U.S. gasoline stockpiles fell sharply over the past week, while inventories of crude oil and other refined fuels increased, the Energy Department reported Wednesday.

In the week ending April 6, the nation's gasoline supplies plunged by 5.5 million barrels to 199.7 million, the department said in its weekly survey of petroleum inventories.

Analysts had been expecting a 1.3 million barrel decline in gasoline inventories.

The sharp fall in gasoline supplies came amid strong demand as summer driving season is coming soon.

Gasoline demand averaged 9.4 million barrels per day over the past four weeks, or 2.5 percent higher than the year-ago period, according to the department.

U.S. commercial crude oil inventories, however, rose by 700,000barrels last week to 333.4 million. But the gain was smaller than the 1.6 million barrels expected by analysts.

Meanwhile, stocks of distillate fuels, which include heating oil and diesel, increased by 100,000 barrels to 118.1 million barrels. That was defying analysts' expectations of a decline of 900,000 barrels.

The figures for commercial crude oil inventories do not include the U.S. Strategic Petroleum Reserve, which currently holds crude oil of about 689 million barrels.

The Third Network of East Asian Think-Tank (NEAT) Financial Cooperation Conference, held in Shanghai on April 7, brought the issue of "establishing a unified currency in East Asia" to the table.

Also discussed at the meeting were topics including the "post Chiang Mai system" and the "Asian bond market."

It is possible, in the foreseeable future, that East Asian countries form a unified currency system, said Wu Jianmin, spokesman for the Chinese People's Political Consultative Conference and president of the China Foreign Affairs University, in an interview with the First Financial Daily.

Currently currency swap transactions under the Chiang Mai Initiative (CMI) have reached a total volume of US$79 billion, according to Wu. It is expected to reach US$100 billion in 2008.

CMI is an agreement signed by 13 finance ministers of the Association of Southeast Asian Nations (ASEAN) and China, Japan and the Republic of Korea, or ASEAN + 3 countries, on the Second ASEAN + 3 Finance Ministers Meeting in Chiang Mai, Thailand in November 1999. CMI aims to create a network of bilateral swap agreements among ASEAN + 3 countries, to address short-term liquidity difficulties in the East Asia region and to supplement the existing international financial agreements.

The CMI system needs to enlarge its scale, extend its functions from the current "rescuing" and assistance to combat financial crisis to others like monitoring hot money and macro-policy adjustment, said Wu. In addition, he suggested to establish some form of "East Asian cooperative reserve fund" by around 2015.

However, Wu pointed out, cooperation among the East Asian countries is still focused in the trade area. Within the ASEAN + 3 region, international trade in the area accounts for 55 percent of the total international trades by the countries.

The figure for EU is 65 percent but that for the North American Free Trade Area is 45 percent. The financial cooperation between ASEAN + 3 countries is comparatively underdeveloped.

Outbound capital flow from these countries are largely long-term investment, while inbound flows are often short-term speculative hot money, which results in high risks for financial crisis, said Bank of China vice president Zhu Min.

The US$79 billion swap transactions under CMI have effectively reduced the chances for another financial crisis and contributed to regional financial stability, but still the CMI system needs to enlarge its scale and extend influences further, Wu stressed.

As for the proposed unified East Asian currency unit or currency index that stirs heated debate among the countries, Wu said it is understandable that so much discrepancy emerged. He believed that there is a concrete demand by the countries to establish a unified currency similar to the euro.

By rough estimation, the cost from currency exchange in international trades accounts for 20 percent of the total. A unified currency may reduce trading cost significantly.

However, it is very hard to persuade a country to give up its constitutional right of issuing own currency. off To develop a proper solution to the problem likely to be accepted by the countries needs great efforts in conducting systematic study, discussion, negotiation and cooperation, which is likely to be a painful and lengthy process.

The first and most urgent step, said Wu, is to set up a cooperative research mechanism to make thorough exploration into the issue finding out the critical points of the problem, maximizing common interestsin the new currency system.

On this purpose, Wu suggested to officially start up a systematic study of the "East Asian unified currency" or "East Asian currency index" issues.

US Trade Representative Susan Schwab said Monday that the United States is filing a case against China at the World Trade Organization (WTO) for lax enforcement of copyright violations and trademarks. Schwab said that the US will also file a second challenge to China's existing trade barriers, which has hurt the sale of US-produced movies, music and books. The two cases will enter a 60-day consultation period during which the US and China will attempt to resolve their differences through negotiation. If the bilateral negotiations reach an impasse, WTO hearing panels will decide the case.

In February, Schwab announced that the the US was bringing a case against Chinese subsidies at the WTO. The Bush administration has come under increasing pressure to address Sino-US trade relations after the Democrats took control of Congress. In 2006, the total US trade deficit amounted to $765.3 billion dollars, with China accounting for $232.5 billion.

Russia kicked off its own Global Navigation Satellite System (GLONASS), a competitor to the U.S. GPS and Europe's Galileo, in October 1982, when the first satellite of the system was launched.

So far, 19 GLONASS satellites have been put into orbit, the Interfax news agency said, citing anonymous source with the Central Research Institute of Machine-Building.

However, only 12 satellites are serving as the mission requires. One is waiting to be put into use, three were shut down for technical maintenance and the other three has been withdrawn from service.

The GLONASS service now covers 66 percent of Russia's territory and requires 18 satellites in orbit to implement full navigational functions, and 24 satellites for a global navigation service.

"We shall maintain such group by 2011 with the launch of the new-generation spacecraft GLONASS-K. The GLONASS system is in active development and is being renewed according to a set timetable," Perminov said.

Russian President Vladimir Putin has urged to take advantage ofthe satellite navigation system for the country's economic development, and First Deputy Prime Minister Sergei Ivanov has claimed that the Russian Federal Space Agency "will fulfill its state-financed obligations" and complete the project.

South Korea plans to start free trade agreement (FTA) talks with the European Union (EU) as early as next month with the goal of striking an accord by 2008.

"Should the EU members reach an internal consensus by the end of this month, Korea and the EU could hold the first round of FTA talks in Seoul in early May,'' said Kim Han-soo, a director general of the Ministry of Foreign Affairs and Trade (MOFAT).

The EU is the second largest market for Korean exports following China. Last year Korea's exports to the European economic bloc reached $49.2 billion, exceeding $43.2 billion to the United States.

Days after Korea concluded its free trade talks with the U.S. on April. 2, Seoul officials began to stress the necessity of signing pacts with other economic superpowers such as China and the EU.

The EU also has been showing eagerness to establish an FTA with Korea since the latter started bilateral negotiations with the U.S. last June.

Korea and the U.S. held negotiations in 19 sectors but the number of negotiation sectors with the EU is expected to remain at about 10, government officials said.

About 50 Korean negotiators are expected to engage in the talks with the EU, compared with 150-180 in talks with the U.S.

Despite the smaller scale, the negotiation period could be longer than the KORUS FTA talks which were wrapped up in 10 months after the first round of talks in June 2006.

The two sides have the goal of concluding the talks by the end of 2008. But unlike the Korea-U.S. agreement in which the U.S. struggled to end the talks three months before George W. Bush's trade promotion authority (TPA) _ granted by the U.S. Congress _ expires on July 1, 2007, there is no time limit in the coming Korea-EU FTA talks.

They are likely to engage in heated debates in opening such sectors as the automobiles, agriculture and pharmaceuticals markets.

European countries including Germany, France and the United Kingdom will focus on the Korean automobile and agricultural markets while Korea will set its sights on electronic products and motor vehicles.

Effects from the removal of tariff barriers will be relatively high given the average tariff imposed on Korean products by EU members reaches 4.2 percent compared with about 3 percent by the U.S.

In 2005, the EU's gross domestic product reached $13.5 trillion, compared with $12.5 trillion of the U.S. and $4.6 trillion of Japan.

"Following the FTA with the U.S., now we expect to strike a deal with the EU quickly,'' Minister of Finance and Economy Kwon O-kyu told reporters last Wednesday. He also said it is very important to sign a deal with China.

Last August, Lee Hee-beom, chairman of the Korea International Trade Association (KITA), said he wants Korea to push for an FTA with the EU if the European economic bloc wishes to negotiate one.

The EU is also moving to hold free trade talks with other countries including the Association of Southeast Asian Nations (ASEAN). But its FTA targets do not involve the U.S. or Japan.

Only two developed nations _ Canada and Australia _ have signed FTAs with the U.S.

China appreciated the fact that the ROK recognized China as a full market economy, Wen said. China-ROK trade volume has increased by 26 times since the two countries forged diplomatic ties in 1992, to 130 billion dollars in 2006.

"The close trade ties between China and the ROK are based on the principles of equality, mutual benefit and complementarity," Wen said. Wen cited a target set by Chinese President Hu Jintao and ROK President Roh Moon-hyun of trade worth 200 billion U.S. dollars by 2012.

The target was set by Hu and Roh during their meetings in 2005 and 2006.

Hu and Roh also agreed on five investment and trade liberalization measures and defined 12 key areas of cooperation. "As a result of economic globalization, China-ROK trade ties have entered a new era, requiring us to expand cooperation, improve quality and cope with challenges together," Wen said.

Wen urged the two countries to work more closely on energy preservation, environmental protection, high-tech and information industry.

Wen also proposed the two countries step up consultations in the framework of the World Trade Organization, the Asia-Pacific Economic Cooperation forum and other international mechanisms.

Wen's two-day visit coincides with the China-ROK Exchange Year, which includes 47 China-sponsored exchange programs.

Wen will unveil the exchange year with ROK leaders in Seoul. "I believe the exchange year will promote cultural exchanges between the two countries," Wen said.

On the six-party talks aimed at resolving the Korean Peninsula nuclear issue, Wen said the relevant parties should consult further so that a peace mechanism can be established on the peninsula.

In response to a question about the unification of the Korean Peninsula, Wen said it would be up to the ROK and the Democratic People's Republic of Korea (DPRK) to resolve the issue "independently and peacefully."

We hope the ROK and the DPRK will develop mutual trust and mend ties through negotiation and dialogue. This is a pre-requisite for independent and peaceful unification, Wen said. "The Chinese government will continue to play a positive role in this regard."

Wen will visit the ROK at the invitation of ROK President Roh Moon-hyun.

The Middle East and Asia are driving a boom in global advertising spending. Zenith predicted a spike of 7.7% in spending in Asia in the run-up to the 2008 Olympic Games in Beijing.

In the Middle East and Eastern Europe, advertising spending is growing faster than in North America and Western Europe, which are "maturing rapidly" as advertising markets, Zenith said.

Advertising spending in the Middle East increased by 22.4% between 2005 and 2006, compared with growth of 5.2% in America and 4 per cent in Western Europe. Zenith attributed the huge percentage share in the Middle East to the growth in local economies and high oil prices.

In addition to the Olympics, the U.S. presidential election and the European football championship in Austria and Switzerland next year will be the biggest contributors to overall growth during the next two years. However, Zenith noted, the market should brace itself for a fall in revenues after those big events end.