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Tag: export

  • Vietnam targets $10 bln seafood export

    Vietnam targets $10 bln seafood export

    Vietnam hopes to export $10 billion worth of seafood this year, meeting its 2020 goal a year early. The Vietnam Association of Seafood Exporters and Producers (VASEP) said at a recent conference it would include $4.2 billion worth of shrimp, $2.3 billion worth of pangasius fish and the rest from other products. Minister of Agriculture and Rural Development Nguyen Xuan Cuong said the $10 billion target is high but achievable since Vietnamese seafood is liked in international markets.

    VASEP president Ngo Van Ich said shrimp exported to the U.S. is expected to face a lower anti-dumping tariff this year.

    Vietnam’s recent accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership would also help increase exports, he said.

    But there are also challenges.

    Truong Dinh Hoe, VASEP general secretary, said the country faces difficulties like shrinking catches and intense competition from other exporting countries.

    A major hurdle is the ‘yellow card’ restriction slapped by the European Union since 2017 for illegal fishing.

    The European Commission has said it would ban seafood imports from Vietnam unless it does more to tackle illegal fishing by Vietnamese vessels in other countries’ territories.

    After an evaluation done last May the European Commission said it would consider lifting the yellow card in 2019.

    Vietnam ranks among the top ten seafood producers in the world, according to the U.N. Food and Agriculture Organization.

    Last year its exports were worth $9 billion against a target of $9.5 billion.

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  • U.S. agency submits auto tariff probe report to White House

    U.S. agency submits auto tariff probe report to White House

    The U.S. Commerce Department sent a report on Sunday to U.S. President Donald Trump that could unleash steep tariffs on imported cars and auto parts, provoking a sharp backlash from the industry even before it is unveiled, the agency confirmed. Late on Sunday, a department spokeswoman said it would not disclose any details of the “Section 232” national security report submitted to Trump by Commerce Secretary Wilbur Ross. The disclosure of the submission came less than two hours before the end of a 270-day deadline.

    Trump has 90 days to decide whether to act upon the recommendations, which auto industry officials expect to include at least some tariffs on fully assembled vehicles or on technologies and components related to electric, automated, connected and shared vehicles.

    As the White House received the report, the industry unleashed what is expected to be a massive lobbying campaign against it.

    The industry has warned that feared tariffs of up to 25 percent on millions of imported cars and parts would add thousands of dollars to vehicle costs and potentially lead to hundreds of thousands of job losses throughout the U.S. economy.

    The Motor and Equipment Manufacturers Association, which represents auto parts suppliers, warned that tariffs will shrink investment in the United States at a time when the auto industry is already reeling from declining sales, Trump’s tariffs on steel and aluminum, and tariffs on auto parts from China.

    “These tariffs, if applied, could move the development and implementation of new automotive technologies offshore, leaving America behind,” it said in a statement. “Not a single company in the domestic auto industry requested this investigation.”

    The Commerce Department started its investigation in May 2018 at Trump’s request. Known as a Section 232 investigation, its purpose was to determine the effects of imports on national security and it had to be completed by Sunday.

    Automakers and parts suppliers are anticipating its recommendation options will include broad tariffs of up to 20 percent to 25 percent on assembled cars and parts, or narrower tariffs targeting components and technologies related to new energy cars, autonomous, internet-connected and shared vehicles.

    The Commerce Department alluded to a focus on emerging vehicle technologies when it opened the investigation.

    Administration officials have said tariff threats on autos are a way to win concessions from Japan and the EU. Last year, Trump agreed not to impose tariffs as long as talks with the two trading partners were proceeding in a productive manner.

    Trump said on Friday that tariffs protect industry and also help win trade agreements.

    “I love tariffs, but I also love them to negotiate,” he said.

    A report from the Center for Automotive Research in Ann Arbor, Michigan, published on Friday showed its worst-case scenario of a tariff of 25 percent would cost 366,900 U.S. jobs in the auto and related industries.

    U.S. light duty vehicle prices would increase by $2,750 on average, including U.S.-built vehicles, reducing annual U.S. sales by 1.3 million units and forcing many consumers to the used car market, the think tank’s report said.

    Major automaker groups said last year the cumulative effect for the United States would be an $83 billion annual price increase and argued there was no evidence auto imports posed a national security risk.

    Canada and Mexico each won duty-free access to 2.6 million vehicles as part of a new North American free trade deal even if the administration moves ahead with the tariffs.

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  • New air purifier from Japan debuts in Korea

    New air purifier from Japan debuts in Korea

    Balmuda, a Japanese high-end home appliance maker, is introducing a new air purifier in Korea today ahead of the rollout in Japan, where the launch date has not been set. Balmuda CEO Gen Terao emphasized the importance of the Korean market during the company’s first press conference in Korea Tuesday as he unveiled The Pure air purifiers.

    “We chose to unveil our air purifiers in Korea in light of the fine-dust problem and Balmuda’s growing brand awareness here,” Terao said at the conference in Yongsan District, central Seoul.

    “While Japan’s air purifier market is decreasing every year, it’s been growing in Korea. We sell 10 times more air purifiers here.”

    Several new features make it an upgrade from the AirEngine, the company’s older 2013 model.

    One of the key innovations is that The Pure allows users to see how much dust the machine sucks in. The purifier has a rectangular hole cut out in the bottom installed with lighting, making it easy for users to see the dust and particles that go up into the filter above the hole.

    The Pure’s HEPA filters can trap 99.97 percent of particles as small as 0.3 microns and eliminate odors. The machine releases up to 7,000 liters (1,850 gallons) of cleaned air per minute.

    The Pure will be available at department stores and online and offline electronic retailers from today. They are priced at 749,000 won ($666).

    Terao also discussed Balmuda’s The Light, a desk lamp for children launched last December.

    Addressing the growing problem of short-sightedness among children, Terao said he developed advanced light technology together with medical surgery light manufacturers.

    Terao called out Xiaomi’s air purifiers for copying Balmuda’s AirEngine design.

    “When I saw this [Xiaomi] product, I wondered when we had built it because it had the same size, silhouette and structure as the AirEngine,” Terao said. “But the fact that others are copying us is proof that our products are good.”

    Balmuda, founded in 2003, posted over 10 billion yen ($90 million) in annual sales last year. The company currently generates around 30 percent of its total revenue in Korea.

  • Malaysia to double palm oil used in transport biodiesel to 20%: Minister

    Malaysia to double palm oil used in transport biodiesel to 20%: Minister

    Malaysia aims to double the palm oil content in biodiesel used for the transport sector to 20% next year, as Southeast Asia’s third-largest economy looks to cut record stockpiles and boost prices, a government minister said. The government will also raise the palm oil content in biofuel for the industrial sector to 10% next year from a 7% quota being rolled out this July, Primary Industries Minister Teresa Kok said, speaking at a conference.

    Malaysia’s palm oil inventories fell to 3.001 million tonnes in January on increasing demand and falling production, but that was still near the two-decade high of 3.22 million tonnes recorded a month earlier.

    The increases in the amount of palm oil mandated for biodiesel – known as B20 for transport and B10 for industrial use – should lift use of the vegetable oil in biofuels to 1.3 million tonnes annually, the minister said.

    Kok said her ministry has submitted a proposal to the cabinet to set up a biofuel stabilisation fund to manage the price of biofuels, a similar mechanism to the export levy fund imposed by fellow palm oil producer Indonesia.

    “What if the palm oil price is high and the diesel price has gone up a lot? That would be costly for the public to use biodiesel, so we need to stabilise the price so biofuel will be more attractive to consumers,“ Kok said.

    “I have suggested (a stabilisation fund) in cabinet meeting before but we still need to have deeper discussion with other ministries.”

    Top palm producer and exporter Indonesia began collecting levies from palm exporters in 2015 to help finance the development of its palm-based biodiesel programme, as well as funding other palm oil agenda, such as replanting.

    However, Indonesia’s government temporarily removed the levy in November after a sharp drop in prices hit farmers.

  • Korea automobile production falls for 3rd year in 2018

    Korea automobile production falls for 3rd year in 2018

    Korea’s auto production tumbled for a third consecutive year in 2018 amid weaker domestic and global demand, data showed Sunday. According to the data by the Korea Automobile Manufacturers Association (KAMA), Korea produced 4.03 million vehicles last year, down 2.1 percent from the previous year. The figure has been decreasing over the past three years from 4.56 million in 2015 to 4.23 million in 2016 and 4.12 in 2017.

    The 2018 figure put Korea as the seventh-largest car manufacturing country in the world, down one notch from the previous year, according to the association.

    Korea became the world’s fifth-largest maker of cars in 2005 and retained the ranking until 2015. But India edged out Korea to stand at the world’s sixth in 2016 and 2017. Last year, Korea fell behind Mexico.

    China was found to produce the largest number of vehicles in 2018, with 27.81 million followed by the United States, Japan, Germany and India.

    Korea’s total car exports also fell to 2.45 million vehicles last year from the previous year’s 2.53 million, the KAMA said, adding that the country accounted for 4.1 percent of the world’s car production in 2018, down 0.1 percentage point from a year earlier.

    “Contentious labor-management relations, as well as stiff labor market conditions, among others, appear to negatively affect local carmakers’ competitiveness,” the association said in a release, calling for state support and business innovation.

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  • Sales of imported vehicles in Korea fell 10 percent in January

    Sales of imported vehicles in Korea fell 10 percent in January

    Sales of imported vehicles in Korea declined by more than 10 percent in January from a year earlier due to typically low seasonal demand and supply shortage of some brands, industry data showed on Friday. The number of foreign cars sold last month reached 18,198 units, down 13.7 percent from a year earlier, according to the data compiled by the Korea Automobile Importers & Distributors Association (Kaida).

    The tally also marks an 11 percent drop from a month earlier, the data showed. In 2018, sales of foreign cars continued to rise, helped by firm demand for foreign brands and the resumption of sales of Audi Volkswagen.

    The number of newly registered foreign vehicles reached 260,705, up 11.8 percent from 2017.

    Foreign passenger cars made up 16.7 percent of all vehicles that were registered in the country last year, shattering the previous record high of 15.5 percent in 2015.

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  • Unit price of exported automobiles in Korea up on SUV sales

    Unit price of exported automobiles in Korea up on SUV sales

    The average unit price for exported automobiles last year reached a record high of $15,400, pushed up by the strong performance of sport-utility vehicles (SUVs), according to industry statistics Thursday. Monthly data from the Korea Automobile Manufacturers Association (KAMA) put total exports by five local carmakers last year at 2,447,903, down 3.2 percent from the previous year. The monetary sum from the shipments came to $37.68 billion, 1.6 percent less than the year before.

    Despite decreases in both, the unit price of each exported vehicle remained strong thanks to exports of relatively more expensive SUVs, the data indicated, increasing 1.6 percent from 2017.

    Local manufacturers shipped 1,386,539 SUVs last year, up 6.7 percent compared with the year before, setting a new record.

    “The export volume for vehicles shrank from dulled demand in the global market, but it’s fortunate that the export-unit price rose from increased shipments of high value-added cars,” a KAMA official said.

    By manufacturer, Renault Samsung Motors had the highest unit price, at $17,100.

    It was followed by SsangYong Motor, at $17,000. The unit price was $16,200 for Hyundai Motor, $14,900 for Kia Motors and $13,400 for GM Korea.

    Records showed that the unit price rose up to the mid-2010s, rising from $12,000 in 2010 to $14,800 in 2014.

    It pivoted down to $14,200 in 2015 and stayed in a lull in 2016 at the same level before going back up to $15,000 in 2017.

    In terms of export volume, the numbers have been going down since peaking at 3,166,000 in 2012.

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  • Korea’s industrial output growth slowest in near 20 years

    Korea’s industrial output growth slowest in near 20 years

    Industrial output is growing at the slowest rate in nearly 20 years, while facility investment dropped the most in a decade.  Other signs that the economy is in trouble include seven straight month of declines in the coincident and leading indexes. According to Statistics Korea and the Ministry of Strategy and Finance Thursday, last year industrial output grew 1 percent compared to 2017. This is the slowest annual growth rate since 2000.

    Manufacturing industry output was only able to rise 0.3 percent, while the construction industry, which is an important contributor to the domestic economy, fell 5.1 percent, with a particularly weak second half.

    Facility investment was down 4.2 percent, the sharpest drop since 2009, when the number declined 9.6 percent. The government said the decline in facility investment was largely due to weakening in the semiconductor sector.

    Consumption statistics were relatively strong, on the rising sales of both durable and nondurable goods. When compared to the previous year, consumption rose 4.2 percent, the sharpest increase in seven years. In 2011 consumption went up 4.6 percent.

    Strength was noted at duty-free shops and online.

    While traditional retail store sales were down, including those of discount marts like Emart and Lotte Mart, falling 2.8 percent, as well as those at smaller supermarkets and miscellaneous stores, falling 0.7 percent, sales of online stores were up 14.2 percent and duty-free sales surged 31.5 percent. Chinese tourists returned to the country in great numbers as a result of easing tensions over the introduction of a U.S. missile defense system.

    Convenience store sales were up 8.5 percent, a trend that has been seen in recent years as the number of people living alone has been rising.

    December figures weren’t comforting.

    When compared to the previous year, overall output grew 0.3 percent, which is half of the 0.6 percent reported in November. When compared to the previous month, December output fell for the second consecutive month at 0.6 percent.

    Manufacturing and mining output improved compared to the previous month. It also rose 1.6 percent compared to the same month the previous year, compared to November’s 1.1 percent.

    December output fell 1.4 percent month-on-month, the second consecutive month of decline.

    While the fall in output of automobiles was one of the major factors, down 5.9 percent compared to November, semiconductor output was also another contributing factor, as it fell 4.5 percent.

    The ministry said automobile production continued to fall as exports have shrunk. Overseas and domestic demands have been weak.

    Semiconductors, which have long been a positive force, started to become a drag, with production at some companies falling on weak demand.

    Investment in December alone fell sharply, declining 14.5 percent year-on-year, the sharpest fall since September 2018, when it tumbled 19.2 percent. Even when compared to the previous month, it dipped 0.4 percent.

    The coincident index, which shows the current economic situation when compared to the previous month, fell 0.2 points, down for nine consecutive months.

    It is the longest losing streak since falling for 11 months starting September 1997, when Korea was hit by the first financial crisis.

    The leading economic index fell 0.2 points compared to November, declining for seven consecutive months.

    In a statement, the ministry said it will swiftly move on “big projects” so investment sentiment will improve.

    “The government, if possible, is trying spend a quarter of the budget as early as possible,” Finance Minister Hong Nam-ki said Thursday.

    He denied he is looking into the possibility of a supplementary budget to boost the economy.

    “We’re only in January,” Hong said. “A supplementary budget is not under consideration.”

    The minister said the government will be announcing export measures, mostly focusing on financial aid to SMEs.

    “While finding new markets [for exports] is important, currently the most difficult issue is [SME] exporters struggling to get financial aid,” Hong said.

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  • Korean export decline picks up speed in January

    Korean export decline picks up speed in January

    Exports have continued to fall for a second month, but at a steeper rate, confirming concerns raised by Finance Minister Hong Nam-ki earlier this week. Although Korea succeeded in posting a trade surplus for the 84th consecutive month, a new record, exports in January fell 5.8 percent, sharper than the 1.2 percent drop recorded in December.

    This is the first time since September and October 2016, when exports fell for two consecutive months.

    According to the Ministry of Trade, Industry and Energy on Friday, Korea’s exports in January amounted to $46.4 billion.

    Imports also retreated, losing 1.7 percent to $45 billion. As a result, Korea’s trade surplus in January was $1.3 billion, which is one-third of the $3.4 billion surplus reported a year ago.

    The ministry, however, said the decline of Korea’s exports wasn’t exclusive to Korea as other countries have also been falling as well.

    In December, China’s exports retreated 4.5 percent while Japan was down 3.2 percent, Taiwan lost 3 percent and Singapore fell 4.1 percent.

    The ministry said the decline was largely the result of external factors including the trade dispute between the United States and China, uncertainties resulting from Brexit, falling prices of semiconductors and crude and the slowing growth of the Chinese economy.

    Semiconductors, which were the largest contributor to last year’s thriving exports, played the biggest role in pulling down the number in January and December. Exports fell 23 percent compared to a year ago to $7.42 billion. Semiconductors account for roughly 20 percent of all Korean exports. Semiconductor exports have been shrinking after reaching a high of $12.4 billion in September 2018. The figure fell below $10 billion in December for the first time since April last year.

    The ministry blamed the falling price of semiconductors as global IT companies have been delaying additional purchases since the second half of last year. The price of an 8 gigabyte DRAM chip nosedived 36.5 percent from $9.60 a year ago to $6.10. The price of a 128 gigabyte NAND memory has fallen 22.4 percent from $6.7 to $5.2.

    Falling crude prices was another factor that drove down exports. Petroleum product exports fell 4.8 percent to $3.47 billion, while petrochemical goods slipped 5.3 percent to $3.98 billion. International oil prices have been falling since October last year. Last month, the price of a barrel of oil was down 10.7 percent on year.

    But these weren’t the only export items that struggled.

    Mobile telecommunication goods exports, including smartphones, have fallen 29.9 percent while computers exports are down 28.2 percent. Exports of ships fell 17.8 percent and displays were down 7.5 percent.

    Mobile telecommunication exports to the United States fell 9.7 percent, while the figure for member countries of the Association of Southeast Asian Nations (Asean) saw a steeper drop of 21.9 percent.

    On the contrary, automotive exports, which struggled throughout 2018, appeared to recover, growing almost at the same rate as a year ago.

    Automobile exports in January were up 13.4 percent to $3.67 billion, largely thanks to growing demand in the United States, Europe and the Commonwealth of Independent States (CIS). Exports to the United States in the first 20 days of January were up 43.4 percent to $820 million, Europe grew 20.7 percent to $350 million and the CIS surged 104.1 percent to $150 million.

    Thanks to positive growth in automotive exports, automobile parts exports grew as well, increasing 12.8 percent.

    Steel was another export good that saw an increase thanks to rising prices. When compared to a year ago, it grew 3.3 percent to $2.8 billion.

    By country, China, which is Korea’s No. 1 export market, tumbled 19.1 percent. China, as of last year, accounts for 26.8 percent of Korea’s exports.

    While the majority of the goods exported to China all fell last month, semiconductors, petroleum and petrochemical goods were hit especially hard. Semiconductor exports plummeted 40 percent in the first 20 days of last month to $1.61 billion, while petroleum exports fell 36.4 percent. Petrochemical exports lost 13.7 percent. The three products account for 44 percent of exports to China.

    Exports to the United States rose 20.4 percent to $6.21 billion, largely thanks to import of Korean automobiles, particularly SUVs, which saw an uptick of 43.4 percent.

    EU exports also grew in the double digits at 11.9 percent to $5 billion.

    The ministry said the situation will likely turn around in the second half when semiconductors and crude prices go up. The ministry said that when excluding semiconductors, petroleum and petrochemical goods, Korea’s exports in January only dipped 0.7 percent to $31.5 billion.

    The ministry also noted that new growth engine products like rechargeable batteries are doing well.

    It said that rechargeable battery exports have been rising over the last three years and are now expected to surpass exports of electronic consumer goods, which amount to $7.22 billion.

    Last year, secondary battery exports amounted to $7.23 billion, up 21.5 percent.

    Last month, it grew 14.5 percent year on year to $660 million.

    Biohealth exports have been growing in double-digits for four consecutive years. Last year, they reached a record of $8.15 billion, up 13 percent. Last month, however, biohealth exports fell 1.6 percent to $560 million. The ministry said that it still expects exports of biohealth goods to rise over the course of the year.

    OLED panels and electric vehicles are also seeing an increase in exports. OLED panels last month grew 12.8 percent to $800 million, while electric cars saw a surge of 184.7 percent to $280 million.

    The finance minister said the government will be coming up with measures to help small- and medium-sized exporters that may struggle from the recent turnaround, while Trade, Industry and Energy Minister Sung Yun-mo on Friday emphasized that the government will do its best to revitalize all exports.

    “Our plan will not be concentrated on short-term measures, but committed to all 365 days so that we can achieve $600 billion of exports by the end of this year,” Sung said.

    Korea, last year, reached a new milestone with exports exceeding $600 billion. However, with the global economy expected to shrink, there have been concerns that, this year, Korea’s exports may fall back below that threshold.

    “In a Jan. 21 export strategy meeting, we initiated a pan-government and a private-government joint support system, and since Jan. 30, we started a program of consulting on export difficulties in 15 cities starting with Changwon in South Gyeongsang,” the minister added.

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  • RM25b export target for wood-based products achievable: Malaysian Council

    RM25b export target for wood-based products achievable: Malaysian Council

    The Malaysian Timber Council (MTC) remains optimistic that Malaysia will achieve its RM25 billion export target for wood-based products by 2020 despite a fragile global trade and economy caused by the US-China trade war. “We believe that the RM25 billion target is still achievable notwithstanding the potential headwinds that may come along the way, for instance Brexit, US-China trade war and other regional conflicts,” MTC CEO Richard said.

    “The good part about the timber and wood industry is that a lot of Malaysian businesses are very innovative, and they respond to changes quite quickly, in terms of adjusting to the changing needs and demands and also the challenges of the industry as well as economy,” he added.

    To recap, the Ministry of Plantation Industries and Commodities (MPIC) had in 2017 reduced the wood-based exports target from RM53 billion to RM25 billion due to shortage of raw materials.

    Yu said the RM25 billion target is more “realistic”, noting that the previous RM53 billion target was first formulated prior to the 2008 global financial crisis.

    “The planning and the formulation of the strategy was before that (the financial crisis). At that point of time, even in terms of the exchange rate was pretty favourable to us from ringgit terms perspective.

    “And looking at last year’s numbers, I think to get another incremental of about RM1 billion-RM2 billion for another three years should be quite realistic,” he added.

    The timber industry’s contributed RM23.2 billion to the government coffers in 2017, up 4.8% compared to last year’s figures.

    As at August 2018, the export figures had reached RM14.57 billion, in which the wooden furniture, plywood, sawn timber, fibreboard and builders’ joinery and carpentry are the main revenue generators for the sector.

    However, Yu noted that there is concern raised by the industry players on the potential Chinese products dumping.

    “That will obviously have an effect on our exports. But I believe the Ministry of International Trade and Industry is monitoring this issue closely,” he said.

    At present, Malaysia exports timber and timber-based products in over 160 countries.

    Moving forward, Yu said the country’s commitment in maintaining its forest cover at above 50% will ensure that the timber industry remains sustainable in the long-term.

    The MTC was established in January 1992 to facilitate the local industry players and promote the development and growth of the timber industry.

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  • The world’s largest free trade blocs between Japan and EU

    The world’s largest free trade blocs between Japan and EU

    The economic partnership agreement between Japan and the European Union not only forms one of the world’s largest free trade blocs, but also sets digital and copyright rules that will serve as an international template. The EPA will ultimately eliminate EU tariffs on about 99% of imported products from Japan, and Japanese tariffs on roughly 94% of products imported from the EU. It also incorporates wide-ranging regulations on data transfer and intellectual property protection. The aim is to drive the debate on other multinational trade pacts, especially against the backdrop of rising protectionism.

    A centerpiece provision is a ban on governments forcing companies to reveal source code. Chinese cybersecurity legislation that took effect in 2017 empowers the government to request source code from foreign enterprises doing business within its borders. The law also requires “operators of key information infrastructure” to locally store personal information and important data collected and produced by their services in China.

    The Japan-EU trade deal is essentially a rejection of such digital protectionism, instead encouraging the free and secure cross-border flow of data. Companies in participating countries can operate in other members without risking mandatory disclosure of trade secrets.

    The trade deal “will become a precedent for the data field, which is becoming increasingly important, and will lay the groundwork for the creation of subsequent rules,” said Keisuke Hanyuda, partner at Deloitte Tohmatsu Consulting.

    Japan, the EU and other like-minded trading partners seek to craft similar rules for the World Trade Organization, which includes the U.S. and China. But speedy rule-making may be all but impossible at a WTO that has been criticized as dysfunctional. The alternative strategy is to first implement high-quality rules for the Japan-EU trade deal, as well as the 11-member Trans-Pacific Partnership, and bring other countries into the fold.

    Japan and the EU agreed not to levy tariffs on the transfer of data between the two sides. Copyrights on literary works will expire 70 years after the death of the author. Alcoholic-beverage and food brands tied to a region of origin will be mutually protected as well. Authorized producers of Kobe beef and Champagne would be shielded from imitations, for example.

    The EPA covers 27.8% of global gross domestic product by 2017’s number, and 36.9% of worldwide trade. The TPP-11 — formally the Comprehensive and Progressive Agreement for Trans-Pacific Partnership — accounts for 13.3% of global GDP. Japan sees the EPA and the TPP-11 together adding 13 trillion yen ($119 billion) to its real GDP and creating 750,000 jobs.

    “On top of the short-view effect of stimulating consumption, the inflow of services and investment from the EU will increase competitive pressures inside Japan, and we can expect the effect of prices going down,” said Junichi Sugawara, senior research officer at the Mizuho Research Institute.

    Tariff elimination is expected to have a significant economic impact. EU exports to Japan could jump as much as 34%, while European companies will save an annual 1 billion euros ($1.15 billion) on duties, the EU estimates. Hopes are particularly high for expanded food and agricultural exports to Japan.

    The EPA lowers tariffs on Camembert and other soft cheeses — something Japan did not do for the TPP-11 — up to a certain quota. Japan will eliminate soft-cheese duties for in-quota imports altogether in year 16. Other items, such as European wine, will immediately become duty-free, resulting in a wider selection and lower prices for Japanese consumers.

    Many see the EPA and its benefits as a counterweight to the Trump administration’s anti-globalism. “This is an act of enormous strategic importance for the rules-based international order, at a time when some are questioning this order,” European Council President Donald Tusk said last July, when the agreement was signed. “We are sending a clear message that we stand together against protectionism.”

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  • Vietnam’s exports slow down

    Vietnam’s exports slow down

    Vietnam’s exports fell by 1.3 percent year-on-year in January to $20 billion as phone shipments fell sharply. Exports of phones were 27.5 percent down at $2.9 billion, according to the General Statistics Office. Computer and electronics exports fell 5 percent to $2.3 billion.

    But exports of textiles and garments rose by 6.7 percent to $2.7 billion, footwear by 12.8 percent to $1.6 billion and machinery and equipment by 15.2 percent to $1.4 billion.

    The U.S. was the biggest importer ($4 billion) followed by China ($3.8 billion) and the EU ($3.2 billion). The country’s Southeast Asian neighbors only accounted for $2 billion.

    Meanwhile, Vietnam’s imports rose by 3.1 percent to $20.8 billion.

    Last year exports were worth $244.72 billion, up 13.8 percent, and imports cost $237.51 billion, giving Vietnam its highest trade surplus ever of $7.21 billion.

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  • Palm falls as data shows slower exports

    Palm falls as data shows slower exports

    Malaysian palm oil futures fell last week, after data from a cargo surveyor showed exports grew more slowly than expected in January. The benchmark palm oil contract for April delivery on Bursa Malaysia Derivatives Exchange dropped 0.2% to RM2,299 a tonne. Trading volumes stood at 24,751 lots of 25 tonnes each.

    “The export numbers released are below yesterday’s (Wednesday’s) market rumour. The ringgit’s strength also pushed the market lower,” a Kuala Lumpur-based trader said, adding that the coming long holiday weekend should prompt traders to cover short positions. “That should limit any big sell-offs,” the trader said.

    Cargo surveyor Intertek Testing Services said yesterday exports of Malaysian palm oil products for January rose 14.7%, while independent inspection company AmSpec Agri Malaysia reported a 15.5% increase.

    Palm oil may slide into a range of RM2,256-RM2,274 per tonne, as its correction from the Jan 28 high of RM2,333 looks incomplete, Wang Tao, a Reuters market analyst for commodities and energy technicals said.

  • Sime Darby Plantation, Salcra ink MoU to uplift Sarawak’s palm oil industry

    Sime Darby Plantation, Salcra ink MoU to uplift Sarawak’s palm oil industry

    Sime Darby Plantation Bhd (SDP) and Sarawak Land Consolidation and Rehabilitation Authority (Salcra) have signed a memorandum of understanding (MoU) to form a collaborative framework to establish, strengthen and encourage synergistic commercial cooperation along the palm oil value chain. The collaboration aims to uplift Sarawak’s palm oil industry standards in terms of operational efficiency and productivity through best agronomic practices, SDP said in a statement yesterday.

    It is also intended to inculcate and enhance sustainability awareness for higher operational performance and bottom-line achievement.

    Under the MOU, both parties intend to combine their resources and expertise to jointly collaborate, evaluate and research on matters relating to the palm value chain and related agronomic inputs.

    These include in the areas of agricultural materials such as oil palm seedlings and saplings, management, consultancy services and training, consultancy services, as well as laboratory analytical services.

    The MoU also includes any other activities that are mutually beneficial to the parties such as logistics and activities connected to rubber plantation and other agricultural businesses.

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  • Excess car demand for Tet holiday drives prices up in Vietnam

    Excess car demand for Tet holiday drives prices up in Vietnam

    The surge in demand for cars before the Lunar New Year means customers have to wait or pay extra to get immediate delivery. With only weeks to go for the Lunar New Year Festival (Tet), which falls on February 5 this year, consumers are rushing to order automobiles leading to a shortage in the market. They either have to wait for a long time for delivery or, for quick delivery, opt for accessories which can cost an extra VND70-150 million ($3,013-6,458).

    For instance, Hyundai SUV Santa Fe requires an extra VND70-160 million ($3,013-6,887), which is 7-16.1 percent above the minimum listed price, while for the Toyota Fortuner it is VND100-150 million ($4,305-6,457). But most customers will have to wait until March for delivery if they signed the purchase agreement last November or later.

    The only way to get guaranteed delivery before Tet is to buy from someone who signed earlier, car dealers said, explaining that a dealership only gets around 20 units in each model per month but demand is two to three times that number.

    The shortage is because of difficulties in importing at the beginning of 2018 as a result of a new regulation tightening imports, Tran Thanh Binh, director of Thanh Binh Automobile Import Export Trading Service Co Ltd, said.

    The regulation stipulates that traders are only permitted to import if they can provide valid vehicle registration certificates issued by authorities from the countries of origin.

    Original quality control certificates for each vehicle and letters of authorization regarding recalls of defective vehicles from the manufacturers are also required, along with copies of quality assurance certificates provided by the countries of origin.

    “This made companies stop ordering from factories in Indonesia and Thailand. The second half of 2018, however, with these difficulties resolved, businesses have started to order again. But, since the factories also produce for many other markets, Vietnam was not able to order enough,” he explained.

    Vietnam imported 6,362 cars, including 4,264 personal cars, 1,820 trucks in the first 15 days of 2019, according to Vietnam Customs.