India could beat China in remittance game

The amount of money sent by NRIs is likely to be $58 billion in 2011, slightly ahead of China's estimated receipts of $57 billion, says the World Bank. With this, India would beat China in receiving the highest remittances globally for five years in a row, from 2007. Countries such as Mexico and the Philippines were among the other top recipients of remittances from their respective emigrants.

According to RBI data, money sent to India by NRIs increased 13.3 per cent (to $45.6 billion) for the first nine months of 2011, compared with the first nine months of 2010. Inflows expanded 7.9 per cent for a similar period in 2010 over 2009. Remittances in 2010 accounted for 3 per cent of India's GDP.

These remittances, also called personal transfers, do not include NRI deposits in banks here. The transfers are used for consumption by the NRIs' families or invested in options such as property. They contribute to the local economy. The rupee depreciation against major currencies may have driven remittance flows in recent times. When the rupee depreciates, every dollar or Saudi riyal yields more rupees back home.

Remittances from NRIs saw a sharp pick-up in the September quarter over the previous three-month period. As against the 3-4 per cent quarterly growth in remittances in 2010 and first half of 2011, remittances in the September quarter jumped 9.8 per cent over the previous quarter.

High inflation, too, could have triggered NRIs to send more to their families to meet the price rise on their food bill and higher interest on domestic loans.

Russia becomes WTO 153rd member

On 16 December 2011, Russia cleared the final hurdle to become a WTO member. WTO Ministers adopted Russia’s WTO terms of entry at the 8th Ministerial Conference in Geneva. Russia will have to ratify the deal within the next 220 days and would become a fully-fledged WTO member 30 days after it notifies the ratification to the WTO.

The Russian membership deal was agreed by the Working Party of countries negotiating with the applicant on 10 November 2011, and ended 18 years of negotiation. Russia still has to ratify the agreement and will become a member 30 days after it notifies the WTO. Under the agreement, it should ratify within 220 days (about 22 July 2012).
Ministers welcomed the agreement and the forthcoming membership of the last large economy to remain outside the WTO. Several also paid tribute to Switzerland for broking an important deal between Russia and Georgia during the final stages of the negotiations.

Georgia and Russia have signed an historic trade deal which allows Russia to join the World Trade Organization (WTO). The deal, which follows 18 years of negotiations, was brokered by Switzerland. Georgia has repeatedly blocked Russia's WTO entry since the two countries fought a short war in 2008. The deal hinges on international monitoring of trade along the mutual borders of Abkhazia and South Ossetia. The two provinces have broken away from Georgia and are recognised as independent states by Russia.

Russia has finally joined the World Trade Organization (WTO) at a ceremony in Switzerland on Friday, after 18 years negotiating its membership. The Swiss brokered a deal between Russia and Georgia earlier this year that removed the last obstacle to Russia's accession.
Georgia had tried to block Russia's WTO entry since the two countries fought a short war in 2008. Russia was by far the biggest economy yet to join the global trade body. It is also the last member of the Group of 20 major economies to join, after China gained membership in 2001. "This result of long and complex talks is good both for Russia and for our future partners," President Dmitry Medvedev said in a message to a WTO ministerial meeting in Geneva that formally approved Russia's membership.

The White House said US President Barack Obama called Mr Medvedev to congratulate him on Russia's admission.
The 153-member WTO provides a forum for international trade liberalisation agreements, which it polices - deciding when rules have been breached and when retaliatory trade sanctions can be imposed. The removal of trade barriers is likely to stimulate greater and more diversified trade between Russia and the rest of the world. Some estimates suggest Russian membership will help to boost its economy by tens of billions of dollars each year. Russia is Europe's third largest export market, while Russia's own exports have been dominated by oil and gas.
One reason the agreement was finally reached was because of a change of heart in the Russian leadership, according to Mr Tchakarov. "Since the 2008-09 [global financial] crisis there has been a certain recognition at the very high level in Russia that... Russia will have to open up a little bit to foreign investment, because this is the only way for Russia to become a more competitive economy," he said. Ahead of the signing ceremony, Russian officials were talking up the benefit of the deal, which will still need to be ratified by the Russian parliament in the next six months. "This will create the right conditions for the further improvement of our business climate, for an influx of foreign investment and for boosting Russian exports while also retaining the possibility of giving support to our key branches of domestic economy," said Russian foreign ministry spokesman Alexander Lukashevich. "We are achieving a completely new level of integration into the global economic system."
The deal with Georgia that opened the way for Russia to join hinged on the international monitoring of trade along the mutual borders of Abkhazia and South Ossetia. The two provinces have broken away from Georgia and are recognised as independent states by Russia.
However, the agreement may still face a hurdle in the US, where existing legislation left over from the Cold War era blocks favourable trading relations with Russia. But Mr Tchakarov at Renaissance Capital said he believed Congress would agree to eliminate the laws, as past disputes with Russia over agriculture and intellectual property rights have now been fully resolved.

Russia and WTO timeline

• 1993 : Russia applies to join the General Agreements on Tariffs and Trade (Gatt)
• 1995 : The Gatt is institutionalised as the World Trade Organization (WTO)
• 1998 : Russia suffers a major financial crisis
• 2000 : US President Bill Clinton backs Russia's WTO bid in a speech to the Russian parliament
• Vladimir Putin succeeds Boris Yeltsin as Russian president
• 2001 : China joins the WTO after 16 years of talks
• Russian membership talks intensify
• 2002 : The US and EU recognise Russia as a market economy, removing a major hurdle to WTO membership
• 2004 : EU gives formal backing to Russia's application
• 2006 : US formally backs Russian membership
• Georgia threatens to veto after Russia imposes a trade blockade on it
• 2008 : Brief Russian military invasion of Georgia
• President Putin questions the benefits of joining the WTO
• 2010 : EU reaffirms support for Russian membership
• 2011 : Russia reaches an agreement with Georgia in November, opening the way for its accession in December
• 2011 : Russia reaches an agreement with Georgia in November, opening the way for its accession in December