Latest news with #FreeTradeAgreement
See - Sada Elbalad
9 hours ago
- Business
- See - Sada Elbalad
"Exploring the Uncharted Waters: Malaysian Palm Oil's Silent Entry into Egypt's Market Despite Strong Demand"
Mohamed Wadie By: SEE Editor-in-Chief Mohamed Wadie Malaysian palm oil, despite being a major global commodity and a key export product to Egypt, has not yet fully "gone public" or established a dominant direct presence in the Egyptian market in terms of local production or investment. Several factors explain this situation, rooted in economic, geopolitical, trade, and strategic considerations. Economic and Market Dynamics Egypt is a significant importer of palm oil, consuming about 1.2 million tonnes annually, with Malaysian palm oil accounting for over half of these imports. Palm oil is essential for Egyptian consumers due to its cost-effectiveness and wide use in cooking and processed foods, especially given Egypt's low consumer purchasing power amid high inflation. Despite this strong demand, Malaysian palm oil mainly enters Egypt as an imported commodity rather than through local production or public market presence. Trade Agreements and Market Access Currently, Malaysia and Egypt are negotiating a Free Trade Agreement (FTA) that aims to strengthen bilateral trade, with palm oil as a key pillar. Egypt already participates in several multilateral trade agreements such as GAFTA, AfCFTA, and COMESA, facilitating regional trade but also complicating direct Malaysian market entry strategies due to existing trade frameworks. These agreements offer opportunities for Malaysian palm oil to expand regionally via Egypt as a hub but do not yet translate into Malaysian palm oil companies going public or establishing major local operations in Egypt. Geopolitical and Regional Risks Regional geopolitical tensions, such as the conflict in Gaza and disruptions in the Red Sea, pose risks to trade flows but have not significantly deterred Malaysian palm oil exports to Egypt, which remain resilient. However, these risks may contribute to cautious investment approaches by Malaysian companies in establishing local public enterprises or manufacturing bases in Egypt. Investment and Collaboration Opportunities There is growing interest from Malaysian companies to invest in Egypt's palm oil sector, leveraging Egypt's strategic location and trade advantages like customs exemptions under AfCFTA. Discussions have involved Malaysian firms exploring joint ventures, technology transfer, and establishing refining or manufacturing facilities in Egypt to serve both local and regional markets. The Egyptian government supports such moves, offering investment incentives and aiming to develop Egypt as a regional hub for palm oil processing and re-export. However, these initiatives are still in exploratory or early stages, which explains why Malaysian palm oil has not yet "gone public" in the Egyptian market. Strategic Industry Considerations Malaysia's palm oil industry is focused on sustainability, certification (MSPO), and compliance with international environmental standards to maintain global market access. The Malaysian Palm Oil Council (MPOC) actively promotes Malaysian palm oil in Egypt through forums and regional offices, aiming to build trust and long-term partnerships rather than immediate public market entry. The industry strategy includes expanding into new markets in Africa and the Middle East while maintaining quality and sustainability credentials. Malaysian palm oil does not yet "go public" in the Egyptian market primarily because - The current trade relationship is heavily import-based rather than investment-based, with Malaysian palm oil entering Egypt mainly as a commodity. - Ongoing negotiations for a Free Trade Agreement and investment discussions indicate future potential but have not yet resulted in Malaysian companies establishing public entities or manufacturing bases in Egypt. - Geopolitical risks and regional instability encourage cautious investment. - Malaysia's strategic focus remains on sustainability, certification, and market diversification, with Egypt serving as a key import market and potential regional hub rather than a site for Malaysian public listings or local production. - Egypt's participation in multiple regional trade agreements creates a complex trade environment that Malaysian companies are navigating carefully. In conclusion, while Malaysian palm oil is a crucial import for Egypt and bilateral cooperation is deepening, the absence of Malaysian palm oil "going public" in Egypt reflects a strategic, economic, and geopolitical balancing act. The future may see greater Malaysian investment and local presence as trade agreements mature and market conditions stabilize, but for now, the relationship centers on trade and strategic partnership rather than public market entry. SeeNews Editor-in-Chief Mohamed Wadie during a visit to a palm oil farm in Malaysia Mr. Mohamed Wadie, Editor-in-Chief of Sada ElBalad English website (SEE) read more Analysis- Turkey Has 0 Regional Allies... Why? Analysis: Russia, Turkey... Libya in Return For Syria? Analysis: Who Will Gain Trump's Peace Plan Fruits? Analysis: Will Turkey's Erdogan Resort to Snap Election? Analysis: What Are Turkey's Aspirations in Iraq? Opinion & Analysis Analysis: Mercenaries In Libya... Who Should Be Blamed? 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Canada News.Net
13 hours ago
- Business
- Canada News.Net
British High Commissioner visits Karnataka Soaps and Detergents Limited; appreciates production activities
Bengaluru (Karnataka) [India], June 25 (ANI): British High Commissioner to India, Lindy Cameron, and Deputy High Commissioner for Karnataka and Kerala, Chandru Iyer, visited the state-run Karnataka Soaps and Detergents Limited (KSDL) on Wednesday and observed its production activities. During their visit, they were briefed on the company's history, market reach, financial performance, and future expansion plans, which they appreciated. The dignitaries were warmly welcomed by MB Patil, Minister for Large and Medium Industries, and CS Nadagouda, Chairman of KSDL. On this occasion, they were shown a live presentation highlighting KSDL's legacy and achievements. A special exhibition was also arranged to showcase the company's wide range of products. Cameron and Iyer were intrigued to learn about the British connection in the establishment of the company. Speaking on the occasion, Lindy Cameron noted that the Free Trade Agreement (FTA) between India and the United Kingdom would benefit both countries and, by extension, industrial states like Karnataka. 'We should share expertise in ways that serve mutual interests without compromising our respective goals,' she said. Minister Patil, while recounting KSDL's origins, explained that the then Maharaja of Mysuru, Nalvadi Krishnaraja Wadiyar, had sent a representative to Britain to study the soap-making process. The establishment of KSDL was later made possible through the efforts of the Maharaja and the visionary M Visvesvaraya, he noted. 'KSDL currently exports its products to 23 countries. We now plan to further expand the reach of products like Mysore Sandal Soap and shower gels into European markets,' said the Minister, adding that cooperation from the UK would help achieve this goal. S Selvakumar, Principal Secretary, Department of Industries; Gunjan Krishna, Commissioner, Department of Industries; Prashanth, Managing Director, KSDL; and Aravinda Galagali, Technical Advisor to the Minister, were also present during the visit. (ANI)
Economic Times
a day ago
- Business
- Economic Times
UK's global trade outlook sees India as Asia's 'standout growth engine'
AI generated image As the "standout growth engine" in Asia, India is projected to be the third largest economy in the world by 2028, and the recent Free Trade Agreement (FTA) offer British businesses a "major advantage" over their international competitors, the UK's new trade strategy and outlook have said. The 'UK's Trade Strategy' and an accompanying 'Global Trade Outlook 2025' released by the Department for Business and Trade (DBT) on Wednesday spotlights the trade deal with India, concluded early last month, as the centrepiece of the Labour government's approach to utilising FTAs as an important tool to meet its economic growth agenda. "Asia is expected to benefit from standout growth from India and a new generation of fast-growing emerging markets," reads the outlook. "Asia's centre of growth is expected to shift from China to India and other emerging markets, while Africa's demographic boom could drive high growth if job creation can keep pace with population growth," it notes. About the FTA, the trade strategy points out that the "comprehensive agreement" with India is reflective of the "transformative" impact that Free Trade Agreements can make. It reads: "For example, the UK-India FTA is a landmark trade deal that will drive growth and boost trade with one of the fastest-growing economies in the world. As soon as the deal comes into force, UK products will benefit from a saving of up to an estimated GBP 400 million a year, from India cutting its tariffs on existing trade alone, which could increase to around GBP 900 million a year after staging over 10 years. "And that's before factoring in the savings from speedier and easier trade from improved customs and digital commitments. This immediate relief represents a major advantage our businesses will enjoy over their international competitors." The trade strategy, which complements an Industrial Strategy released earlier this week, is aimed at setting a clear direction for the government's growth and job creation goals. "What works for business, works for Britain. It means more jobs, more opportunities, and more money in people's pockets. That's why I've backed British industry through global headwinds - securing major trade deals with the US, India and the EU that protect jobs and drive growth right across the country," said British Prime Minister Keir Starmer. "Broad and complex trade deals like we secured with India will bring billions to our economy every year but to deliver the Plan for Change we will strike more agile, targeted deals that exploit the sectors which drive the most growth for our economy," added Business and Trade Secretary Jonathan Reynolds. The strategy reiterates the "huge economic win" from the India FTA, which "slashes Indian tariffs on key products such as whisky, cosmetics and medical devices, locking in reductions on 90 per cent of tariff lines for UK exports to unleash opportunities for businesses across our regions and nations". "Furthermore, it delivers certainty for service suppliers, including non-discrimination commitments to support new opportunities. It delivers on our Plan for Change and is expected to increase bilateral trade by GBP 25.5 billion, increase UK GDP by GBP 4.8 billion, and boost wages by GBP 2.2 billion every year in the long run," the strategy adds. The India-UK deal is expected to be officially signed off at the end of next month following the obligatory parliamentary clearance in Britain. "We in India have a much faster process, comparatively, so we'll be ready as soon as the legal scrubbing is done and the document is sorted out," Commerce and Industry Minister Piyush Goyal had said during his UK visit last week to discuss the next steps in the FTA.
Time of India
a day ago
- Business
- Time of India
UK's global trade outlook sees India as Asia's 'standout growth engine'
India is set to become the world's third-largest economy by 2028. A new trade deal between the UK and India gives British businesses an edge. The UK-India FTA aims to boost trade and economic growth. UK products will see tariff reductions, saving businesses millions. The deal is expected to increase bilateral trade significantly. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads As the "standout growth engine" in Asia, India is projected to be the third largest economy in the world by 2028, and the recent Free Trade Agreement (FTA) offer British businesses a "major advantage" over their international competitors, the UK's new trade strategy and outlook have 'UK's Trade Strategy' and an accompanying 'Global Trade Outlook 2025' released by the Department for Business and Trade (DBT) on Wednesday spotlights the trade deal with India, concluded early last month, as the centrepiece of the Labour government's approach to utilising FTAs as an important tool to meet its economic growth agenda."Asia is expected to benefit from standout growth from India and a new generation of fast-growing emerging markets," reads the outlook."Asia's centre of growth is expected to shift from China to India and other emerging markets, while Africa's demographic boom could drive high growth if job creation can keep pace with population growth," it the FTA, the trade strategy points out that the "comprehensive agreement" with India is reflective of the "transformative" impact that Free Trade Agreements can reads: "For example, the UK-India FTA is a landmark trade deal that will drive growth and boost trade with one of the fastest-growing economies in the world. As soon as the deal comes into force, UK products will benefit from a saving of up to an estimated GBP 400 million a year, from India cutting its tariffs on existing trade alone, which could increase to around GBP 900 million a year after staging over 10 years."And that's before factoring in the savings from speedier and easier trade from improved customs and digital commitments. This immediate relief represents a major advantage our businesses will enjoy over their international competitors."The trade strategy, which complements an Industrial Strategy released earlier this week, is aimed at setting a clear direction for the government's growth and job creation goals."What works for business, works for Britain. It means more jobs, more opportunities, and more money in people's pockets. That's why I've backed British industry through global headwinds - securing major trade deals with the US, India and the EU that protect jobs and drive growth right across the country," said British Prime Minister Keir Starmer."Broad and complex trade deals like we secured with India will bring billions to our economy every year but to deliver the Plan for Change we will strike more agile, targeted deals that exploit the sectors which drive the most growth for our economy," added Business and Trade Secretary Jonathan strategy reiterates the "huge economic win" from the India FTA, which "slashes Indian tariffs on key products such as whisky, cosmetics and medical devices, locking in reductions on 90 per cent of tariff lines for UK exports to unleash opportunities for businesses across our regions and nations"."Furthermore, it delivers certainty for service suppliers, including non-discrimination commitments to support new opportunities. It delivers on our Plan for Change and is expected to increase bilateral trade by GBP 25.5 billion, increase UK GDP by GBP 4.8 billion, and boost wages by GBP 2.2 billion every year in the long run," the strategy India-UK deal is expected to be officially signed off at the end of next month following the obligatory parliamentary clearance in Britain."We in India have a much faster process, comparatively, so we'll be ready as soon as the legal scrubbing is done and the document is sorted out," Commerce and Industry Minister Piyush Goyal had said during his UK visit last week to discuss the next steps in the FTA.
Daily Tribune
2 days ago
- Business
- Daily Tribune
India-UK FTA likely to be signed by July-end
TDT | agencies India and the UK are aiming to sign their Free Trade Agreement (FTA) by July-end, as legal teams from both sides work overtime to get the formal text of the pact ready. To give directions to the officials involved in the last mile formalities, commerce secretary Sunil Barthwal and additional secretary L Satya Srinivas will be in London for the next two days. They will also be holding meetings with their counterparts from the UK and UK secretary of state for trade and business Jonathan Reynolds. The visit of the top officials of the Department of Commerce follows the visit of Commerce and Industry Minister Piyush Goyal to the UK last week. Goyal met his counterpart Reynolds and both sides also held a negotiation meeting and reviewed the progress prior to the signing. The Indian legal team is also in London for the legal scrubbing of the text. The conclusion of FTA negotiations between India and the UK was announced on May 6. Earlier officials said that it might take three months to get the text of the FTA ready for signing. After the agreement is signed it will be made public. Then it has to be ratified by both countries before it comes into force. In the UK the ratification is done by the Parliament and this process could take up to a year. For India the ratification of agreements is done by the cabinet. So it could take up to 15 months from now for the FTA to become operational. The FTA will remove taxes on the export of labour-intensive products from India such as leather, footwear and clothing, while making imports of whisky and cars from Britain cheaper. Through the FTA both sides are aiming to double their trade to $ 120 billion by 2030. The pact will also liberalise services trade and make the movement of professionals easier. Along with FTA, the social security agreement or Double Contribution Contributions Convention has also been agreed to. Both sides are now engaged in finalising the Bilateral Investment Treaty (BIT).
