WadeTradeNews

Welcome to the February edition of Wade Trade News - Wade World Trade's own monthly bulletin bringing you news on developments and opportunities in international trade that are worthy of your attention. Read on now for important news about trading with disaster-hit Sri Lanka, opportunities in Iran, Africa and Canada and details of a few more websites you'll find handy.

Business and political leaders in tsunami-hit Sri Lanka have appealed to trading partners to develop their trading links with the country, pointing out that trade is not only vital for reconstruction, but reconstruction creates substantial trade opportunities too. President Chandrika Bandaranaike Kumaratunga recently announced the Action Plan for Rebuilding the Nation, with an initial budget of US$3,484 million. The plan will be implemented in three phases - emergency repairs, rehabilitation and reconstruction, and improvement and modernisation. As well as projects to provide new infrastructure, 12 large towns, 20 medium towns and 30 small towns along the tsunami-affected coastline are to be totally reconstructed.

In another announcement, visiting US Congressional Delegation Senator John Corzine said most US companies involved in the textile industry will continue their contracts with Sri Lankan suppliers for the immediate future, despite the phasing out of the Multi Fibre Agreement (MFA) this month.

Technical difficulties mean that some Sri Lankan websites are currently out of service. However, the Government Information Department site at www.news.lk is providing up-to-the-minute information. The Ministry of Trade, Commerce and Consumer Affairs also have a site at www.commerce.gov.lk.

The United Nations Conference on Trade and Development (www.unctad.org) says that developing country exports are set to massively increase in future. A recent report claims liberalisation of world trade in industrial products envisaged under the current World Trade Organisation (www.wto.org) talks could potentially increase developing country exports by US$175 billion!

UNCTAD says the proposals, if implemented, could result in large trade gains in sectors such as textiles and clothing, although there could be losses in sectors such as motor vehicles, electronics and metals. It added that, since the proposals could cause a fall in Government revenues from tariffs of 41%, measures need to be introduced to assist developing countries with adjustment.

Political problems and cultural differences mean Iran is not often thought of as a trading partner. However, recent figures show the country is becoming a more important player in world trade, and not just in oil exports. According to the Iran Customs Administration, Iran exported US$5.09 billion of non-oil goods in the last nine months - a 10% rise on the previous year. This figure includes over US$3 billion worth of industrial goods, US$963 million of agricultural products and US$409,000 of carpets and handicrafts. Iran imported US$25.6 billion of goods during the same period, a 32% rise. Industrial, mechanical, textile and agricultural machinery, ironware, electric instruments, chemical and medical products were the main imports.

Iranian trading websites are scarce but the US-based Iranian Trade Association has a useful site at www.iraniantrade.org. Note that many countries impose licensing controls on trade with Iran.

South Africa's Exports To USA Surge 61%
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South Africa's trade with the USA shows a 61.1% surge in exports, according to the South African Chamber of Business or SACOB (www.sacob.co.za). Exports amounted to US$526.6 million for the final accounting month of 2004 - the sixth highest figure ever - with exports for the full year expected to top US5.3 billion.

Experts suggest the surge is not solely due to the weakness of the South African Rand which makes the country a more attractive source of goods, but also due to unprecedented demand for exports. South Africa-USA exports are dominated by precious metals and diamonds, amounting to an estimated US$2.35 billion for the year, while iron and steel exports increased 119%. Exports of vehicles, parts and accessories are one of the few areas to have decreased, by 23%.

There are lots more opportunities to sell Africa's goods to China with the news that China is now giving tariff exemption for certain commodities from 25 African countries. The policy covers 190 items from Benin, Burundi, Cape Verde, Central African Republic, Comoros, Democratic Republic of Congo, Djibouti, Eritrea, Ethiopia, Guinea, Guinea Bissau, Lesotho, Libya, Madagascar, Mali, Mauritania, Mozambique, Niger, Rwanda, Sierra Leone, Sudan, Tanzania, Togo, Uganda and Zambia. The policy, which has been endorsed by Chinese Premier Wen Jiabao, was announced by China Ministry of Commerce (www.mofcom.gov.cn, multi-languages) spokesman Chong Quan who said 'This is an important commitment, made to help African countries to develop their economies. We believe trade cooperation between China and Africa will score new growth through our joint efforts.'.

Canada's economy will grow steadily over the next year, by around 2.9%, as strong domestic spending compensates for a weakening export sector - according to a quarterly Reuters poll. However, it presents a mixed picture for international traders. According to Sal Guatieri, senior economist at Bank of Montreal 'It's a tug-of-war between domestic demand and exports. Import demand should be well supported by low interest rates, but exports will be constrained by the strong Canadian dollar.'. The Canadian dollar has risen over 20% in two years, but only recently has it begun to start affecting trade.

International Trade Canada is a good starting point for trade information on Canada - visit www.itcan-cican.gc.ca. There's also the Canadian Trade Commissioner service at www.infoexport.gc.ca.

Everyone has heard of the Euro, the single European currency, but do you know how future plans for it will affect your business? It's important to keep informed, because it can affect your deals, contracts and prices when trading both within and outside the EU.

Currently the Euro is used by only 12 of the 25 EU member states - Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain. Denmark and the UK are uncommitted. Sweden is unlikely to even consider adopting it until 2012. The ten member states who joined in 2004 (Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovak Republic and Slovenia) are legally committed to joining the Euro as soon as their economies meet the criteria.

2005 marks Wade World Trade's 60th year in the import-export business, so there's no one more experienced to help you make a success of world trade. Don't forget that the leads you receive in this bulletin are just a small selection of the information and help Wade World Trade can offer. Our products and services include newly updated courses, manuals, advice, information, online resources and worldwide trade and business contacts - more or less everything you need to start and succeed in import-export.