15/09/2016 World Business Report


15/09/2016

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Now for the latest financial news with Sally Bundock

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Could the biggest free trade deal in history be about to collapse?

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Plus, Legal Logging - after decades of destruction can

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Indonesia rebuild trust in its timber business?

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Wii have the latest on Hanjin, the global shipping giant which is in

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dire straits. We will talk about that in a moment.

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We start in Brussels, where US Trade Representative Michael Froman

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is headed to meet the EU's Trade Commissioner -

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Cecilia Malmstrom - in a last ditch attempt

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to save the biggest trade deal in history.

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It's the Transatlantic Trade and Investment Partnership -

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or TTIP for short that aims to break down trade barriers between Europe

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and the United states - and boost both economies

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But despite 3 years of talks the prospects of a deal look shakier

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French president Francois Hollande has said the talks are "unbalanced"

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with the US demanding too much and warns he can't support any deal

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reached before the end of the Obama presidency.

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His trade minister Matthias Fekl is going even further calling

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for the EU to formally abandon the negotiations at its summit

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Germay's Vice Chancellor Sigmar Gabriel has said negotiations

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are essentially dead but that no one is admitting it.

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Over in the US, things aren't looking much better for TTIP -

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Donald Trump has been very vocal about the dangers of free trade.

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And Hilary Clinton has hinted she could scrap the deal.

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I'll be speaking to a trade expert in a moment about what might happen

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next - first here are some facts and figures about TTIP.

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Plans to create a zone between Europe and the US were always

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controversial. 150 million consumers packed into one market. Those in

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favour says it would offer tend of billions of dollars to both

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economies. But sceptics is agreed saying it would favour big business

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and lower product safety standards. Recently, they have been voicing

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their opposition when President Obama visited Germany - thousands of

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protesters rallied against TTIP. Many in France, including the trade

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Minister have criticised a lack of concessions from the US side now

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there is a possibility that the talks could stall altogether.

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Aline Doussin, senior associate at law firm Squire Patton Boggs,

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I am sure you are extremely busy right now with this and Brexit. We

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have underlined the It is difficult to answer that

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question now. We will have to see what Cecilia Malmstrom and Matthias

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Fekl will discuss. We need to look at what the key issues by both the

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US and the EU and the likelihood of moving ahead in those areas.

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Agriculture is one of the sticking points. If the US were to

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compromise, that could trigger a deal? We have seen a number of

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chapters in which agreements have been made. Subcommittees have said

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we could come up with a mini deal were those chapters are finalised

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before the end of the Obama Administration. Key issues remained

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access to public procurement - that is a key issue for the French and

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the Germans in particular. A number of over sensitive areas also

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remained. We have seen a number of progressions. Including safety

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tests. Even if we wait to see some middle ground reached in the next

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few weeks, the Obama administration still has to sell it in Washington

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and that could take a very, very long time? Yes. The short answer is

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yes. It is always difficult to go through Congress in the US. Also in

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the EU with a number of political deadlines in 2017 not to mention the

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impact of the Brexit decision. The UK has always been an important

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voice in free trade decisions and that will cause a number of

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disruptions at the table. We will keep across those discussions in

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Brussels and we will keep you up dated.

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We are also in Indonesia, home to some of the world's oldest

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rainforests - millions of hectares of which have been lost over

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Now Indonesia is set to become the first country to export legally

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verified timber products to the European Union -

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its biggest export market for timber.

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But will the new system be too open to abuse to do any good?

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We have a special report from Indonesia and all

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Indonesia has some of the world 's oldest forest home to native

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animals. It also has a very fast deforestation industry. New

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companies will only be able to import timber certifiable from legal

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and sustainable sources under the agreement. TRANSLATION: We wanted a

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system that would stop the timber to get into the hands of the buyers.

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When they are not on the market for illegal timber, they will not have

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any benefit. Recent products are proven legal while other countries

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have not so we have an advantage. For us, it will drive the domestic

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industry to be more legal. Indonesia has set up a verification system

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where it claims to chase the timber source back through the supply

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chain. The fact the EU endorsed the system as credible is good news for

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exporters but environmentalists are warning that the verification system

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has problems. TRANSLATION: I do not think we can say it. The legal

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deforestation. A system that makes consumers feel safe about buying

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will increase in demand and that will be a catalyst for

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deforestation. We know that this system is not 100% perfect. But it

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is the best we can have at the moment. Any loopholes or problems

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that will be found, concrete cases, corrections have to be made in the

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system and these will be done regularly. 13 other countries are in

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negotiation to reach a similar deal. They will be watching closely what

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happens in Indonesia. The bankruptcy of Hanjin is continuing to cause

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havoc. Many of the cruise are stuck without supplies. We have been

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following this story. Nice to see it. What is the latest? -- nice to

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see you. They decided to unload some of the ships of Hanjin. There have

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been three bulk carriers used to carry I am, coal and grain, sold for

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about $40 million. At least 700 vessels have been arrested at ports

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in China, India and elsewhere will here in Singapore, one Hanjin ship

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seized by creditors is stuck off the coast. Ports are refusing entry to

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dozens of ships for fear they would not be able to pay docking fees

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leaving an estimated 250,000 containers stuck around the world.

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Many products supposing to make their way to retailers are stuck in

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these ships and it is becoming a nightmare. An estimated $40 billion

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in goods remain standards in the high seas. It is not working out at

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all. The UK government could announce an

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approval to build the first nuclear reactor in decades.

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at Hinkley in the West of England.

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Prime Minister Theresa May put the deal with French energy firm EDF

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and a Chinese firm on hold back in July.

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Sources say the project could now go ahead with certain conditions

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Looking at the market... You can see Japan is down. Markets in China

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closed today for a public holiday. I will see you soon.

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Thousands of post office workers across the country are expected

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to go on strike today, in a protest over closures,

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job losses and cuts to their pensions.

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