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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