INFORMATION ON NEW PESTICIDES REGULATION IN THE EU

I attached below some of the information concerning pesticides packages regulation by the European Community (EC) for our information. This information may also good for traders who use to trade with the European Union (EU) business person counter-part for EU market. The information are as below:

“The European Commission introduced its proposal for a pesticides package in July 2006 aimed at protecting human health and the environment from dangerous or excessive pesticide use in agriculture production. The package includes a new Regulation to tighten the environmental and health criteria on the usage of pesticides before they are allowed into the EU market and a Directive laying down common objectives and requirements for sustainable use of pesticides.

On 13 January 2009, the European Parliament has voted in favour of the new EU pesticides legislation. The final legislation is now expected to be formally adopted by the Council of the European Union soon. It will then enter into force later in 2009.

Once adopted, a positive list of approved chemical substances of pesticides will be drawn up at EU level. The legislation will then enable EU member states to license pesticides at national level on the basis of the list or through mutual recognition of authorised products within a specified geographical zone. The EU is to be divided into three zones - north, centre and south - with compulsory mutual recognition within each zone as the basic rule.

The pesticides package will also ban 22 highly toxic chemicals that can trigger cancer or cause neural, hormonal or genetic damage. These groups of chemicals must be replaced by safer alternatives, but their use is permitted for a limited period of five years if it can be proven that they are essential for crop survival.

The draft Regulation is planned to supercede existing EU law gradually. Pesticides that can be placed on the EU market under current legislation will remain available until their existing authorisation expires, to prevent any large-scale withdrawal of products from the EU market.
Similarly, EU member states must implement the Directive on sustainable use of pesticides by early 2011.

Malaysia’s export of agricultural products to the European market will be subjected to this new rule. If the new legislation were to be implemented, Malaysia has to be more stringent on the use of pesticides in its agricultural production, to ensure that no banned chemicals are used and that the detectable level of pesticide residues must not be beyond the general default maximum residue level (MRL) of 0.01 mg/kg. It may also affect other processed products where the raw materials are sourced from the farms.

Together with the other EU legislation such as REACH, there is concern among the industry and third countries that the new legislation highlights the EU increasing shift away from scientific risk-based assessment of chemicals substances to hazard-based criteria for granting market authorisations.”

GONG XI FA CHAI

HAPPY CHINESE NEW YEAR TO ALL READERS

This year, Chinese celebrate the year of the Ox.

Those who were born in 1913, 1925, 1937, 1949, 1961, 1973, 1985 and 1997 are Ox or Bull people. According to the assessment, they make good surgeons, army/military generals and also hair-dressers (I suspected those days for ladies), but now men also good as hair-dresser.

According to my friend, they say these people are stubborn also, but some believe they make good Managers and Civil Engineers as well. What about good politician???......

Therefore, to the Chinese friends, may I wish all of you "Gong Xi Fa Chai".

CURRENT FOREIGN DIRECT INVESTMENT FLOW

Here are some interesting information concerning the flow of Direct Foreign Investment (FDI) for KAWAN’S readers’ information:

UNCTAD recently released new estimates on Global foreign direct investment (FDI). Complete UNCTAD estimates is attached (please refer below).

Global flows of FDI fell 21% to US$1.4 trillion in 2008 from a record high of US$1.8 trillion in 2007, and set to decline further in 2009.

Preliminary data for 2008 indicates that a number of countries that were formally leading recipients of FDI experienced the sharpest drops in 2008:

· UK - fell by 51% to US$109 billion;
· France - fell by 27.6% to US$114.3 billion;
· Italy - fell 94.3% to US$2.3 billion;
· Germany – fell 48.9% to US$48.9 billion; and
· Netherlands – fell 70.4% to US$29.5 billion.

However, inflows to the US fell by just 5.5%, to US$220 billion.

In Asia, inflows fell by 2.2%, mainly due to a 21.3% drop in investment in the Middle East. However, inflows were increased in China and India, 10.2% to US$92 billion and 59.9% to US$36.7 billion respectively. Malaysia enjoyed 53.4% increase from 2007 figure of US$8.4 billion to US$12.9 billion in 2008, while Singapore incurred a drop of 57.2% in their investment inflows. Thailand and Indonesia experienced a drop in investment inflows, 4.4% and 21.3% respectively.

Africa attracted more investment in 2008, with inflows up 16.8% from 2007 to US$61.9 billion. Inflows to Latin America and the Caribbean rose by 12.7% to US$142.3 billion.
UNCTAD stated that:

· Factors such as anticipated global recession, tighter credit conditions, falling corporate profits, uncertainties for global economic growth as well as companies’ announced plans to reduce production, lay off workers, and cut capital expenditures will contribute to reduce FDI.

· In the short-term, the negative impacts of the financial and economic crises on FDI are expected to remain dominant and to contribute to a continued fall in overall FDI through 2009.

· Developing countries will not be spared, and FDI falls in 2009 is expected to be more widespread.

· Public policies will play a major role in the establishment of favorable conditions for a quick recovery of FDI flows.

· Structural reforms aimed at ensuring more stability in the world financial system, prompt and effective economic stimuli by national governments, renewed commitment to an open attitude towards FDI, the implementation of policies aimed at favoring investment and innovation especially in the fields of environment, new energy sources, and small and medium-sized enterprises are key issues in this respect.

· With the reforms, the current crisis thus could turn into a major opportunity for creating new impetus for global FDI provided that policymakers resist calls for more protectionism and other policies that restrict FDI.

Beyond 2009, the outlook for FDI flows is still unclear due to the exceptional magnitude of the present crisis and the fact that it could lead to major structural changes in the world economy. UNCTAD expects (worst-case scenario) that FDI flows may not start to rise again until 2012.

WELCOME READERS OF KAWAN.

This blog was established with the objective of providing a platform for the writer to provide his views on various issues that might have give some attention of the readers in areas of government administration, issues concerning production of industrial products, issues concerning trading of cross border, international trade and it also could have some political discussion at national and international arena.

It also have some issues that might give certain business opportunities to the readers on how certain people to earn certain amount of income to the small business practitioners for small business activities.

Therefore, being the blog operator, I would very much WELCOME all readers to this blog KAWAN. I really very much appreciate, if readers could put your view or comment on issue that discussed in this blog.

Thank you very much indeed to all friends (kawan) in advance for your future input.....................................