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Asean

Ban Grows on Japanese Food Imports

The number of governments that have banned Japanese food imports due to fears of radiation contamination is growing. On Friday, China joined Singapore and the U.S. in halting some imported foods from radiation-affected areas of Japan. Other governments are expected to take similar precautionary measures as Japan struggles to contain the damage from the Fukushima nuclear plant. The situation at the crippled Fukushima nuclear plant remains precarious after several workers there suffered radiation burns while attempting to cool one of the damaged reactors. Although the extent of contamination remains unclear, the damage to farms and livelihoods is spreading. At one of Japan’s busiest fish markets, Yasumichi Tanaka said the daily catch is dwindling. “Fish supplies from the radiation contaminated regions have been totally halted.” Produce markets also have taken a hit. Retailers say some customers are avoiding all vegetables, not just those likely to be contaminated. International orders have suffered, as well. On Friday, China joined the growing list of countries that have halted food imports from affected regions. State TV reported the banned items included milk products, fruit, vegetables and seafood. In Singapore, where some Japanese foods already are banned, restaurant manager Connie Hon said her customers are worried. “Consumer confidence is yes, somewhat shaken, I would say, amongst some of the Singapore populace, but that can’t be helped, I think.” And at another popular restaurant, manager Nakakita Yoshihiko said the menu has changed. “First of all, they want to know the food comes from where and is it safe or not? These are two major questions and it’s very easy to answer. It does not come from Fukushima, and Singapore is able to check all the items to make sure the food is safe.” Canada, Australia and Russia have adopted similar bans on Japanese foods. Health and security researcher Bill Durodie said more countries are likely to follow. “The reality is the United States made the decision a few days ago and it’s almost inevitable that once a country that size has decided to act in that way, others will follow suit.” But an expert on the politics of energy said the danger of radiation-contaminated foods is greatly exaggerated. Charles Ebinger at the Brookings Institution told VOA that an average adult would have to drink a quart of contaminated milk each day for one year to receive the same radiation as one CAT scan. Ebinger said the one certainty is the economic damage to Japan’s northeast. “That particular part of Japan is deeply dependent on agriculture and fish, so I think inside the Japanese economy, we’ll see pockets of areas that have been exposed to contamination, see their economy hurt very much.” Many European countries have yet to announce bans on Japanese food imports. Germany and France have started screening food samples.  They say there will be no restrictions on Japanese food imports, however, until the test results are back.

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The number of governments that have banned Japanese food imports due to fears of radiation contamination is growing. On Friday, China joined Singapore and the U.S. in halting some imported foods from radiation-affected areas of Japan. Other governments are expected to take similar precautionary measures as Japan struggles to contain the damage from the Fukushima nuclear plant.

The situation at the crippled Fukushima nuclear plant remains precarious after several workers there suffered radiation burns while attempting to cool one of the damaged reactors.

Although the extent of contamination remains unclear, the damage to farms and livelihoods is spreading. At one of Japan’s busiest fish markets, Yasumichi Tanaka said the daily catch is dwindling. “Fish supplies from the radiation contaminated regions have been totally halted.”

Produce markets also have taken a hit. Retailers say some customers are avoiding all vegetables, not just those likely to be contaminated.
International orders have suffered, as well.

On Friday, China joined the growing list of countries that have halted food imports from affected regions. State TV reported the banned items included milk products, fruit, vegetables and seafood.

In Singapore, where some Japanese foods already are banned, restaurant manager Connie Hon said her customers are worried. “Consumer confidence is yes, somewhat shaken, I would say, amongst some of the Singapore populace, but that can’t be helped, I think.”

And at another popular restaurant, manager Nakakita Yoshihiko said the menu has changed. “First of all, they want to know the food comes from where and is it safe or not? These are two major questions and it’s very easy to answer. It does not come from Fukushima, and Singapore is able to check all the items to make sure the food is safe.”

Canada, Australia and Russia have adopted similar bans on Japanese foods. Health and security researcher Bill Durodie said more countries are likely to follow. “The reality is the United States made the decision a few days ago and it’s almost inevitable that once a country that size has decided to act in that way, others will follow suit.”

But an expert on the politics of energy said the danger of radiation-contaminated foods is greatly exaggerated. Charles Ebinger at the Brookings Institution told VOA that an average adult would have to drink a quart of contaminated milk each day for one year to receive the same radiation as one CAT scan.

Ebinger said the one certainty is the economic damage to Japan’s northeast. “That particular part of Japan is deeply dependent on agriculture and fish, so I think inside the Japanese economy, we’ll see pockets of areas that have been exposed to contamination, see their economy hurt very much.”

Many European countries have yet to announce bans on Japanese food imports. Germany and France have started screening food samples.  They say there will be no restrictions on Japanese food imports, however, until the test results are back.

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Ban Grows on Japanese Food Imports

Asean

ASEAN weathering the COVID-19 typhoon

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Vietnam's Prime Minister Nguyen Xuan Phuc addresses a special video conference with leaders of the Association of Southeast Asian Nations (ASEAN), on the coronavirus disease (COVID-19), in Hanoi 14 April, 2020 (Photo:Reuters/Manan Vatsyayana).

Author: Sandra Seno-Alday, Sydney University

The roughly 20 typhoons that hit Southeast Asia each year pale in comparison to the impact on the region of COVID-19 — a storm of a very different sort striking not just Southeast Asia but the world.

 

Just how badly is the COVID-19 typhoon thrashing the region? And what might the post-crisis recovery and reconstruction look like? To answer these questions, it is necessary to investigate the strengths and vulnerabilities of Southeast Asia’s pre-COVID-19 economic infrastructure.

Understanding the structure of the region’s economic house requires going back to 1967, when Southeast Asian countries decided to pledge friendship to one another under the ASEAN framework. While other integrated regions such as NAFTA and the European Union have aggressively broken down trade barriers and significantly boosted intra-regional trade, ASEAN regional economic integration has chugged along slower.

Southeast Asian countries have not viewed trade between each other as a top priority. The trade agreements in the region have been forged around suggestions for ASEAN countries to lower tariffs on intra-regional trade to within a certain range and across limited industries. This has lowered but not eliminated barriers to intra-regional trade. Consequently, a relatively significant share of Southeast Asian trade is with countries outside the region. This active extra-regional engagement has resulted in ASEAN countries’ successful integration into global value chain networks.

A historically outward-facing region, in 2010 around 75 per cent of Southeast Asian commodity imports and exports came from countries outside of ASEAN. This share of extra-regional trade nudged closer to 80 per cent in 2018. This indicates that ASEAN’s global value chain network embeddedness has deepened over time.

Around 40 per cent of ASEAN’s extra-regional trade is with the rest of Asia. From 2010 to 2018 Southeast Asian countries forged major trade relationships with four Asian countries: China, Japan, South Korea and India. Outside Asia, the United States is the region’s major trading partner. ASEAN’s trade focus on Asia’s largest markets is not surprising. Countries tend to establish trade relationships with large, geographically close, and culturally similar markets.

Fostering deep relationships with a few large markets, however, is a double-edged sword. While it has allowed ASEAN to benefit from integration in global value chains, it has also resulted in increased vulnerability to the shocks affecting its network connections.

ASEAN’s participation in global value chains has allowed it to transition from a net regional importer in 1990 to a net regional exporter in 2018. But the region’s deep embeddedness in a small and tightly-coupled network cluster of extra-regional global value chain partners has exposed it to disruption to any and all of its external partners. By contrast, ASEAN’s intra-regional trade network structure is much more loosely-coupled: a consequence of persistent intra-regional trade barriers and thus lower intra-regional trade intensity.

In the pre-COVID-19 period, ASEAN built for itself an economic house held up by just five extra-regional markets, while doing less to expand and diversify its intra-regional trade network. The data shows that ASEAN trade became increasingly concentrated in these few external markets between 2010 and 2018.

This dependence on a handful of markets does not bode well for risk and crisis management. All of the region’s major trading partners have been significantly affected by COVID-19 and this in turn is blowing the ASEAN economic house down.

What are the ways forward? The immediate task at hand is to get a better picture of the region’s position in global value chain networks and to get on top of managing its network risk exposure. Already there are red flags around the region’s food security arising from its position in food value chains. It is critical to look for ways to introduce flexibility into existing supply chains for greater agility in responding to crises.

It is also an opportune time for ASEAN to harness the technology transfer gains of global value chain participation and invest in innovation-driven diversification of products and markets. The region’s embeddedness in global value chain networks certainly places it in a strong position to readily access large export markets not just in Asia but also Europe and the Americas.

Over the longer term, ASEAN is faced with the question of whether it should seriously look…

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Markets

Tiger Trade Launches SGX Trading, Meeting Demand from Asian Investors

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Asean

Can Asia maintain growth with an ever ageing population ?

To boost productivity in the future, Asian governments will have to implement well-targeted structural reforms today.

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Asia has been the world champion of economic growth for decades, and this year will be no exception. According to the latest International Monetary Fund Regional Economic Outlook(REO), the Asia-Pacific region’s GDP is projected to increase by 5.5% in 2017 and 5.4% in 2018. (more…)

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