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									                                                                                                                                                                                                                                ARAB TIMES, WEDNESDAY, MAY 11, 2011
    BUSINESS                                                                                                                                                                                                                                                                       39


                                               China airlines seek EU ETS exemptions                                                                                            Germany favours EU, Japan trade deal talks
    China’s aviation industry body has          discussions, covering a wide range          nationality.                                         Germany favours the opening of             Japan,” she added.                            summit on May 27 and 28.
    told the European Union it opposes          of issues of mutual interest. It was           Aviation is responsible for about                 talks on a free trade deal between            “Of course there are bound to be              Prompted by Britain, leaders of
    the inclusion of Chinese airlines in the    noted that Chinese carriers operate         3 percent of the EU’s greenhouse                     Japan and the European Union,              some difficult issues to be negotiat-         the 27-nation EU bloc in March
    bloc’s carbon emissions market from         efficient aircraft and therefore are in     gas emissions, and its levels are                    two of the world’s economic giants,        ed, for example in the automotive             called for the speedy launch of nego-
    2012, an EU source said on Tuesday.         a better competitive situation than         growing at a faster rate than those                  Chancellor Angela Merkel said              industry”, she acknowledged.                  tiations for a free trade agreement to
       “There were useful discussions           companies with older fleets. We             of any other sector.                                 here on Tuesday.                              She said she expected to dis-              aid recovery in disaster-struck Japan
    with     China’s     Air    Transport       agreed to continue our dialogue,”              The airlines will join about 11,000                  “Germany is in favour of opening        cuss the matter further with                  — but on the proviso that Tokyo
    Association on Friday, but they indi-       the source said.                            factories and power plants whose                     such talks with a view to reaching a       Japanes Prime Minister Naoto Kan              move to lift restrictions to trade.
    cated they opposed being included              About 4,000 aircraft operators           emissions are currently capped                       free trade deal agreement” with            on the sidelines of the G8 summit                Trade ties have consistently
    in the EU Emissions Trading                 will be included in the EU’s ETS            under the ETS, a system that                         Japan, she told a press conference.        later this month in France.                   shown a strong surplus in favour of
    Scheme (ETS),” the source said,             from Jan. 1 next year. Most flights         forces polluters to buy permits for                     The EU has already concluded               EU officials hope to be able to            Japan — the EU currently being
    speaking on condition of anonymity.         to and from EU airports will be cov-        each tonne of carbon dioxide they                    such a deal with South Korea “and          announce the opening of trade                 Japan’s third-biggest trade partner
       “We had constructive and useful          ered, regardless of the operator’s          emit above a certain cap. (RTRS)                     we should do the same with                 talks with Japan at an EU-Japan               while Japan is Europe’s fifth. (AFP)


                                                                                     Pakistan to add pressure with bumper new-crop supply

Cheaper Pakistani wheat to dent Aussie export prospects
SINGAPORE, May 10, (RTRS):                     over food inflation.                          commodity analyst at Merricks Capital, a        Pakistan in recent weeks, which accord-       Asia, the Gulf region and East Africa,”         cial crop forecast by 5 million tonnes to
Australian wheat exports are set to face          “There is around $80 spread between        Melbourne-based fund which invests in           ing to private trade estimates total around   said Khawer Jamal, a director of Karachi-       85 million to 90 million tonnes of grains
stiffer competition as Pakistan, which         the two origins, which makes it attractive    agriculture.                                    200,000 to 300,000 tonnes.                    based grain exporter Seatrade Group.            this year, which would represent an
resumed exports after three years, pours       for millers to take Pakistani wheat, even        “It feels like things have gone quiet in        Pakistan is making inroads into               “Two million tonnes of wheat exports         increase of as much as 50 percent after
grain from its new crop into the market        though Australian is better quality,” said    the last few weeks because the dollar has       Australia’s traditional strongholds of        is easily achievable from the new-crop as       the drought cut 2010 production to 60.9
and offers competitive prices to millers in    one Singapore-based grains trader with        appreciated.”                                   Indonesia and Malaysia, while striking        we have another couple of million tonnes        million tonnes.
Asia, the Middle East and Africa.              an international trading company.                The Australian dollar has had a              deals with millers in Bangladesh, the         lying in reserves.”                                Analysts expect the Russian govern-
   Overseas shipments by Australia — the          “For July and August shipment there is     remarkable run of appreciation not only         United Arab Emirates and Tanzania at             Pakistan is seen booking cargoes for         ment to announce the fate of the ban
grain’s fourth largest exporter — have         good scope for Pakistani wheat after that     against the ailing US dollar but against        prices between $300 to $310 a tonne, free     up to August shipment after which the           close to the end of May.
already suffered from the country’s            the Black Sea region will become active.”     almost all other currencies. It tore to a 29-   on board.                                     market’s attention is expected to turn             Ukraine, a leading Black Sea grain
strengthening currency, while a return of         Australian wheat sales have slowed in      year high of $1.1012 earlier last week,            This compares to Australian prime          towards the Black Sea region, which is          supplier, has raised its 2011 grain harvest
Black Sea cargoes, after last year’s           the past few weeks as a strengthening         before a large sell-off in commodities on       wheat (APW) being offered around $380         widely expected to boost exports after a        forecast to up to 45 million tonnes from
drought, promises to worsen the situation.     domestic currency has lifted prices for       Thursday set it back a little to $1.0725.       a tonne, with 11-12 percent protein levels,   devastating drought last year.                  42-43 million and expects a jump in
   Black Sea wheat will hit markets from       overseas buyers, while Pakistan has              The currency has gained 10 cents in          similar to those found in Pakistani wheat.       Weather forecasters do not expect            exports. It sees 2011/12 exports at 19-20
September, raising the stakes in the trade     dumped some one-and-a-half million            less than two months.                              Pakistan is expected to produce at least   another severe drought in Russia this year      million tonnes, including 8-9 million
of lower grade feed wheat, heaps of            tonnes into the global market since it           Analysts say Pakistan could further dent     25 million tonnes this year, leaving it       and analysts say conditions could allow         tonnes of wheat.
which are lying across Australia.              resumed overseas sales.                       Australia’s wheat exports with expecta-         with at least a couple of million tonnes to   an early resumption of Russian grain               Still, dry weather in Europe and the
   The stream of supplies will also weigh         “Export enquiries have gone down,          tions of a near-record crop from this year’s    export with consumption estimated at          exports, halted last August by the worst        United States in recent weeks is casting
on the benchmark Chicago wheat prices          everyone in saying that Australian wheat      harvest which is now underway.                  around 22 million.                            drought in a century.                           doubt over supplies of global wheat,
— already down nearly 9 percent this           is too expensive because of the high             Private exporters in Pakistan have              “The crop looks bumper and we are             Russia, typically the world’s third          mainly high quality grain, for later this
year, potentially easing global concerns       Aussie dollar,” said Adam Davis, a senior     made large sales of new-crop wheat from         getting a lot of interest from buyers in      biggest wheat exporter, has raised its offi-    year and into 2012.



               Exports soar 35.1 pct in April
                                                                                             Australia govt sticks to $3.8 bln
    China trade surplus
    surges to $11.4 bln                                                                      budget surplus plan in two years
    BEIJING, May 10, (RTRS): China             should push the closely managed
    stormed back to post a hefty trade         yuan up at a faster pace against the                                                                          Govt to increase migration
    surplus in April as exports hit a          dollar.
    record while imports eased more               “This number will likely add to
    than expected, weighed down by             the pressure from Washington for              CANBERRA, Australia, May 10, (AP): Australia is sticking to                       same fiscal year.
                                                                                                                                                                                  The improved outlook comes despite natural disasters at home as well as in
    sustained monetary tightening and          Beijing to allow faster currency              its schedule of returning to a budget surplus in two years                        Japan — Australia’s most important trading partner after China — and in New
    high commodity prices.                     appreciation, but more importantly            despite devastating floods at home and recent natural disasters                   Zealand, a near neighbor and one Australia’s few free trade partners.
       The surplus of $11.4 billion,           should persuade Chinese policy-                                                                                                    An earthquake devastated New Zealand’s second largest city, Christchurch, and
    nearly four times greater than             makers that a stronger yuan can be            in Japan and New Zealand that are slowing economic growth.
    expected, comes as China holds             tolerated by the economy,” said                 Deputy Prime Minister Wayne Swan, who is also treasurer and architect of killed at least 169 people on Feb. 22. Japan’s northeast coast was laid waste by an
    high-level economic and strategic          Brian Jackson, an economist with
                                                                                                                                                                                                                                          25,000 people.
                                                                                             his government’s fourth annual budget, outlined to Parliament on Tuesday an earthquake and tsunami on March 11, killing more thanof the Australian east coast
                                                                                                                                                                                  The Treasury predicts that record floods across much
    talks in Washington and could fuel         the Royal Bank of Canada in Hong              economic blueprint for the fiscal year starting July 1 that would achieve a 3.5 since November combined with a major cyclone that ruined crops, inundated coal
    US criticism that Beijing limits the       Kong.                                         billion Australian dollar ($3.8 billion) surplus in the 2012-13 year on the crest mines and destroyed vital infrastructure such as rails and bridges would cut eco-
    yuan’s appreciation to support its            For its part, China turned aside a         of a mining boom.                                                                 nomic growth by half a percentage point in the current fiscal year and cost AU$9
    exports industry.                          chance to openly criticise the loose            A year ago, the Treasury had forecast a smaller surplus of AU$1 billion for the billion in lost exports.
       The trade account swung from a          US monetary and fiscal policies it
                                               has argued in the past were weak-                                                                                                                                              The flooding killed 35 people, dam-
    small, rare trade deficit in the first                                                                                                                                                                                 aged or destroyed more than 35,000
    quarter, pushed by a stronger-than-        ening the dollar.
                                                  China holds about $3 trillion in                                                                                                                                         houses and inundated downtown
    anticipated 29.9 percent rise in                                                                                                                                                                                       Brisbane, Australia’s second-largest
    exports over a year earlier to a           foreign exchange reserves, of
                                               which some two-thirds are estimat-                                                                                                                                          city.
    record $155.7 billion.                                                                                                                                                                                                    The government has already spent
       Imports climbed 21.8 percent,           ed to be held in dollar-based assets,
                                               so Beijing has a significant stake in                                                                                                                                       AU$5.4 billion on reconstruction,
    well short of estimates and analysts                                                                                                                                                                                   given AU$900 million in emergency
    were at loggerheads whether this           the health of the currency.
                                                  Higher import costs, along with                                                                                                                                          relief to victims and introduced a new
    should be read as a sign of surpris-                                                                                                                                                                                   flood tax to raise AU$1.8 billion to
    ing weakness in the world’s fastest-       the government’s efforts to rebal-
                                               ance the economy in favour of                                                                                                                                               help meet the damage bill.
    growing economy or simply                                                                                                                                                                                                 The Japanese and New Zealand dis-
    deferred purchases because of soar-        domestic consumption to reduce
                                               reliance on exports, could lead to a                                                                                                                                        asters would drag economic growth
    ing commodity bills.                                                                                                                                                                                                   down a further quarter percentage point
       “Exports are much stronger,             smaller trade surplus for 2011 from
                                               last year’s $183 billion.                                                                                                                                                   to 2.25 percent for the year by reducing
    that’s the basic thing. Global                                                                                                                                                                                         demand for Australian raw materials,
    demand is still pretty strong, a bit          Chinese officials hope a smaller
                                               trade surplus with the rest of the                                                                                                                                          the Treasury documents predict.
    stronger than many people feared,”                                                                                                                                                                                        “These events have shaken our econ-
    said Tao Wang, economist with              world could ease criticism from
                                               key trade partners over the yuan.                                                                                                                                           omy, but they have not knocked it off
    UBS in Beijing.                                                                                                                                                                                                        course,” Swan told Parliament.
       “On the import side, we think              Still, there are plenty of signs that
                                               the government is tolerating faster                                                                                                                                            Australia’s AU$1.3 trillion economy
    that commodity exports had been                                                                                                                                                                                        — underpinned by a resource boom
    very strongly up until February and        yuan appreciation this year as it
                                               seeks to deal with the inflationary                                                                                                                                         driven by Chinese demand for iron ore,
    there has been quite a bit of inven-                                                                                                                                                                                   coal and natural gas — will speed up to
    tory build-up. So right now we             impact of rising commodity prices.
                                                  China loosened the yuan from a                                                                                                                                           4 percent growth in 2011-12, boosted
    think it’s going through some
                                               nearly two-year peg to the dollar in                                                                                                                                        by disaster reconstruction spending in
    adjustment.”
                                               June, and this year the People’s Bank                                                                                                                                       the northeast state of Queensland.
       But Xu Biao, an economist with
                                               of China has guided the yuan to                                                                                                                                                The Australian Chamber of
    China Merchants Bank in
    Shenzhen, said the lower-than-             record highs. It has now appreciated                                                                                                                                        Commerce and Industry, a peak busi-
    expected imports might contain a           about 5 percent since June and 1.5                                                                                                                                          ness group, said while the government
    much more serious warning.                 percent since the start of this year.                                                                                                                                       had found more than AU$5 billion in
       “Concerns about a slowdown                 China already is the world’s                                                                                                                                             savings in the next fiscal year, it needed
    have certainly intensified, and the        biggest exporter and so has little                                                                                                                                          to cut far deeper into public spending.
    risks of a worst-case scenario for         scope to increase its exports fur-            US Treasury Secretary Timothy Geithner speaks as Secretary of State Hillary Clinton (left), looks on during a dinner dur-        “It’s still relying heavily on good
    the Chinese economy, namely a rel-         ther, while its demand for imports            ing the 2011 US-China Strategic and Economic Dialogue May 9, at the State Department in Washington, DC. At left is US         fortune from north Asia to bring us
    atively low growth rate and a high         is increasing in leaps and bounds                               Defense Secretary Robert Gates and States Councilor Dia Bingguo (third left). (AFP)                         back into surplus,” the chamber’s chief
    inflation, are on the rise,” he said.      alongside it sturbo-charged growth,                                                                                                                                         executive Peter Anderson told The
                                                                                                                                                                                                                           Associated Press.
       The median forecast of economists       which last year topped 10 percent.
                                                            Slowdown
                                                                                                                               China seeks balanced trade with US                                                                                           Boost
    polled by Reuters last week was for
    exports to rise 29.4 percent and              Investors have long feared an                                                                                                                                                               International aid agency Oxfam
    imports to grow 28 percent, resulting
    in a trade surplus of $3 billion.
       On a seasonally adjusted basis,
    exports rose 35.1 percent in April
                                               abrupt slowdown in the world’s
                                               second-largest economy, which
                                               could stifle a pivotal source of
                                               demand as a global buyer of every-
                                                                                             ‘Lift hi-tech exports control’                                                                                                                applauded the government’s AU$500
                                                                                                                                                                                                                                           million boost in foreign aid spending to
                                                                                                                                                                                                                                           AU$4.84 billion. The government said
                                                                                                                                                                                                                                           its foreign aid would rise to 0.35 per-
    from a year earlier and rose 12.3          thing from raw materials to con-              WASHINGTON, May 10, (AP): China                 scored his support for freedom of             consumer interest rates to rise. Both           cent of gross national income next fis-
    percent from the previous month.           sumer goods as many parts of the              is using high-level meetings to urge the        expression and political participation, a     steps could help boost domestic                 cal year and to 0.5 percent by 2015-16.
    Imports gained 27.4 percent year-          world still struggle to emerge from           United States to allow more technology          White House statement said.                   demand and help lower America’s                    Australia will also increase its
    on-year and 7.4 percent month-on-          the global financial crisis.                  exports into the booming Chinese                   This year’s dialogue follows a             trade deficit, which hit an all-time high       refugee intake by 4,000 places over the
    month, the customs administration             The latest data showed that                economy as a way of balancing trade.            January state visit by Chinese President      with China last year.                           next four years to 14,750 places a year.
    said.                                      China, the world’s second-largest                The United States, meanwhile, has            Hu Jintao that helped eased tensions             A Chinese official, however, blamed             Treasury forecasts the current fiscal
       China’s trade numbers also reg-         oil buyer, imported 1.7 percent               criticized the communist-led nation’s           over the US arms sales to self-governing      US policies for the ballooning trade            year will end with a deficit of AU$49.4
    istered an impact from Japan’s             more oil than a year earlier, bring-          latest crackdown on democracy advo-             Taiwan, which Beijing regards as part of      gap. Commerce Minister Chen Deming              billion. The deficit will reduce to
    earthquake and subsequent nuclear          ing in 5.24 million barrels per day           cates, arguing that long-term stability         Chinese territory. The US and China           said at a news conference that China’s          AU$22.6 billion in 2011-12 when net
    crisis. Imports from Japan were            in April, the third highest on record         depends on respecting human rights.             also have been at odds over China’s           currency appreciation was being car-            debt will peak at AU$106.6 billion, or
    $16 billion in April, down 14.9 per-       on a daily basis.                                Both sides issued familiar grievances        intervention in currency markets, which       ried out in a “very healthy manner.” He         7.2 percent of GDP.
    cent from March, as production                Imports of copper were much                at the US-China Strategic and                   the US says has kept the value of the         said the United States needed to change            The resource boom is expected to con-
    and shipments were interrupted.            weaker, down nearly 14 percent                Economic Dialogue, which began in               yuan low against the dollar, giving an        its own policies on high-tech sales and         tinue to gather pace, with AU$76 billion
       The data showed China’s trade           from March in volume terms. But               Washington on Monday, but they took                                                           investment as a way to spur American            earmarked for new mining investment in
                                                                                                                                             unfair advantage to Chinese exporters.
    surplus with the United States             rather than heralding a sudden drop-          pains to stress a generally positive                                                          manufacturing.                                  the next fiscal year — eight times more
    swelled 16 percent to its widest           off in Chinese economic activity,                                                                             Policies                                                                      than the annual investment figure before
                                                                                             track in relations between the two eco-                                                          He took aim at the US screening of
    since November.                            analysts said the shortfall indicated         nomic superpowers.                                 Treasury        Secretary     Timothy      Chinese foreign investment proposals,           the boom began in 2000.
       The data provides fresh ammuni-         that firms were shunning high-                   State Councilor Dai Bingguo said             Geithner on Monday softened the long-         contending it was neither fair nor trans-          Australia avoided recession during
    tion to those US lawmakers who             priced overseas supplies in favour            common interests between the world’s            standing US criticism of China’s eco-         parent. Most recently, the Committee            the global economic crisis thanks to
    have linked the trade imbalance to         of local producers and stockpiles.            two largest economies now make them             nomic policies, possibly in a belief that     on Foreign Investment in the United             billions of dollars in government stim-
    China’s currency policy, saying a             The government sees little sign of         “inseparable” and destined to grow              the outside pressure was proving coun-        States rejected a takeover by private           ulus spending that turned a projected
    weak yuan gives Chinese manufac-           a hard-landing in the economy. But            more interdependent.                            terproductive.                                Chinese technology giant Huawei of a            record surplus in the 2008-09 fiscal
    turers an unfair advantage in global       it is likely to raise banks’ required            The annual two-day round of talks               Geithner praised China’s efforts,          small US computer company, 3Leaf,               year into a record deficit.
    markets and costs American jobs.           reserves and interest rates while let-        brings together leaders on economics,           which include a decision last June to         on national security grounds.                      Swan said the government had to con-
       China’s overall trade surplus nar-      ting the yuan rise at a faster clip to        foreign policy and security. The meet-          resume allowing the yuan to rise in value        “We hope the United States can treat         tain spending and deliver an early sur-
    rowed last year, but that provided         combat inflation, analysts say.               ings, involving scores of officials, wrap       against the dollar after freezing the cur-    Chinese investment, including by state-         plus as the resource sector continued to
    little comfort for officials in               Inflation hit a 32-month high in           up Tuesday with news conferences.               rency’s value for two years during the        owned enterprises, in a fair manner,”           deliver Australia record trade surpluses,
    Washington because the surplus             March of 5.4 percent, keeping                    President Barack Obama met Dai               height of the financial crisis. The yuan      he said.                                        drive up wages and fuel inflation.
    with the United States grew 26 per-        investors expectant of more policy            and Chinese delegation leader Vice              has risen by about 5 percent against the         US companies have their own long                Australia’s jobless rate is expected to
    cent to more than $180 billion.            tightening. Figures on Wednesday              Premier Wang Qishan after Monday’s              dollar since last summer. American man-       list of complaints: limited access to           fall from 4.9 percent in March to 4.5
       On the first of two days of talks       are expected to show that inflation           deliberations. He encouraged China to           ufacturers contend the yuan is still          Chinese markets, theft of intellectual          percent in 2012-13.
    on Monday, the United States               eased in April to 5.2 percent as              implement policies to support “bal-             undervalued by as much as 40 percent.         property, widespread use in China of               The government plans to halve pro-
    pressed China on a range of famil-         food prices, the main pressure                anced global growth as well as a more              The US Treasury chief still urged          counterfeit software and problems in            cessing times to 10 days for temporary
    iar themes, including that Beijing         behind inflation, are now falling.            balanced bilateral economic relation-           China to allow its currency to appreci-       seeking redress through China’s legal           visa applications by foreign specialist
                                                                                             ship.” On human rights, he under-               ate at a faster rate and to allow Chinese     system.                                         workers needed in mining projects.

								
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