World Trade News Summary

During this week several significant events transpiredworldwide, expressed its positive outlook regarding
particularly in the industrial world. These changes haveits business. Earlier this year, the automaker released
influenced directly or indirectly not only the growingits latest goods and empowered its competitiveness
global trade, but likewise the developing economy ofin certain areas. The company is expecting its sales
countries worldwide. On one hand, some events haveto increase in 2007 and 2008.
positively contributed to the various sectors ofMeanwhile, General Motors stated last Monday that it
international or local economy and they serve aswould sell back 17.4% of its share to Suzuki Motor
harbingers of more future developments. On theCorp. This decision was made by the large U.S car
other hand, there were also events that haveindustry to boost its balance and improve its shared
negatively impacted and in fact continue to threatenin the market. Moreover, GM has also been planning
the various sectors of both international and localto sell a significant percentage of its shares from
trade and economy.General Motors Acceptance Corp, its financial
Oil Price Continues to Improve in the Global Marketdepartment. Among the rumored bidders is the
This week has been full of good news for oil traders.Norinchukin Bank. Currently, Norinchukin is one of the
Last Monday, oil rate plummeted by $2. As such, U.Sleading financial companies in Japan. Other companies
crude oil dipped down to $1.6 thus settling to a ratethat expressed their desire to bid were Citigroup and
of $62.41 per barrel at the Merchantile ExchangeCerberus Capital Management. Citigroup is, currently,
(New York). The decrease also calmed down a 4-daythe biggest bank in the United States.
protest prompted by the oil price, which previouslyGlobal Trade Witness Some of the Most Important
raised up to $63.92 per barrel. Meanwhile, the rate ofTrials
oil in Nigeria continued to increase. This was due toFinally, the four former administrators of Ahold faced
the recent discovery of an oil pipe leak and thethe court on charges of fraud. Ahold was considered
militant protests, which forced Nigeria to cut a largeas the biggest supermarket and retailer in the world.
percentage of its oil production and supply. AlthoughMoreover, it served as an icon of success and
the situation of Nigeria affected the international oilstability in the business world. Yet this reputation was
trade, it did not keep the rate of oil from improving.tainted when its former directors admitted to have
The significant decrease has been attributed tofalsified documents thus misleading several investors
current negotiations with Iran regarding its plans forincluding the company's own accountants.
nuclear production.Microsoft Corporation also sought last Friday the aid
Last Tuesday, the oil rate slipped further by 2%of the U.S federal courts in order to pressure IBM,
($1.26). Hence, U.S crude oil settled to a price ofNovell Inc., Oracle Corp., and Sun Microsystems Inc. in
$61.58 per barrel. Meanwhile in London, brent crudeorder to hand certain documents necessary in its
decreased by 1.32 cents and remained at $61.02. Thedispute against the European Commission. In 2004,
same trend was followed by the rest of the oilEC fined the giant company after discovering that
market worldwide. Oil value further improved due toMicrosoft used its position to damage the other
Nigeria's statement to restore a large part of itsdevelopers of softwares, which are vital for printers,
production and supply and to OPEC's decision topass log-ins, and file access. The company, which did
maintain out near the maximum level. Nigeria wouldnot yet fulfill its sanctions according to the EC, asked
increase its output by 75% in the coming weeks. Thethe case to be tried in Luxembourg. It was found out
OPEC officials, too, said that they would keep oilthough that the other evidences asked by Microsoft
production and supply close to the limit in order topertained to the internal archives of the EC subject
avoid gaps and prevent the oil price from increasing.to its own rules and norms.
After the Energy Information Administration (EIA)Netac Technology, based in mainland China, also
released its report that crude oil inventories rosemade historical headlines last month after charging U.S
beyond the expected rates during the past 7 years,company PNY Technologies for infringement.
the oil rate slipped further last Wednesday by 2.5%.Although the news came as a surprise for many
Based on the report, the inventories rose as high asAmericans, some analysts consider it as a harbinger
6.8M barrels during the past week. The resultsof future possibilities in the technological industry.
exceeded the expected rate of 1.6M barrels. AnalystsMany U.S and other foreign companies were also
added that the decision of OPEC to maintain the oilexpecting that China would finally intensify its fight
output close to the limit also contributed to thisagainst piracy after experiencing the need to protect
improvement. Another factor considered was Iran'sits own products and trademarks. Recently, China has
statement to maintain an adequate oil production andreceived foreign complaints particularly a warning
supply amidst the negotiations regarding its nuclearfrom the Washington regarding the widespread
plans.piracy in the Asian country.
Several Partnerships Yield More Improvements in theU.S. Encounter Recommendations and Feedbacks in
World TradeTrade and Investment
AT&T Inc. disclosed last Sunday its decision toRecently, trademark experts strongly emphasized the
acquire BellSouth Corp. for around $67B. This moveresponsibility of American Business to register their
was part of AT&T's plan for further expansionnames immediately in China. This was necessary in
especially in the southeastern region of the U.S. Theorder to avoid falling as preys of brand squatters.
agreement between the two companies would thenStephen Baker, who works at Baker & Rannells
bring Cingular Wireless, the leading wireless phoneas a trademark lawyer, stated the increase of brand
company in the U.S, under the sole ownership ofsquatting cases. Alarmingly, some of these brand
AT&T. The deal would be completed within thesquatters even successfully obtained a huge amount
span of one year. Although the transaction wouldof cash from individuals or big time companies that
need the approval of the anti-trust administratorssought to maintain and fully own their web domain
including the Federal Communications Commission,name. He commented that regardless whether U.S
analysts commented that the process wouldfirms have future plans to expand in China, enlisting
probably not encounter any opposition.their trademark was necessary.
Upon the release of the news regarding AT&T'sThe interference of the U.S Republic Senators against
acquisition of BellSouth, the stocks at the Europeanthe Dubai Ports World also roused concerns that it
telecom market significantly improved. The Europeanwould affect an $8B investment of UAE into the U.S
division of DJ Stoxx telecoms rose by 2.2% thusregarding an early-warning system. Although the deal
ensuring more stability for 2006. BT earned as high aswas already approved previously, the protest from
4.3% up to a 7-month pence. Both the French andthe senators pushed the government to make
the Dutch telecom improved by 2%. Vodafoneanother review period. But businessmen and analysts
increased as high as 4.7% to a close 2 month 127.20particularly the American Business Group of Abu
British pounds. The news of the acquisition excitedDhabi (ABG) based in UAE stated that stopping the
several international telecom companies thus leavingagreement could affect the decision of Arabs in
positive results in this particular sector of trade.investing their money into the country. As such, the
Meanwhile in the gas industry, Linde AG, a leadingorganization would be sending its representatives to
supplier of medical and industrial gases and producertalk with some 120 Republican Senators.
of warehouse machinery, agreed to pay 8.2B poundsChina Faces Several Issues Significant to its Economy
($14.$B) in order to acquire its rival, the British BOCand Position in the World Trade
Group. According to analysts, a counter-bid to buyAccording to reports, several trading partners of
BOC was least expected due to the pressure in theChina might raise their complaints against the country
entire gas trade and the competitive amountat the World Trade Organization. The move would be
proposed by Linde. The acquisition further boostedpart of the traders' objective of pushing Beijing in
the assets and profits of the German company andorder to effectively implement the international rules
placed it to the top place along with French Airof trade. According to a U.S senior official, several
Liquide as a leading gas industry worldwide.trading partners of China may raise their complaints
Amidst the planned agreement of partnership withagainst the country at the World Trade Organization.
Arcelor, the Mittal family was rumored to lower itsThe move would be part of the traders' objective of
voting rights from 10-2 down to 2-1. This step wouldpushing Beijing in order to effectively implement the
enable the Mittal clan to earn the support of manyinternational rules of trade. James Mendenhall, the
large investors and to still maintain a large percentagegeneral adviser for the office of the United Sates
of voting stake. The leading steel company thoughTrade Representative commented that the efforts
denied those reports and stated that it would notof China to fight piracy was not yet enough since
precede the possible result of its negotiations withthe problem has continued to spread and affect
Arcelor, which is based in Luxembourg. Theother foreign industries.
partnership though encountered several disapprovalsMeanwhile, John Snow, the Treasury Secretary, also
thus causing the stocks of both companies tosaid that China needed to initiate more changes in its
decrease.currency. He added that the need for more flexibility
A month ago, Whirlpool Corp. also disclosed itsin its currency was necessary since its role in the
negotiations in order to buy Maytag Corp. Althoughinternational trade was expanding due to its growing
both companies have not yet arrived at a decision,economy. Snow commented that promoting equal
the proposed agreement has been opposed by thetrade in the international market was a common
anti-trust division of the Justice Department.responsibility of all nations involved.
Recently, the sector has begun focusing its attentionCuban Tobacco and Spirits Industry to Expand in
to the laundry appliance industry. Lawyers from theRussia
anti-trust department have initiated the process byExporters of Cuba rum and cigarette announced their
gathering the testimonies of various rival companiesplan to establish a Floridita bar in Moscow, Russia. The
regarding the possible impact of the merging to thechain of restaurants has earned its fame through the
entire appliance market. The deal would amount toyears by accommodating many Hollywood celebrities
$1.7B thus giving birth to the largest applianceand other personalities especially in 1940's and 1950's.
manufacturer in the global market. Due to theThe said bar would be a blend of a fine restaurant, a
opposition, the shares of both companies decreased.cigarette shop, and great Cuban music. The opening
Nike Inc. which is the number one athletic shoeof the bar was hoped to improve the trade of
producer worldwide, was rumored to buy Puma. TheCuban tobacco and spirits in Russia.
company denied the reports though and furtherNew Vaccine May Prevent Ear Infection among
supported its statement by saying that it expectsChildren
more developments and expansion in its ownGlaxoSmithKline Plc has recently discovered a
products particularly with goods related to soccerpowerful vaccine that could aid in the prevention of
sports. Nike, which would be sponsoring the 2006acute otitis media. The ear infection is among the
World Cup in Germany, said that it would launch acommon health problems that arise during the
wider advertising campaign compared to its effortschildhood phase and has led to the loss of the
during the World Cup in Asia in 2002.hearing capacity of many kids worldwide. Yet, the
Automobile Companies Seek Ways to Stabilize andnew treatment developed by the pharmaceutical
Improve Their Marketcompany brings plenty of promises to many children
Although a decline is expected in the car industrywho are at risk of ear infection. The medicine called
next year, automakers are moving to stabilize andStreptorix is still subject to the approval of both the
improve their sales and profits. Particularly,European and the U.S regulatory board.
DaimlerChrysler, the 5th largest car industry