TPT July 2013

Global Marketplace

› If the US decides to take Mr Nasser’s advice, it will likely have the wherewithal to become an exporter. Citing a 2012 estimate from the US Energy Information Administration, Mr Stewart of Market Watch noted that the country may expect an increase in natural gas output from 23 trillion cubic feet in 2011 to 33.1 trillion cubic feet in 2040, driven largely by shale production. Over the period 2011-2019 the expectation is for an increase in crude oil production from 5.7 million barrels a day to about 7.5 million bpd. But the notion of energy export may take some persuasion. According to Market Watch , Cheniere Energy Inc, which is building a liquefied natural gas (LNG) export terminal in Sabine Pass, Louisiana, is the only company to hold permits to export gas out of the lower US where the bulk of shale production is centred. Several other companies have applied for export licences but await regulatory approval. Trade Punching well above its weight, Iceland enters into a free trade agreement with China An accord meant to eliminate most tariffs over the next few years was signed 15 April by trade officials during a state visit to Beijing by Prime Minister Johanna Sigurdardottir of Iceland. When finalised it will unite two startlingly mismatched economies.

Commented David Jolly of the International Herald Tribune , “Iceland’s 2011 gross domestic product of $14bn was little more than a rounding error in China’s gross domestic product that year of $7.3tn.” Moreover, trade between the two countries is small by global standards. Iceland’s exports to China last year totalled $61mn, while China sent goods and services valued at $341mn in the other direction. Even so, in Mr Jolly’s view the first such Chinese agreement with a European country is not necessarily a merely token affair. As global warming and the retreat of polar ice render the Arctic increasingly accessible, China is seeking to join the Arctic Council, an intergovernmental body that promotes cooperation in the region, as a permanent observer. Its new ally in the North Atlantic could perhaps be of assistance to China in its quest for more influence in that area. A day after announcing their trade accord, Reykjavik and Beijing issued a joint statement calling for new bilateral cooperation on “human rights, gender equality, labour issues, and Arctic affairs [italics ours], as well as cooperation on geothermal development, culture, education, and tourism.” The trade deal with Iceland will not mean backdoor access to the European market for China. Iceland is not a member of the European Union; and if it were eventually to join the bloc it would have to terminate all of its bilateral trade deals. But Iceland does enjoy access to the single market through

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July 2013