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NEW ZEALAND BALKS AT US FOOD SECURITY RULES

WELLINGTON - Food and transportation companies could have to spend billions of dollars under a rule proposed by the American government that would make it easier to trace contaminated food if there was an attack on supplies, reports the New Zealand Herald. The rule would cover imported foods -- such as fruit, vegetables, dairy foods and fish from New Zealand -- and would require companies to keep detailed information on the manufacturing and shipping chain for products, including records on manufacturers, processors, airlines, railroads and trucking companies. The US Food and Drug Administration (FDA) recently proposed the rule that would give officials vital information to quickly trace contaminated food, and could cost food handlers between $140 million and $6.7 billion a year. "There are many experts that think the probability is great that the next terrorist event will be a food-related event," deputy FDA Commissioner Lester Crawford said. Crawford said food prices should not increase due to the new record-keeping requirements if the proposal is adopted. But some New Zealand-based industry groups said the record-keeping proposal was burdensome and costly. About 1.23 million facilities owned by more than960,000 US and foreign-based companies would be included in the new rules. Restaurants, farms and meat plants are exempt. Public comments on the rule will be accepted until early July. The FDA said it plans to publish a final rule no later than December 12. The FDA proposal was the last in a series of steps the agency must take under anti-bioterrorism measures passed by the US Congress last year.
 
ROMANIA CAN DRAW ON IMF FUNDS

WASHINGTON, DC - The International Monetary Fund (IMF) has completed its third review of Romania's economic performance under an 18-month Stand-By Arrangement and approved the extension of the arrangement until October 15, 2003. The decision enables Romania to draw $76 million from the IMF immediately. The arrangement was approved in 2001 for $413 million, and so far, Romania has drawn $186 million of the total. The IMF praised Romanian authorities, saying that in 2002 "economic growth
was strong, inflation continued to decline, and the external current account balance improved significantly." The Romanian government, the agency said, is "committed to implementing measures to consolidate macroeconomic stabilization, ensure robust and lasting economic growth, and prepare for EU accession."

GARMENT MAKERS URGE LIFTING ON MYANMAR BAN

YANGON - Local garment makers called on a US trade group to press for the lifting of the ban on textile and apparel goods from Myanmar, saying the boycott aimed at the military government was "unfair" and could harm more than 300,000 workers. The American Apparel and Footwear Association's ban on Myanmar textiles, apparel and footwear is based on "false allegations" about labor conditions, said Myint Soe, chairman of the Myanmar Garment Manufacturers' Association. The AAFA, which says in its Web site that its members account for approximately 80% of wholesale apparel sales of US companies, said in a recent statement that it was mounting the campaign "due to the ongoing cruel and repressive nature of the ruling regime" in Myanmar. The country - formerly known as Burma - has been ruled by a series of military governments for more than four decades. The current crop of generals came to power in 1988 after crushing a pro-democracy uprising, a move that prompted an international outcry. "We firmly declare that no garment factory in Myanmar uses forced labor nor child labor. All factories adhere to the existing laws and international standards," Myint Soe told reporters. Soe invited representatives from the group to visit Myanmar to investigate whether labor conditions at garment factories are up to international standards and urged them to withdraw the "irresponsible announcement." The Myanmar Garment Manufacturers' Association represents about 400 garment factories. More than 95% of the factories are state-owned while the remaining 5% are either joint ventures or wholly owned by foreign companies.

WIRE HANGER TARIFF REJECTED

President Bush has rejected a petition from domestic producers for additional tariffs on imports of wire hangers from China.  "I find that import relief would have an adverse impact on the US economy clearly greater than the benefits of such action," Bush said. Tariffs on Chinese wire hangers would affect domestic producers unevenly, Bush noted, and favor one business strategy over another. Moreover, the President stated, most domestic producers have responded to the competition by modernization and expansion into complementary services. "The facts of this case indicate that imposing additional tariffs on Chinese imports would affect domestic producers unevenly, favoring one business strategy over another. While most of the producers would likely realize some income benefits, additional tariffs would disrupt the long-term adjustment strategy of one major producer, which is based in part on distribution of imported hangers, and cause that producer to incur substantial costs," the President said. In addition, the President said, "most domestic producers, including the petitioners, have begun to pursue adjustment strategies. While these strategies have included consolidation, modernization of production facilities, and expansion into complementary products and services, domestic producers are also expanding their use of imports." Moreover, he said, after 6 years of competing with Chinese imports, domestic producers still account for over 85% of the US wire hanger market. With this dominant share of the market, domestic producers have the opportunity to adjust to competition from Chinese imports even without import relief."

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