By Kavaljit Singh | Commentary | October 19, 2011
After months of delay, the US commodity regulator – Commodity Futures Trading Commission (CFTC) – finally approved new rules to limit traders’ positions on 28 physical commodity futures (and swaps) contracts. On 18 October 2011, the CFTC’s decision was arrived through a 3-2 vote along party lines, with the commission’s three Democrats forming the majority against the two Republicans. The new restrictions (called position limits) on the number of contracts traders can hold are an important component of the…
By Kavaljit Singh | Commentary | October 17, 2011
The G20 finance ministers and central bankers have put off an immediate decision to weigh up a global financial transaction tax (FTT) proposal at the forthcoming G20 Summit (Cannes, 3-4 November 2011).
The two-day Ministerial Meeting in Paris took place against the backdrop of huge protests in US and Europe, galvanized by the Occupy Wall Street movement. At the Paris meeting, G20 finance ministers discussed myriad policy and implementation issues concerning world economy and financial markets. As anticipated, eurozone sovereign debt crisis…
By Shekar Swamy | Briefing Paper # 3 | October 2011
There is a growing pressure on policymakers from foreign governments and big retailers to permit foreign direct investment (FDI) in multi-brand retail in India. At present, India allows 51 percent FDI in single-brand stores (e.g., Apple) and 100 percent FDI in cash & carry and wholesale trading. The retail trading by foreign multi-brand retailers (e.g., Wal-Mart Stores) is prohibited under the current regulatory regime.
The Committee of Secretaries has recently recommended that the sector…
By Burghard Ilge and Kavaljit Singh | Briefing Paper # 4 | October 2011
On 12th September 2011, the General Affairs Council of the European Union (EU) officially approved negotiating mandate for investment protection measures under the proposed free trade agreements with India, Singapore and Canada. The secretive manner in which the negotiating mandate was approved raises several legitimate questions about the entire process.
The new negotiating mandate specifically proposes investor-to-state dispute settlement provisions (in addition to state-to-state). This remains highly contentious because it gives special rights to…
By Kavaljit Singh | Briefing Paper # 5 | October 2011
At the forthcoming G20 Summit (Cannes, 3-4 November 2011), the summit leaders are expected to address several policy issues concerning world economy and financial markets, many of which remained unresolved since the Toronto Summit in June 2010. Against the backdrop of a weak global economy and the ongoing eurozone sovereign debt crisis, G20 leaders will have to take some hard decisions. Failure to do so would undermine the effectiveness and credibility of G20 as the “premium forum” for international…
