Ukraine reach two-thirds of its wheat export quota

Ukraine reach two-thirds of its wheat export quota

Ukraine has used 66.5% of its wheat export quota for the 2020-21 marketing season, according to economy ministry data reported by Reuters.

As of Nov. 20, Ukraine had shipped 11.63 million tons of wheat for this season, which runs from July through June.

Ukraine officials have stated that the volume of wheat available for export this season must not exceed 17.5 million tons.

One of the world’s leading wheat exporters, Ukraine exported 20.5 million tons of wheat in 2019-20, but a severe drought has led to a decline in this year’s crop.

The data also showed Ukraine had exported 4.5 million tons of corn and 3.7 million tons of barley to take total grain exports to around 20.2 million tons.

Ukraine accounts for about 16% of global grain exports and sold 56.7 million tons of various grains to foreign buyers in the 2019-20 season.

Ukraine to reach its wheat export quota by spring

In October, traders told Reuters that Ukraine will likely reach its wheat export quota for the 2020-21 marketing year by next March or April.

The pandemic led some countries to impose quotas on grain exports for the current marketing year to ensure adequate domestic supplies.

Meanwhile, Ukraine grain production in 2020-21 could fall to 68 million tons, down from a record 75 million tons due to severe drought across most parts of the country.

Winter crop sowing includes 4.6 million hectares of winter wheat, or 76% of the expected area, and 628,300 hectares of winter barley, or 66% of the anticipated area.

By Oct 23, Ukraine had exported 10 million tons of wheat (about 57% of the quota), according to data from the Ukraine economy ministry. It also showed that the country’s overall grain exports have fallen by nearly 13% so far this season.

Source: World of Grain.

Everything you need to know about trade in services

Everything you need to know about trade in services

Today, as globalization consolidates, it is more and more frequent that more and more companies decide to start with trade in services in order to seek new markets and increase their client portfolio.

However, we usually find ourselves with greater difficulties with regard to the trade of goods, especially in the legal sphere, since it is not possible to export any type of services, as occurs, for example, with health and education, which are services that have a public interest.

In addition, it is necessary to do a suitable investigation of the service market, to better know the target companies and we can offer them better service. Today we will talk about the agreements that govern trade in services.

General Agreement for trade in services

Regarding trade in services, it is necessary to take into account the General Agreement on trade in services (GATS) that regulates it.

Within the services to export, we have several types:

  • Trade-in cross-border services, where the provider and the client operate directly from their countries, without the need for any physical movement.
  • Reverse export, where the customer travels to the supplier’s country and receives the service.
  • Movement of individuals, where the service provider travels to the country of destination, in order to offer the service.
  • Establishment abroad, where the supplier establishes a headquarters in the destination country and from there, offers the service.

Legal aspects for the internationalization of services

Today many companies, both goods, and services, are choosing to internationalize, in order to reach other markets that allow, not only to grow the company but to survive due to issues such as the lack of internal demand, although there is less and less talk of internal and external demand, going on to speak simply of demand. However, this can generate numerous complications on the fly, since the regulations that govern the services offered by the exporting company may differ in some aspects, which should not be overlooked.

These aspects are:

  • The existence of international agreements between trading countries.
  • Whether the service we sell is exportable or not, in accordance with GATS regulations.
  • The political-legal stability of the country, which may hinder or promote the provision of the service in the destination country.
  • The taxation to be applied, since we are talking about operations with a third country, so international double taxation should be avoided. In the case of services to companies, this will imply that, within the legal framework of the EU, the company receiving services will not have to pay VAT, however, they must present an invoice within the period in which the tax prescribes. Likewise, it will also depend on whether or not the service is provided within the fiscal territory. In this case, the VAT levied in the destination territory will be passed on.
  • Administrative aspects. Taking into account that we are going to sell abroad, it is very important to know the administrative regulations of the country of destination, since we may find that some of these services cannot be traded.

You might be interested in: Freight Forwarder: everything you need to know

Singapore starts to import shrimp from Saudi Arabia

Singapore starts to import shrimp from Saudi Arabia

Singapore has begun importing shrimp from Saudi Arabia, the first time it is doing so from the Middle Eastern kingdom, part of its efforts to diversify its supply chains to safeguard food security.

The move could spark greater trade between the two countries as they start looking at the products available on both sides, said Minister for Trade and Industry Chan Chun Sing at an event to mark the trade-in shrimps on Wednesday.

He said: «Prior to this, I think very few of us would have thought of importing shrimp from Saudi Arabia. It is not something that comes to mind. But now that we know this can be done, and it can be done in a very price-competitive manner, then we can explore with the Saudi embassy and suppliers what other products they can offer.

«Likewise, these Saudi suppliers have also seen the products available in both Singapore and the region, which they could also bring back to Saudi Arabia. So that’s how the nature of the trade flows continues to improve, and as we go along, the price of the logistics will continue to come down, because people become more efficient.»

Managing director of The Seafood Company Kenneth Chua told reporters at the event held at a FairPrice outlet in VivoCity that around 60 tons have been imported so far, with another 60 tons expected to be here by the end of the year.

Where will the shrimp suppliers be at the moment?

The shrimps, which are sourced from the Red Sea, are currently supplied to FairPrice as well as other restaurants and food stall owners.

Seah Kian Peng, group chief executive of FairPrice Group, said that Singapore’s prawns are imported from all over the world. This includes nearer countries such as Thailand, Malaysia, and Indonesia, and places as far as Canada and Ecuador.

«This shows that we continue to diversify our sources so that any point in time, there will be minimal, hopefully, no disruption to supplies. At the same time… consumers can look forward to something which is (competitive) in terms of taste, quality, and price,» he said.

The Red Sea shrimps are being sold at $13.90 for 800g. They are priced at a premium as they are known for their rich flavor, thanks to the Red Sea’s high salinity compared to the seawater in other parts of the world.

Other types of frozen shrimp sourced from places like Vietnam and China are being sold at around $10 for 1kg.

Singapore currently imports food from more than 170 countries and regions.

Chan said on the sidelines of the event that Singapore is constantly on its feet in diversifying its food supply chains.

He added: «At this point in time, it is not sufficient just to say which supply chains might be disrupted. What is more important is to have a sense of what are the supply chains that might be disrupted in a few weeks’ time or a few months’ time, so that we can put in the orders and secure the supplies ahead of time.»

Source: The Star

Freight Forwarder everything you need to know

Freight Forwarder: everything you need to know

A Freight Forwarder is the company responsible for managing the international transport of your merchandise, from a point of origin to a point of destination, using the necessary means of transportation of cargo, and that best suits the merchandise, price, and delivery time. estimated transit.

The freight forwarder ensures that your goods arrive at their destination in the time and conditions that they should do so, whether by air, sea, or land and makes sure to process and manage the documentation required by the different figures, who intervene since.

If you want to learn more about the functions and advantages of a freight forwarder, this is the article for you.

Functions of a freight forwarder

While the freight forwarder handles the details of your international shipment, it is important to know what it does not do, to understand what it actually does

A freight forwarder does not actually move its cargo itself. He acts as an intermediary between a shipper and various transportation services, such as ocean freight shipping, road transportation, expedited air freight, and rail freight. A freight transportation service uses established relationships with carriers, from air carriers and trucking companies to rail carriers and ocean liners, in order to negotiate the best possible price to move carriers’ goods by the most economical route, elaborating multiple offerings and choosing the one that best balances speed, cost, and reliability.

Freight forwarders handle the considerable logistics of shipping goods from one international destination to another.

What services do they offer?

  • Collection of your merchandise at the origin
  • Local transport at the origin
  • Export customs clearance
  • International transport
  • Import customs clearance
  • Local transport at destination
  • Storage
  • Delivery of merchandise

What are the advantages of hiring one?

A freight forwarder is not required to import or export products. However, because importing and exporting can involve so much documentation and so many regulations, and these regulations and the required documentation may vary from country to country, many of the most successful importers and exporters use one to be their logistics partner.

Knowing the shipping companies, documentation, and customs laws of various countries is your job. They know everything so you don’t have to worry about doing it. That means a good service can save you incalculable time and potential headaches while providing reliable transportation of goods at competitive prices.

A freight forwarder is an asset to almost any company involved in international freight transportation and is especially helpful when internal resources are not well versed in international shipping procedures.

Wheat might be affected by the dryness in Russia

Wheat might be affected by the dryness in Russia

Farmers from Russia have been sowing winter wheat into dry soil this year, increasing risks for the 2020-21 crop, said a report on Nov. 17.

One of the world’s largest grain exporters, Russia is estimated to have planted 19.1 million hectares of grain, up from 18.1 million hectares at the same time a year ago.

«Despite some improvement in recent weeks, plants are still in a bad shape overall,» Sovecon agriculture consultancy. «A lot will depend on how harsh this winter in Russia will be and how much precipitation we will see.»

Conditions for wheat plantings are particularly poor in part of Volgograd, Stavropol, and nearby regions of Russia, despite some improvement seen in recent weeks, analysts told.

The situation is also complicated by the lack of moisture in the subsoil levels in several key regions, which means higher risks for both winter and spring grains in 2021.

The share of sowings in bad condition, which Russian officials usually estimate and release in late November, is likely to be close to a record high, Dmitry Rylko, the head of the IKAR consultancy, told Reuters.

In 2019-20, Russia produced 73.6 million tons of wheat, exporting nearly half of that total. It ranked fourth in output behind China, the European Union (EU), and India and second in exports behind the EU.

The wheat from Russia won’t be the only one affected

At the beginning of November, a GAIN report from the USDA said that weather issues negatively impacted the expected wheat output of Argentina for the 2020-21 marketing year.

The USDA expects wheat production in Argentina to fall to 17.4 million tons for the 2020-21 marketing year due to dry La Niña weather conditions, which are expected to cause losses for the next few months.

Wheat exports for the 2019-20 marketing are expected to close in November at 13.1 million tons, including flour.

The country’s corn production is projected to slip 48 million tons in the 2020-21 marketing year due to a reduction of planted area and yield. With a smaller corn crop expected, the USDA anticipates a decrease in exports of the commodity to 33 million tons.

Singapore’s non-oil exports fall in October

Singapore’s non-oil exports fall in October

Singapore’s October non-oil domestic exports (NODX) fell by 3.1 percent year-on-year, missing forecasts by a significant margin, official data from Enterprise Singapore showed.

Reuters’ economists had predicted a 5.7 percent increase the past month. September’s figure came in at a slightly revised 5.8 percent increase.

October’s contraction marks the first decline after four straight months of growth. 

On a seasonally adjusted month-on-month basis, exports fell by 5.3 percent in October, following the previous month’s 11.4 percent contraction.

Total trade fell by 9 percent in October on a year-on-year basis, following the 1.9 percent decrease in the preceding month. This is mainly due to a continuing decrease in oil trade amid lower oil prices compared to a year ago.

Total exports fell by 8.6 percent, after September’s 2.1 percent decline. Total imports also contracted by 9.3 percent, after the 1.6 percent decrease in September.

On a month-on-month seasonally adjusted basis, total trade fell by 3.1 percent, after the 0.1 percent growth in the previous month.

Total exports fell by 1.6 percent while total imports decreased by 5.2 percent.

Electronics and non-electronics nodx’s decline in October

Shipment of electronics fell by 0.4 percent in October, after the 21.4 percent expansion in September. Integrated circuits, other computer peripherals, and parts of personal computers contributed most to the decline, falling 12.8 percent, 6.9 percent, and 1 percent respectively.

Non-electronic shipments fell 3.9 percent in October, after the 1.7 percent growth in September. The decline in exports of non-monetary gold, decreasing 61 percent, was a major contributor, as were petrochemicals (-15.3 percent) and miscellaneous manufactured articles (-37.3 percent).

Exports to the top 10 markets as a whole declined, although exports to the US, China, Japan, and the European Union grew.

Hong Kong, Malaysia, and Thailand were the largest contributors to the decline in exports, according to official data.

Source: Channel News Asia

RCEP was signed by Asian-Pacific countries

RCEP was signed by Asian-Pacific countries

Fifteen Asia-Pacific nations signed the RCEP, a mega free trade deal, on Sunday as they concluded an annual summit of Southeast Asian leaders and their regional partners, held virtually this year due to the pandemic. 

The Regional Comprehensive Economic Partnership (RCEP) is the world’s biggest trade agreement. It will progressively lower tariffs across many areas in the coming years.

The pact, which was first proposed in 2012, loops in 10 ASEAN economies along with China, Japan, South Korea, New Zealand, and Australia.

They make up nearly a third of the world’s population and account for 29 percent of global gross domestic product.

«After eight years of negotiating with blood, sweat, and tears, we have finally come to the moment where we will seal the RCEP Agreement this Sunday,» Malaysia’s trade minister Mohamed Azmin Ali had said ahead of the summit.

Prime Minister Lee Hsien Loong, who led Singapore’s delegation, on Sunday hailed the signing of the RCEP as a «major milestone» and congratulated the 15 participating countries. 

«We have reached a major milestone of signing this agreement today. It has taken us eight years, 46 negotiating meetings, and 19 ministerial meetings to get here. I am very grateful for the tireless efforts of ministers and negotiators from all participating countries who have worked so hard during the process.

«The RCEP is a major step forward for the world, at a time when multilateralism is losing ground and global growth is slowing,» said Mr. Lee. 

Now, he added, «the hard work of implementing the agreement and encouraging our businesses to take full advantage of it begins».

What is the RCEP?

RCEP is a trade pact between the 10-member ASEAN bloc, along with China, Japan, South Korea, Australia, and New Zealand. India had been due to sign but pulled out last year.

The deal includes 2.1 billion people, with the pact’s members accounting for around 30 percent of global GDP.

Its aim is to lower tariffs, open up trade in services, and promote investment to help emerging economies catch up with the rest of the world.

International arbitration: procedures and advantages

International arbitration: procedures and advantages

International arbitration is one of the alternative dispute resolution mechanisms in international trade. In the event of a discrepancy or breach of the purchase-sale contract by one of the parties (for example, in the face of the buyer’s refusal to pay), the affected party has the possibility of resorting to a specialized body to seek a quick and friendly solution. However, going this way is only possible if a clause on the subject is included in the purchase-sale contract. Its inclusion, therefore, is the most recommended.

One of the most important instances of international arbitration is the International Court of Arbitration. This service has been in operation since 1919 and is provided by the International Chamber of Commerce (ICC), which brings together more than 130 member countries around the world.

Today we will talk about how arbitrage works and what are the advantages, so read on if you want to know more.

How is the international arbitration process?

The members of the Court are responsible for ensuring the application of the ICC’s international arbitration rules and for supervising the arbitration process. What the Court does not do is decide on the disputes that come before it. Instead, it appoints third parties, called “arbitrators”, who are international jurists of recognized level, who study the case and finally give a verdict that has to be complied with by the parties.

It begins with the presentation of the demand for the initiation of the arbitration process and the notification to the defendant for, later, the answer to the demand takes place. Next, the appointment of the arbitrators is made and their appointment is communicated.

In these phases of international arbitration, in addition to the interested parties, the General Secretariat of the Arbitral Court, the Arbitral Court, and the Arbitral Court (the arbitrators) intervene.

After the provision for expenses has been paid, the Secretary-General delivers the file to the arbitral tribunal. When the arbitral Tribunal receives the file, and once the parties have been heard, the arbitration proceedings are instructed through the “Mission Statement”, a document in which its mission is specified and which must be sent to the arbitral Court within two months. Likewise, it will communicate to the Court the provisional calendar that it intends to follow.

When the arbitral Court receives the «Mission Statement», it proceeds to approve the decision made by the arbitrators. The process ends with the issuance of the arbitration award or final decision, which cannot be appealed (as is the case with the judgment of a Court of Justice) since there is no «second arbitration instance». However, before the issuance of the final award, the parties may request any correction or supplement to it.

Advantages of arbitration

Among the main advantages associated with international arbitration as a mechanism for the resolution of commercial disputes, we highlight the following:

  • The simplicity of the dispute resolution procedure.
  • Speed: in general, less time is required than in judicial processes.
  • Flexibility: the parties have the right to choose between a single arbitrator or an arbitral tribunal composed of several arbitrators, depending on the complexity of the dispute.
  • Neutrality: the arbitral Tribunal must constitute a neutral position for the resolution of disputes, being detached from the judicial bodies of the countries of which the parties involved are natural.
  • High technical quality: given the possibility of appointing arbitrators specializing in the subject matter of the dispute, the arbitrators usually have greater availability of time to study the case under dispute, which may result in greater efficiency, as well as robustness and argumentative support of the award.
  • Confidentiality: the parties can opt for absolute confidentiality of the entire arbitration process (as opposed to the general principle of publicity of judicial processes).
  • Default cost: known from the beginning of the process.

After knowing its operation and its advantages, it is not surprising that international arbitration has consolidated itself as a mechanism for extrajudicial dispute resolution in foreign trade operations.

two hand hold soybean in tank

Soybean Imported from China increased in October

Soybean imported from China increased 41% in October compared to a year ago, the General Administration of Customs reported.

China imported 8.69 million tons of soybeans in October, up from 6.18 million tons. Crushers booked Brazilian soybeans on good crush margins and US soybeans are starting to arrive, GAC said.

Imports were down compared to September when 9.8 million tons were imported.

While US soybean imports increased in October, the majority are still from Brazil, according to one analyst.

US soybean purchases are increasing in the fourth quarter and early next year, when the US crop dominates the market. China also is working to fulfill the terms of the phase one agreement trade deal with the United States.

“The buying pace is expected to slow a little in the coming months, as crushers have booked a lot of Brazilian beans earlier already and US beans will increase as well,” said a crusher based in northern China.

China corn imports are set to increase as well

Depleted stocks and high domestic prices are anticipated to increase China’s corn imports, according to a Global Agricultural Information Network (GAIN) report from the US Department of Agriculture (USDA).

The USDA is forecasting a jump from 7 million tons to 22 million tons of corn to be imported for the 2020-21 marketing year.

China’s Ministry of Agriculture and Rural Affairs (MARA)’s October China Agricultural Supply and Demand Estimates (CASDE) noted the country has had a corn supply gap for the last several years, which the country has filled with auctions from reserves. MARA auctioned a total of 57 million tons from May to September 2020 and no further auctions are planned until spring 2021.

Industry sources said corn imports will be needed to meet demand, control further price increases and maintain stocks through 2021. China already has begun using temporary wheat and rice reserves and imports of feed quality wheat in the substitution of domestic corn.

High angle view on Cargo crane container terminal

Anti-dumping: what you should know

The anti-dumping law is a trade defense measure, within the scope of customs procedures, which is carried out when a foreign supplier charges prices lower than those applied in their own country. This practice is known as dumping.

In order to protect their respective economy, many countries impose duties on products they believe are being dumped in their national market because these products have the potential to undercut local businesses and the local economy.

Today we will talk about what the anti-dumping law is and how the margin of dumping of a product is calculated.

What is anti-dumping?

The Anti-Dumping Agreement defines dumping as the sale of a product for export at a price lower than its «normal value». This definition involves a comparison between two prices, the export price, and the «normal value», to determine whether the product is dumped.

It is important to note that dumping is not the sale of a product for export at a price lower than that charged by producers in the importing country. This is price undercutting. Prices charged by producers in the importing country are not relevant in determining whether an imported product is dumped. However, the issue of price undercutting is among the factors to be taken into account when determining whether dumped imports are causing injury to the domestic industry.

How to impose a measure of this type?

In order to impose an anti-dumping measure, the Member in question must determine the existence of dumping, material injury to the domestic industry, and a causal relationship between dumping and injury.

These three elements must be determined in the course of an investigation carried out by the authorities of the importing Member country in accordance with the procedural rules established in the Agreement.

How is the margin of dumping calculated?

The margin of dumping is the difference between the export price and the normal value. The Anti-Dumping Agreement establishes rules for calculating the export price (the price of the allegedly dumped product in the importing country) and the normal value (usually the price of the allegedly dumped product in the exporting country).

One of the requirements is that the comparison of the two prices is «fair» and some of the elements of a fair comparison are specified in the Anti-Dumping Agreement: the two prices must be set at the same level of trade, usually the «ex-factory» level., and on the basis of sales made as soon as possible.

The preferred methodologies for calculating the margin of dumping are to compare the weighted average normal value with the weighted average export price or to calculate the margins of dumping on a transaction-by-transaction basis. In cases where the product under investigation covers more than one by-product or «model», its full value must be attributed to any negative margin of dumping corresponding to a given model by calculating the overall weighted average margin of dumping for all the models together.

That is, negative margins cannot be considered «zero» dumping. The margin of dumping is generally expressed as a percentage of the export price. For example, if the normal value is 100 and the export price is 80, the difference will be 20 and it will normally be said that the margin of dumping is 25 percent (that is (20 ÷ 80) * 100).