Trade in Srilanka

Sri Lanka reported a trade deficit corresponding to 965 Million USD in January of 2012. Historically, from 2003 until 2012, Sri Lanka Balance of Trade averaged -1038.2000 Million USD success an all time high of -239.5000 Million USD in September of 2003 and a record low of -2974.0000 Million USD in December of 2011. Sri Lanka exports mostly textiles and garments (40% of total exports) and tea (17%). Others include: spices, gems, coconut food, rubber and fish. Main export partners are United States, United Kingdom, Germany, Belgium and Italy. Sri Lanka imports petroleum, textile fabrics, foodstuffes and machinery and transportation equipment. Main import partners are India, China, Iran and Singapore. This page includes a chart with chronological data for Sri Lanka Balance of Trade.

The balance of trade is the difference between the monetary value of exports and imports in an country over a certain period of time. A positive sense of balance of trade is known as a trade surplus and consists of exporting more than is imported; a negative balance of trade is known as a trade deficit or, informally, a trade gap. The balance of trade forms part of the current account, which also includes other transactions such as income from the international investment position as well as international aid. If the current description is in surplus, the country's net international asset position increases correspondingly. Equally, a deficit decreases the net international asset position. The Balance of Trade is identical to the divergence between a country's output and its domestic demand - the difference between what goods a country produces and how many goods it buys from abroad; this does not contain money respent on foreign stocks, nor does it factor the concept of importing goods to produce for the domestic market.

Sri Lanka State Trading (General) Corporation Ltd., is a fully government owned , well established organisation functioning under the purview of the Ministry of Co-operatives and internal trade. STC has been in the big business over more than 30 years whilst catering to both public and private sectors.

Today, the company deals with a wide range of products namely, Office Stationery and Equipments, Construction and hardware items, ICT Products, Office Furniture and Interior Decors, FMCG, Automotive Batteries & Tyres, Agricultural Products, Chemical Products etc. In addition, STC has taken steps to market world reputed brands such as 'Double A' photocopy papers, Frostair Airconditioners, Yokohama tyres, HP & Fugitsu Laptops, 'Exide' automotive batteries, 'Orange' Electrical items etc.

STC operates under the guidance of the government with a long term goal of developing Sri Lanka by providing the very best to consumers, and ensuring stability in market price for various goods, and thereby protecting consumer welfare. With this in mind the STC has partnered with Intel, Microsoft, and HP Lanka to make computing affordable and in doing so developing and laying a springboard for IT usage.

Under this scheme, laptops and desktop computers will be offered at very reasonable prices on installment-based payment schemes that can be tailored to suit any budget. HP computers will be powered by Intel processors and Genuine Microsoft operating systems while being maintained under HP’s three-year company warranty, ensuring the security and longevity of the product, and offering the very best experience to the shopper, and in doing so driving the growth of IT in the nation.

"To develop and promote Sri Lanka's foreign trade relations at bilateral, regional and multilateral levels by the effective implementation of rule trade policy, with a view to raising the standards of living and realizing a higher quality of life through the increase of total production, income and employment levels, thereby actively causative to the overall economic growth of Sri Lanka".

P.D Fernando, the new Director General of Department of Commerce was felicitated by the NCE at the Council Meeting held in May at the Taj Samudra.

He was presented with a plaque in recognition of his invaluable military to exporters, during his many years of service at the Department of Commerce to overseas Trade Missions. Fernando was known among many exporters as a person who had always strived to assist Sri Lankan exporters to the best possible extentby effectively engaging the bureaucrats and other relevant persons in overseas markets, who were impediments to Sri Lankan exporters. He requested member exporters of the meeting room to unhesitatingly

Sri Lanka is a South Asian island is situated 29 km off southeastern coast of India. Palk Strait separates Sri Lanka from India. It is 350km (217miles) elongated and it's maximum width is 180km (112miles). Its total land area is about 64.740 sq. km.

Sri Lanka has its own contrasts; its own fortunes and misfortunes. Over thousands of years travellers to this small island were surprised by its physical beauty and the richness of its culture. Many described it as a Paradise Isle and as the Pearl of the Orient. Then for many years it went from beginning to end a difficult period under colonial rule. At present it goes through its most difficult times in its history due to the continuing ethnic conflict.

For Centuries, Sri Lanka has been associated with the international trade in gems & jewellery, and has been referred to as the “Cradle of Treasures” due to its wealth of precious gemstones. The art of jewellery making and Sri Lanka’s gem industry have been widely acclaimed in literary works dating as far back as 250 B.C in the Legends of Arabia, folk-lore of China,India, Indonesia and in the tales of early European travelers to the East, which describe in grate detail the fabulous gems & jewellery of Sri Lanka.

The Earth’s greatest meditation of fine gems could be found within Sri Lanka’s land area of 65,525 square kilometers. Geo-scientific opinion estimates that 90% of the Island’s land mass is potentially gem bearing. Sri Lanka ranks with Burma, Brazil, South Africa and Thailand as one of the five most important gem bearing nations of the world.

A unique feature of Sri Lanka’s gem mines is that an assortment of gems such as Spinels, Corundums (Blue and Star Sapphires, Rubies) Cat’s Eyes, Zircon and many others are found in a single gem pit. Gem mining in Sri Lanka is almost entirely confined to sedimentary deposits. Gems as a resource belongs to the management, however licenses for mining could be obtained for privately owned lands.  Most often gem mining is done in agricultural lands during off-season.

The techniques of mining and processing in Sri Lanka though labour intensive is very efficient compared with gem mining in other developing countries and the recovery of fine gems as small as one millimeter or less is assured.  shield of the environment is ensured by law.

Product

Sri Lanka’s breathtaking natural heritage is blessed with over 150 varieties of gems  including Blue, Pink and Yellow Sapphires, Rubies, Padmaradchas, Star Sapphires, Star Rubies, Alexandrites, Cats’ eyes, Spinels, Aquamarines, Topazes, Zircons, Garnets, Tourmalines, Moonstones, Quartzes and variety of rare gems. Amongst the outstanding gem stones that Sri Lanka has produced in the up to date era is the Blue Giant of the Orient (466 cts), Logan Blue Sapphire (423 cts), Blue Belle of Asia (400 cts), Rossar Reeves Star Ruby (138.7 cts), Star of Lanka (393 cts. Star Sapphire) and Ray of Treasure (105 cts. Cat’s Eye). The first three gems are on display at the Smithsonian Institute in Washington DC, USA.  The Blue Sapphire is Sri Lanka’s gem supreme and can be considered, the highly prized of all gems. It is second only to the equilateral in hardness. The Blue sapphire is the National Stone of Sri Lanka.

Skilled labour at competitive rates combined with a global reputation as a country with a friendly and forward looking investment climate has created an beautiful base for cutting and polishing diamonds in Sri Lanka.
The country’s highly literate and trainable work force is the locomotive of its success as a cutting centre. Adaptability to new technology has helped the industry produce polished diamonds with high quality makes it is increasingly recognized internationally.
Sri Lanka ’s specialty is small diamonds of extraordinarily high quality, which are imported sawn or cleaved rough. In addition to the traditional brilliant cut, many cutting companies handle other specialized shapes and cuts, particularly tapers, baguettes and princes etc.
The industry in Sri Lanka is highly organized and the factories are equipped with modern bruting machines and polished wheels mainly from Belgium, Israel, Thailand, India and China.

 Sri Lanka’s jewellery makers have refined their hereditary skills over centuries, to attain the highest standards in exquisite craftsmanship and sophisticated creativity with the modern touch. With the addition of the latest expertise in design and construct, and a new focus on design excellence, Sri Lanka is emerging as a design centre offering high quality jewellery collections of Silver, Gold & Platinum.

Jewellery of Sri Lankan origin is hallmarked by an autonomous Authority, having membership in The Convention on the Control and Marking of Articles of Precious Metals (Hallmarking Convention) and the International connection of Assay Offices.  The Gemological Laboratory certifies the validity of gemstones.

The laws in Sri Lanka guarantees copyright protection of designs. Simplified import-export procedure offers intercontinental buyers peace of mind and ease of operation when dealing with Sri Lanka. Sri Lanka’s membership of the conference on the ATA carnet, facilitates the smooth transportation of jewellery.

An Import Export Gem Office at the Cargo Village at the International Airport in Katunayake expedites the clearance of rough gemstones and export of cut & polished gems, jewellery and diamonds.

A Sri Lanka-Korea Economic Co-operation Committee was set up on 4th November 1982, under the aegis of the Ceylon Chamber of Commerce. The objectives of the committee are to attract Korean investment to Sri Lanka, to promote two-pronged trade between the two countries with weight on the promotion of exports to Korea, to encourage the transfer of expertise from Korea to Sri Lanka and to encourage the growth of tourism from Korea to Sri Lanka. Over all, the economic co-operation board has met nine times, five times in Sri Lanka and four times in Korea.

Trade in Srilanka

 

In relation to coconut fibre and fibre based products, there is significant potential to further expand exports of bristle, twisted fibre, geo textiles, coir fibre pith, various kinds of brushes, door mats, matting as well as rubberised coir based products for the automobile industry. There seems to be a number of areas where upward interest has been observed in new applications for rubberised coir fibre, such as in civil construction weed killer mats. These can also be explored.

The trend for environmentally friendly biodegradable natural products like geo textiles manufactured from coir fibre, has opened opportunities for export to Korea.

There is also a lot of potential to expand exports of activate carbon to Korea since the total imports are in the region of about 12,000 million tons per year.

Other products with enormous potential are floricultural products particularly rooted plants, uprooted cuttings/cane, tissues, cultured plants, cut flowers, cut pretty leaves and flower seeds.

There is also opportunity for exports of calibrated gemstones, diamonds and jewellery, with prospects for collaboration with Korean partners.

Since Korea imports more than US$ one billion worth of garments, in attendance are also enormous prospects for export of Sri Lankan textiles and textile based products, which at the moment is only Rs. 200 to 300 million.

Other potential product areas are limonite, graphite and silica sand, canned and processed fruits and juices, processed gherkins, baby corn, essential oils and spices.

The Sri Lanka Export Development Board (SLEDB commonly known as the EDB) is the premier state organisation dealing with the promotion and development of exports. It was established in 1979 under the Sri Lanka Export enlargement Act No. 40 of 1979, and now functions under the Ministry of Industry & Commerce.

The Chairman is the Chief Executive who is assisted by the Director General and the Additional Director General. Its day-to-day functions are carried out by several divisions each of which is headed by a Director.

The Export Services Division provides assistance and creates opportunities for local professional services companies including ICT,BPO,KPO and Electronic harvest to extend their business worldwide, thereby increasing export sales and employment prospects in the country through integrated programmes such as supply development, quality improvement and training, initiate product development and adaptation of such products / services to export market requirements.  It offers assistance for the ICT/BPO/KPO exporters for market development and consultative services to small and mid-sized businesses and sponsors & co-sponsors educational seminars and training programs for exporters and potential exporters. 

In the Gulf region, the UAE is the largest export market for Sri Lanka, the largest source of imports to Sri Lanka, and the largest investor in Sri Lanka. The UAE is also home for a large number of Sri Lankan expatriate workers among Gulf countries. The number of tourists from the UAE visiting Sri Lanka is also on the increase and the UAE has become the largest tourist supplier among the Gulf countries to Sri Lanka in 2011.

ri Lanka has been trading with the UAE for a significant period of time and it continues to remain one of Sri Lanka's major trading partners ranking 7th position of top export market to Sri Lanka. Sri Lanka exported US$ 246 Mn worth of goods to UAE in 2010. The total trade between the two countries was at US$ 570 Mn in 2010, an increase of US$ 65 Mn compared to the figures registered in 2009. However, the balance of trade has been in favour of the UAE. Interesting to note that the two way trade jumped to US$ 807 Mn during January – September 2011, pushed up by rice and oil imports which accounted for over one third or USD 267 million of imports from UAE.

Tea, natural rubber, coconut oil, desiccated coconut, copra, cashew nuts, essential oil, fruits and vegetables, processed food, sea food, rubber products and toys are the chief export commodities from Sri Lanka to the UAE. However, tea has been the major export commodity (accounting 60%) of Sri Lanka to the UAE.

Among the items imported from the UAE, crude oil, diesel, gas oil and lubricants are the major trade in commodities accounting for 24% of whole imports. Other items include urea, lentils, iron & steel and machinery & parts.

Trade in Srilanka

Drug Trade in Bangladesh

Crime in Bangladesh is at hand in various forms. Organized crime include drug trafficking, money laundering, extortion, murder for hire, fraud etc. Other criminal operations engage in human trafficking, robbery, corruption, black marketeering, political violence, terrorism, abduction etc.

Bangladesh is a transit country for illegal drugs produced in neighboring countries. According to the Annual Report for 2007 in print by the International Narcotics Control Board (INCB), Bangladesh has become the main transit point for trafficking of heroin to Europe from Southeast Asia. The report noted that the porous borders between Bangladesh and India make a payment to the cross-border trafficking of narcotics.There are three routes used for trafficking of heroin into Bangladesh: by courier from Pakistan, by commercial vehicle or train from India, and by sea (Bay of Bengal) or by road from Myanmar.

An estimated 100,000 people work in the drug trafficking commerce in Bangladesh.

According to police reports, homicide has increased in the country in recent years. Between 2001 and 2003, a total of 10,331 cases of homicide were reported in Bangladesh^.

Bangladesh is on top of the list in Software piracy in the Asia Pacific region^.Software vendors lose 102 million US dollars every year^.There is no strict law to stop the crime in this country.

In our recent political history corruption became a buzzword in all our public sectors and even in our private organizations.Bangladesh has been acknowledged as the most corrupt country in the world for consecutive four years by Transparency International.Corruption means to draw any profit or benefit that goes touching law and harms others interest.Corruption done by many ways like bribery,favouritism,extortion,fraudulence and deception etc.Corruption is a social crime.Capitalistic economic system,unequal distribution of wealth,gap between wealth and poverty,economic insolvency,high living cost,unemployment are the social and economical causes of corruption. In a poor and underdeveloped country like Bangladesh the effects of corruption in country and politics are very devastating.If government officials are corrupt people do not get good service from them.If politicians and policy-makers are corrupt .It affects country's overall development.By corruption a group of people earn lots of means and lead luxurious life.This creates social gap between poor and rich people. Corruption in the educational systeam lowers down standard of education .All this corruption seriously harms the image of our nation and also create economic and social crimes. It is also a social problem.Due to corruption only a group of people gain but a majority of people suffer.It has became a serious national problem.we must eliminate the problem from the society.

Among the trafficking routes to Bangladesh, the vast forests and terrain areas of hill tracts and the Bangladeshi, Myanmar and Thai Fishing Trawlers are being safely used for trafficking heroin into Bangladesh.

It is alleged that heroin produced in North Myanmar, Laos, Thailand and India is by and large trafficked into  foreign countries through Calcutta, Madras and Mumbai routes of India and through Thailand and Rangoon. But the International drug barons and the Mafia network also find Bangladesh as a out of harm's way and alternate  trafficking  routes when the Indian and Myanmar routes become risky.

Bangladesh, with its longest borders with India on 3 sides and with Myanmar to the northeast has become very risky and vulnerable for drug trafficking and abuse. 

It has been spread over from urban areas to rural areas. The most frequently used drug is heroin, thereafter, phensidyl (Codeine based cough syrup) illegally transit from India and the third highest is cannabis. Bangladesh have borders with India on its three sides excluding the south, which stands on the Bay of Bangal. The three border routes are as follows:

The western routes with India are – Darshana, Zibannagar of Chuadanga, Hili and Birol of Dinajpur and Moghulhat, Aditmari, Durgapur, Fulbari, Nageshwari of Kurigram and Nawabgonj, Rajshahi, Meherpur & Debhat and Kaligonj of Khulna and Benapole, Chowgacha of Jessore.

n the otherside of Indian boundaries, there are factories/industries of manufacturing codeine based narcotics (with ‘Phensidyl’ as trade name) and are being trafficked into Bangladesh, where BSF and BDR are  guarding borders on their respective sides.

Codeine – ‘A’ class narcotic liquid has been trafficked into Bangladesh by bus, truck packed in different baggages and luggages through the above border areas in the trade name of phensidyl and also drugs are smuggled into by ships, fishing trawlers and by airways. It seems that Bangladesh has been all the time more used as a ‘transit country’ for heroin shipments using Dhaka Airport and the seaport of Chittagong as exit-points.

About 100,000 people, including 30,000 women and children, are involved in illegal drug trade in Bangladesh, the country's Department of Narcotics be in charge of (DNC) said Wednesday.

drug trade

"It is unfortunate for us that we have failed to control the use of narcotics," DNC director general (DG) Humayun Kabir told reporters Wednesday, on the eve of the globally observed anti-drugs day on June 26.

Drug addicts spend at least 460 million taka (about 6.57 million U.S. dollars) on narcotics every day, leading English newspaper The Financial Express reported Thursday quoting the DNC DG.

Kabir said there was no specific government data on the number of drug addicts or drug use in the country.

Two weeks ago, an odd incident took place while this reporter was en route to Dhaka from Cox's Bazaar, riding a renowned luxurious AC bus. The expedition was smooth all the way; however, it came to a halt when the bus suddenly stopped near the Kanchpur Bridge. It was at the crack of dawn; the passengers were waking up, all bleary eyed, some wondering what was going on. They found the bus blocked by a police vehicle. Another police vehicle was blocking the way behind the bus. A few police officers in civilian clothing carrying pistols got on board. They claimed to have been tipped off that there was a member of a drug peddling ring travelling with us, smuggling heroin and 'yaba' to Dhaka. Each and every passenger was searched, along with their luggages. After pointed for half an hour, the officers found four small packets of heroin, tucked inside a mobile phone packing box along with the phone, in the luggage carrier of the bus. While everyone was getting over the shock from what had just been found, two of the officers got busy estimating the worth of the catch. "I think each of those packs has around 250 grams of heroin," whispered one cop to the other. According to them, the total amount of heroin was about one kilogram, approaching from Myanmar through Cox's Bazaar. Police search is almost a usual occurrence on the Dhaka-Chittagong highway, as it is in Nageshwari alongside Rangpur-Dhaka highway, and on the Jessore-Dhaka highway. But drug traffickers are still mostly out of reach of the law enforcement agencies. According to a source, more than 400 drug dealers are administration this illegal business at about 374 spots in Dhaka city. A number of godfathers, including ward commissioners of Dhaka City Corporation (DCC), and one listed fugitive 'top terror' are in control of the entire business in the capital. Despite law enforcers' routine and special raids to combat the prohibited drug trading, the situation virtually remains unchanged as most of the arrested drug dealers resume their businesses after securing bail from the court. The arrested drug peddlers can easily get out of jail due to the loopholes in police reports in connection with the cases The Department of Narcotics Control (DNC) sources said that the amount of drugs seized is only 10 per cent of the total drugs smuggled into the country. Some 100,000 people are engaged in this illegal trade, and 30 per cent of those charged with drug industry are women and children. Most of the drugs sold in the drug dens are heroin, cannabis and phensedyl, as they are most preferred by the drug addicts; yaba, on the other hand, is a 'fashionable drug'. Sale of these drugs, especially phensedyl, openly takes place under the very nose of the law enforcing agencies. Drug addicts, mostly youngsters - both male and female - gather at different drug spots from afternoon till midnight. The traders normally adopt new ntactics to increase their business.According to some intelligence sources, the
highest number of illegal drug spots has been identified in Dhaka's Jatrabari, Demra, Shyampur and Kadamtoli thanas, where 93 drug dens are active. About 87 sellers are dealing at those spots. "I think it will be very difficult to remove drugs from the city because Bangladesh lies on one of the most central drug trafficking routes in the world," said an official from DNC. According to DNC, there are two major drug trafficking routes that are being used to smuggle huge amounts of illegal substances around the world, with each consignment being significance thousands of dollars. One of these routes starts from Golden Triangle, ending up in Canada via Myanmar, Bay of Bengal, Bangladesh, India, Pakistan, Middle East, Europe and the US. The other route starts from Golden Crescent, ending up in Canada via Pakistan, Middle East, Africa, Europe and the US. Golden Triangle and Golden Crescent are the two major opium-producing areas in Asia. Golden Triangle covers the mountains of Myanmar, Vietnam, Laos and Thailand; Golden Crescent overlaps the mountainous territories of Afghanistan, Iran and Pakistan. Apart from this, NDC marked another route that goes from beginning to end Bangladesh, India, Middle East, Indian Ocean, Europe, the USA and Canada. The vast forests and hilly terrains of Southeast Bangladesh provide shelter to the drug smugglers. Bangladeshi, Burmese and Thai fishing trawlers are recurrently used to bring heroin into Bangladesh. As mentioned in various intelligence reports, heroin produced in North Myanmar, Laos,Thailand and India is generally trafficked to foreign countries through Kolkata, Chennai(formerly named Madras) and Mumbai of India, Thailand and Yangon of Myanmar. However,international drug barons and the mafia find Bangladesh as a safe alternative way when the Indian and Burmese routes become risky. Dr Imtiaz Ahmed, professor of International Relations at Dhaka University, stated that goods worth more than US $3.5 billion are smuggled every year. Visiting extensively alongside the Bangladesh-India border, this reporter found that Indian border authorities help smugglers in trafficking drugs into Bangladesh; they are even involved in human trafficking. This watching was also backed up in a top national intelligence source. According to the Border Guards Bangladesh headquarters, drugs worth more than Tk 4.538 billion including heroin, cocaine, opium, charas, phensedyl and marijuana was seized earlier this year from the Bangladesh-India border. Phensedyl, a cough syrup that is banned in Bangladesh and one of the choicest substances namong the youngsters, is quite easy to supply. nThere are more than hundreds of mini factories near the Indian wall of the border that produce
phensedyl. It is strictly prohibited in Kuchbihar, Assam, Tripura and Meghalaya; any physician who prescribes this drug will be punished. Reliable sources from the Indian side of the border said to this reporter that these drugs originate from India and gain access to Bangladesh
through the porous border, under the patronage of RAW officials.A senior official of the Directorate of Narcotics admitted that the inflow of drugs from India can hardly be checked. Despite many attempts, only 5 per cent of the total quantity of smuggled drugs is seized by Bangladesh border authorities; the drug pushers manage to smuggle the rest using road, rail and water ways. Bangladesh is a signatory to all the three UN Conventions of 1961, 1971 and 1988 and the SAARC Convention on Narcotic Drugs and Psychotropic Substances, 1990. Obligated under these conventions and being in the close proximity of the two major heroin-producing areas, Bangladesh has full various measures to stop, or atleast restrict, imports. However, there has been very little progress. There are several drug trafficking routes between India and Bangladesh. The western routes go through Darshana, Jibonnagar ofChuadanga, Hili and Birol of Dinajpur,Moghulhat, Aditmari, Durgapur, Fulbari, Nageshwari of Kurigram, and Nawabgonj, Rajshahi, Meherpur and Debhat, Kaligonj of Khulna, and Benapole, and Chowgachha of Jessore. Eastern routes are through Akhaura, Jhautala, Sadullahpur, Nawgaon, Singer Beel, Col Bazaar, Gangasagar and Kasba of
Brahmanbaria, Bibirbazar, Chagalnaiya, Maharajganj and Gutuma of Feni, Barkal and Baghaichari of Rangamati, Chittagong, Teknaff of Cox's Bazaar, and Dighinala, Panchari, and Matiranga of Khagrachari. Northern routes include Haluaghat (Telikhali/Karaitali/Surjyapur/Bandarkata/Munsirhat/ Munshipara) of Mymensing and Durgapur (Bijoypur and Bhabani area) of Netrokona and Bangla Banda, Bhurungabari, Jhenaigati, Sunamgonj and Tamabil. Investigation by this reporter revealed that there are three important drug wholesaling spots in Dhaka city: Amin Bazar at Gabtali, Ashulia at Uttara and Chittagong road near Jatrabari. These three locations are the safe spots for the rewarding drug trading and dumping house. 'The drugs are carried into the capital through Jessore Road inside coconuts," said a drugs carrier from Amin Bazar. The 'goods' are then sold at various points of Mirpur 1, Gabtali and Amin Bazar, currently single-handedly controlled by the notorious armed group GangchilBahini."Besides drugs, they also sellarms which are smuggled through the Indian border," said a tea stall owner from Ashulia. "Most of these drugs and arms are wrapped in plastic and dumped under water in the lake in Ashulia, or are hidden near the lake premises," he shared. "When daylight breaks, the retailers fro mthe city arrive to buy them, which they in turn sell to their customers in Dhaka,"added the tea stall owner.Interestingly, last year the expense of DNC to extract illegal substances was Tk 183,199,589 but drugs recovered were worth much less. It is funny that DNC claimed to have held only 9.5 kg heroin last year, while a DNC insider told this reporter that the actual quantity was a lot more. DNC is headed by a director general. It has a sanctioned manpower of 1,283, but the existing manpower totals 868. A DNC official asserted that it is difficult to run the operation with such inadequate manpower. However, the intelligence agencies regarded the statement as a funny excuse. All we can do now is hope that the concerned authorities will get just about to take appropriate and effective means to put a stop to drug trafficking in this country. 

drug trade

Dhaka: Bangladesh has become the prime transit route for trafficking heroin to Europe from Southeast Asia, according to a report from the International Narcotics Control Board 2007 annual report that was released on Wednesday.

Dhaka: Bangladesh has become the prime transit route for trafficking heroin to Europe from Southeast Asia, according to a report from the International Narcotics Control Board 2007 annual report that was released on Wednesday.An independent and quasi-judicial monitoring body which implements UN drug-related conventions, the INCB also blamed a lack of resources and training of law enforcement agencies for Bangladesh's failure to 'properly implement' its drug control policy.

Bangladesh police are quoted in the report as saying that the Chittagong seaport is the "main exit point for drugs leaving the country," while the rest is smuggled out through Sylhet and Chittagong airports.

The report also cites press reports of couriers trying to smuggle heroin to Europe on their way from Pakistan through the Zia international airport in Dhaka.

The report observed that the use of Bangladeshi courier services for drug trafficking is on the rise, with drugs shipped primarily to Canada and South Africa, citing the seizure of 550 kilograms of ephedrine in February 2007. 

On July 28, 2010 an article was published in the Telegraph (Kolkata, India) under the heading 'Glare on African drug cartels' written by Pankaj Sharma. The article focused on the increased participation of African nationals, especially Nigerians, in the regional drug trade. Among other things, the article quoted one unnamed customs official as saying that these African (Nigerian) syndicates who traditionally operate from the heroin trafficking routes (the drugs are trafficked from the Golden crescent in Afghanistan through Pakistan) in the Western border of Pakistan and India are increasingly using the North Eastern states (in this case the drugs are trafficked from the Golden triangle of Myanmar) for achieving their business purposes.

So what does this have to do the current or future scenario in Bangladesh? Barely 24 hours after this article was published in Kolkata, only 252 km away in a city called Dhaka, a Nigerian national Afolayan Oladipupo Zaccheaus was apprehended in the Shahjalal International Airport trying to smuggle six kilograms of heroin estimated to be worth 6 crore taka to Malaysia using Bangladesh as the transit country. Credit for this discovery lies with a customs official named of Rasheda Parveen. The customs official at Departure gate no. 3 noticed some anomaly in the colour of the steel handle of the luggage. She immediately suspected that something was amiss. Had the steel handle been vacant i.e. if there was nothing inside the handle, the scanners would have displayed a slightly different colour. As it turned out, she was right, the steel handles did contain something -- 58 small foil packs with white powder inside a total of 10 aluminium packs. Zaccheaus tried to flee the scene but was quickly apprehended by the Armed Police Battalion. His partner Ratmi Aziz however, managed to escape. examination in the case is currently ongoing.

This is hardly the first time that foreigners have been caught for drug trafficking in Bangladesh. As his passport shows, Zaccheaus himself has been to Bangladesh seven times. This year alone, he has been in Bangladesh four times. "He is very familiar with our country," comments Shahidul Mannaf Kabir, Superintendent, Department of Narcotics Control, Airport in-charge, the agency that is handling the exploration. "I asked him in Bangla, 'what is your name' and he replied promptly. As he was taken to the prison cell, he shook hands with all the other prisoners and exchanged courteous greetings. I was astounded by the astuteness of this foreigner. He knows that he is likely to languish here for some time and under such circumstances he needs to be on good terms with the other local prisoners."

His words were echoed by an officer of an elite law enforcement agency: "He has been in Bangladesh seven times. What do you think he was here for? Playing football for Rahmatganj?" quips the officer on condition of anonymity. "Since the 80s, Nigerians are regular visitors to this country. The High Commission of Bangladesh has been giving them tourist visas on a regular basis, no questions asked. Bangladesh is not exactly a tourist's paradise, especially not for citizens of another third world country situated in another part of the world. There are many international students who come to Bangladesh from those parts of the world and their presence in our country is mutually beneficial. About the others I have my reservations." while we're on the subject, Zaccheaus was posing as a stock lot broker of ready-made garments, although he has always been travelling to Bangladesh on a tourist visa. An identity card found on him dating back to 2008 reads that he is a member of Rahmatganj Muslim society.

Zaccheaus's passport has revealed that he is a regular traveller and his places of frequent visits include India, Thailand, Malaysia, Vietnam, UAE, Nepal and the Philippines.

In recent years, Nigerians have been heavily involved in Indian drug trafficking, ranging from Mumbai on the West coast to the North Eastern states, often known as the seven sisters. UAE, the last destination of Zaccheaus, has also been suffering from operations of international crime syndicates.

The world’s major heroin smuggling route.

In June 2006 the arrest of a footballer Ozor Michael in Nepal revealed the existence of a flourishing global drug syndicate linked to Afghanistan and Europe. Michael was a footballer in a top Nigerian club. His passport raised worries among Nepalese narcotics officers as it revealed that he had travelled on a very suspicious route -- Afghanistan, Dubai and Doha. Like many Nigerian drug traffickers arrested before and after him, Michael claimed that it was his love for football that brought him to this country.

In Thailand, Nigerians also have a heavy hand in drug trafficking operating from the capital city Bangkok. The presence of foreigners in other places is too conspicuous and drugs are brought from the Burmese border by Thai local smugglers who then sell it to the Nigerian 'mules' who carry the merchandise by air to their destined places. Bangkok has one of the world's busiest airports and accordingly this makes smuggling drugs a lot easier. Proximity to the Golden Triangle of Myanmar has made Thailand a haven for local and international drug syndicates. Nigerian syndicates also activate in other South Eastern countries in conjunction with local criminals.

Zaccheaus has himself claimed that in the last few days he has been to Cox's Bazaar and Comilla. Cox's Bazaar lies near Teknaf, the main border town with Myanmar, which is the second largest producer of heroin after Afghanistan. Comilla lies in close proximity to the border with Tripura, the gateway to the seven sisters. As mentioned earlier, Nigerian organised groups are very active in the North Eastern states of India. So it would have seemed appropriate that he had good reasons to be in Comilla or Cox's Bazaar for his 'business' purposes.

However, there is one setback in this initial testimony. In Bangladesh, foreigners are a rare sight, especially in the countryside, and they attract a lot of attention from curious onlookers, many of whom have never seen an outsider in their life. Consider the fact that this particular foreigner is a drug trafficker and it would be literally impossible for him to be involved in underhanded dealings in most places in Bangladesh without attracting the undue attention of hundreds of locals. “He is definitely not telling us the truth. By stating Comilla and Cox's Bazaar as the places he last visited, he is only trying to misdirect the investigation and cover up the point in Dhaka from where he actually receives the supplies,” says Shahidul Mannaf Kabir. “We shall hopefully get to the bottom of the whole affair once he is placed on remand.” The magistrate court granted three days remand on August 3.

A law enforcement official specialising in Narcotics expresses similar views. “The Nigerians cannot operate clandestinely unless they are in the posh areas of Banani and Gulshan where the sight of foreigners are more common and they can mix among their own people,” he says. The official requesting anonymity also expressed disappointment concerning the immigration system of Bangladesh.

“The airport is operated by 18 different agencies. There is little co-ordination between the different agencies. As far as the Immigration Police is concerned, they can only check the passports, make sure they are not forged and then authorise the traveller. They cannot open the baggage, which is done by the Customs officials. The background officials have played little role in stopping the flow of drugs from the international airports,” says the official. “Most custom officials are more occupied with other affairs from where they can derive an income.” He, however, praised the efforts of the official who had detected the white powder but maintained that such people were a rarity. “The system needs an overhaul. Bangladesh has long been a transit point for trafficking drugs to other countries and the vast majority of the consignments pass through the international airports, especially the one in Dhaka.”

The international illegal drug syndicates change their modus operandi almost instantly when their contraband goods are seized by the law enforcing agencies, he said. They also change their routes and the system of carriage making it extremely difficult for DNC members to detect their movements.

Meanwhile another official of the department said that a total of 7,881 kilograms of heroin, 25,961 bottles of contraband Indian Phensidyl syrup, 240 kilograms of cannabis, 49 of cannabis plants and 1437 ampoules of Pathedine, 14,50,210 poppy foliage and other contraband drugs were seized between January and May".

Despite attempts to stop smuggling of drugs, such as heroin and Yaba tablets from Burma to Bangladeshthe armed forces and other law enforcing agencies cannot seem to control the rampant trade in drugs. It continues unabated, an intellectual said.

In Bangladesh the middle class, including students are into the use of Yaba tablets and other drugs coming from Burma forcing the Bangladesh government to crack down against drug users and dealers. The surplus drugs, including Yaba tablets are dispatched to other countries, said an observer.

The members of law enforcing agencies and the staff members of the DNC are in a position to nab the dealers and retailers. But the ring leaders of the drug mafia and godfathers remain out of reach as they are well organized and equipped with sophisticated firearms and telecommunication gadgets.
 

 The governments of Pakistan and Bangladesh on Monday decided to initiate cooperation in counterterrorism, counter narcotics and drug trafficking.
The fifth round of Pakistan-Bangladesh bilateral consultations was held here with Pakistani side led by Foreign Secretary Salman Bashir and Bangladesh handing over by its Foreign Secretary M Mijarul Quayes.
During the three hour-long discussion, including the lunch hosted by the foreign secretary in honour of the foreign secretary of Bangladesh, the two sides held a detailed overview of political, economic and trade, defence, cultural, educational and consular issues.
"The two foreign secretaries agreed to give fresh impetus to the promotion of bilateral relations and a comprehensive partnership," said the foreign office spokesman, Abdul Basit, in a statement. They agreed to the holding of next meeting of Joint Economic Commission and biannual consultations at senior officials' level."
It was also decided to initiate support in counterterrorism, counter-narcotics and drug trafficking besides facilitating visas and enhancing connectivity by direct shipping and more air links, he said. Basit said the next round of bilateral consultations would be held in Dhaka in 2011.

drug trade

 

Science trade in Bangladesh

As soon as it gained independence in 1971, Bangladesh followed with keen interest and supported Vietnam’s struggle against the U.S. The Government of Bangladesh condemned the U.S.’s bombing in the North of Vietnam. There was a strong nation-wide movement of the Bangladeshi people to support Vietnam’s fighting against the U.S. Bangladesh was the first country in South Asia and second one in Asia to recognize and establish diplomatic relations at ambassadorial level with Provisional Revolutionary Government of the Republic of South Vietnam. On February 11, 1973, Vietnam and Bangladesh officially established diplomatic relations. The two sides started exchange of visits and economic and trade interaction. In July 1982, Vietnam closed its Embassy in Dhaka.

In recent years, there have been new and important political and economic progresses in the relations between Vietnam and Bangladesh. In November 1993, Bangladesh opened its Embassy in Ha Noi. Vietnam re-opened its Embassy in Dhaka in January 2003.

The two sides have exchanged a number of high-level visits over the years.  

Vietnam-Bangladesh bilateral trade, though modest, is progressing positively with an average growth rate of 20% per year. Bilateral trade turnover was US$ 14 million in 2002 (Vietnam exported US$ 7 million and imported US$7 million), US$ 20 million in 2003 (Vietnam exported US$ 14 million and imported US$ 7 million), US$ 39 million in 2004 (Vietnam exported US$ 17.8 million and imported US$ 21.2 million), US$ 76 million in 2005 (Vietnam exported US$ 22 million and imported US$ 54 million). During Prime Minister Khaleda Zia’s visit to Vietnam in May 2005, the two sides set a target of US$ 100 million of two-way trade by the year 2008. 

 - Vietnam’s main export items to Bangladesh are cloth, plastic products, products made from bamboo, sedge and rattan, rubber, computer, electrics, wood, pottery and porcelain. Vietnam’s main import items from Bangladesh are pharmaceuticals, garments, leather & textile materials, fabric, machinery equipment and tools, electrical spare parts and fertilizers.

 - The cooperation between the two countries in other fields is still at low level, mainly focusing on experience sharing in infrastructure development, small and medium enterprises, aquaculture and environment protection. The two sides are trying to upgrade cooperation in economic and commercial fields and others namely agriculture and fisheries, industry, handicraft, finance and banking, culture, training and education, tourism and health in pace with good political relation.

In an attempt to eliminate epidemic levels of diarrhea and other infectious diseases associated with the use of surface waters, millions of shallow tube wells were drilled into the Ganges Delta alluvium in Bangladesh beginning in the early 1970s. This process reduced the rates of water-related infectious diseases but created a new public health dilemma: a surge in diseases such as skin ailments, diabetes mellitus, and various cancers, all resulting from habitual consumption of groundwater naturally high in arsenic.

A number of interventions have been proposed to help remedy the widespread arsenic exposure, but these interventions may only be bringing the catastrophic water situation in Bangladesh full circle. A new study by epidemiologists led by Kamalini Lokuge of the Australian National University suggests that, while these interventions will eventually result in less disease overall, they may initially cause a steady and considerable increase in diarrheal disease [EHP 112:1172–1177]. The study indicates that any large-scale transition away from household tube wells as a source of drinking water, without proper evaluation of the risks, may be premature.

In attempting to quantify the disease burden resulting both from arsenic exposure and from the potential side effects of widely available arsenic mitigation interventions, Lokuge and her colleagues used previously published information to estimate mortality rates and disability-adjusted life years (DALYs). Simply put, a DALY is a measure of the burden of disease; it reflects how much a person’s expectancy of healthy life is reduced by premature death as well as by disability caused by disease.

The Australian team used World Health Organization data to estimate the DALYs lost per year to arsenic-related effects including diabetes, ischemic heart disease, and a number of cancers. They calculated that arsenic exposure causes the loss of 174,174 DALYs per year in Bangladeshis exposed to arsenic concentrations above 50 micrograms per liter (μg/L), the nation’s cut-off point for safe drinking water.

trade in science

Then they calculated the DALYs that would be lost to infectious disease, provided Bangladeshis adopted certain arsenic mitigation options currently advocated by the federal Bangladesh Arsenic Mitigation and Water Supply Project and immediately accessible to the majority of the Bangladeshi population year-round. These include surface water supplies, uncontaminated community tube wells, and low-cost filtration systems. These alternative options carry the potential for increased water-related infections, compared with household tube wells.

Assuming that mitigation efforts were undertaken only in those areas where the arsenic concentration of drinking water is highest (100–300 μg/L), the team found that the long-range benefits of arsenic mitigation in terms of DALYs gained and deaths avoided would outweigh any initial decline in public health due to water-related infectious diseases. However, there would initially be a period of some years (the number of which is still unknown) before any benefit would accrue, and some additional years until the total benefit outweighed the cost of the water-related infectious disease increase. The investigators also conclude, moreover, that if the Bangladeshi people gradually stop using the alternative water sources and processes (for example, because of the inconvenience of maintenance or complacency as disease drops off), the initial DALY-based cost of water-related infectious diseases would remain while the long-range benefits would disappear.

The study demonstrates that implementation of any arsenic-mitigating intervention must take into account not only the strategy’s effectiveness in reducing arsenic exposure but also its safety in terms of water-related infectious diseases, the likelihood of population-wide compliance, and different exposure levels within the population. The investigators contend that such information is vital to developing appropriate policies toward resolving the drinking water crisis in Bangladesh.

Among the most renowned banks in Bangladesh, Citi Bank NA is such a name what plays an important role not only in the investment banking and trade operations but also in the overall industrial development in Bangladesh. After starting of their business in Bangladesh it has been running with its financial strength, technological strength, customized products and dynamic employees. Citi’s Cash Management Department and Trading department are working successfully with wide product line, maintaining good customers relationship and strong MIS (management information System). In Cash management department Citi basically works with the accounts opening, inward remittance, outward remittance, receivable management, foreign currency exchange etc. Trade department works with the LC opening of import and export, LC amendment, advising, import bill and export bill processing system. In case of local operation process of trade department it concentrate on some specific areas like- dealing with only their listed customer, providing LC authorization form as that bank is the authorized dealer of Bangladesh Bank, LC issuance and amendment local import and export LC amendment advising, NULC (Not under letter of credit), delivery order and shipping guarantee and import and export bill. From the beginning of LC opening to product shipment and receiving payment, every thing uploaded in the international server TCS Eserve, local server Trim, and Central image system. They maintain different data storage system and different files of same elements to make dual control of the system. Citi’s successful trade operation is made through its excellent customer relation service, Audit system and internal management information system with their dynamic employees. Though trade department has been working successfully from the starting but their insufficient employees, too much work load makes the existing employees demotivated. So I think overcoming these two problems Trading Department of Citi will be unbeatable in the banking sector.

Russia (the USSR at that time) and Bangladesh started developing friendly and mutually beneficial ties in the early 70s, from the very first days of Bangladesh as an independent state. Diplomatic relations between the USSR and Bangladesh were established on January 25, 1972. However the foundation for friendship between our countries had been laid even before that. The Soviet government raised its voice on the international arena against the atrocities being done to the people fighting for their freedom in 1971 and that was not simply a political decision but the manifestation of the deep and sincere sentiments of the Soviet people who were outspoken in their support for national-liberation movements all over the world. Immediately after the Liberation War the Soviet Union extended its helping hand to the Bangladeshi people and assisted the newly-born state in reestablishment and development of its economy. The USSR also provided its support to Bangladesh in acquiring international recognition and joining the UN.

trade in science

The cooperation between Russia and Bangladesh has always been comprehensive and has been developing in a wide range of spheres from politics to culture. Over the years Russia and Bangladesh have been holding close or similar positions on the numerous pressing issues of the international agenda, such as matters of global security, fight against terrorism, dialog between civilizations, mitigation of negative effects of climate change. Russia has always seen Bangladesh as a reliable partner in promoting principles of multipolar global architecture and fair international economic system.
The Africa Faith and Justice Network (AFJN) is a community of advocates for responsible U.S. relations with Africa. AFJN stresses issues of peacebuilding, human rights and social justice that tie directly into Catholic social teaching. AFJN works closely with Catholic missionary congregations and numerous Africa-focused coalitions of all persuasions to advocate for U.S. economic and political policies that will benefit Africa's poor majority, facilitate an end to armed conflict, establish equitable trade and investment with Africa and promote sustainable development.
  China’s June trade data on Tuesday stoked anxiety about the strength of domestic demand in the world’s second biggest economy as imports rose at only half the pace expected, signaling a need for Beijing to do more to bolster growth.

Officials singled out the debt crisis in the European Union – China’s biggest trading partner – as key to Beijing’s ability to meet its 10 percent target for trade growth this year, with softening sales to the EU in the first half of 2012 seeing the United States overtake it as China’s top export destination.

Exports are better than expected, but I don’t this means that we shouldn’t be concerned about exports,” Sun Junwei, Beijing-based China economist with HSBC, said.

Customs spokesman, Zheng Yuesheng, said as much in a news conference to release the data.

“China’s exports to the European Union actually fell in the first half. Our exports to Germany have been falling for four consecutive months and exports to France have been on decline for three straight months, too. Our exports to Italy have been falling for 10 straight months since September,” Zheng said.

“The United States replaced Europe to become our largest exporting market in the first half. However, U.S. economic recovery is not stable yet, and its demand for our goods has not returned to the level seen before.”

China’s exports to the EU fell 0.8 percent in the first half of 2012 to $163.1 billion, while to the United States they rose 13.6 percent to $165.3 billion. China imported $65.8 billion worth of U.S. goods in the first six months, up 7.9 percent.

Data on Monday showed China’s consumer and producer prices eased more than expected in June, signaling falling demand for goods from the manufacturing capital of the world and the likelihood of more policy moves to support the slowing economy.

The People’s Bank of China unexpectedly cut benchmark interest rates last week for the second time in a month in a bid to bolster growth. It has also lowered banks’ required reserves ratios (RRR) in three 50 basis point steps since November 2011, freeing an estimated 1.2 trillion yuan ($190 billion) to lend.

But that has not stopped economists and investors scaling back their growth calls for China’s economy this year and steadily pushing back the consensus view on when the growth cycle is set to bottom from Q1 to Q2 and, increasingly, into Q3.

Analysts polled by Reuters last week forecast China’s annual rate of GDP growth will have eased to 7.6 percent in the second quarter of the year versus 8.1 percent in Q1. GDP data is due on Friday.

It is likely to be the slowest quarter of growth in the country since the first three months of 2009, in the depths of the global financial crisis when world trade ground to a halt.

Ting Lu, China economist with Bank of America/Merrill Lynch in Hong Kong, wrote in a note to clients that June’s trade data confirmed that the current situation was not that bad.

overnment sent letters to three development finance institutions on Wednesday requesting them to form a consortium for arranging funding for the troubled Padma Bridge project, officials said.

Finance Minister AMA Muhith sent the letters to presidents of the Manila-based Asian Development Bank (ADB), the Japan International Cooperation Agency (JICA) and the Islamic Development Bank (IDB) requesting them to arrange a syndication loan for the dream project, a senior finance ministry official told the FE.
Bangladesh’s foreign exchange reserve has crossed US$10 billion mark again as the inflow of foreign currencies increased, officials said.
The foreign exchange reserve rose to US$10.02 billion on Wednesday from $9.93 billion of the previous working day, according to the central bank statistics.
The prices of detergent products of different companies are on the rise on the retail markets across the country as manufacturers are hiking the prices of the items frequently, retailers said.
Stocks bounced back on Wednesday, breaking a losing streak of seven days, on the back of a buying pressure from institutional investors.
Foreign Minister Dr Dipu Moni has urged the world community to reach a legally binding agreement on carbon emission cuts in order to face onslaughts of climate change.
She also sought a global consensus on four recognized tracks of action in global warming –adaptation, mitigation, financing and technology transfer.
Dipu Moni made the appeal while she was speaking at a function marking the 19th ministerial meeting of ASEAN Regional Forum (ARF) here on Wednesday.
Foreign Ministers from ASEAN countries and the major Asia- Pacific countries including China, Japan, Korea, Australia, New Zealand, France, UK, USA, Russia, Canada, India and Pakistan participated in the conference.
Terming Bangladesh as the most vulnerable countries to global climate change, Dipu Moni stressed upon the engagement of the developed countries for effective action on adaptation and mitigation projects in developing countries.
She said Bangladesh has been facing multiple challenges. Bangladesh Foreign Minister also had bilateral meetings with the Foreign Ministers of China and Myanmar on the side-line of ARF meeting, where she had discussed important bilateral issues and issues of common concerns.
They have discussed ways and means to strengthen the trade, commerce, investment and establishment of physical connectivity for the smooth movement of goods and people.

trade in science

International treading system

nternational trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political consequence has been on the rise in recent centuries.

Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the persistence of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders.

International trade is, in principle, not different from domestic trade as the motivation and the behavior of parties involved in a trade do not change fundamentally regardless of whether trade is across a border or not. The main distinction is that international trade is typically more costly than domestic trade. The reason is that a border typically imposes additional costs such as tariffs, time costs due to border delays and costs related with country differences such as language, the legal system or culture.

Another difference between domestic and international trade is that factors of construction such as capital and labor are typically more mobile within a country than across countries. Thus international trade is mostly restricted to trade in goods and services, and only to a lesser extent to trade in capital, labor or other factors of production. Trade in goods and army can serve as a substitute for trade in factors of production.

Instead of importing a factor of production, a country can import goods that make intensive use of that factor of construction and thus embody it. An example is the import of labor-intensive goods by the United States from China. Instead of importing Chinese labor, the United States imports goods that were produced with Chinese labor. One report in 2010 suggested that international trade was enlarged when a country hosted a network of immigrants, but the trade effect was weakened when the immigrants became assimilated into their new country.

International trade is also a branch of economics, which, together with international finance, forms the larger branch of international economics.

n 1953, Wassily Leontief published a study in which he tested the validity of the Heckscher-Ohlin theory^. The schoolwork showed that the U.S was more abundant in capital compared to other countries, therefore the U.S would export capital-intensive goods and import labor-intensive goods. Leontief found out that the U.S's exports were less capital intensive than its imports.

After the appearance of Leontief's paradox, many researchers tried to save the Heckscher-Ohlin theory, either by new methods of measurement, or either by new interpretations. Leamer emphasized that Leontief did not interpret H-O theory as it should be and claimed that with a right interpretation, the paradox did not occur. Brecher and Choudri found that, if Leamer was right, the American workers' burning up per head should be lower than the workers' world average consumption. Many textbook writers, including Krugman and Obstfeld and Bowen, Hollander and Viane, are negative about the validity of H-O model. After examining the long history of empirical research, Bowen, Hollander and Viane concluded: "Recent tests of the factor abundance theory [H-O theory and its developed form into many-commodity and many-factor case] that openly examine the H-O-V equations also indicate the rejection of the theory."

In the early 1900s a theory of international trade was developed by two Swedish economists, Eli Heckscher and Bertil Ohlin. This theory has later been known as the Heckscher-Ohlin model (H-O model). The results of the H-O model are that countries will produce and export goods that require resources (factors) which are relatively abundant and import goods that require resources which are in comparative short supply.

In the Heckscher-Ohlin model the pattern of international trade is determined by differences in factor endowments. It predicts that countries will export those goods that make intensive use of locally abundant factors and will import goods that make intensive use of factors that are locally scarce. Empirical problems with the H-O model, such as the Leontief paradox, were noted in empirical tests by Wassily Leontief who found that the United States tended to export labor-intensive goods despite having an abundance of capital.

The world trading system has undergone massive changes in the last sixteen years. The creation of the WTO and the development of enforceable international rules governing trade in services and intellectual property rights as well as trade in cargo vastly expanded the scope and effectiveness of the system. While bilateral negotiations have stalled, countries around the world have accelerated their involvement in regional trade agreements. This seminar will examine the implications of these developments, providing a careful analysis of the WTO, Uruguay Round Agreements, and of regional trade agreements. The course will also cover the techniques of negotiating trade agreements. The program is designed as a practical course that will assist trade officials in their work and help enterprises to take full advantage of the opportunities provided by multilateral and regional trade agreements. The course motivation be taught by former and present senior government trade officials and negotiators, leading academics, practitioners, and officials from multinational organizations, and will include site visits to U.S. government trade agencies and the United States Congress.

The Millennium Development Goals establish a global partnership to improve the lives of the world’s poor. This includes an open, rule-based, predictable, evenhanded trading and financial system as an important goal. Can trade be a tool for development? In many cases current trade rules do not contribute to sustainable development. In agriculture, most relevant to developing countries, trade is heavily distorted by artificially cheap world prices. Developing countries have few tools to protect themselves from these distortions. besides the current system of trade regulations is far from being a predictable, consistent system. Among the main sources of inconsistency are the many bilateral and regional agreements setting different trade rules for different countries. The number of these agreements has dramatically increased since the start of the World Trade Organisation.

international treading system

 

The major trading partners of the developed world – the United States and the European Union among others - negotiate bilateral trade agreements almost every week, while at the same time pretending to negotiate pro-development multilateral trade rules at the WTO as part of the Doha Development Round. Even for the current round of negotiations at the WTO – in particular in agriculture – but also other areas of negotiations such as services and industrial products - the proposed rules are mainly designed to further open markets, despite the damage this approach has wrought over the last 10 years. What is necessary is more detailed analysis and debate on which rules are needed to improve the lives of people in poor countries.

Global trade in agricultural produce is a mess. The mix of national policies and multilateral rules has contributed to plunging commodity prices. Farmers around the world – particularly family farmers - have been forced off their land because they can no longer make a living. Trade policy refugees from rural areas flood cities without enough jobs or housing. Every international institution, from the UN and its agencies to the WTO itself, blames the agricultural trade practices of rich countries for devastating rural communities in developing countries. Yet the same policies have damaged rural communities in developed countries too. Food security – people’s ability to feed themselves and their families with adequate and culturally appropriate food – has suffered everywhere.

The WTO is the focus of international efforts to solve this problem. No one thinks it can be the only solution, but efforts to reform agriculture in developed countries are firmly rooted there. The debate at the WTO has centred on three aspects of agricultural policy: domestic support, tariffs and export subsidies. Experts declare all three to be damaging to global agriculture and trade rules place restrictions them. But current WTO talks to tighten the rules are in deadlock. The proposals now on the table reflect the domestic politics of WTO members, especially developed countries, and the export interests of multinational agrifood firms which trade in commodities and processed food. WTO negotiators have ignored the economic and social needs of developing countries and poor people. Even if governments at the WTO were miraculously to eliminate all the trade-distorting elements of agricultural policy, world markets would not magically start to improve the welfare of developing countries. WTO efforts fail to target the biggest factor distorting markets, namely dumping, the export of products at prices below their production cost. Worse, the present WTO agricultural agreement, and proposed changes, fail to incorporate binding commitments to comply with fundamental goals such as upholding the human right to food and establishing a resilient rural sector as a basis for economic development. The WTO Agreement on Agriculture has failed rural communities around the world. It also has enhanced environmental degradation by promoting a more industrialised model of agriculture characterised by monoculture, intensive use of herbicides and pesticides, large units for breeding livestock, and heavy dependence on oil needed to ship and transport goods. The successor of the current Agreement on Agriculture, now under negotiation, is set to perpetuate this failure.

A serious attempt to achieve the MDGs would require a change in the overall direction of policies on agriculture, food and trade. International trade rules must be based on an understanding of the root causes and problems in agriculture and trade. International trade rules must include a ban on dumping and new criteria for subsidies, curtailing all subsidies supporting excess production for export. Inventory management needs to be introduced for key crops that are deliberately traded with the sole aim of increasing the price of commodities. Rules are also required to regulate market concentration and establish the right of countries to protect their agriculture from dumped imports or import surges that would harm their own agricultural production.

To achieve this the negotiation process must become more democratic, it being almost impossible to reach a good agreement through bad process. WTO negotiations go on allowing only a handful of countries to reach an agreement, leaving the full governing body only a short time to consent to a done deal. The Doha Round is typical of this approach.

For the sake of millions of people we cannot allow another bad agreement. It is high time for an objective assessment of whether WTO rules have benefited people, or merely boosted cross-border trade statistics. It is time to frame policies that discipline all sources of market distortion and to measure success against the imperative of meeting internationally agreed development benchmarks. Only such an agreement will help achieve the MDGs and reduce poverty.

The Millennium Development Goals establish a global partnership to improve the lives of the world’s poor. This includes an open, rule-based, predictable, non-discriminatory trading and financial system as an essential goal. Can trade be a tool for development? In many cases current trade rules do not contribute to sustainable development. In agriculture, most relevant to developing countries, trade is heavily distorted by artificially cheap world prices. Developing countries have few tools to protect themselves from these distortions. Furthermore the current system of trade rules is far from being a predictable, consistent system. Among the main sources of inconsistency are the many bilateral and regional agreements setting different trade rules for different countries. The number of these agreements has dramatically increased since the start of the World Trade Organisation.
By Alexandra Strickner and Sophia Murphy, Institute for Agriculture and Trade Policy – Geneva Office

The major trading partners of the developed world – the United States and the European Union among others - negotiate bilateral trade agreements almost every week, while at the same time pretending to negotiate pro-development multilateral trade rules at the WTO as part of the Doha Development Round. Even for the current round of negotiations at the WTO – in particular in agriculture – but also other areas of negotiations such as services and industrial products - the proposed rules are mainly designed to further open markets, despite the damage this approach has wrought over the last 10 years. What is necessary is more detailed analysis and debate on which rules are needed to improve the lives of people in poor countries.

Global trade in agricultural produce is a mess. The mix of national policies and multilateral rules has contributed to plunging commodity prices. Farmers around the world – particularly family farmers - have been forced off their land because they can no longer make a living. Trade policy refugees from rural areas flood cities without enough jobs or housing. Every international institution, from the UN and its agencies to the WTO itself, blames the agricultural trade practices of rich countries for devastating rural communities in developing countries. Yet the same policies have damaged rural communities in developed countries too. Food security – people’s ability to feed themselves and their families with adequate and culturally appropriate food – has suffered everywhere.

international trade

The WTO is the focus of international efforts to solve this problem. No one thinks it can be the only solution, but efforts to reform agriculture in developed countries are firmly rooted there. The debate at the WTO has centred on three aspects of agricultural policy: domestic support, tariffs and export subsidies. Experts declare all three to be damaging to global agriculture and trade rules place restrictions them. But current WTO talks to tighten the rules are in deadlock. The proposals now on the table reflect the domestic politics of WTO members, especially developed countries, and the export interests of multinational agrifood firms which trade in commodities and processed food. WTO negotiators have ignored the economic and social needs of developing countries and poor people. Even if governments at the WTO were miraculously to eliminate all the trade-distorting elements of agricultural policy, world markets would not magically start to improve the welfare of developing countries. WTO efforts fail to target the biggest factor distorting markets, namely dumping, the export of products at prices below their production cost. Worse, the present WTO agricultural agreement, and proposed changes, fail to incorporate binding commitments to comply with fundamental goals such as upholding the human right to food and establishing a resilient rural sector as a basis for economic development. The WTO Agreement on Agriculture has failed rural communities around the world. It also has enhanced environmental degradation by promoting a more industrialised model of agriculture characterised by monoculture, intensive use of herbicides and pesticides, large units for breeding livestock, and heavy dependence on oil needed to ship and transport goods. The successor of the current Agreement on Agriculture, now under negotiation, is set to perpetuate this failure.

A serious attempt to achieve the MDGs would require a change in the overall direction of policies on agriculture, food and trade. International trade rules must be based on an understanding of the root causes and problems in agriculture and trade. International trade rules must include a ban on dumping and new criteria for subsidies, curtailing all subsidies supporting excess production for export. Inventory management needs to be introduced for key crops that are deliberately traded with the sole aim of increasing the price of commodities. Rules are also required to regulate market concentration and establish the right of countries to protect their agriculture from dumped imports or import surges that would harm their own agricultural

The Doha Round is the latest round of trade negotiations among the WTO membership. Its aim is to achieve major reform of the international trading system through the introduction of lower trade barriers and revised trade rules. The work programme covers about 20 areas of trade. The Round is also known semi-officially as the Doha Development Agenda as a fundamental objective is to improve the trading prospects of developing countries.

The Round was officially launched at the WTO’s Fourth Ministerial Conference in Doha, Qatar, in November 2001. The Doha Ministerial Declaration provided the mandate for the negotiations, including on agriculture, services and an intellectual property topic, which began earlier.

In Doha, ministers also approved a decision on how to address the problems developing countries face in implementing the current WTO agreements.

production.This article addresses an important and complex subject relating to the link between international law and economic development. There is broad agreement that trade liberalization and participation in foreign markets play an important role in economic development. Countries in Sub-Saharan Africa (SSA) have generally pursued a liberalization route over the past two decades, but their economic performance has been deeply disappointing. In this article, we look at seven countries in the Horn of Africa and examine, from legal and institutional perspectives, the central question of why these countries have failed to translate their comparative advantage, particularly in the livestock sector, into meaningful trade-led economic growth. In order to answer this question, we have reviewed the relevant legal and policy instruments and the literature, visited five of the seven countries, and interviewed different players in the livestock value chain. Analysis of the evidence reveals that the main impediments to trade relate to rising sanitary import requirements in foreign markets and weak institutional capacity within the Horn. The limited technical and financial resources available to these countries also reduce their capacity to meet these standards. Meaningful institutional change requires substantial involvement of local actors and it takes place incrementally and over the long-term. International law can play a role in this process by promoting rule of law and tackling corruption, facilitating capacity building, and encouraging regional integration.

To achieve this the negotiation process must become more democratic, it being almost impossible to reach a good agreement through bad process. WTO negotiations go on allowing only a handful of countries to reach an agreement, leaving the full governing body only a short time to consent to a done deal. The Doha Round is typical of this approach.

For the sake of millions of people we cannot allow another bad agreement. It is high time for an objective assessment of whether WTO rules have benefited people, or merely boosted cross-border trade statistics. It is time to frame policies that discipline all sources of market distortion and to measure success against the imperative of meeting internationally agreed development benchmarks. Only such an agreement will help achieve the MDGs and reduce poverty.

The news of Warren Buffet making his biggest bets on the stock market in 2011 this year on August 8th when the S&P 500 Index suffered its most recent plunge also helped in lifting the market spirits worldwide. Warren Buffet, the CEO of Berkshire Hathaway Inc. and one of the famous living investors in the world exact words were, “I like buying on sale.”

Businessweek.com reported that Goldman Sachs Group Inc. said Google’s $12.5 billion purchase of Motorola Mobility may be positive for Asian Android-phone makers as it helps reduce litigation risk. The stocks worldwide are showing signs of recovery after the most recent stock market turmoil that happened on the downgrading of the US debt rating from AAA to AA+ some days back. This downgrading had raised concerns in the global markets about the weakness of US economic recovery.

This volatility in the stock market is confusing a lot of traders and investors around the world. Gold prices are reaching unprecedented heights as most of these nervous traders and investors are running towards the supposed safe haven of gold. Many analysts are of the view that the global economy is in serious trouble. But the most important question is should that change the way you trade or invest?

Chuck Hughes is a stock trader who has been trading for a number of years now. Chuck used to work as an airline pilot when he started stock and options trading in his spare time instead of playing golf. But he is not some ordinary stock trader. He won not one but seven live international trading championships with annual gains as high as 315% over the years. However, the most interesting thing is that he became seven-time international trading champion by remaining agnostic on a host of issues: Whether the stock market is going to go up or whether it is going to go down, whether gold is overpriced or under priced, whether the dollar is in trouble or is going to recover.  This allows Chuck to ignore 99% of what is being written about the markets by analysts and so-called experts. Instead, he focuses on the only thing that matters, and what matters is CASH FLOW – where the money is going!

international trade