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EU tables 'comprehensive' offer on agriculture market access
Brussels: EU trade commissioner Peter Mandelson said on Friday, that the European Union (EU) had tabled a new 'substantive' offer on agricultural market access in a bid to unlock the Doha round in Hong Kong this December.

Under the new offer, the EU will cut its average agricultural tariffs by 46 percent, from 22.8 percent to 12.2 percent. Unlike previous undertakings, the steepest cut this time was for highest farm tariffs -- as high as by 60 percent.

Progressive cuts between 35 percent and 60 percent will be made across the full range of farm products, including sensitive products, said Mandelson.

The EU also agreed to put a lid on its farm tariffs at 100 percent and to reduce the number of sensitive products designated by it.

"It is a substantive, credible and comprehensive offer," Mandelson told a joint press conference with EU agriculture commissioner Mariann Fischer Boel.

Mandelson said he and Boel had just presented the new offer to the United States, Brazil, India and Australia -- the EU's major trading partners.

The new offer "goes much further than Europe has gone before," and can clear the way for success at the World Trade Organization (WTO) ministerial meeting in Hong Kong, said Mandelson.

The offer also gives favorable treatment to developing countries. Poor countries are to be allowed to have higher agricultural tariff bands, lower tariff cuts and a low maximum tariff compared to developed countries. The EU asks for no tariff cuts from the 50 least developed countries, said Mandelson.

The offer, however, falls short of the demand of the United States of a cut of 90 percent of EU's highest farm tariffs, nor the Group of 20's proposal of a cut of 75 percent.
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WTO report: Slowdown in world trade growth likely
Geneva: In its annual publication, the International Trade Statistics, the World Trade Organisation (WTO) has said that it foresees slowdown in world trade growth this year because of the lower economic output, brought on in part by the steep rise in crude oil prices.

World merchandise exports are likely to grow by 6.5 per cent in 2005, markedly less than the nine per cent growth logged in 2004.

In its publication, released in Geneva yesterday, the world trade monitoring body said the dollar value of merchandise exports increased by 14 per cent in the first half of 2005.

This is a markedly lower expansion than in 2004, when the value of global merchandise exports rose by 21 per cent. The trade deceleration was particularly pronounced in Asia and in Europe.

Adjusted for price and exchange rate changes, trade of the major industrial economies stagnated in the first quarter of 2005 but picked up in the second quarter.

"It is unlikely that the momentum of rebound in the second quarter can be upheld in the second half of the year, given the poor short-term growth prospects for Europe and uncertainty linked to sharply higher and volatile oil prices," WTO said.

Increased import demand from the oil exporting regions will not be sufficient to offset weaker import growth in the US, Europe and East Asia.

The report said world merchandise exports increased in nominal terms by 21 per cent to US$8.9 trillion. In real terms, merchandise exports rose by nine per cent in 2004 compared with nearly five per cent in 2003. Trade in commercial services grew in nominal terms by 18 per cent to US$2.1 trillion in 2004, which was stronger than the 14 per cent growth logged in the preceding year.

A noteworthy feature in 2004, WTO said, was that the two most populous countries in the world - China and India - recorded outstanding economic growth (9.5 per cent and 7.3 per cent respectively) and trade expansion for the second year in a row.
Global exports of agricultural products expanded by 15 per cent to $783 billion in 2004.

Other sectors that registered export growth include iron and steel US$266bn, non-ferrous metals US$172bn, fuels US$993bn, other machinery US$1,134bn, pharmaceuticals US$247bn, office and telecom equipment US$1,134bn, other semi-manufactures US$633 bn, automotive products US$847bn, textiles US$195bn and clothing US$258bn.
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SBC Communications to adopt AT&T name
Bangalore: The United States Department of Justice (DOJ) has cleared US telecom major SBC Communication's US$16bn purchase of AT&T. SBC has also announced its decision to adopt the fabled AT&T brand name as the combined company pursues a global footprint.

The new company will also unveil a fresh logo.

"The AT&T name has a proud and storied heritage, as well as unparalleled recognition around the globe among both businesses and consumers," said SBC Communications chairman & CEO Edward E. Whitacre Jr. "No name is better-suited than AT&T to represent the new company's passion to deliver innovation, reliability, quality, integrity and unsurpassed customer care. This is the brand that will lead the industry in delivering the next generation of communications and entertainment services."

The transition to the new brand will be heavily promoted with the largest multimedia advertising and marketing campaign in either company's history, as well as through other promotional initiatives.

SBC provides local and other phone services mostly in the Southwest, Midwest and in California. With the merger, the company aims to become a full-scale provider of communications services such as local calling, long-distance, wireless, Internet access and even television in the US.

SBC was born when the AT&T monopoly was broken up by the federal government in the 80s. AT&T's dissolution in 1984 gave birth to Southwestern Bell Corp. and six other similar regional companies, the so-called Baby Bells, which concentrated on local phone service.

Southwestern Bell Corp. was renamed to SBC Corp when it acquired a pair of its sibling Baby Bells. With the expansion, the company began to offer long distance telephone services. The competition saw AT&T losing its consumer market share significantly. The company was left with its core business of long-distance network services for corporations.

The company was left with limited options to survive and the executives preferred a merger.
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