International Business Opportunities

Further reforms to various service industries, such as the telecom industry, railway industry and civil aviation industry are expected to be introduced in China, the National Development and Reform Commission announced.
They will lift restrictions on market access to promote competition and the reorganization of state-owned assets to diversify the source of investment.[…]

Some departments will make a greater effort to develop private enterprises in the service industry, and increase the proportion of private business in the service industry. […]

Henceforth, all service industries without explicit bans imposed by laws and regulations will be open to all social capital; all industries open to overseas investment will be open to domestic investment; and all industries open to local enterprises will be open to foreign investments.
Read more…

Beginning April 15, 2007, Romania will reintroduce import VAT at customs for imports from non-EU countries for a fixed period.

The Romanian government said the measure will not affect those importers who brought in significant imports and met the criteria to be granted a VAT-postponing certificate in 2006.
The decision was made as the National Agency of Fiscal Administration found that fiscal evasion was on the increase since the country suspended import VAT for non-EU countries in January 2007. […]

According to the Romanian government there is a risk that VAT-exempted goods supposed to be delivered to a EU country do not reach their destination but are placed on the black economy.

15 out of the 27 EU countries currently apply the system of import VAT at customs. Out of the ten countries that acceded to the EU in 2004, Estonia, Czech Republic and Lithuania are currently applying the simplified payment system. Hungary used the simplified VAT payment system at the accession date, but later suspended it for the same reasons Romania did. (Source)

A final deal on Russia’s accession to the World Trade Organisation is possible this year and the European Union hopes to wrap up outstanding issues quickly, Trade Commissioner Peter Mandelson said on Tuesday.

Mandelson said some problems remained to be cleared up but none were serious enough to keep Russia, the largest non-member, out of the trade club.
Russia has been negotiating to join the 150-member WTO for 14 years. After reaching a bilateral WTO accord with the United States last November the talks have entered their final, multilateral stage […]
But a Russian ban on imports of meat from EU-member Poland has cast a shadow over broader EU-Russia relations.

“It’s the kind of trade dispute we could do without,” said the commissioner.
Brussels also wants to revisit aspects of its own bilateral WTO accord with Russia reached in 2004.
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In the effort to narrow the country’s record trade surplus and help manufacturers to bring in components and materials, China will ease import rules for 338 types of products.

Starting April 1, Chinese companies won’t need licenses to import hot-rolled and cold-rolled steel, plastics, machinery, electronics and other products, according to a statement China’s commerce ministry.
Commerce Minister Bo Xilai is seeking to make it easier to import to the world’s fourth-largest economy to forestall trade disputes that may arise from China’s record trade surplus.
The gap may swell to $257 billion next year from a record $177.5 billion in 2006, according to the Asian Development Bank. Read more…

Even without offering it the prospect of full membership, European Union is offering Ukraine to negotiate a free trade pact, in the effort to build closer political and economic ties with this country […]

Negotiations on a free trade pact as part of a broad so-called enhanced agreement between Brussels and Kyiv is conditional on Ukraine joining the World Trade Organization.
The enhanced agreement does not offer the prospect of future EU membership. […]
Ukrainian Prime Minister Viktor Yanukovych said:
“A free trade area established after Ukraine’s accession to the WTO; this is the nearest task that we should implement”. Read more…

Thailand’s cabinet has given its nod for a free trade pact with Japan which large Thai industries expect will help boost exports by 30 percent. […]

The spokesman also rejected rumors that the agreement is a trade off for easier access to Japanese government loans for three planned sky train extensions in Bangkok’s urban areas, the report said.

[…] Thai industries officials said benefits from the agreement will include an anticipated 20 percent increase in exports of frozen seafood, while shoe exporters, who are yet to gain a foothold in the Japanese market, will benefit from import duty cuts of 20 percent annually for five years after which there will be no duty.
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Japan and Chile have signed a free trade deal which will lower tariffs on a range of goods including cars, copper, fish, tea and wine.

The agreement, which is the first of its kind between Japan and a South American country, will reduce tariffs on the majority of goods traded by the two countries.
But it will not extend to farm products such as rice, which Japan is keen to protect.
Read more…

China’s parliament adopted the property rights law, Friday morning at the closing ceremony of its annual session in the Great Hall of the People in Beijing.

The 247-article law, which is due to come into effect as of October 1, 2007, stipulates that “the property of the state, the collective, the individual and other obligees is protected by law, and no units or individuals may infringe upon it“.

This is the first time that equal protection to state and private properties has been enshrined in a Chinese law, which analysts say marks a significant step in the country’s efforts to further economic reforms and boost social harmony. (full story)

With 2,826 votes for and 37 against, and 22 abstentions, China’s parliament, Friday morning, adopted the enterprise income tax law.

The law is due to take effect on January 1, 2008.
Experts say the law marks an adjustment of China’s policies toward foreign investment in the current times.

The law, which sets unified income tax rate for domestic and foreign companies at 25 percent, came after years of criticism that the original dual income tax mechanism is unfair to domestic enterprises.

Currently, the actual average income tax burden on Chinese companies is 25 percent, while that on foreign enterprises is 15 percent. (full story)

Demand for private health insurance products has risen significantly in the Middle East since the start of 2007, as companies and individuals look to protect their health against a backdrop of a rising level of uncertainty about future provision of coverage.

Nexus has signed an agreement with leading international healthcare brand Royal & SunAlliance, adding a range of health insurance products to their panel.

Mahmoud Nodjoumi, owner and CEO, Nexus. says:

“Our clients have registered strong interest in healthcare products, particularly those families who are self-funding their medical expenses.” (full story)