Business

AMMAN — Minister of Industry, Trade and Supply Yarub Qudah on Monday called for strengthening the economic ties between Jordan and Bosnia and Herzegovina. Speaking at the Jordanian-Bosnian Business Forum held in Amman, the minister urged Bosnian businessmen to invest in Jordan and to benefit from the opportunities available in the Kingdom.

Minister of Foreign Trade and Economic Relations of Bosnia and Herzegovina Mirko Sarovic called on the two sides to sign bilateral agreements to enhance economic relations and commercial exchange as he urged businessmen from his country to explore potential investment opportunities in Jordan, the Jordan News Agency, Petra, reported.

Also on Monday, Agriculture Minister Khaled Hneifat met with Sarovic, according to Petra. The two ministers stressed the importance of increasing cooperation in the agricultural sector and opening the Bosnian market to Jordanian agricultural products. Hneifat and Sarovic agreed to sign a memorandum of understanding to boost cooperation.

BENAULIM, India — The leaders of five of the world's rising powers ended a two-day summit on Sunday with a pledge to speed global economic recovery as well as to fight terrorism.

Meeting in the beach resort state of Goa in southwestern India, the five countries known collectively as BRICS — Brazil, Russia, India, China and South Africa — adopted a final declaration endorsing their commitment to act against the financing of terror groups and their supplies of weapons and other equipment.

Presidents Xi Jinping of China, Vladimir Putin of Russia, Michel Temer of Brazil and Jacob Zuma of South Africa, and their host, Indian Prime Minister Narendra Modi, also vowed in the declaration to tackle the global economic slowdown and reform the world's financial architecture.

The group, which represents nearly half of the world's population and a quarter of its economy, with a combined annual GDP of $16.6 trillion, renewed its commitment to speed global recovery by investing in infrastructure projects and the manufacturing sector.

The BRICS leaders adopted three agreements, including two to set up separate research networks for developing agriculture and railways. They agreed to crack down on economic crime by fighting tax evasion, money laundering and corruption.

"We have agreed to make the BRICS a strong voice on emerging regional and global issues," Modi told reporters.

The BRICS leaders stressed the need to strike a balance between economic development and environmental protection, and hailed the early entry into force of the Paris climate agreement.

The BRICS nations agreed that the New Development Bank, which the group set up in 2014, should continue to focus on infrastructure, technology and renewable energy sectors, adding that "in order to further bridge the gap in the global financial architecture, we agreed to fast track the setting up of a BRICS credit rating agency".

"In a world of new security challenges and continuing economic uncertainties, BRICS stands as a beacon of peace, potential and promise," Modi said.

The thrust of the declaration reflected the flagging economic fortunes of the BRICS countries in recent years due to the global slowdown.

In Russia, the decline in global oil and commodity prices coupled with biting Western sanctions have dealt a blow to the economy. The Chinese economy has slowed to its slowest pace in 25 years, although its 7 per cent growth rate still places it among the fastest-growing global economies.

South Africa remains caught in severe economic turmoil, with the country's credit rating at risk of being downgraded to junk by the end of the year.

Brazil is only just emerging from months of the worst economic recession it has seen since the 1930s, a situation that was further worsened by recent political turmoil.

India, although the fastest-growing country in the world at 7.5 per cent annually, is grappling with widespread poverty and the challenge of strikes against militants in Kashmir.

BENAULIM, India — Indian Prime Minister Narendra Modi and Russian President Vladimir Putin signed multibillion-dollar energy and defence pacts on Saturday following talks aimed at reinvigorating ties between the traditional allies.

Modi hailed Putin as an "old friend" after their meeting in the Indian state of Goa, where leaders of the other BRICS emerging nations were also gathering for a summit.

"Your leadership has provided stability and substance to our strategic partnership," Modi said alongside Putin at a beachside resort, after officials signed up to 20 agreements between the two nations.

Modi said the pacts on jointly producing light military helicopters, building frigates and other areas of cooperation "lay the foundations for deeper defence and economic ties for years ahead".

They also signed an initial agreement on India's purchase of Russia's state-of-the-art defence system, capable of shooting down multiple incoming missiles, although there were no details on a time frame for delivery.

Putin has been seeking to seal deals with India to help revive Russia's recession-hit economy, following sliding oil prices and Western sanctions over the Ukraine crisis. 

"I would like to stress that we intend to expand our bilateral cooperation not only in energy but also across a wide range of areas," Putin said.

The announced energy deals include Russian oil giant Rosneft's decision to buy almost the entire stake in India's Essar Oil for almost $13 billion.

Essar said the deal involving a group led by Rosneft was the largest single foreign direct investment in India. 

The leaders also signed an agreement to supply more units to a nuclear plant in Kudankulam in southern India to meet the fast-growing economy's thirst for electricity and to reduce its reliance on dirty coal.

Modi also held talks with China's President Xi Jinping late Saturday, in the hope of boosting investment and trade. Relations, however, have been frustrated by Beijing's decision so far to block New Delhi's entry to a nuclear trade group, among other issues.

China and India, the world's two most populous nations, are jockeying for regional influence in Asia. 

Modi will host a dinner for the leaders of the BRICS club — which also includes South Africa and Brazil — ahead of talks on Sunday.

BRICS was formed in 2011 with the aim of using its growing economic and political influence to challenge Western hegemony.

AMMAN — Jordan has been elected to chair the joint meeting of the International Monetary Fund (IMF) and the World Bank (WB), which will be held in Washington in the fall of 2017. This election, for the first time, took place on the sidelines of the IMF and the WB meetings that convened in Washington this month, during which Finance Minister Omar Malhas met with US officials and discussed the country’s efforts as part of its economic and financial reform.

Discussions also covered the outcome of the London conference and the developments of the Extended Fund Facility the Kingdom signed with the IMF. Later this month, an IMF mission is scheduled to visit Jordan to conduct the first review of the programme signed with the Kingdom, the Jordan News Agency, Petra, reported.

AMMAN — Amman Chamber of Commerce President Issa Murad on Saturday commended the Cabinet's decision to extend the duration allowed for storing vehicles at public and private warehouses to three years instead of two, describing that as a “positive step".

Murad, who is also a senator, said the step will boost the sector, especially as demand on buying vehicles, has not been that strong lately, both at internal and external markets, according to a statement released by the chamber. Murad said the decision provides traders and importers ample time to sell cars.

AMMAN — The Jordan Industrial Estates Company (JIEC) has managed to draw a JD2 million Syrian investment project to Al Muwaqqar Industrial Estate, JIEC said in a statement on Saturday.

The new investment in the field of irrigation and drinking water systems will provide nearly 30 jobs, the statement indicated. JIEC Chief Executive Jalal Al Debei said this investment, along with other new investments, reflects an increasing interest in investing in industrial estates in general, and at Al Muwaqqar Industrial Estate, in particular.

Talal Atasi, the general manager of the investing company which specialises in irrigation pipelines and drinking water production, said the firm will start its production process soon, adding that it is going to export its products to the local and Arab markets.

BRUSSELS — The EU on Thursday appealed a decision by the World Trade Organisation (WTO) that found the European Union guilty, as charged by giant US rival Boeing, of providing illegal subsidies to Airbus.

The bitter spat over Airbus at the WTO comes just as the European Union and the United States struggle to save years of negotiations on the world’s biggest trade deal amid deep public scepticism that it will deliver the benefits promised.

The European Commission, the EU’s executive arm that handles WTO disputes for the bloc, said “significant aspects of the compliance panel report cannot be regarded as satisfactory”.

“The EU in particular disagrees with the legal conclusion that, even though most of the subsidies challenged by the US have ended, the EU has not yet fully complied with the previous ruling,”it said in a statement.

The WTO appeals panel, ruling in a dispute dating back to 2004, said on September 22 that the EU had not taken steps it had ordered in 2011 to withdraw several support and subsidy programmes for Airbus.

The WTO did not put a value on those programmes, but Boeing said they amounted to $22 billion worth of illegal support for Airbus development and sales, mostly in subsidised loans.

The EU appeal comes a day before top US trade officials visit the WTO to defend Boeing against what the company calls unfair competition from its European rival.

The US wants the WTO to formally adopt the appeals panel’s findings, and “will press for the rapid enforcement of those findings in a special meeting of the WTO’s Dispute Settlement Body”, the US Trade Representative’s office said last week.

“We will not tolerate our trading partners ignoring the rules at the expense of American workers and their families,”US Trade Representative Michael Froman said.

Boeing also claimed that as a result of the September 22 ruling, the United States could now levy retaliatory duties against the EU of up to $10 billion a year.

The EU noted Thursday that the WTO still has to rule on two cases it has brought against Boeing over massive alleged illegal subsidies it has received.

Washington has said it is ready to negotiate a solution over the broader dispute.

NEW DELHI — Prime Minister Narendra Modi will look to reinvigorate the BRICS group of emerging nations at a summit this weekend with India seen as a bright spot in a bloc whose clout has been undermined by economic woes.

BRICS — a club made up of Brazil, Russia, India, China and South Africa — was formed in 2011 with the aim of using its growing economic and political influence to challenge Western hegemony.

The nations, with a joint estimated GDP of $16 trillion, set up their own bank in parallel to the Washington-based International Monetary Fund and World Bank and hold summits, rivalling the G7 forum.

But the countries, accounting for 53 per cent of the world’s population, have been hit by falling global demand and lower commodity prices, while several have also been mired in corruption scandals.

Russia and Brazil have fallen into recession recently, South Africa only just managed to avoid the same fate last month while China's economy — the recent engine of world growth — has slowed sharply.

India by contrast is now the world's fastest-growing major economy in an otherwise gloomy environment and its GDP is expected to grow 7.6 per cent in 2016-17.

Indian foreign ministry official Amar Sinha said the leaders would debate "global growth prospects, the role of BRICS in leading this global growth and our contributions to it".

China's Vice Foreign Minister Li Baodong said the leaders would "exchange in-depth views on BRICS cooperation and other global and regional issues", according to state news agency Xinhua.

Some of the more substantive talks are expected at bilateral meetings, on the sidelines of the summit in the tourist state of Goa, with Modi expected to separately meet China's President Xi Jinping and Russia’s president.

Brazil's new President Michel Temer, who replaced impeached Dilma Rousseff, will look to such meetings to boost trade ties and help drag his country out of its worst recession in half a century.

The summit comes amid some scepticism about the future of BRICS, especially given India's efforts to reach out to the US and Europe since Modi — a one-time pariah of the West — came to power in 2014.

'Reduced potency' 

Eswar Prasad, professor of trade and economics at Cornell University in the United States, said BRICS had been weakened by its collective burdens.

"The economic troubles faced by many members of the BRICS group have reduced its potency and influence in the world economy," he told AFP. 

Prasad said BRICS needed to focus on a global issue such as pushing back against mounting anti-globalisation rhetoric to stay relevant.

"Given its sheer size and continued significant contribution to global growth, this group could have some clout if it acted in concert in dealing with issues of global governance and the international monetary system."

Geethanjali Nataraj, currently at the Brookings Institute India, agreed the summit needed to focus on areas of common concern, warning India against pursuing contentious issues with regional rival China. 

"India needs to tread with caution and avoid all controversial issues that would lead to friction," Nataraj wrote in the Financial Express.

Taking place at the same time in Goa is a meeting of heads of a seven-nation grouping called BIMSTEC loosely based around the Bay of Bengal.

Myanmar's Aung Sang Suu Kyi, Bangladesh Prime Minister Sheikh Hasina as well as the leaders of Thailand, Sri Lanka, Bhutan and Nepal are set to attend for talks focused on trade.

CAIRO — Egypt says it has secured fuel imports to make up for a shortfall caused by Saudi Arabia’s abrupt decision to halt shipments that have been previously agreed on, avoiding a potentially costly fuel shortage and propelling the issue of oil onto the centre stage of an escalating Saudi-Egypt spat.

Saudi Arabia agreed in April to provide Egypt with 700,000 tonnes of fuel monthly for five years on easy repayment terms, but Egyptian officials said this week that Saudi Arabia’s Aramco, the world’s largest oil company, informed Cairo it would not ship any fuel this month.

Oil Ministry spokesman Hamdi Abdel Aziz was quoted by Egyptian newspapers on Wednesday as saying that several fuel shipments from other suppliers have arrived in Egypt following “urgent” tenders.

There has been no official word from Saudi Arabia on the abrupt halt of shipments, a decision that appears linked to a public spat between the two allies over Syria.

Egypt’s vote in favor of separate Russian and French draft resolutions on Syria at the UN Security Council over the weekend has apparently angered the Saudis, who oppose Russia’s military intervention in Syria and support some of the anti-government militant groups there.

Recently, Egypt has been moving closer to Russia, harshly condemned by the Saudis and other Arabs for its heavy-handed military intervention in Syria.

Saudi Arabia, meanwhile, is moving closer to Turkey, which Egypt accuses of backing militants seeking to topple the Cairo government.

Continuing tension between Egypt and Saudi Arabia would signal a realignment of Mideast power centres.

Egyptian columnist Abdullah El Sennawy criticised Egypt’s decision to vote for both resolutions at the Security Council, describing it in an article in the Al Shorouq daily as diplomatically “inappropriate”.

But “there is nothing to justify any Saudi haughtiness, either with loose diplomatic talk or the suspension of oil shipments as economic punishment,” he added.

The Security Council spat was the first public quarrel between Riyadh and Cairo since the Egyptian military’s 2013 ouster of an Islamist president and the subsequent flow of billions of dollars in Saudi aid that kept Egypt’s ailing economy afloat.

But relations have cooled since King Salman sought closer ties with Turkey and Qatar, two countries whose relations with Egypt are fraught with animosity. Beside Syria, other issues divide Cairo and Riyadh. 

Later on Wednesday, Saudi ambassador to Egypt, Ahmed Qatan, left Cairo for Riyadh but was expected to return to the Egyptian capital over the weekend, according to airport officials.

It was not immediately clear whether his departure was linked to the Saudi-Egypt spat. The officials spoke on condition of anonymity because they were not authorised to speak to the media.

ISTANBUL — OPEC said on Wednesday it was inviting Russia and other key non-members to a meeting later this month as the oil cartel and Moscow seek to tighten cooperation to boost historically low crude prices.

The announcement came after a meeting in Istanbul between several top OPEC energy ministers with their Russian counterpart Alexander Novak aimed at advancing joint efforts to bolster oil prices whose lows have hurt the highly-dependent economies of crude producers.

The meeting took place on the sidelines of the World Energy Congress in Istanbul, which on Monday saw a vow by Russian President Vladimir Putin for Moscow to impose curbs on energy output to match OPEC cuts that caused a spurt in oil prices.

“We agreed to have a technical meeting of OPEC... on 28-29 of this month [October]. An invitation is going to be sent to some key non-OPEC countries,” Qatar Energy Minister Mohammed Saleh Al Sada said after the talks.

“This meeting is meant to give a better understanding of the best way of how to move towards the rebalancing of the market to the interest of all,” added the Qatari minister.

Other than Russia, he did not elaborate on what other non-OPEC countries were being invited to the meeting, but indicated he wanted a wide turnout.

“We have a list of non-OPEC countries and we are yet to refine it further. We intend to expand it and get the feelings of as many non-OPEC countries as possible.”

He gave no indication however the meeting would be attended by the United States, the world’s number three oil producer.

“The US attending is something we cannot assure you of,” he said.

‘Cooperation roadmap’ 

The prospect of Russia, one of the world’s top two oil producers alongside Saudi Arabia, coordinating policy with OPEC has boosted global oil markets in the last few days and briefly brought crude to its highest levels for a year. 

The cartel had last month at a meeting in Algiers agreed its first production cut in eight years, although it remains to be seen how this will be complied with and implemented.

Novak confirmed that Russia had been invited to the October meeting in Vienna which would try and “work out a roadmap for the cooperation of our countries” in the rebalancing of prices. 

The upcoming talks will be a technical meeting, with the next general meeting of OPEC ministers planned for November 30 in Vienna. 

Novak had on Tuesday evoked a possible six month freeze of production levels by Russia to match OPEC’s own output curbs.

He said no concrete figures were discussed at the meeting. “As for figures, that is in the future and and I think [at the October meeting] we will discuss more or less concrete parameters.”

Putin said Wednesday in Russia that a freeze of production at current levels was in the interest of the Russian economy.

“If OPEC countries agree a production freeze, we will join that decision,” he said, adding the key obstacle was to find agreement between Saudi Arabia and its regional foe Iran.

‘Rebalance the market’ 

The energy ministers of OPEC members including United Arab Emirates Energy Minister Suhail Al Mazroui, Qatar Energy Minister Mohammed Saleh Al Sada and Venezuelan Oil Minister Eulogio del Pino all attended the talks at an Istanbul hotel chaired by OPEC Secretary General Mohammed Barkindo. 

Of non-OPEC countries, Mexico was also represented.

However, there were notable absentees from the talks, with the energy minister of the cartel’s Saudi Arabia, Khalid Al Falih, having already departed from Istanbul and Iraq and Iran also not attending. 

Al Falih had also made clear at the congress earlier in the week that Saudi Arabia was against any drastic output cuts by OPEC, warning the cartel not to “crimp too tightly”.

Oil prices had plunged to historic lows over the last two years with an excess of supply, partly due to new and cheaper technologies coming at a time of a global economic slowdown.

“We are doing our very best now to rebalance the market,” said the Qatari Minister Al Sada, adding that the current “overhang” in excess supply was holding back much-needed investment.