WTO drastically cuts global trade forecast
GENEVA (AFP) : The World Trade Organization Tuesday lowered its global trade forecast, warning that anti-globalisation rhetoric and Brexit were pushing trade growth to its slowest pace since the financial crisis. The warning comes as talks on a landmark free trade deal between the European Union and the United States faces stiff opposition and Britain's EU exit causes jitters. The WTO said that global trade was now estimated to expand by just 1.7 percent this year, compared to its April projection of 2.8 percent. The new figure is also a far cry from a projection a year ago that trade would swell by 3.9 percent this year. Describing it as "wake-up call", the Geneva-based global trade body said growth had fallen to its slowest pace in around seven years, when the global financial crisis hit. "With expected global GDP growth of 2.2 percent in 2016, this year would mark the slowest pace of trade and output growth since the financial crisis of 2009," the trade body said in a statement.
Looking ahead, the WTO said several issues, including Brexit's possible impact, had now cast a shadow and it had revised down its 2017 forecast.
Trade is now expected to grow between 1.8-3.1 percent, down from the previously anticipated 3.6 percent, said the WTO, which sets the rules of global commerce. Also clouding the outlook, the WTO said, is "the possibility that growing anti-trade rhetoric will increasingly be reflected in trade policy" as well as financial volatility due to monetary policy changes in developed countries.
"The recent run of weak trade and economic, growth suggests the need for a better understanding of changing global economic relationships," it said.
It warned that "creeping protectionism", coupled with lacking trade liberalisation and perhaps the growing role of the digital economy and e-commerce might help explain the recent declining ratio of trade growth to GDP growth.
Last week, the Paris-based Organisation for Economic Cooperation and Development said Britain -- the world's fifth-biggest economy -- was poised to take a major hit next year from its decision to leave the EU.
The WTO said the main impact of the shock vote in June had been on the value of the pound and noted that it had not sparked an immediate economic downturn.
But, it added: "Effects over the longer term remain to be seen. Economic forecasts for the UK in 2017 range from fairly optimistic to quite pessimistic."
- 'Anti-globalisation sentiment' -
The WTO said the downgrade followed a sharper-than-expected decline in merchandise trade volumes in the first quarter, and a smaller-than-expected rebound in the second quarter.
The contraction, it said, was driven especially by slowing growth in developing economies like China and Brazil.
But, said the WTO, North America, which showed the strongest import growth of any region between 2014 and 2015, was also hit by deceleration.
"The dramatic slowing of trade growth is serious and should serve as a wake-up call," WTO director general Robert Azevedo warned in the statement.
"It is particularly concerning in the context of growing anti-globalisation sentiment," he added, cautioning against this translating into "misguided policies".
Azevedo also highlighted the negative impact of inequality.
"While the benefits of trade are clear, it is also clear that they need to be shared more widely," he insisted.
"We should seek to build a more inclusive trading system that goes further to support poorer countries to take part and benefit, as well as entrepreneurs, small companies, and marginalised groups in all economies," he said.
In a separate report released Tuesday on slowing global commerce, the International Monetary Fund also stressed the need to help workers affected by major trade shifts.
"To reinforce popular support for trade integration and to preserve its benefits, policy makers should address the concerns of workers and industries that have trouble adjusting to greater overseas competition and take steps to ease their transition," the IMF said.
"Such policies include sufficiently broad social safety nets, as well programs to support retraining, skill building, and occupational and geographic mobility."
CCP issues show-cause notice to
Shainal Foods
ISLAMABAD (Staff Reporter): The Competition Commission of Pakistan (CCP) has issued a show-cause notice, under Section 30 of the Competition Act, 2010, to M/s Shainal Al-Syed Foods for prima facie imitating the branding of National Foods Limited, in violation of Section 10 of the Competition Act. The CCP conducted an enquiry after receiving complaint from National Foods Limited alleging that Shainal Foods was preparing, packing, marketing, supplying and selling various food products using a trademark and logo imitated from National Foods. The company also informed that the colour scheme and design of the packaging of Shainal Foods' products was similar to that of the packaging of National Foods' products, which could mislead the consumers. The enquiry report concluded that prima facie Shainal Foods has resorted to the fraudulent use of logo, packaging, colour scheme, and design of National Food's products, thus potentially harming the business interest of National Foods as well as misleading the consumers.
CCP has directed Shainal Foods to reply in writing to the show cause notice within 14 days.
CCP is empowered under the Competition Act to inter alia prevent deceptive marketing practices to protect consumers and businesses from anti-competitive activities.
PFC delegation to visit Turkey
LAHORE (Staff Reporter): The eleven-member delegation of Pakistan Furniture Council (PFC) will visit Turkey for one week next month to explore new avenues of prospective investors by sharing vision, expertise for formulation of future policies, economic studies, sectoral and project specific reports besides promotional efforts. According to PFC press release issued here Tuesday, chief executive Mian Kashif Ashfaq said the delegation will mainly visit “Bursa”, a hub of furniture industry in Turkey, and have thorough in-depth result oriented discussions with their counterparts. The leading furniture outlets and factories as well as workshops will also be visited for equipping with latest trends and modern designs. PFC is focusing on marketing activities in key markets (the United States, Japan, the European Union, and the Gulf). He accentuated that the establishment of joint ventures with Turkey for the provision of required machinery can bolster the quality of our furniture products and brings them at par with international standards.
PFC has invited the foreign furniture buyers to visit 3-day international furniture exhibition in Pakistan starting from Nov 25 next at Expo Centre, Lahore. Mian Kashif added that participation in an international show should be deemed imperative for our furniture exports.
NESCAFÉ to celebrate Coffee Day
LAHORE (Staff Reporter): NESCAFÉ, the globally loved coffee brand, is creating a global 24-hour Facebook live stream by calling on people across the country to join a global project to celebrate International Coffee Day 2016 (1 October). Called ‘Good Morning World’, the movement invites members of the public to upload a few seconds’ video of themselves enjoying their morning coffee, selfie-style, in the run up to the date. These will create an international ‘mug chain’ broadcast throughout International Coffee Day, with contributors rubbing shoulders with some 17,000 other people from around the world. Nadia Omer, Business Manager Coffee and Cereal Partners Worldwide, Nestlé Pakistan, said, “More and more Pakistanis are reaching for a cup of coffee in the morning and we want them to share how NESCAFÉ makes their mornings better. ‘Good Morning World’ is a campaign that is uniting coffee lovers across the world and we hope that Pakistani coffee drinkers will help us celebrate the unique way in which we enjoy our coffee.”