ask them for more time to pay. You can also call the Age UK counseling line free of charge on 0800 169 6565 or visit ageuk.org.uk/money for free information.

Caroline Abrahams is Director of Charity at Age UK

Source link

]]>
The new order of commerce http://minecraftinventions.com/the-new-order-of-commerce/ Thu, 07 Oct 2021 15:04:18 +0000 http://minecraftinventions.com/the-new-order-of-commerce/

THIS DIARY was founded in 1843 to campaign for the repeal of British protectionist corn laws (which was carried out three years later). The argument for free trade was that tariffs enrich the rich to the detriment of the poor, and that discrimination against foreigners leads to mock retaliation, making it worse for everyone. Our introductory issue lamented that governments, classes and individuals “have been too inclined to conclude that their advantage could be secured by a policy detrimental to others.”

For more than 200 years, economists have widely accepted such arguments, although some politicians have shown an atavistic penchant for protection. But after 1945, most of the world’s leaders converged in favor of freer trade. Carried away by the idea that more open markets promote innovation, competition and growth, they pursued them, first in the General Agreement on Tariffs and Trade (GATT), founded in 1948, then after GATT was transformed into the World Trade Organization (WTO) in 1995.

The WTO was an extraordinary achievement. For the first time – and almost only for international institutions – the system included binding dispute resolution, so that victims of rule violations could obtain redress. Large countries could no longer carry their weight and assume that any harm done to others was inconsequential. Such was the faith placed in the new institution that, when China belatedly joined it in 2001, many Westerners hoped it would lead to economic and political convergence with wealthy democracies.

Exceptions were allowed in the rules-based system, but they were carefully controlled. One for national security was used sparingly, as everyone saw that it could all too easily be abused. Environmental protection was allowed to justify some trade restrictions, but no more than was absolutely necessary. Union lobbyists complaining of unfair competition were denounced as protectionist by those who viewed cost differentials as legitimate forms of comparative advantage. Indeed, economic integration was seen as a way to help achieve these other goals. Not only would economies benefit from being linked together, faster growth would mean higher environmental and labor standards.

All of this has resulted in generally lower rates. Between 1990 and 2017, the trade-weighted average world tariff applied according to WTO the rules are down 4.2 percentage points. The decline was greatest in the poorest countries: over the same period, China’s tariffs fell by 28 points, India’s by 51 points, and Brazil’s by 10 points to 300 in 2019. These reduced applied trade-weighted tariffs by an additional 2.3 percentage points.

This system has supported an explosion in world trade as a percentage of gross output, from around 30% in the early 1970s to 60% in the early 2010s. During the same period, complex global supply chains are emerging. increased from around 37% to 50% of total trade. The meteoric collapse in transport costs boosted international trade. But also stability. After China’s accession to the WTO, a study by Kyle Handley of the University of California at San Diego and Nuno Limão of the University of Maryland found that the reduction in uncertainty was responsible for about a third of the growth in Chinese exports between 2000 and 2005.

As these early activists predicted, freer trade improved living standards. A 2019 World Bank report concluded that a 1% increase in participation in global value chains is linked to an increase in per capita income of more than 1% in the long run. A review of the literature by Douglas Irwin of Dartmouth College found that poor countries that liberalized trade experienced higher growth by 1 to 1.5 percentage points, reaching 10 to 20 percent after a decade. The United States International Trade Commission, an independent government agency, estimates that the United States’ bilateral and regional trade agreements increased real revenues by 0.6%.

Stretch and protect

Some movements towards further liberalization have continued. In November 2020, 15 Asia-Pacific countries signed the Regional Comprehensive Economic Partnership, the world’s largest trading bloc. Trade in the African Continental Free Trade Area, an agreement ratified by 38 countries, began on January 1 of this year. Post-Brexit Britain is trying to cover 80% of its trade with preferential deals, albeit after erecting significant new barriers with its closest neighbor, the European Union. And America and the EU discuss common international standards for the digital economy.

Yet the appetite for freer trade is not what it used to be. There has not been a general round of liberalization since the mid-1990s. Other transactions have also slowed down. This is in part due to a widespread perception that the free trade ideology has failed to deliver on its promises. In the rich world, politicians have seen furious backlashes against trade deals and complaints that liberalization has created losers as well as winners, leaving many workers behind. President Donald Trump embodied a rejection of the rules-based trading system. While the Biden administration is no longer making random tariff threats, few believe America is unable to elect a protectionist like Mr. Trump again.

Meanwhile the WTO faces traffic jams. Many believe that China has taken most of the promised benefits without offering enough in return. It has become impossible to update the rules in a group of 164 members who all have to agree. And the system that was supposed to keep trade disputes from spiraling out of control no longer works. The covid-19 pandemic has revealed how quickly panicked nationalism can mess up global supply chains. More than two-thirds of countries applying medical device export controls in 2020 still had restrictions in place as of August 2021.

Despite all the support for post-war free trade, political support for it appears to be on shaky foundations. This could jeopardize growth. Uncertainty associated with Mr. Trump’s trade wars may have depressed global growth by 0.75 percentage points in 2019, according to a study. WTOeconomists estimate that between 2000 and 2016, the cost of trade associated with the policy fell from the equivalent of a 9% duty in 2000 to a 6% duty in 2016, but this includes a slight increase since 2012. A simulation of the IMF found that the equivalent of a 10% tariff would reduce world production by around 1% after three years, and by 1.5% if one adds productivity losses due to the protection of inefficient firms.

As freer trade loses favor, other priorities have multiplied. There was so much emphasis on liberalization and what it would bring that over time “trade has become a matter of negotiation – trade for the sake of trade,” says Ngozi Okonjo-Iweala, director general of the WTO. Now, she notes, the non-trade objectives that had lost the cause of further liberalization are coming back. This special report explores how trade policy is used to achieve non-trade goals, including greater resilience, human rights and a healthier planet. And he wonders if the open trading system can survive this change. The starting point is to examine the tensions created by America’s diversion from the rules-based multilateral trading system it did so much to create.

Full content of this special report
World trade: the new trade order*
Commercial law: a crumbling system
Precautionism: In search of resilience
Labor rights: the need to protect
The environment: making commerce greener
The new rules: a changed world

This article appeared in the Special Feature section of the print edition under the title “The New Order of Commerce”

Source link

]]>