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G7, Brics exports down 2.7% in first quarter, while imports stagnate

27th June 2014

By: Callie Lombard

  

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On May 27, the Organisation for Economic Cooperation and Development (OECD) released its study of the trends in international merchandise trade statistics during the first quarter of 2014. Total merchandise exports of the Group of 7 (G7) countries – Canada, France, Germany, Italy, Japan, the UK and the US – and Brics bloc of Brazil, Russian, India, China and South Africa fell by 2.7% in the first quarter of 2014, compared with the previous quarter (seasonally adjusted figures in current US dollars). Imports stagnated, with only 0.1% growth over the same period (mainly due to continued imports of crude oil and fuels).

Exports fell sharply in China (by 7.3%), which may partly reflect the Chinese New Year but also the impact of a government crackdown on overinvoicing, while imports fell more moderately (by 0.9%). In Japan, the recent import boom in the runup to the consumption tax hike in April seems to have dissipated, with imports rising by only 0.9%, while exports slowed sharply (by 3.5%). Overall, this resulted in a record trade deficit of $44.8-billion.

In the US, exports fell by 1.3%, while imports increased by 0.8%. Canada witnessed the sharpest quarterly decrease in exports (2.9%) and imports (3.3%) since 2009. Merchandise trade also declined substantially in the UK (3.2% for imports and 4.3% for exports).

Among the G7 and Brics countries, only Germany and Italy registered an increase in merchandise exports – 2.1% and 1.5% respectively. Exports and imports were mainly flat in France. In other Brics countries, merchandise trade also contracted. In Brazil, exports declined by 5.8% and imports increased by 1.9%, while in Russia exports and imports declined by 2.9% and 2.8% respectively. India also witnessed a decrease in trade (3.0% for exports and 0.9% for imports), as did South Africa (4.3% for exports and 1.5% for imports).

Customs Valuation and Transfer Pricing
A joint World Customs Organisation (WCO)/OECD workshop on customs valuation and transfer pricing was held on May 27 in Budapest, Hungary. Participants represented both customs and tax administrations, and facilitators were from the OECD, the World Bank and the WCO secretariat. Sessions were delivered on the fundamental principles of the two regimes and explored their similarities and differences. The group examined and discussed various scenarios where transfer pricing information may be useful to customs administrations when examining related party transactions and considered the appropriate customs treatment of transfer pricing adjustments.
The workshop follows two similar regional events held in Seoul, Korea and Pretoria, South Africa and provided a platform for Customs and tax administrations to establish contacts, with a view to closer co-operation on this topic

ICC Certificate of Origin
On June 6, the International Chamber of Commerce (ICC) announced that the Australian Chamber of Commerce and Industry (ACCI) and its network of State chambers, as well as the French local chamber, the Essonne Chamber of Commerce, had become the latest members of the International Certificate of Origin Accreditation Chain, increasing the number of certificates of origin issued with the ICC World Chambers Federation quality label to more than eight-million.

WTO 2014 Annual Report
On June 3, the World Trade Organisation (WTO) published its 2014 annual report, which provides a comprehensive overview of the WTO’s activities over the past year. The annual report opens with a message from WTO director-general Roberto Azevêdo, who reflects on the past year and the challenges facing the WTO. This is followed by a brief summary of the year and an in-depth review. For the first time, the annual report is available as an app — for downloading to your tablet – as a PDF and in printed format.

Sodium Dichromate Safeguard
On May 28, the WTO informed that India had notified its committee on safeguards that it had, on May 26, initiated a safeguard investigation on sodium dichromate, classifiable under tariff subheading 2841.30. According to the notice, interested parties may make their views known within 30 days from the date of the notice to the director-general: safeguards, Bhai Vir Singh Sahitya Sadan by email (dgsafeguards@nic.in). In addition, any other party to the investigation who wishes to be considered as an interested party may submit its request within 15 days from the date of the notice.

According to the WTO, a safeguard investigation seeks to determine whether increased imports of a product are causing, or are threatening to cause, serious injury to a domestic industry. During a safeguard investigation, importers, exporters and other interested parties may present evidence and views and respond to the presentations of other parties. A WTO member may take a safeguard action (that is, restrict imports of a product temporarily) only if the increased imports of the product are found to be causing, or threatening to cause, serious injury.

Taxation papers
The National Treasury released the Carbon Offsets Paper and on April 29 and the Review of the Taxation of Alcoholic Beverages in South Africa on May. Comment is due by June 30.

VAT Vendor Registration
On May 16, the South African Revenue Service (Sars) published draft regulations for registration as value-added tax (Vat) vendors. Comment is due by June 30.

Professional Foreign Hunters Vat
On May 5, Sars published a draft interpretation note on the supply of goods and services by professional foreign hunters, which explains the Vat treatment of various supplies to foreign hunters, including hunting services, taxidermy services, the supply of a trophy as well as the subsequent export of the trophy. Comment is due by June 30.

Edited by Creamer Media Reporter

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