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INT_24.10.2013[46956]

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  • 8/14/2019 INT_24.10.2013[46956]

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    CLIPPINQuinta-

    ndice

    I. OMC ____WTO releases annual pa

    II. NEGOCIAUS-China trade talks a '

    Auto Dispute Weighs on

    China says Australian tr

    Taiwan eyes deeper tra

    Mercosur repetira histo

    Presidente Cartes visitaacercamiento al Mercos

    III. OUTROSTales from the Crypto C

    Germany, France unite

    G INTERNACINEGINTeira, 24 de outubro de 2

    __________________ ckage of trade and tariff data _______

    ES REGIONAIS E BILA turning point' in relations ___________

    Japan-U.S. Trade Talks ____________

    de deal likely within a year _______

    e ties with India ________________

    ia de la CAN en negociacin con la Un

    el viernes a Mujica para cerrar el crcur _____________________________

    __________________ ommunity _______________________

    in anger over U.S. spying accusations

    24.10.2013

    1

    NAL13

    ______ 2____________ 2ERAIS 4

    ____________ 4____________ 6____________ 7____________ 8n Europea ___ 9o de

    ___________ 11_____ 13___________ 13___________ 17

  • 8/14/2019 INT_24.10.2013[46956]

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    I.OMC

    WTO releases annual p

    4-traders

    International Trade Statistic

    end of 2012, covering merch

    measured in value-added te

    global value or production cdivide their operations a

    manufacturing of componen

    seeks to address the distorti

    to the last country of origin.

    Through the use of extensi

    noteworthy trends in global

    data. A methodological chap

    The publication serves as an

    anyone interested in intern

    print version to follow in N

    in Excel and PDF formats

    WTO's International Trade a

    the entire publication in En

    versions will be available by

    To further improve the quali

    by filling in the ITS 2013 Sur

    World Tariff Profiles 2013- a

    (ITC) and the UN Confer

    comprehensive tariff inform

    where data is available. It is

    to researchers and negotiato

    ckage of trade and tariff data

    2013 provides a detailed overview of wo

    andise and services trade as well as, for t

    ms. The new data covers both goods and

    ains. Its inclusion reflects the fact that coross the world, from the design of

    ts to final assembly. Providing data in

    on that may result from attributing the full

    e charts and maps, International Trade

    trade with links to numerous tables contai

    er explains how the data is compiled.

    invaluable reference tool for researchers,

    tional trade. It is available first in electr

    vember. Data can be downloaded from

    and from the searchable database as

    d Market Access data online application.

    lish is now available on the web site. F

    end-October.

    ty of the publication, we invite you to pro

    vey.

    joint publication of the WTO, the Internat

    ence on Trade and Development (UN

    tion on all WTO members and a number

    the only compilation of tariff information

    rs.

    24.10.2013

    2

    rld trade up to the

    e first time, trade

    services traded in

    panies nowadaysthe product and

    alue-added terms

    l commercial value

    tatistics illustrates

    ing more detailed

    policy makers and

    nic format with a

    the WTO web site

    ell as from the

    he PDF version of

    ench and Spanish

    ide your feedback

    ional Trade Centre

    TAD) - provides

    of other countries

    f its kind available

  • 8/14/2019 INT_24.10.2013[46956]

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    The publication summarizes

    as the market access condi

    profiles show both the maxi

    rates that countries actually

    WTO members' participation

    data provided on tariff eli

    Mechanism.

    Trade Profiles 2013provides

    measures of WTO members

    for each of these provided i

    tool for anyone looking for e

    The data provided include b

    GDP), trade policy indicato

    notifications outstanding an

    (broken down by broad pro

    trade flows (with a breakdo

    With one page devoted to

    global trade.

    Services Profiles 2013pr

    transportation, telecommuni

    will be gradually expanded i

    The information is derived fr

    statistics, balance of paym

    statistics, foreign direct inv

    sourced from international/

    reflect data as contained i

    services database as of July

    All three profiles - World

    available in the WTO Statisti

    are also available in English

    the market access that each country offers

    ions faced by its products in its major ex

    um tariff rates that are legally "bound" i

    apply. The technical annex in this year'

    in regional trade agreements (RTAs), wi

    ination in RTAs notified under the W

    the latest information on trade flows an

    , observers and other selected economies

    a standardized format, the publication is

    sential trade statistics.

    asic economic indicators (such as gross d

    s (such as tariffs, import duties, the nu

    contingency measures in force), merch

    uct categories and major origins and des

    n by major components) and industrial p

    each economy, TradeProfiles offers a co

    ovides statistics on key "infrastructu

    cations, finance and insurance, for 140 ec

    future editions.

    om multiple sources, such as national acc

    ents statistics, foreign affiliates' trade i

    estment (FDI) statistics and quantitative

    regional organizations and specialized b

    n the WTO's Integrated Trade Intellige

    2013.

    ariff Profiles, Trade ProfilesandServices

    cs Database in Excel and PDF formats, an

    on the WTO web site. The French and Sp

    24.10.2013

    3

    to imports as well

    port markets. The

    the WTO and the

    issue focuses on

    th complementary

    O's Transparency

    d the trade policy

    . With information

    a quick reference

    mestic product or

    mber of disputes,

    ndise trade flows

    inations), services

    roperty indicators.

    ncise overview of

    re services", i.e.

    nomies. Coverage

    unts, employment

    services (FATS)

    indicators largely

    dies. The profiles

    ce Portal (I-TIP)

    Profiles- are now

    the PDF versions

    anish versions will

  • 8/14/2019 INT_24.10.2013[46956]

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    be available by end-Octob

    English, French and Spani

    application for mobile device

    All three profiles and Inte

    bookshop.

    The WTO Statistics web pag

    Access data online ap

    Online and Tariff Downloads

    Profiles (a PDF snapshot of

    Commodity Profiles (a PDF

    merchandise trade, agricultu

    maps, which allows for com

    economic indicators.

    II.NEGOCIAES RE

    US-China trade talks a '

    China Daily

    Beijing ready to advance

    The Bilateral Investment Tr

    "inflection point" in economi

    Beijing is ready to work

    welcomes foreign companies

    development, said Xie Fen

    North American and Oceania

    "China also hopes the US

    environment for Chinese c

    er. The printed versionswill be available

    h. World Tariff Profiles is also available

    s.

    national Trade Statisticscan be ordere

    also contains updates of the International

    plication, the Statistics Database, t

    applications, new versions of World an

    012 merchandise exports globally and by

    napshot of 2012 merchandise exports an

    re, fuels and mining and manufactured pr

    arison between countries or customs terr

    IONAIS E BILATERAIS

    turning point' in relations

    IT talks with Washington, says diplo

    aty talks between China and the United

    cooperation, a high-profile diplomat said

    ith Washington to advance the BIT ne

    to "share the dividends" of China's new r

    , director-general of the Foreign Ministr

    n affairs.

    ill take measures to provide a fair and

    ompanies and facilitate healthy develop

    24.10.2013

    4

    in November in

    on request as an

    from the WTO

    Trade and Market

    e Tariff Analysis

    Regional Export

    region) and World

    d imports for total

    ducts), and World

    itories on selected

    at

    States can be an

    n Wednesday.

    gotiations, and it

    und of reform and

    y's department of

    sound investment

    ment of two-way

  • 8/14/2019 INT_24.10.2013[46956]

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    investment," Xie said durin

    based Brookings Institution.

    The 10th round of talks is b

    direct investment. The talks

    Xi Jinping and US President

    Xie said the talks were be

    treatment, accompanied by

    China is taking concrete step

    of the 18th Central Commit

    plan for deepening reform, i

    He also referred to the pilo

    investment access and the

    boost both imports and expo

    He estimated that over the

    trillion and its overseas inv

    people will reach 400 million

    Another area of cooperation

    of liquefied natural gas expo

    development.

    Xie also urged the loosenin

    long undermined the otherwi

    The BIT is probably the m

    complements both the Tran

    and Investment Partnership.

    These are two parallel free t

    region and Europe, said Ric

    Studies at the Brookings Ins

    a seminar co-sponsored by Fudan Univ

    eing held this week on the BIT, which wo

    were put on the fast track after a meeting

    arack Obama.

    ing conducted on the basis of pre-esta

    "negative list" approach.

    s to facilitate the talks, Xie said. The upco

    tee of the Communist Party of China will

    cluding a time frame and road map.

    free trade zone in Shanghai, which is in

    ervice sector, with trade facilitation meas

    rts.

    ext five years, China's merchandise impo

    stment will reach $500 billion. Outboun

    .

    is in the energy sector, Xie noted. He calle

    rts from the US to China and more collabo

    of US high-technology export controls,

    se swift growth in bilateral trade.

    st important trade negotiation since the

    -Pacific Partnership Agreement and the

    ade pacts in which the US is engaged acr

    ard Bush, director of the Center for Nor

    itution.

    24.10.2013

    5

    rsity and the US-

    uld boost two-way

    between President

    lishment national

    ming Third Plenum

    draw up a master

    ended to broaden

    ures introduced to

    ts will exceed $10

    trips by Chinese

    d for an early start

    ation on shale gas

    which he said had

    WTO talks, as it

    ransatlantic Trade

    ss the Asia-Pacific

    heast Asian Policy

  • 8/14/2019 INT_24.10.2013[46956]

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    "I think the BIT opens new

    would actually be a good ste

    Kenneth Jarrett, president o

    BIT will benefit US businesse

    Auto Dispute Weighs o

    The Wall Street Journal

    Divisive issues in the auto

    Washington and Tokyo, U.S.

    Japan this year joined oth

    Partnership, a set of trade

    December. Separate from t

    Japan, as by far the two bi

    longstanding trade issues,

    agricultural restrictions and

    This third round of our par

    important work remains p

    the acting deputy U.S. trade

    Tokyo has long objected to

    trucks, and the U.S. says J

    countries are discussing a

    slowly as a part of the TPP,

    U.S. vehicles that can be shi

    Besides the traditional trade

    targeting a weaker yen, a s

    and hurts Detroit along the

    doors for a deeper and richer economic

    ppingstone to include China in future TPP t

    f the American Chamber of Commerce in

    s in China by addressing market access is

    Japan-U.S. Trade Talks

    obile industry continue to weigh on tr

    officials said Wednesday.

    r Asian and Pacific countries working on

    negotiations the U.S. is hoping to wra

    he dozen countries hammering out the

    ggest economies in the group, are seeki

    including access to the Japanese i

    ars.

    llel negotiations with Japan yielded some

    rticularly in the area of motor vehicles,

    representative, in a statement.

    U.S. automobile tariffs, including a high

    apans car market isnt fully open to for

    lan to phase out the U.S. tariffs on Ja

    and Japan has moved to more than dou

    ped under a preferential program.

    issues, some U.S. lawmakers say Japans

    hift that makes Japanese cars more com

    way. The lawmakers want the TPP to ad

    24.10.2013

    6

    elationship, and it

    alks," he said.

    hanghai, said the

    ues.

    de talks between

    the Trans-Pacific

    p up as early as

    PP, the U.S. and

    ng to settle some

    surance market,

    progress, although

    aid Wendy Cutler,

    duty on Japanese

    ign cars. The two

    anese autos very

    ble the number of

    monetary policy is

    etitive in the U.S.

    dress the issue of

  • 8/14/2019 INT_24.10.2013[46956]

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    currency manipulation a

    Representative Michael From

    The cost of imported vehicle

    largest such drop in more

    Wednesday. Japans yen ha

    year.

    China says Australian t

    ABC News

    China appears to have en

    trade deal between the t

    Prime Minister Tony Abbott

    free trade deal within his firs

    After years of failed talks it

    into the hands of Chinese ne

    But now senior Chinese poli

    would sign such an agreeme

    The politburo member mad

    Governor-General Quentin B

    d have discussed their concerns

    an and Treasury Secretary Jacob Lew.

    and parts declined 1.2% in September fr

    than three decades of records, the Labo

    s fallen about 12% against the dollar sin

    ade deal likely within a year

    dorsed the new Australian Governme

    o countries can be achieved within a

    as been criticised for promising to secur

    t year in office.

    was seen as overly optimistic. It was also

    gotiators who would use the deadline to b

    tician Wang Yang has said publicly that C

    nt within a year.

    this comment in a speech to an audien

    ryce.

    24.10.2013

    7

    ith U.S. Trade

    m a year ago, the

    r Department said

    e the start of the

    nt's claim that a

    ear.

    a China-Australia

    said to be playing

    rgain hard.

    hina and Australia

    ce which included

  • 8/14/2019 INT_24.10.2013[46956]

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    Taiwan eyes deeper tra

    The Economic Times

    Taiwan today said it is lo

    especially through collaborat

    "We would like to collabora

    processing and tourism," sai

    and Cultural Center in India.

    "India and Taiwan can sig

    barriers and increase tra

    restrictions and providing T

    said at a Taiwan Excellence

    The two countries have

    agreement.

    "We want to promote trad

    market. It has a big labour

    are important ingredients fo

    The foreign direct investme

    was 0.04 per cent in the tot

    "We would like to increase t

    fiscal," Tien said.

    At present, around 80 Taiw

    However, Indian companies'

    Bollywood actress Malaika A

    three years and is its celebri

    de ties with India

    king at enhancing trade and investmen

    ion in sectors such as IT, food processing

    te with India on sectors like information

    d Chung-Kwang Tien, Representative of t

    n an economic cooperation agreement

    e volume. Besides, India should con

    iwan with a visa on arrival facility to bo

    013 Campaign event here.

    lready signed an investment promotio

    and commerce given the fact that Ind

    force, rich natural resources and a young

    future development," Tien said.

    t from Taiwan stood at USD 65.56 million

    l FDI flow to India.

    he volume of trade with India by 10 per

    anese companies are operating in India i

    presence in Taiwan is still negligible.

    ora Khan has been associated with the Ca

    y spokesperson.

    24.10.2013

    8

    t ties with India,

    nd tourism.

    technology, food

    e Taipei Economic

    which will reduce

    ider easing visa

    ost tourism," Tien

    n and protection

    ia is an emerging

    population, which

    in 2011-12 which

    ent in the current

    n various sectors.

    mpaign for the last

  • 8/14/2019 INT_24.10.2013[46956]

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    Mercosur repetira hist

    Europea

    Amrica Economa

    Esta semana Brasil y Ur

    propuestas para un acuer

    El Mercosur, que alguna ve

    verse abocado a repetir laenfrenta una divisin intern

    socios con la Unin Europea

    Esta semana Brasil y Urugu

    para un acuerdo comercial

    miembros fundadores del

    brevedad" para hacer una pr

    Sin embargo, las circunstan

    en una encrucijada en la qu

    perder la oportunidad de t

    mundo.

    Es difcil que Paraguay pre

    despus del levantamiento d

    de Fernando Lugo como pre

    Y Argentina, inmersa en la c

    las que los sondeos indican

    Cristina Fernndez convaleci

    y Uruguay respecto a la Uni

    El vicepresidente Amado Bo

    sealado hace solo unos dalas naciones ms desarrolla

    "se ha resignado a la industr

    ria de la CAN en negociacin con l

    guay reafirmaron su compromiso de

    do comercial con la UE antes de fin de

    fue el nio bonito de la integracin latin

    historia de la alicada Comunidad Andia causa de los acuerdos comerciales de

    (UE) y Estados Unidos.

    y reafirmaron su compromiso de tener lis

    con la UE antes de fin de ao e instar

    ercosur, Argentina y Paraguay, a plante

    esentacin en bloque.

    ias pueden poner al Mercosur, como ya l

    unos pases elijan negociar por separado

    ener como socio al ms importante blo

    sente pronto una oferta, pues no ha re

    e la suspensin con la que fue sancionado

    idente por el Legislativo paraguayo, en ju

    ampaa para las elecciones legislativas de

    que el oficialismo puede sufrir un revs,

    ente de una operacin, no parece estar en

    n Europea.

    dou, a cargo de la presidencia en ausenci

    s que las negociaciones entre los pases das "siempre han sido muy desbalanceada

    ia nacional a cambio de nada".

    24.10.2013

    9

    Unin

    tener listas sus

    ao.

    americana, puede

    a (CAN), la cualdos de sus cuatro

    as sus propuestas

    n a los otros dos

    r las suyas "a la

    ocurri a la CAN,

    con la UE para no

    que comercial del

    gresado al bloque

    tras la destitucin

    io de 2012.

    este domingo, en

    con la presidenta

    sintona con Brasil

    de Fernndez, ha

    Amrica Latina y" y muchas veces

  • 8/14/2019 INT_24.10.2013[46956]

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    El quinto socio del Mercosur,

    Paraguay suspendido sala,

    reanudadas en 2010 despu

    el obstculo insalvable del p

    En tiempos del fallecido pre

    contraria a los acuerdos de li

    potencias.

    El motivo aducido por V

    negociaciones que Colombi

    unos tratados comerciales q

    Chvez deca que esas neg

    sigue en pie, aunque maltr

    principal motor econmico, y

    Colombia y Per, no conte

    tambin a la negociacin c

    tambin Bolivia y Ecuador, q

    Los acuerdos comerciales d

    en junio de 2012 y entraron

    La UE, que escogi al Merc

    aos 90 inici su acercamie

    con pases y grupos de toda

    Mxico, Chile, Centroamric

    al contrario que los pase

    "europeos" por su cultura y l

    Desde luego las posturas irr

    que la negociacin UE-Merc

    firmaron en 1995 un gran

    Venezuela, que entr al bloque casi al mi

    no participa en las negociaciones con l

    s de permanecer estancadas durante aos

    oteccionismo europeo en materia agropec

    sidente Hugo Chvez, Venezuela siempre

    bre comercio entre los pases latinoameric

    nezuela para retirarse de la CAN en

    y Per mantenan individualmente con

    e entraron en vigor en 2012 y 2009, resp

    ciaciones haban herido de muerte a la C

    echo precisamente por la salida de Vene

    adems dividido.

    tos con buscar sus TLC con Estados Un

    n la Unin Europea, en la que en un pri

    ue son aliados polticos de Venezuela, Cub

    los Veintiocho con los dos pases andin

    en vigor en agosto de 2013.

    sur como su socio estratgico cuando e

    nto a Amrica Latina, ha logrado paradji

    las subrregiones latinoamericanas menos

    , el Caribe, Colombia y Per son ya socios

    s de la regin que precisamente son

    a composicin de su poblacin.

    conciliables en materia de poltica agraria

    osur no haya dado resultados, pese a qu

    cuerdo marco de cooperacin, pero tam

    24.10.2013

    10

    mo tiempo que un

    a UE, que fueron

    en gran parte por

    aria.

    tuvo una postura

    anos y las grandes

    2006 fueron las

    EE.UU. para sellar

    ctivamente.

    N, pero el bloque

    zuela, que era su

    idos, se abocaron

    cipio participaban

    y Nicaragua.

    s fueron suscritos

    la dcada de los

    camente acuerdos

    con ese.

    de los Veintiocho,

    considerados ms

    tienen que ver en

    e ambas regiones

    bin ha influido el

  • 8/14/2019 INT_24.10.2013[46956]

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    hecho de que el Mercosur p

    pas o bloque de forma indivi

    Varios analistas y observado

    UE, ms posibilidades hay

    opten por negociar por sepa

    La zona de libre comercio

    acuerdo con el calendario ini

    El presidente de la Comisin

    octubre que "pronto" habr

    destac que los brasileos e

    Presidente Cartes visit

    acercamiento al Mercos

    Iberoamrica Central d

    Con este viaje se co

    importante" dijo hoy el c

    el mandatario en Palacio

    El presidente paraguayo Horuruguayo Jos Pepe Mujic

    bilaterales a los presidente

    Paraguay antes de fin de a

    Con este viaje se completa

    hoy el canciller paraguayo El

    de Gobierno.

    ohbe expresamente a sus miembros neg

    dual.

    res opinan que cuanto ms tarde en llega

    e que algunos de los miembros de Mer

    ado, como hicieron en su da Colombia y P

    UE-Mercosur debera haberse hecho real

    cial.

    Europea, Jos Manuel Durao Barroso, afir

    acontecimientos" en la negociacin entre l

    tn ahora "ms interesados en llegar a un

    el viernes a Mujica para cerrar el

    ur

    Notcias

    pleta la gira en el marco del M

    nciller paraguayo Eladio Loizaga lueg

    e Gobierno

    acio Cartes visitar el viernes de esta sema, en un encuentro con el que se cierra

    s del Mercosur, bloque que aguarda el

    .

    la gira en el marco del Mercosur, es mu

    adio Loizaga, luego de reunirse con el ma

    24.10.2013

    11

    ciar con un tercer

    el acuerdo con la

    osur se cansen y

    er en la CAN.

    idad en 2005, de

    m a mediados de

    a UE y Mercosur y

    acuerdo".

    rculo de

    rcosur es muy

    de reunirse con

    ana al mandatarioel ciclo de visitas

    retorno pleno de

    importante, dijo

    datario en Palacio

  • 8/14/2019 INT_24.10.2013[46956]

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    El canciller precis que este

    presidente Mujica, siendo e

    presidente paraguayo el 15

    Con la reunin con Mujica

    paraguayas con sus socios f

    Loizaga estim que an ant

    dar a conocer el nombre d

    modo a tener de nuevo un r

    Paraguay ya haba consegu

    Duarte Frutos como emb

    representante ante la Repbl

    Al igual que en sus conversa

    previsto abordar con el man

    y el intercambio comercial.

    Se tratarn temas que ha

    cooperacin en materia

    usufructuario del Puerto Nue

    Tambin se hablar sobre el

    inters de conocer el avanc

    empresarios en el World Tra

    El canciller afirm que una

    habrn visto los adelanto

    internacionales.

    Loizaga tiene previsto acom

    con su par uruguayo Luis Al

    retorno de Paraguay al Merc

    ser el segundo encuentro que va a mant

    l primero el que se tuvo en el marco d

    e agosto pasado

    se concretar el restablecimiento pleno

    ndadores del Mercosur.

    s del viaje de Cartes a Montevideo, la ca

    l embajador propuesto por Paraguay ante

    presentante diplomtico en ese pas.

    ido el plcet para la designacin del ex

    jador en Argentina y de Manuel Mar

    lica Federativa del Brasil.

    ciones con Cristina Fernndez y Dilma Ro

    atario uruguayo temas relacionados a la i

    en a la hidrova, se enfocar la posibili

    ortuaria, teniendo en cuenta de que

    va Palmira, anunci este martes el cancill

    Puerto de Aguas Profundas, donde el Para

    de dicho proyecto y figura en la agenda

    e Center.

    vez concluida este ciclo de conversacion

    s que se han hecho en el campo

    paar al presidente Cartes a Montevideo,

    magro, para conversar sobre los mecanis

    sur.

    24.10.2013

    12

    ener Cartes con el

    e la asuncin del

    de las relaciones

    cillera paraguaya

    el pas oriental,de

    residente Nicanor

    a Cceres como

    sseff, Cartes tiene

    nterconexin fsica

    dad de ampliar la

    el Paraguay es

    r Loizaga.

    guay expresar su

    un encuentro con

    s, en 60 das se

    e las relaciones

    donde se reunir

    mos para el pleno

  • 8/14/2019 INT_24.10.2013[46956]

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    III.OUTROS

    Tales from the Crypto C

    Foreign Affairs

    The NSA Hurt Cybersecuri

    Of all of the revelations ab

    stand out as the most worris

    the NSA has worked to weak

    computers secure communic

    introduced backdoors into s

    engaged in such activities, i

    the world) as much as any

    No one is surprised that the

    prowess. And, in general, th

    cryptanalysts who try to b

    implanting deliberate weakn

    have secretly been broken -

    dirty trick. It diminishes co

    national cyberdefense intere

    BETRAYED

    Few people realize the exten

    relies on trust. One of the di

    prove mathematically that

    transactions and encrypted l

    because they were created

    because other specialists tri

    ommunity

    ty. Now It Should Come Clean.

    ut the NSA that have come to light in r

    ome and surprising to cybersecurity exper

    en the international cryptographic standar

    ations and data. The second is that the N

    curity-critical software and hardware. If t

    has risked the computer security of the

    alicious attacks have to date.

    NSA breaks codes; the agency is famous f

    e race between designers who try to buil

    reak them ultimately benefits security.

    esses or actively encouraging the public

    - especially under the aegis of governme

    puter security for everyone and harms

    ts in a number of ways.

    t to which the cryptography that underpin

    rty secrets of the crypto world is that nob

    ore crypto algorithms -- the foundations

    aptops -- are secure. Instead, we trust th

    y some of the world's most experienced c

    d diligently to break them and failed.

    24.10.2013

    13

    cent months, two

    ts. The first is that

    ds that define how

    A has deliberately

    e NSA has indeed

    nited States (and

    or its cryptanalytic

    strong codes and

    ut surreptitiously

    to use codes that

    t authority -- is a

    the United States

    s Internet security

    ody knows how to

    of online financial

    at they are secure

    ryptographers and

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    Since the 1970s, the U.S.

    has played a central role in

    worthwhile, by setting the c

    the world over. NIST has do

    experts to design and evalu

    U.S. government to get th

    the AES cipher, the SHA-2 h

    curves -- adopted by industr

    these technologies had bee

    heart.

    There is now credible evid

    to canonize an inferior alg

    companies implemented the

    the NSA could potentially

    worldwide. Many in the cryp

    been subverted as well. S

    cryptographers are questioni

    If the loss of trust in

    of fragmented national and

    implementers and reduce se

    poor design and flawed indu

    to prevent copying of DVDs

    telephones, and the WEP en

    of these standards contain

    industries that developed th

    users to security vulnerabili

    be if some implementers, f

    snake-oil ciphers that offer

    avoidable. The NSA knows

    unadulterated. It could resto

    BACKWARD PROGRESS

    National Institute of Standards and

    coordinating this trust, and in deciding wh

    yptographic standards used by governme

    e an admirable job of organizing the effor

    te ciphers. It has also been able to harne

    se designs -- including such state-of-the

    ash functions, and public-key cryptograph

    y. In turn, American industry believed tha

    designed by a competent organization

    nce that the NSA has pushed NIST, in

    rithm designed with a backdoor for NS

    standardized algorithm in their software,

    get around security software on milli

    o community now fear that other NIST al

    ince no one knows which ones, thoug

    ng the trustworthiness of all NIST standar

    IST is permanent, the world could

    industry standards. That would caus

    curity for everyone. Computer lore is fille

    stry standards: for example, the encryptio

    , the A5/1 cipher that is supposed to se

    cryption that is supposed to keep WiFi ne

    laws that allow the encryption to be bro

    em to embarrassment and financial loss

    ties. Even worse than fragmented industr

    arful of backdoors in government-vetted

    no real protection. That situation is,

    which standards it has weakened an

    re trust by coming clean.

    24.10.2013

    14

    echnology (NIST)

    ich algorithms are

    nts and industries

    ts of cryptographic

    ss the clout of the

    art technology as

    y based on elliptic

    it could trust that

    ith its interests at

    t least one case,

    A use. Dozens of

    which means that

    ns of computers

    orithms may have

    , some renowned

    s.

    eturn to a time

    more work for

    with examples of

    n that is supposed

    ure calls on GSM

    tworks private. All

    ken, exposing the

    and exposing end

    y standards would

    crypto, turned to

    f course, entirely

    which ones are

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    Beyond undermining NIST

    in emerging cryptographic t

    cybersecurity in the near ter

    a next-generation technolo

    superior to what we use tod

    For the past few years,

    cryptography, promising be

    revelations, though, many c

    backing elliptic-curve crypt

    way to compromise it? Afte

    Edward Snowden, the pro

    against adoption of elliptic-c

    This was surprising. The c

    and the methods of attackin

    safety for these algorithms

    weaknesses in elliptic-curve

    understand it, and adopting

    core technology and in opaq

    If practitioners are unable t

    NSA tampering, the technol

    tossed aside.

    The NSA's activities have

    security technology: the ha

    generation of Intel process

    example, in selecting unpr

    shows, poor randomness is

    simply do not have any goo

    and this leads to predictable

    Intel's new random num

    introduces circuitry for pr

    standards, NSA activities have also

    echnologies that are among our best ho

    m. A central example is elliptic-curve cryp

    y that, as far as we know in the un

    y.

    NIST and the NSA have heavily pro

    ter performance and improved security.

    yptographers are skeptical of the NSA's m

    graphy to improve security or because i

    reviewing the documents leaked by form

    minent security expert Bruce Schneier

    rve cryptography.

    mmon alternatives to elliptic curves are

    them have improved to the point that to

    is slim. In contrast, there are no publ

    cryptography. Still, relatively few expert

    the standardized algorithms involves placi

    e parameters published by NIST.

    trust new technologies like this because

    ogies are next to useless. Two decades

    lso undermined trust in another otherwi

    dware random number generator integra

    rs. Random numbers are essential for c

    dictable secret keys for encryption. As

    a widespread security problem. Many

    source of randomness with which to gen

    encryption that is easy to break.

    er generator could put an end to

    ducing random numbers into widely

    24.10.2013

    15

    shaken confidence

    pes for improving

    tography, which is

    lassified world, is

    oted elliptic-curve

    In light of recent

    otives. Is the NSA

    has some secret

    er NSA contractor

    pointedly advised

    hree decades old,

    day, the margin of

    icly known major

    s outside the NSA

    g trust both in the

    f the possibility of

    f progress will be

    e promising new

    ted into the latest

    yptography -- for

    our own research

    omputing devices

    erate secure keys,

    ll that, since it

    used processors.

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    However, since random nu

    an ideal place for an NSA b

    that it's actually picking num

    random-looking method kn

    actually did tamper with the

    the bounds of imagination: l

    to insert vulnerabilities int

    developers will simply not t

    which systems it has tamper

    CYBERINSECURITY

    The scariest consequence o

    security for everyone who u

    way to design technology t

    everyone vulnerable.

    The NSA has many technical

    decrease the amount of eff

    keyspace available to a cry

    introducing deliberate softw

    methods -- through skillful r

    them. The NSA could also

    some secret information

    having backdoored is a pseu

    cryptographic secrets it mig

    key. Theoretically, such a m

    the very fact of the Snowden

    For the researchers who

    possibility that the NSA delib

    deeply unsettling. The age

    list that was already too lon

    waste untold hours ferreting

    and others won't, with the

    NSA has cost us.

    ber generators are used to generate sec

    ckdoor. It is not possible to look inside t

    bers randomly, as opposed to following so

    wn only to the NSA. There is no evide

    Intel random number generator. Howeve

    eaked documents reveal that one of the N

    commercial encryption systems" just li

    ake the risk of using it unless the NSA

    ed with.

    f the NSA's activities is that they lead

    ses technology that contains an NSA bac

    at allows only bad users to be exploited

    l options for building a backdoor. One wa

    rt required to mount an attack, by reduc

    ptographic system, adding subtle side-c

    are vulnerabilities. An adversary could d

    everse engineering or simply by getting l

    have designed backdoors that can only

    : the NIST standard that the NSA

    dorandom number generator whose state (

    t ever generate) is predictable if you kn

    ethod is safe as long as the secret key r

    leaks shows that even the NSA can't alwa

    ork to defend cryptographic systems a

    erately planted backdoors in NIST cryptog

    cys meddling adds a major new cyberse

    . Many of the nation's most skilled securi

    out the backdoors. Some of these weakn

    et result that we will only regain some o

    24.10.2013

    16

    ret keys, they are

    he CPU and verify

    me predictable but

    nce that the NSA

    r, it is not beyond

    SA's priorities was

    e this one. Many

    omes clean about

    o a direct loss of

    door. There is no

    ; backdoors make

    is to deliberately

    ing the entropy or

    annel attacks, or

    tect any of those

    cky -- and exploit

    e exploited using

    is accused of

    and thus all of the

    w a secret master

    mains secret. But

    ys ensure that.

    ainst attack, the

    aphic standards is

    curity threat to a

    ty researchers will

    sses will be found

    f the security that

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    There are far too many thre

    by our own government. Th

    problems, this one can be l

    about which technologies i

    Congress have proposed leg

    NSA generally operates withi

    to cease these underhand

    backdoors would go a long

    NSA has caused to everyone'

    Germany, France unite

    Reuters

    German and French accusati

    countries, including possibly

    to dominate a meeting of EU

    The two-day Brussels summi

    now be overshadowed by

    Washington against two of it

    For Germany the issue is pa

    evidence the chancellor's p

    dredges up memories of e

    Germany, where Merkel gre

    Following leaks by data anal

    National Security Agency's

    odds with a host of importan

    In an unusually strongly wo

    said the chancellor had spo

    charges.

    ats to cybersecurity to be worrying abou

    e one piece of good news is that, unlike

    gislated away. Congress could force the

    has weakened or falsely promoted. Se

    islation reining in the NSA's mass surveil

    n the bounds of the law, and strong legisl

    d practices and disclose the technical

    way to rebuilding trust and repairing th

    's security.

    in anger over U.S. spying accusati

    ons that the United States has run spying

    bugging Chancellor Angela Merkel's mobil

    leaders starting on Thursday.

    it, called to tackle a range of social and ec

    debate on how to respond to the alle

    s closest European Union allies.

    rticularly sensitive. Not only does the gov

    rsonal phone was monitored, but the ve

    vesdropping by the Stasi secret police i

    up.

    lyst Edward Snowden, which revealed the

    vast data-monitoring programs, Washing

    t allies, from Brazil to Saudi Arabia.

    ded statement on Wednesday evening, M

    en to President Barack Obama to seek cl

    24.10.2013

    17

    problems created

    ost cybersecurity

    SA to come clean

    veral members of

    llance tactics. The

    tion requiring NSA

    etails of existing

    damage that the

    ons

    operations in their

    e phone, are likely

    onomic issues, will

    ed espionage by

    rnment say it has

    y idea of bugging

    n the former East

    reach of the U.S.

    ton finds itself at

    erkel's spokesman

    rity on the spying

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    "She made clear that sh

    unacceptable and condemns

    White House spokesman Ja

    States "is not monitoring an

    open the possibility that it h

    A White House official decl

    bugged. "I'm not in a positi

    activity," the official said.

    German Foreign Minister G

    Berlin to discuss the issue.

    Germany's frustration follow

    NSA had collected tens of t

    and January 2013.

    President Francois Hollande

    summit agenda, although it i

    While Berlin and Paris are li

    states, domestic security iss

    that may be hoped for is

    explanation from the United

    "Between friends, there mu

    Americans quickly," Europe

    Frenchman, said in a messa

    DATA PRIVACY RULES

    The furor over the alleged

    data privacy rules currentl

    e views such practices, if proven tru

    them unequivocally," the statement read.

    n Carney said Obama had assured Merk

    d will not monitor" the chancellor's comm

    d happened in the past.

    ined to say whether Merkel's phone ha

    n to comment publicly on every specific

    uido Westerwelle has summoned the U.

    s outrage in France since Le Monde news

    ousands of French phone records betwe

    has made clear he plans to put the sp

    s not clear what that will ultimately achiev

    kely to find sympathy among many of th

    ues are not a competence of the Europe

    n expression of support from leaders a

    States.

    st be trust. It has been shaken. We ex

    an commissioner for financial regulation

    e on Twitter.

    spionage could encourage member state

    y being drafted by the European Uni

    24.10.2013

    18

    e, as completely

    el that the United

    unications, leaving

    previously been

    lleged intelligence

    S. ambassador to

    aper reported the

    n December 2012

    ying issue on the

    e.

    EU's 28 member

    n Union. The best

    nd calls for a full

    ect answers from

    Michel Barnier, a

    s to back tougher

    n. The European

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    Parliament this week appro

    EU data protection rules tha

    The new rules would restric

    Facebook is shared with no

    that their digital traces be er

    more on rule breakers.

    The United States is concer

    cost of doing business and h

    have lobbied hard against th

    Given the spying accusation

    EU policy - may succeed in

    the parliament to complete t

    That could mean an agreem

    into force in 2015. For th

    privacy rules are implement

    It may also complicate re

    agreement to share a large

    used for transferring money

    Among the revelations from

    the Swift agreement, accessi

    The European Parliament

    accusations may make EU

    States' ability to collect data

    Despite the outrage in Paris

    the issue was being blown

    spying.

    ed an amended package of legislation th

    date from 1995.

    how data collected in Europe by firms s

    -EU countries, introduce the right of EU

    ased, and impose fines of 100 million euro

    ed that the regulations, if they enter into

    andling data in Europe. Google, Yahoo!, Mi

    e proposals.

    , France and Germany - the two most infl

    getting member states to push ahead on

    he data regulations and make them tough

    nt is reached early next year, with the la

    United States, this could substantially

    d globally.

    lations between the United States and

    amount of data collected via Swift, the in

    electronically, which is based in Europe.

    Snowden's leaks is that the United States

    ng more data than it was allowed to.

    oted on Wednesday to suspended Swi

    ember states support a firm line, compl

    it says is critical in combating terrorism.

    and Berlin, the former head of France's s

    out of proportion and no one should be

    24.10.2013

    19

    at would overhaul

    ch as Google and

    citizens to request

    s ($138 million) or

    law, will raise the

    icrosoft and others

    ential countries in

    negotiations with

    r.

    s possibly coming

    change how data

    the EU over an

    ternational system

    may have violated

    t and the spying

    icating the United

    ecret services said

    surprised by U.S.

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    "I'm bewildered by such w

    reports they're sent - there

    "The agencies know perfectl

    terrorism, spies on its allies.

    level like we spy on them, b

    No one is fooled."

    orrying naivite. You'd think the politicia

    houldn't be any surprise," Bernard Squarci

    well that every country, even when they

    The Americans spy on us on the comme

    ecause it's in the national interest to defe

    24.10.2013

    s don't read the

    ni told Le Figaro.

    cooperate on anti-

    rcial and industrial

    d our businesses.