South Koreas trade deficit with Japan hit a record high at 25.3 billion US dollars in 2006, the South Korean Ministry of Commerce, Industry and Energy said. According to a report by the ministry on the countrys merchandise trade balance, the trade deficit with Japan rose 3.9 per cent from 2005, when the deficit stood at 24.3 billion US dollars. In 2004, the figure was 24.4 billion US dollars.

India has for the first time emerged as the 10th largest trading partner of China in 2006, according to latest Chinese foreign trade statistics. While the European Union retained the status of Chinas top trading partner, bilateral trade between China and India hit an alltime record at 24.9 billion US dollars last year, exceeding the 20billiondollar goal two years ahead of target. In 2006 Chinas total exports reached USD 969.1 billion, up 27.2 per cent and imports grew by 20 per cent to touch USD 791.6 billion. Thus, China enjoyed a favourable trade surplus of USD 177.5 billion in 2006.

The government decided on January, 29 to privatise some of the key operations of Chittagong Port. The Ministry of Shipping (MoS) at a meeting took this decision to help reduce turnaround time of ships at the port and to provide efficient services to the port users.

A syndicated lease facility of Tk225 million for TK Chemical Complex Ltd was signed in Dhaka on January 23. IIDFC (Industrial and Infrastructure Development Finance Company Ltd) as the lead arranger arranged the fund for financing of cigarette paper, colour paper and offset and printing paper machinery.

The Bangladesh Bank plans to sell the beleaguered Oriental Bank, sources in the central bank said. Foreign and local buyers are showing interest in Oriental, as it is the last chance for them to own a private bank, one of the sources said. As the central bank is unlikely to issue a new licence for commercial banking in near future, the bid could run up to several hundred crores of takas.

The International Finance Corporation (IFC) has taken up a multiyear programme tailored to cut the cost of doing business in Bangladesh, thereby making significant dent in the countrys overall investment climate. The idea of the IFC, the private sector window of the World Bank, is to attract both local and foreign investment, and encourage the investors to exude their social and corporate responsibilities.

Asia Energy renamed as Global Coal signed a memorandum of understanding (MOU) with the Bangladeshi Peoples Telecom and Information Service Ltd. (Peoples Tel) recently to buy 26.5 percent equity of the telecoms firm. Peoples Tel will submit the US$5 million investment proposal to the Board of Investment (BoI) for approval within this week or the next.

Major Asian currencies fell against the dollar last week, with the yen weak due to low interest rates in Japan, as traders look ahead to this weeks rate decision by the US Federal Reserve.

Telekom Malaysia Berhad (TM), with its telecommunications business growing in Asian countries, now plans more investments in India and Indonesia this year. As part of its new international investment plan, TM has adopted a twopronged strategy to study new commercial opportunities in Asia and strengthen positions in existing markets.

Chinas trade surplus with the European Union soared 31 per cent last year, state media reported Sunday, citing government figures. China posted a trade surplus with the EU of 91.7 billion dollars in 2006, compared with 70.1 billion dollars the year before, the Xinhua news agency said, quoting ministry of commerce data.

British Prime Minister Tony Blair said the G8 group of leading economies needed to embrace emerging giants China and India if it was to keep its influential role in the world. The reality is the G8 is undergoing a process of change now, Blair told a panel at the World Economic Forum. I cant see the G8 having the same authority politically unless it has got China and India.

South Asian energy officials, during their twoday parley in Kathmandu last week, framed terms of reference for a study on regional trade in and sharing of energy resources. The study would analyse energy resources like power and gas in the region and find out the surplus amount that could be traded among the countries, decided energy officials at the third meeting of the SAARC working group on energy cooperation held on January 2223 in the Nepalese capital.

India has sent a draft memorandum of understanding (MOU) to the government asking it to sort out issues and finalise an agreement to take up dutyfree export of garments from Bangladesh under a special provision of the SAFTA arrangement.

The Chittagong Chamber of Commerce and Industry (CCCI) submitted on January, 27 eightpoint proposal to the Chief Adviser (CA) Fakhruddin Ahmed to help activate the countrys economic activities. Among the proposals, the chamber urged the Chief Adviser for taking quick decision on pending foreigninvestment proposals, bringing discipline in the power sector and making the AntiCorruption Commission (ACC) independent and powerful.

In sharp contrast to Thailands recent move to curb capital inflows, the Philippines is set to liberalize existing restrictions on capital outflows as a way to hedge against the strong influx of foreign money while keeping its monetary policy steady for now. At its regular monthly meeting on January, 25 Monetary Board, the policymaking body of the central bank, maintained its overnight rates for the 15th straight month at 7.50 percent for overnight borrowing and 9.75 percent for overnight lending and kept the tiering system that was revived since November.

European clothing firms are ditching their local suppliers and are opting more and more for cheaper imports from Asia, especially China, according to a French study released on Friday. Around 75 percent of clothes bought by the firms come from outside the European Union, with 64 percent from Asia and 36 percent from China alone, the study from the Lillebased French Fashion Institute (IFM) said.

Bilateral trade between China and India hit an alltime record at USD 24.9 billion in 2006, exceeding the USD 20billion goal two years ahead of target, the Chinese Ministry of Commerce announced. The two Asian giants, both among the worlds fastest growing economies, signed an agreement in 2005, pledging to raise the bilateral trade volume to USD 20 billion by 2008. According to the Ministry, India was Chinas 10th largest trade partner in 2006, while Indian statistics showed China was Indias second largest trade partner after the US.

Inflation is still a major global risk and central banks around the world must remain very, very alert on price risks, European Central Bank President JeanClaude Trichet said on January, 27 2007. We make an assumption that central banks around the world are doing their jobs. Its true that we are credible in this domain, Trichet told a panel discussion at the World Economic Forum meeting in Davos. We have to remain very, very alert. That (inflation) is a major global risk, he said.

The worlds top commercial powers on January, 27 2007 make their first joint attempt at reviving global trade talks since their collapse last summer. Ministers from 24 key trading countries and the European Union met on the final day of the Davos forum in a bid to breathe fresh life into stalled global trade negotiations. They expressed a strong wish for a quick resumption of full scale activity in Geneva, the ministry, which hosted the meeting with World Trade Organisation.

For the first time, Bangladesh is expecting to send workers to Canada, a lucrative job market that ensures high salaries and workers rights at low service charges. Bangladesh Overseas Employment and Services Limited (BOESL), a stateowned recruiting agency, has already prepared a draft contract with a Canadian outsourcing company that was attested by the Canadian High Commission in Dhaka recently.