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WTO agrees global trade deal worth$1tnBy Andrew WalkerBBC Economics correspondent

The deal was finally agreed after

marathon talks in Bali

Continue reading the main story

Related Stories

Timeline: World Trade Organization

WTO timeline

WTO cuts 2013 trade forecast

Ministers from 159 countries have reached a deal intended to boost globaltrade at a meeting in Bali, Indonesia.

The World Trade Organization's first comprehensive agreement involves an effortto simplify the procedures for doing business across borders.

There will also be improved duty-free access for goods sold by the world'spoorest countries.

The deal, which could add about $1tn to world trade, gives developing nations

more scope to increase farm subsidies.

"For the first time in our history, the WTO has truly delivered," said WTO chiefRoberto Azevedo, as the organisation reached its first comprehensive agreementsince it was founded in 1995.

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Analysis

Bureaucratic barriers to commerce can be a big problem.

Africa, for example, has the longest customs delays in the world. The African Development Bank says it can take 36 hours to get goods through the customs post

at the Victoria Falls crossing from Zambia into Zimbabwe.

And there are often more barriers to negotiate once goods are over the border. The highway between Lagos and Abuja in Nigeria has 69 official checkpoints.

It takes time and costs money dealing with these delays. It can be disastrous for a cargo of perishable goods. These are exactly the kind of barriers that the WTOdeal is intended to tackle.

Dealing with them would certainly make it cheaper for business to move goods across borders. And if i t's cheaper, they will do more of it.

"This time the entire membership came together. We have put the 'world' back inWorld Trade Organization," he said.

Indonesian Trade Minister Gita Wirjawan said the deal would "benefit all WTOmembers".

UK Prime Minister David Cameron said the "historic" agreement could be a"lifeline" for the world's poorest people, as well as benefiting British businesses to

the tune of more than $1bn (600m).However, the "Bali package", as the WTO calls the agreement, was criticised bysome development campaigners who said it was not going far enough.

Rich and poor

It is worth spelling out what is not covered by this: tariffs or taxes on importedgoods.

Dealing with them has been the bread and butter of past trade rounds - but notfor this deal.

The core of this agreement is what is called trade facilitation. This is aboutreducing the costs and delays involved in international trade. It is often describedas "cutting red tape".

Some analysts suggest the benefits could be large. An influential Washingtonthink tank has put the potential gains to the world economy atclose to $1tn and20m million jobs.


The negotiations have failed to secure permanent protection for countries to safeguard the food rights of their peoples

John HilaryWar on Want

It also estimates the cost of administrative barriers as double the cost of tariffs.

The rich countries have agreed to help the poorer WTO members withimplementing this agreement.
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Another important aspect of the Bali package deals with enabling poor countriesto sell their goods more easily. This part is about tariffs, and also quota limits onimports.

Rich countries and the more advanced developing countries have agreed to cut

tariffs on products from the poorest nations.EU trade commissioner Karel De Gucht told the BBC that if the poorest nations"have more trading capacity it will also result in more investment in logistics andinfrastructure".

But campaigners describe the plan as weak.

Nick Dearden of the World Development Movement said: "If the US and EUreally wanted to tackle global poverty, they would have made the least-developed-countries package much stronger."

WTO chief Roberto Azevedo: "For the first time in our history, the WTO has truly delivered"

Credibility test

Getting this deal has involved introducing some extra flexibility into the existingWTO rules on farm subsidies. India led the campaign, by insisting that it shouldbe allowed to subsidise grain under its new food security law.

There is a strong possibility that India's policy would break WTO rules that limitfarm subsidies.

A "peace clause" has been agreed, under which members agree not to initiateWTO disputes against those breaching the subsidy limits as part of a food-security programme. But it only lasts four years and there is criticism fromcampaigners.

John Hilary of War on Want, a UK-based group, said: "The negotiations havefailed to secure permanent protection for countries to safeguard the food rights oftheir peoples, exposing hundreds of millions to the prospect of hunger andstarvation simply in order to satisfy the dogma of free trade."


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Traditional dancing was performed at theWTO meeting in Bali

The Bali meeting was an important one for the WTO's credibility. The deal

includes a rather small part of the negotiating programme that was launched 12years ago, known as the Doha Round.

Repeated delays have made the WTO seem irrelevant as a forum for negotiatingtrade liberalisation agreements. It was one of the main reasons so manycountries have sought to make deals bilaterally or among small groups.

The agreement will help repair the WTO's damaged image. Nonetheless, the restof the Doha Round will be very difficult to conclude.

The deal seeks further reductions in farm subsidies, tariffs on industrial goods,

barriers to international trade in services and more.

All are very difficult to conclude and are entwined with domestic political factorsin many of the WTO's 159 member countries.

So don't hold your breath waiting for the final deal.

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year-imfs-christine-lagarde/articleshow/27811158.cms

The WTO describes itself as "a rules-based, member-driven organization all decisions are made by the member governments, and the rules are the outcome of

negotiations among members".[53]

The WTO Agreement foresees votes where consensus cannot be reached, but the practice of consensus dominates the

process of decision-making.[54]

The euros hellhound

It is time to reform the troika that handles euro zone bail-outs

Feb 1st 2014 |From the print edition
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IN GREEK mythology, Cerberus is the three-headed dog guarding the gates to Hades. In modern

Greek politics, the troika is the three-headed monster that traps the country in an economic

underworld. At the finance ministry in Athens, even the cleaning ladies shout murderers at visiting

members of the troika. In Lisbon protest banners declare Fuck the troika. There is now a popular

Portuguese neologism, entroikado, roughly meaning economically screwed.

As guardian of the creditors, the troika was never going to be loved. The trio of the InternationalMonetary Fund, the European Commission and the European Central Bank was improvised at the

time of the first Greek bail-out in May 2010. It has since been at the heart of other rescues, of

Ireland, Portugal and, most recently, Cyprus. Increasingly, its role is being questioned. Is the

monster ripping too much living flesh from the countries it is supposed to be saving? And who

controls the beast anyway?

In this section

Praying for peace

Statue of limitations

Madness on the Bosphorus

Hail, the Swabian housewife

An all-female race

The euroshellhound

Correction: Milagros Morago

Reprints
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Related topics

EU economy

Central banking

Public finance

European Union

Ireland

The European Parliament has begun an inquiry into the troikas workings. MEPs have been visiting

bailed-out countries and have summoned troika officials for a grilling. Socialists accuse the troika of

incompetence, even of breaching social rights in the European Union treaties, and want it abolished.

Conservatives say the troika was a necessary expedient that has proven its worth, but should be

replaced over time. Both sides agree that it rests on a dubious legal base and is alarmingly

unaccountable.

The troika is most bitterly criticised in Greece, and with some reason. Output there has fallen by aquarter since the start of the euro crisis and 27% of the population is out of work. Though Greece

has, remarkably, achieved a primary budget surplus (ie, before interest payments) it is once again at

odds with its creditors, who are holding back the next tranche of loans. The timing of the dispute is

awkward. Greece holds the rotating EU presidency, and its weakened government risks being

humiliated in Mays European elections by anti-troika parties. Antonis Samaras, the conservative

prime minister, claims the problem is caused by a fight between the IMF and the commission;

Greece, he says, risks being trampled by the two elephants.

Indeed, the heads of the troika have often disagreed. The IMF only grudgingly accepted the ECBs

insistence that senior bondholders of Irish banks should be spared, increasing the burden on Irish

taxpayers. The fund consistently argued, privately at first and then publicly, that the Europeans were

pushing austerity too hard. Though it fudged the first Greek bail-out, it has become more hard-nosed

in its reckoning of the sustainability of Greeces huge debt. At first this suited Germany, supporting

demands that private bondholders take losses to reduce the cost of a second bail-out (the idea

horrified the ECB). Now the fund is inconvenient: reducing Greeces debt credibly requires a write -off

of official loans. Germany would rather stretch out maturities. But extend and pretend leaves a

large overhang of debt and political uncertainty that deters investors.

Mr Samaras privately believes the IMF is taking a pessimistic view of its public finances to force

Germanys hand. He is telling the troika not to push too hard lest its demands boost the radical left-

wing Syriza party, which leads the opinion polls. Germany, and by extension the commission, are

sympathetic, even though Greece still has some way to go before running the big surpluses it needs

to pay down the debt. For the IMF, the more serious deficit is the long list of unfulfilled structural

reforms. If the Europeans really want to keep Syriza out of power, the best answer would be quickly

to forgive a big chunk of debt.
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The three heads of the troika have worked more or less amicably, but reform is overdue. To some

extent the troika is already fading away. Ireland and Spain (which received a partial rescue for its

banks) have ended their bail-out programmes and returned to the markets. Portugal might do the

same this spring, perhaps helped by a precautionary line of credit. That leaves the original problem,

Greece, and to a lesser extent Cyprus.

The euros dog days

Europhiles hope that a fully fledged European Monetary Fund, built around their rescue fund, the

European Stability Mechanism, will one day take over from the IMF, and be subject to scrutiny by the

European Parliament. But this would require treaty change to turn the ESM, now an inter-

governmental body, into an EU institution. Germany (and other creditors) would have to agree to

surrender control of their money. And getting the European Parliament involved in setting

macroeconomic conditions is a recipe for paralysis.

An alternative option might be to leave the problem entirely, or principally, in the hands of the IMF. Ithas greater expertise and independence than the commission. True, it might not always have had

enough money to finance the biggest European bail-outs. But in Greece it would have reduced the

bill by cutting the debt sooner and more decisively, while in Ireland it would have bailed in senior

bank creditors. The losses would thus have been imposed on those who deserved to bear them: the

banks that lent cheap money to reckless borrowers.

Perhaps co-operation between the Europeans and the IMF will always be needed to deal with the

unique problems of highly integrated countries locked in a single-currency zone, with a single

interest rate. But the presence of the third head, the ECB, is clearly an anomaly. The central banks

mandate does not stretch to bargaining over budget cuts and reforms to labour markets, or

threatening to cut off liquidity if a country does not comply with its wishes. Now that the ECB is

becoming the euro zones main bank supervisor, the conflict of interest is glaring. Its head should

surely be the first to be lopped off.

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outs-euros-hellhound?zid=301&ah=e8eb01e57f7c9b43a3c864613973b57f

India received $28bn FDI in 2013: UNCTAD

Jan 29, 2014, 11.20AM ISTPTI

UNITED NATIONS: FDI flows into India grew 17 per cent in 2013 to USD 28 billion despite unexpectedcapital outflows in the middle of the year, according to a United Nations report.

It also said foreign direct investment across the world rose to levels not seen since the start of the globaleconomic crisis in 2008.
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India ranked 16th among the top 20 global economies receiving the most FDI, witnessing a 17 per centgrowth to USD 28 billion.

Global FDI increased by 11 per cent in 2013 to an estimated USD 1.46 trillion, with the lion's share goingto developing countries, according to the UN Conference on Trade and Development (UNCTAD) report.

UNCTAD forecasts that FDI flows will rise gradually in 2014 and 2015, to USD 1.6 trillion and USD 1.8trillion, respectively.

As global economic growth gains momentum, this may prompt investors to turn their cash holdings intonew investments, it said.

However, uneven levels of growth, fragility and unpredictability in a number of economies and risksrelated to the tapering of quantitative easing could dampen the FDI recovery.

FDI flows to developing economies reached a new high of 759 billion dollars, accounting for 52 per cent,during the year.

Developed countries, however, remained at an historical low (39 per cent) for the second consecutiveyear.

FDI inflows to developed countries increased by 12 per cent to USD 576 billion, with such investment tothe European Union increasing, while flows to the United States continued their decline.

The US received USD 159 billion in FDI flows last year. The BRICS - Brazil, Russian Federation, India,China and South Africa - continued to be strong performers in attracting FDI.

Their current share of global FDI flows at 22 per cent is twice that of their pre-crisis level.

Total inflows to the five leading emerging economies reached 322 billion dollars in 2013, 21 per centhigher than in 2012.

South Africa outperformed other countries within the group, with FDI inflows rising by 126 per cent.

Although inflows to developed countries appear to be recovering over 2012, the picture is mixed.

Despite positive signs of recovery in some developed country regions such as parts of the EU, flows tothe United States failed to reverse their decline, contrary to other signs of economic recovery over thepast year.

The increase for developing economies was mainly driven by Latin America, the Caribbean and Africa;while developing Asia, the world's largest recipient region for FDI, saw flows at a level similar to 2012.

Total inflows to developing Asia, comprising East Asia, South Asia, South-East Asia and West Asia,amounted to an estimated USD 406 billion in 2013, a level similar to 2012.

With inflows to China at an estimated USD 127 billion, including both financial and non-financial sectors,the country again ranked second in the world.

IMF Executive Board Concludes 2013 Article IV Consultation withBulgaria


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Press Release No. 14/30January 30, 2014On January 24, 2014, the Executive Board of the International Monetary Fund (IMF)

concluded the Article IV consultation with Bulgaria.1

In the aftermath of the global financial crisis growth has remained low and unemploymenthigh. Real GDP growth is projected at about 0.5 percent in 2013 as domestic uncertainties

undermined demand but exports are performing well. Domestic demand is projected torecover gradually, and exports and foreign direct investment (FDI) will benefit fromrecovery in Europe, allowing real GDP growth to rise to about 1.6 percent in 2014. Thecurrent account of the balance of payments is expected to be in surplus in 2013 but return

to a modest deficit in the medium term, financed by FDI. Inflation is projected to besubdued in the short term, rising only from 0.4 percent in 2013 to 0.8 percent in 2014.With employment beginning to grow, unemployment is projected to decline slightly in 2014

but remain high.

Strong macroeconomic and financial sector policies have mitigated vulnerabilities arising

from the difficult external and domestic environment. The fiscal deficit fell to 0.5 percent ofGDP in 2012 and public debt remained the second lowest in the EU. The reduction in banks

foreign liabilities has been gradual and is largely driven by plentiful bank liquidity, resulting

in a positive net foreign asset position for the first time since 2006, and capitalization of thefinancial sector is high. Although nonperforming loans (NPLs)a legacy from the boomperiod and subsequent crisisamounted to 17.2 percent of loans in September, coverage

by provisions is comfortable at 72.7 percent.

Convergence to EU income levels over the coming decades will require accelerated growth.Bulgaria ranks favorably versus comparators on macro-policy outcomes but less so onother dimensions critical to the well functioning of the economy. Bulgaria is comparable to

good performers in central Europe and the Baltics on fiscal and country risk, and the

income tax system is also seen as favorable in competitiveness rankings. However, Bulgariaranks much lower on measures such as enforcing contracts, resolving insolvencies, and

some areas of red tape. More generally, the judicial system is viewed as problematic, and

corruption and cronyism as widespread. These shortcomings will need to be addressed forBulgaria to unlock its growth potential.

Executive Board Assessment2

Executive Directors commended the authorities for maintaining macroeconomic and

financial stability despite external and internal challenges. Nevertheless, growth remainsweak and unemployment is high. Directors emphasized the need to complement continuedprudent policies with accelerated and decisive efforts to address structural impediments to

higher growth, job creation, and a faster pace of income convergence with the European

Union.

Directors generally agreed that the structural fiscal stance under the 2014 budget, which

sets the deficit close to national limits under the fiscal rule, strikes an appropriate balance.

While the strong fiscal position provides some room to support growth, they underscoredthe importance of maintaining credibility in the context of the currency board by observing

national and EU deficit rules. Fiscal buffers should be rebuilt over time by targeting abalanced structural budget. In the event revenues fall short in the coming year, the

authorities should be prepared to adjust spending to achieve the deficit target. Whilewelcoming the intended increase in capital spending, Directors stressed the importance of

appropriate project selection and monitoring procedures under the new public investment

fund. They encouraged the authorities to improve the targeting and efficiency of socialspending, including on healthcare; to reinstate the needed pension reforms; and to address

risks associated with some state-owned enterprises.
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Directors noted that the financial system is stable, well capitalized, and liquid, but that

profitability is low. They encouraged further steps to reduce nonperforming loans through

asset disposal in order to reduce asset price uncertainty in the market and support futureinvestment. Directors supported the efforts to preserve the conservative supervisory

approach under the new European framework.

Directors emphasized that bold structural reforms are needed to lift growth, create jobs,

and enhance productivity. Policies should focus on improving the business climate and thejudicial system as well as anti-corruption and anti-monopoly regimes. Active labor market

policies, including further improvements in education and training will be important toreduce labor market rigidities. Directors also encouraged continued efforts to ensure the

rapid and efficient absorption of EU funds.

http://www.imf.org/external/news/default.aspx

http://www.theguardian.com/world/2014/feb/10/switzerland-talks-eu-immigration-referendum

http://www.bbc.co.uk/news/world-europe-26116648

IMF: Pakistan Economy Improving,Reform on TrackDUBAI, United Arab Emirates February 9, 2014 (AP)By AYA BATRAWY Associated Press

The International Monetary Fund said Sunday that Pakistan has met nearly all of itsquantitative performance markers, that its economy is showing signs of improvement andthat its reform program remains broadly on track.

The nuclear-armed nation of 180 million people faces a host of obstacles as it tries torestructure its economy and buoy its dangerously low foreign currency reserves, whichstand at $8.3 billion. While trying to reel back expenditures and reorganize steep subsidybills, officials say it is essential that economic reforms do not hurt the millions of Pakistaniswho live in poverty on less that $2 a day.

Pakistan signed a $6.7 billion loan with the IMF in September to rebuild its reserves aftermore than two years of depletions and support structural changes aimed at boostinginvestment and growth. The IMF loan to Pakistan came less than six years after thecountry's last IMF bailout, and the driving need for the money this time was to repay theinstitution the billions Islamabad still owes.
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As part of that agreement, the IMF conducts periodic reviews in order for its executive boardto approve installments of $550 million spread out over three years. Pakistan has alreadyundergone one economic review and received two installments totaling nearly $1.1 billion.The third installment is up for consideration in late March.

To secure the loan, Pakistan had to commit to changes in the economy designed toincrease growth and improve financial stability. The measures aim to bring down the deficit,reduce pervasive electricity shortages and increase the country's poor rate of tax collection.

"The current trends of the last few months have been very positive in Pakistan and priceshave been stable," Pakistan's Finance Minister Mohammad Ishaq Dar told reporters inDubai.

Dar said the government is following "very strict austerity measures" that have not beeneasy to make.

"I think we have taken very painful measures, which were partially politically unpopular, but Ithink they were needed by the country and it has not only changed the direction of theeconomy... it has put us on the road of recovery and stability," he said.

Despite overall progress in implementing reforms, IMF's mission chief to Pakistan JeffreyFranks said in a joint news conference with Dar that pressures on balance of payments arelikely to remain in place.

The IMF is also concerned that inflation will rebound in the coming months. Franks said theIMF encourages the State Bank of Pakistan to be "vigilant" in its monetary policy to keepinflation at a reasonable level.

The IMF forecasts that inflation in Pakistan will hit 10 percent this year. Dar says thegovernment expects inflation to rise above its current 7.9 percent but that it will not hitdouble digits.

Alongside Pakistan's economic challenges are constant risks to its security. The periodicreview and press conference were not held in Pakistan, but in the United Arab Emirates' cityof Dubai, because IMF officials were not permitted to travel to Pakistan after the body'srepresentative in neighboring Afghanistan was among 21 people killed in a suicide attack inKabul last month.

The IMF expects growth to reach around 3.1 percent for the current fiscal year, still lessthan half the rate needed to supply jobs to Pakistan's growing population.

The deficit, which was roughly 9 percent of gross domestic product in 2012, needs to bebrought down to around 3.5 to 4 percent by the end of the three-year program. Dar said thedeficit for the first half of the fiscal year stands at 2.2 percent.


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E.U. Calls for New Government and

Elections in UkrainePresident Viktor Yanukovych's crackdown against ongoing protests alarms the organizationByMichelle Arrouas@MichelleArrouasFeb. 11, 20140

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Reuters

The protests continue in Kiev, the Ukrainian capital, and the crackdown on them have now caused the European

Union to call for a new government

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The E.U. is toughening its stance on Ukraine, rebuking President Viktor Yanukovych and calling for a

new government to be formed.
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In ajoint statementby the 28 foreign ministers of member states, the bloc urged Yanukovych to

allow for a new and inclusive government, constitutional reform bringing more balance of powers,

and preparations for free and fair presidential elections.

Signatories expressed concern regarding recent violence, cases of missing persons, torture and

intimidation and continuous cases of deliberate targeting of organizers and participants of peaceful

protests as well as of journalists.

Anti-government protests broke out in Ukraine around three months ago after

Yanukovych announced that he would sign a loan package from Russia instead of a free-trade

agreement with the E.U.

[AP]

http://www.tradefinancemagazine.com/Article/2138009/Search/Results/London-Countertrade-sets-

dates.html?Keywords=COUNTERTRADE

Hipcricket Maintains Competitive Advantage With IndustryLeading 400,000 Mobile CampaignsMobile Engagement and Analytics Leader Completes Record 150,000 Campaigns in Calendar 2013BELLEVUE, WA--(Marketwired - Feb 11, 2014) - Hipcricket

, Inc. (OTCBB:HIPP)

(OTCQB:HIPP), the leader in mobile engagement and analytics, reported that it has executed

more than 400,000 mobile advertising and marketing campaigns through itsindustry-leading ADLIFE platformto date. This milestone marks the most campaigns completed in the industry since

its founding in 2004, reflecting Hipcricket's industry leadership and unparalleled technologyplatform.

These campaigns service hundreds of unique clients. Among these are 26 Fortune 100 companies

including Ford Motors, Google, Mondelz International and Costco. Recent campaign highlights

include:

Working with Mondelzand Googleto design and build a series of consumer-focused, mobile

optimized websites for multiple Mondelz brands.

Developed and implemented a mobile checkout system forMGM Resorts Internationalthat reduced

checkout times.

Expanded penetration in lottery sector by powering interactive mobile component ofVirginia Lottery's

successfulZ-VA game.

"We continue to be the mobile advertising and marketing company the industry turns to for

inspiration and guidance," said Ivan Braiker, Hipcricket CEO. "Our cutting edge mobile
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press-release%2fhipcricket-reduces-mobile-checkout-times-mgm-resorts-international-mere-seconds-otcbb-hipp-1833926.htmhttp://ctt.marketwire.com/?release=1088856&id=3882673&type=1&url=http%3a%2f%2fwww.marketwired.com%2fpress-release%2fhipcricket-partners-with-mondelez-international-google-build-mobile-websites-multiple-otcbb-hipp-1838774.htmhttp://ctt.marketwire.com/?release=1088856&id=3882670&type=1&url=http%3a%2f%2fwww.hipcricket.com%2fadlife-platformhttp://ctt.marketwire.com/?release=1088856&id=3882670&type=1&url=http%3a%2f%2fwww.hipcricket.com%2fadlife-platformhttp://www.marketwired.com/news_room/Stock?ticker=HIPPhttp://www.marketwired.com/news_room/Stock?ticker=HIPPhttp://www.tradefinancemagazine.com/Article/2138009/Search/Results/London-Countertrade-sets-dates.html?Keywords=COUNTERTRADEhttp://www.tradefinancemagazine.com/Article/2138009/Search/Results/London-Countertrade-sets-dates.html?Keywords=COUNTERTRADEhttp://hosted.ap.org/dynamic/stories/E/EU_EUROPE_UKRAINE?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-02-10-17-22-29http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/foraff/140960.pdf


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engagement and analytics platform AD LIFE, provides customers a better and more complete

picture of their return on investment. We're constantly challenging clients to do more because we

can show them how well mobile works. This is the Hipcricket advantage we will continue toleverage throughout 2014 and beyond."About Hipcricket

Hipcricket, Inc. (OTCBB:HIPP)& (OTCQB:HIPP)provides a unified mobile engagement

platform that drives awareness, sales and loyalty. ItsAD LIFE platformhas been used by

internationally recognized brands and agencies to power more than 400,000 campaigns across

SMS, 2D/QR codes, mobile websites, advertising networks, social media and branded apps. Foradditional Hipcricket news and information, visitwww.hipcricket.comor text "NEWS" to 24474.

Hipcricket, AD LIFE and the Hipcricket logo are trademarks of Hipcricket, Inc. All rights

reserved. 2009-14.Important Cautions Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding future events and our future

financial performance. All statements other than present and historical facts contained in thisrelease, including any statements regarding our plans for future operations, anticipated future

financial position, anticipated results of operations, financing plans, business strategy,

competitive position, opportunities for growth and industry trends, are forward-lookingstatements. All forward-looking statements involve risks, uncertainties and contingencies, many

of which are beyond our control. Our actual results, performance, or achievements may differ

materially from those projected or assumed in any of the forward-looking statements. Factors

that could cause actual results to differ materially from the forward-looking statements include,among others: overall economic and business conditions; the demand for our products and

services; competitive factors in our industry; the emergence of new technologies; our cash

position; the availability of funding sources; the strength of our intellectual property portfolio;

and changes in government regulations in our industry. A more detailed discussion of thesefactors is set forth in our annual report on Form 10-K for the year ended February 28, 2013 and

other reports filed with the U.S. Securities and Exchange Commission. The Company does not

intend, and undertakes no duty, to update any forward-looking statement to reflect future eventsor circumstances.

Successfully implemented strategies will lift a firm to superior performance by facilitating the firm with competitive advantage to

outperform current or potential players (Passemard and Calantone 2000, p. 18) .[4]

To gain competitive advantage a business

strategy of a firm manipulates the various resources over which it has direct control and these resources have the ability to generate

competitive advantage

India, Iran call for regional common marketPTIDec 14, 2003, 04.35pm IST

DUBAI: India and Iran have called for the establishment of a regional commonmarket along with

Pakistan to promote friendly relations and commerce in the region.
http://www.marketwired.com/news_room/Stock?ticker=HIPPhttp://www.marketwired.com/news_room/Stock?ticker=HIPPhttp://www.marketwired.com/news_room/Stock?ticker=HIPPhttp://www.marketwired.com/news_room/Stock?ticker=HIPPhttp://www.marketwired.com/news_room/Stock?ticker=HIPPhttp://www.marketwired.com/news_room/Stock?ticker=HIPPhttp://ctt.marketwire.com/?release=1088856&id=3882682&type=1&url=http%3a%2f%2fhipcricket.com%2fadlife-platformhttp://ctt.marketwire.com/?release=1088856&id=3882682&type=1&url=http%3a%2f%2fhipcricket.com%2fadlife-platformhttp://ctt.marketwire.com/?release=1088856&id=3882682&type=1&url=http%3a%2f%2fhipcricket.com%2fadlife-platformhttp://ctt.marketwire.com/?release=1088856&id=3882685&type=1&url=http%3a%2f%2fwww.hipcricket.com%2fhttp://ctt.marketwire.com/?release=1088856&id=3882685&type=1&url=http%3a%2f%2fwww.hipcricket.com%2fhttp://ctt.marketwire.com/?release=1088856&id=3882685&type=1&url=http%3a%2f%2fwww.hipcricket.com%2fhttp://en.wikipedia.org/wiki/Competitive_advantage#cite_note-4http://en.wikipedia.org/wiki/Competitive_advantage#cite_note-4http://en.wikipedia.org/wiki/Competitive_advantage#cite_note-4http://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://en.wikipedia.org/wiki/Competitive_advantage#cite_note-4http://ctt.marketwire.com/?release=1088856&id=3882685&type=1&url=http%3a%2f%2fwww.hipcricket.com%2fhttp://ctt.marketwire.com/?release=1088856&id=3882682&type=1&url=http%3a%2f%2fhipcricket.com%2fadlife-platformhttp://www.marketwired.com/news_room/Stock?ticker=HIPPhttp://www.marketwired.com/news_room/Stock?ticker=HIPP


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Chairman of Iran's Expediency Council Akbar Hashemi Rafsanjani agreed with the proposal made by the

visiting External Affairs Minister Yashwant Sinha at the Joint Commission meeting in Tehran yesterday.

Through good and cordial relations, three regional powers Iran, Pakistan and India could establish a joint

regionalmarket ,Rafsanjani said.

He termed as "of prime importance" the good relations among the regional states, adding that this would

tremendously contribute to the prosperity of the regional countries.

Sinha expressed pleasure over the developing relations between Tehran and New Delhi and said the

economic relations between the two states need to reach an ideal level.

Referring to the situation in the region, he said fortunately the tension between India and Pakistan has

diminished, the official Iranian news agency IRNA reported.

Incidentally Sinha's visit comes at a time when a high-level Iraniantrade delegation headed by Ghulam

Hassam Haleemi is in Islamabad to promote bilateral trade by transforming their border cities into trade

markets on permanent basis.

Rafsanjani said Tehran and New Delhi should not lose any opportunity to expand the bilateral ties as they

have always had good historical, political, economic and cultural links.

He also said both Iran and India have huge potentials that could be developed and used in the areas of

transportation, private and public sectors, ports and industries.

He touched on the situation in Afghanistan and Iraq and said the US should take lessons from behavior of

the Afghans and Iraqis toward the forces from outside..

Earlier in the day, Sinha met Iran's judiciary chief Ayatollah Mahmoud Hashemi Shahroudi and discussed

the need for fighting terrorism.

Shahroudi said Iran and India are among the victims of terrorism in the region and have made efforts to

fight it and to free themselves from imperialism and despotism.Transition to a single market can have short termnegative impact on some sectors of a national economy due to increased international competition. Enterprises that previously

enjoyednational market protection and nationalsubsidy (and could therefore continue in business despite falling short of

international performance benchmarks) may struggle to survive against their more efficient peers, even for its traditional markets.

Ultimately, if the enterprise fails to improve its organization and methods, it will fail. The consequence may be unemployment or

migration.[

http://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-

bilateral-ties
http://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://en.wikipedia.org/wiki/Protectionismhttp://en.wikipedia.org/wiki/Subsidyhttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://en.wikipedia.org/wiki/Subsidyhttp://en.wikipedia.org/wiki/Protectionismhttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-tieshttp://articles.economictimes.indiatimes.com/2003-12-14/news/27538758_1_tehran-iran-and-india-bilateral-ties


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how social media influences market

segmentation

Market segmentationis amarketing strategythat involves dividing a broadtarget marketinto subsets

ofconsumerswho have common needs and priorities and then designing and implementing strategies to

target them.

Companies createproduct differentiationstrategies to target market segments.

Segmentation, the cornerstone of marketing

Few would disagree with the view that since the 1950s, when the practice ofmarket segmentation began, it has been the

cornerstone of any marketing strategy. If you define your market segments accurately, then the follow on activities of targeting

and positioning are much more effective.

Have online social media networks and their ability to engage with individuals interactively and in real-time made the practice of

categorising people into groups redundant? The answer has to be a resounding no! But it is changing.

Changing emphasis

Consumers are considerably more socially mobile and transient than when demographic segmentation was first being adopted by

marketers. Also, as result of the web and social media, consumers are much more informed and influenced (think Tripadviser),

they have access to greater choice and their smartphones are doing all of this for them wherever they are.

Therefore, the basic strategy of demographic segmentation and pigeon holing people into presumed and fixed characteristics is

less relevant today. Grouping people into segments by geography, age, gender, profession and income and assuming they are

never changing is not a great way to relate to your online audiences.

Therefore, the emphasis is towards the previously less used technique of psychographic segmentation. Simply put,

psychographics is about classifying people by their attitude and behaviour. Using monitoring tools its possible to gain deep

insight into user sentiment towards a product or service, whether it is positive, negative or neutral.

You can also track consumers interests, opinions and interests. This form of social network psychographic segmentation is

becoming known as socialgraphics.

Go where your segments are hanging out

Using social networks, brands are able to find where their traditionalmarket segments are hanging out online and engage

with them. These are self segmenting groups brought together through a common interest such as hobbies, sport, health, jobs etc.

These are very fertile forums for brands to promote themselves to their exact target segments that are conveniently congregating

in one place.
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These communities of interest are intentionally being fostered by social network platforms who can charge brands to participate

in them and include Google+ Circles and LinkedIn Groups. But there are scores of other online communities that brands can a

join in with.

However, when entering social networks brands are participating in peoples social spaces and they have to earn the right to be

there. These are places where users go to be informed, educated, supported and entertained, not to be sold to. Therefore, thegolden rule of social media marketing is not to overtly advertise in the traditional sense. All my research has found that when

organisations do this their fans and followers leave in droves.

Pull- in yourmarket segments

Some socially savvy organisations are using a strategy that I have termed segmentation pull. This involves setting up your own

hosted online community and pulling in yourmarket segments. For example, one of Viapoints team master-mindedOpen

Forum,an online community for SMEs hosted by American Express.

The community serves itself as well as Amex, offering support and guidance to all facets of running a small business. Rather than

advertising to the SME segment Amex has pulled or drawn in this segment.

Britmumsis another example of segmentation pull. Britmums host an on online community of mothers and has fostered a

community of 3000 bloggers. Each blogger gets on average 4000 page views per month creating an aggregated audience of 12

million. Mums are an ideal segment for many brands.

Influencing the influencers

About 10% of social network users generate 90% of the content. These are referred to as Creators or e-Influencers. In fact

they are bloggers. These people are highly influential and could be classified as a newmarket segment.

Influencers are often brand advocates and should be discovered and very carefully nurtured in order to help exert their influence.

But dont ask them to transparently talk about your product or gratuitously give them something for nothing, you will alienatethem. Give them something new and really interesting to talk about or review, thats what motivates them. This technique is

known as Social Influence Marketing.

There are also detractors or trolls. These are also influencers, but will vehemently give brands a bad press and their words can

be contagious like no other. There are plenty of examples where they have damaged brand reputation, so they need to be treated

with kid gloves. No corporate or official responses to their posts.

Creators and detractors are arguably newmarket segments, albeit ones that come and go. But then again thats how people

behave and thats what marketers can now tap into, behaviour.

Conversation marketing the panacea

Unless you only have handful of customers, one to one marketing is not practical. Yes marketers need to and can influence their

few influencers, but it is not practical to try and have individual online conversations with your whole customer base as some self

professed social media gurus will preach.
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However, conversation marketing is still possible if you go back to the principle of segmenting your customers. You can have

group conversations with communities of interest once you have found where they are hanging, out or youve pulled them into

your own online community.

Segmentation strategies are here to stay and are in fact becoming increasingly important, so ensure your social media marketing

team is fully trained on the concept and working hand-in-hand with your customer insight ormarket segmentation teams.

Paul Fennemore is appearing in theMarketingTech trackat Social Media World Forum, runnning at London Olympia on 27-28

of March, where he'll be discussing in more detail how to go about applying segmentation strategy to social media marketing and

what considerations are required. For more information on how to register for SMWF,click here.

About 1 year, 11 months ago - 0 comments

Categories:Community,Social Media,Strategy

The Indian Shrimp Industry Organizes to Fight theThreat of Anti-Dumping Action

B. Bhattarcharyya*

Disclaimer:Opinions expressed in the case

studies and any errors oromissions therein are the

responsibility of their authorsand not of the editors of thisvolume or of the institutions

with which they are affiliated.The authors of the case studieswish to disassociate the

institutions with which they areassociated from opinions

expressed in the case studiesand from any errors or omission

therein.

>Case Studies main page>Introduction

ON THIS PAGE:

>I. The case history>II. The national andinternational context

>III. The Indian shrimp industryand its response

>WTO-related issues>IV. Lessons learnt

This case study deals with the way in which the Indian shrimp industryresponded when faced with an anti-dumping action in the United States.It also indicates the potential impact of the anti-dumping action on thefragmented, small-producers-dominated industry.

I. The case history back to top

On 31 December 2003, the Ad Hoc Shrimp Trade Action Committee(ASTAC), an association of shrimp farmers in eight southern states of theUnited States, filed an anti-dumping petition against six countries Brazil, China, Ecuador, India, Thailand and Vietnam. The petitionalleged that these countries had dumped their shrimps in the USmarket

.Though the actual petition was made by the Ad Hoc Shrimp TradeAction Committee, whose members are located in Alabama, Florida,Georgia, Louisiana, Mississippi, North Carolina, South Carolina and

Texas, the Southern Shrimp Alliance (SSA) had been organizing theprocess of seeking redress.

The petition meeting statutory requirements, on 21 January 2004 the USDepartment of Commerce (DOC) announced the initiation of anti-dumping investigations against the six countries. Products coveredinclude warm water shrimp, whether frozen or canned, wild caught(ocean harvested) or farm-raised (produced by aqua-culture), head-on or
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head-off, shell-on or peeled, tail-on or tail-off, deveined or notdeveined, cooked or raw, or otherwise processed in frozen or cannedform.

The Department notified the InternationalTrade Commission (ITC) ofits decision on initiation. On 17 February 2004 the International TradeCommission announced its decision that there was a reasonableindication that the US shrimp industry is materially injured orthreatened with material injury by imports, allegedly at less than fairvalue, from the six identified countries. As a result, the Department ofCommerce continued with its investigations and gave its preliminarydetermination on 28 July 2004. The ratio of preliminary duty variesbetween 3.56% and 27.49% for three mandatory respondents selected bythe DOC. The weighted arranged rate for India is 14.2%, and the averagerate for China is 49.09%, for Brazil 36.91%, for Vietnam 16.01%, forEcuador 7.3% and for Thailand 6.39%.

II. The national and international context back to top

The trouble had started much earlier than December 2003. On 26February 2002, Reggie Dupre, a Louisiana state senator, alleged thattainted farm-raised Asian shrimp was being diverted from Europe anddumped on the USmarket .Dupre was calling for a congressionalinvestigation into food safety and unfair pricing, as local fishermenvoiced concern that imports had depressed the prices they got for thelocally harvested shrimp. By September 2002, shrimp industryrepresentatives from eight southern states had got together to fight thecase against imported shrimp from certain countries. We stand a better

chance of success when all shrimp-producing states come on board, asGeorge Barisich, president of the United Commercial FishermansAssociation, observed.

On 22 October 2002, representatives of the shrimp industry from theeight southern states voted to form the Southern Shrimp Alliance to fightunfair competition from imported farm-raised shrimp from certaincountries. There was, however, a basic problem. It was estimated that itmight cost more than US$3 million in terms of legal expenses to go foran anti-dumping petition.

There were also problems associated with divergenttrade interests.Shrimp importers and distributors were afraid that a long-drawn-out

battle would affect the supply of imported shrimp and adversely affecttheir business. Wally Stevens, president of the American SeafoodDistributors Association, described how the salmon industry in Maine hadfiled an anti-dumping petition against Norway in 1990, hoping tostabilize prices. Twelve years after winning and spending up to $10million, salmon was selling at half the price prevailing at the time of thebeginning of the dispute. This is definitely not the right way to go. Itconsumes an immense amount of money and is not a long-term solutionin terms of maintaining viability. In a statement in January 2003,
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Stevens said that his organization, in support of free and fair trade,would oppose any anti-dumping action by the SSA.

In the meantime, countries threatened with the prospective actionstarted reacting. Vietnam, one of the countries identified almost at thebeginning of the SSA exercises and also highly dependent on theUSmarket for shrimp exports, was the first to protest. Foreign Ministryspokeperson Phan Thuy Thanh said in a statement on 12 September 2002that I can say with certainty that Vietnam has never dumped its shrimp,and its shrimp have been sold at market prices. Thailand was anothercountry to lodge a protest. Kenneth Pierce, of Willkie Farr & Gallagher,representing the Thai Frozen Foods Association, condemned the move toconsider anti-dumping action against Thai shrimp exports. Thailandsshrimps have never been dumped in the United States, nor have theycaused material damage to US shrimp, he said in a statement on 25November 2002. As evidence mounted of the SSAs determination to goahead with the petition on anti-dumping, other threatened countriesalso started taking preventive actions. Rokhmin Dahiri, the IndonesianMaritime and Fisheries Minister, denied allegations that the Indonesian

government subsidized its shrimp farmers. He said in a statement on 25August 2003 that the price of shrimp on the domestic market was muchlower than the export price. The dumping charge was baseless and,therefore, the United States should exclude Indonesia from the proposedanti-dumping investigations. The government of Bangladesh took similaraction, and Vietnam also started working out alliances. Nguyen Thi HongMinh, Vietnamese Deputy Fisheries Minister, said in a statement on 4August 2003 that the Vietnamese shrimp businesses and theircounterparts in south-east Asia, India and China as well as US shrimpimporters were considering measures including lobbying to prevent alawsuit.

The Indian government and the Indian shrimp industry were aware of the

threat. Arun Jaitley, the then Minister for Commerce, made a statementin June 2003 after his official visit to the United States: We areanticipating an action against our shrimp exports because our share inthe USmarket is on the rise. Duringthe whole of 2003, the SSA wentthrough the process of raising the required resources and trimming thenumber of countries against which dumping action was to be brought, asthe cost of the legal battle increased with the number of countries.After a compromise with the Mexican shrimp industry, the number ofcountries was ultimately brought down to six.

The main contentions of the petitioners were as follows.

The six named countries accounted for 74% of shrimp imports inthe USmarket .

Imports from the six countries increased from 466 million lb. in2000 to 650 million lb in 2002.

Import prices of the targeted countries had dropped by 28% inthe previous three years. The average unit value of the targetedcountries in 2000 was $3.54; this had fallen to $2.55 in 2002, on
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a headless, shell-on equivalent basis.

The average dockside price for one count size of gulf shrimpdropped from $6.08 to $3.30 per pound from 2000 to 2002.

The United States was the most openmarket in the world.

High tariff rates in other large importing countries provided apowerful incentive for exporters to increase shrimp shipments tothe United States. Likewise, the US market also served as themarket of last resort when shrimp shipments were denied entryto other markets such as the European Union due to thediscovery of unacceptable levels of contaminants.

III. The Indian shrimp industry and its response back to top

The first concrete signal that India might be included in the USindustrys anti-dumping petition was received by the Indian governmentin June 2003. That anti-dumping investigations against Indian shrimpimports might be initiated was hinted at during bilateral talks when thethen Commerce and Industry Minister Arun Jaitley had met hiscounterpart in Washington at that time. The reason given was thatIndias shrimp exports to the United States had been rising rapidly duringthe previous three years, from $255.93 million during 2000-1 to $299.05million during 2002-3.

Indias marine products industry has been one of the major exportsuccess stories. From an export base of just Rs. 450 million in 1971-2, itincreased to Rs. 68,810 million in 2002-3. Shrimp is the mainstay of

Indias marine product exports.

Japan has traditionally been the biggest exportmarket for Indiasmarine products, followed by the United States, China and several EUcountries. There was an over-dependence on the Japanese market, asshrimp is the major export item which Japan imports in huge volume.However, in the recent past, there has been a gradual decline in theintake from Japan with an increasing absorption in the United States, aswell as some other countries. The United States, traditionally a buyer ofsmall-sized shrimp from India, has now started buying many othervarieties, including black tiger shrimp, resulting in its occupying the topslot in Indias export markets of marine products, replacing Japan in2002-3.

Success in Indias shrimp export is directly attributable to thedevelopment of shrimp culture. Assisted by the Marine Products ExportDevelopment Authority (MPEDA), shrimp culture has developed as amajor industry in several coastal states. It is mostly an enterprise ofsmall and medium farmers, and has led to the utilization of otherwiseunproductive areas in the coastal region, contributing to improvementsin the socio-economic conditions of the rural poor in the shrimp farming
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areas. It has created direct employment of about 300, 000 people andindirect employment to over 700, 000.

The Indian government has played an important role in the promotion ofmarine product exports, including the development of shrimp farming.The MPEDA is a government-sponsored body whose mandate covers thedevelopment of the industry as a whole, including export promotion. It isunder the administrative control of the Department of Commerce and isheaded by a senior officer of the Indian Administrative Service. Itsgoverning council comprises senior officials of the central and stategovernments as well as representatives of the marine products industry.

The Seafoods Exporters Association of India (SEAI) is the nodal body ofthe exporters community and is represented on the MPEDA governingcouncil. There is, therefore, close co-ordination between these twobodies which are primarily responsible for organizing the shrimpindustrys as well as the governments response to the US anti-dumpinginvestigations.

After the statement of the Commerce Minister on the possible threat toIndian shrimp exports to the United States, these two bodies went intoaction. To explore the possibilities of avoiding the anti-dumping actionand, if necessary, to take legal action, a delegation comprising seniormembers of the SEAI went to Washington in September 2003, and afterdiscussions in various quarters, decided to sign an agreement with thelaw firm, Garvey Schubert and Barer, to be the counsel in the UnitedStates for the anti-dumping investigations. After returning to India, theSEAI informed its members through a circular letter that Ms LisbethLevinson, a partner in the firm, will personally and exclusively handleour case.

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