Argentina's currency depreciated by more than 50%! The Arctic route may have more than 40 voyages next year, India's quality control order丨Foreign Trade News Express
The currency has depreciated by more than 50%!
According to CCTV News, on the afternoon of the 12th local time, Argentina's new Minister of Economy Caputo announced a new economic policy to the public via video, among which the adjustment of the exchange rate between the peso and the US dollar attracted widespread attention. According to the new policy,The official exchange rate of the Argentine peso against the US dollar will be adjusted to 800 pesos to 1 US dollar. The exchange rate closed at 1 US dollar to 365.5 Argentine pesos on the day, which means that the official exchange rate of the Argentine peso depreciated by more than 50%.
In addition, on December 13, local time, the statistical report released by the National Institute of Statistics and Census of Argentina showed thatIn November 2023, Argentina's inflation rate reached 12.8%, and the cumulative inflation rate in the past 12 months increased to 160.9%.
Caputo also announced that he would cut a variety of public expenditures, such as reducing the number of state ministries from 18 to 9 and the number of state secretariats from 106 to 54; no new public works tenders would be made, and projects that had already been tendered but not started would be canceled; subsidies for energy and transportation would be cut; the "job stimulation" plan would be retained, and related social subsidies would be increased;Temporarily increase import taxes and non-agricultural export withholding taxes; replace the current import approval statistics system with a new system that does not require prior approval of a license, etc.
On December 10th local time, Argentina's President-elect Milley was officially sworn in for a four-year term. The new cabinet formed by him was also sworn in on the same day.
There are other reports that everyone thinks the official peso is going to devalue by 40%. That's going to cause prices to go through the roof. That's already happening. Supermarkets are bracing for 30% or 35% price increases. Gasoline prices just went up 15%, and that's just the beginning.
Huifeng International would like to remind you thatThe risk of exporting to Argentina has soared recently. Shippers and freight forwarders who have trade relations should do a good job of risk control and beware of risks such as buyers abandoning goods or not paying at the destination port, so as to avoid losses caused by losing both money and goods. Forward this to everyone~
Arctic routes may have more than 40 voyages next year
At a recent international industry forum, Dmitry Yurkov, director of Arctic development in Arkhangelsk, Russia, announced that
They plan to carry out about 40 ship trips between Arkhangelsk and Shanghai along the Arctic route in 2024.
“Although we have only one regular sailing this year, we plan to increase the number of sailings to 40 next year. Transporting automobiles, spare parts and consumer goods from China.”
In early October this year, the first ship loaded with timber departed from Arkhangelsk and headed for China along the Arctic route.
The voyage did not use icebreaker services and the one-way transit time was 22 days.
“Chinese shipowners and shippers have shown strong interest in this route.”
According to estimates by Russia's Ministry for the Development of Eastern Russia, cargo volumes on the Arctic route could reach 72 million tons next year - double the volume expected this year.
The forecast is based on existing binding agreements, while the Moscow government had previously set a target of 80 million tons of cargoes next year, TASS reported.
As for this year's shipping volume - about 36 million tons, it is already a historical record, partly benefiting from the diversion of shipping volume from the Suez Canal.
India Quality Control Order
In 2022, China's exports to India amounted to 118.5 billion U.S. dollars, while its imports from India amounted to only 17.4 billion U.S. dollars. This huge trade deficit has made the Modi government very uncomfortable.
According to a recent report by the Indian local media Economic Times,The Indian government is using quality control orders to "slowly" certify the quality of products produced in Chinese factories, putting pressure on multinational companies that rely on Chinese factories.。
The report said that the Indian government's ultimate goal is to require them to reduce their dependence on Chinese imports and switch to domestic production in India.
What is a “quality restriction order”?
（Quality Control Order，QCO)
The Quality Control Order is a mandatory requirement by the Indian central government for certain specific products or product categories to comply with Indian standards, and the relevant competent authorities will include the products in the mandatory certification of the Bureau of Indian Standards.
According to the quality control order, the relevant products and their components need to be manufactured in factories certified by the Bureau of Indian Standards.Regardless of whether the factory is located domestically or abroad, each factory needs to be certified separately, even if they belong to the same manufacturer。
After the effective date of the QCO, no person may manufacture, import, distribute, sell, rent, lease, store, or display any product covered by the QCO without the standard mark unless they have a valid license or CoC from BIS.Foreign manufacturers will be required to obtain a license or CoC from BIS under BIS’s Foreign Manufacturers Certification Scheme (FMCS).
Before 2014, there were only 106 kinds of goods that needed to pass the "quality control order". Now, the number has reached more than 500, including toys, shoes, air conditioners and other products.
This certification is actually very difficult for Chinese factories to obtain.The Bureau of Indian Standards team has repeatedly delayed going to China to certify factories, but according to Indian media reports, it is much easier for local Indian factories to pass the "quality control order".
What impact will it have on Made in China?
The Economic Times of India recently reported that an executive of an air-conditioning manufacturer said that the Indian Bureau of Standards team was unwilling to go to China to certify the factory.
Not only that, India is "strictly guarding against" Chinese-made products, and has even prevented them from reaching Southeast Asian countries such as Vietnam, Thailand, and Indonesia.
At the end of November, Nike wrote a letter to the Indian government, requesting that the Indian government certify its factories in Vietnam and Indonesia in a timely manner. Since May 2023, 26 Nike and Converse suppliers have submitted applications.
According to a report by India's Business Standard, companies such as Nike, Mitsubishi and air conditioner manufacturer Carrier have difficulty obtaining BIS certification for their supplier factories in China. They have written to the Indian government seeking certification for their manufacturing plants in other Asian countries. However, the Indian government remains hesitant because it is worried that companies may import Chinese goods through "backdoors" such as Vietnam and Thailand.
An anonymous Indian company executive believes thatIndian officials should visit China to resolve this issue as many industries in India still need essential goods from China.For some Indian manufacturers, China is a key source of imports. However, for Chinese exporters, considering the cost, they will not apply for Indian quality certification.
Starting next year, a new batch of products will be included in the quality control order, including ceiling fans, stainless steel kitchenware, etc., with a total of 115 items.
Original link:https://timesofindia.indiatimes.com/india/from-2024-bureau-of-indian-standards-nod-must-for-another-115-items/articleshow/104226219.cms?from=mdr
A senior Indian government official also said,The Indian government plans to expand the scope of mandatory quality standard certification to 1,500-2,000 products in the next 2-3 years., ranging from toys to electronic products. The Indian government recently announced 217 products that will be included in the quality control order in the next few years. This includes door handles, water dispensers, air conditioners, refrigerators and car rims, as well as industrial products such as aluminum ingots, billets and wire.
Foreign traders exporting to India must pay attention to trade risks!
The central government sets the tone for the economy in 2024, sending out important signals
The Central Economic Work Conference was held in Beijing from December 11 to 12. The conference set the tone for economic work in 2024 and emphasized that “Next year, we must adhere to the principle of seeking progress while maintaining stability, promoting stability through progress, and establishing before breaking down.”, sending out important signals.
The meeting emphasized the need to expand high-level opening up, with a lot of attention paid to the deployment of foreign trade work, and pointed out that "We must accelerate the cultivation of new impetus for foreign trade, consolidate the basic foundation of foreign trade and foreign investment, and expand trade in intermediate products, trade in services, digital trade, and cross-border e-commerce exports.”
"The direction of the new momentum is very clear." Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce Research Institute, said that my country's foreign trade development is currently facing a series of pressures, and it is necessary to overcome external pressures with endogenous motivation. The market for intermediate goods trade is relatively broad globally, and intermediate goods are the products most closely linked to the industrial chain and supply chain. With the transformation and upgrading of my country's manufacturing industry, my country has become a key node in the industrial chain and supply chain, and can achieve competitive advantages. At the same time, whether it is the development of related manufacturing industries in my country or other countries, intermediate goods are needed. By focusing on "expanding trade in intermediate goods", my country's trade opportunities will also increase.
Notice on Several Measures to Accelerate the Development of Domestic and Foreign Trade Integration
On December 11, the General Office of the State Council issued the "Several Measures on Accelerating the Integrated Development of Domestic and Foreign Trade" (hereinafter referred to as the "Several Measures"), which proposed 18 measures in five aspects, including promoting the connection and integration of domestic and foreign trade rules and systems, promoting the connection of domestic and foreign trade market channels, optimizing the development environment of domestic and foreign trade integration, accelerating the integrated development of domestic and foreign trade in key areas, and increasing financial and fiscal support, in order to accelerate the integrated development of domestic and foreign trade.
Full notice:
https://www.gov.cn/zhengce/zhengceku/202312/content_6919597.htm
South Korea plans to cut tariffs on 76 products next year
According to Yonhap News Agency, in order to enhance industrial competitiveness and reduce the burden of prices, South Korea will reduce tariffs on 76 commodities next year. The Ministry of Strategy and Finance recently released a legislative notice for the "2024 Regular Flexible Tariff Plan" containing the above content, which will be implemented from January 1 next year after going through relevant procedures.
In terms of strengthening industrial competitiveness, the main commodities involved include quartz glass substrates, lithium nickel cobalt manganese oxide, aluminum alloys, nickel ingots, disperse dyes, corn for feed, etc.
In terms of price stabilization, quota tariffs are applied to food products such as modified potato starch, sugar, peanuts, chicken, and egg products, as well as LNG, LPG and crude oil.
Adjustment tariffs will be applied to 13 types of goods. The adjustment tariff system refers to a system that raises the basic tariff rate to 100% when an increase in imports of specific items may disrupt the domestic market or cause the collapse of the industrial base.
In addition, the scale of special emergency tariffs applicable to agricultural, forestry and livestock products has increased. Taking grain as an example, it will be increased from 464,422 tons to 654,995 million tons.
The EU may ban or restrict the use of polyvinyl chloride (PVC) and its additives
Recently, the European Chemicals Agency (ECHA) released a survey on the potential risks of polyvinyl chloride (PVC) and its additives to human health and the environment. The results show that some substances added to PVC (such as plasticizers) may cause harm to humans and the environment.
In order to limit the use of these additives and reduce the release of PVC particles, ECHA will subsequently take corresponding measures to achieve the goals of the EU Plastics Strategy and respond to the EU's commitment to "reducing plastic pollution" under the United Nations Environment Programme (UNEP).
At the request of the European Commission, ECHA launched an investigation into the potential risks of PVC additives and PVC itself to human health and the environment, while considering possible alternatives and evaluating the social impact of potential risk management measures.
The ECHA investigation focused on 63 PVC additives, including plasticizers, heat stabilizers and flame retardants.
Through the analysis of the materials used in the manufacture of PVC resin, the production process, waste disposal and exposure to PVC dust, it is believed that the risks of PVC resin to workers and the environment have been fully controlled under the current operating conditions and the company's safety measures. However, the following regulatory actions are still needed:
Minimize the risks of plasticizers, especially phthalates, which can affect the reproductive and/or endocrine systems. Further REACH restrictions may be implemented in the future.
Reduce the risks posed by heat stabilizer organotin compounds (except "MOTE with DOTE concentration less than 0.3%), which may cause developmental malformations and reproductive harm. Further REACH restrictions may be imposed on such substances in the future, and ECHA authorities are also considering comprehensive supervision in combination with other regulatory measures.
To reduce the emission of flame retardants, please refer to the recommendations in ECHA's Regulatory Strategy for Flame Retardants.
Implement and improve technologies that can reduce PVC microparticle emissions, especially at recycling facilities and landfills. PVC microparticles contribute to plastic pollution and these microparticles may also contain harmful additives. Reducing PVC emissions will correspondingly reduce emissions of these additives.
ECHA has submitted the results of the investigation to the European Commission, which will decide whether to formally prepare a REACH restriction proposal after evaluating it. Once it is put on the agenda, it will have a significant impact on the global PVC industry.
Before the official regulatory measures are officially released, it is recommended that relevant companies conduct self-inspections of harmful additives in PVC products exported to Europe and in the supply chain, so as to find green alternatives in a timely manner and adjust the industrial layout in advance.
Source: Focus Vision, Yunwei Network, Today's Shipping, etc.
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