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The World's Timber Resources, Shortage Of Raw Building Materials Industry Or Be Affected Home

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As we all know, the tsunami to the Chinese flooring, furniture industry, the impact is gradually emerging. As Indonesia and other countries export austerity policies so that the world’s tight supply of raw wood materials, which over-rely on foreign purchases of domestic raw timber downstream firms will face difficulties. The industry has set their sights on South America, Africa, but if unable to grasp the upper reaches of resources, still difficult to swallow the bitter fruit of skyrocketing costs.

It is understood that the original timber and downstream products in China a major trading nations of imports followed by Malaysia, Indonesia, the United States, Russia, Thailand. Including Indonesia, Malaysia, Thailand, is a victim of the tsunami, the reconstruction of those countries themselves will need a large number of the original timber, exports will be affected, the original timber prices will also be adversely affected.

In fact, after the Spring Festival from 2004, the floor on the general rise in prices of raw materials, one year or around 10% of individual species and even reached 20%. “Southeast Asia’s forests in years of excessive logging, the forced pressure of environmental protection, governments have started to implement restrictions on the production and export of precious raw timber policy.” The trader said. Indonesia, for example, the Government in order to protect the ecological environment and to maintain the original plywood and other wood product prices, since January 2002, the moratorium on log exports, and since June 8, 2002 from a permanent ban on log exports. Because of the tsunami reconstruction, under pain of log smuggling, heavy-handed.

    However, the industry thought that the tsunami is only “the last straw the camel’s back.” A former timber trader said that the tsunami on the original timber imports reflected in the psychological impact of the first last year, most domestic manufacturers have inventory, but worried that the future of the original timber imports would be reduced, Follower of fashion exporters who will uplift the price.

EMC is currently 70% of the original wood from Brazil, 15% from Indonesia, and the remaining 10% from Russia, Africa and Myanmar together accounted for 5%. Increasingly tight supply in Southeast Asia have been unable to meet China’s growing demand for imports of raw timber, but that kind of success stories, like Lu Weiguang, or rare.

In Brazil, the acquisition of 1,000 square kilometers of forest resources, has been firmly grasp the upstream resources of Shanghai Anxin Flooring Co., Ltd. Lu Weiguang, president, said the original timber prices this year will be a threshold to have the resources and do not distinguish between resource companies. “I estimate that 40% of the domestic enterprises will wind up on the floor, and for EMC is the original timber prices is actually good news.” Lu Weiguang, said with a smile.

It is reported that Australia, Europe, Africa, the Americas had a few years ago the original timber into China now imports continue to increase. Lu Weiguang, appears in “Who’s to grasp the upper reaches of resources, who can win the market.” The current domestic price of the original timber predicament may be a good inspiration, resources must also grasp the decentralized procurement channel.
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Source by wuwu

Visa On Arrival Indonesia

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VISAS
All travelers to Indonesia must be in possession of a passport that is valid for at least six months from the date of arrival, and have proof (tickets) of onward or return passage.

Visa-on-Arrival:
The Indonesian Government extends Visa on Arrival (VoA) to nationals of 63 countries which can be obtained at designated entry airports and sea ports. Visa-on-Arrival are valid for 30 days and are extendable with another 30 days to be applied at Immigration offices in Indonesia.

Please note that starting 26 January 2010, the 7-day Visa-on-Arrival has been discontinued.

Countries extended Visa-on-Arrival facility are:
1. Algeria, 2. Australia, 3.Argentina, 4. Austria, 5. Bahrain, 6. Belgium, 7. Brazil, 8. Bulgaria, 9. Cambodia, 10. Canada, 11. Cyprus, 12. Denmark, 13. Egypt, 14. Estonia, 15.Fiji, 16. Finland, 17.France, 18. Germany, 19.Greece 20.Hungary, 21.Iceland, 22.India, 23.Iran, 24. Ireland, 25.Italy, 26. Japan, 27.Kuwait, 28. Laos PDR, 29.Latvia, 30.Libya, 31. Lithuania, 32.Liechtenstein, 33. Luxemburg, 34. Malta, 35. Maldives, 36.Monaco, 37. Mexico, 38. New Zealand, 39. the Netherlands, 40. Norway, 41. Oman, 42. Panama, 43. The People’s Republic of China, 44.Poland, 45. Portugal, 46.Qatar, 47.Rumania, 48.Russia, 49.South Africa, 50.South Korea, 51.Switzerland, 52.Saudi Arabia, 53. South Africa, 54.Spain, 55.Suriname, 56.Sweden, 57.Slovakia, 58.Slovenia, 59.Taiwan, 60. Tunisia. 61.the United Arab Emirates, 62. the United Kingdom, 63. The United States of America.

Entry Ports Where Visa-on-Arrival May Be Issued are:

Airports:

* Soekarno-Hatta in Jakarta
* Ngurah Rai in Bali
* Sultan Syarif Hasim in Pekanbaru
* Minangkabau in Padang
* Juanda in Surabaya and
* Sam Ratulangi in Manado
* Polonia in Medan
* Hang Nadim in Batam
* Halim Perdana Kusuma in Jakarta
* Adi Sucipto in Jogjakarta
* Adi Sumarmo in Surakarta
* Husein Sastranegara in Bandung
* Ahmad Yani in Semarang
* Selaparang in Mataram
* Ei-Tari in Kupang
* Hasanuddin in Makassar
* Sam Ratulangi in Manado
* Sepinggan in Balikpapan
* Supadio in Pontianak

Authorized seaports are at Batam: Sekupang, Batuampar, Nongsa, Marina, and Teluk Senimba, Bandar Bintan, Talani Lagoi, Tanjung Balai Karimun, and Bandar Sri Udana Labon in the Riau archipelago, Sri Bintan Pura in Tanjung Pinang;  Belawan port and Sibolga in North Sumatra, Yos Sudarso Tanjung Perak in Surabaya; Teluk Bayur of Padang; Tanjung Priok harbor at Jakarta; Padang Bai and Benoa ports in Bali; the port of Jayapura; Bitung; Tanjung Mas in Semarang, Central Java; Tenua and Maumere in East Nusa Tenggara, Pare-Pare and Soekarno Hatta port in South Sulawesi.

Free Tourist Visa
Free Tourist short stay visas for  30 days are extended to tourists from 12 countries, namely from Brunei Darussalam, Malaysia, Singapore, the Philippines, Thailand, Vietnam, and Hong Kong SAR, Macao SAR, Chile, Equador, Morocco and Peru,

VISA Application at Indonesia Embassies or Consulates

Visitors from other countries must apply for visa at Indonesia Embassies or Consulates in their home country. In addition, the visa cannot be replaced with any other immigration letters. The visa shall then be administered by Visa Officer in the presence of the applicant concerned.

You may find information on Indonesia embassies and consulates contact details at the Ministry of Foreign Affair website on the following direct link: www.deplu.go.id

For further information on applying for visa to Indonesia, you may browse our FAQs.

Free entry visa is also provided to delegates registered in a conference that is officially convened. In addition, tourist visa can be obtained from every Indonesian Embassy or Consulate. You can visit Indonesia through certain means and gates, by air via Jakarta, Bali, Medan, Manado, Biak, Ambon, Surabaya and Batam; by sea via Semarang, Jakarta, Bali, Pontianak, Balikpapan, Tanjung Pinang and Kupang. Maximum stay in Indonesia is two months.

Airport Tax
An airport tax of Rp150,000 is levied by airports on departing passengers on international flights and Rp.25,000 for those on domestic routes.

Tipping
Most hotels add a 10% service charge to the bill on top of the 10% tax. In restaurants where service charge is not added, a tip of 5 to 10% on the bill will be appropriate depending on the service and type of establishment.

Customs
Maximum items allowed by customs when you visit Indonesia:

* 1 liter of alcoholic beverages
* 200 cigarettes OR 50 cigars OR 100 grams of tobacco
* Reasonable amount of perfume per adult, meaning if you arrive drenched in perfume the customs probably will not mind you carrying loads of bottles.
* Cameras, video cameras, portable radios, cassette recorders, binoculars and sport equipments are admitted provided they are taken out on departure. They must be declared to Customs.
* You are prohibited to carry:
* Firearms
* Narcotics drugs
* Pornography materials
* Chinese printing and medicines
* Transceivers and cordless telephone
* Films, pre-recorded video tapes, laser discs, VCDs, DVDs must be screened by Censor Board.
* Import or export of foreign currencies and travelers’ checks are allowed. However, the import and export of Indonesia currency, exceeding 100 million Rupiah is prohibited.

Further information on customs and taxes in Indonesia, log into www.beacukai.go.id

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Source by Samuel Gerry

Aussie Upholstery and Drapery Fabric is the Best in the World

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Warwick is an upholstery and drapery fabric wholesaler and only sells directly to furniture trade customers on a wholesale basis. There are showrooms around Australia, New Zealand and the United Kingdom that welcome the public and traders.

Since 1966 Warwick has supplied soft furnishing fabrics which have been quality tested to world standards. The Warwick fabric family has always been at the cutting-edge of fabric trends. In the 1960’s and ‘70’s it was vinyl and velvet; in the ‘80’s and ‘90’s it was range development and international distribution. Today Warwick Fabrics is a household name in innovation, quality and service around the world.

With companies based in Australia, the United Kingdom and New Zealand, and global distributors in Hongkong, Indonesia, Japan, Korea, Malaysia, Mauritius, Philippines, Singapore, South Africa, Taiwan, Thailand and Vietnam, ever-expanding Warwick Fabrics is at the forefront of international design and distribution, exporting interior fabrics and curtain fabrics textiles to over 50 countries.

The first ever Australian-owned company to receive the Queen’s Award for export achievement, Warwick Fabrics (UK) together with Warwick’s other operations continue to meet the challenges of today’s competitive worldwide markets by developing different curtain fabrics, decorating fabrics and furnishing fabrics in partnership with local mills that, in turn, provides enormous benefits for the host domestic industry.

Warwick guarantees to replace any fabric which is found to be faulty as a result of a manufacturing defect that did not pass performance ratings and care instructions.

Another innovation from Warwick is the annual Dreamweaver Design Award, a woven textiles and decorative fabrics competition sponsored by Warwick for current design students and graduates to showcase their talents on the world stage. Encouraging students and emerging designers while promoting Australian made fabric and textile design in local and overseas markets; entrants must design woven upholstery or furniture fabrics suitable for domestic furniture and make a presentation to a panel of industry representatives. Three finalists will be selected to work with a Warwick design team before having their fabric commercially woven at Bekaert Textiles. Finally, the woven designs are manufactured into a piece of upholstered furniture by Colby Furniture for presentation at the Furnitex Exhibition in July where the winner will be announced.

The Dreamweaver Award winning designer travels with Warwick to Belgium to experience the world’s largest upholstery fabrics exhibition, Decosit. Grand prize includes air tickets, 5 nights’ accommodation, $500 expense account, Decosit show entry and mill visit. The winning design then becomes the property of Warwick Australia.

For more on quality fabrics, visit http://www.warwick.com.au/.

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Source by Ace

Polyester Filament Yarn – A Brief Overview

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Polyester Filament Yarn has been on of the good textile products in greater demand due to its tensile capacity. Many products right from fabrics to hosiery and also some home textiles products.

Let me first begin with the manufacturing of filament yarn and then polyester which are amalgamated by a process. Partially oriented tow or partially oriented yarn is made by winding the filament-receiving cylinder winds at a speed slightly higher than the speed of extrusion. Filaments from a large number of spinning positions are collected to form tow, which can later be cut into staple. If the fiber is to be used as continuous filament yarn, the filaments are wound onto metal cylinders, paper tubes, or bobbins. The diameter, or fineness, of spun yarn, filament yarn, or monofilament is designated by the term denier, which is the weight in grams of 9,000 meters of yarn or filament. Yarns for apparel and home furnishings usually have deniers ranging from 80 to 160.

Polyester Fiber spinning and drawing equipment can usually be used to produce other melt-spun fibers such as nylon 6 and nylon 66, with relatively minor modification. Waste polyester polymer or fiber is sold, reprocessed, burned, or buried, depending largely on the purity. Some of the leading licensors of polyester fiber technology are Zimmer, DuPont/Chemtex, Inventa, Karl-Fischer, and NOY. Polyester fibers are produced by extruding molten polyethylene terephthalate (PET) through a metal plate or thimble with fine holes called a spinnerette ("spinning"). Next, the fibers are drawn to further orient the polymer molecules, and to adjust the tensile strength, elongation, modulus, dyeability, and other physical properties of the fiber. The fibers are further processed by draw-twisting, draw-texturizing, spin-drawing, crimping, coiling, and looping.

China, USA and West Europe have been major polyester importing countries in the last 3 years. On an average China imported close to 950 thousand tons of polyester in the last 3 years (2002-2004), which was about 10% of China annual consumption. Similarly, USA and West Europe imported around 500-600 thousand tons, which met 30% and 40% of their consumption respectively. Among exporters, Taiwan and Korea are large polyester exporters with close to 700-900 thousand tons of exports in last three years. To a smaller extent, Malaysia, Thailand and Indonesia exported about 200-300 thousand tons of polyester a year in the last three years. USA too has exported around 700 thousand tons of polyester per annum during 2002 – 2006.

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Source by Rakesh P

The Origin Of Cultured Pearls

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For more than 4000 years pearls have been collected, sought, bought and prized as the world’s only organically produced gemstone. Long before man learned how to facet diamonds or cut emeralds, pearls were regarded as the epitome of luxury jewelry, and were only afforded to the most wealthy and influential.

For thousands of years people of all cultures sought the elusive secret of pearls why did they grow, and how did they grow. Theories ranged from dewdrops and tears of the God’s, to the most commonly accepted urban legend of a trapped grain of sand. But until the end of the 19th century scientists and shell farmers were only able to produce blister pearls, or pearls attached to the inside of mollusk shells.

This all changed when British-expatriate marine biologist William Sawville-Kent developed a way to stimulate a mollusk to produce whole pearls in Australia. His technique involved planting a rounded bead inside a mollusk. This had been attempted before, but he discovered the real secret. Along with the bead he implanted a small piece of donor mollusk mantle tissue. The perfect combination was born. This small piece of tissue acted like a catalyst of pearl production. It grew into a pearl sac which enveloped the bead, coated it with nacre and produced a pearl.

William Sawville-Kent died shortly after discovering this secret technique, but not before sharing his secret with two Japanese nationals; a Mr. Tatsuhei Mise and Mr. Tokishi Nishikawa. Mise and Nishikawa returned to Japan with this technique and immediately filed for patents. At this same time pearl farmer Kokichi Mikimoto was culturing blister pearls but desperately seeking the secret to whole pearl culturing. The secret had finally come to Japan!

After multiple court battles Kokichi Mikimoto finally succeeded in securing a patent for whole pearl cultivation in 1916. The cultured pearl industry it was called the Mikimoto Pearl Company.

For more than 50 years the Japanese closely guarded their national secret and maintained a virtual monopoly of pearl cultivation and marketing. Even ventures outside of Japan in Australia, French Polynesia, Thailand, and Burma were under the direction of Japanese grafting technicians and operational specialists. Technicians swore an oath to never reveal the secret of pearl culture.

This well-kept secret remained with the Japanese until the late 1950s and early 1960s when other countries finally developed the same methods for pearl culturing. China began culturing akoya pearls in the 1960s as did Tahiti with black South Sea pearls. Australia soon followed suit producing the largest and most valuable of all cultured pearls South Sea pearls from the Pinctada maxima pearl oyster.

Today pearl farms are found all over the world and the Japanese dominance over the industry is all but gone. There are now thousands of pearl farms in China, hundreds in French Polynesia, many in Australia Vietnam and Korea, and even some small operations in India, Venezuela and Mexico. Until recently there was even a freshwater pearling operation in Tennessee.

This wide-spread pearl culturing technique has finally put owning fine pearl jewelry within the reach of nearly everyone. Freshwater pearls can be purchased for as little as a few dollars a strand for low-grade but genuine pearls. High quality freshwater and akoya pearls can now be secured for just a few hundred dollars. Even Tahitian pearls no longer cost tens of thousands of dollars per strand. Pearls are now a beauty afforded to everyone.

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Source by qifupearl

Biotechnology and Environmental Biosafety

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BIOTECHNOLOGY AND ENVIRONMENTAL BIOSAFETY
IN THE FIELD OF AGRICULTURE AND FOOD PRODUCTION

Dr. Ashok Kumar Panigrahi, Balasore.

Techniques questioned:

Genetical modification of Agricultural Seeds- cotton, soya, maize, potato, rice and trees in the forest.

Prologue
The all encompassing big macabre issue discussed world wide today is the invasion of the good science, ‘biotechnology’ to virtually every nook and corner of the biosphere and practically turned to the bad science, ‘thanotechnology’ for every living element of concern and speeding up the rate to total annihilation of the biosphere.It all began with a little known episode in 1980, that is the US Supreme Court decision in the case, Diamond vrs. Chakrabarty, where the highest US court decided that biological life was legally patentable.
History
Anand Mohan Chakrabraty a microbiologist and employee of General Electric Company (GE) developed a type of bacteria that could ingest oil from oil spills. GE rushed for a patent in 1971 which was turned down as life forms were not patentable. GE sued and won. In 1985 the US Patent and Trademark Office (PTO) ruled that the Chakrabraty ruling could be further extended to all plants, seeds and plant tissues or to the entire plant kingdom.

US company W.R. Grace was granted 50 US patents on the Indian Neem tree which even included patenting indigenous knowledge of medicinal use of the Neem products (since been leveled ‘biopiracy’). In 1988 PTO issued patent on animal to Harvard Professors, Philip Lader and Timothy A. Stewart who had created a transgenic mouse having genes of the chicken and human being. In 1991, PTO granted patent to human stem cells and later to human genes. Biocyte was awarded European patent on all umbilical cord cells from foetuses and new born babies even without the permission of the ‘donors’. European Patents Office (EPO) received applications from Baylor University for the patenting of women who had been genetically altered to produce GE proteins in their mammary glands.

Baylor University essentially sought monopoly rights over the use of human mammary glands to manufacture pharmaceuticals. Attempts also were made to patent blood cells of indigenous people of Panama, the Solomon Islands and Papua New Guinea. Within a decade the ‘Chakrabarty ruling’ of the US Supreme Court revolutionised the research and developments in biotechnology involving microbes to human beings which led it to be branded as bad science, “thanotechnology” in the following decade and hated world wide. Biotech companies engaged in biotech pharmaceuticals quickly moved to agriculture, obtained patents on seeds, buying up small seed companies, destroying their seed stocks and replacing the same with GE seeds. In the last decade several companies have gained monopoly control over such seeds world wide as soy, corn and cotton ( used in processed foods via cotton seed oil). As a result, nearly 2/3 rd. of such processed foods showed some GM ingredient in them.

However, even without any labelings, the concerned US consumers were aware of such pervasive food products of biotech companies. Immediately the companies knew that aware citizen kept away from GM foods and they organized to convince the regulators not to require such labelings. Somewhat shockingly the bureaucratic risk evaluators in the US turned a blind eye towards the ill motives of the bio-tech companies.
The point of concern
All genetical modifications are based on recombinant DNA technology. The present society is faced with unprecedented problems not only in the history of science, but of all life on earth. The GE technology enables the profit oriented biotech companies the capacity to redesign the living organisms, the products of three billion years of evolution. In the words of Dr. George Wald, Nobel Laureate in Medicine (1967), Higgins Professor of Biology at the Harvard University, “potentially it could breed new animal and plant diseases, new sources of cancer and novel epidemics”.
On Record
In 1989, dozens of Americans died and over several thousands were afflicted and impaired owing to the ingestion of a genetically altered version of food supplement L – tryptophan. A settlement of $ 2 billion was paid by Showa Denko, Japan’s 3rd. largest chemical company (Mayeno and Gleich, 1994)

In 1996, pioneer Hi-Bred spliced Brazil nut genes into soy beans. Some individuals are so allergic to this nut that they go into apoplectic shock which can cause death. Animal tests confirmed the peril and the product was soon removed from the market before any fatalities occurred. In the words of Marion Nestle, HOD Nutrition, New York University, “the next case could be less than ideal and public less fortunate.”

In 1994 US Food and Drug Administration approved Monsanto’s r-BGH, a GE growth hormone, for injecting the dairy cows to enhance their milk yield in spite of experts warning that the resultant increase of IGF-1, a potent chemical hormone, linked to 400 – 500 % higher risks of human breast, prostrate and colon cancer. According to Dr. Samuel Epstein of University of Chicago, ” it induces the malignant transformation of human breast epithelial cells.” Studies on Rats confirmed the suspicion and showed damage to internal organs with r-BGH ingestion. Even FDA’s own tests showed a spleen mass increase by 46%, a state that is a prelude to ‘leukemia’. The argument that the substance get damaged by pasteurization was nullified by 2 of Monsanto’s own scientists, Ted Elasser and Brian Mc Bride who found only 19% of the hormone get destroyed after 30 minutes of boiling (pasteurization takes only 30 seconds). Inspite of Canada, EU, Australia, New Zealand and even the UN’s Codex Alimentarius refusing to endorse the GE hormone, the same is freely marketed in the US by Monsanto. It was found out that 2 US bureaucrats namely, Margaret Miller and Micheal Taylor in the US FDA who helped Monsanto’s r-BGH pass the risk factor barrier were in fact earlier Monsanto employees.

Several other GM products approved by US FDA involve herbicides that are commonly known as ‘carcinogenic’, viz – ‘bromoxiny’l used on Bt. Cotton and Monsanto’s ‘round-up’ or Glufosinate used on GM soy, corn and canola. Sharyn Martin, a researcher, has opined that a number of auto- immune diseases are enhanced by foreign DNA fragments which come with G M food that are not fully digested in the human stomach and intestine. These DNA fragments absorbed into the blood stream mix with normal DNA through recombination and are, hence, unpredictable. Such DNA fragments have been found to be in GM soy and other GM products available in the market.
The fear factor
Professor Joe Cummins, Professor Emeritus of Genetics, University of Western Ontario said, ‘ Virus resistant crops are becoming the mainstay of biotech industries. These crops carry foreign virus genes which are genetically engineered to empower the plants to resist virus attacks. Most of the fruits, vegetables and baby food marketed in the US are of this category. Lab. experiments have shown that ‘the GE viral genes in food potentially give rise to new viruses – deadlier than the viruses that the crops are being protected from’, a fact that is quite alarming.
In 1986, it was reported that GE plants having TMV genes delayed the development of the disease and this report opened the flood gates to create resistance to a range of other viruses. But the fact is that viral coat protein production in GE crop does not block the virus entering into the plant cell rather the transgene is exposed to the nucleic acids of many viruses that are brought to the plant by insect vectors. A number of study results are there to show that plant viruses can acquire a variety of viral genes from GE plants through recombination.
For examples-
* Defective Red Color Mosaic Virus lacks the gene enabling it to move from cell to cell and hence is not infectious ,but recombined with a copy of that gene in GE Nicotina benthamiana plants, regenerated the infectious RCMVirus.
* GE Brassica napus and Nicotiana bigelovii containing ” gene- vi “, a
translational activator from the Cauliflower Mosaic Virus (CaMV) which
recombined with the complementary part of a virus missing that gene, and
produced new infectious virus in all GE plants.
* N. benthamiana expressing a segment of the Cowpea Chlorotic Mottle Virus (CCMV) coat protein gene recombined more frequently with the defective virus missing that gene.
* N. benthamiana was transformed with 3 different constructs containing coat protein coding sequence of African Cassava Mosaic Virus (ACMV). The transformed plants were inoculated with a coat protein deletion mutant of ACMV that induces mild systemic symptoms in control plants. Several such inoculated plants of the transgenic lines developed severe systemic symptoms typical of ACMV confirming recombination had occurred between mutant viral DNA and the integrated construct DNA resulting in the production of recombined viral progeny with ‘ wild type ‘ virulency.

The CaMV recombination, when and where ?

CaMV 35 s promoter gene, is the ubiquitous viral sequence in all the transgenic (GM) plants which are either already commercially released in the market or undergoing field trials. This gene is needed by all GM plant producers because it drives the production of gene messages from the genes inserted to provide herbicide tolerance, insect- pest resistance, antibiotic resistance and a range of other functions deemed to improve the commercial quality of the crop plant. In the absence of this ‘promoter gene’, the ‘inserted gene’ remains inactive, while in its presence the gene activity is maintained at a high level in all of the plant tissues irrespective of the changing environmental conditions which drastically affect the activity of ‘promoters’ native to the crop plant.

The 2 events which occurred in 1999 provoked Professor Cummins and other independent scientists to draw global attention to such alarming industrial scientific maladies that may have disastrous consequences. In fact Professor Cummins had in 1994 questioned the environmental safety of the release of CaMV 35 s promoter gene through the GM plants. Experimental evidences available indicated that the frequency of genetic recombination of CaMV 35 s promoter gene was much higher than those of other viruses. When recombinant CCMV was recovered from 3% of transgenic N. benthamiana containing CCMV sequences, recombinant CaMV was recovered from 36% of transgenic N. begelovii.
Event -1. Scientists of John Innes Research Institute published a paper showing that the CaMV 35 s promoter has a recombination ‘hot spot’ meaning it is prone to break and reassociate with other pieces of genetic material, may be of other viruses.
Event- 2. Dr. Arpad Pusztai, a senior scientist working in the UK govt. funded Rowett Institute in Scotland was sacked from his job because he revealed the results of feeding experiments suggesting that transgenic potatoes were unsafe. The lab. Rats fed with GM food showed increased lymphocytes in gut lining indicating damage to intestine from non specific viral infection.
Scientists Mae- Wan Ho and Angel Ryan published a paper in October 1999 issue of Journal of Microbial Ecology in Health and Disease warning that the CaMV 35 s promoter is interchangeable with promoters of other plant and animal virus and is promiscuous and functions efficiently in all plants, green algae, yeast and E. coli. Its recombination hot spot is flanked by multiple motifs and is similar to other recombination hot spots such as that of the Agrobacterium –T DNA vector, the other most commonly used gene, in making transgenic plants. They also claimed to have demonstrated in the lab. of the recombination between viral transgenes and infecting viruses.
In an article published in the online journal of European Food Research and Technology (2006) authors ( Marit R. Myhre, et. al. ) claimed to have constructed expression vectors with CaMV 35 s promoter inserted in front of 2 ‘reporter genes’ encoding firefly luciferase and green fluorescent protein (GFP), respectively and performed transient transfection experiments in the human enterocyte – like cell line, Caco – 2 and found that the CaMV 35 s promoter genes drive the expressions of both the ‘reporter genes’ to significant levels.
Super viruses
Promoter viral genes such as CaMV 35 s can mix with other genes, viral, bacterial and others including those of the retrovirus like HIV and Hepatitis B. CaMV is itself a para retrovirus. With retro transposons available on all plant genomes (which are mobile in nature) and a host of viruses together with CaMV 35 s promoters, possibility of super virus origin is quite certain.

In a Canadian study, a plant infected with a Crippled Cucumber Mosaic Virus (CuMV) that lacked a gene needed for movement between the plant cells, the crippled CuMV became active in less than 2 weeks – an evidence of gene mixing, having acquired the much needed activator from the surrounding – an evidence of ‘ horizontal gene transfer ‘.

The international Biosafety Protocol signed by most independent nations at Montreal in January 2000 will be of no use if things continue to move in this direction.
Threat to Antibiotics via plants
Much of genetic implantation uses a ‘marker’ to track where the gene goes in the cell. GM Maize plants use an ampicillin resistant gene. The British Royal Society called for the banning of this marker as it threatens a vital antibiotic’s use.
Resurgence of Infectious diseases
‘The Microbial Ecology in Health and Diseases’ Journal reported in 1998 that genetic modifications in food crops may cause resurgence of infectious diseases. It cited the cases of resistance to antibiotics, formation of new and unknown viral strains, lowering of body immunity through altered food etc. as the drastic fallouts of bioengineering with the genes. It also indicated the occurrence of horizontal gene transfer of transgenic DNA among bacteria. It cited the cases of bacteria of the mouth, pharynx and intestines taking up transgenic (viral) DNA in domestic animals through their food which can be passed easily to human beings through their milk and meat.

Increased food allergies
The loss of biodiversity in our food supply has grown in parallel with the increase in food allergies. Mass case studies indicate that our body cells and the immune system seems to reject excess ‘homogeneity of our
food’. Monsanto’s own analysis of glyphosate –resistant soya showed the GM line contains 28% more Kuniz – trypsin inhibitor, a known allergen and nutrient inhibitor.
Lowered Nutrition
A study made by Dr. Marc. Lappe in 1999 and published in the ‘Journal of Medicinal Food’ showed that GM foods have lower levels of nutrients – especially ‘phyto estrogen’ compounds which protect the body from heart disease and cancer. A study on the consumption of GM Vita Faba, a bean of the soy family, caused increase in estrogen levels. This is alarming since the same is used in baby food. Milk from cows injected with r-BGH (a GE growth hormone) contains substantially higher levels of pus, bacteria and fat cells.

Unnatural foods
Sometime back Monsanto announced it had found ‘unexpected gene fragments’ in their ‘round-up ready’ soybeans. It is a well known fact that modified proteins do exits in all GE foods , the proteins never before ingested by humanity. FDAs’ own microbiologist Dr. Louis J.Pribyl had in 1992 warned that pleiotropic (unintended and/or uncontrolled) effects do occur in GE plants at frequencies exceeding 30 % of known and unknown toxicants together with undesirable alterations in the levels of nutrients which might escape breeders notice. FDA’s biotechnologist James Marayanski also had warned about lack of consensus among FDA’s scientists as to the ‘sameness’ of GM foods compared to non GM foods.

Environmental Impacts
Genetic modifications were sought in crop plants to increase production and reduce use of toxic agro chemicals. But nothing
could be further from truth. Professor David Ehrenfield, Professor of Biology, Rutgers University has rightly said, ” What has come out in the last decade from the GE crops are- increased sales of agrochemicals and production of nutrient devoid hazardous food.” Ontario(US) govt. study also showed that herbicide use was on the rise largely due to the cultivation of GM crops.

Soil toxicity
All GM crop plants are engineered to resist all types of toxins such as herbicides and pesticides etc. and these chemicals are sold by the same biotech companies who have developed such GE crop plants as if to boost their agrochemical product sales. Scientists like R.J. Golburg predicted long ago that GM crops will triple the sale of toxic agrochemicals and over the years he is found to be correct. According to US Fish and Wildlife Services, “Monsanto’s spray chemical ‘Round-out’ (a herbicide) already threatens 74 endangered species in the US. It attacks other plants’ photosynthetic activities”. Malcolm Kane (former Head of Food Safety for Sainsbury’s chain of Super markets) revealed that the US govt. in order to accommodate Monsanto, raised pesticide residue limits in food form 6 ppm to 20 ppm. According to a study report published by the University of California, “glyphosphate (the active principle of ‘round-up’) was the 3rd leading cause of farm workers’ illness. At least 14 persons died of ingesting ‘round-up’.”

Soil-sterility and pollution
In Oregon, scientists found out that GM bacterium, Klebsiella planticola, engineered to breakdown agri wastes to produce ethanol and the residual waste component as compost material – rendered the soil sterile. It eliminated essential soil nutrients like nitrogen and killed the nitrogen capturing fungi. A similar result was also found with the GM bacteria, Rhizobium melitoli. Professor Guenther Stotzky of New York University found out that the same toxins that eliminated the Monarch butterflies were also released by the roots of GM plants and polluted the soil which lasted up to 18 months and depressed soil microbial activity. An Oregon study also showed that GM soil microbes killed wheat plants in the lab. when added to the soil.

Loss of seed sovereignty

Some time back the US ‘Time’ magazine referred to the massive trend by large seed corporations to buy up small seed companies, destroying their seed varieties and replacing the same with their GM seeds of patented and control brands as ‘ the death of birth’. These GM seed companies additionally get the farmers sign contracts not to save their seeds – forfeiting their sovereign rights to seeds.

Super weeds

It has been shown that GM Bt. endotoxins remain active in the soil up to 18 months (Marc Lappe and Britt Bailey) and can be transported to wild plants creating super weeds that are resistant to pests – thus offsetting the balance of nature. Studies in the UK ( National Institute of Agricultural Botany ) and Denmark (Mikkelsen, 1996) showed the growth of super weeds nearby in just one generation. US and UK studies also showed that the super weeds were resistant to glufosinate ( a herbicide). Another US study showed 20 times more genetic leakage with GM plants through horizontal gene transfer. A French study showed that GM canola could transfer genes to wild radishes. According to ‘New Scientists’, a farmer in Alberta, Canada, between year 1997 and 1999 planted 3 fields with different GM canola seeds only to produce 3 different mutant weeds which were resistant to Monsanto’s ‘Round-up’, Cyanamid’s ‘Pursuit’ and Aventi’s ‘Liberty’, all patented herbicides.

GE super trees, loss of biodiversity and ecosystem collapse

GE super trees are being developed to withstand high doses of herbicide sprays from the air to kill all surrounding life except the GE trees. These trees are mostly non flowering and sterile. Monsanto’s super trees even exude toxic chemicals from its leaves to kill not only caterpillars but all visiting insect life. In 2002 China planted millions of ‘poplar’ super trees to combat deforestation, creating monoculture forests. Such flowerless toxin oozing trees will end up in eliminating all flying insects (bees and butterflies included) reducing the insect world to only booklice and earwigs. Its plantation in the wild will not only cause collapse of the forest ecosystem comprising of fungi, insects, earthworms, birds and mammals but also cause intensive genetic contamination through gene flow of transgenes to the wild and affect animal and human health. The reported case study of transgene flow and transgene introgression from cultivar to the wild (J.R. Reichman and L.S. Watrud, Molecular Ecology, 2006) may be cited which established the existence of transgenic plants in wild in Oregon, USA. The case involved glyphosate – resistant ‘creeping bent grass’ (Agrostis stolonifera L.) plants expressing CP4 EPSPS gene from Agrobacterium spp. Strain CP4, conferring resistance to herbicide glyphosate, transgenes were found in non agronomic habitats outside of the experimental test plots in the central Oregon study.

Super pests
Lab. tests indicate that the cotton bollworms, a common plant pest is getting resistant to the Bt. sprays . The stink bug epidemic reported from North Carolina and Georgia is suspected to be linked to the GE plants, loved by the pest. GE company Monsanto recommended spray of one of the deadliest chemical, ‘Methyl parathion’ to control the pest. Transgenic Bt. Cotton and the other GE crops failed in the US, India and elsewhere due mainly to pest problems besides their desired and expected production failures. Bt. Cotton was engineered to kill its pests like American bollworms, pink bollworms and bud worms but it ended up in eliminating these pests’ natural predators and turned these pests into super pests.

Killing beneficial insects
Several field studies showed GM products do kill beneficial insects such as the Monarch butterflies larvae (Cornell, 1999). Bt. Crops killed the Lace wings which are the natural predators of the cotton worms. Honey bees are killed when they feed on the proteins in GM canola flowers and Bt. Cotton flowers.

Poisonous to mammals
GM potatoes, spliced with DNA from Snowdrop plant with the viral promotor (CaMV 35 s) was found to be poisonous to mammals (as rats) damaging their vital organs and immune systems. Scientist since have demanded that all GM products using CaMV – 35 s promotor gene be with drawn from commercial production.

Genetic pollution
Some GM crops are flowerless but not all. GM pollens carried by wind, rain, birds, bees & other insects, fungus and bacteria causesevere genetic pollution. Pollen from GM canola, GE oilseed rape and Bt. cotton can move several hundred meters and pollute the non GM varieties as well as the wild varieties even across species barriers causing horizontal gene transfer. It is postulated that ubiquitous promotor, CaMV 35 s, in fact enhance
horizontal gene transfer and recombination.

A US study showed that 50% of wild straw berries growing within 50 meters of GM straw berry acquired GM gene markers and another study showed 25-38% of wild sunflowers grown close to GM crop had GM gene markers. Similar studies made in Germany with respect to GE Oil seed rape and in Thailand with respect to Bt. Cotton have confirmed the American findings.

A study in England showed that a small GM planting contaminated wild honey
which meant that bees carried the GM pollens to organic plantings and the
wild, which must show transgenic elements in them.

A new revolution the ‘ the blue revolution’ in aquaculture is growing rapidly in
which commercial fishes as salmons, trouts and cat fishes are genetically
modified to grow fast in size (up to 39 X). This will, in turn, wipe out their
cousins in the wild. There is no regulation for the safety of the non GM and
native/wild species biodiversity as of now.
Decline and Destruction of family farms and small land holders
In the US, the population engaged in agriculture was 60% in 1850; 4% in 1950 and less than 2% now. In 1935 there were 7 million farms which now stands at less than 2 million. More or less similar declines have occurred everywhere in the world. But the fact remains that these family farms and the small land holders between them produce more than 60% of our foods. This decline takes its root in the new GATT – WTO regulations. The economic strength and legislative powers have been taken away by the new agri corporations through the GATT – WTO dominated new world order. Promotion of GM products in food is the business of these agri corporations. A large number of native paddy varieties numbering around several thousands have already been lost in India through the two agri revolutions. The new world order may wipe out 1,00,000 traditional vanilla farmers of Madagascar and Comoros Islands through GM vanilla; several lakh sugar cane farmers in the third world through GE fructose. Sudan has long lost its export of gum arabic. A modest estimate puts the figure at least $ 14 billion of synthetic substitutes for the natural farm products of the third world. There are attempts to grow food in big laboratories eliminating the need for seeds, soil and even the plants thus shifting the task of food productions from the farming communities to the GE laboratories.

Control and dependency
Terminator Technology:-
GE seed companies have ensured through legislations that farmers would not be eligible to save and exchange patented seeds. To fail the farmers in seed collection and seed saving, they have developed and introduced a technology, broadly called ‘Terminator technology’ to ensure that the seeds are rendered sterile after harvest. These seeds contain ‘suicide’ genes in both male and female lines. The male sterility is caused by a gene (US patent no. 5,750,867 owned by Aventis) from bacterium Bacillus amyloliquefeciens called ‘barnase’ coding for a ribonuclease that renders pollens ‘dead’ by failing the pollen cells from undergoing meiosis to halve their chromosomes. Besides, a pollen lethality gene is also used which is expressed late in the development of male flowers, in pollen cells after meiosis that prevents the pollens being formed. The female sterility gene (US patent no. 5,633,441 owned by Aventis) is linked to a selectable marker gene with its own promoter, so that the female sterile plants can be selected. The terminator genes, besides barnase, include papain active protein, or the A- fragment of diphtheria toxin, Marker genes used include herbicide resistance gene, or a gene conferring a disease or pest resistance, a GUS gene for glucuronidase, or a gene encoding Bacillus thuringensis (Bt) endotoxin. The major problem associated with the process of use of different genetic constructs is that there occurs a lot of gene scrambling as they are integrated and genetic engineers cannot control either their integrations or their multiplications which, in turn, would multiply the uncertainties and unpredictabilities of the GM crops. Many of the genes currently in use in GM crop productions such as recombinase and the terminator lethal genes are harmful to the cells including mammalian cells. The recombinase cause recombination at non- specific sites there by causing large scale genome scrambling (ISIS News 7/8 ). Besides, the synthetic genes and other GM constructs can spread by horizontal gene transfer to unrelated species which cannot be controlled. This will cause large scale destruction of the existing biodiversity so evolved in the nature by the forces of evolution.
Traitor technology:-
This is another patented bad technology released to the market by the modern agro corporations by which some GM crops have technologically controlled stages in their life cycles – when to leaf, flower and bear fruit – under the influence of certain triggering chemicals. Thus, a farmer is forced to use these chemicals if he/she is to yield a harvest, thereby pushing him/her to deeper levels of economic dependence or debt.
Less diversity, quality, quantity and profit
The most misleading hope raised by the GM technology firms is that only the GM crops will solve the world’s hunger. World wide studies have proved beyond doubt that monoculture of any crop any where has always less yields per acre as compaired to polyculture of several crops – different seeds interplanted between the rows, in the fence or in different patches within the same area. In a study of 8,200 field trials, Round up ready soybeans produced fewer bushels of soy than non GM cousin( Charles Benbrook, former Director, Board of Agriculture, National Academy of Science). The average yield for non GM soybeans was 51.21 bushels per acre; for GM variety it was 49.26. This was again confirmed in a study at the University of Nebraska’s Institute of Agricultural Resources. Monsanto’s 5 different strains of soya was planted in 4 different locations of varied soil environments. Dr. Elmore found that on average more expensive GM seeds produced 6% less than non GM varieties and 11% less than good yielding conventional crops. Even where the yield was higher( Bt. Cotton in some field study in the US.), the cost of seeds and fertiliser used reduced the net profit substantially thus decreasing the depleted cost-benefit(B:C) ratio further. In agronomy, the cost-benefit ratio is the all important factor that signifies the farmer’s sustainability. A decreasing B:C ratio indicates a farmer’s declining economy; that he is not making any profit and that he cannot continue for long in such agriculture.

Fragility of future agriculture:-

Loss of agro biodiversity makes agriculture fragile. The case of Irish potato famine of 1840s is a glaring example of the importance of the crop diversity factor. When Irish farmers cultivated a few varieties, Peruvian farmers had thousands of varieties and this diversity provided the constant resource for blight resistance in potato crop. In the recent past a similar situation arose in Russia where a more virulent strain – potato late blight – threatened the Russian potato crop, broadly having the ability to withstand the harsh Russian winter. Citrus cancer blight threatened Florida’s $ 8.5 billion citrus fruit industry in 2000. Coca plants, mono cropped and nearly all identical, are also endangered by an international blight. Thus, the destruction rather than conservation of crop diversity seed stocks by GM agro corporations create a very dangerous situation and make the future of agriculture extremely fragile.

More pesticides and diminishing yields:-

Contrary to tall claims of GM companies field studies show that the best of organic farming techniques – using rich natural resources can always produce better resistant crops with higher yields and higher B:C ratios than the GM crops. GM crops, over the years, demanded 2 – 5 times more pounds of biocides per acre than non GM crop varieties and this leads to drastical environmental deteriorations.

Economic, political and social factor
Monopolisation of food production:-

There are approximately 1500 seed companies worlds wide but about a dozen of these control 50% of the global commercial seed market. Big seed corporations are buying up smaller seed companies and using clandestinely their market faith. By the year 2000, 5 corporations controlled 40% of soy seed market; 3 corporations controlled 90% of corn seed market; 2 corporations controlled 75% of cotton seed market and thus the company numbers diminishing and monopolistic market control increasing. Competing against the new GATT- WTO norms not only the number of farming families are diminishing abruptly but also the net annual farm income. Average annual income from small family farms in the US/ Europe plummeted in the last decade rendering the families to survive below poverty level.

Impact of food dependency:-

When the food production is monopolised, the future of its supply becomes dependent on the decisions of a few companies and their effective seed stocks. The crop diversity is waning – lost in the developed world and is in the process in third world countries except a few pockets – like the Peruvian potatoes and Indian paddy varieties, all in the third world. Food scientists indicate that if these indigenous territories are further disturbed by biotech’s advances, the long term vitality of all of the world’s food supply will be lost for ever.
Leading Agro Biotech Corporations & their Agribusiness,1999.

Corporations Total
Sales Agribusiness Sales Seed
Production Ranking (global) Agro-
Chemical Sales Ranking (global) Pharmaceutical
Sales (their
Original business.) Research &
Development Investments

A. ‘Life Science’ Group (involved mainly in genetic modification of various crop
plants)

Aventis $20.5 billion $4.6 billion n/a 1 $13.9 billion $3 billion
Novartis
(Syngenta) $20.3 billion $4.4 billion 3 2 $9.8 billion $2.2 billion
Monsanto(98) $8.6 billion $4 billion 2 3 $2.8 billion $1.3 billion
Astra Zeneca
(Syngenta) $18.4 billion $2.7 billion 6 5 $14.8 billion $2.9 billion

B. ‘Industrial Science’ Group (involved mainly in production of various
agrochemicals)

Bayer $27 billion $3.1 billion n/a 6 $5 billion $2.1 billion
DuPont $26.9 billion $3 billion 1 4 $1.6 billion $1.6 billion
Dow $18.9 billion $2.3 billion —— 8 —— $0.85 billion
BASF $29.5 billion $1.7 billion —— 9 $2.5 billion $1.3 billion

Biocolonisation:-
Colonisation in the past was through technologically superior armies. But the newest weapon in the hands of a few superpowers is a biological one and that is the GM seed. When a person loses food sufficiency he gets entangled in food dependency. This is why 5,00,000 alert Indian farmers staged a protest against new GATT in 1993 and are now opposing the GM seeds , GM agro products. Recently the European communities have launched the Slow food movement which is fast growing into a global movement essentially aimed at curbing the GM crops and save the diminishing biodiversity and
indigenous knowledge on farming techniques, biodiversity based organic farming.
Dependency and slavery:-

The new regulations which have come through the new world orders, GATT – WTO etc., the autonomy of the local economies can be wholly overridden. Foreign companies can buy and own all local companies, seeds, water, land and natural resources, converting them to exported cash, thus pushing the local economies to dependency and slavery.
Where does the future lead us to?
Long ago philosopher Descartes postulated that the space may be universally
or infinitely separated. Not long ago Einstein devised the famous formula, E =mc2, which led to the annihilation of 2 Japanese cities that brought the end to the 2nd world war. Now is the time of genetic engineering or gene splicing, the recombinant DNA technology, introduction of foreign DNAs – promoters and markers – genetic modification of all life forms – not for the betterment of the mankind but using thanotechnology for making bad money. Global sense prevailed to destroy or restrict the nuclear weapons once owned by the 2 super powers. But insanity is spreading fast in the form of recombinant DNA technology applications in the living world threatening its existence. Is it a Cartesian approach in a different form?

Is it better to be safe than sorry ?
In response to the rapid developments in genetic engineering and its
applications to life forms, the Cartagena Protocol on Biosafety was negotiated and it entered into force from September, 2003. The Protocol
sets up a regime governing the international movement of GMOs with the
aim to protect global biodiversity from the adverse effects of the GMOs. The
WTO covers only the trade in GMOs, thus has a different aim i.e., to prevent
limitations on the free movement of GMOs. Thus, the Protocol in a sense
clash with the WTO. Hence, harmonisation of these two agreements is highly
desirable. The suggestion is that the Protocol be used by the WTO as
evidence of internationally accepted standards in relation to GMOs. But it is
unlikely that the WTO would accept such a proposal. Is there a solution?

By 1999, about 28 million hectares were under GE crop plantations world wide under the claim that they were pest, disease resistant and would provide enough food to end world hunger.

The other opinion was that such crops were released without enough tests and questioned their long term safety with respect to human beings and environment.

Governments world over were in dilemma, to allow it or not allow it, a decision most likely heavily influenced by the bureaucrats in view of the lack of adequate scientific consensus on the issue of threat to biological world.

Based on the convention on Biodiversity, the Cartagena Protocol that entered into force from 11 September, 2003 set up a regime that dealt with the international movement of all living modified organisms (LMOs) which included GMOs and other organisms created through cell fusion of different taxonomic categories – in accordance with the precautionary principles.

The Protocol applies to 2 categories of LMOs:-
1. LMOs intended for release into the environment such as fish, plants and
seeds etc. covered by the operational sections.
2. LMOs intended for use in food or feed or for processing such as cornflakes,
soya milk etc.
All LMOs that are pharmaceuticals for humans are excluded from the Protocol,
which was objected to by the European Union States but US vetoed this objection.

Under the Protocol, trade in LMOs with non parties ( such as the US ) must be carried out in the same manner as with the parties.

Articles 7 – 12 of the Protocol, the Advance Informed Agreement (AIA) described as its backbone requires an exporting country to obtain the consent of the importing country before shipping living LMOs for the first time by informing its national authority. The importing country must then acknowledge receipt of the notification and decide whether to or not to accept the shipment within a certain period of time. Under the Protocol, a risk assessment must be carried out for all decisions made in relation to the acceptance of LMO shipments. A party can accept the shipment with certain condition, prohibit the import or request additional information from the exporter. In addition the Protocol establishes a “Biosafety clearing house” to which the importing country must inform its decision on the import of a particular LMO within 270 days of the original notification. However, under the Protocol a failure to notify does not imply consent.

The US even though not a party to the Protocol exerted considerable influence on the scope of the Protocol by participating in negotiations. Its intentions were to ensure that the Protocol had as limited an effect as possible, in order to protect the US biotech industry. The primary objective of the US was to make the Protocol subordinate to the WTO rules so that international trade in GMOs would not be disrupted.

Consequent upon the US involvement, the 135 member countries soon became divided into 2 groups viz. ” Like Minded Group” mostly of the developing countries except Argentine, Chile and Uruguay and “Miami Group”comprising of countries like Australia, Argentina, Chile, Uruguay and the U.S.,the GMO exporting and importing countries. Miami Group favoured a weak Protocol that would not disrupt international trade in GMOs.

The US continually sought to have the issue of trade in GMOs shifted to the WTO’s mandate. Only lack of support from the EU forced the WTO to decline addressing the GMO issue which, in turn, lent greater weight to the Protocol.

Under US insistence the draft Protocol included a ‘savings clause’ in the ‘preamble’ not in the ‘operative part’ and the US with reference to the 2nd paragraph and ignoring the 3rd paragraph claims that treaty does not alter the rights and obligations of governments under the rules of the WTO.

Any conflict between the Protocol and the WTO would most likely be referred to the WTO Disputes Panel if one side to the Dispute has not signed the environment agreement (as the US). For example if India, acting consistently with the Protocol banned the import of certain GMOs from the US, the US may take the conflict to the WTO Disputes panel claiming that India had breached WTO rules and in such a case the result may be well predicted since the Dispute body’s only role is to interpret the WTO agreement and not the Protocol.
Hence, the question – Is it better to be safe than sorry? And the answer may be, ‘sorry, it is perhaps too late’. We are mid way through globalization. We have already decided our fate through legislations and policy decisions from which perhaps we can not backtrack. Yet we have enough biodiversity which we have to sustain no matter how and at what cost.

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Source by Dr.Ashok Kumar Panigrahi

Liberalisation of Trade an Assessment of Implications for Develoment in Pakistan

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Liberalisation Of Trade an assessment of  Implications for Develoment in Pakistan.

*Nadeem Malik, lecturer and Supervisor *Dr Shafiqur Rehman
INTRODUCTION
Uruguay Round (UR) of trade Pakistan became member of the World Trade Organisation (WTO) as a result of the negotiations (1986-94) to elicit gains from implementation of the new regime of multilateral trade liberalisation like other countries, under the ambit of the WTO. However, as is the case for many other developing countries, the WTO implementation process also involves significant challenges for the socio-economic development of Pakistan, due to the overall lack of technical capacity and the prevalent lower level of economic development in such countries.
Recent economic research1 provides compelling evidence that trade liberalisation is associated with increased growth and development, evidenced by the unprecedented global growth since the 1970s. However, the evidence of positive relationship between trade liberalisation and economic growth is not as convincing in the case of a majority of developing countries as it is in the case of developed countries. Pakistan’s economic and trade liberalisation during the 1990s, though initiated largely under the IMF pressure, has not been fruitful in improving its social and economic development; almost all socio-economic indicators were reversed by the end of the 1990s. This particular aspect further exacerbates the WTO’s implementation-related challenges for Pakistan, as its obligations include not only a further reduction of trade barriers, but also to implement significant reforms both in trade procedures and in many regulatory areas.
The implementation of these agreements involves significant financial costs, raising the question of the future productivity of these expenses and opportunity costs. In addition to the financial cost, the social cost of the implementation in the form of rising unemployment is there (although the impact cannot be calculated precisely in various sectors at this initial stage). This is especially so as the implementation of WTO agreements would not only affect trade-related sectors of the economy but would have indirect effects on non-trade sectors of the economy.
Using the results of country’s liberalisation reforms of 1990s as the background, this paper intends to focus upon the possible future impact on socio-economic development in Pakistan, with the implementation of the WTO provisions. For the purpose of analysis, the economy has been divided into three major categories i.e. agriculture, industry and services on the basis of their share in the GDP of Pakistan. However, due to space constraints the study will be restricted to the agriculture and manufacturing sectors. In doing so an attempt will be made to address the following questions:
1. Based on the projections from the existing literature, what current linkages emerge between trade liberalisation and economic development in relation to the WTO’s implementation and what are the consequent gains/losses for developing countries?
2. Do the WTO agreements correctly diagnose the development problems and prescribe appropriate remedies?
3. What are the costs/gains associated in terms of socio-economic development of the country, with the implementation of the WTO agreements?
4. Does the implementation of the WTO agreements imply that Pakistan would be able to increase its share in foreign markets and thereby transfer the stated welfare and developmental benefits/gains to the various sectors within its economy?
Trade Liberalisation and Development Gains
Existing literature review on trade liberalisation, particularly on the aspect of reduction of tariffs and the elimination of non-tariff measures (NTMs) suggests enormous global welfare gains, though the estimates under various models are controversial.2 According to the EU estimates, the annual welfare gains for the world as a whole from multilateral liberalisation in agriculture, industrial products and services alone could range from around $150 billion to $370 billion, with an estimated accrual of $220 billion to developing countries.3 Similarly, World Bank studies have also estimated medium-term welfare gains from liberalising all trade, as between $250 billion to $550 billion; one-third to two-third of these gains would accrue to the developing countries.4 However, these estimates are seen with a great deal of scepticism by many analysts from the developing countries. In the words of Luis Fernando Jaramillo, former Chairman of the Group of 77, ‘70% of the additional income to be generated by the implementation of the Uruguay Round will be appropriated by the industrialised countries, which make up only 20% of the membership of GATT.’5 In other words, the developing countries with more than a two-third majority in the WTO would have only 30% of the additional income to share among themselves, and they were the countries conceding the most during the Uruguay Round negotiations. The former Chairman’s statement also alludes to the way developed countries are implementing WTO agreements in sectors like agriculture, textiles and intellectual property. For instance, in the case of agriculture, production subsidies in developed countries depress international prices thus reducing the export revenues for developing countries. In the post UR period, as a result of trade liberalisation in the agriculture sector, out of the total welfare gains of $122 billion only $11.6 billion will go to the developing countries, which comprise two-third of the WTO members, while $110 billion would go to the developed countries themselves.6 In the case of textiles, according to the same statements, if quotas are fully eliminated the estimated welfare effects on developing countries would range between $13-$22 billions.7 These estimated gains would be accrued only if the Agreement on Textiles and Clothing (ATC) is implemented in its true spirit by 2004. However, most of these models do not take into account the level of economic development of the developing countries and therefore do not represent true estimates for these countries. Hence, market access has emerged as a major concern for developing countries including Pakistan.
An Overview of Pakistan’s Socio-economic Development Indicators During the 1990s
During the 1990s, Pakistan opted for economic liberalisation, not as a policy generated indigenously but largely as an obligation under the conditionalities imposed by the IMF and the World Bank through their Structural Adjustment Programme.8 Presently, Pakistan’s trade and investment regimes are fairly liberal due to the continuous liberalisation process the country undertook during the 1990s. However, socio-economic development indicators for the decade of 1990s do not show corresponding gains to the liberalisation process.(see Table-I). Until the 1980s, Pakistan’s economic growth rate was fairly good (6% average annual GDP growth rate) although the benefits of that growth were not transferred to the social sectors of the economy.9 However, during the 1990s, following economic liberalisation, not only have the social indicators declined further but economic growth has also been sluggish owing to various macroeconomic factors. Since 1994-95, there have been no major changes in the composition of Pakistan’s GDP and employment; the economy continues to be dominated by services and agriculture. The share of the manufacturing,10 construction, and wholesale and retail trade services in Pakistan’s GDP have declined steadily. The share of agriculture, livestock, fisheries, and forestry (single largest employer) in total employment has followed an upward trend, while that of other sectors has remained stable or declined. Since 1995, the unemployment rate has risen from 5.4% to 7.8% (2002).
The slowdown in economic growth and consequent rise in unemployment together with a relatively high population growth have contributed to a marked increase in the incidence of poverty in Pakistan, particularly in the second half of the 1990s.11 The incidence of poverty, which had decreased to 18% during the 1980s in Pakistan, has reversed and rose upto 28% (1999), per capita income has decreased from $510 in 1995 to $426 in 2001.12 The proportion of the population below the poverty line has risen from 20% a decade ago to 30%, with the majority of the poor (about 70%-80% of poor households) living in rural areas. About two fifths of the population is without access to safe drinking water and more than half has no access to sanitation. Literacy has remained low (compared with elsewhere in the region and low-income countries world-wide) and gender disparities in education are significant. Health indicators, however, have been improving slowly. Development expenditures have decreased. A Social Action Programme (SAP) initiated in 1992, with the financial support of the World Bank and other donors, with a view to expanding and improving the country’s very weak social services (in elementary education, primary health, welfare, and rural water supply and sanitation) and creating employment has also been closed in 2002, due to its lack lustre performance. A comparison of the socio-economic indicators during 1990s with those in 1980s is given in the Table-I.
Table-I: Selected Socio-economic Indicators for Pakistan
Sectors 1980s 1991 1996 2000
GDP Growth rate % 6.5 7.6 6.6 2.1
Exports of Goods and Services % n.a 21.19 14.9 17.5
Imports of Goods and Services % n.a 34.3 25.4 19.1
Unemployment rate % 1.35 5.85 6.12 6.0
Life Expectancy rate % n.a n.a n.a 63
Poverty head count % n.a 22.11 21.8 28.2*
Infant mortality rate/1000 121 85 85 83.3
Development Expenditure
% of GDP 7.3 7.6 3.5 2.2
*. Data available for 1998-99. Source: Economic Survey, 2002
Pakistan’s economic liberalisation of the 1990s was not done under the WTO obligations, but largely as a part of the Structural Adjustment Programme of the IMF. However, the way liberalisation was carried out could not lead to a successful outcome. One of the criticisms of the reforms is that the process of liberalisation was done only partially due to the lack of required institutional infrastructure.13 So far Pakistan’s trade has not been much affected by the WTO agreements as the country has just initiated the process of implementation of these agreements. However, given its current weak development indicators, there are concerns that Pakistan will continue to face serious challenges for its socio-economic development in the future, as it moves towards integrating WTO laws into its economy. It is worth mentioning that the WTO is an ongoing process and many new issues have been included after the Uruguay Round. In the future, developing countries would be facing increased obligations under the new rounds of trade negotiations. This was one of the reasons behind the developing countries’ lack of interest in launching the new round of trade negotiations at Doha and their insistence to see the results from the UR implementation.
In order to evaluate the future impact of the WTO on Pakistan’s socio-economic development the study now focuses upon the following two categories as the broader framework:
a. Implementation of WTO agreements in other countries –Market Access Issues
b. Domestic Implementation of the WTO
1. Market Access Issues
While the WTO has been successful in reducing the overall level of tariffs with increased transparency and greater market access, the majority of the developing countries, with the capacity to increase exports of labour-intensive manufactures, continue to face significant barriers in accessing foreign markets. According to the UNCTAD 2002 Report on Trade and Development, a comparison of the simple MFN tariff rates on manufactured imports, as a group applied in selected sectors, confirms that developed countries apply higher import tariffs to traditional labour-intensive manufactures than to other products. Table-II shows that the tariff rates applied in the developed countries for textiles and clothing and leather are much higher than those of computers and telecom audios, thus indicating a clear discrimination against developing countries exports. This discrimination is further envisaged within the labour intensive products where tariffs are higher for textiles and footwear – two of the main exports of Pakistan. This particular factor does increase future market access challenges for Pakistan’s textile exports, comprising 70% of Pakistan’s total exports.

Table-II Simple MFN Average Tariffs of Selected Economies
Countries Manufactures Textiles Clothing Leather and travel goods Footwear Computers Telecom Audio and Video
Australia 5.4 9.9 20.7 4.7 11.1 0.3 2.6
US 4.0 9.1 11.4 5.0 13.4 0.4 1.6
Japan 2.9 6.5 11.1 10.2 19.2 0.0 0.0
Canada 4.9 10.7 18.4 4.2 16.3 0.2 1.5
EU 4.4 7.9 11.4 3.3 12.4 0.8 4.1
Source: UNCTAD Trade and Development Report, 2002.
Tariff Peaks, tariff escalation, tariff rate quotas and other non-tariff measures (NTMs) allowed under the WTO have become major impediments to market access for developing countries exports.
• Tariff Peaks
Tariff peaks are often imposed on products of developing countries covering mainly labour intensive products: textiles, clothing, leather products, rubber, footwear (Japan) and agriculture products (EU). Clothing and footwear represent more than 60% of the industrial countries’ tariff peaks affecting the exports from developing countries. Due to greater share of labour intensive products in Pakistan’s exports, especially textiles, it is likely that tariff peaks would affect Pakistan’s textile exports in the future.
• Tariff Escalation
Tariff escalation – the increase in import tariff corresponding to their value addition – is one of the major impediments to the exports of developing countries. For Pakistan, it implies that, in case the country shifts the composition of its textile exports from cotton yarn to clothing, or ready made garments, it is going to face higher tariffs on these products in its major markets. So what is the guarantee that Pakistan’s value-added textile exports would be able to capture markets? If these products fail to access the targeted markets it means that Pakistan would continue to be the exporter of primary commodities such as raw cotton, which are often subject to volatile prices. Overall data from the last decade reveals that Pakistan has been able to significantly shift the composition of its exports from primary commodities to finished goods.14 However, as suggested by the data in Table-III, in the case of the textile sector Pakistan has been unable to move to the upper rung of the ladder of value addition. On the other hand, in the case of Bangladesh, India and China there is a great deal of value addition to their textile exports, thereby posing the threat of Pakistan’s loss of market share to these countries, once quotas are removed and Agreement on Textile and Clothing is fully implemented by 2004. Between 1998-2001, Bangladesh and China have achieved 34 % and 36% value addition in their clothing sector respectively, while Pakistan has been able to increase value addition by only 18%.

Table-III Export Quantity of Textile Sector in Pakistan 1990-2001
YEAR Cotton cloth m.sq.m Cotton Thread mkg. Yarn m.kg Raw Cotton
000 mt.
1990 1056.5 0.9 501 282
1996 1257.4 0.4 508 221
1998 1355.2 0.3 421 2
2000-01 1735.8 0.2 513 135
Source: Economic Survey, Government of Pakistan, 2001-02.
Although Pakistan has made a modest progress during the 1998-02 period in its textile sector, a major source of concern is that this increase has only been in volume and not in terms of value due to falling international prices.
• Tariff Rate Quotas (TRQs)
Tariff Rate Quotas (TRQs) allow a certain quantity of imports to enter under low tariffs and above that high tariffs are applied. Under the Uruguay Round Agreement on Agriculture, the tariffication process i.e. converting non-tariff measures into tariffs was carried out by the developed countries in such a way that it increased the level of actual tariffs on their agriculture imports. Hence it became difficult to trade in certain agriculture products, therefore tariff rate quotas were allowed as a way out for market access for certain countries. So far, 37 countries use TRQs and most of the tariffs are concentrated in few products including vegetables, meat cereals, oilseeds, and dairy products. (Table-IV). Products like fruits and vegetables, tobacco and oil seeds are not only some of the few major exports of Pakistan, but also of potential future interest to Pakistan. Especially the vegetables and fruits where Pakistan can expand its exports, have been subject to tariff rate quotas. The difference between tariffs within quotas and tariffs above quotas is significantly large. For example in OECD countries with TRQs, the TRQ in-quota rates on agriculture products average 36% while out-of-quota rates average 120%.15 Although, the tariffication process has improved transparency in market access conditions, many studies have concluded that the URAA will not result in a significant reduction in agricultural protection due to the conversion of quotas into high tariffs and TRQs.16
Table-IV Tariff Quotas Distribution by Product Category
Product Group Cereals Oil seeds Sugar Dairy Meat Eggs Beverage
Number of TQs 217 124 51 181 247 21 35

Product Group Beverage Fruits and vegetable Tobacco Fibres Coffee
Number of TQs 35 358 13 18 56
Source: www.wto.org.
• Anti-dumping, Countervailing Duties and Safeguard Measures
Trade remedies permitted under the WTO agreements include antidumping measures- against dumping of cheaper imports; countervailing duties – against actionable subsidies; and safeguard measures – to protect against serious injury from import surges. These protective measures can be challenging obstacles to market access in particular products. During 1995-99, over out of a total 1200 antidumping cases, 75% cases were initiated by developed countries and 49% of the latter were targeted against developing countries.17 Thus developing countries are the major object of anti-dumping duties. Pakistan’s textile exports have recently been subject to various anti-dumping investigations, or facing duties, thus restricting market access (see Table-V). Pakistan’s cotton yarn exports also faced the US ‘Transitional Safeguard Action’ for three years (1997-2001), irrespective of the fact that the action was not consistent with the WTO agreement on Textile and Clothing. However, by the time the decision was made by the WTO Appellate Body, the time for safeguard action had lapsed, but it caused a serious financial damage to Pakistan’s cotton exports.18
Table-V Anti-Dumping Cases/ Duties Facing Pakistan
Product Country Initiating Year
Bed Linen South Africa 1999
Cotton Yarn Japan 2000
Cotton Shop Towel US 2000
Cotton Bed Linen, Cotton Fabrics, Unbleached Cotton Fabrics EU 2000
Cotton Shop Towels US 1999
Source: Trade Policy Review of Pakistan 2001, WT/TPR/95 at www.wto.org
• Product and Environmental Standards
Product standards under Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary measures (SPS) are also a source of concern for developing countries, which lack the capacity to meet the increasingly complex health and technical standards.19 TBT relates to all products and measures, while the SPS covers sanitary standards for food and phytosanitary standards for animals and plants. In maintaining these standards, both fixed (product redesign and administrative system) and variable costs (of maintaining quality control, testing certification and conformity assessments) are involved. In addition, revision to standards can have important implications for exporters. For example, World Bank estimates that due to the EU’s new standards for level of aflatoxin can reduce African exports of cereal dried fruits and nuts to Europe by 64%.20 Pakistan, along with Malaysia, India and Thailand lost the famous ‘Shrimp Turtle case’ when the WTO Panel upheld the US prohibition of shrimp turtle imports from these countries on the basis of environmental standards, as conforming to the WTO laws.21 On the other hand, the US itself is not ready to conform to the global environmental standards and has pulled out of Kyoto Protocol. In future there is the likelihood of increased number of cases involving standards. By the end of 2000, out of 27 disputes considered by the WTO with reference to TBT and SPS, only 6 were brought by the developing countries and no low-income countries other than India brought such cases to the WTO. Hence, for Pakistan, it will remain a distant idea to benefit from these standards, unless the required technical and scientific expertise is developed within the country.
Overall, the above-mentioned tariff and non-tariff measures being used as tools of market access denial to the developing countries’ exports indicate that realising the stated benefits and opportunities under the WTO is a challenging task. A careful analysis of the foreign markets and trade policies, especially of export destination countries, as well as the WTO rules and regulation is urgently required. Market access for developing countries was on the agenda of the Doha Round negotiations. It is the right time for the developing countries to pursue it collectively. Environmental and product standards, while restricting market access for the exports of the developing countries, if adhered to, however, are also a source of penetrating developed countries’ markets. While legal protections and safeguards are allowed under the ambit of the WTO, Pakistan has promulgated the contingent regulations such as anti-dumping rules, countervailing rules and safeguard regulations. However, Pakistan requires technical and scientific expertise to use and benefit from those measures and protect its own domestic market.
2. Domestic Implementation Issues
Domestically, the implementation of the WTO agreements goes far beyond trade-related policy, especially when it comes to the supporting legal and regulatory environment. This is where the cost of implementation matters. Pakistan’s trade and investment regime is fairly liberal. The average import tariffs declined to just over 20% in 2001-02 which is less than half its levels during the mid-1990s.22 Under its 1997 foreign investment policy, Pakistan has fully opened most sectors of its economy to foreign direct investment (FDI), thus allowing 100% foreign ownership except for certain activities that are subject to specific conditions. From November 1997, Pakistan has provided national treatment to foreign companies under its WTO obligations with respect to incentives such as duty and tax exemptions and other import concessions.23 Developing countries incur substantial problems from reducing their trade barriers. According to the World Developing Indicators 2001, a comparison of developed and developing countries for 1990s, show that in many developing countries, tariff revenue accounts for 10-20% of government revenue, and in some cases considerably more. In the case of India and Pakistan, tariffs make 21% and 17% of total revenues, respectively, whereas in developed countries this share ranges between 0-1%.24 If tariffs are reduced or eliminated in developing countries, they are bound to lose a reasonable share of their revenues.
A liberal trade regime is considered as one that removes domestic market distortions through increased competition and reallocation of resources. However, this whole process involves structural adjustments in the economy, in themselves having socio-economic implications, which has become a major concern of the developing country members of the WTO. Once tariffs are reduced under the WTO regime, it will lead to the inflow of cheaper products. Products in countries like Pakistan, with higher costs of unit production in agriculture and industrial sectors will not be able to compete with the cheaper imports. This effect would be further aggravated with the expected increase in water, electricity and gas prices committed to with the IMF under the present Poverty Reduction Growth Facility (PRGF) reforms.25 The price incompetitiveness would, in the near term, inevitably lead to the closure of the industries in manufacturing sector, while agriculture producers will not be able to meet the cost of production for the same reason.
In fact, for countries like Pakistan, there is a major concern of becoming dumping grounds for over-produced, subsidized agriculture produce of the developed countries. These market distorting tactics can be a big blow to the agriculture sector in Pakistan, which accounts for 25% of the GDP and 47% of total employment, in addition to being the major source of raw material for its manufacturing sector as well. Table-VI shows the agriculture sector’s contributions to the GDP and its share in total employment. The ultimate outcome will be an overall lowering in the levels of production, and displacement of labour force through unemployment in the affected sectors of the economy. Given the large share of the household expenditures dedicated to food, even small rises in agricultural unemployment or prices can have major destabilizing effects in the overall socio-economic regime.
Table-VI Pakistan: Sect oral Share (%age)
in GDP, Exports and Employment
Sectors 1991 1996 2000
-Agriculture share in GDP 25.8 25.7 24.1
Employment 47.4 46.8 47.3
-Manufacturing share in GDP 17.4 16.6 15.7
Employment 12.3 10.1 11.2
-Services share in GDP 48.7 49.5 50.9
Employment 42.7 42.6
Source: Economic Survey, 2001-02; WTT/TPR/95.
In Pakistan, unemployment has been a rising phenomenon during the 1990s (7.8% in 2002), but there is no major evidence to show that this has been a direct consequence of the economic liberalisation programme of 1990s. However, according to the Human Development Report in South Asia 2001, the liberalisation programme was not even aimed at employment generation.26 Economic liberalisation without catering for employment opportunities for displaced labour, is a factor that itself explains rising levels of unemployment during 1990s. It was generally expected that higher growth would generate employment expansion and poverty reduction, which could not yield the desired outcome, thereby increasing the incidence of poverty, during the 1990s.
Generally, economic models assume this process as a short-term phenomenon and it is expected that eventually these resources will be re-employed in some other sector of the economy thus bringing overall gains for the economy. However, actually, displaced workers may not necessarily be re-employed for a significant period of time. This situation is further aggravated in the case of Pakistan where the development expenditure is very low and social safety nets are almost negligible (see Table-1). Although under the PRGF Programme, the Musharraf government initiated the Khushhal Pakistan Programme and National Food Support Programme however, these efforts are at a very preliminary stage, and even if implemented properly will take some time to deliver the desired results.27
Economic liberalisation attaches great importance to the role of foreign direct investment, especially in generating new employment opportunities thereby acting as a factor canceling the unemployment effect. In the case of Pakistan, foreign direct investment has also been on the decline since 1995-96, despite liberal economic policies pursued by various governments.28 The level of FDI is specifically very low in the agriculture sector as compared to other sectors of the economy and is concentrated mostly in oil and gas and power sectors.29 It is also a reflection of the continued biased policies of various governments in favor of the manufacturing sector, although, the manufacturing sector especially large-scale manufacturing, has also been the victim of the FDI drainage due to overall reduction in FDI into Pakistan, during the mid-90s.30
There are many factors contributing towards the creation of an environment that is not conducive for attracting higher FDI in Pakistan. These factors include: weak property rights, lack of continuity in policies and lack of credibility of various governments in honoring international agreements and, above all, weak politico-security situation within the country and in its relations with India. If all other irritants are removed the security factor remains the most hindering factor in attracting FDI into Pakistan. In that case, amongst the regional countries, China would benefit the most and with its recent reform programme it will continue to be the most attractive place for FDI.
The implementation of the WTO agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) brings many challenges for various sectors of the economy and consequently socio-economic development of the country. In the case of Pakistan, so far no study has been conducted to estimate the cost of implementation of an IPR regime in Pakistan i.e. the establishment of new institutions, administrative and enforcement costs. Nonetheless, World Bank estimates for selected developing countries and overall estimates for developing countries suggest exuberant costs attached to the establishment of an IPR regime.31 However, views from the official sources in Pakistan indicate that the country already had an IPR regime and three ministries were handling the issue, namely Commerce, Education and Industries, which is in the process of being merged into one authority, called the Pakistan Intellectual Property Rights Authority (PIPRA).32 So, if these views are taken into account, initial fixed costs on institutional arrangements would not be much of expenditure in Pakistan. However, estimating the variable costs related to additional workforce, enforcement of IPR laws, training of police and custom officers would be little premature, as the country has just started the process of implementation of IPR laws. Also, the costs are wide-ranging and scattered in various sectors of the economy. Hence, it is not possible to see the exact impact of IPR regime related cost in connection with the concerns that it would squeeze development funds of the country.
In addition to institutional costs, there are socio-economic costs attached to an IPR regime. The creation of a Patent regime in Pakistan implies that foreign pharmaceutical multinationals can sell their patented products in the country at a desired price, which is going to increase the cost of those medicines in the country, or else the local firms have to get patents for those products and pay royalty to big multinationals. According to the World Bank, this will lead to the transfer of billions of dollars from developing countries to high income-countries in the form of royalties and licensing fees.33 It further indicates that the cost of TRIPs to developing countries is likely to be comparable to any gains they might receive from trade liberalisation.34 In addition, to avoid uncompetitive practices on the part of multinationals, the enforcement of a strict competition regime is a necessary step. In fact, without a sound and strong competition policy, the establishment of an IPR regime is meaningless. Pakistan has been widely blamed by the US and the EU for piracy and weak copyright implementation in the field of entertainment and computers, thereby incurring losses to copyright industries in these countries.35 With the enforcement of IPR rules, the prices for computers will certainly shoot up many times thus extremely restricting the fast-spreading use of computers and internet in Pakistan. With the inclusion of electronic data within the scope of TRIPs, the spill-over effects of the internet in the field of education – a crucial aspect in its human development- will also wane. The purchasing power in Pakistan is too little to pay for highly expensive books, or cover the internet charges.
The patent regime has severe implications for farmers in the developing countries. Under the patent laws, new plant varieties are protected and farmers in the developing countries like Pakistan, which traditionally used to reuse the produce for sowing purposes will be unable to do that. In fact, under the new technologies, the seed if reused, will not give the same quantity of crop, hence putting financial strain on the poor farmers who lack access to financial credit. This very factor implies the development of an indigenous R&D in Pakistan, and further allocation of funds in the national budget for this purpose.
During the Uruguay Round, Pakistan and other developing countries reluctantly adhered to the TRIPs agreement, with the lures of transfer of technology and technical assistance from the developed countries. While both these commitments were non-binding, there is no such international framework ensuring the transfer of technology or technical assistance to the developing countries. In fact TRIPs has strengthened the protection to the suppliers of technology. So, do the gains from TRIPs outweigh the costs in developing countries? Although, Pakistan is benefiting from the technical assistance and capacity-building programmes of the WTO and World Intellectual Property Organisation (WIPO), but a very little and insufficient technical assistance is actually available.
Strong IPRs are considered as one of the incentives for foreign direct investment and technology transfer. But stronger IPRs in developing countries may not necessarily decrease the technology gap between North and South. Once a product is patented and multinationals are getting royalties they might not be interested in investing overseas under uncertain political and security environment for example, as in Pakistan.36

Conclusion
The importance and benefits of economic liberalisation cannot be contested for the developing economies like Pakistan. However, focusing exclusively on one area while neglecting other aspects of human and social development can be very dangerous. As research has proven that it is social and human development that makes a strong basis for sustainable economic development. This is where Pakistan needs to pay attention. Trade liberalisation under the WTO regime is Pakistan’s obligation, but at the same time it should be complied to in a manner with least implications for the social sectors of the economy. For the Doha Round of trade negotiations, it is suggested that any future binding commitments by the Government of Pakistan must be made in consultation with the relevant industry and business sectors. Pakistan should not liberalise more than what is required. Any move towards liberalisation should be carefully measured in terms of its prospective costs and benefits.

References
*.
*. Mr Nadeem Malik, lecturer, Commerce department, University of Balochistan Quetta, Pakistan.
Supervisor Dr Shafiqur Rehman, Registrar, University of Balochistan Quetta
Pakistan.
1. ‘World Development Report’, Washington D.C.: World Bank, various issues, ‘Trade and Development Report 2002’, New York: UN Publications, 1996-2001.
2. Bernard Hoekman, ed. ‘A Hand Book on Development Trade and WTO’, Washington DC: World Bank, at www.worldbank.org. pp.1-10.
3. www.eudelbangladesh.ord/trade.htm
4. ‘Market Access for Developing Countries’ Exports’, IMF and World Bank Staff Paper, April 27, 2001, at www.worldbank.org p.45.
5. ‘Trading into Future: An Introduction to the WTO’ at www.wto.org
6. ‘Market Access for Developing Countries’ Exports’, p.46. op.cit.
7. Ibid., p. 47.
8. Shahid Kardar, Political Economy of Pakistan, Lahore: Progressive Publishers, 1997.
9. Dr. Ishrat Hussain, ‘Pakistan: Economy of An Elitist State’, Karachi: Oxford University Press, 1999; William Easterly, ‘The Political Economy of Growth Without Development: A Case Study of Pakistan’, Development Research Group, World Bank, March 2001, at www.worldbank.org
10. Although the decline of the manufacturing sector was, inter alia, due to the adverse impact of economic sanctions and resultant foreign currency crisis that led to drastic reduction in domestic and foreign investment and a contraction of imports. Mark Weisbort and Dean Baker,‘Relative Impact of Trade on Developing Countries’, Centre for Economic Policy Research Briefing Paper, Washington D.C, at www.cepr.net
11. ‘Economic Survey’, 2000-01, Government of Pakistan.
12. ‘Pakistan Development Policy Review: A New Dawn’, World Bank Report no.23916-PAK, April 3, 2002.
13. Ibid.
14. ‘Economic Survey’p.119, Op.cit.
15. UNCTAD Report on, ’Trade and Development, 2002,Now York: UN Publications, p.60.
16. OECD Report on ‘Market Access for Developing Countries, 2001, at www.oecd.org
17. ‘ Market Access for Developing Countries’ Exports’, World Bank IMF Joint Staff Paper, April 27, 2001, at www.worldbank.org
18. Appellate Body Decision on’ US Transitional Safeguard Measures on Combed Cotton Yarn from Pakistan’, WTO Document no. WT/DS192/7, 7 November 2001, at www.wto.org
19. Under SPS measures, imports can be prohibited to protect animal and plant health, on the basis of scientific evidence.
20. ‘Market Access for Developing Countries’ Exports’, World Bank IMF Joint Staff Paper, April 27, 2001, at www.worldbank.org
21. ‘WTO Appellate Body Decision’, Document No. WT/DS58/AB/RW, 22 October 2001.
22. ‘Pakistan Development Policy Review’, op.cit.
23. ‘Trade Policy Review Pakistan 2001’, WTO Document no. WT/TPR/S/95, p. 22, at www.wto.org
24. ‘World Development Indicators’, World Bank, 2001.
25. Under the PRGF reform programme the Government of Pakistan is bound to increase the electricity prices twice a year, Interim Poverty Reduction Strategy Paper (PRSP) 2001, at www.finance.gov.pk
26. ‘Globalization and Human Development’, Human Development Report on South Asia Mahbub ul Haq Human Development Centre, , 2001, pp.74-78.
27. ‘Economic Survey 2001-02’, Finance Division, Government of Pakistan, pp.55-57.
28. Ibid.
29. Ibid., p.41.
30. ‘Pakistan Development Policy Review’, op.cit.
31. ‘A Hand Book on Development Trade and WTO’, op.cit., pp.1-10.
32. Personal discussion on various WTO agreements with officials in the WTO Wing, Ministry of Commerce, Islamabad.
33. ‘World Economic Prospects 2000’, Washington DC: World Bank, p.94.
34. Jayashree Watal, ‘Implementing the TRIPS Agreement’ in A Hand Book on Development Trade and WTO, World Bank publication, 2002, p. 366-370.
35. The EU and US review the copyright enforcement of their trading partners and Pakistan is on the special watch list of the US under special 301 Act.
36. Ibid. p.366.

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Source by NADEEM MALIK

Corporate Erp: Dynamics Gp In Usa And Sap Business One Internationally

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If your organization participates in International business and you are in charge for IT strategy, including international accounting, MRP, ERP, Supply Chain Management, EDI, Shipping and Receiving, Light manufacturing, we are presenting you this small publication, where we describe the option to build corporate ERP on Microsoft Dynamics GP platform in US, Canadian, UK, Australian, South African headquarters and SAP Business One in international subsidiary

1. International ERP challenge. There is special term to check on readiness of ERP and Accounting application to local country requirements: Localization. ERP localization includes two parts: local language support and compliance with local accounting, ERP, Sales/VAT/GST taxation legislation

2. Local Language support. This is often more complex than you expected. If you look at ASCII table, where each character is in essence is covered by one byte, or 8 bits – please know that not all World languages are standardized in ASCII. There is such term as Unicode, where each character of all World alphabets (including Chinese, Korean, Thai, Indonesian, Arabic, Japanese, Armenian, Georgian) is coded in two bytes. If ERP doesn’t support Unicode (which is often the case, as majority of ERP applications are matured and were coded many years ago) – you should be more creating in ERP selection process for your overseas branch, where local language requires Unicode

3. Microsoft Dynamics GP as your Corporate ERP in USA. Formerly this application was known as Great Plains Dynamics or eEnterprise. It was coded in Great Plains Dexterity and Dexterity in turn is the shell programmed in C programming language in earlier 1990th, where Unicode was not yet introduced. Great Plains is localized for most of English speaking countries, South East Asia (Singapore, Malaysia, Thailand, India, Pakistan), Spanish speaking Latin America, plus French Canadian version is supported. You can also translate Dynamics GP screens to ASCII compliant alphabets – this includes most of the European Latin and Cyrillic based: Polish, Czech, Latvian, Lithuanian, Estonian, Russian, Bulgarian, Romanian, Serbian, etc.

4. SAP Business One. This small business ERP and MRP is Unicode compliant, and you can easily export or integrate SB1 transactions to your Dynamics GP GL via GP Integration Manager. SAP BO is very efficient in international business ERP scenarios and it has relatively low software licenses cost and short implementation cycle. Please, feel free to call us for SAP B1 and Great Plains tandem international implementation case studies and FAQ

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Source by Andrew Karasev

Ulysse Nardin Freak Diavolo Rolf 75 Watch Limited Edition

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Le Locle, Switzerland: Rolf Schnyder, the owner and president of Ulysse Nardin, turned 75 this year, and to commemorate his achievements, the brand is introducing a new limited edition, the Ulysse Nardin Freak Diavolo Rolf 75 Limited Edition.

Looking back on Schnyder’s 75 years feels much like an adventure novel, and Schnyder is the first to admit that he had a great time. “It’s been quite an adventure so far, and I’m not nearly done,” he says. “I grew up in Zurich, Switzerland, raised like many a Swiss boy, playing, skiing, and learning in this beautiful country. But I had a desire most others didn’t have, to see what was far outside the borders.”

At the young age of 22 Schnyder was hired by a Swiss Trading Company and sent to Bangkok to distribute Swiss timepieces in Thailand – and this brave journey into the East also heralded the beginning of an odyssey into the world of watchmaking that would span the next 53 years. In 1968 he founded in Thailand the first Swiss factory in the Far East to produce precision watch components for export to Switzerland. He later built a watch case factory in Manila and a dial factory in Kuala Lumpur that produced a variety of precision watch components for the Swiss watch industry.

“I found the exotic adventure I was yearning for – I discovered places no Swiss person had ever set foot (and even wrote about them for Swiss and other publications,” he details. “I learned the language, roamed the country selling Swiss watches and made my start as an entrepreneur. This area of Asia was unchartered territory for Europeans at that time, so I was able to do things impossible to do now – like building a raft at the Burmese border and floating down the famous River Kwai, camp on the beach at Phuket (as there were no hotels back then), spending time in Laos and Vietnam during the war, visit China during the Cultural Revolution, and more. I roamed far and wide, through Thailand, Laos, Bali, Cambodia, China, South Vietnam, Japan and spent 3 months leave in the South Pacific  sailing through the islands from Fiji, Tonga to Tahiti and Bora Bora.

One of Schnyder’s hallmarks has been to mix great fun with hard work – he played rugby for the Royal Bangkok Sports Club, organized tours for Europeans to remote parts of Thailand and the Temples of Angkor Wat in Cambodia, started companies, collected antiques and lived it up as a carefree bachelor. As a veteran snow skier he switched to water skiing on a whim entered competitions and wan the Hong Kong water ski marathon around the island in 1967.

“It was more than I could have ever dreamed, and during this time, I laid the foundation for the future with a keen eye for opportunity and the ability to take calculated risks,” he adds.

During one of his annual visits to St. Moritz, where Schnyder competes on the famous Cresta Skeleton Run he learned that Ulysse Nardin was for sale. That was in 1983 when Switzerland’s watch industry was in the doldrums due to the arrival of the quartz age. Ulysse Nardin was little more than a shell, a carcass with a famous name he describes it, and he set about transforming the brand with an emphasis on unique, complicated watchmaking with innovation at its core. Watches like the Astrolabium Galileo Galilei, the Planetarium Copernicus, the Tellurium Johannes Kepler, the Minute Repeater Jaquemart San Marco, the Freak, the Genghis Khan and more followed, all having a common theme – innovation. Ulysse Nardin has been a leader in the adopting of new materials, new technologies and new ways of doing things since Schnyder relaunched the brand.

In recognition of his contributions to watchmaking, Schnyder was awarded the “Spirit of Enterprise” Gaia Award in 2003 by the Musee International d’Horlogerie for his entrepreneurial achievements and commitments. This award was followed by the bestowment of the “Lifetime Achievement Award” by the Grand Prix d’Horlogerie de Geneve: Asian Edition in Singapore this year for his continued contributions towards watch making technology and innovations.

Schnyder currently splits his time between Switzerland and Malaysia. When he is not overseeing business in Le Locle, he is either at his home in Kuala Lumpur or visiting subsidiaries and retailers around the world. Schnyder shares a beautiful sprawling tropical home with his Sarawakian wife Chai, and they are the proud parents of three teenage children.

To celebrate his birthday, and to honor how far Ulysse Nardin has come, the brand has decided to introduce a limited edition, Ulysse Nardin Freak Diavolo Rolf 75 Limited Edition in Platinum, complete with Schnyder’s signature on the case. This special Freak, limited to 75 pieces worldwide, was chosen becausethe Freak is emblematic of the innovation that has characterized Ulysse Nardin’s rebirth.

As Schnyder describes it, the Freak shook up and inspired the watch making fraternity. The Freak combined technical innovation with a revolutionary esthetic. A Carrousel Tourbillion without crown, no hands, no dial and with a novel Dual Direct escapement made in a  new light weight material – silicium – which required no lubrication.

“Almost 30 years ago, I bought Ulysse Nardin, a calculated risk as I believed there was a strong chance that unique, innovative mechanical watches could thrive, and it turns out I was right,” Schnyder explains. “I fell in love with this grand old brand and our new innovative direction.

To celebrate my 75th birthday, I’ve chosen the Freak because it was an historic breakthrough for Ulysse Nardin and for the watch industry in general, and it is by far our most important piece.”

When asked what he wished for when he blew out the 75 candles on his birthday cake, Schnyder commented “I wish I could turn the clock back and do it all over again”!

Ulysse Nardin Freak Diavolo Rolf 75 Limited Edition Technical data.

Case  Platinum – Limited Edition of 75 pieces.

Power Reserve  More than 8 days, slip-spring

Frequency  4Hz (28’800 A/h)

Moment of inertia  8 mg*cm2, adjusting over 4 screws.

Hairspring  Silicium, exclusive Ulysse Nardin design.

Escapement  Right-angle lever, silicium, non lubricated.

Tourbillon  1 revolution in 1minute.

Orbite  1 revolution in one hour.

Winding  Manual winding over the bezel on the back of the case. 1 full rotation is equivalent to 12 hours of power reserve.

Time setting  Forward and backward over the bezel

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Source by barbrine

See the Moment, Seize the Day (1/3)

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The US debt-GDP ratio hit 69% ($10 Trillion) in September 2008, before the $750 billion (or Obama’s $819 billion, about 5% of GDP) bailout. Her GDP stands at $14 trillion, with combined consumer and corporate debt comprising 123% and 140%, respectively, of that GDP. Faced with $59.1 trillion in Government liabilities (including unfunded Medicare and Social Security obligations) she is deeply in the red.

Great Depression II?

Rising unemployment (2.39 million jobs lost from December 2007-2008) will certainly increase consumer loan delinquency levels, already at 25% in May 2008. Corporate debt is looming as the next bubble to burst, projected at 23% delinquency by 2010. Is it the Great Depression II? September 2008 signaled the worst Balance Sheet recession in history, more than the Great Japanese Recession of the 1990s, where the fall in asset prices wiped out corporate demand equivalent to 20% of Japan’s GDP.

Indeed, the US Financial System’s Toxic Assets seriously undermine their balance sheets, preventing a return to normal lending. Worse, the US treasury announced in November that the $750 billion Troubled Assets Relief Program (TARP) would be used to stimulate spending and lending, not to absorb Toxic Assets. But Bernanke and Paulson were not straightforward, using $350 billion to recapitalize banks, propping up the Balance Sheets of their former Wall Street colleagues, instead of reinvigorating lending.

On the wonderment of Obama as to why TARP did not work (and the $819 – or is it $950 – billion bailout will fail), our Economist-President sagely stated “that the worst thing is for America not to do anything,” at Davos. Indeed setting, say a 50% floor price now for Toxic Assets, with the US Government guaranteeing the difference between that and the eventual price that the assets are disposed, would immediately restart banks’ lending. It would remove the Financial System’s uncertainty, where the unknowns are unknown (per the Knightian Uncertainty perspective), where people are afraid to act because they don’t see the floor.

Holding Steady

The Philippine debt-GDP ratio stands at 51.7%, down from 2005’s 71.2%; significantly better than the US. The Administration is aiming at 40.7% by 2010. While US recession endangers revenues of export-dependent countries like China, and India, our service-oriented economy survives, our “exports” – Filipino Expats – in demand in over 20 countries.

A word of caution: perhaps the riskiest sub-sector of our exports is our US-based Expats, who contribute about 56.1% of total remittances (November 2008 figures).

Only three Doomsday scenarios face businessmen in the Global Economic downturn: slow, slower, and slowest. We survive on good governance, resilience, and optimism. The average Filipino family never knew American abundance, earning a $48,000 per capita GDP, spending less than 5% on housing mortgages, or $1 (their “One Peso”) for McDonald’s. Thusly are we optimistic in the Crisis: we can survive with tricycles and kamote. We can weather the Financial Storm’s intensities, and identify and capitalize on opportunities hidden beneath the gloom.

Taking from our local Taipans, the time is now to institute internal and external changes – using business savvy and cash-rich positions – to turn businesses into lean, mean, fighting machines needed in the Global Economic Meltdown.

Taipans: Thoroughly Filipino Entrepreneurs

JG Summit Holdings, led by Lance Gokongwei, despite an 86.2% drop in 2008 net income, is considering a $0.4 billion joint venture (JV) with the Petroleum Authority of Thailand, for a mutual expansion that will enable them to serve the Philippine market’s bounding demand (among the top five for Petrochemicals).

San Miguel Corporation (SMC), under Ramon Ang sold 43% (about Php54.2 billion) of its brewery unit to Japan’s Kirin, funding its P32.2 billion Petron Corp. stake, and its Php27.08 billion, 27% stake in Meralco. It is likewise bidding for the 620-megawatt (MW) Bataan Combined Cycle Gas Turbine Power Plant. They represent strong moves into high-growth industries of power and infrastructure, while shedding businesses that have since 1890, plateaued in growth and potential.

Spearheaded by Tessie Sy-Coson, SM Prime Holdings, despite stock values dropping 5.7% last November is expanding its recent diversification into Real Estate, by developing Hamilo Coast, a Batangas Coastal development linked to SM Mall of Asia, via Ferry. It combines Real Estate, Tourism, and of course, “Malling”.

Do they know something we don’t? Their actions present a reengineering that will deliver modest growth during the downturn, but massive revenues when the upswing happens. Their cash-rich position has situated them to enter into these diversifications arguably at when it is most cost-effective.

In the business arena, our taipans exhibit an absorptive capacity and agility, like prizefighter Manny Pacquiao’s. We should emulate those qualities: striking hard and fast, in the Global Crisis. The next article explores fundamentals that capitalize on opportunities the Crisis presents.

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Source by Teodorico Haresco

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