TPT July 2013

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Global Marketplace
July 2013 75
› 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