Brazilian Azevêdo to be next WTO DG

GENEVA, May 8: The General Council of the World Trade Organisation (WTO) has recommended Roberto Carvalho de Azevêdo of Brazil to be the next Director-General of the Geneva-based institution.

The General Council, also known as Troika, announced this May 8, 2013 at an informal meeting of the Heads of Delegation from Member Countries.

“…our assessment of the preferences provided to us by you during this third round of consultations is that the candidate from Brazil, Mr. Roberto Carvalho de Azevêdo is the candidate most likely of the two to attract consensus,” WTO General Council Chair Shahid Bashir said in a statement.

The WTO on April 26, 2013 announced that Mexico’s Herminio Blanco and Brazilian Roberto Carvalho de Azevêdo made the final cut.

Mr Carvalho de Azevêdo will now have to secure a consensus approval from WTO members at a meeting scheduled for May 14, 2013 before succeeding Pascal Lamy as Director General.

The General Council Chair explained that Mr. Azevêdo carried the largest support by Members in the final round and has consistently done so in each round; and, he enjoyed support from Members from all levels of development and from all geographic regions and has done so throughout the process.

If approved by WTO members, Mr. Azevêdo’s four-year term of office as DG will begin September 1, 2013.

India welcomes selection of Brazil’s Azevedo as next WTO chief

NEW DELHI, MAY 8: India has welcomed the selection of Brazilian candidate Roberto Azevedo as the new Director General of the World Trade Organisation.

Azevedo was one of the two candidates that the country had backed of the nine contenders fighting for the top post.

While Azevedo is expected to act neutrally and be a catalyst in pushing ahead the stalled Doha Round of talks, his background and experience as representative of a developing country in a global trade arena dominated by developed countries is expected to make him more sympathetic to the needs of poorer members.

“Azevedo has been selected as the next WTO chief as members think he is the best candidate to steer the troubled round. However, India and other developing countries could all draw cheer from the fact that he is already aware of the economic and social conditions that place such countries at a disadvantage compared to more prosperous countries,” said an official.

India had also backed Indonesian Trade Minister Mari Elka Pangetsu for the post, but she had dropped out in the penultimate round. Azevedo and Mexico’s Heremino Blanco, strongly backed by the US, were the final two candidates in the race.

“He is assuming office at a crucial juncture as there is considerable expectations from the December Bali Ministerial Conference,” Commerce and Industry Minister Anand Sharma said in a statement on Wednesday.

India-China face off in Ladakh ends; troops withdraw

NEW DELHI, May 6: The 20-day-old standoff between the Chinese and Indian army in Daulat Beg Oldi (DBO) sector of Ladakh ended on Sunday when troops from both sides decided to withdraw to their respective pre-incursion positions.

The 20-day-old standoff between the Chinese and Indian army in Daulat Beg Oldi (DBO) sector of Ladakh ended on Sunday when troops from both sides decided to withdraw to their respective pre-incursion positions.

Intensive diplomatic contacts led by Foreign Secretary Mathai coordinating with military authorities and Ambassador JaiShankar in Beijing which led to flag meeting in which face to face situation was resolved, according to sources.

Sources said the breakthrough came after hectic discussions and four flag meetings between the commanders of the two armies. It was decided that troops from both sides will pull back simultaneously following which the process was completed at 7.30pm on Sunday.

Indian and Chinese commanders at the local level shook hands before withdrawing, sources said.

Fifty troops from China’s People’s Liberation Army (PLA) had crossed 19 kilometres inside the Indian territory at DBO on the actual line of control (LAC) and set up a tented post on the intervening night of April 15 and 16. Subsequently, they put up four more tents and also deployed Molosser dogs.

The face off in Ladakh had cast a shadow over the visit of external affairs minister Salman Khurshid to China on May 9 to prepare ground for new Chinese prime minister Li Keqiang’s visit to India from May 20.

The Chinese provocation came nine months after the PLA forced the Jammu & Kashmir government to suspend work on the prestigious irrigation scheme at Kuyul-Thuksey area of Nyoma block in Leh district of Ladakh division. It was the third time since 2010 that a major development project was suspended or abandoned under Chinese pressure in Leh district of Ladakh division.

Indonesia, India trade to reach $ 25 b by 2015: Ambassador Rizali

By Deepak Arora

NEW DELHI: The new Indonesian Ambassador, Mr Rizali W. Indrakesuma, has been given the mandate by his President, Dr Susilo Bambang Yudhoyono, to enhance strategic and trade and economic relations with India. Keeping this in mind, Mr Rizali Indrakesuma is confident that the bilateral trade between Indonesia and India would cross US $ 25 billion by 2015 from US $ 19 billion in 2012.

Ambassador Indrakesuma, who presented his credentials to the President, Mr Pranab Mukherjee, at Rashtrapati Bhawan on January 22 this year, said “I am lucky that economic relations with India are going very well and are fast paced. Our President and Indian Prime Minister signed the strategic partnership document in 2005.”

The strategic partnership encompasses all relations – be it economic, political, cultural relations etc and we have to make sure that we move forward significantly in all these areas, he added.

The Ambassador informed that the trade between the two countries was US $ 4.5 billion in 2005 and reached US $ 19 billion in 2012. “This is a significant boost in seven years.”

Mr Indrakesuma expressed confidence that the bilateral trade between two countries could even cross US $ 45 billion by 2015. However, he gave a word of caution in this regard keeping in mind the economic crisis of 2008 and its repercussion that were still being felt all over the world.

To achieve my mission, he said, “I would knock on all the doors of the investors here and back home. I would make both sides realize that India and Indonesia are important economic partners and we need to raise the level of investments.”

Some of the Indian companies that have invested in Indonesia were TVS. Bajaj Motors, Reliance, Bajaj Power (coal mines) and GMR (energy). Some of the Indonesian companies that have invested in India were Mayora, Samudra and Guruda Foods.

Ambassador Indrakesuma asked Indian businessmen to form joint ventures in Indonesia in manufacturing, mining, coal and other sectors.

The Ambassador gave his commitment to contribute in enhancing friendship, bilateral relations and cooperation between India and Indonesia. He said India was now rising and one of the giants in the world. India with a population of 1.2 billion people is a huge market for Indonesia. However, he added in the same breath that Indonesia with 240 million people was also not a small market for the Indians.

Besides emphasis on economic relations, Ambassador Indrakesuma said he would also expand cooperation with India in supporting fields such as social, cultural, education and people-to-people contacts. He said several young Indonesians were studying in India.

The Ambassador agreed that direct air connectivity was an impediment in exploiting the full economic potential between the two countries. He vowed to work in this direction and hoped that a direct air link would commence soon. This would help in increasing the tourism and also give easy access to businessmen of the two countries.

Ready to work together with India: China on border incursion

BEIJING, April 28: China on Sunday took note of Prime Minister Manmohan Singh's remarks over PLA's incursion into the Depsang Valley and said that it is willing to work with New Delhi to deal with differences while maintaining peace at borders and forging strategic cooperative partnership.

"We have noted Prime Minister Manmohan Singh's statement," a statement by the Chinese foreign ministry said.

"The two sides have been in communication through the working mechanism for consultation and coordination on boundary affairs, border meetings and diplomatic channels for a solution to the incident in part of the western section of the China-India border," the statement said.

According to the statement, the reaction was in response to a question over Singh's remarks that Chinese troops incursion into the Depsang Valley in Ladakh can be settled through talks.

Singh told media in New Delhi on Saturday that India does not want to "accentuate" the situation in the wake of the recent Chinese incursion in Ladakh and is working on a plan to resolve it.

"We do have a plan. We do not want to accentuate the situation. We do believe that it is possible to resolve this problem. It is a localised problem. I think the talks are going on," Singh said.

China had denied that its People's Liberation Army (PLA) soldiers had pitched tents in Daulat Beg Oldi (DBO) sector in Ladakh amounted to trespass and violation of the Line of Actual Control (LAC).

The Chinese statement said "we stand ready to work together with India to properly deal with differences and maintain peace and tranquillity in the border areas in a bid to boost the healthy and stable development of China-India strategic and cooperative partnership."

It said "while actively developing friendly cooperation in recent years, China and India have committed themselves to settling disputes including the boundary question through peaceful negotiation and preventing the disputes from affecting the development of bilateral relations".

The two sides are currently trying to resolve the issue through border consultation mechanism inked last year even as external affairs minister Salman Khurshid is due visit Beijing on May 9, which officials said would be followed by new Chinese Premier Li Keqiang visit to New Delhi.

Brazil, Mexico candidates in final race for DG WTO

GENEVA, April 26: The race for a new Director General for the World Trade Organisation (WTO) has been narrowed to two candidates. The Geneva-based institution has announced that Herminio Blanco of Mexico and Brazilian Roberto Carvalho de Azevêdo made the final cut.

A final appointment is expected to be made not later than May 31, 2013, according to the WTO whose current DG Pascal Lamy steps down August 31, 2013.

According to a statement by Chair of the WTO General Council, Shahid Bashir of Pakistan, it will “begin the third and final round of consultations based on a revised slate of the two candidates”.

The statement says these consultations will begin on Wednesday May 1, 2013 and continue through May 7.

The WTO DG race started with nine candidates – Roberto Azevedo from Brazil, Herminio Blanco Mendoza from Mexico, Anabel Gonzalez from Costa Rica, Taeho Bark from the Republic of Korea, Tim Groser from New Zealand, Ahmad Hindawi from Jordan, Alan Kyerematen from Ghana, Amina Mohamed from Kenya and Mari Pangestu from Indonesia.

But the number was first pruned down to five and saw Ghana’s Alan Kyerematen, Amina Mohamed from Kenya, Anabel Gonzalez from Costa Rica and Jordanian Ahmad Hindawi out.

The second phase also witnessed Mari Elka Pangestu (Indonesia), Tim Groser (New Zealand) and Taeho Bark (Republic of Korea) getting less support leading to their exit.

Indonesia, Brazil front runners for WTO DG post

By Deepak Arora

NEW DELHI, April 14: NEW DELHI: Even though five candidates have advanced to the second round to be in race for the next Director-General of the WTO, Indonesian and Brazilian candidates were being considered as the front runners to win the coveted post. The five candidates are Ms Mari Elka Pangestu (Indonesia); Mr Tim Groser (New Zealand); Mr Herminio Blanco (Mexico); Mr Taeho Bark (South Korea); and Mr Roberto Carvalho de Azevêdo (Brazil).

India is not expected to disclose its stand till the last minute as the Director General is elected by consensus. New Delhi maintained this position when Brazilian President Dilma Rousseff had brought along her country’s nominee, Roberto Carvalho de Azevêdo, to the Fifth BRICS (Brazil, Russia, India, China and South Africa) Summit in Durban. India had turned down the suggestion of the BRICS formally backing the Brazilian candidate as a premature move. However, at the BRICS summit it was agreed that the next DG should be from the developing countries.

However, the developed countries have not given up. Given their economic clout in the form of aid packages and dominance of their corporates in many poorer countries, they can cajole and cut deals in favour of their candidate. Although 75 per cent of the candidates are from developing countries, the developed ones have already started sending coded signals about choosing one of their own — Tim Groser from New Zealand and Taeho Bark of South Korea. They are saying that the selection should be “merit-based”.

The three facilitators in the process for the selection of the next Director-General of the World Trade Organization (WTO) will begin on April 16 the second round of consultations on the basis of a revised slate of five candidates. Three more candidates will be expected to withdraw after the second round that will be completed by April 24.

Four candidates have been dropped after the first round of consultations with all 159 WTO members.

Candidates who did not advance after the first round are: Mr Alan John Kwadwo Kyerematen (Ghana); Ms Anabel González (Costa Rica); Ms Amina C. Mohamed (Kenya); and Mr Ahmad Thougan Hindawi (Jordan).

The basis for selections was the preferences expressed by each WTO member in short consultations, and the candidates’ likelihood to ultimately gain consensus support.

“The results were clear and unambiguous, whether measured in terms of number of preferences received, or by breadth of support across geographic regions or across the generally recognized categories of Members – LDCs (least-developed countries), developing countries and developed countries,” the chair said.

The current chair of the General Council is Shahid Bashir (Pakistan). Outgoing Director General Pascal Lamy is from France.

Early this month, the Indonesian candidate, who is also Minister of Tourism and Creative Economy, Dr. Mari Elka Pangestu, visited New Delhi to seek India’s support for the Director General’s post. During her one-day stay here, she met Minister of Commerce and Industry, Mr Anand Sharma, and the Minister of External Affairs, Mr Salman Khurshid.

They discussed bilateral developments between Indonesia and India, regional developments as well as the current and future state of multilateral trading system of the World Trade Organization (WTO), whose term of office of its Director General would expire on August 31 this year.

The meetings were held in a positive and warm environment. The ministers appreciated Indonesia and India’s long-time friendship history, starting with cooperation at the Asia-Africa Conference in 1955 held in Bandung, to the present time under the bilateral Strategic Partnership and ASEAN-India Free Trade Agreement as well as the ASEAN-East Asia Regional Comprehensive Economic Partnership (RCEP).

Minister Pangestu and Minister Sharma shared the view that the multilateral trading system should always stay central in the global trading architecture. It is acknowledged by the two ministers that WTO has been able to provide the best governance and most fair trading system with its rules-based framework and dispute-settlement mechanism. Hence, the two ministers agreed that it was the WTO framework is still relevant to all countries, especially developing countries.

In regard to the growing numbers of bilateral and regional trade agreements as well as plurilaterals, Minister Pangestu and Minister Sharma emphasized the importance of ensuring that these processes remain consistent and complementarity to the multilateral trading system.

Sri Sri offers to mediate in Korea

NEW DELHI, April 6: Amidst growing unease and tension in the Korean peninsula world renowned spiritual leader Sri Sri Ravi Shankar has made a fervent appeal to the leadership in North Korea to give peace a chance.

In his statement Sri Sri declared that his time and efforts are fully available to the United Nations, international governments and the community to forestall an unnecessary conflict and make ways for a renewed understanding in the committee of nations.

He urged all countries to exercise utmost restraint and responsibility and avoid man-made calamities at all costs.

He urged Heads of State, law makers, legislators and diplomats to consider a new ethos in international relations that is founded on tolerance, compassion and dignity for all.

N Korea approves nuclear strike on US

SEOUL, April 4: The North Korean army said Thursday it had final approval to launch "merciless" military strikes on the United States, involving the possible use of "cutting-edge" nuclear weapons.

In a statement published by the official KCNA news agency, the General Staff of the Korean People's Army (KPA) said it was formally informing Washington that reckless US threats would be "smashed by... cutting-edge smaller, lighter and diversified nuclear strike means".
"The merciless operation of (our) revolutionary armed forces in this regard has been finally examined and ratified," the statement said.

North Korea had threatened a "pre-emptive" nuclear strike against the United States a month ago, and last week the supreme army command ordered its strategic rocket units to combat status for strikes on the US mainland and US bases in Guam and Hawaii.

"The moment of explosion is approaching fast," Thursday's statement said, adding that a war could break out on the Korean peninsula "today or tomorrow".

"In view of this situation, the KPA General Staff in charge of all operations will take powerful practical military counteractions in succession," it said.

Despite a successful long-range rocket launch in December, most experts believe North Korea is years from developing a genuine inter-continental ballistic missile that could strike the mainland United States.

Hawaii and Guam would also be outside the range of its medium-range missiles, which would be capable, however, of striking US bases in South Korea and Japan.

India, Azerbaijan ink 3 key pacts

NEW DELHI, April 5: Aimed at creating the necessary legal framework in areas of extradition, India and Azerbaijan on Thursday inked three key pacts which also included treaties for mutual legal assistance in criminal and civil matters.

Visiting Justice Minister of Azerbaijan Fikrat Mammadov held a meeting with Home Minister Sushil Kumar Shinde where the extradition treaty was signed.

Law Minister Ashwani Kumar and Mammadov signed the treaty on legal and judicial cooperation in civil and commercial matters while minister of state for External Affairs E Ahamed and the minister signed the contract for mutual legal assistance in criminal matters.

"These agreements will provide the necessary legal framework for facilitating our contacts and interaction in the areas of extradition of citizens of one country to the other, whenever required and for extending any legal assistance sought by one country from the other in the investigation of criminal as well as civil cases," a government statement released said.

India, Indonesia reiterate significance of WTO

By Deepak Arora

NEW DELHI, April 2: The Indonesian Minister of Tourism and Creative Economy, Dr. Mari Elka Pangestu, visited New Delhi on Monday and met Minister of Commerce and Industry, Mr Anand Sharma, and the Minister of External Affairs, Mr Salman Khurshid.

They discussed bilateral developments between Indonesia and India, regional developments as well as the current and future state of multilateral trading system of the World Trade Organization (WTO), whose term of office of its Director General would expire on August 31 this year.

The meetings were held in a positive and warm environment. The ministers appreciated Indonesia and India’s long-time friendship history, starting with cooperation at the Asia-Africa Conference in 1955 held in Bandung, to the present time under the bilateral Strategic Partnership and ASEAN-India Free Trade Agreement as well as the ASEAN-East Asia Regional Comprehensive Economic Partnership (RCEP).

Minister Pangestu and Minister Sharma shared the view that the multilateral trading system should always stay central in the global trading architecture. It is acknowledged by the two ministers that WTO has been able to provide the best governance and most fair trading system with its rules-based framework and dispute-settlement mechanism. Hence, the two ministers agreed that it was the WTO framework is still relevant to all countries, especially developing countries.

In regard to the growing numbers of bilateral and regional trade agreements as well as plurilaterals, Minister Pangestu and Minister Sharma emphasized the importance of ensuring that these processes remain consistent and complementarity to the multilateral trading system.

Minister Pangestu and Minister Sharma reiterated the importance of achieving a balanced outcome at the 9th Ministerial Meeting in Bali at the end of the year.

This means that for the early harvest package, balance within the Trade Facilitation commitments and capacity building, as well as balance between the Trade Facilitation elements and the development components in agriculture. The latter includes the issue of related to public stockholdings and food security proposed by India under the G33 and which Indonesia is a coordinator.

Furthermore, Minister Pangestu and Minister Sharma also stressed the importance of outlining the roadmap to conclude Doha Development Agenda post Bali MC-9.

Along the same lines, the discussion between Minister Pangestu and Minister Sharma, Minister Khurshid shared the same opinion that WTO has provided significant role in preventing the rise of unfair trade measures especially during the recent global economic slowdown.

Minister Khurshid also mentioned that there are challenges in opening-up that are faced by developing countries, hence showing the benefits of trade as well as providing effective capacity building are essential for developing countries in the process of decreasing trade barriers. In this regard, Minister Pangestu seconded the view based on the experience of Indonesia.

During her visit to New Delhi, Minister Pangestu also held exchanged views and heard inputs from representatives of the business sector in an event hosted by Federation of Indian Chamber of Commerce and Industry (FICCI), as well as from academics from various think tanks, NGOs, opinion leaders and the diplomatic community at a round-table discussion hosted by Research Information System (RIS).

Minister Pangestu, who was Minister of Trade of Indonesia from October 2004 to October 2011, is convinced that a multilateral trading system is a solution to many problems worldwide.

She said, “Since its creation, the WTO has helped generate more trade, more growth, more jobs and more opportunities in the world. Above all, it has lifted people and nations out of poverty in developing countries and created jobs for all member countries. We must safeguard the system to ensure open and fair trade that benefits all members and ensure that we manage the challenges ahead.”

Minister Pangestu is one among four ministers who are candidates for the Director General of the WTO. Other than the four ministers, there are five other candidates who are in the race. If elected as the new Director General, Dr. Pangestu would be the first woman to hold the position since the creation of the WTO.

Based on her experience, she understands the importance of inclusion and would ensure that the opportunities from global free trade benefit everyone, men and women, in developed and developing countries, for big business and SMEs.

In January, the Minister already presented her vision and mission to the WTO General Council Meeting in Geneva, as well as meeting WTO members’ representatives.

She has also visited Washington DC, Beijing, Brussels, Paris, Berlin, Warsaw, Budapest, Moscow, Dubai/UAE, Abidjan, Abuja, Cairo, Stockholm, Rabat, Copenhagen, Ottawa, Kingston and Tokyo in order to share her commitment to integrate every country into the global trading system.