International Business Opportunities

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.
(
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.
(source)

The European Commission has today welcomed the formal adoption by European Member States of negotiating mandates for a new generation of Free Trade Agreements with India, South Korea and ASEAN.

New independent research released by the European Commission today suggests that the agreements could add more than 40 billion euros to EU exports annually and provide wide new trade opportunities for all sides.

The European Commission, which will negotiate on behalf of EU Member states, expects to launch negotiations in the months to come.
(source: europa.eu)

Japan and the Association of Southeast Asian Nations (ASEAN) agreed on Wednesday to work together to reach a free trade agreement which would liberalize more than 90 percent of bilateral trade by value.

The prospective free trade agreement, which will be Japan’s first such deal with a regional bloc, is expected to be signed early next month, when economic and trade affairs ministers from Japan and ASEAN members meet in Brunei, Japanese officials were quoted as saying. (Source)

A report released yesterday over the attractiveness to investment of cellular communications markets in different countries, shows a high potential for growth in Asia and in the CIS countries (former Soviet Union).

The ten countries with the highest levels of attractiveness to investment include seven countries in South and Southeast Asia (Bangladesh, China, India, Indonesia, The Philippines, Sri Lanka, and Pakistan) and three from the CIS (Russia in 5th place, Ukraine in 7th, and Uzbekistan in 9th). […]

Central and Eastern Europe have lost much of their investment potential over the last two years as they have become increasingly saturated in terms of cellular network coverage. So European countries are offering increasingly few opportunities for investors, as the U.S. and Canada are still considered good targets for investment.

The report was carried out by a group of experts from the London Business School, Cambridge University, and the Russian School of Economics. (source: kommersant)

An investigative panel will almost certainly be established to examine India’s compliance with international trade rules at a meeting later this month of the WTO’s dispute settlement body, officials said.

India has introduced several measures “in the form of duties, which have continued to restrict the access of EU wines and spirits to the Indian market,” Raimund Raith, trade negotiator for the 27-nation European Union, told the WTO’s dispute settlement body. […]

The United States, which has also filed a complaint with the WTO about Indian treatment of American wine and spirits, said it shared the EU’s concerns.The U.S. is still in consultations with India, but can ask for a formal investigation as early as May if the two sides fail to reach an agreement. […]

India’s basic import duties on wine are 100 percent, while the tariff on spirits is at 150 percent, both within WTO limits. However, various government surcharges take the tariffs up to levels reaching as high as 540 percent depending on the Indian state. (Source).

In the effort to attract more overseas investors and to boost trade, India announced a new plan to set up Special Economic Zones (SEZ).

Venugopal Dhoot, president of the Associated Chambers of Commerce and Industry said more of such economic areas would accelerate economic activities for increased production and exports.
Indian government also said in this new plan, land would no longer be acquired by state governments, but by developers.

According to this plan, a total of 83 SEZs. will be created, a further 162 such areas which already have preliminary permission would be looked into and another potential 140 new zones would also be examined. (source: BBC)

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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Incorporation of a company in India is easier, after ministry has simplified the process and brought it online.

It has launched a website, www.mac.gov.in, to help new firms register online. It has also recast exit norms to make it easier for out-of-business firms without any financial liability to get their names struck off the RoC list.

That will eliminate cumbersome forms, long queues, stupid queries and making several rounds of the office of Registrar of Companies. (source IndiaTimes.com)

After a 11-year long process, it seems Vietnam is to join to WTO.

Erik Glenne, chairman of the ruling General Council of the 149-nation WTO, said: “World Trade Organisation negotiators aim to give Vietnam a green light to join the global body in early October”

Glenne, who also steers Vietnam’s membership talks, told a negotiating session that he aimed to secure a final deal in time for the Council session scheduled for 10-11 October.
Glenne also said that Vietnam needed to come up with more information to show how it would comply, in areas ranging from tariffs and import quotas to farm subsidies and services market liberalisation. (source)

Vietnam hopes to join the WTO before Hanoi hosts an APEC summit in November which US President George W. Bush is expected to attend.