Wednesday, December 31, 2003
Happy New Year!
U.S.-Singapore Free Trade Pact Comes Into Effect Jan. 1
A free-trade agreement between Singapore and the United States, Washington's first with an Asian country, will come into force on Jan. 1, 2004, the Singapore trade ministry said.
The agreement is expected to start a sweeping liberalization of trade in goods and services and enhance the protection of intellectual property rights. Both nations have completed the legal and administrative requirements to implement the accord, signed in May between President George W. Bush and Prime Minister Goh Chok Tong, the trade ministry said in a statement.
>From Jan. 1, 78.7% of Singapore goods will immediately enjoy duty-free entry into the United States, rising to 92% within four years. All U.S. goods entering Singapore will be duty-free with immediate effect. Singapore also will further open up its economy to American companies.
Initial estimates show the island-state will save between 200 million and 300 million Singapore dollars (US$118 million and US$176 million) as a result.
"Together with enhanced investor protection, ease of entry and operation for investors and improved commitments in the services industries, the [agreement] will make it more attractive for U.S. companies to invest in Singapore," the trade ministry said. "Similarly, the [agreement] will make it easier for Singapore-based companies, including [small and medium enterprises], to invest in the U.S."
Raymond Lim, Singapore's minister of state for foreign affairs and trade and industry, has said the FTA will boost Singapore's gross domestic product (GDP) by 0.5%. He said the agreement also is likely to encourage hundreds of American companies to open regional offices in Singapore and use the city-state as a springboard for expansion into the Asian market.
There are already 1,300 American companies and 15,000 U.S. nationals in Singapore, where private U.S. investment is estimated at more than US$27 billion. Two-way trade is estimated at $34 billion.
Singapore's free-trade pacts with Japan, Australia, New Zealand and the European Free Trade Association have already entered into force. Discussions, now at various stages, are underway with India, South Korea, Jordan, Canada and Sri-Lanka, among others. - Agence France-Presse
The agreement is expected to start a sweeping liberalization of trade in goods and services and enhance the protection of intellectual property rights. Both nations have completed the legal and administrative requirements to implement the accord, signed in May between President George W. Bush and Prime Minister Goh Chok Tong, the trade ministry said in a statement.
>From Jan. 1, 78.7% of Singapore goods will immediately enjoy duty-free entry into the United States, rising to 92% within four years. All U.S. goods entering Singapore will be duty-free with immediate effect. Singapore also will further open up its economy to American companies.
Initial estimates show the island-state will save between 200 million and 300 million Singapore dollars (US$118 million and US$176 million) as a result.
"Together with enhanced investor protection, ease of entry and operation for investors and improved commitments in the services industries, the [agreement] will make it more attractive for U.S. companies to invest in Singapore," the trade ministry said. "Similarly, the [agreement] will make it easier for Singapore-based companies, including [small and medium enterprises], to invest in the U.S."
Raymond Lim, Singapore's minister of state for foreign affairs and trade and industry, has said the FTA will boost Singapore's gross domestic product (GDP) by 0.5%. He said the agreement also is likely to encourage hundreds of American companies to open regional offices in Singapore and use the city-state as a springboard for expansion into the Asian market.
There are already 1,300 American companies and 15,000 U.S. nationals in Singapore, where private U.S. investment is estimated at more than US$27 billion. Two-way trade is estimated at $34 billion.
Singapore's free-trade pacts with Japan, Australia, New Zealand and the European Free Trade Association have already entered into force. Discussions, now at various stages, are underway with India, South Korea, Jordan, Canada and Sri-Lanka, among others. - Agence France-Presse
Monday, December 29, 2003
Three Form Joint Venture For Auto Steel In China
Three of the world's biggest steel manufacturers will team to produce automotive steel in China. Arcelor SA, Nippon Steel Corp. and Shanghai Baosteel Group Corp. last week signed an agreement to create a joint venture to produce steel for automobiles. The operation, to be located in Shanghai, will have an annual production capacity of 1.7 million tons of flat carbon steel and will comprise cold rolling and galvanization operations, according to a press statement by Luxembourg-based Arcelor.
"This new joint venture with our partners Baosteel and Nippon Steel is a strategic move to accompany our global automotive customers and to seize the tremendous growth opportunities offered by the Chinese market," said Arcelor CEO Guy Dolle.
Baosteel will take 50% equity in the new company, Tokyo's Nippon Steel will take 38% and Arcelor will hold 12% equity, Arcelor reported.
New steel facilities, budgeted at $800 million, are scheduled to begin supplying customers in the second quarter of 2005.
"This new joint venture with our partners Baosteel and Nippon Steel is a strategic move to accompany our global automotive customers and to seize the tremendous growth opportunities offered by the Chinese market," said Arcelor CEO Guy Dolle.
Baosteel will take 50% equity in the new company, Tokyo's Nippon Steel will take 38% and Arcelor will hold 12% equity, Arcelor reported.
New steel facilities, budgeted at $800 million, are scheduled to begin supplying customers in the second quarter of 2005.
Friday, December 26, 2003
EU Demands Information On Italy's New Insolvency Decree
The European Commission said Dec. 23 that the Italian government must provide information about its new decree to help the restructuring of insolvent companies that have more than 1,000 employees and are 1 billion euros (US$1.2 billion) in debt.
Tilman Lueder, spokesman for Competition Commissioner Mario Monti, said, "In light of the fact that we have had proceedings with the Italians over bankruptcy legislation, we would like to have assurance that this version is free of fiscal elements."
The Italian government launched the insolvency decree Tuesday as the collapse of Parmalat Finanziaria SpA, the country's leading food group, in an accounting scandal threatened thousands of jobs and rocked the financial markets. Italian Industry Minister Antonio Marzano, speaking at a news conference after a cabinet meeting, said the introduction of the new legislation would be "very, very fast." He said, "It will apply to all cases in which circumstances exist, the first being Parmalat."
Previously, the European Commission, the European Union's executive body, had overturned Italian legislation known as the Prodi law, which gave fiscal advantages to companies that were insolvent.
Lueder said the commission wanted to know how the new decree would benefit companies and if it offered companies fiscal advantages. He said any measures taken by the state to protect companies must be fiscally neutral and in no way entail the government giving up debt that it holds in a company. Measures must not mean the state forgoes "fiscal resources or puts at risk the treasury's money," he said.
Italian news agencies citing criminal investigators on Tuesday said the Parmalat accounting scandal had widened to seven billion euros -- the phantom 3.9 billion thought to be in a Bank of America account and another 2.9 billion in bonds. Press reports have said the hole could in fact be closer to 10 billion euros. - Agence France-Presse
Tilman Lueder, spokesman for Competition Commissioner Mario Monti, said, "In light of the fact that we have had proceedings with the Italians over bankruptcy legislation, we would like to have assurance that this version is free of fiscal elements."
The Italian government launched the insolvency decree Tuesday as the collapse of Parmalat Finanziaria SpA, the country's leading food group, in an accounting scandal threatened thousands of jobs and rocked the financial markets. Italian Industry Minister Antonio Marzano, speaking at a news conference after a cabinet meeting, said the introduction of the new legislation would be "very, very fast." He said, "It will apply to all cases in which circumstances exist, the first being Parmalat."
Previously, the European Commission, the European Union's executive body, had overturned Italian legislation known as the Prodi law, which gave fiscal advantages to companies that were insolvent.
Lueder said the commission wanted to know how the new decree would benefit companies and if it offered companies fiscal advantages. He said any measures taken by the state to protect companies must be fiscally neutral and in no way entail the government giving up debt that it holds in a company. Measures must not mean the state forgoes "fiscal resources or puts at risk the treasury's money," he said.
Italian news agencies citing criminal investigators on Tuesday said the Parmalat accounting scandal had widened to seven billion euros -- the phantom 3.9 billion thought to be in a Bank of America account and another 2.9 billion in bonds. Press reports have said the hole could in fact be closer to 10 billion euros. - Agence France-Presse
Thursday, December 25, 2003
MERRY CHRISTMAS!!!
Thursday, December 18, 2003
U.S. Strikes Free-Trade Deal In Central America
The United States struck a free-trade agreement (FTA) Dec. 17 with four Central American countries: El Salvador, Guatemala, Honduras and Nicaragua.
"Step-by-step, country-by-country, region-by-region, the United States is opening markets with top-notch, comprehensive FTAs that set the standard," U.S. Trade Representative Robert Zoellick said. The latest agreement must still be approved by Congress.
Costa Rica, which had been part of the Central American negotiations, dropped out at the last minute after objecting to U.S. demands that it open up the insurance and telecommunications sectors. The Bush administration is hoping negotiations with Costa Rica will allow for all five countries to be part of the deal when it is formally adopted, a source said.
U.S. Agriculture Secretary Ann Veneman said the U.S.-Central America Free Trade Agreement (CAFTA) would be a boost for U.S. farmers. Veneman said she expected market access for U.S. commodities such as feed grains, rice, beef, pork, poultry, horticultural products and processed consumer-ready products. Veneman said the deal included extra protection, such as tariffs and quotas, for import-sensitive U.S. products such as sugar, dairy, peanuts and meat during a transition period.
The U.S. Chamber of Commerce welcomed the Central American trade pact, saying trade with the region last year was worth nearly $22 billion. "This agreement should pave the way for a substantial expansion of business ties between the U.S. and Central America," said Dan Christman, the Chamber's international affairs representative. "The agreement is also significant because it underscores US commitment to trade liberalization in the Americas, providing welcome impetus for the Free Trade Area of the Americas negotiations."
But anti-globalization activists condemned the deal. "We are against using the U.S. approach to services, the U.S. approach to investment, the U.S. approach to intellectual-property rights, all of which would restrict these countries' ability to protect their own fragile markets and expose them to devastating competition," said Fifty Years is Enough Network spokesman Soren Ambrose. - Agence France-Presse
"Step-by-step, country-by-country, region-by-region, the United States is opening markets with top-notch, comprehensive FTAs that set the standard," U.S. Trade Representative Robert Zoellick said. The latest agreement must still be approved by Congress.
Costa Rica, which had been part of the Central American negotiations, dropped out at the last minute after objecting to U.S. demands that it open up the insurance and telecommunications sectors. The Bush administration is hoping negotiations with Costa Rica will allow for all five countries to be part of the deal when it is formally adopted, a source said.
U.S. Agriculture Secretary Ann Veneman said the U.S.-Central America Free Trade Agreement (CAFTA) would be a boost for U.S. farmers. Veneman said she expected market access for U.S. commodities such as feed grains, rice, beef, pork, poultry, horticultural products and processed consumer-ready products. Veneman said the deal included extra protection, such as tariffs and quotas, for import-sensitive U.S. products such as sugar, dairy, peanuts and meat during a transition period.
The U.S. Chamber of Commerce welcomed the Central American trade pact, saying trade with the region last year was worth nearly $22 billion. "This agreement should pave the way for a substantial expansion of business ties between the U.S. and Central America," said Dan Christman, the Chamber's international affairs representative. "The agreement is also significant because it underscores US commitment to trade liberalization in the Americas, providing welcome impetus for the Free Trade Area of the Americas negotiations."
But anti-globalization activists condemned the deal. "We are against using the U.S. approach to services, the U.S. approach to investment, the U.S. approach to intellectual-property rights, all of which would restrict these countries' ability to protect their own fragile markets and expose them to devastating competition," said Fifty Years is Enough Network spokesman Soren Ambrose. - Agence France-Presse
Wednesday, December 17, 2003
Boeing Clears 'Dreamliner' For Take Off
The Boeing Co. said Dec. 16 it had approved the next phase of the program to launch its 7E7 "Dreamliner" jet, a plane that the aircraft maker is staking its commercial future on. The Boeing board signed off on a decision to offer the 7E7 for sale, green-lighting a program that the Chicago-based company hopes will bolster its battered aircraft-manufacturing business and blunt the growing threat from the European Airbus consortium. The company has no firm orders for the jet yet, but officials said they expect the demand for this class of plane to be in the order of 3,500 planes, or $400 billion in business, over the next 20 years.
The board's decision is the penultimate step in bringing the "super-efficient" Dreamliner to market: The company requires a certain number of firm orders before it proceeds to production. For now, assembly is tentatively scheduled for 2006, with the first plane scheduled to enter service in 2008.
The Boeing unit is banking on the economics and long-haul capabilities of the 7E7 to appeal to cash-strapped carriers. It says the twin-aisle jet will be 20% more fuel-efficient than similar midsize jets, with the long-haul range of a much larger jet, capable of flying nonstop between city pairs such as Washington and Rome. Boeing officials claim the jet is a "game changer," enabling airlines to fly 200 to 250 passengers directly to their destination, without obliging them to make connections.
The 7E7 program -- Boeing's first launch of an all-new jet in more than a decade -- has a lot riding on it: The aircraft maker badly needs a successful launch after scrapping plans for the Sonic Cruiser and a proposed stretch version of the 747 in recent years. The company is also banking on the Dreamliner to boost its balance sheet and help it recover the market leadership it will lose to Airbus this year. The aircraft unit's revenues have slumped as the commercial aviation market has cratered, and the European consortium is expected to outsell its U.S. rival for the first time on record in 2003. - Agence France-Presse
The board's decision is the penultimate step in bringing the "super-efficient" Dreamliner to market: The company requires a certain number of firm orders before it proceeds to production. For now, assembly is tentatively scheduled for 2006, with the first plane scheduled to enter service in 2008.
The Boeing unit is banking on the economics and long-haul capabilities of the 7E7 to appeal to cash-strapped carriers. It says the twin-aisle jet will be 20% more fuel-efficient than similar midsize jets, with the long-haul range of a much larger jet, capable of flying nonstop between city pairs such as Washington and Rome. Boeing officials claim the jet is a "game changer," enabling airlines to fly 200 to 250 passengers directly to their destination, without obliging them to make connections.
The 7E7 program -- Boeing's first launch of an all-new jet in more than a decade -- has a lot riding on it: The aircraft maker badly needs a successful launch after scrapping plans for the Sonic Cruiser and a proposed stretch version of the 747 in recent years. The company is also banking on the Dreamliner to boost its balance sheet and help it recover the market leadership it will lose to Airbus this year. The aircraft unit's revenues have slumped as the commercial aviation market has cratered, and the European consortium is expected to outsell its U.S. rival for the first time on record in 2003. - Agence France-Presse
Saturday, December 13, 2003
Whiff Of Inflation?
The U.S. Import Price Index increased 0.4% in November, the U.S. Labor Department reported Dec. 11. Because the increase was twice what economists generally expected and was relatively broad based -- extending to petroleum, metals, chemicals, capital goods and consumer goods -- it raises the possibility that inflation, particularly moving into 2004, may be higher than anticipated.
"Both the [U.S.] dollar's long slide and global recovery have contributed to the revival of import price pressures," notes UBS Investment Research, New York. "The rebound in import prices is one reason that we expect inflation to begin creeping higher again next year."
In its most recent forecast, UBS projected the "core-CPI," which excludes changes in the price of food and fuel, rising from a 1.7% annual rate in the first quarter of 2004 to 2% in the fourth quarter. - John S. McClenahen
"Both the [U.S.] dollar's long slide and global recovery have contributed to the revival of import price pressures," notes UBS Investment Research, New York. "The rebound in import prices is one reason that we expect inflation to begin creeping higher again next year."
In its most recent forecast, UBS projected the "core-CPI," which excludes changes in the price of food and fuel, rising from a 1.7% annual rate in the first quarter of 2004 to 2% in the fourth quarter. - John S. McClenahen
Friday, December 12, 2003
The Positive -- And The Negative
New U.S. government data show American consumers are spending more and business inventories are rising, both signs that the U.S. economic recovery from the 2001 recession is continuing. Retail sales in November were $322.4 billion, an increase of 0.9% from October, the U.S. Commerce Department reported Dec. 11. That's better than the 0.7% that economists generally anticipated. And in another positive sign for the recovering economy, business inventories are rising in response to consumer demand. At the end of October, they were at $1.183 trillion, up 0.4% from September's end of the month figure, according to separate Commerce Department figures also released Dec. 11. The month-to-month inventory rebuild rate was twice the 0.2% economists generally expected.
Data on the U.S. labor market released on Dec. 11 were not similarly encouraging, however. For the second consecutive week, initial claims for unemployment insurance increased last week, the U.S. Labor Department reported. For the week ending Dec. 6, the seasonally adjusted number of initial claims was 378,000, some 13,000 more than the previous week's unrevised figure of 365,000. Economists had been looking for last week's number to fall to about 355,000. The Labor Department's four-week moving average for initial jobless benefit claims also rose last week, up 2,250 to 364,750. - John S. McClenahen
Data on the U.S. labor market released on Dec. 11 were not similarly encouraging, however. For the second consecutive week, initial claims for unemployment insurance increased last week, the U.S. Labor Department reported. For the week ending Dec. 6, the seasonally adjusted number of initial claims was 378,000, some 13,000 more than the previous week's unrevised figure of 365,000. Economists had been looking for last week's number to fall to about 355,000. The Labor Department's four-week moving average for initial jobless benefit claims also rose last week, up 2,250 to 364,750. - John S. McClenahen
Thursday, December 11, 2003
IW/MPI Census presents magic bullets for better plant performance
If I could sell you three magic bullets -- guaranteed to improve your company's performance immediately and for as long as you continue using them -- would you buy them?
You'd say, "Of course."
If I could prove that you already owned these bullets -- but were too busy putting out fires and looking for shiny new strategies to notice them -- would you let me?
You'd say, "Show me."
OK. The 2003 IndustryWeek/Manufacturing Performance Institute Census looks at a lot of strategies -- whether lean manufacturing works better than Six Sigma, whether the Toyota Production System offers more promise than Total Quality Management, et cetera. Yet, for all the interesting particulars, the clearest message is that old-fashioned leadership still matters most of all -- not only in terms of strategy, but also in terms of how leaders specifically interact with their employees and managers. According to the Census, three broad categories of human resource and leadership practices correlate strongly with the achievement of world-class manufacturing status. Even better, these practices are available -- at little or no cost -- to any CEO, vice president or plant manager willing to pay attention.
What are these magic bullets?
Find the right workers: The frustrating days of the late 1990s -- when manufacturers couldn't find warm bodies, much less qualified workers -- may be over, but the challenge of finding the right employees remains. Nothing boosts performance faster than hiring talented, motivated workers. Yet despite its importance, more than 26% of all plants don't have a formal recruiting and hiring program. Even more striking are the differences between plants that have made no progress toward world-class status (44.5% have no recruiting or hiring program at all) and world-class facilities, defined as those that have either achieved or made significant progress toward world-class status (83.9% have a formal program, with 31.7% rating it as highly effective). The message is clear: Plants that establish formal recruiting and hiring programs perform better than their peers.
Train, train, train: Having the right workers won't help if they don't understand what you want them to do and how to do it. World-class facilities not only invest more dollars in training (68.1% spend 2% or more of their annual labor budget on training vs. just 35.5% of no-progress plants), they also expect more of employees (46.7% require at least 21 hours of formal training per employee per year vs. just 18.8% of no-progress plants). Many companies cut training programs at the first sign of a downturn, believing, evidently, that it's best to face troubled times with untrained, ignorant workers. The 2003 Census offers powerful rebuttal: To be world-class means to train.
Get out of the way: Thomas Jefferson wrote: That government is best which governs the least, because its people discipline themselves. According to the Census, the same holds true for management. World-class facilities emphatically place the power for decision-making and customer satisfaction in the hands of frontline workers (40.8% have at least 50% of their workers in empowered or self-directed work teams vs. just 16.6% of no-progress plants). How do they do this? By using effective teaming schemes (74.1% of world-class plants vs. 41.2% of no-progress plants) and performance management systems (89.8% of world-class firms vs. 56% of no-progress firms). - John R. Brandt
You'd say, "Of course."
If I could prove that you already owned these bullets -- but were too busy putting out fires and looking for shiny new strategies to notice them -- would you let me?
You'd say, "Show me."
OK. The 2003 IndustryWeek/Manufacturing Performance Institute Census looks at a lot of strategies -- whether lean manufacturing works better than Six Sigma, whether the Toyota Production System offers more promise than Total Quality Management, et cetera. Yet, for all the interesting particulars, the clearest message is that old-fashioned leadership still matters most of all -- not only in terms of strategy, but also in terms of how leaders specifically interact with their employees and managers. According to the Census, three broad categories of human resource and leadership practices correlate strongly with the achievement of world-class manufacturing status. Even better, these practices are available -- at little or no cost -- to any CEO, vice president or plant manager willing to pay attention.
What are these magic bullets?
Find the right workers: The frustrating days of the late 1990s -- when manufacturers couldn't find warm bodies, much less qualified workers -- may be over, but the challenge of finding the right employees remains. Nothing boosts performance faster than hiring talented, motivated workers. Yet despite its importance, more than 26% of all plants don't have a formal recruiting and hiring program. Even more striking are the differences between plants that have made no progress toward world-class status (44.5% have no recruiting or hiring program at all) and world-class facilities, defined as those that have either achieved or made significant progress toward world-class status (83.9% have a formal program, with 31.7% rating it as highly effective). The message is clear: Plants that establish formal recruiting and hiring programs perform better than their peers.
Train, train, train: Having the right workers won't help if they don't understand what you want them to do and how to do it. World-class facilities not only invest more dollars in training (68.1% spend 2% or more of their annual labor budget on training vs. just 35.5% of no-progress plants), they also expect more of employees (46.7% require at least 21 hours of formal training per employee per year vs. just 18.8% of no-progress plants). Many companies cut training programs at the first sign of a downturn, believing, evidently, that it's best to face troubled times with untrained, ignorant workers. The 2003 Census offers powerful rebuttal: To be world-class means to train.
Get out of the way: Thomas Jefferson wrote: That government is best which governs the least, because its people discipline themselves. According to the Census, the same holds true for management. World-class facilities emphatically place the power for decision-making and customer satisfaction in the hands of frontline workers (40.8% have at least 50% of their workers in empowered or self-directed work teams vs. just 16.6% of no-progress plants). How do they do this? By using effective teaming schemes (74.1% of world-class plants vs. 41.2% of no-progress plants) and performance management systems (89.8% of world-class firms vs. 56% of no-progress firms). - John R. Brandt
U.S. Supreme Court Upholds Reforms To Political Campaigns
The U.S. Supreme Court on Dec. 10 upheld key features of a sweeping law designed to rein in the influence of money in what have become hugely expensive American political campaigns. Sharply divided justices ruled 5-4 that U.S. lawmakers can regulate the millions of dollars given to political parties with the intention of affecting the vote. They also ruled 5-4 that lawmakers can restrict political advertising in the run-up to elections, arguing that the right to free speech is outweighed by the need to avoid corruption in politics.
The U.S. Chamber of Commerce expressed disappointment in the ruling. "This decision is a disappointing step back toward less information, fewer options and restricted speech," said Thomas Donohue, Chamber president and CEO.
The campaign finance law limits what had become massive contributions known as "soft money" given to political parties by corporations, labor unions and wealthy individuals. Such money was a major factor in the record spending of nearly half-a-billion dollars spent in the 2000 elections.
While "hard money" was already strictly regulated and goes directly to political campaigns, "soft" contributions were ostensibly for party-building activities and mobilizing the vote. The lines were frequently blurred, however.
The new ruling means candidates will be restricted to regulated contributions as the 2004 presidential and congressional elections heat up, although new interest groups have already sprung up seeking ways to use the now-banned funds.
The law also banned the use of corporate funds, interest group money or labor union dues to broadcast so-called "issue ads" that identify a specific candidate 60 days before a general election and 30 days before a primary election.
"We are under no illusion that [the law] will be the last congressional statement on the matter," Justices Sandra Day O'Connor and John Paul Stevens wrote in the opinion for the majority. "Money, like water, will always find an outlet. What problems will arise, and how Congress will respond, are concerns for another day."
IW contributed to this report. - Agence France-Presse
The U.S. Chamber of Commerce expressed disappointment in the ruling. "This decision is a disappointing step back toward less information, fewer options and restricted speech," said Thomas Donohue, Chamber president and CEO.
The campaign finance law limits what had become massive contributions known as "soft money" given to political parties by corporations, labor unions and wealthy individuals. Such money was a major factor in the record spending of nearly half-a-billion dollars spent in the 2000 elections.
While "hard money" was already strictly regulated and goes directly to political campaigns, "soft" contributions were ostensibly for party-building activities and mobilizing the vote. The lines were frequently blurred, however.
The new ruling means candidates will be restricted to regulated contributions as the 2004 presidential and congressional elections heat up, although new interest groups have already sprung up seeking ways to use the now-banned funds.
The law also banned the use of corporate funds, interest group money or labor union dues to broadcast so-called "issue ads" that identify a specific candidate 60 days before a general election and 30 days before a primary election.
"We are under no illusion that [the law] will be the last congressional statement on the matter," Justices Sandra Day O'Connor and John Paul Stevens wrote in the opinion for the majority. "Money, like water, will always find an outlet. What problems will arise, and how Congress will respond, are concerns for another day."
IW contributed to this report. - Agence France-Presse
Tuesday, December 09, 2003
Mobile Phone Sales Grow 22% In 3Q
Mobile phone handset sales grew 22% in the third quarter from the same period of 2002 and could reach half a billion units this year, a study released Dec. 8 said. Worldwide sales of mobile phones reached 132.8 million units in the third quarter, the study by Stamford, Conn., research firm Gartner Inc. found.
"The mobile terminals market is exhibiting extraordinarily strong growth in 2003," Gartner analyst Ben Wood said in a statement.
Nokia Corp. was the top maker, although its market share slipped to 34.2% in the third quarter from 35.5% in the same period last year. Motorola Inc. was the second-biggest maker with 14.7% of the market in the third quarter, followed by Samsung with 11.2%.
Growth in sales was driven by users getting more sophisticated handsets, with camera phones in particular on the rise. But strong growth in sales was also seen among first-time users in Asia and eastern Europe.
"The Europe, Middle East and Africa region accounted for 35.5% of the world's mobile phone sales, fueled by replacement buying in western Europe," said Gartner analyst Carolina Milanesi, adding that Russia in particular saw strong sales. - Agence France-Presse
"The mobile terminals market is exhibiting extraordinarily strong growth in 2003," Gartner analyst Ben Wood said in a statement.
Nokia Corp. was the top maker, although its market share slipped to 34.2% in the third quarter from 35.5% in the same period last year. Motorola Inc. was the second-biggest maker with 14.7% of the market in the third quarter, followed by Samsung with 11.2%.
Growth in sales was driven by users getting more sophisticated handsets, with camera phones in particular on the rise. But strong growth in sales was also seen among first-time users in Asia and eastern Europe.
"The Europe, Middle East and Africa region accounted for 35.5% of the world's mobile phone sales, fueled by replacement buying in western Europe," said Gartner analyst Carolina Milanesi, adding that Russia in particular saw strong sales. - Agence France-Presse
Friday, December 05, 2003
Bush Lifts Steel Tariffs, But . . .
The four women steelworkers who, in mid-November newspaper advertisements, said they were counting on U.S. President George W. Bush to keep his promise on protective import tariffs may be disappointed. And so, too, must be the steel industry executives who were urging that tariffs be continued until mid-March 2005, their slated expiration date. But the White House, facing trade retaliation from the 15-nation European Union (EU) following a World Trade Organization (WTO) ruling that the levies were illegal, announced Dec. 4 that the controversial tariffs on a variety of products, including flat steel, hot-rolled bar, cold-finished bar, tin mill products and stainless steel wire, were being lifted at 12:01 a.m. (EST) this morning, Dec. 5.
The tariffs ranged as high as 30% and were imposed on March 5, 2002.
"These safeguard measures have now achieved their purpose, and as a result of changed economic circumstances it is time to lift them," Bush said in a statement.
Although the tariffs are history, the administration intends to maintain a steel import licensing system to collect data on steel imports, keep an eye out for "harmful" import surges of steel, enforce anti-dumping and other U.S. trade laws "vigorously," and renew efforts within the Organization for Economic Cooperation & Development (OECD) to reduce national steel subsidies and cut back on inefficient global overcapacity. Bush also vowed to "pursue economic policies that create the conditions for steel producers, steel consumers -- who rely on steel to produce goods ranging from refrigerators to auto parts -- and other U.S. manufacturers to succeed."
A "deeply disappointed" Dan DiMicco, vice chairman, president and CEO of Nucor Corp., the Charlotte, N.C.-based steelmaker that ran mid-November steelworker newspaper ads urging continuation of the tariffs, nevertheless thanked the Bush administration for its pledge to enforce U.S. trade laws. "We also look forward to swift administration action to ensure the immediate dismantling of all safeguard actions by EU and WTO member countries," he said.
Not surprisingly, companies that consume steel and contended with large raw material cost increases quickly welcomed the White House move to eliminate the levies.
"The president's decision provides U.S. steel consumers and other businesses with the renewed opportunity to compete on a level playing field," said J.T. Battenberg III, chairman, president and CEO of Delphi Corp., Troy, Mich.
"American automotive parts manufacturers and our workers are very pleased by the President's decision," said Scott Meyer, president and COO of Ken-Tool and chairman of the Automotive Coalition on Steel Tariffs.
On the other side of the Atlantic Ocean, EU Trade Commissioner Pascal Lamy also welcomed the Bush Administration's decision but not without taking a dig at the U.S. "I am pleased to see that after nearly two years of litigation, the U.S. has decided to abide by their international obligations by lifting the illegal safeguards. EU steel producers and workers will be relieved, as will those in the seven other countries which stood together with the EU in contesting these measures."
Lamy is now counting on the OECD to deal with steel. "We should now concentrate our efforts in the OECD steel talks to cut down trade-distorting subsidies and global excess capacity, which is at the root of the problems [of] the U.S. steel industry," he said.
However, it's not certain that the OECD will be any more successful in resolving steel subsidy and capacity issues in the next several months than it has been during the past relatively unproductive two years.
Nor is it clear what the U.S. political fallout of the decision to end steel tariffs will be in presidential and congressional election year 2004, especially if economic recovery from the 2001 recession falters. - John S. McClenahen
The tariffs ranged as high as 30% and were imposed on March 5, 2002.
"These safeguard measures have now achieved their purpose, and as a result of changed economic circumstances it is time to lift them," Bush said in a statement.
Although the tariffs are history, the administration intends to maintain a steel import licensing system to collect data on steel imports, keep an eye out for "harmful" import surges of steel, enforce anti-dumping and other U.S. trade laws "vigorously," and renew efforts within the Organization for Economic Cooperation & Development (OECD) to reduce national steel subsidies and cut back on inefficient global overcapacity. Bush also vowed to "pursue economic policies that create the conditions for steel producers, steel consumers -- who rely on steel to produce goods ranging from refrigerators to auto parts -- and other U.S. manufacturers to succeed."
A "deeply disappointed" Dan DiMicco, vice chairman, president and CEO of Nucor Corp., the Charlotte, N.C.-based steelmaker that ran mid-November steelworker newspaper ads urging continuation of the tariffs, nevertheless thanked the Bush administration for its pledge to enforce U.S. trade laws. "We also look forward to swift administration action to ensure the immediate dismantling of all safeguard actions by EU and WTO member countries," he said.
Not surprisingly, companies that consume steel and contended with large raw material cost increases quickly welcomed the White House move to eliminate the levies.
"The president's decision provides U.S. steel consumers and other businesses with the renewed opportunity to compete on a level playing field," said J.T. Battenberg III, chairman, president and CEO of Delphi Corp., Troy, Mich.
"American automotive parts manufacturers and our workers are very pleased by the President's decision," said Scott Meyer, president and COO of Ken-Tool and chairman of the Automotive Coalition on Steel Tariffs.
On the other side of the Atlantic Ocean, EU Trade Commissioner Pascal Lamy also welcomed the Bush Administration's decision but not without taking a dig at the U.S. "I am pleased to see that after nearly two years of litigation, the U.S. has decided to abide by their international obligations by lifting the illegal safeguards. EU steel producers and workers will be relieved, as will those in the seven other countries which stood together with the EU in contesting these measures."
Lamy is now counting on the OECD to deal with steel. "We should now concentrate our efforts in the OECD steel talks to cut down trade-distorting subsidies and global excess capacity, which is at the root of the problems [of] the U.S. steel industry," he said.
However, it's not certain that the OECD will be any more successful in resolving steel subsidy and capacity issues in the next several months than it has been during the past relatively unproductive two years.
Nor is it clear what the U.S. political fallout of the decision to end steel tariffs will be in presidential and congressional election year 2004, especially if economic recovery from the 2001 recession falters. - John S. McClenahen
Tuesday, December 02, 2003
Bush Makes No Decision On Steel Tariffs
U.S. President George W. Bush has not yet made a decision on whether to lift controversial tariffs on imports of foreign steel, the White House said on Dec. 1.
"He has not made a decision. It remains under review," said White House spokesman Scott McClellan. The World Trade Organization is set to formalize on Dec. 10 a ruling saying U.S. safeguards on selected steel imports flout international rules, which could spark billion-dollar retaliatory EU tariffs on a range of U.S. goods.
"We continue to consult with users, consumers and members of Congress and others," McClellan said.
Several U.S. newspapers on Dec. 1 said Bush had decided to eliminate the tariffs on foreign steel imports. Bush imposed the tariffs in 2002 in a bid to protect America's ailing steel producers, but the EU, Japan, China and Norway have urged Bush to scrap the tariffs or face retaliatory measures. -Agence France-Presse
"He has not made a decision. It remains under review," said White House spokesman Scott McClellan. The World Trade Organization is set to formalize on Dec. 10 a ruling saying U.S. safeguards on selected steel imports flout international rules, which could spark billion-dollar retaliatory EU tariffs on a range of U.S. goods.
"We continue to consult with users, consumers and members of Congress and others," McClellan said.
Several U.S. newspapers on Dec. 1 said Bush had decided to eliminate the tariffs on foreign steel imports. Bush imposed the tariffs in 2002 in a bid to protect America's ailing steel producers, but the EU, Japan, China and Norway have urged Bush to scrap the tariffs or face retaliatory measures. -Agence France-Presse
Monday, December 01, 2003
Less Time To Keep On Truckin'
