10/03/2014 World Business Report


10/03/2014

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programme. It's the country's first official visit from an EU figure in

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six years. With less than one week to a

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referendum in Crimea, dismiss leaders in Ukraine called for calm

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and a diplomatic solution to the crisis. -- business leaders. Trade

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talks between the US and EU resume but disagreements over farming looks

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set to block progress. Also in the programme, we look at poor economic

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news from the world 's second and third largest economies. First, as

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you have been hearing, a referendum in Crimea on the region joining

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Russia is less than one week away and tensions on the peninsula are

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rising. Ukrainian business leaders warned that escalating tensions are

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causing more damage to a near bankrupt economy, as the stand-off

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continues to draw the attention of leaders around the world. How is

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business on the ground being hit by this uncertainty? Thank you for

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joining me. You are joining us on a personal capacity. It's a critical

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week for Ukraine, with this referendum of sorts happening in six

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days. Give us your take on what is happening at the moment. There has

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been an invasion by Russian troops. That is fairly obvious. The

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referendum in six days, I'm told, cannot actually take place properly

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because there is not enough time to organise it. In terms of what

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business leaders say and those involved in the economics of the

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region, there is huge frustration because the economy is close to

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bankruptcy and is in need of immediate financial assistance, and

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yet Ukraine has huge potential. It has enormous potential. Ukraine 's

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potential comes into areas. The most important is that within a decade,

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food supplies in the world will become quite tight. Ukraine is the

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only major agricultural producer that has not been sensibly

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developed. It could probably increase its food production by

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about 400%. When food becomes tight, the world will look to Ukraine for

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food and the Middle East and North Africa will probably depend upon

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Ukraine for food, which makes it a very strategic place. Crimea in

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particular could become the California of Europe and North

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Africa and the Middle East. It has a warm microclimate but it depends on

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Ukraine for its water. The gas potential in the Black Sea as well.

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That's important, isn't it? Again, especially in terms of Crimea. It's

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very important. Exxon Mobil has made a major discovery near Romania.

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Several companies now have the right to drill off the Crimean short, the

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rights with Ukraine. But this depends on Crimea remaining with

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Ukraine. What do you think the outcome of all of this will be?

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Given that Ukraine had a referendum in 1991 and voted 93% in favour of

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independence and that in 1994, Russia, the UK and US guaranteed the

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territorial integrity of the Ukraine, I believe that Russia

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should withdraw and the Ukraine should continue to be the state as

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it is. Thank you. Of course, we will keep you

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up-to-date as well. Now, let's talk about something else. Trade talks

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are resuming again between the US and EU today, the so-called

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Transatlantic Trade and Investment Partnership aims to boost economic

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growth and jobs on both sides by liberalising trade and investment

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between the two largest economic regions in the world. But with

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Europe reluctant to make any exceptions on importing GM crops and

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hormone treated beef, is any kind of deal feasible? We are not going to

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change our basic legislation, which means the existing GM legislation

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remains in force. On the other hand, we will also realise that about 50

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GM products have been authorised. The legislation does not forbid GM.

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Instead, there is a process of authorisation on the basis of the

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proportional principle and the commission has to decide. There is

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legislation. What about public procurement. A lot of American

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states have legislation to buy American. Politically, it will be

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difficult for them to make an exception. What stands with GM also

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stands for hormone treated beef. That is related to our concerns for

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health and safety. This is not for discussion. You will not give ground

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on that but at the same time, you expect the Americans to give ground

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on by American legislation. That is completely different. National

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preferences is a traditional trade issue. This is a trade issue. It's

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not an issue that is to do with health and safety. It's completely

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different. To be clear, you think that whatever concessions you end up

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making, the prize of the deal with the US is worth it? Yes because it

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will widen the market and it will create growth and jobs and it will

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enormously facilitate, I believe, small to medium-sized enterprises in

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the American market, which will become much more transparent to

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them. Apart from that, we should also realise that the next major

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battle on trade is going to be about laws and standards and regulations.

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That's what the next contest is going to be about. That was the

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trade commissioner of the EU. It has not been a good start to the trading

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week at all in Asia thanks to some pretty dismal news about the world

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's second and third largest economies. You are always smiling,

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regardless of what the news might be. Good morning and nice to see

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you. As always, light at the end of the tunnel. Many people, you are

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that light. What is the news from China? It's all about the export

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sector. Outgoing shipments from garments, machinery to consumer

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electronics, came in worse than expected, falling more than 18% in

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the month of February compared to the same period last year. The

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forecast was for an increase of 7%. You can see the discrepancy. As for

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imports, it had a steady 10% year-on-year increase. That falling

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exports unexpectedly swung this whole trade balance into deficit.

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When you speak to analysts about China 's deficit, they say that this

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does not bode well for the country's trade this year. It comes just days

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after the mainland 's premier Li Keqiang set the growth forecast at a

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steady 7.5%. We will have to see if they can stick to that forecast. The

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growth figures out of Japan were also pretty dire. They have been

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revised downwards further. Yes. The initial estimate was 1% but it just

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grew by 0.7%. This revised data brings about concerns about the pace

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of the economic recovery under the prime minister Shinzo Abe. On the

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current account deficit front, it widened to a record $15 billion in

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January, the largest since records began in 1985, and these figures

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will now turn focus on the bank of Japan. There is speculation they

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could unveil further monetary easing measures to counter a possible

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slowdown from a sales tax hike, which begins on the 1st of April.

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Thank you. Looking at the financial markets, as you can imagine,

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sentiment has been hit across-the-board. Japan is down over

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1% at the moment, so is Hong Kong. All of the markets have lost a bit

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of ground. Looking at the currencies as well before we say goodbye.

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Stay with us. We will be talking about the front-page headlines

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next. Thank you. Now, talking about the weather transport system

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operates for patients we need new lungs. It's a scandal and needs to

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change, according to

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