US Republican bill could hit India, Brazil exports
Washington: A Republican bill extending trade benefits to developing countries may affect key industries in Brazil, India and other countries. The United States' main trade benefits program for developing countries — the Generalized System of Preferences — expires on Dec. 31, as does a separate program for the Andean countries of Colombia, Peru, Ecuador and Bolivia.

The Bush administration in set to renew the GSP and is currently in the midst of a review that could remove many large developing countries like Brazil and India out of the program.

Oxfam said its initial analysis suggested that certain exports from Brazil, India, Argentina, Turkey and Venezuela could lose duty-free access to the United States under the legislation. The bill also provides new trade benefits for Haiti.

Another section extends through September 2008 a provision expiring next year that allows African manufacturers to use fabric from Asian or other suppliers to make clothes they can sell in the United States without import duties.

The bill would exclude India's jewelry sector from the program by barring duty-free treatment for any product from a developing country that has annual export sales of more than $1.5 billion.

Another provision aimed at developing countries with a per capita income of more than $3,400 would deny duty-free access for Brazil's auto parts exports and other Brazilian sectors by barring USTR from issuing certain waivers.
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Petroleum prices may decline soon: Deora
Mumbai: Petroleum prices could fall in the coming few weeks if global crude rates decline further, said Petroleum minister Murli Deora. He however said he would not be able to give a specific timeframe or the level to which would fall. There were indications that prices globally could decline and this will be reflected in India as well, he said, adding that if the price of crude declines from the present level of $57-58 to around $50, then it would be beneficial to the country.

He also said that last year there was a short recovery to the tune of Rs 72,500 crore on account of subsidies on four products--kerosene, LPG, diesel and petrol.
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CST phaseout not till April 2007
New Delhi: The Central Sales Tax phaseout has been put off until April 1, 2007 and the rate would now be reduced from 4 per cent to 2 per cent. Earlier the Empowered Committee planned to reduce the CST rate from 4 per cent to 3 per cent from October 1 and to 2 per cent from April 1, 2007. Since the plan has been delayed by six months, the committee has decided to reduce the rate directly to 2 per cent so that the reduction plan remains unchanged.

However, the CST phase-out would be contingent on the states and the finance ministry agreeing on the compensation package for losses on account of the reduction in CST rates.
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