Category: Trade

  • MIL-OSI China: EU criticizes US tariff, vowing to ‘respond firmly’ if targeted

    Source: China State Council Information Office

    The European Commission on Sunday criticized U.S. President Donald Trump’s tariff imposed upon three countries, saying they disrupt global trade and are harmful to all, and vowing to hit back if targeted.

    “The European Union (EU) regrets the U.S. decision to impose tariffs on Canada, Mexico, and China,” an EU spokesman was quoted by local media.

    He highlighted the importance of “open markets and respect for international trade rules,” saying they are essential for strong and sustainable economic growth. “Tariffs create unnecessary economic disruption and drive inflation. They are hurtful to all sides,” he added.

    Referring to potential U.S. tariffs on EU products, the spokesman said “the EU would respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods.”

    “Our trade and investment relationship with the United States is the biggest in the world. There is a lot at stake,” he was quoted as saying.

    Since Trump’s second term started, Brussels has been advocating that the two sides should work on strengthening the existing transatlantic relationships, and has dedicated efforts to avoiding a trade conflict with Washington through negotiation. However, Trump doubled down on his plan by saying he would “absolutely” impose tariffs on the EU goods last week.

    On Saturday, Trump signed an executive order to impose a 10-percent tariff hike on goods imported from China, and a 25-percent tariff on goods from Mexico and Canada. The move has drawn widespread opposition and immediate retaliations.

    In response, China’s Ministry of Commerce said Sunday that China will file a complaint at the World Trade Organization and take corresponding countermeasures to firmly safeguard its rights and interests. Canadian Prime Minister Justin Trudeau announced Saturday that Canada will impose a levy of 25 percent on 21 billion U.S. dollars worth of American goods as of Tuesday. Mexican President Claudia Sheinbaum has instructed the Secretariat of Economy to implement tariff and non-tariff measures to defend Mexico’s interests. 

    MIL OSI China News

  • MIL-OSI China: US tariff move sparks criticism, concern in Germany

    Source: China State Council Information Office

    U.S. President Donald Trump’s tariff move against Canada, Mexico and China has sparked criticism and concern in Germany.

    On Saturday, Trump ordered to impose a 25-percent tariff on imports from Mexico and Canada, and a 10-percent tariff on Chinese goods. He also signaled that the European Union (EU) could be next, citing the bloc’s persistent trade surplus with the U.S.

    While reaffirming Germany’s commitment to economic ties with the U.S., German Chancellor Olaf Scholz emphasized that the first priority should be “not to divide up the world with many tariff barriers.”

    “Tariffs have never been a good idea to resolve trade policy conflicts,” Chairman of the German Christian Democratic Union Friedrich Merz said, warning of backlash in the U.S. as rising import costs would fuel inflation and hit American consumers directly.

    Dirk Jandura, president of the Federation of German Wholesale, Foreign Trade and Services (BGA), described the tariffs as “a clear warning to the EU and Ursula von der Leyen,” stressing that neither Germany nor the EU should remain passive.

    Trump’s move would come at a high cost for Americans, Jandura said, adding, “The losers are always end consumers, who will feel the price increase at the checkout.”

    German companies are also bracing for the impact, as many supply the U.S. market from Mexico, particularly in the automotive industry.

    According to the German newspaper Handelsblatt, Mexico has been Germany’s most important investment location in Latin America for years, with total investments exceeding 45 billion U.S. dollars since the 2000s.

    Volkswagen Group, which operates one of its largest vehicle factories in Mexico, produces nearly 80 percent of its North America vehicles in Mexico and Canada. A Volkswagen spokesman voiced concerns about the tariffs’ potential economic fallout, warning of negative effects on American consumers and the global auto industry.

    According to the credit rating agency S&P, Canada and Mexico produce around 5.3 million passenger cars annually, with approximately 70 percent destined for the U.S.

    Importers are likely to pass most, if not all, of the price increase to consumers, S&P noted, warning that the additional costs would further strain affordability in the U.S. auto market. 

    MIL OSI China News

  • MIL-OSI Asia-Pac: Atmanirbhar Bharat in Defence

    Source: Government of India (2)

    Atmanirbhar Bharat in Defence

    ₹1.27 Lakh Crore in Production, ₹21,083 Crore in Exports – Defence on the Fast Track

    Posted On: 01 FEB 2025 2:20PM by PIB Delhi

    Introduction

    India’s defence sector has undergone a remarkable transformation since 2014, evolving from a largely import-dependent military force to one increasingly focused on self-reliance and indigenous production. As one of the strongest military powers globally, India holds a pivotal role in ensuring regional security and fulfilling strategic goals. The country’s defence budget, which stood at ₹2,53,346 crore[1] in 2013-14, has seen a significant rise, reaching ₹6,21,940.85 crore[2] in 2024-25, reflecting a clear commitment to strengthening the nation’s defence capabilities. Central to this transformation is the growth of India’s defence manufacturing industry, which has become an integral part of the economy. Through the “Make in India” initiative and policy reforms, the government has actively promoted domestic production and reduced reliance on foreign procurement. This shift has been a key component of India’s broader vision of achieving Atmanirbharta (self-reliance) in defence, positioning the nation as an emerging hub for the production of advanced military technologies and equipment.

    Defence Production

    v Record Defence Production: In FY 2023-24, India’s domestic defence production reached ₹1.27 lakh crore, marking a record high, with an impressive increase of approximately 174% from ₹46,429 crore in 2014-15.

    1. Achieving New Milestones: India is on track to achieve a target of ₹1.75 lakh crore in defence production in the current fiscal year.
    1. Vision for the Future: India aims to reach ₹3 lakh crore in defence production by 2029, further establishing itself as a global defence manufacturing hub.

    Defence Exports

    v Surge in Defence Exports: India’s defence exports have surged from ₹1941 crore in FY 2014-15 to ₹21,083 crore in FY 2023-24, reflecting a remarkable increase in export value.

    v Strong Year-on-Year Growth: A 32.5% growth in defence exports was recorded over the previous fiscal year 2022-23, rising from ₹15,920 crore.

     

    1. Decadal Growth: Defence exports have grown 21 times, from ₹4,312 crore in the 2004-14 decade to ₹88,319 crore in the 2014-24 decade, highlighting India’s expanding role in the global defence sector.

     

    1. Expanding Global Reach: Driven by government policy reforms, ease of doing business initiatives, and a push for self-reliance, India now exports to over 100 nations.

     

    1. Key Export Destinations: The top three destinations for India’s defence exports in 2023-24 were the USA, France, and Armenia.

     

    1. Ambitious Export Target: The target for 2029 is to increase defence exports to ₹50,000 crore, underscoring India’s ambition to become a reliable global defence partner.
    2. Diverse Export Portfolio: India’s export portfolio includes advanced equipment such as bulletproof jackets, Dornier (Do-228) aircraft, Chetak helicopters, fast interceptor boats, and lightweight torpedoes.
    3. Milestone Achievement: A significant milestone was the inclusion of ‘Made in Bihar’ boots in the Russian Army’s equipment, highlighting India’s high manufacturing standards in the global defence market.

    Conclusion

    India’s defence sector has made unprecedented strides over the past decade, driven by a strong policy push towards self-reliance and domestic manufacturing. The significant rise in defence production and exports underscores the country’s growing capability as a global defence manufacturing hub. With a record ₹1.27 lakh crore in defence production and exports reaching ₹21,083 crore in FY 2023-24, India has demonstrated its commitment to reducing dependency on imports while strengthening its presence in the global market.

    As the nation aims for ₹3 lakh crore in defence production and ₹50,000 crore in exports by 2029, these achievements highlight India’s emergence as a reliable defence partner worldwide. By leveraging innovation, strategic partnerships, and indigenous capabilities, India is well-positioned to play a pivotal role in the future of global defence manufacturing and security.

    References:

    https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2016818

    https://pib.gov.in/PressReleasePage.aspx?PRID=2069090

    https://sansad.in/getFile/loksabhaquestions/annex/178/AS325.pdf?source=pqals

    https://pib.gov.in/PressReleasePage.aspx?PRID=2035748

    https://www.ibef.org/industry/defence-manufacturing

    Click here to see in PDF:

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  • MIL-OSI Asia-Pac: PRIME MINISTER DHAN-DHAANYA KRISHI YOJANA TO BE LAUNCHED IN 100 LOW CROP PRODUCTIVITY DISTRICTS, PROGRAMME WILL HELP 1.7 CRORE FARMERS TO ENHANCE AGRICULTURAL PRODUCTIVITY, IMPROVE IRRIGATION FACILITIES AND FACILITATE LONG-TERM AND SHORT-TERM CREDIT: UNION BUDGET 2025-26

    Source: Government of India

    PRIME MINISTER DHAN-DHAANYA KRISHI YOJANA TO BE LAUNCHED IN 100 LOW CROP PRODUCTIVITY DISTRICTS, PROGRAMME WILL HELP 1.7 CRORE FARMERS TO ENHANCE AGRICULTURAL PRODUCTIVITY, IMPROVE IRRIGATION FACILITIES AND FACILITATE LONG-TERM AND SHORT-TERM CREDIT: UNION BUDGET 2025-26

    RURAL PROSPERITY AND RESILIENCE PROGRAMME ANNOUNCED TO ADDRESS UNDER-EMPLOYMENT IN AGRICULTURE TRHOUGH SKILLING, INVESTMENT, TECHNOLOGY AND INVIGORATING RURAL ECONOMY

    6-YEAR “MISSION FOR AATMANIRBHARTA IN PULSES”; EMPHASIS ON DEVELOPING CLIMATE RESILIENT SEEDS, IMPROVING POST-HARVEST STORAGE, ASSURING REMUNERATIVE PRICES TO FARMERS

    UNION BUDGET PROPOSES COMPREHEMSIVE PROGRAMME FOR VEGETABLES AND FRUITS TO PROMOTE PRODUCTION, EFFICIENT SUPPLIES, PROCESSING AND REMUNERATIVE PRICES FOR FARMERS

    PUBLIC SECTOR BANKS TO DEVELOP ‘GRAMEEN CREDIT SCORE’ FRAMEWORK TO SERVE CREDIT NEEDS OF SHG MEMBERS AND RURAL POPULATION

    Posted On: 01 FEB 2025 1:23PM by PIB Delhi

    Spurring agricultural growth and productivity is one of the development measures proposed in the Union Budget 2025-26. Agriculture is one of the four powerful engines amongst MSME, Investment and Exports, stated Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, while presenting the Union Budget 2025-26, in the Parliament today.

    Specific proposals proposed in the Union Budget to strengthen productivity and resilience in agriculture are as follows:

    Prime Minister Dhan-Dhaanya Krishi YojanaDeveloping Agri Districts Programme:

    The Union Finance Minister stated that motivated by the success of the Aspirational Districts Programme, the Government will undertake a ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ in partnership with states. Through the convergence of existing schemes and specialized measures, the programme will cover 100 districts with low productivity, moderate crop intensity and below-average credit parameters. The programme aims to enhance agricultural productivity; adopt crop diversification and sustainable agriculture practices; augment post-harvest storage at the panchayat and block level; improve irrigation facilities and facilitate availability of long-term and short-term credit. This programme is likely to help 1.7 crore farmers.

     

    Building Rural Prosperity and Resilience:

    A comprehensive multi-sectoral ‘Rural Prosperity and Resilience’ programme will be launched in partnership with states, added the Union Finance Minister. This will address under-employment in agriculture through skilling, investment, technology, and invigorating the rural economy. The goal is to generate ample opportunities in rural areas so that migration is an option, but not a necessity. She further added that the programme will focus on rural women, young farmers, rural youth, marginal and small farmers, and landless families. The programme aims in catalyzing enterprise development, employment and financial independence for rural women; accelerating creation of new employment and businesses for young farmers and rural youth; nurturing and modernizing agriculture for productivity improvement and warehousing, especially for marginal and small farmers and diversifying opportunities for landless families. The Union Finance Minister further highlighted that the global and domestic best practices will be incorporated and appropriate technical and financial assistance will be sought from multilateral development banks. In Phase-1, 100 developing agri-districts will be covered.

     

    Aatmanirbharta in Pulses:

    Smt. Nirmala Sitharaman highlighted that the Government is implementing the National Mission for Edible Oilseed for achieving atmanirbhrata in edible oils. The Government made concerted efforts and succeeded in achieving near self-sufficiency in pulses. Farmers responded to the need by increasing the cultivated area by 50 per cent and Government arranged for procurement and remunerative prices. Since then, with rising incomes and better affordability, consumption of pulses has increased significantly. She further emphasized that the Government will launch a 6-year “Mission for Aatmanirbharta in Pulses” with a special focus on Tur, Urad and Masoor. The Mission will place emphasis on development and commercial availability of climate resilient seeds; enhancing protein content; increasing productivity; improving post-harvest storage and management and assuring remunerative prices to the farmers. Central agencies (NAFED and NCCF) will be ready to procure these 3 pulses, as much as offered during the next 4 years from farmers who register with these agencies and enter into agreements.

     

    Comprehensive Programme for Vegetables & Fruits:

    The Union Finance Minister said that it is encouraging that people are increasingly becoming aware of their nutritional needs. It is a sign of a society becoming healthier. With rising income levels, the consumption of vegetables, fruits and Shree-Anna is increasing significantly. A comprehensive programme to promote production, efficient supplies, processing, and remunerative prices for farmers will be launched in partnership with states. She further added that appropriate institutional mechanisms for implementation and participation of farmer producer organizations and cooperatives will be set up.

     

    Grameen Credit Score:

    The Union Finance Minister stated that Public Sector Banks will develop ‘Grameen Credit Score’ framework to serve the credit needs of SHG members and people in rural areas.

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  • MIL-OSI Asia-Pac: INVESTMENT AND TURNOVER LIMITS FOR CLASSIFICATION OF ALL MSMEs TO BE ENHANCED TO 2.5 AND 2 TIMES RESPECTIVELY

    Source: Government of India (2)

    INVESTMENT AND TURNOVER LIMITS FOR CLASSIFICATION OF ALL MSMEs TO BE ENHANCED TO 2.5 AND 2 TIMES RESPECTIVELY

    CREDIT GUARANTEE COVER FOR MICRO AND SMALL ENTERPRISES ENHANCED FROM 5 CRORE TO 10 CRORE

    10 LAKH CUSTOMIZED CREDIT CARDS WITH A 5 LAKH LIMIT FOR MICRO ENTERPRISES REGISTERED ON UDYAM PORTAL TO BE INTRODUCED IN THE FIRST YEAR

    NEW FUND OF FUNDS of Rs. 10,000 CRORE TO BE SET UP FOR START-UPS

    A NEW SCHEME TO PROVIDE LOANS UP TO 2 CRORE DURING THE NEXT 5 YEARS FOR 5 LAKH WOMEN, SCHEDULED CASTES AND SCHEDULED TRIBES FIRST-TIME ENTREPRENEURS TO BE LAUNCHED

    EXPORT PROMOTION MISSION TO FACILITATE EASY ACCESS TO EXPORT CREDIT AND SUPPORT MSMEs TO TACKLE NON-TARIFF MEASURES IN OVERSEAS MARKETS ANNOUNCED

    Posted On: 01 FEB 2025 1:17PM by PIB Delhi

    The Union Budget 2025-26 sees the next five years as a unique opportunity to realize ‘Sabka Vikas’, stimulating balanced growth of all regions and achieving the goal of Viksit Bharat.

    The Union Budget defines MSMEs as one of the powerful engines for the story of development and the proposed development measures supports MSMEs to accelerate growth and secure inclusive development.

    Revision in classification criteria for MSMEs

    While presenting the Union Budget 2025-26 in Parliament today, the Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman said “To help MSMEs achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively.” The details are in Figure 1.

    She further said that this will give them the confidence to grow and generate employment for our youth.

    Rs. in Crore

    Investment

    Turnover

     

    Current

    Revised

    Current

    Revised

    Micro Enterprises

    1

    2.5

    5

    10

    Small Enterprises

    10

    25

    50

    100

    Medium Enterprises

    50

    125

    250

    500

    (Figure 1)

     

    Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman stated that currently, over 1 crore registered MSMEs, employing 7.5 crore people, and generating 36 per cent of our manufacturing, have come together to position India as a global manufacturing hub.  She also remarked “With their quality products, these MSMEs are responsible for 45 per cent of our exports.”  

    Significant enhancement of credit availability with guarantee cover

    Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman said that to improve access to credit, the credit guarantee cover will be enhanced:

    a) For Micro and Small Enterprises, from 5 crore to 10 crore, leading to additional credit of  1.5 lakh crore in the next 5 years;

    b) For Startups, from 10 crore to 20 crore, with the guarantee fee being moderated to 1 per cent for loans in 27 focus sectors important for Atmanirbhar Bharat; and

    c) For well-run exporter MSMEs, for term loans up to 20 crore.

    Credit Cards for Micro Enterprises

    Union Minister Smt. Nirmala Sitharaman announced that customized Credit Cards with a 5 lakh limit for micro enterprises registered on Udyam portal will be introduced. She further remarked that in the first year, 10 lakh such cards will be issued.

    Fund of Funds for Startups

    In her Budget speech, Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman said, “The Alternate Investment Funds (AIFs) for startups have received commitments of more than 91,000 crore. These are supported by the Fund of Funds set up with a Government contribution of 10,000 crore.” She announced that now, a new Fund of Funds, with expanded scope and a fresh contribution of another 10,000 crore will be set up.

    Scheme for First-time Entrepreneurs

    Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman announced that a new scheme will be launched for 5 lakh women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs. She informed that this will provide term loans up to 2 crore during the next 5 years. In her speech she said, “The scheme will incorporate lessons from the successful Stand-Up India scheme. Online capacity building for entrepreneurship and managerial skills will also be organized.”

    Deep Tech Fund of Funds

    Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman informed that a Deep Tech Fund of Funds will also be explored to catalyze the next generation startups as a part of this initiative.

    Export Promotion Mission

    Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman stated that an Export Promotion Mission, with sectoral and ministerial targets, driven jointly by the Ministries of Commerce, MSME, and Finance will be set up. She also informed that the Mission will facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-tariff measures in overseas markets.

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  • MIL-OSI Asia-Pac: ‘BHARATTRADENET’ FOR INTERNATIONAL TRADE TO BE SET-UP AS A UNIFIED PLATFORM FOR TRADE DOCUMENTATION AND FINANCING SOLUTIONS: UNION BUDGET 2025-26

    Source: Government of India (2)

    ‘BHARATTRADENET’ FOR INTERNATIONAL TRADE TO BE SET-UP AS A UNIFIED PLATFORM FOR TRADE DOCUMENTATION AND FINANCING SOLUTIONS: UNION BUDGET 2025-26

    DOMESTIC MANUFACTURING CAPACITIES TO BE AUGMENTED FOR INTEGRATING INDIAN ECONOMY WITH GLOBAL SUPPLY CHAINS

    GOVERNMENT WILL SUPPORT THE DOMESTIC ELECTRONIC EQUIPMENT INDUSTRY TO LEVERAGE THE OPPORTUNITY OF INDUSTRY 4.0

    NATIONAL FRAMEWORK FOR STATES TO BE FORMULATED FOR PROMOTING GLOBAL CAPABILITY CENTRES IN EMERGING TIER 2 CITIES

    Posted On: 01 FEB 2025 1:15PM by PIB Delhi

    In our journey of realizing ‘Sabka Vikas’ by stimulating balanced growth of all regions, Exports have been reckoned as one of the powerful engines of India’s growth story. The Union Budget 2025-26 tabled in Parliament today by Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman, aims to initiate transformative reforms in domestic manufacturing and integrating India’s economy with global supply chains.

    BharatTradeNet

    A digital public infrastructure, ‘BharatTradeNet’ (BTN) for international trade has been proposed to be set-up as a unified platform for trade documentation and financing solutions. In the budget speech Smt. Sitharaman stated that, “BTN will complement the Unified Logistics Interface Platform and will be aligned with international practices”.

    Integrating India’s Economy with Global Supply Chains

    The Finance Minister announced in the Union Budget 2025-26 that support will be provided to develop domestic manufacturing capacities for integrating Indian economy with global supply chains. In this direction, the sectors will be identified based on an objective criteria.

    It is also proposed that facilitation groups with participation of senior officers and industry representatives be formed for select products and supply chains.

    Smt. Nirmala Sitharaman highlighted that the youth of India have both high skills and talent which are required for capitalizing on the opportunities related to Industry 4.0. “Our Government will support the domestic electronic equipment industry to leverage this opportunity for the benefit of the youth”, she added.

    National Framework for GCC

    It has been proposed in the Union Budget 2025-26 that a National Framework will be formulated as guidance to states for promoting Global Capability Centres in emerging tier 2 cities. This will suggest 16 measures for enhancing availability of talent and infrastructure, building-byelaw reforms, and mechanisms for collaboration with industry.

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  • MIL-OSI Asia-Pac: India’s Startup Revolution

    Source: Government of India

    Posted On: 01 FEB 2025 2:44PM by PIB Delhi

    1.57 lakh startups and 17.28 lakh jobs mark a decade of progress

     

    India has firmly established itself as the third-largest startup ecosystem in the world, with over 1.57 lakh certificates issued by Department for Promotion of Industry and Internal Trade (DPIIT) for recognition of startups as of December 31, 2024. The nation’s entrepreneurial landscape, fuelled by more than 100 unicorns, is redefining innovation and creating new opportunities across sectors. Major hubs like Bengaluru, Hyderabad, Mumbai, and Delhi-NCR have been at the forefront of this transformation, while smaller cities are increasingly contributing to the momentum with over 51% of the startups emerging from Tier II/ III cities. Through initiatives like Startup India, the government has played a pivotal role in nurturing this growth and empowering the next generation of entrepreneurs.

    Startup India

    Launched on 16th January 2016, Startup India is a flagship initiative by the Government of India to foster innovation and create a thriving startup ecosystem. Its goal is to drive economic growth and generate large-scale employment opportunities. By supporting startups in their

    growth journey, the initiative encourages innovation and design. Through various schemes, it aims to empower startups to scale and succeed.

     

     

    Progress and Impact:

     

    1. Startup Growth: The number of DPIIT-recognised startups has risen from around 502 in 2016 to 1,57,706 as of December 31, 2024.

     

    1. Job Creation: Startups have created over 17.28 lakh direct jobs as of December 31, 2024, with the IT Services sector leading at 2.10 lakh jobs, followed by Healthcare & Lifesciences (1.51 lakh) and Professional & Commercial Services (96,474).

     

    1. Women-Led Startups: As of December 31, 2024, a total of 75,935 recognised startups include at least one-woman director (as per self-reported data of recognized startups), showcasing the rise of women entrepreneurs in India.

     

    1. Ease of Doing Business & Tax Benefits: Simplified compliance, self-certification, and tax exemptions for three years have streamlined operations for startups.

     

     

    Startup India Seed Fund Scheme (SISFS)

    Launched in 2021 with a corpus of ₹945 crore, the SISFS supports startups at various stages, including proof of concept, prototype development, product trials, market entry, and commercialisation. The scheme, operational since 1st April 2021, is overseen by the Experts Advisory Committee (EAC), which evaluates and selects incubators for fund allocation.

    Progress and Impact:

     

     

    1. 213 incubators have been approved under the scheme as of December 2024.

     

    1. A total of 2,622 startups have benefited from ₹467.75 crore in funding as of December 2024.

     

    Fund of Funds for Startups (FFS) Scheme

    Launched in June 2016 with a corpus of ₹10,000 crore, the Fund of Funds for Startups (FFS) aims to boost access to domestic capital for startups. Managed by SIDBI, it funds SEBI- registered Alternative Investment Funds (AIFs), which then invest in startups through equity and equity-linked instruments.

     

    Progress and Impact:

     

    1. By 2024, ₹6,886 crores have been committed by DPIIT to SIDBI and ₹11,687 crore was committed by SIDBI to AIFs under the FFS scheme as of December 2024.

     

    1. This commitment catalyzed investments of ₹21,276 crore in 1,173 startups.

     

    Credit Guarantee Scheme for Startups (CGSS)

    The Credit Guarantee Scheme for Startups (CGSS) provides credit guarantees for loans to DPIIT-recognised startups from Scheduled Commercial Banks, NBFCs, and Venture Debt Funds. Implemented by the National Credit Guarantee Trustee Company Limited (NCGTC), it aims to offer credit guarantees up to a specified limit, easing access to funding for startups.

     

    Progress and Impact:

     

    1. As of January 3, 2025, the scheme has guaranteed 260 loans worth ₹604.16 crore to 209 startups.

     

    1. Among these, ₹27.04 crore has been allocated to 17 women-led startups.

    Other Notable Schemes                                                                                  

     

    Atal Innovation Mission (AIM)

     

    Launched in 2016 by NITI Aayog, the Atal Innovation Mission (AIM) aims to promote innovation and entrepreneurship across India. It includes initiatives like Atal Tinkering Labs at the school level to foster creativity, Atal Incubation Centres to build a robust startup ecosystem, and Atal Community Innovation Centres to serve unserved and underserved regions. The Atal New India Challenges focus on product and service innovations with national impact. All initiatives are monitored through real-time MIS systems, with third-party reviews for continuous improvement.

     

    Progress and Impact:

     

    1. Till date, 10,000 Atal Tinkering Labs have been established in schools across India under AIM.

     

    1. As of December 18, 2024, a total of 3,556 startups have been incubated in 72 Atal Incubation Centres (AICs), creating 41,965 jobs.

     

    MeitY Startup Hub (MSH)

    India is home to one of the most vibrant startup ecosystems with close to 30,000+ tech startups, making it the 3rd largest startup ecosystem in the world. The MeitY Startup Hub (MSH) aims to foster a vibrant innovation and startup ecosystem by uniting technology innovation stakeholders and promoting economic growth through innovation and technological advancement. It serves as a central hub, ensuring synergies among incubation centres, Centres of Excellence on Emerging Technologies, and other platforms supported by the Ministry of Electronics and Information Technology. MSH facilitates the sharing of resources, best practices, and ideas across the entire innovation and startup ecosystem.

     

    Progress and Impact:

     

    1. 5,310+ startups, 495+ incubators, and 328+ labs are part of the MeitY Startup Hub (MSH) scheme.

     

    Over the last 10 years, India’s startup ecosystem has experienced tremendous growth, becoming the third-largest in the world. With initiatives like Startup India, SISFS, CGSS, FFS, and sector-specific schemes such as AIM and MSH, the government has played a pivotal role in fostering innovation, creating jobs, and supporting entrepreneurs. This dynamic collaboration among stakeholders has strengthened the ecosystem, driving economic growth and empowering the next generation of innovators. Looking ahead, India’s startup landscape is set to reach even greater milestones.

     

    References:

     

    1. https://pib.gov.in/PressReleasePage.aspx?PRID=2093125
    2. https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1886031
    3. https://msh.meity.gov.in/
    4. https://aim.gov.in/overview.php
    5. https://sansad.in/getFile/loksabhaquestions/annex/183/AU3820_406x3D.pdf?source=pqals
    6. https://www.startupindia.gov.in/

    Click here to download PDF

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  • MIL-OSI Asia-Pac: India’s Exports Reach Historic Heights

    Source: Government of India

    Posted On: 01 FEB 2025 2:38PM by PIB Delhi

    Exports hit USD 778.21 billion in 2023-24, marking a 67% increase since 2013-14

     

    Introduction

    India’s exports have seen a historic rise, reaching USD 778.21 billion in 2023-24. This marks a 67% increase from USD 466.22 billion in 2013-14. The growth reflects India’s expanding role in global trade, driven by strong performances in both merchandise and services exports.

    In 2023-24, merchandise exports stood at USD 437.10 billion, while services exports contributed USD 341.11 billion, demonstrating a well-balanced expansion. Key sectors like electronics, pharmaceuticals, engineering goods, iron ore, and textiles played a vital role in this surge. Strengthened by strategic policy measures, enhanced competitiveness, and broader market access, India’s export ecosystem is now more resilient and deeply integrated into the global economy.

    The momentum has continued into FY 2024-25, with cumulative exports during April-December 2024 estimated at USD 602.64 billion, a 6.03% increase from USD 568.36 billion in the same period of 2023. Strengthened by strategic policy measures, enhanced competitiveness, and broader market access, India’s export ecosystem is now more resilient and deeply integrated into the global economy.

     

    Export Classification and Growth Trends

    Merchandise exports have grown from USD 314 billion in 2013-14 to USD 437.10 billion in 2023-24, driven by a stronger manufacturing base and increased global demand.

     

     

    Service exports have expanded from USD 152 billion in 2013-14 to USD 341.11 billion in 2023-24, fueled by the rise of IT, financial, and business services.

     

    Leading Export Regions Over the Years

    In 2004-05, India’s exports were predominantly directed to regions like North America, the European Union, North-East Asia, West Asia-Gulf Cooperation Council, and ASEAN. By 2013-14, there was a marked increase in export values across these regions, with North America, the EU, and West Asia seeing notable growth. Fast forward to 2023-24, and the export landscape shows continued expansion, with North America leading as the largest destination. The EU, West Asia, and ASEAN also experienced robust growth, illustrating India’s diversified and strengthened global trade relationships over the years.

     

     

    Key Export Destinations in 2023-24

     

    1. In 2023-24, the top merchandise export destinations for India included the USA (17.90%), UAE (8.23%), Netherlands (5.16%), China (3.85%), Singapore (3.33%), UK (3.00%), Saudi Arabia (2.67%), Bangladesh (2.55%), Germany (2.27%), and Italy (2.02%).

     

    1. Together, these 10 countries made up 51% of India’s total merchandise export value in 2023-24.

     

    Sectoral Growth in India’s Exports

    1. Mobile Phone Exports Growth: Mobile phone exports reached US$ 15.6 billion in 2023-24 from USD 0.2 billion in 2014-15. Domestic production of mobile phones grew from 5.8 crore units in 2014-15 to 33 crore units in 2023-24, with imports dropping significantly.
    1. Pharmaceutical Exports Surge: India, ranked third globally in drug and pharmaceutical production by volume, saw its pharmaceutical exports rise from USD 15.07 billion in 2013-14 to USD 27.85 billion in FY 2023-24.
    1. Engineering Goods Exports: Engineering goods exports grew to USD 109.32 billion in FY 2023-24, up from USD 62.26 billion in FY 2013-14.
    1. Agricultural Exports Growth: Agricultural exports from India increased from USD 22.70 billion in 2013-14 to USD 48.15 billion in 2023-24.

     

    Key Government Initiatives to Strengthen India’s Export Landscape

     

    Foreign Trade & Export Promotion

    1. New Foreign Trade Policy (FTP) 2023: Focuses on export incentives, ease of doing business, and emerging sectors like e-commerce and high-tech products. Introduced a one-time Amnesty Scheme to help exporters clear pending authorizations.
    2. Interest Equalisation Scheme (IES): It was extended until August 31, 2024, with a ₹12,788 crore allocation to provide concessional interest rates on export credit.
    3. RoDTEP & RoSCTL Schemes: Provide tax and duty reimbursements to exporters, benefiting sectors like pharmaceuticals, chemicals, and steel.
    4. Districts as Export Hubs: Identifies high-potential products in each district and provides infrastructure and market linkages.
    5. Trade Infrastructure for Export Scheme (TIES) & Market Access Initiative (MAI): Support infrastructure development and marketing efforts for export growth.

    Infrastructure & Logistics

    1. National Logistics Policy (NLP) & PM GatiShakti: Aim to reduce logistics costs and enhance multimodal connectivity through GIS-based planning.
    2. Production-Linked Incentive (PLI) Schemes: With an outlay of ₹1.97 lakh crore, these schemes promote large-scale manufacturing in 14 key sectors to enhance exports. Over Rs. 1.47 lakh crore of investment has been reported till October 2024, which has led to production/sales of Rs. 13 lakh crore and employment generation (direct & indirect) of around 10 lakh. Exports have been boosted by Rs. 4.5 lakh crore.

     

    1. Bharat Mart in Dubai: Provides MSMEs with affordable access to GCC, African, and CIS markets.

     

    Ease of Doing Business & Digital Initiatives

    1. Compliance & Decriminalization Reforms: Over 42,000 compliances reduced and 3,800 provisions decriminalized to simplify business processes.
    2. National Single Window System (NSWS): Streamlines approvals, allowing businesses to apply for 277 Central approvals.
    3. Trade Connect e-Platform: Links over 6 lakh IEC holders with Indian missions and export councils for seamless trade facilitation.
    4. Enhanced Insurance Cover for MSME Exporters: Provides ₹20,000 crore in low-cost credit to 10,000 MSME exporters.

    E-Commerce & Digital Trade

    1. E-Commerce Export Hub (ECEH): Aims to boost e-commerce exports to $100 billion by 2030, connecting SMEs and artisans to global markets.
    2. ICEGATE Digital Platform: Modernizes customs processes with e-filing, real-time tracking, and seamless documentation.

    Agriculture & Organic Exports

    1. National Programme for Organic Production (NPOP): Expected to benefit 20 lakh farmers, with organic exports targeted to exceed $1 billion by 2025-26.

     

    Conclusion

    India’s export sector has experienced extraordinary growth, driven by a combination of strategic policy measures, robust infrastructure development, and a strengthened manufacturing base. With exports touching new heights across both merchandise and services, the country has firmly established itself as a key player in global trade. The expansion of high-value sectors like electronics, pharmaceuticals, engineering goods, and agriculture, coupled with innovations in e-commerce and digital trade, showcases India’s growing global influence. Supported by initiatives such as the National Logistics Policy, Production-Linked Incentive schemes, and enhanced market access, India is well on its way to further diversifying its export landscape. As the country continues to focus on improving business ease, fostering competitiveness, and tapping into emerging markets, it is poised to not only sustain but also accelerate its export momentum in the years to come.

     

    References:

    1. https://static.pib.gov.in/WriteReadData/specificdocs/documents/2024/dec/doc2024123463101.pdf

    v https://www.commerce.gov.in/wp-content/uploads/2024/12/Annual-Report-English-Lower-Resolution-1.pdf

    1. https://www.commerce.gov.in/trade-statistics/
    2. https://niryat.gov.in/
    3. https://pib.gov.in/PressReleasePage.aspx?PRID=2093104

    Click here to download PDF

    ******

    Santosh Kumar/ Sarla Meena/ Saurabh Kalia

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  • MIL-OSI Asia-Pac: World Wetlands Day 2025, themed ‘Protecting Wetlands for our Common Future’, celebrated at Parvati Arga Ramsar Site, in Gonda, Uttar Pradesh

    Source: Government of India

    World Wetlands Day 2025, themed ‘Protecting Wetlands for our Common Future’, celebrated at Parvati Arga Ramsar Site, in Gonda, Uttar Pradesh

    The celebration of World Wetlands Day here will give Parvati Arga an international recognition: UP CM Yogi Adityanath

    A new nature-culture tourism corridor will be developed between Ayodhya and Devi Patan: MoS (MoEFCC) Shri Kirti Vardhan Singh

    Posted On: 02 FEB 2025 6:40PM by PIB Delhi

    It was a historic day for Gonda (Uttar Pradesh), as the Union Ministry of Environment, Forest and Climate Change (MoEFCC) organised the World Wetlands Day 2025 celebrations at the Parvati Arga Ramsar Site, on 2nd February, 2025. The event was inaugurated by the Chief Minister of Uttar Pradesh Yogi Adityanath and the Union Minister of State for Environment, Forest and Climate Change, Shri Kirti Vardhan Singh, in the presence of senior dignitaries from both the Union and State Governments.

    The event highlighted the critical role of wetlands in environmental conservation, biodiversity, and sustainable livelihoods, aligning with this year’s theme of ‘Protecting Wetlands for our Common Future’. This year’s theme underscores the need for collaboration and foresight, as it calls for valuing and protecting these richly biodiverse, productive ecosystems and taking inspiring action on their behalf – together, we can safeguard our common future and wellbeing.

    Addressing the event, UP CM Yogi Adityanath appreciated Shri Kirti Vardhan Singh’s dedicated efforts towards preservation and conservation of ecology of Gonda District, which is blessed with Parvati Arga Bird Sanctuary, and Tikri forest area. He mentioned that due to their proximity to Ayodhya, both the sites have the potential to be developed as eco-tourism hub attracting large number of tourists, providing an opportunity to them to connect to the nature. He also welcomed the initiative of linking the wetland with Sarayu canal for sustaining water flow in the wetland. He pointed out that Parvati Arga has long been known for its rich biodiversity, and now, it is gaining global recognition. Talking about the importance of Ramsar Sites in the country he explained the importance of migratory birds, which travel thousands of kilometers to Parvati Arga, playing a vital role in environmental balance.

    On the occasion of World Wetlands Day 2025, reaffirming Government’s commitment to protect Wetlands for the future, Union Minister for Environment, Forest and Climate Change, Shri Bhupender Yadav took to social media and expressed gratitude towards PM Shri Narendra Modi for his unprecedented emphasis on preserving wetlands. “It is because of this approach that our tally of Ramsar sites has reached 89. With a consistent rise in Ramsar sites, India is showing the commitment to both conserve and enrich nature”, the Minister stated.

    https://x.com/byadavbjp/status/1885951859904675897?t=_0eVPnMO1B6kGwIjN0C1og&s=08

    Addressing the august gathering in Gonda, Union Minister Shri Kirti Vardhan Singh emphasized that the comprehensive development of Parvati Arga is progressing under CM Yogi Adityanath’s leadership. He announced plans for a new nature-culture tourism corridor between Ayodhya and Devi Patan, which will boost employment opportunities. He highlighted the importance of Parvati Arga for aquatic ecosystems and biodiversity and explained that Indian culture has always valued nature conservation. He further mentioned that Gonda district with over 100 wetlands, has strong potential to be recognized as a ‘Wetland City’. He further mentioned that to promote eco-tourism, UP government is developing Tikri Jungle as an open safari zone, which will enhance tourism in the Awadh region.

    During the event the dignitaries on the dais launched four publications including the ‘Integrated Management Plan of Parvati Arga Ramsar Site’, ‘Factbook of India’s 85 Ramsar Sites’, ‘Development of Van Taungya Villages’. The Integrated Management Plan of Parvati Arga Ramsar Site outlines a comprehensive strategy for biodiversity conservation, sustainable wetland management, and community engagement, ensuring an adaptive management approach for wise use of the wetland. The ‘Factbook of India’s 85 Ramsar Sites’ provides information on the values, benefits and threats of 85 Ramsar Sites of India including information about the species of conservation significance.

    During the event, a Memorandum of Understanding (MoU) was signed with Amazon and ARGA, an initiative of the Government of Uttar Pradesh, to empower women entrepreneurs in and around Gonda district. As part of the MoU, Amazon will support women-led businesses associated with ARGA through its Saheli program. This includes providing training in digital and performance marketing, product listing optimization, and advertising methods. Women entrepreneurs from the region will also gain access to data-driven insights and metrics to better understand customer expectations and market opportunities. The dignitaries also launched a video on the World Wetlands Day with a call to save the unique ecosystems, the Amrit Dharohars (https://www.youtube.com/watch?v=rJ1dm7FRoPQ)

    The winners of the Painting, Quiz and Nukkad Natak competitions on the theme of ‘Protecting wetlands for our common future’ were also felicitated. The winning team of the Nukkad Natak competition, AP Inter College, Mankapur, Gonda, Uttar Pradesh, performed their skit in front of the dignitaries. The Ramsar Site managers of the newly designated four Ramsar Sites of India namely, Udhwa Lake in Jharkhand, Theerthangal and Sakkarakottai in Tamil Nadu and Khecheopalri in Sikkim were also congratulated and were presented with the Ramsar certificates of these sites.

    The event kicked-off with the inauguration of an exhibition by Chief Minister Yogi Adityanath and Shri Kirti Vardhan Singh. The exhibition saw participation from over 25 exhibitors representing different States, technical organisations, Government departments. The exhibition included stalls focusing on water hyacinth and bamboo-based products, Mission LiFE, Green Skill Development Programme by the Government, EIACP centres and wetland conservation efforts in India by MoEFCC and knowledge partners. It also showcased the outreach activities conducted by the National Museum of Natural History (NMNH) under the ‘Save Wetlands Campaign’. To showcase the efforts of young minds the winning paintings of the Nation-wide painting competition were also exhibited.

    Regional Workshop for Northern States:
    On the eve of World Wetlands Day, on 1st February, 2025, the Ministry organized a regional workshop for Northern states, with participation from nine States and Union Territories. The workshop brought together knowledge partners and private sector organizations. This was the fourth regional Sahbhagita workshop of 2024-25, after Hyderabad, Kolkata, and Gangtok. The workshop served as a platform to enhance collaborative efforts and highlight innovative approaches to wetland conservation and management. (Press Release: https://pib.gov.in/PressReleasePage.aspx?PRID=2098813 )

    About World Wetlands Day (WWD):
    World Wetlands Day is observed on 2nd February every year worldwide to commemorate the signing of the Ramsar Convention on Wetlands of International Importance in 1971. India is a party to the Convention since 1982. India has recently increased its tally of Ramsar sites (Wetlands of International Importance) to 89 by designating four more wetlands as Ramsar sites. Udhwa Lake in Jharkhand, Theerthangal and Sakkarakottai in Tamil Nadu and Khecheopalri in Sikkim. These are the first Ramsar Sites of Sikkim and Jharkhand. With the addition of these wetlands to List of Wetlands of International Importance, the total area covered under Ramsar sites is now 1.358 million ha. Tamil Nadu continues to have maximum number of Ramsar Sites (20 sites) followed by Uttar Pradesh (10 sites).

    About Amrit Dharohar initiative:
    Amrit Dharohar initiative, part of the 2023-24 budget announcement, was launched by MoEFCC during June 2023 to promote unique conservation values of the Ramsar Sites in the country while generating employment opportunities and supporting local livelihoods. This initiative is to be implemented over three years in convergence with various Central Government ministries and agencies, State Wetland Authorities, and a network of formal and informal institutions and individuals, working together for a common cause. The initiative focuses on four key components, Species and Habitat Conservation, Nature Tourism, Wetlands Livelihood and Wetlands Carbon.

    *****

    VM

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    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: HKETO, Brussels supports Hong Kong comics industry at Angoulême International Comics Festival (with photos)

    Source: Hong Kong Government special administrative region

    HKETO, Brussels supports Hong Kong comics industry at Angoulême International Comics Festival (with photos)
    HKETO, Brussels supports Hong Kong comics industry at Angoulême International Comics Festival (with photos)
    ******************************************************************************************

         The Hong Kong Economic and Trade Office in Brussels (HKETO, Brussels) is supporting the participation of Hong Kong’s comics industry in the 52nd Angoulême International Comics Festival, being held in France from January 29 to February 2 (Angoulême time).     A Hong Kong pavilion has been set up at the festival, showcasing 38 outstanding works by Hong Kong comic artists. Drawing demonstrations, talks and networking events have been organised to showcase the creativity of the participating artists and to connect Hong Kong talent with international publishers and industry professionals.     Speaking at a networking reception on February 1, Deputy Representative of HKETO, Brussels Miss Grace Li reaffirmed the Hong Kong Special Administrative Region Government’s commitment to nurturing the comics and animation sectors. She also emphasised Hong Kong’s robust and effective system of intellectual property protection, which plays a pivotal role in maintaining the city’s status as a thriving hub of creativity and innovation.     The Angoulême International Comics Festival, founded in 1974, is one of Europe’s best-known comic festivals. Hong Kong’s participation was supported by HKETO Brussels in collaboration with Comix Home Base, which is curated by the Hong Kong Arts Centre, and the Hong Kong Comics and Animation Federation.

     
    Ends/Sunday, February 2, 2025Issued at HKT 20:30

    NNNN

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: Budget announces Rs. 5272 crores for the Ministry of Textiles for the FY 2025-26

    Source: Government of India

     Budget announces Rs. 5272 crores for the Ministry of Textiles for the FY 2025-26

    Five year Cotton Mission to increase cotton productivity included in the Budget

    Budget adds 2 types of shuttle-less looms to the list of fully exempted textile machinery

    Budget announces reduction in Basic Custom Duty of knitted fabrics

    Nine items including wool polish materials, Sea shell, Mother of Pearl (MOP), Cattle horn etc. added to the list of duty-free inputs

    Posted On: 01 FEB 2025 8:11PM by PIB Delhi

    The Union Budget 2025-26 was presented by the Union Finance Minister on February 1, 2025. The Budget announced an outlay of Rs. 5272 crores (Budget Estimates) for the Ministry of Textiles for 2025-26. This is an increase of 19 percent over budget estimates of 2024-25 (Rs. 4417.03 crore).

    To address the challenges of stagnant cotton productivity, Union Budget 2025-26 has announced a five year Cotton Mission to increase cotton productivity especially extra long staple varieties. Science & Technology support will be provided to farmers under this Mission. The Mission is in keeping with the 5 F principle and will increase income of the farmers and augment a steady supply of quality cotton. By boosting domestic productivity, this initiative will stabilise raw material availability, reduce import dependence and enhance the global competitiveness of India’s textile sector, where 80% of capacity is driven by MSMEs.

    To promote domestic production of technical textile products such as agro-textiles, medical textiles and geo textiles at competitive prices, two more types of shuttle-less looms added to the list of fully exempted textile machinery.  Duty on Shuttle less loom Rapier Looms (below 650 meters per minute) and Shuttle less loom Air jet Looms (below 1000 meters per minute) for use in textile industry has been made nil from the existing 7.5%. This provision will reduce the cost of high-quality imported looms thus facilitating modernisation and capacity enhancement initiatives in the weaving sector. This will also will boost Make in India in technical textile sector viz. agro textiles, medical textiles, and geo-textiles.

    Basic Custom Duty rate on knitted fabrics covered by nine tariff lines reduced from “10% or 20%” to “20% or Rs.115 per kg, whichever is higher” This will improve competitiveness of Indian knitted fabric manufacturers and curb cheap imports.

    To facilitate exports of handicrafts, time period for export extended from six months to one year, further extendable by another three months, if required Handicraft exports will benefit from this provision extending the list of items and the time period for conversion of duty free raw material imports meant for export production. Nine items including wool polish materials, Sea shell, Mother of Pearl (MOP), Cattle horn etc. added to the list of duty-free inputs.

    80% of India’s textile sector is in MSME. Budget thrust on export, enhanced credit and coverage will uplift textile MSMEs. Other announcements like creation of National Manufacturing Mission, Export Promotion Mission, creating the Bharat Trade Net, Fund of Funds, Measures for Labour-Intensive Sectors to promote employment and entrepreneurship opportunities, revision in classification criteria for MSMEs and others will create conducive environment for the textile sector.

    ****

    Dhanya Sanal K

    Director (M&C)

     

    (Release ID: 2098773) Visitor Counter : 721

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: Budget announced Rs. 5272 crores for the Ministry of Textiles for the FY 2025-26

    Source: Government of India (2)

     Budget announced Rs. 5272 crores for the Ministry of Textiles for the FY 2025-26

    Five year Cotton Mission to increase cotton productivity included in the Budget

    Budget adds 2 types of shuttle-less looms to the list of fully exempted textile machinery

    Budget announces reduction in Basic Custom Duty of knitted fabrics

    Nine items including wool polish materials, Sea shell, Mother of Pearl (MOP), Cattle horn etc. added to the list of duty-free inputs

    Posted On: 01 FEB 2025 8:11PM by PIB Delhi

    The Union Budget 2025-26 was presented by the Union Finance Minister on February 1, 2025. The Budget announced an outlay of Rs. 5272 crores (Budget Estimates) for the Ministry of Textiles for 2025-26. This is an increase of 19 percent over budget estimates of 2024-25 (Rs. 4417.03 crore).

    To address the challenges of stagnant cotton productivity, Union Budget 2025-26 has announced a five year Cotton Mission to increase cotton productivity especially extra long staple varieties. Science & Technology support will be provided to farmers under this Mission. The Mission is in keeping with the 5 F principle and will increase income of the farmers and augment a steady supply of quality cotton. By boosting domestic productivity, this initiative will stabilise raw material availability, reduce import dependence and enhance the global competitiveness of India’s textile sector, where 80% of capacity is driven by MSMEs.

    To promote domestic production of technical textile products such as agro-textiles, medical textiles and geo textiles at competitive prices, two more types of shuttle-less looms added to the list of fully exempted textile machinery.  Duty on Shuttle less loom Rapier Looms (below 650 meters per minute) and Shuttle less loom Air jet Looms (below 1000 meters per minute) for use in textile industry has been made nil from the existing 7.5%. This provision will reduce the cost of high-quality imported looms thus facilitating modernisation and capacity enhancement initiatives in the weaving sector. This will also will boost Make in India in technical textile sector viz. agro textiles, medical textiles, and geo-textiles.

    Basic Custom Duty rate on knitted fabrics covered by nine tariff lines reduced from “10% or 20%” to “20% or Rs.115 per kg, whichever is higher” This will improve competitiveness of Indian knitted fabric manufacturers and curb cheap imports.

    To facilitate exports of handicrafts, time period for export extended from six months to one year, further extendable by another three months, if required Handicraft exports will benefit from this provision extending the list of items and the time period for conversion of duty free raw material imports meant for export production. Nine items including wool polish materials, Sea shell, Mother of Pearl (MOP), Cattle horn etc. added to the list of duty-free inputs.

    80% of India’s textile sector is in MSME. Budget thrust on export, enhanced credit and coverage will uplift textile MSMEs. Other announcements like creation of National Manufacturing Mission, Export Promotion Mission, creating the Bharat Trade Net, Fund of Funds, Measures for Labour-Intensive Sectors to promote employment and entrepreneurship opportunities, revision in classification criteria for MSMEs and others will create conducive environment for the textile sector.

    ****

    Dhanya Sanal K

    Director (M&C)

     

    (Release ID: 2098773) Visitor Counter : 47

    MIL OSI Asia Pacific News

  • MIL-OSI China: China’s annual trade in services exceeds 1 trillion USD, boasting significant potential

    Source: People’s Republic of China – State Council News

    China’s annual trade in services exceeds 1 trillion USD, boasting significant potential

    BEIJING, Feb. 3 — China’s annual trade in services exceeded 1 trillion U.S. dollars for the first time last year, demonstrating significant potential for further growth.

    China’s services import and export value amounted to a record-high of 7.5 trillion yuan (about 1.05 trillion U.S. dollars) in 2024, expanding 14.4 percent year on year, according to the latest data from the Ministry of Commerce (MOC).

    Exports grew 18.2 percent year on year and imports grew 11.8 percent, according to the MOC.

    Driven by the global trends of digitization, smart technology advancement and green development, China’s trade in services grew in scale, its structure was optimized further and its international competitiveness was enhanced in 2024, said Li Jun, a researcher at the Chinese Academy of International Trade and Economic Cooperation under the MOC.

    He noted that the comprehensive relaxation and optimization of China’s visa-free transit policy has played a role in boosting inbound tourism over the last year.

    The broadly welcomed new policy has sparked the rise of “China Travel,” a popular hashtag on social media where many travelers share their experiences in China, with increasing numbers of international tourists being drawn by the country’s cultural landmarks, nature and city walks.

    “‘China Travel’ is booming rapidly, and this growth is expected to boost the country’s services trade further, while helping to drive the global travel industry toward continued recovery and prosperity,” Li said.

    China’s digital cultural platforms and content have been gaining significant traction overseas, Li said, noting the popularity of Chinese video game “Black Myth: Wukong,” the distribution of high-quality Chinese films and TV dramas on overseas streaming platforms such as Netflix and YouTube, and the fact that Chinese internet literature is influencing an increasing number of international readers.

    The Chinese government released a guideline on promoting the high-quality development of trade in services through high-standard opening-up in August last year.

    The document offered robust policy support for the development of China’s services trade, Li said, calling for more efforts to advance opening-up, innovation and international cooperation in the sector.

    Noting that China established a nationwide negative list management system for cross-border trade in services last year, Li suggested that the level of institutional opening-up should be improved continuously, that the negative list should be shortened gradually as appropriate, and that high-standard international economic and trade rules should be aligned with actively.

    He urged launching the construction of national demonstration zones for the innovative development of trade in services as soon as possible.

    To facilitate innovation, Li called for the potential of industrial digitization and digital transformation to be unlocked, for support for the professional organizations offering services in finance, consulting, design and certification to enhance their ability to provide international services, and for the accelerated development of green services.

    Bilateral, multilateral and regional collaboration in digital trade and trade in services should be expanded, Li said, suggesting that the role of major exhibition platforms should continue to be leveraged, and that international services trade cooperation parks should be developed.

    MIL OSI China News

  • MIL-OSI New Zealand: Legal action dropped over ETS Foresty Registry 

    Source: New Zealand Government

    Minister of Forestry Todd McClay has welcomed a decision by forestry sector representatives to drop Judicial Review proceedings related to the Emissions Trading Scheme (ETS) fees.

    “The Judicial Review was initiated in response to the excessive fees imposed on the forestry sector by the previous Government,” Mr McClay says. 

    “The previous Labour government made a number of decisions that drove up the cost of ETS Registry and they expected the forestry sector to blindly pay for their mistakes.

    “The National-led coalition Government has worked hard to rebuild confidence in the forestry sector over the past 12 months. 

    “We have been working collaboratively with the sector to ensure we get the settings right to restore trust to the over 4,300 forestry participants in the ETS registry. 

    “Last year we announced that the cost of participating in the ETS registry would be reduced by 50 per cent for forest owners, and the formation of a Forestry Sector Reference Group to find more cost savings over the next year. 

    “This Government backs forestry, it will continue to play a key role in achieving our ambitious target of doubling exports by value in 10 years and helping New Zealand meet its climate change obligations,” Mr McClay says.

    MIL OSI New Zealand News

  • MIL-OSI Economics: ACP Statement on Tariffs on U.S. Imports from Canada, Mexico, and China

    Source: American Clean Power Association (ACP)

    Headline: ACP Statement on Tariffs on U.S. Imports from Canada, Mexico, and China

    WASHINGTON DC, February 2, 2025 – The American Clean Power Association (ACP) released the following statement from Jason Grumet, ACP CEO following the announcement of tariffs on U.S. imports from Canada, Mexico, and China:
    “ACP and its member companies share the Trump Administration’s concern over the fentanyl crisis and public health emergency impacting our communities. ACP recognizes and appreciates the Administration’s early focus on this crisis.
    “ACP also supports the Administration’s commitment to lower American energy prices.  While energy production only represents 5% of our nation’s direct GDP, it drives the productivity of our entire economy, impacting prices of nearly all consumer goods.  In concert with the other trade associations representing America’s energy resources, ACP is concerned that increasing the costs of energy production inputs will put upward pressure on consumer energy costs and diminish our capacity to unleash energy abundance.
    “While the fuel relied upon by wind and solar energy—complemented by battery storage—is free, some parts for these machines that harness these renewable resources are manufactured in Canada and Mexico. As we have made significant progress manufacturing these components in the United States, the benefits of USMCA have been a positive factor in lowering American energy costs. We look forward to working with the Administration as it pursues multiple imperatives.”

    MIL OSI Economics

  • MIL-OSI USA: Kaine Statement on President Trump’s Executive Orders to Unleash Senseless Trade Wars

    US Senate News:

    Source: United States Senator for Virginia Tim Kaine

    WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine (D-VA) released the following statement after President Donald Trump signed executive orders to impose a new 25 percent tax on goods from Canada and Mexico, and a new 10 percent tax on goods from China:

    “Virginians want lower prices, not higher ones, and the last thing we need are new, senseless taxes on imports from America’s three largest trading partners. During President Trump’s first term, his trade wars hit Virginia hard. Our farmers and foresters were especially affected, but everyone suffered. Everyone, that is, except for Trump’s cronies—billionaires, bitcoin bros, and offshore bandits. Here we go again.”

    Kaine is committed to protecting Virginia families from price hikes imposed by tariffs. Yesterday, he introduced the Stopping Tariffs on Allies and Bolstering Legislative Exercise of (STABLE) Trade Policy Act to rein in chaos that Trump could create by unilaterally imposing tariffs on allies and nations with a congressionally-approved trade agreement. Last week, he introduced the Protecting Americans from Tax Hikes on Imported Goods Act to shield American families and businesses from increased costs by limiting the president’s authority to impose unlimited tariffs under the International Emergency Economic Powers Act (IEEPA), a law never intended to be used for tariffs.

    MIL OSI USA News

  • MIL-OSI USA: Governor Shapiro Unveils

    Source: US State of Pennsylvania

    January 30, 2025Pittsburgh, PA

    Governor Shapiro Unveils “Lightning Plan” to Strengthen Commonwealth’s Energy Leadership, Create Jobs, and Lower Costs for Consumers

    Governor Josh Shapiro visited Pittsburgh International Airport to announce the “Lightning Plan” – a comprehensive, all-of-the-above energy plan to secure Pennsylvania’s energy future. Supported by labor and industry leaders, environmental advocates, and consumer groups, Governor Shapiro‘s commonsense energy plan will create jobs, lower costs for consumers, protect Pennsylvania from global instability by building next generation power, and position the Commonwealth to continue to be a national energy leader for decades to come.

    The Governor made this announcement at Pittsburgh International Airport, the site of a groundbreaking $1.5 billion proposed partnership between KeyState Energy and CNX Resources. This type of project, aimed at accelerating hydrogen and sustainable aviation fuel (SAF) production, could position the region as a hub for next-generation energy solutions while supporting 3,000 construction jobs. This project is a prime example of the type of innovation the Lightning Plan will drive all across the Commonwealth.

    “Pennsylvania has long been a national energy leader, from Ben Franklin to today, but right now, we’re letting other states outcompete us and we’re losing out on jobs, new investment, and innovation – that has to change,” said Governor Shapiro. “My energy plan will power Pennsylvania forward by incentivizing the building of next generation energy projects in the Commonwealth. We have to meet this moment – and this plan builds on the work my Administration did last year to bring together leaders from the energy industry, organized labor and environmental groups, and consumer advocates to develop a plan for the future. I look forward to working with the General Assembly to get this commonsense plan to my desk so that we can lower costs for consumers, create more jobs, and position the Commonwealth to continue to be a national energy leader for decades to come.”

    Speaker list:
    Christina Cassotis, CEO, Allegheny County Airport Authority
    Governor Josh Shapiro
    Congressman Chris Deluzio
    Gregory Bernarding, Business Manager, Pittsburgh Regional Building and Construction Trades Council
    Lt. Governor Austin Davis
    Stefani Pashman, CEO, Allegheny Conference on Community Development
    David Dardis, Executive Vice President, Constellation Energy
    Representative Rob Matzie
    Jackson Morris, Director of State Power Sector Policy, Climate & Energy, Natural Resources Defense Council

    MIL OSI USA News

  • MIL-OSI Global: Canada-U.S. tariff war: How it will impact different products and industries

    Source: The Conversation – Canada – By Sylvanus Kwaku Afesorgbor, Associate Professor of Agri-Food Trade and Policy, University of Guelph

    U.S. President Donald Trump has imposed a 25 per cent tariff on most Canadian goods. A senior governmental official said they are expected to come into effect on Feb. 4.

    This tariff will have significant economic consequences on both sides of the border, as the U.S. and Canada share one of the largest bilateral trade relationships in the world.

    A key concern is the highly integrated supply chains between the two countries. Many goods cross the border multiple times as intermediate inputs before becoming final products. Imposing tariffs at any point in this supply chain will raise production costs and increase prices for a wide range of goods traded between the U.S. and Canada.

    For Canada, the tariffs on Canadian products will significantly affect Canada’s competitiveness in the U.S. market by driving up prices. Such tariffs could pose serious challenges for various sectors in Canada, given the country’s heavy reliance on the U.S. economy.

    Effects on different sectors

    The impact of U.S. tariffs on Canadian prices is likely to differ across sectors and products, depending on their reliance on the U.S. market.

    Sectors with a higher dependence on U.S. trade are likely to experience more severe disruptions. If the tariffs make certain products uncompetitive, Canadian producers may struggle to secure alternative markets in the short term.

    Industries such as agriculture, manufacturing and energy will experience varying degrees of impact. Energy products and motor vehicles, which represent Canada’s largest exports to the U.S., are expected to be among the most adversely affected.

    In the agricultural and forestry sector, wood and paper products, along with cereals, are among Canada’s largest exports to the U.S., with the U.S. accounting for 86 to 96 per cent of these exports, according to data from the World Integrated Trade Solution.

    In the energy and mineral sector, crude oil is Canada’s top export, reaching US$143 billion in 2023, with 90 per cent destined for the U.S. Given its critical role as Canada’s largest export across all sectors, it is not surprising that Trump has noted crude oil would subject to a lower tariff of 10 per cent.

    Canada’s dependence on U.S. trade

    When examining the impact on different products, it’s not only the value of trade that matters, but also the share of trade. The share of trade indicates how reliant Canada is on the U.S. compared to other markets.

    A high trade share with the U.S. suggests a product is particularly vulnerable to trade disruptions, as Canada depends heavily on the U.S. market for that product. Conversely, a lower share indicates that Canada has diversified suppliers, which reduces its dependence on the U.S.




    Read more:
    Trump’s tariff threat could shake North American trade relations and upend agri-food trade


    For instance, in 2023, Canada’s top exports to the U.S. included vehicles and parts, nuclear machinery and plastics, according to data from the World Integrated Trade Solution. The U.S. accounted for 93 per cent of vehicle and parts exports, 82 per cent of nuclear machinery exports, and 91 per cent of plastics exports.

    This data highlights Canada’s extreme dependence on the U.S. market, making these industries within the manufacturing sector highly susceptible to the tariff. This could harm jobs in the manufacturing sector, which is vital to employment in Canada, providing jobs for over 1.8 million people.

    Canada’s reliance on the U.S. is also evident in imports. In 2023, vehicle imports totalled US$92 billion, with the U.S. accounting for 58 per cent of that amount.

    The dependence is also evident in the agri-food and forestry sector, where Canada heavily relies on U.S. imports. This suggests that retaliatory tariffs on agricultural goods from the U.S. could have a substantial impact on food prices in Canada.

    Retaliatory tariffs and inflationary pressures

    Canada has announced it’s imposing $155 billion of retaliatory tariffs on U.S. imports in response. This could contribute to inflationary pressures within Canada.

    Prime Minister Justin Trudeau says this includes immediate tariffs on $30 billion worth of goods as of Tuesday, followed by further tariffs on $125 billion worth of American products in 21 days’ time to “allow Canadian companies and supply chains to seek to find alternatives.”

    This will include tariffs on “everyday items such as American beer, wine and bourbon, fruits and fruit juices, including orange juice, along with vegetables, perfume, clothing and shoes,” and also on major consumer products like household appliances, furniture and sports equipment, and materials like lumber and plastics.

    Given Canada’s significant dependence on U.S. imports, the retaliatory tariffs will raise the cost of American goods entering the country, further driving up consumer prices and exacerbating inflation.

    In its latest policy rate announcement, the Bank of Canada warned of the severe economic consequences of Trump’s tariffs, highlighting their potential to reverse the current downward trend in inflation.

    What should Canada do now?

    Canada must extend its economic diplomacy efforts beyond the Trump administration, engaging with the U.S. Congress and Senate to advocate for the reconsideration of tariffs on Canadian goods. The Canadian government should persist in leveraging this channel to push for a reversal of the tariffs. This kind of broader negotiation remains the most effective approach to mitigating trade tensions and ensuring stable economic relations with the U.S.

    At the same time, Canada must reduce dependence on the U.S. market by adopting a comprehensive export diversification strategy. While the U.S. remains a convenient and accessible trade partner, expanding into emerging and developing markets would help mitigate risks and create more stable long-term trade opportunities.




    Read more:
    Trump’s tariff threat is a sign that Canada should be diversifying beyond the U.S.


    One effective way to achieve export diversification is by expanding free trade agreements (FTAs) with emerging and developing economies. Currently, Canada has 15 FTAs covering about 51 countries, but there is room for expansion. However, signing FTAs alone is insufficient; Canada must ensure these agreements translate into tangible trade growth with partner countries.

    International politics is increasingly shaping global trade, making it imperative for Canada to proactively manage diplomatic and trade relations. In recent years, tensions have emerged with key partners such as China, India and Saudi Arabia. These countries could all become potential markets for Canadian products. Given that China is Canada’s second-largest export destination, there is significant potential to expand trade ties.

    Additionally, countries like the United Arab Emirates present promising markets, particularly for agricultural products, as the UAE imports about 90 per cent of its food.

    Boosting innovation and productivity

    Canada stands at a critical juncture in its trade relationship with the U.S. While diplomatic efforts remain essential to averting harmful tariffs, they cannot be the country’s only line of defence.

    Boosting productivity is one of the most effective ways for Canada to improve its competitiveness in global markets. Canadian producers should prioritize innovation and the adoption of advanced technologies to enhance efficiency and maintain a competitive edge, particularly as they seek to expand beyond the U.S.

    In response to potential U.S. tariffs, the Canadian government should implement a bailout strategy to provide short-term relief and mitigate revenue losses to firms that will be mostly affected. Additionally, Canada should leverage its embassies and consulates worldwide to promote exports and help affected firms identify and access new market opportunities.

    By doing this, Canada can position itself as a more self-reliant and competitive player in the global economy — one less vulnerable to shifting U.S. policies.

    Sylvanus Kwaku Afesorgbor receives funding from the OMAFRA and the USDA. He is affiliated with the Centre for Trade Analysis and Development (CeTAD Africa).

    Naduni Uduwe Welage and Promesse Essolema do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    ref. Canada-U.S. tariff war: How it will impact different products and industries – https://theconversation.com/canada-u-s-tariff-war-how-it-will-impact-different-products-and-industries-248824

    MIL OSI – Global Reports

  • MIL-OSI USA: Baldwin Slams Trump’s Tariffs for Raising Prices on Families, and Hurting Farmers and Manufacturers

    US Senate News:

    Source: United States Senator for Wisconsin Tammy Baldwin
    Published: 02.01.2025
    Baldwin: “Families across the country are going to be paying more out of their wallets from the gas pump and the grocery store – and it will only get worse when retaliation hits”

    WASHINGTON, D.C. – Today, U.S. Senator Tammy Baldwin (D-WI) released the following statement on President Donald Trump’s announcement of across-the-board 25% tariffs on imports from Canada and Mexico and a 10% additional tariff on imports from China.
    “When it comes to the high-level goals of tackling the fentanyl epidemic and securing our border, President Trump and I agree. We have to do both. Tariffs are an important tool to crack down on other countries’ unfair practices, and one I have long supported using. But the tariffs the President announced today will force Wisconsin families to pay the price. Industries where people grow things and make things – like Wisconsin’s iconic farming and manufacturing sectors – are going to be crushed by this. Families across the country are going to be paying more out of their wallets from the gas pump and the grocery store – and it will only get worse when retaliation hits. If President Trump is going to impose these broad tariffs on our closest trading partners, he needs to do it with a real plan to address retaliation and make sure costs aren’t passed on to hardworking Wisconsinites – but right now, none of those are in place and it’s Wisconsinites and our economy that will suffer the consequences.”
    Senator Baldwin has long worked to crack down on other countries exploiting trade loopholes that undermine our manufacturers, farmers, and producers, and also bring illicit drugs like fentanyl into the United States. Last year, Senator Baldwin led her colleagues in calling on the Biden Administration to support a group of families’ petition under Section 301 of the Trade Act of 1974 to hold China accountable for its role in actively supporting the production and export of fentanyl into the United States. Senator Baldwin also led her colleagues in support of the United Steelworkers Section 301 petition to launch an investigation into China’s unfair trade practices in the commercial shipbuilding industry that undermine American workers and jeopardize our national security.

    MIL OSI USA News

  • MIL-OSI United Nations: UNECE/EFTA Workshop on Modernizing Statistical Legislation

    Source: United Nations Economic Commission for Europe

    The workshop will provide a platform for sharing experience in modernizing legal and institutional frameworks of official statistics and discussing emerging issues posing legal challenges to national statistical systems. The target audience for the meeting will be experts from national statistical offices and international organizations interested in strengthening the legal framework of official statistics and legal aspects of data access, governance, and stewardship.

    The workshop will be organized by the Steering Group on Statistical Legislation, including Albania, Armenia, Greece, Ireland, Latvia, Norway, Poland, Spain, the United Kingdom, EFTA, Eurostat, the Organisation for Economic Co-operation and Development (OECD), the United Nations Statistics Division (UNSD) and UNECE, with support of EFTA and hosted by the Institute of Statistics of Albania (INSTAT).

    Papers and presentations are available under each session heading below. 

    GET TO KNOW THE SPEAKERS

    MIL OSI United Nations News

  • MIL-OSI China: China firmly opposes US tariff move, vows countermeasures to safeguard interests

    Source: China State Council Information Office

    China is strongly dissatisfied with and firmly opposes the U.S. decision to impose an additional 10-percent tariff on goods imported from China, the Ministry of Commerce (MOC) said Sunday.

    In response to the erroneous action by the United States, China will file a lawsuit with the World Trade Organization and take corresponding countermeasures to firmly safeguard its rights and interests, an MOC spokesperson said in a statement. 

    MIL OSI China News

  • MIL-OSI China: China warns Japan chip curbs would threaten supply chains

    Source: China State Council Information Office

    The Ministry of Commerce said Japan’s plans for export controls on semiconductors will undermine the stability of the global industrial and supply chains as well as disrupt normal business operations.

    “For some time, certain countries have been stretching the concept of national security and abusing export control measures to impose sanctions aimed at suppressing China’s semiconductor and other industries,” a spokesperson with the Ministry of Commerce said on Friday.

    The spokesperson highlighted that Japan’s plans for export controls on chips will also harm the interests of both Chinese and Japanese companies.

    According to the MOC spokesperson, China urges Japan to listen to the rational voices of industry stakeholders and reconsider its course of action. “We hope Japan will take into account the broader picture of international trade rules and China-Japan economic cooperation, and promptly correct these measures to avoid hindering the healthy development of bilateral economic relations.”

    As Japan has announced tech and trade curbs including sanctions on some Chinese firms, China made it clear that it reserves the right to take countermeasures to safeguard its legitimate rights and interests, the spokesperson said. China also reaffirmed its stance on ensuring the smooth functioning of global industrial and supply chains.

    Jin Xu, chairman of the China Association of International Trade, said some countries’ efforts to “decouple and sever industrial and supply chains” and build “small yards with high fences” will not benefit the local people and will ultimately harm local businesses.

    China, with its robust technological capabilities, solid industrial foundation, and strong government support, is well-positioned to overcome any technological blockades, Jin said.

    “I firmly believe China will make breakthroughs in the fields of chips. I am convinced that the suppression by some countries will not last,” he said.

    MIL OSI China News

  • MIL-OSI USA News: Imposing Duties to Address the Flow of Illicit Drugs Across Our National Border

    Source: The White House

         By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.) (NEA), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code,

    I, DONALD J. TRUMP, President of the United States of America, find that the sustained influx of illicit opioids and other drugs has profound consequences on our Nation, endangering lives and putting a severe strain on our healthcare system, public services, and communities.

    This challenge threatens the fabric of our society.  Gang members, smugglers, human traffickers, and illicit drugs of all kinds have poured across our borders and into our communities.  Canada has played a central role in these challenges, including by failing to devote sufficient attention and resources or meaningfully coordinate with United States law enforcement partners to effectively stem the tide of illicit drugs.

    Drug trafficking organizations (DTOs) are the world’s leading producers of fentanyl, methamphetamine, cocaine, and other illicit drugs, and they cultivate, process, and distribute massive quantities of narcotics that fuel addiction and violence in communities across the United States.  These DTOs often collaborate with transnational cartels to smuggle illicit drugs into the United States, utilizing clandestine airstrips, maritime routes, and overland corridors. 

    The challenges at our southern border are foremost in the public consciousness, but our northern border is not exempt from these issues.  Criminal networks are implicated in human trafficking and smuggling operations, enabling unvetted illegal migration across our northern border.  There is also a growing presence of Mexican cartels operating fentanyl and nitazene synthesis labs in Canada.  The flow of illicit drugs like fentanyl to the United States through both illicit distribution networks and international mail — due, in the case of the latter, to the existing administrative exemption from duty and taxes, also known as de minimis, under section 1321 of title 19, United States Code — has created a public health crisis in the United States, as outlined in the Presidential Memorandum of January 20, 2025 (America First Trade Policy) and Executive Order 14157 of January 20, 2025 (Designating Cartels and Other Organizations as Foreign Terrorist Organizations and Specially Designated Global Terrorists).  With respect to smuggling of illicit drugs across our northern border, Canada’s Financial Transactions and Reports Analysis Centre recently published a study on the laundering of proceeds of illicit synthetic opioids, which recognized Canada’s heightened domestic production of fentanyl, largely from British Columbia, and its growing footprint within international narcotics distribution.  Despite a North American dialogue on the public health impacts of illicit drugs since 2016, Canadian officials have acknowledged that the problem has only grown.  And while U.S. Customs and Border Protection (CBP) within the Department of Homeland Security seized, comparatively, much less fentanyl from Canada than from Mexico last year, fentanyl is so potent that even a very small parcel of the drug can cause many deaths and destruction to America families.  In fact, the amount of fentanyl that crossed the northern border last year could kill 9.5 million Americans.

    Immediate action is required to finally end this public health crisis and national emergency, which will not happen unless the compliance and cooperation of Canada is assured.

    I hereby determine and order:

         Section 1.  (a)  As President of the United States, my highest duty is the defense of the country and its citizens.  A Nation without borders is not a nation at all.  I will not stand by and allow our sovereignty to be eroded, our laws to be trampled, our citizens to be endangered, or our borders to be disrespected anymore.

    I previously declared a national emergency with respect to the grave threat to the United States posed by the influx of illegal aliens and illicit drugs into the United States in Proclamation 10886 of January 20, 2025 (Declaring a National Emergency at the Southern Border).  Pursuant to the NEA, I hereby expand the scope of the national emergency declared in that Proclamation to cover the threat to the safety and security of Americans, including the public health crisis of deaths due to the use of fentanyl and other illicit drugs, and the failure of Canada to do more to arrest, seize, detain, or otherwise intercept DTOs, other drug and human traffickers, criminals at large, and drugs.  In addition, this failure to act on the part of Canada constitutes an unusual and extraordinary threat, which has its source in substantial part outside the United States, to the national security and foreign policy of the United States.  I hereby declare and reiterate a national emergency under the NEA and IEEPA to deal with that threat.  This national emergency requires decisive and immediate action, and I have decided to impose, consistent with law, ad valorem tariffs on articles that are products of Canada set forth in this order.  In doing so, I invoke my authority under section 1702(a)(1)(B) of IEEPA and specifically find that action under other authority to impose tariffs is inadequate to address this unusual and extraordinary threat.

         Sec. 2.  (a)  All articles that are products of Canada as defined by the Federal Register notice described in subsection (e) of this section (Federal Register notice), and except for those products described in subsection (b) of this section, shall be, consistent with law, subject to an additional 25 percent ad valorem rate of duty.  Such rate of duty shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on February 4, 2025, except that goods entered for consumption, or withdrawn from warehouse for consumption, after such time that were loaded onto a vessel at the port of loading or in transit on the final mode of transport prior to entry into the United States before 12:01 a.m. eastern time on February 1, 2025, shall not be subject to such additional duty, only if the importer certifies to CBP as specified in the Federal Register notice. 

    (b)  With respect to energy or energy resources, as defined in section 8 of Executive Order 14156 of January 20, 2025 (Declaring a National Energy Emergency), and as otherwise included in the Federal Register notice, such articles that are products of Canada as defined by the Federal Register notice shall be, consistent with law, subject to an additional 10 percent ad valorem rate of duty.  Such rate of duty shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on February 4, 2025, except that goods entered for consumption, or withdrawn from warehouse for consumption, after such time that were loaded onto a vessel at the port of loading or in transit on the final mode of transport prior to entry into the United States before 12:01 a.m. eastern time on February 1, 2025, shall not be subject to such additional duty, only if the importer certifies to CBP as specified in the Federal Register notice.  

    (c)  The rates of duty established by this order are in addition to any other duties, fees, exactions, or charges applicable to such imported articles. 

    (d)  Should Canada retaliate against the United States in response to this action through import duties on United States exports to Canada or similar measures, the President may increase or expand in scope the duties imposed under this order to ensure the efficacy of this action.

    (e)  In order to establish the duty rate on imports of articles that are products of Canada, the Secretary of Homeland Security shall determine the modifications necessary to the Harmonized Tariff Schedule of the United States (HTSUS) in order to effectuate this order consistent with law and shall make such modifications to the HTSUS through notice in the Federal Register.  The modifications made to the HTSUS by this notice shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on February 4, 2025, and shall continue in effect until such actions are expressly reduced, modified, or terminated.

    (f)  Articles that are products of Canada, except those that are eligible for admission under “domestic status” as defined in 19 CFR 146.43, which are subject to the duties imposed by this order and are admitted into a United States foreign trade zone on or after 12:01 a.m. eastern time on February 4, 2025, except as otherwise noted in subsections (a) and (b) of this section, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41.  Such articles will be subject upon entry for consumption to the rates of duty related to the classification under the applicable HTSUS subheading in effect at the time of admittance into the United States foreign trade zone

    (g)  No drawback shall be available with respect to the duties imposed pursuant to this order. 

    (h)  For avoidance of doubt, duty-free de minimis treatment under 19 U.S.C. 1321 shall not be available for the articles described in subsection (a) and subsection (b) of this section.

         (i)  Any prior Presidential Proclamation, Executive Order, or other Presidential directive or guidance related to trade with Canada that is inconsistent with the direction in this order is hereby terminated, suspended, or modified to the extent necessary to give full effect to this order. 

         (j)  The articles described in subsection (a) and subsection (b) of this section shall exclude those encompassed by 50 U.S.C. 1702(b).

         Sec. 3.  (a)  The Secretary of Homeland Security shall regularly consult with the Secretary of State, the Attorney General, the Assistant to the President for National Security Affairs, and the Assistant to the President for Homeland Security on the situation at our northern border.  The Secretary of Homeland Security shall inform the President of any circumstances that, in the opinion of the Secretary of Homeland Security, indicate that the Government of Canada has taken adequate steps to alleviate this public health crisis through cooperative enforcement actions.  Upon the President’s determination of sufficient action to alleviate the crisis, the tariffs described in section 2 of this order shall be removed.

    (b)  The Secretary of Homeland Security, in coordination with the Secretary of State, the Attorney General, the Assistant to the President for National Security Affairs, and the Assistant to the President for Homeland Security, shall recommend additional action, if necessary, should the Government of Canada fail to take adequate steps to alleviate the illegal migration and illicit drug crises through cooperative enforcement actions.

         Sec. 4.  The Secretary of Homeland Security, in consultation with the Secretary of the Treasury, the Attorney General, and the Secretary of Commerce, is hereby authorized to take such actions, including adopting rules and regulations, and to employ all powers granted to the President by IEEPA as may be necessary to implement this order.  The Secretary of Homeland Security may, consistent with applicable law, redelegate any of these functions within the Department of Homeland Security.  All executive departments and agencies shall take all appropriate measures within their authority to implement this order.

         Sec. 5.  The Secretary of Homeland Security, in coordination with the Secretary of the Treasury, the Attorney General, the Secretary of Commerce, the Assistant to the President for National Security Affairs, and the Assistant to the President for Homeland Security, is hereby authorized to submit recurring and final reports to the Congress on the national emergency under IEEPA declared in this order, consistent with section 401(c) of the NEA (50 U.S.C. 1641(c)) and section 204(c) of IEEPA (50 U.S.C. 1703(c)).

         Sec. 6.  General Provisions.  (a)  Nothing in this order shall be construed to impair or otherwise affect:

    (i)   the authority granted by law to an executive department, agency, or the head thereof; or

    (ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

    (b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

    (c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

    THE WHITE HOUSE,

        February 1, 2025.

    MIL OSI USA News

  • MIL-OSI USA News: Fact Sheet: President Donald J. Trump Imposes Tariffs on Imports from Canada, Mexico and China

    Source: The White House

    ADDRESSING AN EMERGENCY SITUATION: The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA).

    • Until the crisis is alleviated, President Donald J. Trump is implementing a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China.  Energy resources from Canada will have a lower 10% tariff.
    • President Trump is taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.
    • The orders make clear that the flow of contraband drugs like fentanyl to the United States, through illicit distribution networks, has created a national emergency, including a public health crisis. Chinese officials have failed to take the actions necessary to stem the flow of precursor chemicals to known criminal cartels and shut down money laundering by transnational criminal organizations.
      • In addition, the Mexican drug trafficking organizations have an intolerable alliance with the government of Mexico. The government of Mexico has afforded safe havens for the cartels to engage in the manufacturing and transportation of dangerous narcotics, which collectively have led to the overdose deaths of hundreds of thousands of American victims. This alliance endangers the national security of the United States, and we must eradicate the influence of these dangerous cartels.
      • There is also a growing presence of Mexican cartels operating fentanyl and nitazene synthesis labs in Canada.  A recent study recognized Canada’s heightened domestic production of fentanyl, and its growing footprint within international narcotics distribution

    USING OUR LEVERAGE TO ENSURE AMERICANS’ SAFETY: Previous Administrations failed to fully leverage America’s economic position as a tool to secure our borders against illegal migration and combat the scourge of fentanyl, preferring to let problems fester.

    • Access to the American market is a privilege. The United States has one of the most open economies in the world, and the lowest average tariff rates in the world.
    • While trade accounts for 67% of Canada’s GDP, 73% of Mexico’s GDP, and 37% of China’s GDP, it accounts for only 24% of U.S. GDP. However, in 2023 the U.S. trade deficit in goods was the world’s largest at over $1 trillion.
    • Tariffs are a powerful, proven source of leverage for protecting the national interest.  President Trump is using the tools at hand and taking decisive action that puts Americans’ safety and our national security first.
    • Though previous Administrations have failed to leverage America’s combination of exceptional strength and its unique role in world trade to advance the security interests of the American people, President Trump has not.

    PRESIDENT TRUMP IS KEEPING HIS PROMISE TO STOP THE FLOOD OF ILLEGAL ALIENS AND DRUGS: When voters overwhelmingly elected Donald J. Trump as President, they gave him a mandate to seal the border. That is exactly what he is doing.

    • The Biden Administration’s policies have fueled the worst border crisis in U.S. history.
    • More than 10 million illegal aliens attempted to enter the United States under Biden’s leadership, including a rising number of Chinese nationals and people on the terror watchlist.
    • This problem is not confined to the southern border – encounters at the northern border with Canada are rising as well.
    • The sustained influx of illegal aliens has profound consequences on every aspect of our national life – overwhelming our schools, lowering our wages, reducing our housing supply and raising rents, overcrowding our hospitals, draining our welfare system, and causing crime.  
    • Gang members, smugglers, human traffickers, and illegal drugs and narcotics of all kinds are pouring across our borders and into our communities.
      • Last fiscal year, Customs and Border Protection (CBP) apprehended more than 21,000 pounds of fentanyl at our borders, enough fentanyl to kill more than 4 billion people.
      • It is estimated that federal officials are only able to seize a fraction of the fentanyl smuggled across the southern border.  
    • These drugs kill tens of thousands of Americans each year, including 75,000 deaths per year attributed to fentanyl alone.
      • More Americans are dying from fentanyl overdoses each year than the number of American lives lost in the entirety of the Vietnam War.

    BUILDING ON PAST SUCCESS: President Trump continues to demonstrate his commitment to ensuring U.S. trade policy serves the national interest.

    • As President Trump said in the Presidential Memorandum on American First Trade Policy, trade policy is a critical component in national security.
    • President Trump promised in November to “sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders. This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”
    • During his first term as President of the United States, President Trump established the President’s Commission on Combating Drug Addiction and the Opioid Crisis and declared the Opioid Crisis a public health emergency.
    • President Trump also has a long record of putting America first on trade. In his first term, President Trump successfully used threats of tariffs on Mexico to help secure our border.
    • When our national security was threatened by a global oversupply of steel and aluminum, President Trump took swift action to protect America’s national security by implementing tariffs on imports of these goods.
    • In response to China’s intellectual property theft, forced technology transfer, and other unreasonable behavior, President Trump acted with conviction to impose tariffs on imports from China, using that leverage to reach a historic bilateral economic agreement.
    • Just last week, President Trump leveraged tariffs to successfully resolve national security concerns with Colombia, swiftly reaching an outcome that prioritizes the safety and security of the American people and the sanctity of our national borders.

    MIL OSI USA News

  • MIL-OSI Canada: Premier announces immediate response, vows to defend B.C. against Trump tariffs

    Source: Government of Canada regional news

    Premier David Eby is announcing immediate counter-measures to stand up for B.C.’s workers and businesses after the United States announced incoming 25% tariffs on Canadian goods and 10% tariffs on energy.

    “President Trump’s 25% tariffs are a complete betrayal of the historic bond between our countries and a declaration of economic war against a trusted ally,” said Premier Eby. “As British Columbians, and as Canadians, we will stand strong and united in the face of this unprecedented attack.”

    As a first step in response to the tariffs, Premier Eby announced immediate measures, including:

    • directing the BC Liquor Distribution Branch to immediately stop buying American liquor from “red states”, and remove the top-selling “red-state” brands from the shelves of public liquor stores; and
    • directing the B.C. government and Crown corporations to buy Canadian goods and services first.

    The Province is assessing private-sector projects worth $20 billion with the goal of getting them approved as quickly as possible, and issuing their permits faster. These are expected to create 6,000 jobs in remote and rural communities. In addition, the Province has vowed to support and help implement the actions being taken by the federal government.  

    Premier Eby added that additional measures are under consideration by B.C. and could be introduced in the coming days and weeks.

    “We won’t back down or be bullied into becoming another state,” said Premier Eby. “Our province is unified and resolute. We’ll never stop standing up for B.C. and Canada.”

    In January 2025, B.C. released its preliminary assessment of 25% tariffs. That analysis showed that B.C. could see a cumulative loss of $69 billion in economic activity between 2025 and 2028, along with the loss of more than 120,000 jobs. Estimates also indicated 25% tariffs on Canadian mineral exports alone will cost American companies over US$11 billion and have a profound effect on the U.S. defense industry, energy production, and manufacturing.

    The B.C. government has a three-point approach to fight back against the tariffs and protect British Columbians:

    1. respond to U.S. tariffs with tough counter-actions and outreach to American decision-makers;
    2. strengthen B.C.’s economy by expediting projects and supporting industry and workers; and
    3. diversify trade markets for products so British Columbia is less reliant on U.S. markets and customers.

    To support B.C.’s strong tariff response and ensure actions are swift, responsive and co-ordinated, Premier Eby has established a trade and economic security task force to bring together business, labour and Indigenous leadership. The task force is co-chaired by Tamara Vrooman from the Vancouver International Airport, Jonathan Price from Teck, Bridgitte Anderson from the Greater Vancouver Board of Trade, and includes B.C.’s largest business organizations.

    A new cabinet committee will act as a day-to-day war room, co-ordinating the whole-of-government approach the Province is taking to protect B.C.’s workers, businesses and economy.

    Quick Facts:

    • 54% of BC exports in 2023 were sent to the United States;
    • Wood, pulp and paper, metallic mineral and energy products combined make up approximately 67% of total goods exports.
    • The top five states for B.C.’s exports were: Washington ($9.8 billion), California ($3.2 billion), Illinois ($2.1 billion), Texas ($1.5 billion), Oregon ($1.3 billion)

    MIL OSI Canada News

  • MIL-OSI Canada: New self-registration system for Sunshine Coast dock, boathouse owners goes live

    A new self-registration system is now available for private dock and boathouse owners in the marine area of the shíshálh swiya, offering a simple way to secure temporary authorization for existing structures.

    The system ensures that owners can continue to enjoy uninterrupted water access, while the Province and shíshálh Nation work on finalizing the shíshálh swiya Dock Management Plan (DMP) for the region.

    The self-registration system provides a seamless, straightforward process for residents to register their existing docks and boathouses quickly. Upon completion, owners will receive an interim general permission authorization, granting them continued use of their water structures during a transition period in which a review of self-registered docks and boathouses will occur before issuing a 20-year, long-term renewable authorization.

    Important information:

    • Eligibility: The self-registration system is mandatory for all existing private dock and boathouse owners in the marine area of the shíshálh swiya, regardless of whether their structures currently have tenure.
    • Temporary tenure: The general permission tenure provided upon registration ensures that owners can maintain access to their docks and boathouses during the transition period.
    • Long-term plans: Over the next three years, these temporary authorizations will be reviewed and eligible structures will be transitioned into long-term, 20-year renewable authorizations in alignment with the final DMP.
    • Environmental requirements: Starting September 2024, owners will have 10 years to replace Styrofoam flotation systems and float decking with environmentally friendly alternatives such as encapsulated or non-Styrofoam materials and light-penetrating decking options. In cases where Styrofoam is actively breaking apart, dock and boathouse owners will have two years to replace it with encapsulated Styrofoam or a non-Styrofoam flotation system that ensures light penetration through the structure to the sea floor.

    The self-registration system is only for existing marine private moorage docks and boathouses in the shíshálh swiya.

    Learn More:

    For other forms of moorage and information for those who have applications in queue for new structures, visit the Land use – moorage page.
    https://www2.gov.bc.ca/gov/content/industry/crown-land-water/crown-land/crown-land-uses/residential-uses/private-moorage

    For more information about the registration process, future requirements, and the transition to long-term authorizations, refer to the Existing Dock and Boathouse Owners section in the swiya Fact Sheet:
    https://www2.gov.bc.ca/assets/gov/farming-natural-resources-and-industry/natural-resource-use/land-water-use/crown-land/crown-land-uses/regional-initiatives/shishalh-shared-decision-making/factsheet.pdf  
    and the Frequently Asked Questions:
    https://www2.gov.bc.ca/assets/gov/farming-natural-resources-and-industry/natural-resource-use/land-water-use/crown-land/crown-land-uses/regional-initiatives/shishalh-shared-decision-making/faqs_dmp.pdf

    To start the registration process, visit the Self-Registration System:
    https://www2.gov.bc.ca/gov/content/industry/crown-land-water/crown-land/regional-crown-land-initiatives/pender-harbour-project

    MIL OSI Canada News

  • MIL-OSI USA: Booker to Serve as Top Democrat on Three Senate Subcommittees in 119th Congress

    US Senate News:

    Source: United States Senator for New Jersey Cory Booker
    WASHINGTON, D.C. – Today, U.S. Senator Cory Booker (D-NJ) announced that he will serve as the top Democrat on three Senate subcommittees during the 119th Congress.
    Booker will be the ranking member of the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights, the ranking member of the Senate Agriculture Subcommittee on Commodities, Derivatives, Risk Management, and Trade, and the ranking member on the Senate Foreign Relations Subcommittee on Africa and Global Health.
    “On the Subcommittee on Competition Policy, Antitrust, and Consumer Rights, I will continue my work to reduce consolidation and increase competition in our markets to lower prices for everyday Americans, empower workers, support small businesses, and make our economy work for everyone. This is an opportunity to show Americans how strong and well-enforced antitrust laws can be a solution for kitchen table issues.
    “On the Subcommittee on Commodities, Derivatives, Risk Management, and Trade, I look forward to continuing my work to make sure our farm crop insurance and disaster programs are effective for small farmers and farmers growing fruits and vegetables. I also hope to work in a bipartisan matter to ensure our financial markets are safe, robust, and fair for farmers and ranchers, crypto users, and for everyday Americans concerned about the price of gas and groceries. I also hope we can work together to further clarify and strengthen the regulation of our financial system and improve oversight of digital commodities.
    “I look forward to continuing my work on the subcommittee on Africa and Global Health Policy. We must continue to engage our African partners to work together and boost trade, protect human rights, strengthen democracy, and promote global health initiatives across the continent. I look forward to working in a bipartisan fashion on these vital priorities so we can ensure a healthier, safer, and more prosperous future for the United States and Africa.”
    The subcommittee on Competition Policy, Antitrust, and Consumer Rights oversees: Antitrust law and competition policy, including the Sherman, Clayton and Federal Trade Commission Acts; Oversight of antitrust enforcement and competition policy at the Justice Department; Oversight of antitrust enforcement and competition policy at the Federal Trade Commission; Oversight of competition policy at other federal agencies. Booker was appointed to the Senate Judiciary Committee in January 2018.
    The subcommittee on Africa and Global Health Policy deals with all matters concerning: U.S. relations with countries in Africa (except those, like the countries of North Africa, specifically covered by other subcommittees), as well as regional intergovernmental organizations like the African Union and the Economic Community of West African States. This subcommittee’s regional responsibilities include matters relating to: terrorism and non-proliferation; crime and illicit narcotics; U.S. foreign assistance programs; and the promotion of U.S. trade and exports. In addition, this subcommittee has global responsibility for health-related policy, including disease outbreak and response. Booker was appointed to the Senate Foreign Relations Committee in January 2017. 
    The subcommittee on Commodities, Derivatives, Risk Management, and Trade oversees: commodity programs, derivatives and digital assets, crop insurance, and agricultural trade. Booker was appointed to the Senate Agriculture Committee in January 2021. 

    MIL OSI USA News

  • MIL-OSI Global: Trump’s 25% tariffs on Canada and Mexico amp up the risk of a broader trade war

    Source: The Conversation – Global Perspectives – By Markus Wagner, Professor of Law and Director of the UOW Transnational Law and Policy Centre, University of Wollongong

    It’s official. On February 1, US President Donald Trump will introduce a sweeping set of new 25% tariffs on imports from Canada and Mexico. China will also face new tariffs of 10%.

    During the presidential campaign, Trump threatened tariffs against all three countries, claiming they weren’t doing enough to prevent an influx of “drugs, in particular fentanyl” into the US, while also accusing Canada and Mexico of not doing enough to stop “illegal aliens”.

    There will be some nuance. On Friday, Trump said tariffs on oil and gas would come into effect later, on February 18, and that Canadian oil would likely face a lower tariff of 10%.

    This may only be the first move against China. Trump has previously threatened the country with 60% tariffs, asserting this will bring jobs back to America.

    But the US’ move against its neighbours will have an almost immediate impact on the three countries involved and the landscape of North American trade. It marks the beginning of what could be a radical reshaping of international trade and political governance around the world.

    What Trump wants from Canada and Mexico

    While border security and drug trade concerns are the official rationale for this move, Trump’s tariffs have broader motivations.

    The first one is protectionist. In all his presidential campaigning, Trump portrayed himself as a champion of US workers. Back in October, he said tariff was “the most beautiful word in the dictionary”.

    Trump hasn’t hidden his fondness for protectionist trade measures.

    This reflects the ongoing scepticism toward international trade that Trump – and politicians more generally on both ends of the political spectrum in the US – have held for some time.

    It’s a significant shift in the close trade links between these neighbours. The US, Mexico and Canada are parties to the successor of the North American Free Trade Agreement (NAFTA): the United States-Mexico-Canada Agreement (USMCA).

    Trump has not hidden his willingness to use tariffs as a weapon to pressure other countries to achieve unrelated geopolitical goals. This is the epitome of what a research project team I co-lead calls “Weaponised Trade”.

    This was on full display in late January. When the president of Colombia prohibited US military airplanes carrying Colombian nationals deported from the US to land, Trump successfully used the threat of tariffs to force Colombia to reverse course.




    Read more:
    What are tariffs?


    The economic stakes

    The volume of trade between the US, Canada, and Mexico is enormous, encompassing a wide range of goods and services. Some of the biggest sectors are automotive manufacturing, energy, agriculture, and consumer goods.

    In 2022, the value of all goods and services traded between the US and Canada came to about US$909 billion (A$1.46 trillion). Between the US and Mexico that same year, it came to more than US$855 billion (A$1.37 trillion).

    One of the hardest hit industries will be the automotive industry, which depends on cross-border trade. A car assembled in Canada, Mexico or the US relies heavily on a supply of parts from throughout North America.

    Tariffs will raise costs throughout this supply chain, which could lead to higher prices for consumers and make US-based manufacturers less competitive.

    Auto manufacturing stands to be hit hard by Trump’s tariffs.
    Around the World Photos/Shutterstock

    There could also be ripple effects for agriculture. The US exports billions of dollars in corn, soybeans, and meat to Canada and Mexico, while importing fresh produce such as avocados and tomatoes from Mexico.

    Tariffs may provoke retaliatory measures, putting farmers and food suppliers in all three countries at risk.

    Trump’s decision to delay and reduce tariffs on oil was somewhat predictable. US imports of Canadian oil have increased steadily over recent decades, meaning tariffs would immediately bite US consumers at the fuel pump.

    We’ve been here before

    This isn’t the first time the world has dealt with Trump’s tariff-heavy approach to trade policy. Looking back to his first term may provide some clues about what we might expect.

    In 2018, the US levied duties on steel and aluminium. Both Canada and Mexico are both major exporters of steel to the US.

    In his first term, Trump imposed major tariffs on US steel imports.
    ABCDstock/Shutterstock

    Canada and Mexico imposed retaliatory tariffs. Ultimately, all countries removed tariffs on steel and aluminium in the process of finalising the United States-Mexico-Canada Agreement.

    Notably, though, many of Trump’s trade policies remained in place even after President Joe Biden took office.

    This signalled a bipartisan scepticism of unfettered trade and a shift toward on-shoring or re-shoring in US policy circles.

    The options for Canada and Mexico

    This time, Canada and Mexico’s have again responded with threats of retaliatory tariffs.

    But they’ve also made attempts to mollify Trump – such as Canada launching a “crackdown” on fentanyl trade.

    Generally speaking, responses to these tariffs could range from measured diplomacy to aggressive retaliation. Canada and Mexico may target politically sensitive industries such as agriculture or gasoline, where Trump’s base could feel the pinch.

    There are legal options, too. Canada and Mexico could pursue legal action through the United States-Mexico-Canada Agreement’s dispute resolution mechanisms or the World Trade Organization (WTO).

    Both venues provide pathways for challenging unfair trade practices. But these practices can be slow-moving, uncertain in their outcomes and are susceptible to being ignored.

    A more long-term option for businesses in Canada and Mexico is to diversify their trade relationships to reduce reliance on the US market. However, the facts of geography, and the large base of consumers in the US mean that’s easier said than done.

    The looming threat of a global trade war

    Trump’s latest tariffs underscore a broader trend: the widening of the so-called “Overton window” to achieve unrelated geopolitical goals.

    The Overton Window refers to the range of policy options politicians have because they are accepted among the general public.

    Arguments for bringing critical industries back to the US, protecting domestic jobs, and reducing reliance on foreign supply chains gained traction after the ascent of China as a geopolitical and geoeconomic rival.

    These arguments picked up steam during the COVID-19 pandemic and have increasingly been turned into actual policy.

    The potential for a broader trade war looms large. Trump’s short-term goal may be to leverage tariffs as a tool to secure concessions from other jurisdictions.

    Trump’s threats against Denmark – in his quest to obtain control over Greenland – are a prime example. The European Union (EU), a far more potent economic player, has pledged its support for Denmark.

    A North American trade war – foreshadowed by the Canadian and Mexican governments – might then only be harbinger of things to come: significant economic harm, the erosion of trust among trading partners, and increased volatility in global markets.

    Markus Wagner receives funding from the Department of Defence, Australia as a Chief Investigator on a project titled Weaponised Trade.

    ref. Trump’s 25% tariffs on Canada and Mexico amp up the risk of a broader trade war – https://theconversation.com/trumps-25-tariffs-on-canada-and-mexico-amp-up-the-risk-of-a-broader-trade-war-248667

    MIL OSI – Global Reports

  • MIL-Evening Report: Trump’s 25% tariffs on Canada and Mexico amp up the risk of a broader trade war

    Source: The Conversation (Au and NZ) – By Markus Wagner, Professor of Law and Director of the UOW Transnational Law and Policy Centre, University of Wollongong

    It’s official. On February 1, US President Donald Trump will introduce a sweeping set of new 25% tariffs on imports from Canada and Mexico. China will also face new tariffs of 10%.

    During the presidential campaign, Trump threatened tariffs against all three countries, claiming they weren’t doing enough to prevent an influx of “drugs, in particular fentanyl” into the US, while also accusing Canada and Mexico of not doing enough to stop “illegal aliens”.

    There will be some nuance. On Friday, Trump said tariffs on oil and gas would come into effect later, on February 18, and that Canadian oil would likely face a lower tariff of 10%.

    This may only be the first move against China. Trump has previously threatened the country with 60% tariffs, asserting this will bring jobs back to America.

    But the US’ move against its neighbours will have an almost immediate impact on the three countries involved and the landscape of North American trade. It marks the beginning of what could be a radical reshaping of international trade and political governance around the world.

    What Trump wants from Canada and Mexico

    While border security and drug trade concerns are the official rationale for this move, Trump’s tariffs have broader motivations.

    The first one is protectionist. In all his presidential campaigning, Trump portrayed himself as a champion of US workers. Back in October, he said tariff was “the most beautiful word in the dictionary”.

    Trump hasn’t hidden his fondness for protectionist trade measures.

    This reflects the ongoing scepticism toward international trade that Trump – and politicians more generally on both ends of the political spectrum in the US – have held for some time.

    It’s a significant shift in the close trade links between these neighbours. The US, Mexico and Canada are parties to the successor of the North American Free Trade Agreement (NAFTA): the United States-Mexico-Canada Agreement (USMCA).

    Trump has not hidden his willingness to use tariffs as a weapon to pressure other countries to achieve unrelated geopolitical goals. This is the epitome of what a research project team I co-lead calls “Weaponised Trade”.

    This was on full display in late January. When the president of Colombia prohibited US military airplanes carrying Colombian nationals deported from the US to land, Trump successfully used the threat of tariffs to force Colombia to reverse course.




    Read more:
    What are tariffs?


    The economic stakes

    The volume of trade between the US, Canada, and Mexico is enormous, encompassing a wide range of goods and services. Some of the biggest sectors are automotive manufacturing, energy, agriculture, and consumer goods.

    In 2022, the value of all goods and services traded between the US and Canada came to about US$909 billion (A$1.46 trillion). Between the US and Mexico that same year, it came to more than US$855 billion (A$1.37 trillion).

    One of the hardest hit industries will be the automotive industry, which depends on cross-border trade. A car assembled in Canada, Mexico or the US relies heavily on a supply of parts from throughout North America.

    Tariffs will raise costs throughout this supply chain, which could lead to higher prices for consumers and make US-based manufacturers less competitive.

    Auto manufacturing stands to be hit hard by Trump’s tariffs.
    Around the World Photos/Shutterstock

    There could also be ripple effects for agriculture. The US exports billions of dollars in corn, soybeans, and meat to Canada and Mexico, while importing fresh produce such as avocados and tomatoes from Mexico.

    Tariffs may provoke retaliatory measures, putting farmers and food suppliers in all three countries at risk.

    Trump’s decision to delay and reduce tariffs on oil was somewhat predictable. US imports of Canadian oil have increased steadily over recent decades, meaning tariffs would immediately bite US consumers at the fuel pump.

    We’ve been here before

    This isn’t the first time the world has dealt with Trump’s tariff-heavy approach to trade policy. Looking back to his first term may provide some clues about what we might expect.

    In 2018, the US levied duties on steel and aluminium. Both Canada and Mexico are both major exporters of steel to the US.

    In his first term, Trump imposed major tariffs on US steel imports.
    ABCDstock/Shutterstock

    Canada and Mexico imposed retaliatory tariffs. Ultimately, all countries removed tariffs on steel and aluminium in the process of finalising the United States-Mexico-Canada Agreement.

    Notably, though, many of Trump’s trade policies remained in place even after President Joe Biden took office.

    This signalled a bipartisan scepticism of unfettered trade and a shift toward on-shoring or re-shoring in US policy circles.

    The options for Canada and Mexico

    This time, Canada and Mexico’s have again responded with threats of retaliatory tariffs.

    But they’ve also made attempts to mollify Trump – such as Canada launching a “crackdown” on fentanyl trade.

    Generally speaking, responses to these tariffs could range from measured diplomacy to aggressive retaliation. Canada and Mexico may target politically sensitive industries such as agriculture or gasoline, where Trump’s base could feel the pinch.

    There are legal options, too. Canada and Mexico could pursue legal action through the United States-Mexico-Canada Agreement’s dispute resolution mechanisms or the World Trade Organization (WTO).

    Both venues provide pathways for challenging unfair trade practices. But these practices can be slow-moving, uncertain in their outcomes and are susceptible to being ignored.

    A more long-term option for businesses in Canada and Mexico is to diversify their trade relationships to reduce reliance on the US market. However, the facts of geography, and the large base of consumers in the US mean that’s easier said than done.

    The looming threat of a global trade war

    Trump’s latest tariffs underscore a broader trend: the widening of the so-called “Overton window” to achieve unrelated geopolitical goals.

    The Overton Window refers to the range of policy options politicians have because they are accepted among the general public.

    Arguments for bringing critical industries back to the US, protecting domestic jobs, and reducing reliance on foreign supply chains gained traction after the ascent of China as a geopolitical and geoeconomic rival.

    These arguments picked up steam during the COVID-19 pandemic and have increasingly been turned into actual policy.

    The potential for a broader trade war looms large. Trump’s short-term goal may be to leverage tariffs as a tool to secure concessions from other jurisdictions.

    Trump’s threats against Denmark – in his quest to obtain control over Greenland – are a prime example. The European Union (EU), a far more potent economic player, has pledged its support for Denmark.

    A North American trade war – foreshadowed by the Canadian and Mexican governments – might then only be harbinger of things to come: significant economic harm, the erosion of trust among trading partners, and increased volatility in global markets.

    Markus Wagner receives funding from the Department of Defence, Australia as a Chief Investigator on a project titled Weaponised Trade.

    ref. Trump’s 25% tariffs on Canada and Mexico amp up the risk of a broader trade war – https://theconversation.com/trumps-25-tariffs-on-canada-and-mexico-amp-up-the-risk-of-a-broader-trade-war-248667

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI USA: Ahead of expected Trump tariffs, Senators Coons and Kaine introduce legislation to require congressional approval of new tariffs on U.S. allies

    US Senate News:

    Source: United States Senator for Delaware Christopher Coons
    WASHINGTON – U.S. Senators Chris Coons (D-Del.) and Tim Kaine (D-Va.) yesterday introduced the Stopping Tariffs on Allies and Bolstering Legislative Exercise of (STABLE) Trade Policy Act, which would rein in chaos that President Trump could create by unilaterally imposing tariffs on trading partners like the ones expected to go into effect this weekend on Canada and Mexico.
    The STABLE Trade Policy Act would institute a requirement of congressional approval before a president could impose new tariffs on U.S. allies and free trade agreement (FTA) partners. Currently, the president can impose tariffs on any nation using authorities that Congress created to combat national security risks and address international emergencies. The bill reclaims congressional authority over trade policy and limits the president’s ability to treat allies as enemies.
    “Congress gave the president the authority to impose tariffs so that he could combat our enemies in the event of a national security crisis, not so that he could pursue grudges against our allies and neighbors. If the president is going abuse this power to bully and coerce our allies, Congress should take this authority back,” said Senator Coons. “If this weekend’s tariffs go into effect, they’ll do catastrophic damage to our relationships with our allies and raise costs for working families by hundreds of dollars a year. Congress needs to stop this from happening again.”
    “Virginians want costs to go down, not up. But President Trump’s plans to impose broad-based tariffs would raise the price of everyday goods and hurt our economy,” said Senator Kaine. “It’s time for Congress to make it clear that no president should abuse existing tariff authorities designed to protect America’s national security from threats posed by our adversaries to slap tariffs on our allies and closest trading partners. I’m proud to introduce this legislation with Senator Coons to take that step to protect Americans’ pocketbooks from sharp price hikes and safeguard our relationships with our allies.”
    The introduction of STABLE Trade Policy Act comes shortly before President Trump’s across-the-board tariffs on Canada and Mexico are expected to go into effect. On his first day in office, President Trump pledged 25% tariffs on Mexico and Canada to go into effect February 1. The two nations, both members of the U.S.M.C.A. trade agreement that President Trump negotiated, accounted for almost one-third of all U.S. goods imports last year. Additionally, President Trump has promised 10% tariffs on China. President Trump has already threatened and then rescinded tariffs on Colombia.
    Specifically, the STABLE Trade Policy Act would:
    Require the president to explain to Congress any proposal to impose tariffs on allies and FTA partners.
    The president must explain why challenges with allies cannot be better addressed through diplomacy or other mechanisms.
    The president must assess of how tariffs will impact the U.S. economy and U.S. foreign policy interests. 
    Require congressional approval for new or additional tariffs on imports from allies and FTA partners.
    The bill constrains tariff authorities created by Congress to combat national security risks and address international economic emergencies. 
    The executive branch retains full authority to impose safeguard tariffs to combat unfair trade practices.
    The full bill text is available here.

    MIL OSI USA News