IMF and WTO 23 Apr 2017 by Tojo Jose

IMF leans towards protectionist tones

IMF leans towards protectionist tones

In a fresh development, on the just born trend of embracing protectionism, the IMF pledged to ‘fight global imbalances’, deviating from its conventional rhetoric on fighting protectionism. The global economic regulator’s slanting towards US sponsored economic nationalism came at the end of the International Monetary and Financial Committee (IMFC) meeting. The IMFC is a steering body of the Fund. The communique from the IMFC, released Saturday in Washington, said that officials “are working to strengthen the contribution of trade to our economies”. The term global imbalances indicate displeasure of China’s continuing high trade surplus that cre

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US and Europe 19 Apr 2017 by Tojo Jose

Trump issues executive order for revising the H1 B Visa regime

Trump issues executive order for revising the H1 B Visa regime

Going with the promise of ‘Buy American and Hire American’ election propaganda, President Trump issued an executive order asking for the revision of the H 1B Visa programme. The executive order that is largely expected has ordered federal agencies to look at tightening the H-1B visa programme used to bring high-skilled foreign workers to the US. The H-1B visas are intended for foreign nationals in occupations that generally require higher education, including science, engineering or computer programming. Supporters of Trump points out that the move will ask administrative wings to stop US jobs going to the foreign hands. Only highly skilled jobs can be filled by the f

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US and Europe 18 Apr 2017 by Tojo Jose

Mallya’s arrest and bail - extradition process get started

Mallya’s arrest and bail - extradition process get started

India’s Prime wilful defaulter – Vijay Mallya who ‘escaped’ to Britain, was arrested by Scotland Yard Police today and later was released on bail. The arrest signifies the ‘long British’ process of a possible extradition of the former Rajaya Sabha MP who owes nearly Rs 9000 crore to various Indian banks.   “Officers from the Metropolitan Police’s Extradition Unit this morning arrested a man on an extradition warrant. Viajay Mallya was arrested on behalf of the Indian authorities in relation to the accusations of fraud,” the PTI quoted the Scotland Yard. Mallya’s extradition and his participation in the legal process

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IMF and WTO 20 Mar 2017 by Tojo Jose

Amidst US pressure, G 20 meeting evades wordings against protectionism

Amidst US pressure, G 20 meeting evades wordings against protectionism

G 20 Finance Minister’s meeting concluded at the German spa town of Baden Baden is a break from the past. The meeting witnessed a clash between the resurged US economic nationalism and the rest of the G20 who are worried about the future of globalisation. There was an uneasy air as well as debate about the wording against protectionism. In the past, the G20 was the forum that passes resolution against trade barriers. Last year, the official summit communiqué adopted a tougher language to “resist all forms of protectionism”. But this year, the meeting declared that members were “working to strengthen the contribution of trade to our economies”.

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US and Europe 15 Mar 2017 by Tojo Jose

Fed raises interest rate to accommodate inflation

Fed raises interest rate to accommodate inflation

The US Fed raised its short-term policy rate or the Fed rate by 25 basis points, signaling the continuation of monetary tightening. An explanation accompanied by the rate hike defended the rate hike on the ground of rising inflation. This is only the third time since the financial crisis that the Fed is raising its key rate. The policy rate now rose to 1 per cent. From the view point of the EMEs, the rate hike may bring more volatility in financial markets in near future. Here, the firm stand of the Fed that rate hike decision will be done in three quarters instead of yearly exercise indicate more scope for market turbulence. In the long term, the frequent rate hike may drain aw

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Global Economy 14 Feb 2017 by Tojo Jose

Chinese joins India’s credit rating debate

Chinese joins India’s credit rating debate

India’s economic administrators’ attack on inconsistent credit rating standards of western agencies is now joined by the Chinese media. An article published in the partisan tabloid – the Global Times ‘Why India’s sovereign ratings lag behind China’, describes that foreign companies are correct in giving high ranking to China over India. India’s Economic Survey brought out a box criticizing the methodology of credit rating agencies. Edited by Arvind Subramanian, the Survey made a comparative study of ratings on India and China while concluding that China gets a higher rating despite macro indicators are more or less the same. According to

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US and Europe 08 Feb 2017 by Tojo Jose

Trump’s USA will not be open to Indians as visa issue going to be scaled down

Trump’s USA will not be open to Indians as visa issue going to be scaled down

Deriving energy from Donald Trump’s patriotic and domestic labour promotion campaign, two US senators have proposed a new legislation to cut down legal immigration into the US. Senators Tom Cotton and David Perdue have introduced Reforming American Immigration for Strong Employment or Raise Act aimed to cut immigration avenues for people from across the world. Though the Bill is aimed to reduce the immigration of non-skilled people into USA, the bill is going to be a big setback for Indians who have little skill and at the same time would like to settle in the US. The Bill proposes to reduce the number of green card or legal permanent residency issued every year from about

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IMF and WTO 24 Jan 2017 by Tojo Jose

India opposes Investor-State dispute settlement under WTO

India opposes Investor-State dispute settlement under WTO

The EU’s effort to create an investor-state dispute settlement mechanism (ISDS) at WTO was opposed by countries led by India, Japan and Brazil. According to Commerce Minister Nirmala Sitharaman, EU and Canada have made an informal proposal for creating such an arrangement within the present WTO format at the end of the Davos WEF. The WTO’s eleventh Ministerial Conference is about to take place in December at Buenos Aires, Argentina. A fresh wave of new issues is expected to be launched at least at the discussion level during the MC. Already, investor disputes are settled under Bilateral Investment Protection Treaties (BIT). India has signed nearly 84 BITs so far, g

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US and Europe 22 Jan 2017 by Tojo Jose

Davos indicates uncertain future for globalisation

Davos indicates uncertain future for globalisation

The theme in front of the World Economic Forum meeting was the rising anti-globalisation trend. Chinese President Xi Jinping who came to Davos like a chief guest, was supposed to led the pro-globalisation camp. In the opposite was the swearing ceremony of Donald Trump who challenged the world trade order accusing that China is the only beneficiary in the current format. On the fate of globalisation, only the future can give some answer. This was the concluding point of the summit. Expectedly, Mr XI made a sound campaign for it and defended the benefits of economic globalization and its ability to lift people out of poverty. But the West was not equally zealous. Rather they seeme

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US and Europe 08 Jan 2017 by Tojo Jose

Trump effect: US law makers to go ahead with the restrictive H1B Visa legislation

Trump effect: US law makers to go ahead with the restrictive H1B Visa legislation

The US lawmakers have reintroduced a bill seeking pinching restrictions on H1B Visa regime that may reduce opportunities for Indian techies in the US. Election of Donald Trump who vehemently opposed outsourcing has encouraged the law makers to bring the bill again into the Parliament’s consideration. India was one of the biggest beneficiary of the US visa regime as several Indian tech companies were able to recruit talented persons to the US by using it. The Bill makes a comeback after the initial rejection by the US Parliament earlier. Fresh changes are made in the bill proposing a minimum yearly income of $100000 for those who seeks the visa. Such a requirement is expecte

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