The UK is preparing to champion genetically modified crops in Europe in an attempt to overturn entrenched resistance among many EU members, including Austria and France. UK Environment Secretary Owen Paterson is to say in a speech later today that the UK Government has a duty to explain the benefits of genetically modified crops to the British people. He will argue that GM has significant benefits for farmers, consumers and the environment and the UK and Europe risk being left behind unless GM technology is embraced. However, green groups say this new push for GM is dangerous and misguided. The EU is under pressure to ease its stance amid fears of supply shortages and increased prices because of Europe’s aversion to GM products. (Financial Times*, BBC)
Policy & Research
Clothing companies urged not leave Bangladesh
Global clothing firms should lobby governments to improve factory safety in problem countries rather than move manufacturing elsewhere, an anti-corruption group has said. Recent events such as the collapse of Bangladeshi garment factory in April that killed more than 1,000 workers, has sparked fears that global corporations may move manufacturing, decimating the economy of countries that rely heavily on clothing exports. 80 percent of Bangladesh's exports come from the garment industry. The Bangladesh, Cambodia and Indonesia branches of Transparency International said companies turning away from Bangladesh send the wrong signal about their commitment to workers’ rights and fighting corruption and that they should instead push governments to stamp out corruption with legal reforms and invest more resources into safety inspections. (Supply Management)
Global warming to cause extreme droughts in India
Global warming could lead to more extreme droughts in large parts of India, resulting in widespread food shortages and hardship in the country, in the next few decades, a new World Bank report warned today. The impact of a possible global temperature rise of 2 degrees celsius in the next few decades threatens to trap millions of people in poverty, according to the report. The soaring temperatures will also drive regular food shortages in Sub-Saharan Africa. Shifting rain patterns in South Asia due to warming could leave some parts under water and others without enough water for power generation, irrigation, or drinking, the report said. (Times of India)
Tax
Dolce and Gabbana sentenced to jail for tax evasion
Italian fashion designers Domenico Dolce and Stefano Gabbana have been handed suspended prison sentences of a year and eight months and fined nearly half a billion euros by a court in Milan for evading millions in taxes. A judge ruled that the pair, who are the owners of the multinational fashion group Dolce & Gabbana, had sold their brand to a Luxembourg-based holding company in 2004 in order to avoid declaring more than €100m in royalties. They were also fined nearly €500m, opening up the possibility that tax police may seize shares in the company and assets. The case arose as a result of a clampdown by Italian finance police on tax evasion. (Financial Times*)
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