International Business Opportunities

Russia’s Prime Minister Mikhail Fradkov said Thursday that major Russian insurance companies could be taken over by foreign investors following the country’s accession to the World Trade Organization (WTO).[…]
Only three to five Russian insurance companies may be capable of competing with foreign insurers following Russia’s accession to the WTO, he said.[…]

Currently, foreign insurers cannot set up direct branches operating under foreign law in Russia and are only allowed to set up subsidiaries that comply with Russian legislation. However, last year Russia agreed to allow foreign insurers set up branches in Russia nine years after it accedes to the WTO. The agreement was part of a landmark WTO deal with the U.S.

At present, foreign investors are allowed to hold a combined stake of up to 35% in Russia’s insurance industry. In November 2006, the Economic Development and Trade Ministry said that Russia would be able to increase the limit to 50% after its accession to the WTO.
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US officials have written to nine Indian firms based in the US, asking them to account for their workforce, and explain how the visas were granted.
The US authorities are concerned that the Indian companies are trying to avoid hiring skilled American workers.

US authorities grant a total of 65,000 temporary working visas every year. (see H-1B Visa Now Just a Critical Tool for Indian Outsourcing Vendors)

However, in recent months, the US has become concerned that many companies are bringing over lower-paid Indian workers at the expense of the more expensive Americans.
In the past few years, the US has been urging India to open up its own economy to American businesses.
Many US companies have come to India, lured by the fortunes of firms that have flourished because of the strength of the Indian economy.
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source: BBC)

Senior trade representatives of India and China today forecast that the bilateral trade volume will surge from the current $25 billion to $40 billion by 2009, a full year ahead of the target set by the two governments.
During the first quarter (Jan-Mar) of this year, bilateral trade has touched USD 8.2 billion, soaring by 58 per cent, Vice President of the China Council for the Promotion of International Trade (CCPIT), Wang Jinzhen said. […]

Member of Indian Parliament and Managing Director of Videocon Industries Ltd., Rajkumar Dhoot, heading an ASSOCHAM delegation to China, noted that the growth in Chinese exports to India was among the fastest for the world’s third largest trading power.
However, he noted that Chinese investment in India was very low, only accounting for 30 per cent of all foreign direct investment approved by the country. This must improve, Dhoot said, adding the business communities of the two countries should look into the business opportunities more seriously.
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The European Union will eliminate most of the remaining customs charges on imports from 78 former colonies in Africa, the Caribbean and Pacific in an effort to fuel the commodity-dependent economies.

The EU’s trade arrangements with the group of developing countries expire on Jan. 1. Today’s decision to increase access to the European market, backed by ministers meeting in Brussels, also ends limits on the volume of exports to the 27-nation bloc. […]

EU imports of commodities from 49 of the world’s poorest countries, excluding sugar, bananas and rice, have been tariff- free and unlimited in volume since 2001. That agreement excluded 37 ACP countries.
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The Spanish Parliament has passed a law aimed at controlling property speculators whom the government blames for spiralling house prices.

Official documents will list everybody who has owned any piece of land in the five years before its development.[…]The government hopes that reducing the number of speculators and the degree of corruption will bring down prices. […]

The new law also reserves 30% of future property development for social housing and allows for planning decisions taken over the past two years to be reviewed under certain circumstances.
It will come into force on 1 July. (Source: BBC)

United Arab Emirates and Netherlands signed yesterday in Abu Dhabi a double taxation avoidance agreement.

The agreement means that companies will pay tax only in their home country, avoiding double taxation. Tax waiver agreements exempt countries from paying tax on income and capital in both countries.

The minister said the pact would enhance bilateral economic, commercial and tourism relations and would accelerate the flow of investments into the two countries.
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Australia is to admit more skilled migrant workers to help ease its labour shortage while cracking down on firms which mistreat foreign staff.

An extra 5,000 places for skilled migrants were unveiled by ministers as part of the government’s annual budget.
New powers are also being sought to fine firms which underpay workers or place them in unskilled jobs.
[…]workers will have to prove they can speak reasonable English as well as take a new citizenship test coming into force later this year.

To help employers recruit staff quickly, companies which comply scrupulously with the migrant visa system will have their applications fast-tracked.

The European Union has halved its import duty on nonalloyed raw aluminium to 3% from 6% in a bid to boost deliveries from Russia.

The EU said in an official statement that the decision was reached on Monday.
It said the partial suspension of the tariff would come into force “three days following its publication in the EU Official Journal, in the coming days.” The duty “will be reviewed in three years in order to take into account possible future changes in the aluminium market situation,” the statement said.
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A series of free trade talks between South Korea and the European Union are taking place in Seoul from 7 to 11 May.

[…]EU Trade Commissioner Peter Mandelson and South Korean trade minister Kim Hyun-Chong both called for rapid progress in free trade negotiations. Officials hope to conclude negotiations within a year. […]The European Union is South Korea’s biggest investor, injecting nearly $5bn into the country last year, Seoul’s foreign ministry said.
(source: BBC)

A EU-Gulf Cooperation Council (GCC) summit will beginon Tuesday May 8, in Riyadh, Saudi Arabia.

The summit could lead to a free trade deal between EU and the GCC - which includes Saudi Arabia, Bahrein, United Arab Emirates, Kuwait, Omand and Qatar.

The two blocs had started to negotiate a free trade agreement in 2002, however they failed to agree on a commons set of rules regarding investments and market access.