Belarus expands economic cooperation with Asia and Africa
On May 22nd, Belarus’ Prime Minister Mikhail Myasnikovich said at a meeting with Deputy Chairman of the Standing Committee of the National People’s Congress Lu Yungsyan that Belarus and China were implementing joint investment projects worth USD 16 billion
On the same day, Belarusian Vice-Premier Anatoly Tozik and president of a Chinese company „Harbin Dongjin Group” Zhang Datszyun discussed the results of collaboration in joint ventures in 2011 and the prospects for expanding the economic cooperation. Since 2010 combine harvesters production operate in China as joint ventures with “Gomselmash” [Gomel agricultural machines] and “Minsk Tractor works”. In 2011, more than 400 corn and forage harvesters and 50 tractors were sold.
Mr. Tozik also met with representatives of Chinese Engineering Corporation SAMS (China CAMC Engineering Co). In Belarus, this Chinese company is implementing a number of large investment projects, for instance, a plant construction to produce bleached pulp cellulose at JSC “Svetlogorsk Pulp and Paper Mill” with 400 tons production capacity and the establishment of Sino-Belarusian industrial park.
During the meeting parties agreed to register as soon as possible a joint venture to manage Sino-Belarusian industrial park. Currently, about 10 large multinational companies are interested in placing their production in the park.
Administrative Director of the High-Technology Park, Valery Tsepkalo proposed to Lou Yungsyan to expand bilateral cooperation in the computer and information technology field and implement joint projects fulfilling orders from the third countries.
Chinese investment potential looks great at this stage. The People’s Bank of China is the world’s largest foreign reserves holder (USD 3.305 trillion on April 1st, 2012). According to the IMF, in 2017 China will become the largest economy in the world. Thus, Greater China GDP (including mainland China, Hong Kong, Taiwan and Singapore), calculated at purchasing power parity, in 2017 will reach a record-breaking USD 22.518 trillion.
Moreover, Belarus intends to intensify economic cooperation with Bangladesh. On May 21st – 24th the first official visit of Bangladesh Foreign Minister Dipu Moni took place and the parties discussed how to increase the supply of Belarusian potash fertilizers and agricultural machinery in the Bangladeshi market. This year, potash fertilizers were not supplied to Bangladesh (Bangladesh was not satisfied with the price increase).
During the visit, Dipu Moni met with President Alexander Lukashenko, Prime Minister Mikhail Myasnikovich, with the leadership of the State Military-Industrial Committee, the Belarusian Potash Company, Minsk Tractor Plant, the Plant “Agromash” and others. It is projected that in Q4 of 2012, Belarusian Prime Minister will visit Bangladesh too.
In turn, Belarusian group of companies “Triple” (the main shareholder is Yury Siskin) is planning to build a tractor plant in Pakistan (Sindh). “Triple” representatives, Chepikov Alex, Andrey Slesarev and Alexander Kohov held talks with Province Minister Syed Qaim Ali Shah and Chairman of the Investment Board of Pakistan Saleem H Mandivwala.
A member of the Investment Board Zubair Motiwala said Pakistan’s current demand for tractor machinery exceeds 100 thousand tractors. Pakistan proposed “Triple” to build a new factory site in the Hub industrial area, Pakistan.
On May 21st – 26th, a business delegation from South Africa paid a visit to Belarus. The delegation included representatives from South African companies Africa Union Holding, Pillman and Variquip. During talks with the Ministry of Industry of Belarus, MTZ, MAZ, JSC “Bobruisk”, “Gomselmash” and Scientific Center for Agriculture of NAS, the parties discussed the possibility to open an assembly production of Belarusian agricultural equipment in South Africa.
For reference. The National Statistics Committee data says the volume of foreign trade between Belarus and Asian countries decreased in Q1 2012 compared with the identical period in 2011 by 16.3% to USD 1.705 billion. Foreign trade turnover between Belarus and Africa in Q1 2012 has decreased by 20.3% to USD 139.755.
According to Decree No. 221 of June 23rd, 2017, deadlines for the completion of foreign trade operations have been extended from 90 to 180 days for exports and from 60 to 90 days for imports. Delayed payments entailed a fine up to 2% of the transaction cost for each day of the delay, but could not exceed the total cost of the transaction. Most companies, when working with new counterparties, require a deferred payment for a period of three to six months. Due to the new regulation, violations are likely to reduce in number, so as the fines. Trade enterprises are likely to expand the assortment list due to the supply of new products in small lots, and the assortment list of exported Belarusian goods could expand, too. The new terms for completing foreign trade transactions would enable medium and small companies on the foreign trade market, exporters and importers are likely to grow in number and the geography of export-import operations could expand.