The World Trade Organization (WTO) on Thursday more than halved its global goods trade forecast for 2023 to 0.8%, from 1.7% estimated in April, amid a global manufacturing slowdown.

 

The trade slowdown appears to be broad based, involving a large number of countries and a wide array of goods amid a continued slump that began in the fourth quarter of

2022, the multilateral trade body said in its Global Trade Outlook and Statistics Update: October 2023.

 

'The exact causes of the slowdown are not clear, but inflation, high interest rates, US dollar appreciation, and geopolitical tensions are all contributing elements,” the WTO said.

 

However, the 3.3% growth projected for 2024 remains nearly unchanged from the previous estimate of 3.2%.

 

WTO Director-General Ngozi Okonjo-Iweala said the expected slowdown of trade was a cause for concern because it could depress the living standards of people around the world, particularly in poor countries.

 

Iron and steel, office and telecoms equipment, textiles and clothing contributed to the slowdown while automative products were an exception where sales have risen.

 

Falling commodity prices and appreciation of the dollar have pushed world merchandise trade down 5% on-year in the first half of 2023, according to the report.

 

Risks, growth

The WTO said risks to its forecast were balanced. A sharper than expected slowdown in China and resurgent inflation in advanced economies would require keeping interest rates higher for a longer period.

 

'The data suggest that goods continue to be produced through complex supply chains, but that the extent of these chains may have reached their high-water mark,' the WTO said.

 

As per the report, Asia’s export growth is

expected to turn positive in the second half of the year while Europe’s is expected to flip into negative territory.

 

Import volume growth is expected to turn positive in Asia and North America in the second half of 2023 whereas Europe’s imports could remain weak.

 

The organisation’s forecast does not cover services, but it said that growth was moderating after a strong rebound in international tourism in 2022. Global commercial services trade rose 9% in the first quarter of 2023, down from 19% in the second quarter of 2022, the WTO said.

Secretary, Department of Commerce, Ministry of Commerce & Industry, Shri Sunil Barthwal paid an official visit to Brazil from October 1st to October 4th, 2023, for the 6th meeting of the India-Brazil Trade Monitoring Mechanism (TMM). He was accompanied by a delegation of 20 business leaders representing the Confederation of Indian Industry (CII). The visit was happening in the backdrop of the sharp growth in the bilateral trade which had doubled over the last two years reaching US$16 Billion. It was aimed at strengthening this rapidly growing commercial engagement between the two countries.

 

During his interactions with the Brazilian officials, the Commerce Secretary commended Brazil for their support during India’s G20 Presidency and conveyed India's commitment to support Brazil when it assumes its G20 Presidency.

 

The Indian delegation engaged in discussions, business meetings and explored new trade opportunities with key Brazilian organizations, including Confederation of Industries of Brazil, the Commercial Association of Sao Paulo, Federation of Industries of the State of Sao Paulo (FIESP) and industries in Rio de Janeiro demonstrating their strong commitment to boost bilateral trade and investment prospects.

 

On October 2nd, 2023, the delegation participated in various trade facilitation activities aimed at nurturing the growing trade relationship between India and Brazil. A productive meeting with the Commercial Association of São Paulo provided a platform to discuss potential trade collaborations. The day concluded with an interactive session with Indian companies operating in Brazil, fostering closer ties within the business community and identifying new opportunities for promoting trade.

 

A breakfast meeting was held on 3rd October, with Brazilian companies that have invested in India, highlighting the Indian government's commitment to support foreign investors. This meeting also included discussions on new trade and investment opportunities. Shri Barthwal interacted with representatives from leading MICE (Meetings, Incentives, Conferences, and Exhibitions) companies in Brazil and engaged with the Federation of Industries of the State of São Paulo (FIESP), a crucial industry chamber in the region.

 

On October 4th, 2023, the Commerce Secretary co-chaired the 6th meeting of the India-Brazil Trade Monitoring Mechanism (TMM) with Secretary of Foreign Trade for the Federative Republic of Brazil, Ms. Tatiana Lacerda Prazeres in Brasília. Both sides extensively discussed matters related to bilateral trade and outlined a roadmap for its further enhancement.

 

Shri Barthwal also held comprehensive discussions with the Vice Minister of Development, Industry, Trade, and Services, Brazil, H.E. Mr. Marcio Elias Rosa to advance the economic and commercial partnership between the two nations.

 

The visit concluded with an interaction with leading industries & members of the Confederation of National Industries of Brazil over the opportunities provided by India’s dynamic economic growth including on transfer of technology, investments etc. He also invited Brazilian industries to be part of the growing supply chain to India.

 

The deliberations and interactions during this visit signal a promising growth for India-Brazil trade relations. These engagements have set a positive tone for future dialogues, with a dedicated focus on exploring new trade opportunities and strengthening bilateral integration through Global Value Chains.

British Prime Minister Rishi Sunak has reiterated his commitment to closer India-UK ties across different sectors, including a free trade agreement (FTA) between the two countries.

 

Addressing a reception by the diaspora group Conservative Friends of India (CFIN) on the sidelines of the ongoing Conservative Party conference in Manchester on Monday evening, the British Indian leader began by reflecting upon his 'successful' first visit to India as Prime Minister for the India-led G20 Summit last month.

 

'I’ve just come back from my first trip to India as Prime Minister and that was very successful,' said Sunak.

 

'Everybody here already knows just how strong the relationship between our two countries is. At the G20, we really saw a glimpse of what the future of that relationship can be, with closer cooperation on absolutely everything from trade to defence, innovation, security, research, and I hope… a free trade deal, and we can get it done,' he said.

 

The 43-year-old politician, who is leading his first Conservative Party conference as leader of the governing party, went on to say that he hopes to build on the success of his first India visit to work together as two 'great democracies, shaping the future of the world for the long term'.

 

'We’re working together as partners to build a better future for all our citizens,' he added.

 

His visit to New Delhi for the G20 Leaders’ Summit in early September had also concluded with a commitment to an India-UK FTA, even as Sunak told reporters that he 'won’t rush things'.

 

Later in the month, amid a diplomatic standoff between two of its close allies – India and Canada – over the contentious issue of pro-Khalistan extremism, Sunak’s spokesperson at 10 Downing Street had reiterated that trade talks with New Delhi remain on track.

 

'Work on the trade negotiations will continue as before… when we have concerns with countries we’re negotiating trade deals with, we’ll raise them directly,' the spokesperson told reporters.

 

According to official UK Department for Business and Trade (DBT) figures, UK-India bilateral trade was worth an estimated 36 billion pounds in 2022.

 

'We have never set a deadline. I think this is very optimistic briefing for newspapers. We are very close. It is possible, but I wouldn’t be setting that sort of deadline. We will finish when we finish,' UK Business and Trade Secretary Kemi Badenoch told a UK parliamentary panel recently when asked about the prospect of a return visit by Sunak over the cricket World Cup in India to sign off on an FTA.

 

Earlier, Badenoch had reviewed progress on the trade talks with her Indian counterpart, Commerce and Industry Minister Piyush Goyal, during a visit to India in August coinciding with Round 12 of the FTA negotiations. 

‘Rasabali’, a famous sweet dish of Odisha’s Kendrapara district, has received geographical indication (GI), giving a boost to sweet makers.

 

The Geographical Indications Registry, Chennai, under the ministry of commerce and industry on Tuesday accorded the GI tag to the sweet dish, which is popularly known as ‘Kendrapara Rasabali.’ ‘Kendrapara Rasabali Mistanna Nirmata Sangha’ and the rural infrastructure development and employment department had applied for GI tag for ‘Rasabali’ and submitted supporting documents to the registry.

 

Taking to X Chief Minister Naveen Patnaik said, 'It is a matter of pride for Odisha to get the GI tag for Kendrapara Rasabali. Rasabali has special importance in the food culture and tradition of Odisha.' ‘Kendrapara Rasabali’ owes its origin to the 262-year-old Sree Baladevjew temple here. The presiding deity of the shrine is offered Rasabali as ‘bhog’.

 

'The conferring of the tag is a shot in the arm for the sweet makers. It’s a much-needed recognition of the distinct identity to the product. We are delighted. The sweet will get better exposure now and will help those selling Rasabali here,' said Baishnab Panda, president of Kendrapara Rasabali Makers Association.

 

Kendrapara’s Rasabali is one of the most delicious sweets in the country, but because of poor promotion and export facilities, it was not getting marketed properly.

 

Kendrapara Rasabali Mistanna Nirmata Sangh had prepared a dossier in 2021 to lay claim for geographical identification (GI) tag for the sweet.

 

'We submitted it to the state government. The government sent it to the office of Geographical Indications Registry in Chennai,' said Basudev Das, a researcher of Kendrapara.

 

With the GI tag, Kendrapara Rasabali will acquire more prominence in the market and would fetch the makers better price, said Souri Sahoo, a Rasabali maker of Kendrapara.

 

This GI certification would also stop adulteration of Kendrapara Rasabali and thereby it will fetch much better prices, said Nandakishor Parida, a retired teacher. 

The Goa cashew (kernel) has successfully secured the Geographical Indication (GI) tag. The window for any opposition to the GI tag designation closed on October 1, with no opposition filed. Consequently, the GI registry now considers it officially registered. The GI registry is expected to update the status to 'registered' within the next two to three days.

'Goan cashew has a long and cherished heritage and this GI status helps to preserve our legacy,' said chief minister Pramod Sawant. He said that this recognition will offer 'a great opportunity for every stakeholder in the cashew industry in Goa' and is a milestone towards the Swayampurna Goa mission.

One significant impact of the GI tag is that it will enable buyers to distinguish between authentic Goan cashews and those sourced from other regions.

GI will ensure local cashew farmers receive recognition’

 

Manufacturers have, at times, imported African cashews to meet the high demand in Goa. With the GI tag, consumers can now be certain of the origin of the cashews they purchase. Rohit Zantye, president, Goa Cashew Manufacturers Association, said that the GI will ensure local cashew farmers receive 'recognition and safeguarding' for their hard work besides 'bolstering the Goan cashew industry, ensuring its continued growth and prosperity'.

 

'The overall climatological impact of Goa and traditional farming practices followed by Goans gives the Goan cashew its unique identity and taste,' said Deepak Parab, nodal officer, patent facilitation centre at the State Council for Science and Technology. Parab also explained that any Goan processor acquiring cashews from local farmers will need to apply to the GI registry for the use of the GI l ogo, indicating the origin of the product. A stakeholders’ meeting is planned to discuss this process. Several products that are unique to Goa — bebinca, malcorada mango, seven-ridge okra, Agasaim brinjal, Harmal chili, Khola chili, etc — have been published in the journal owing to the efforts of the State Council for Science and Technology. In addition to this, Goa University has facilitated documentation on the earthen instrument, ghumot. The State Council for Science and Technology has submitted this as well for GI status.

NPCI International Payments Limited (NIPL), a wholly-owned subsidiary of the National Payments Corporation of India (NPCI), has entered into a strategic partnership agreement with Al Etihad Payments (AEP) for Domestic Card Scheme (DCS) Implementation in UAE. AEP is an indirect subsidiary of the Central Bank of UAE (CBUAE). As per the agreement,  NIPL and AEP will work together to build, implement, and operationalize UAE's national domestic card scheme. The DCS will aim to facilitate the growth of e-commerce and digital transactions in the UAE, bolster financial inclusion, support the UAE's digitization agenda, increase alternate payment options, reduce the cost of payments, and enhance the UAE's competitiveness and position as a global payments leader.  The partnership aligns perfectly with NIPL's mission to offer its knowledge and expertise to assist other countries in establishing their own cost-efficient, and secure payment systems.

 

The DCS solution is based on the principles of sovereignty, speed to market, innovation, digitization, and strategic independence. The DCS solution provided by NIPL consists of a RuPay stack and value-added services like fraud monitoring services and analytics. NIPL will also assist AEP in formulating the operating regulations for their domestic card scheme.

 

RuPay is an indigenous, highly secure, and widely accepted card payment network in India. RuPay cards have debit, credit, and prepaid propositions. More than 750 Million RuPay cards are in circulation as of date. RuPay cards make up more than 60% of total cards issued in India, with every second Indian having a RuPay card now. These cards are issued through the entire banking spectrum, including public sector, private, and small banks.

 

India's world-renowned Digital Public Infrastructure (DPI) is driving massive transformation in the payment space. DPI framework includes digital identity, digital payments, and digital data exchange layers - a combination of these three is the force behind the fintech revolution in India. Simply speaking, in India, nearly every adult has access to banking services, a way to remotely authenticate themselves (through Aadhar), and access to the internet through efficient and affordable mobile connectivity.

 

A combination of these factors makes India the third largest fintech ecosystem in the world, with rapidly surfacing unicorns. India has witnessed an exponential growth of 367% in customers participating in digital transactions in the last five years, with an active customer base of more than 340 million.

Churpi is prepared from the milk of Arunachali yak, which is a unique yak breed found in West Kameng and Tawang districts of Arunachal Pradesh. Yak Churpi, a naturally fermented milk product made from yak milk, has been given recognition as a Geographical Indication (GI) of Arunachal Pradesh.

 

Dr Mihir Sarkar, Director, ICAR- National Research Centre on Yak said it is a major boost to the pastoral production systems and yak rearing in the country.

 

Churpi is an excellent source of proteins and is frequently used as a substitute for vegetables by tribal yak herders in the vegetation-starved cold and hilly mountainous regions of the state. It is also mixed in vegetable or meat curry and is eaten with rice as a staple food in tribal households. It is considered an integral part of the tangible cultural and tribal heritage of Arunachal Pradesh- says Sarkar.  

 

Arunachali yak breed is reared by tribal yak pastoralists known as Brokpas who migrate along with their yaks to higher reaches (at an altitude of 10,000 ft and higher) during summers and descent to mid-altitude mountainous regions during winters. Since the product is prepared at such a high altitude, it is also expected to provide benefits to the tribal herders against cold and hypoxia besides providing enriched nutrition, Dr Vijay Paul, Principal Scientist of NRC-Yak who was associated with the GI application process informed.

 

ICAR-National Research Centre on Yak, Dirang applied for registration of this unique yak product.  The institute is closely working with the Brokpas rearing Arunachali yaks and is helping them through research and extension support. The services rendered by the institute assume greater significance in the light of the fact that yak population throughout the country has been declining at a fast pace due to enormous hardships and dwindling gains associated with pastoral yak rearing. The registration of yak Churpi of Arunachal Pradesh as a GI is going to serve the cause of yak conservation and yak pastoralists’ socio-economic upliftment.

The Food Safety and Standards Authority of India (FSSAI) on Thursday clarified that addition of protein binders in milk and milk products are not permitted. Additives that have not been specified in the Food Safety and Standards (Food Products Standards and Food Additives) Regulation, 2011, cannot be added, a release said.

 

Sources said this clarification comes at a time when certain players are adding protein binders to offer thicker texture in dairy products such as curd.

 

'Binding agents have emerged as an important and required class of ingredients to manufacture a wide range of new food products, especially semi-solid or solid foods. However, such application is known to affect the digestibility of the protein bound and thus can affect the biological and nutritive value of milk proteins. Protein binding also influences the bioavailability and distribution of active compounds,' the FSSAI noted in an advisory.

 

The food safety authority added that every dairy product has its unique and 'well-accepted' textural and other sensory characteristics. 'Hence, addition of any binding material like protein binders to milk and milk products is not warranted to modify the textural or sensory parameters,' it added.

 

The food safety authority pointed out that milk protein on its own is a good source of essential amino acids; they are easily digestible and do not contain any anti-nutritional factors like many plant-based proteins. 'In addition, milk and milk products contain a wide array of proteins with biological activities ranging from antimicrobial ones to those facilitating absorption of nutrients, as well as acting as growth factors, hormones, enzymes, antibodies and immune stimulants,' it added.

 

FSSAI said it remains 'dedicated' to maintaining 'natural integrity and quality' of food products and will continue to prioritise the health and well-being of the consumers.

 

The UN Conference on Trade and Development (UNCTAD) expects growth of the world economic output to decelerate to 2.4% in 2023, before registering a small uptick to 2.5% in 2024.

 

In its trade and development report issued Wednesday, the multilateral body called for a change in policy direction, including by leading central banks, and accompanying institutional reforms promised during the Covid-19 crisis to avert a lost decade.

 

'The global economy is flying at 'stall speed', with projected growth in 2023 of 2.4%, meeting the conventional criteria for a global recession. The entire global economy, except East and Central Asia, has slowed since 2022,' UNCTAD said.

 

It forecasts India to grow 6.6% in 2023 and 6.2% in 2024.

 

Highlighting that globally, the post-pandemic recovery is divergent, it said: 'While some economies, including Brazil, China, India, Japan, Mexico, Russia and the United States have demonstrated resilience in 2023, others face more formidable challenges'.

 

In India, the external sector – alongside the private and government sector – has contributed to domestic growth, partly helped by many countries redirecting trade flows away from the Russian Federation, with which India maintains a direct relationship, the Geneva-based organisation said.

 

While growth in 2022 moved back in line with pre-pandemic rates, it is expected to continue into next year, according to the report.

 

'However, other indicators still suggest caution: with rates of unemployment still standing at 8.5% in June 2023, employment remains disappointingly low by historical standards. Inequality has also significantly increased – as suggested by data on real wages and the labour share – which could hinder growth,' UNCTAD said.

 

It highlighted that India’s 10 largest firms account for 8% of its total exports, although the total number of exporting firms exceeded 1,23,000 in 2021.

 

As per the report, in 2022, South-South trade accounted for around 54% of South’s total trade. South-South trade has also grown steadily in food, fuel, ores and metals, and fertilizers, with many developing countries, including Brazil, China, India, Indonesia and Thailand playing major roles.

 

Despite the announced rounds of production cuts by OPEC+ countries in April 2023 – representing a reduction of over 1 million barrels per day – a significant increase in oil production from non-OPEC+ countries as well as a substantial release of strategic petroleum reserves by OECD member countries has more than offset the agreed OPEC+ cuts.

 

For its part, western sanctions on Russian crude exports have mostly resulted in redirecting these flows to countries like China and India at a discounted price, meaning that their impact on global oil supplies has been minimal while also having a downward influence on global crude prices, the UNCTAD noted.

 

Debt worries

As per the report, the global economy is at a crossroads, where divergent growth paths, widening inequalities, growing market concentration and mounting debt burdens cast shadows on its future.

 

'Debt burdens, the silent weight on many developing countries, remain a major concern,' it cautioned and added that S

soaring debt requires urgent multilateral solutions and a sovereign debt restructuring mechanism.

 

Rising interest rates, weakening currencies and sluggish export growth have combined to squeeze the fiscal space for essential needs, transforming the growing debt service burden into an unfolding development crisis.

 

The multilateral body called for coordination between national and supranational authorities to manage inflationary pressures and ensure price stability, foster an environment conducive to investment-led growth, implement measures to reduce income disparities, improve real wages and reinforce social protection systems.

 

It said that the role of central banks needs to be expanded beyond inflation targeting to include a broader focus on long-term economic sustainability.

Although onion imports from India remain suspended following the export price hike by New Delhi, state-run Trading Corporation of Bangladesh (TCB) has continued to import onion through the Benapole land port.

 

The TCB will sell the onion to the low income group of people in open market at fair prices in different parts of the country. The customs and port authorities have been extending cooperation to the TCB so that the onion is released from the port as soon as possible. Meanwhile, onion prices have gone skyrocketed in the market after import from India has declined due to various complications. However, retailers have expressed the hope that the onion prices may decline in the market as the government has started import of onion through the TCB.