Weekly News 20 - 24 November 2023
Monday, 20 November 2023 “Germany, France, Italy reach agreement on AI regulation” (mint 2023:8).
France, Germany, and Italy have jointly agreed on a regulatory framework for artificial intelligence (AI) in the European Union, aiming to accelerate negotiations at the EU level. The agreement supports voluntary but binding commitments for both small and large AI providers within the EU. The European Commission, Parliament, and Council are actively negotiating the positioning of the EU on AI, with the European Parliament proposing an "AI Act" in June to manage risks and prevent discrimination while leveraging AI innovation. The code of conduct is initially suggested to apply to major AI providers, primarily from the US, with eventual enforcement and monitoring by a European authority.
Germany's economy ministry, in collaboration with the digital affairs ministry, emphasizes that AI regulation should focus on its application rather than imposing laws and state control on AI itself. Digital affairs minister Volker Wissing expressed satisfaction with the agreement, highlighting its focus on limiting the use of AI.
Tuesday, 21 November 2023 “High Inflation in US & Europe Robs Tiruppur Exporters of Festive Cheer” (Ghosal 2023:15).
Amid persistent inflation in the US and Europe, India's apparel trade is facing a muted Christmas and New Year demand. Tiruppur, contributing 55% of the country's apparel exports, notes a shift in global brand preferences towards low-cost items like $2 t-shirts, compared to the $8-10 fashion garments purchased last year. Economic challenges in the West, fuelled by post-pandemic demand and supply chain disruptions from the Russia-Ukraine war, are steering consumers away from pricier items.
Raja Shanmugam of Warsaw International observes an unprecedented trend where shoppers prioritize inner-wear and t-shirts over more expensive garments during the holiday season. The Christmas and New Year demand for 2023 is down by 40%, impacting smaller units significantly, according to KM Subramanian, president of the Tiruppur Exporters Association.
Wednesday, 22 November 2023 “J&K has business proposals worth 86,000 cr” (Kumar 2023:2).
Jammu & Kashmir Lt Governor Manoj Sinha highlighted the union territory's substantial business proposals exceeding ₹86,000 crore, underscoring a commitment to implement them. Speaking at an event organized by the Engineering Export Promotion Council (EEPC), Sinha emphasized the secure business environment, inviting fresh industry investments. The UAE-based Emaar Group's plans for a shopping mall and IT tower in Srinagar were also noted. With a burgeoning industrial base of 51 operational estates and ongoing developments, Sinha encouraged investments across sectors, offering competitive incentives. The LT Governor highlighted the region's role as a significant producer and exporter of agricultural goods, urging investment and showcasing better incentives than other states.
Sinha, recognizing the increasing tourist inflow, projected over 22.5 million visitors this year. He expressed confidence in the expanding connectivity to Jammu and Kashmir through a rising number of trains and flights. The EEPC chairman, Arun Kumar Garodia, credited the 'Atmanirbhar Bharat Abhiyaan' for a pivotal role in engineering goods' export growth. Engineering exports surpassed $100 billion in FY22, rebounding from declines in previous fiscal years.
Thursday, 23 November 2023 “INDIA-ASEAN TRADE PACT REVIEW: India for tighter rules of origin” (Jagota 2023:2).
India is initiating a review of the Asean-India Trade in Goods Agreement (AITGA), starting with discussions on enhancing and detailing the Rules of Origin (ROO). New Delhi aims to eliminate opportunities for exporters from third countries to exploit preferential tariffs. The ROO revision aligns with ongoing trade agreement negotiations, where the extent of value addition varies for each product. Currently, the generic nature of ROOs in AITGA allows businesses from third countries to utilize the Free Trade Agreement for exports to India. The government seeks to make the rules more granular and product-specific to better address diverse sectors.
The AITGA, in force since 2010, created one of the world's largest free trade areas, but India's trade deficit with Asean has widened significantly. The review, scheduled for completion by 2025, will address concerns about non-reciprocity in FTA concessions, non-tariff barriers, import regulations, and quotas. Stakeholder consultations have taken place, and the discussions will cover not only ROOs but also goods trade in separate sub-committees, with a joint committee meeting expected in February to further progress the review.
Friday, 24 November 2023 “Finland, India discuss hydrogen electrolyzer production in India” (Mattoo 2023:2).
India and Finland are exploring the manufacturing of green hydrogen electrolyzers in India, according to Finnish Minister Ville Tavio. This discussion aligns with India's recent announcement of a Production Linked Incentive (PLI) scheme for green hydrogen production and electrolyzer manufacturing. Tavio emphasized Finland's interest in expanding nuclear research collaboration with India, citing ongoing work between Lappeenranta Technical University (LTU) and an Indian partner university on small and medium nuclear reactors. Additionally, Finland aims to foster private sector collaboration in renewable energy, including plans for a working group on sustainability.
During his visit, Tavio also met with officials from Epsilon Advanced Materials, a battery materials firm with intentions to establish a facility in Finland. The discussions reflect Finland's broader efforts to enhance bilateral cooperation with India, showcasing expertise in quantum technology, 5G and 6G technology, green technologies, energy solutions, biofuels, and sustainable development.
References:
- Ghosal, Sutanuka. 2023. “High Inflation in US & Europe Robs Tiruppur Exporters of Festive Cheer”. The Economic Times, 21 November 2023: 15.
- Jagota, Mukesh. 2023. “INDIA-ASEAN TRADE PACT REVIEW: India for tighter rules of origin” The Financial Express, 23 November 2023: 2.
- Kumar, Dhirendra. 2023. “J&K has business proposals worth 86,000 cr”. Mint, 22 November 2023: 2.
- Mattoo, Shashank. 2023. “Finland, India discuss hydrogen electrolyzer production in India”. Mint, 24 November 2023: 2.
- Mint. 2023. “Germany, France, Italy reach agreement on AI regulation”. 20 November 2023: 8.
