Economic & trading blocs in focus

Headlines galore, with a great deal of political drama hidden behind the scenes.   Below CSA presents a few excerpts from recent news on the ever continuing development of economic and trading blocs between the East and West.

EU, Singapore agree free-trade deal

[Source] : The European Voice

By Andrew Gardner – 16.12.2012 / 16:05 CET

The agreement is the EU’s first with an Asean country and its second in Asia.

The European Union and Singapore today (16 December) announced that they have reached agreement on a free-trade deal, 33 months after they began formal negotiations.

This is the second free-trade agreement struck by the EU in Asia; the first – with South Korea – came into force in July 2011.

The EU began negotiations with Singapore in March 2010 after its hopes of lowering barriers with the ten-country Association of South-East Nations (Asean) were dashed in 2009, and Karel De Gucht, the European trade commissioner, said today he hoped the deal would “open the doors for FTAs [free-trade agreements] with other countries in the Asean region”.

Click here to read the complete article

[Img] : Courtesy of Wiki Commons, Leaders of the TPP

Vietnam sees value in TPP

[Source] : Published: 17/12/2012 at 09:47 AM – Newspaper section: Asia focus

Two competing regional trade plans, while sharing the aims of liberalising trade and improving economic integration, are making many Asean countries nervous at the same time.

The Trans-Pacific Partnership (TPP) has the backing of the United States while the Regional Comprehensive Economic Partnership (RCEP) is favoured by China.

Smaller countries might resent being put in a position where they feel they have to choose between the two. But Vietnam has confidently embraced the TPP, believing it could increase its exports while helping the country attract more foreign investment.

Click here to read the complete article

Trade power play

[Source] : Published: 17/12/2012 at 09:44 AM – Newspaper section: Asia focus

China’s attempt to convince Asean countries to support the Regional Comprehensive Economic Partnership (RCEP) reflects the country’s aim to become the real economic leader of Asia Pacific and keep the United States at bay, say experts.

While Beijing drums up support for the 16-country RCEP (Asean plus China, Japan, South Korea, India, Australia and New Zealand), Washington is making its case for the Trans Pacific Partnership (TPP).

Both countries went all-out at the Asean and East Asia Summit meetings last month in Phnom Penh, with newly re-elected President Barack Obama talking up the TPP with individual leaders. However, the RCEP now has some real momentum following its formal endorsement by the leaders of the 16 countries involved. They hope to start negotiations in 2013 and finish by 2015. A successful outcome would lead to the creation of the world’s largest regional trading bloc.

The TPP has been on the drawing board for a long time and has proved to be a tougher sell. It envisages a trading bloc covering all of the countries on the Pacific including those in North and South America. Singapore, Chile and New Zealand were original signatories back in 2005, followed by Brunei, while the United States didn’t even enter the picture until 2008. Since then there have been several rounds of talks and six more countries — Australia, Peru, Vietnam, Malaysia, Mexico and Canada — have entered negotiations.

Click here to read the complete article

Book Review, The Final War: Avoiding It through a New Harmonic Society

Being distracted by the blitzkrieg onslaught of “news stories,” makes it quite easy to get distracted in this day and age. To name a few headlines from around the world sucking in people’s limited attention span we have –>

• Election season in the US, along with Hurricane Isaac and drought in much of the US heartland of farming
• Droughts in Russia and India as well, causing a rise in fear around the world of a possible repeat of the 2007-2008 food crisis.
• Eurozone Crisis, will the Eurozone survive? Will the PIGS be forced to leave? Etc…
• Talk of leadership change in Canada and a possible referendum on succession of the French Speaking regions.
• The beginning stages transition of power in China
• … and many more which deserve mention but as the title of this entry states, this is a book review, not a recap of Global News. You can tune into any 24/7 news station or open your chosen News App on your tablet or phone to be blitzed with more “global news.”

Image courtesy of http://thefinalwar.net/

This entry is about a new book which has just hit the presses: The Final War: Avoiding It through a New Harmonic Society. Co-authored by Fernando Morote Solari (a military hero, expert in geopolitics, professor), Dr. Sofia Morote (his daughter and also a professor and expert in geopolitics), and a colleague of theirs Patricia Bowens McCarthy.

I am a professor at Dowling College (www.internationalprofessor.com), and I wrote this book in a team with my father Fernando Morote Solari (a military hero, expert in geopolitics, professor) and my colleague Patricia Bowens McCarthy.

The first part of the book discusses the role of several countries in a possible World War and why we may have one. The second part, discusses a way to impending a world war through creating a new Harmonic Society. The book also praises China president statements in the UN about Harmonious World, instead of dismissing them as US Media often does as simply political jargon.

The authors initially discuss the precarious and ongoing situations throughout the Middle East- Israel – Pakistan and finally how the emergence of China begins to factor in. It also encompasses Africa, Central and South America (Latin America), where Chinese interests are growing.  The authors asset that the projected confrontation can be avoided by The Law of Universal Harmony, which is undergirded by Judeo-Christian precepts, Eastern concepts and principles such as dynamic balance, static equilibrium, ascending and descending transformation, and synchronized movements. 

The goals are objects of Universal Harmony as discusses in the book are achievable when nations take ownership for development strategies, policies and programs.  In sum, The Final War: Avoiding It through a New Harmonic Society, reveals the realities of what a confrontation could mean for the world, and offers solutions and steps which can be taken to prevent. Overall a very worthwhile and interesting read for geopolitical intellectuals out there, specifically ones interested in transpacific relations.

The book is currently available through multiple mediums in both English and Spanish.  Please visit the home of the page of the book http://thefinalwar.net/ to learn how to purchase wither E-Book or hard copies ranging from $7 USD – $20 USD in price.

Latin America’s China Addiction (Part 2): Are Commodity Prices Showing Signs Of Recovery?

[Source] : Seeking Alpha

Click here to read part 1 of this story 

China’s economic soft-landing has had a significant impact on economic growth across the globe and particularly in Latin America where mining and commodities production are key drivers of economic activity. In the first article of this series the linkage between Latin American economic growth, commodities exports and Chinese economic growth was illustrated. This showed that China’s slowing economy and decreased demand for commodities has been a key catalyst for the fall in economic growth across the region. It has also been a key catalyst for the plunging share prices being experienced by many resource companies, which include some of Latin America’s largest publicly tradable companies like Vale (VALE) and Petrobras (PBR).

Market outlook on commodities growing more optimistic

However, markets have been taking a more optimistic view of China and commodities over the last month. This growing optimism is based on signs that the contraction in Chinese economic activity is easing along with increasing speculation that the Chinese government will take action to boost growth. This has led to considerable speculation that there will be a recovery in commodities prices, which should see a renewal of economic growth in Latin America.

One of the key drivers of this growing optimism has been the slowing contraction of the Chinese manufacturing sector, with the Chinese purchasing managers’ index (PMI), rising in July to a five month high. There has also been renewed confidence in the iron ore mining sector with Australia’s third largest iron ore producer Fortescue Metal’s Group (FSUMF.PK) recently reporting an 8% increase in profit, along with positive statements from both Rio Tinto (RIO) and Vale concerning the future direction of iron ore prices. However, with the exception of crude oil it appears that this optimism is misplaced with commodity and basic materials prices continuing to fall.

Click here to read the complete article

Chian South America Announcement

As summarized in a sub-section of my previous post on Vietnam, I Bennett Reiss (your author and the webmaster of China South America) has decided to formally announce that China South America will officially expand it’s horizons beyond just the scope of China and South America.

As any long time or frequent readers would have already observed I on occasion stray from “China-South America News.”  From now on expect more of the following:

- Articles, news and commentary involving North America, Russia, Australia and New Zealand (Oceania) because of their respective connection and roles in the greater Pacific Region (APEC).

- From Europe, Spain will likely have quite a presence on this site.  Due to its long term influence in the region, FDI, and from the influx of Spaniards arriving in the region seeking opportunities as Spain’s economy falters.

- Lastly, expects posts from time to tome on any news CSA believes is appropriate for the site involving South-South Cooperation – such as the increasing connections Brazil, China and India’s have with Africa, India-Latin America, ASEAN – Latin Ameirca, etc.

- MicroFinance News

News from Chinese PM’s tour of the Southern Cone of Latin America

Pang Li / China Daily

Premier’s visit is sign of close ties with region

The trip by Premier Wen Jiabao to Latin American countries is another clear indication that the close ties between the two will gather new steam, especially in trade and investment.

China and Latin America have both experienced high growth in the past decade and seen their trade and investment advance on a fast track.

In 2011, China’s trade with Latin America jumped 31.5 percent over the previous year to $241.5 billion, making China the third-largest trade partner for the region after the United States and the European Union. China has become the largest trade partner for Brazil and Chile and the second-largest trade partner for Argentina, Mexico, Peru and Venezuela.

China also made a $10.1 billion non-financial investment in Latin America in 2011, making the region the second-largest destination for Chinese foreign direct investment. This has brought China’s total non-financial investment in the region to $54 billion. In addition, China has signed free trade agreements with Chile, Peru and Costa Rica.

There is great trade potential for Latin America and Asia, particularly China, according to a joint report titled Shaping the Future of the Asia-Latin America and the Caribbean Relationship, released in April by the Asian Development Bank, the Asian Development Bank Institute and the Inter-American Development Bank.

Click here to read the complete article from the China Daily

China’s influence grows in US’ ‘backyard’

Not so long ago, Latin America was considered the “backyard” of the United States, but this is now changing. In the past decade China’s trade, investment and economic cooperation with the region has increased, challenging the US’ position in Latin America.

The US’ importance as a market for Latin American goods was so big that there was a time it was said: “When the US economy sneezes, Latin American countries catch a cold.” But as China has now become a larger export destination for some Latin American countries, the same can now be said of China. For example, its influence in the Peruvian economy is very big, to the point that Luis Miguel Castilla, Peru’s finance minister, has said “the truth is I light a little candle every day and pray that China’s growth doesn’t fall”.

China’s emergence as an economic power and its needs for natural resources and food, which Latin American countries have in abundance, means China is now the biggest trade partner of Argentina, Brazil, Chile and Peru. And China has free trade agreements with Chile, Costa Rica and Peru that will enhance that relationship.

In the past decade trade between the US and Latin American countries increased twice but the trade between China and Latin American countries grew 17 times. Also investment from China is growing at a fast pace. In global terms, the US is still the biggest trade partner of the region but it is only a matter of time before China claims that role.

Click here to read the complete article from the Opinions section of the US China Daily

China Signals Interest in Mercosur Trade Pact – Dow Jones

–China Premier Wen Jiabao sees opportunity to double Mercosur-China trade by 2016

–Wen urges feasibility study on Mercosur-China free-trade pact

–Wen is wrapping up South America tour

BUENOS AIRES–China Premier Wen Jiabao on Monday said his country wants to explore greater economic cooperation with the South American customs union Mercosur, including a possible free-trade pact.

Mr. Wen said there is scope for China and Mercosur to double their trade between 2011 and 2016.

“We have to do feasibility studies about the creation of a free-trade zone between China and Mercosur,” he said during a video conference with three South American heads of state.

Click here to read the complete article from Dow Jones

China, Argentina pledge to deepen bilateral ties

BUENOS AIRES, June 25 (Xinhua) — Visiting Chinese Premier Wen Jiabao reached broad consensus with Argentine President Cristina Fernandez here on Monday on deepening ties between the two countries.

In their meeting, Wen said that over the past 40 years since the two countries established diplomatic ties, bilateral relations have withstood many tests and witnessed continuous progress that has benefited the two countries and two peoples and made positive contribution to the world.

In the face of an increasingly complex international situation fraught with serious challenges, it is in the fundamental interest of both countries to further promote the overall development of China-Argentina strategic partnership, Wen said.

Click here to read the complete article from the China Daily

Chinese Premier Arrives in Chile for Visit

Chinese Premier Wen Jiabao arrived Monday evening on his first official visit to Chile.

In a written speech released upon his arrival, Wen hailed the traditional friendship and bilateral ties between the two countries since they forged diplomatic ties 42 years ago.

He also highlighted the frequent high-level visits, fruitful cooperation in various fields, and sound cooperation on international and regional issues with the South American nation.

Click here to read the complete article from CRI English

Chinese prime minister’s South American tour to end in Chile

Chinese Prime Minister Wen Jiabao began his first official visit to Chile on Monday night, which includes meeting with President Sebastián Piñera the next morning to discuss relations between the two countries and to sign several bilateral agreements. Wen will also meet with presidents of both the Senate and the Chamber of Deputies and visit the United Nations’ Economic Commission of Latin America and the Caribbean (CELAC) in Santiago.

Wen’s visit to Chile is the last stop on a larger tour undertaken by the Chinese Prime Minister and his staff, which began with the Río+20 conference in Río de Janeiro, Brazil on June 20 and also included official visits to Uruguay and Argentina. Wen’s visit marks the first time in 16 years that a Chinese prime minister has visited the region.

Click here to read the complete article from the Santiago Times

China and Japan buy up Western Assets

Two articles caught my attention yesterday from the WSJ’s Asia edition. If you’re a subscriber I highly suggest giving them a quick read. Whether it’s China – socialism with Chinese characteristics, or Japan – arguably one of the most “socialist” countries in the world within a capitalist system… They both saved for rainy days and outbound acquisitions of Western companies have grown in the past 1-2 years.

China Buys Up Spain’s Assets – WSJ

A debt-laden Spanish construction firm became the latest European company to unload assets onto eager Chinese buyers, as Europe’s debt woes force firms to look to China for cash.

State Grid Corp., China’s government controlled power-grid operator, said Tuesday it would buy high-voltage electricity transmission assets in Brazil from Spain’s Actividades de Construccion y Servicios SA for 1.86 billion reais ($938.2 million), including debt. The deal is State Grid’s second investment in Brazil and its fourth major investment overseas, and is the most recent in a string of deals in which a European company has looked to exit an investment amid financial troubles facing the region.

Click here to read the complete article from the WSJ’s website

Cash-Rich Japanese Firms Go on Global Buying Spree – WSJ

Flush with cash and bolstered by a strong currency, Japanese companies are in the midst of the biggest boom in overseas investment the country has ever seen.

On Tuesday, Japanese trading house Marubeni Corp. 8002.TO 0.00% said it agreed to buy U.S. grain handler Gavilon Group LLC in a deal that could be worth as much as $5.6 billion, including $2 billion in assumed debt. That would make the Gavilon purchase the biggest foreign acquisition for a Japanese company this year and the seventh-biggest globally, according to deal tracker Dealogic.

Click here to read the complete article from the WSJ’s website

The 21st century’s most important trade network – The Asia-Pacific triangle

Having followed, written about and participated in the growth of China – Latin America’s exchange over the past 10 years, I must say it is refreshing to see the increasing awareness around the globe of the growth of Asia-Pacific cooperation.  Every week news media around the world publish news and analysis pertaining not only to China – Latin America, but increasingly about the geopolitical triangle of the greater Asia-Pacific region.

Aljazeera added to the wealth today by publishing the transcript of a interview they conducted with former Peruvian Ambassador to China, and current Ambassador to the US - Harold Forsyth.  In the interview Aljazeera reporter Eddie Walshe discusses with Ambassador Forsyth his perspective on the growing importance of Asia-Pacific cooperation and more particularly, how Peru fits into the Asia-Pacific triangle of the Greater Asia region (with a special emphasis on China), North America and South America.

As someone who personally believes the growth of trade and exchange between nations of the Asia Pacific and the Americas (North & South) will be the most important network of exchange this century, I highly recommend giving it a read.

Click here to access Peru’s place in the triangle of Asia-Pacific security, published by Aljazeera

What people around the world define as the Asia-Pacific region varies widely, for your author (me) I consider it to include all nations, cultures and territories on both sides of the Pacific Ocean.  This means “Oceania,” despite being a region in itself must naturally be included.  It also tends to include India, because although India is usually not considered a “Pacific” nation, it is a major geopolitical power in this equation.

Within the Asia-Pacific region there is however a level of exchange and interaction which is far more significant when looking at the greater region as a whole — and that, in my opinion is the triangular interaction of North East Asia (China, South Korea, Japan), North America, and South America.  Of course, one could argue discounting Russia, India, Australia and the nations of SE Asia and leaves many players out of the equation. I only do so because their links to the America’s are relatively small when compared with China, South Korea and Japan.

Why is this triangular network so important you ask?  Let’s quickly review some facts which come to mind pertaining to a few specific categories — Economic output & International Trade, Commodity production/ consumption (energy, metals and agriculture), and geopolitical security

• The Asia-Pacific region includes the world’s three largest economies — The United States, China (PRC), and Japan.
• These three economies make up a large portion of global economic output, commodity consumption/production, and trade.
• In terms of commodity consumption & production you find within this triangle (to name a few):
• Top 5 iron ore producers – Brazil, China, Australia, India and Russia
• Top 4 iron ore consumers – China, Russia, Japan and South Korea
• A few of the top energy producers, Russia (#1), the US, China, Venezuela and ever more significant levels of energy production coming from Brazil and Canada
• The top 5 oil consumers – United States, China, Japan, Russia, and India
• The Top 5 copper producers – Chile, Peru, the US, China, Australia
• 3/5 of the top copper consumers – China, India & the US
• Major sources of precious metal production (Gold & Silver) Russia, China, Australia, Peru, Chile & the US
• Major sources of precious metal demand – China, & the US
• Major centers of global food production – Russia, the US and South America as a whole
• Major centers of food consumption – China, India, & the US
• Finally, the Asia-Pacific region includes many of the 21st century’s most potentially volatile geopolitical security issues. To name a few:
• US-China relations
• NE Asia which includes everything from
• The balance of power between China, Japan, and Korea (and Russia) … and ultimately how the US factors into this region
• The Korean Peninsula and all the related issues from re-unification of North & South Korea to proliferation of arms by North Korea
• The South China Seas
• The quagmire of complex inter-country relations in SE Asia
• Taiwan
• ETC

Rare question and answer Xinhua Exclusive on China- Latam relations

Thank you Xinhua News. Please click here to access the article from Xinhua News.

Yang Wanming, director-general of the the Department of Latin American and Caribbean Affairs of the Chinese Foreign Ministry, exchanged views with chinanews.com readers online on Tuesday afternoon.

 

Yang Wanming, director-generalof the Department of Latin American and Caribbean Affairs of the Chinese Foreign Ministry, answers questions from chinanews.com readers online on Jan 17, 2012. [Photo/Chinanews.com]

 

Topic: China-Latin America cooperation in culture

Q: How do China and Latin America cooperate in the field of culture?

A: China has opened 32 Confucius institutes in Latin America, covering almost all Latin American countries. Both sides also send art troupes to visit one another and conduct people-to-people exchanges. Many Chinese people like their football, music and dances and engage in studying Spanish and Portuguese. Many Chinese books have also been translated into Spanish and sold in Latin America.

Topic: Cooperation in energy

Q: What’s the current situation with Sino-Latin American energy cooperation? Some people think China is plundering energy resources there and uses it as a way to curb the US.

A: China is trying to carry out comprehensive cooperation with Latin American countries and its efforts have been well welcomed by them. The cooperation not only benefits the two parties, but also contributes to global peace, stability and prosperity. It started late and is on a relatively small scale, but has been developing fast. China imported 20.73 million tons of crude oil from Latin American countries in 2010, which accounts for 8.7 percent of China’s total import in that year. Venezuela has become China’s 4th largest oil provider. The two parties will explore cooperation on new energy. It’s totally based on equality and mutual benefit and will do no harm to the third party.

Topic: US view on China-Latin America relationship

Q: The relationship between China and Latin American countries has developed so fast. What do you think of the feeling in the US to this?

A: In recent years, the independence of Latin American countries is growing and its economic growth momentum becomes more diverse than before.

The rapid development of China-Latin America relations is on the basis of mutual benefit and win-win for both sides and is within the needs of Latin American countries’ diversified diplomacy and development strategy.

It will not only benefit development of both, but also contribute to the world’s stability and development.

China and the US have already established a consultation mechanism on Latin-America, and through four different consultations, the two parties have enhanced their mutual trust on this issue.

And the US has repeatedly stressed in their consultations that strengthening relations between China and Latin American countries will be good for Latin-America’s stability and development.

Topic: Chinese workers kidnapped in Colombia

Q: It was reported that several Chinese employees were kidnapped in Colombia by unidentified armed militants. How are they now? Could you release some information about the rescue efforts?

A: Four Chinese workers were kidnapped by some unknown armed militants in Caquetá province in Colombia on June 8, 2011. We have urged the Colombia authority to spare no effort to carry on the rescue work under the premise of guaranteeing the safety of hostages. Since then, the Chinese embassy in Colombia has kept in close cooperation and contact with Colombia’s relevant departments. The rescue work has not finished yet, but the safety of the four hostages can be guaranteed. Chinese companies are facing more risks as they go global on a larger scale. We need to increase our political backup and diplomatic guarantee to them, strengthen the consular protection and safeguard their legitimate interests. Meanwhile we advise Chinese people in Latin America to improve their sense of safety and precaution.

Q: How about China-Mexico relations?

A: China and Mexico are both developing countries and are working at enhancing people’s living standards. They hold the same positions on many international issues and regularly cooperate on these..

China and Mexico have some trade friction over trade imbalance problems, but we hope both sides can deal with the problems reasonably and from a development point of view.

We hope both can take active measures to promote the diverse, comprehensive and healthy development of the two countries’ economic and trade relations.

February 14 marks the 40th anniversary of diplomatic relations between China and Mexico. We believe the relations can become more comprehensive, steadier and healthier with the two countries’ joint efforts in the future.

Q: Can you talk about the relationship between China and Brazil?

A: Brazil is one of the biggest countries in Latin America and one of the emerging powers in the region. The China-Brazil relationship is one of the most important between China and Latin America.

In recent years, the strategic partnership between China and Brazil has made considerable progress. They maintain a good momentum of high-level exchanges and the political mutual trust is deepened.

Their economical cooperation is also deepening constantly, which has brought tangible benefits to people of both countries. Bilateral trade volume exceeded $80 billion in 2011. Investment cooperation in finance, energy, steel, and machine manufacturing has also made great progress, and is expanding constantly.

China and Brazil have active exchanges in science, technology and culture as well.

The cooperation in the fields of Earth resource satellites, agricultural technology and aviation is progressing continuously. And the cooperation in culture and education is also very close.

China’s Confucius Institute Headquarters opened two Confucius Institutes and a Confucius school in Brazil and Brazil’s important media institutions have sent many journalists to work in China.

China and Brazil are both developing countries and have broad and consistent interests on major international issues. The Chinese government attaches great importance to relations with Brazil and believes the two countries’ cooperation in various fields will make great progress with their joint efforts.

 

APEC summit catapults Peru into China’s mainstream news

Peru, China cooperation has bilateral benefits

LIMA, Nov. 18 (Xinhua) — Peru and China have enjoyed friendly relations which allow the development of business opportunities for both sides, Peruvian Prime Minister Salomon Lerner told Xinhua on Friday.

Xinhua News - CN President Hu Jintao with PE President Ollanta Humala

Lerner also confirmed that the Peruvian government doesn’t have intention to review or modify the Free Trade Agreement (FTA) signed between Peru and China, which came into force since 2010.

The 5th China-Latin America Business Summit will be held in Lima on Nov. 21 and 22. In this framework, Lerner said Peru offers “a series of possibilities of investment” and cooperation in many fields.

“I reassert the invitation to the Chinese companies to explore possibilities of association with Peruvian companies,” he added.

Click here to read the full article direct from Xinhua News

Leaders of China, Peru seek new cooperation

HONOLULU – Chinese President Hu Jintao met with Peruvian President Ollanta Humala on Friday, with both sides urging deeper economic cooperation.

Humala also called for more Chinese firms to invest in Peru.

The duo met on the sideline of the 19th Economic Leaders’ Meeting of the Asia-Pacific Economic Cooperation (APEC).

During the meeting, Hu said Sino-Peruvian ties are at a strategic high, and he pledged the two sides would sustain high-level communication on matters of mutual concern

Click here to read the full article direct from The China Daily

Chinese president calls for stronger ties with Peru

HONOLULU, United States, Nov. 11 (Xinhua) — Chinese President Hu Jintao met with his Peruvian counterpart Ollanta Humala Tasso here Friday, and the two pledged to work together to further advance the strategic partnership between the two countries.

The two are in Hawaii to attend the 19th Economic Leaders’ Meeting of the Asia-Pacific Economic Cooperation (APEC) forum scheduled for Saturday and Sunday.

Noting that both China and Peru are important developing countries in the Pacific Rim, Hu said China always treats and handles its relations with Peru from a strategic height. He put forward a four-point proposal to further boost bilateral ties.

Click here to read the full article direct from Xinhua News

China / India/ Russa (ASIA) – Latin America News Feast with a dash of US for dessert

My daily news radar (online subscriptions / searches) for all that is China – South America went off like wild fire today. Here’s some articles worthy giving a read.

Article 1: Russia Lends Venezuela $4 Billion in Return for Oil Projects - By Daniel Cancel of Bloomberg News

Russia agreed to lend Venezuela $4 billion through 2013 for defense spending in return for gaining access to heavy crude and offshore gas fields in the South American country.

Russia’s OAO Rosneft and OAO Gazprom signed a cooperation accord with Venezuelan state oil company Petroleos de Venezuela SA late yesterday at a ceremony in Caracas led by President Hugo Chavez and Russian Deputy Prime Minister Igor Sechin.

“We’re working on large-dimension projects from oil, gas and petrochemicals to finance, banking and trade,” Chavez said on state television.

Click here to read the full article direct from the Bloomberg

Article 2 = China’s JAC Motors to build plant in Brazil - By Vivian Pereira and Brad Haynes of Reuters News

To Note:
* 80 pct of capital will come from local SHC Group
* Government driving up the cost of imported carsBy Vivian

Pereira and Brad HaynesSAO PAULO, Oct 7 (Reuters) – The Brazilian operator of China’s JAC Motors brand announced a 900-million-real ($510 million) investment to build a factory producing affordable cars in the world’s No. 4 auto market.

JAC Motors will provide 20 percent of the capital, with the rest coming from the local SHC Group run by businessman Sergio Habib, SHC said in a statement on Friday.

The plant in Bahia state, expected to produce 100,000 vehicles annually beginning in 2014, will be the second producing Chinese-branded cars in Latin America’s largest economy, where authorities are pushing up the cost of imported cars.

Click here to read the full article direct from the Reuters News

Article 3: Friction between China & Bolivia

Bolivian energy minister alleges deception by Jindal Steel in big iron ore mining deal, courtesy of the Associated Press via the Washington Post

LA PAZ, Bolivia — A senior Bolivian official is threatening to end the government’s contract with India’s Jindal Steel & Power Ltd. over its alleged failure to meet investment commitments in a huge iron ore mine.

Energy Minister Jose Luis Gutierrez says Jindal deceived Bolivia in failing to honor its end of the biggest mining investment of President Evo Morales’ nearly six-year tenure.

Click here to read the full article direct from the Associated Press via the Washington Post

Article 4 = Ecuador firm wants to sell rice in the name of Gandhi - By Maneesh Chhibber of the IndianExpress.com

An Ecuador-based company has attempted to use the name and photograph of Mahatma Gandhi for marketing its rice. But an Indian lawyer has challenged the move before the Trademark Office of Ecuador. The case is scheduled to come up for hearing tomorrow.

According to Lalit Bhasin, who is also president of the Society of Indian Law Firms, the owner of the Ecuadorian company, Valverde Munoz, applied for grant of trademark for the name and label of “Arroz Gandhi” (Arroz means rice).

Click here to read the full article direct from IndianExpress.com

Article 5: Mitt Romney on Mexico, China and defense – By Dr. James M. Lindsay and courtesy of CNN News

Dr. James M. Lindsay you would think knows about the topic, as CNN makes a special point to note — Dr. James M. Lindsay is a Senior Vice President at the Council on Foreign Relations and co-author of America Unbound: The Bush Revolution in Foreign Policy, and whom writes his own blog, which you can access by clicking here.

By James M. Lindsay, CFR.org

Mitt Romney has taken exception to Rick Perry’s comment over the weekend that he would consider sending American troops into Mexico to help end the drug war raging there. Romney told the New Hampshire Union Leader that Perry’s suggestion is “a bad idea:”

Let’s build a fence first, and let’s have sufficient border patrol agents to protect it. And if the Mexican government wants us to help it with logistics, intelligence, satellite images, I’m sure we can provide the sort of support we provided in Colombia.

You can expect to hear more about Mexico at next Tuesday’s GOP debate. If Romney makes the Colombia comparison again, he probably should explain what the United States did there. Most people don’t know.

Click here to read the full article direct from CNN