Posts Tagged ‘BRICS Business’

Iran does brisk business with BRICS

Indian Prime Minister Narendra Modi with the President of Iran, Hassan Rouhani, in Jomhouri Building, at Saadabad Palace, in Tehran on May 23, 2016 [Image: PMO, India]


Despite the threat of further sanctions on Iran, its oil industry is continuing to do brisk trade with a number of countries, including the BRICS.

According to Iranian oil industry sources in Tehran, overall bilateral trade with BRICS countries reached 53.78 million tons.

While this is a decline of just over 8 per cent year on year, its value is up 7.4 per cent due to higher oil prices.

The volume of trade reached a value of just over $29 billion in the year ending March 21, 2018.

In the meantime, India has moved ahead boosting its strategic trade ties to Iran.

In February, Indian Prime Minister Narendra Modi signed nine new trade agreements with Iranian President

The agreements include the development of the strategic port of Chabahar in Iran.

India intends to lease two berths at Chabahar for 10 years. The port will be developed through a special purpose vehicle (SPV) which will invest $85.21 million to convert the berths into a container terminal and a multi-purpose cargo terminal.

The port of Chabahar in southeast Iran is pivotal to India’s efforts to open up a route to landlocked Afghanistan where it has developed close security ties and economic interests.

In April, Iran and Russia agreed to work together within the framework of a Moscow-led Eurasian Economic Union (EEU) following three years of discussion and negotiations on free trade.

The agreement, which will require ratification in both countries, will bolster bilateral trade and investment and also open Iranian markets and investors to the other EEU members – Kazakhstan, Belarus, Armenia, Kyrgyzstan and Vietnam.

Iran’s inclusion into the EEU will help it access markets that may have been previously blocked due to US sanctions.

Once ratified, Iran will be expected to establish a free trade zone for EEU trade.

The BRICS Post with inputs from Agencies

Chinese economy forecast 6.7% growth in H1

Premier Li Keqiang said that China is committed to market reforms and opening up to the global economy [PPIO]


A report released by the Bank of China on Sunday indicated that the Chinese economy is forecast to have grown by 6.7 per cent in the first half of 2018.

This is a slight dip from the 6.8 per cent growth in the first quarter of 2018. It grew at a similar pace in Q3 and Q4 of 2017.

The report says that the property market nationally has continued to improve and that the economy overall is resilient.

The findings of the report are echoed by leading economists and think tanks such as the National Academy of Economic Strategy (NAES). It also said that growth in the first half of 2018 would like register at 6.7 per cent.

However, it warned of a drop in investments in the second half of the year which led it to predict an overal 6.6 per cent 2018 annual growth.

Meanwhile, Chinese Premier Li Keqiang told experts at the China and Central and Eastern European Countries business forum in Sofia, Bulgaria that the Chinese economy has grown at an average rate of 7 per cent in the past five years.

He said his government is committed to expanding its market reforms initiatives and opening up to world markets.

China has over the past two years said it expects steady and moderate growth between 6.5 ad 6.9 per cent in the coming years. This is quite the change from just four years ago when first half growth in 2014 was at 7.4 per cent.

The BRICS Post with inputs from Agencies

Russia raises duties on US imports

Russian President Vladimir Putin is due to meet US President Donald Trump in Helsinki, Finland on July 16 but most of the talks will focus on the Syrian conflict [PPIO]


A week after resorting to the World Trade Organization in its complaint against US tariffs on Russian steel and aluminum, Moscow has raised its duties from 25 to 40 per cent on some US imports.

According to the Russian news agency TASS, Economic Development Minister Maksim Oreshkin said the rise was to compensate for more than $500 million loss in exports expected due to the US tariffs.

“Currently our higher duties cover only part of the damage – $87.6 million. This is the compensation Russia has the right to under WTO rules,” Oreshkin said in remarks carried by TASS.

The $87.6 million figure refers to the amount of tariffs Russia can resort to without having to turn to a WTO ruling.

The 40 per cent tariff will apply to road construction equipment, drilling equipment and other hi-tech machines.

Russia last week joined other BRICS members China and India in resorting to the WTO about the US tariffs.

China’s officials have warned that a trade war benefits no one and leaves no winners.

India is expected to slap tariffs on 29 US products beginning August 4. It had already resorted to the WTO in May and last week announced it would join Norway in requesting third party dispute consultation.

In its May complaint, India accused the US of violating WTO guidelines multiple times including the 1994 General Agreement on Tariffs and Trade (GATT) and the Agreement on Safeguards.

The BRICS Post with inputs from Agencies

China: US ‘shooting itself in the foot’

Chinese President Xi Jinping maintains a good relationship with Trump, but Chinese media has called the US a trade bully


US President Donald Trump has warned of imposing tariffs on as much as $500 billion in Chinese exports if Beijing retaliates against his administration’s $34 billion levies which went into effect July 6.

While this would be a massive escalation of what is clearly becoming a trade war, it didn’t appear to faze China. On Friday, Chinese Foreign Ministry spokesperson Lu Kang said that Chinese tariffs on $34 billion worth of US products have indeed gone into effect.

These include soybeans (half of all US soybean production is exported to China), crude oil and auto parts, among nearly 600 other items.

It said the US had started the biggest trade war in economic history.

During his talk with journalists on his way to a Montana rally, Trump explained that while tariffs on $34 billion in Chinese goods goes into effect today, another $16 billion will be applied in two weeks.

“As you know we have 200 billion in abeyance and then after the 200 billion we have 300 billion in abeyance. OK? So we have 50 plus 200 plus almost 300,” he said, before adding that this only applied to China.

China, meanwhile, accuses the US of violating World Trade Organization guidelines, and while global trade and markets will suffer, it is also the American consumer and industry which will pay the price.

Chinese media have called the US a trade bully and said it is shooting itself in the foot.

Lu said that “the series of unilateral acts and trade and investment protectionism measures adopted by the US government have caused widespread concern around the world for some time”.

He predicted that the number of retaliatory measures even from US allies will grow in time.

Right now, the US is engaged in open trade conflict with Canada, Mexico, the European Union and Japan.

The BRICS Post with inputs from Agencies

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