All posts by MBusiness

Trump’s Favored Sanctions Meet Resistance

President Donald Trump is increasingly reliant upon economic sanctions to achieve his foreign policy goals, despite a repeated emphasis that the use of military force remains a viable option.  However, these coercive measures, analysts say, have not produced their intended results, and at times have put the United States at odds with allies.  

Venezuela

In the case of Venezuela, the Trump sanctions that include the seizure of Venezuela’s oil assets in the United States, along with joining more than 50 other countries in recognizing Juan Guaido, the head of the National Assembly, as the interim president, have energized the opposition.  Despite the economic pain caused by the sanctions, the massive protests in the country, and reports of growing mid-level military support for the opposition, socialist leader Nicolas Maduro has continued to hold on to power through increasing political repression.

Short of using military force that could entangle the United States in a protracted civil war, there are few other measures the Trump administration can take to force democratic change in Venezuela.

“Because the costs are limited to us.  It also means the benefits will likely be limited.  We could accept more costs and achieve more benefits if we were for example, to invade these countries, change their governments, force them to adopt policies we want,” said Richard Weitz, a political-military analysis at Hudson Institute in Washington, DC.

Iran

Trump has more aggressively imposed unilateral sanctions than past presidents against countries like Venezuela, Iran, Cuba and North Korea, and in threatening to target more third party countries that violate U.S. restrictions.

“He’s following the thesis that, you know, began to be articulated in the Congress and in the 90s, which is you should force other countries to make a choice.  They can do business with us, or they can do business with Iran, or Cuba, North Korea,” said William Reinsch, an international business analyst at the Center for Strategic and International Studies in Washington, DC.

After withdrawing from the Iranian nuclear deal, negotiated by the previous administration of President Barack Obama, Trump’s security team recently warned third party countries, including allies South Korea and Japan, of impending sanctions if they continue to buy Iranian oil.

The unilateral sanctions have worked to some degree to force reluctant allies to go along with increasing economic pressure on the Iranian Islamic Republic to end its nuclear ambitions and support of armed militant groups in the Middle East.

“They’ve reassured allies in the Middle East that we’re taking a strong stand in Iran, they have caused European countries to disengage from the Iranian economy, even as their governments, although they are clearly opposed to his policies, they haven’t taken strong measures to confront the U.S. on that,” said Weitz.

Cuba

Trump on Wednesday threatened an economic embargo of Cuba for allegedly supporting Maduro in Venezuela with 20,000 troops.  The United States also recently announced it would enforce sanctions against Cuba permitting U.S. businesses that had property seized by the communist government of Fidel Castro 60 years ago, to sue international companies, some in Europe and Canada, that have since taken over these buildings.

These restrictions on Cuba and Iran not only potentially target allies that violate U.S. policy, they could also hurt American businesses by excluding them from these markets.

“The worst case for American companies is if they’re out, and the German, French, British competitors are in, because then they’re losing market share, and they’re losing market share long term, because they’re not going to get that back when the political situation changes,” said Reinsch.

North Korea

On North Korea the Trump administration led efforts for increased United Nations sanctions in 2017 that ban most of that country’s exports, along with unilateral sanctions on companies in China and Russia for supporting the North’s weapons program.  These restrictions likely contributed to Pyongyang suspending ballistic missile and nuclear tests and agreeing to engage in denuclearization talks.  However, the talks remain deadlocked over Washington’s demand for Pyongyang’s near complete disarmament prior to sanctions relief.

While sanctions can impose increased economic costs on an adversary country, analysts are skeptical they can force sweeping change, and say that over time these measures can become less effective as targeted countries step up evasion efforts.  

Trump’s Favored Sanctions Meet Resistance

President Donald Trump is increasingly reliant upon economic sanctions to achieve his foreign policy goals, despite a repeated emphasis that the use of military force remains a viable option.  However, these coercive measures, analysts say, have not produced their intended results, and at times have put the United States at odds with allies.  

Venezuela

In the case of Venezuela, the Trump sanctions that include the seizure of Venezuela’s oil assets in the United States, along with joining more than 50 other countries in recognizing Juan Guaido, the head of the National Assembly, as the interim president, have energized the opposition.  Despite the economic pain caused by the sanctions, the massive protests in the country, and reports of growing mid-level military support for the opposition, socialist leader Nicolas Maduro has continued to hold on to power through increasing political repression.

Short of using military force that could entangle the United States in a protracted civil war, there are few other measures the Trump administration can take to force democratic change in Venezuela.

“Because the costs are limited to us.  It also means the benefits will likely be limited.  We could accept more costs and achieve more benefits if we were for example, to invade these countries, change their governments, force them to adopt policies we want,” said Richard Weitz, a political-military analysis at Hudson Institute in Washington, DC.

Iran

Trump has more aggressively imposed unilateral sanctions than past presidents against countries like Venezuela, Iran, Cuba and North Korea, and in threatening to target more third party countries that violate U.S. restrictions.

“He’s following the thesis that, you know, began to be articulated in the Congress and in the 90s, which is you should force other countries to make a choice.  They can do business with us, or they can do business with Iran, or Cuba, North Korea,” said William Reinsch, an international business analyst at the Center for Strategic and International Studies in Washington, DC.

After withdrawing from the Iranian nuclear deal, negotiated by the previous administration of President Barack Obama, Trump’s security team recently warned third party countries, including allies South Korea and Japan, of impending sanctions if they continue to buy Iranian oil.

The unilateral sanctions have worked to some degree to force reluctant allies to go along with increasing economic pressure on the Iranian Islamic Republic to end its nuclear ambitions and support of armed militant groups in the Middle East.

“They’ve reassured allies in the Middle East that we’re taking a strong stand in Iran, they have caused European countries to disengage from the Iranian economy, even as their governments, although they are clearly opposed to his policies, they haven’t taken strong measures to confront the U.S. on that,” said Weitz.

Cuba

Trump on Wednesday threatened an economic embargo of Cuba for allegedly supporting Maduro in Venezuela with 20,000 troops.  The United States also recently announced it would enforce sanctions against Cuba permitting U.S. businesses that had property seized by the communist government of Fidel Castro 60 years ago, to sue international companies, some in Europe and Canada, that have since taken over these buildings.

These restrictions on Cuba and Iran not only potentially target allies that violate U.S. policy, they could also hurt American businesses by excluding them from these markets.

“The worst case for American companies is if they’re out, and the German, French, British competitors are in, because then they’re losing market share, and they’re losing market share long term, because they’re not going to get that back when the political situation changes,” said Reinsch.

North Korea

On North Korea the Trump administration led efforts for increased United Nations sanctions in 2017 that ban most of that country’s exports, along with unilateral sanctions on companies in China and Russia for supporting the North’s weapons program.  These restrictions likely contributed to Pyongyang suspending ballistic missile and nuclear tests and agreeing to engage in denuclearization talks.  However, the talks remain deadlocked over Washington’s demand for Pyongyang’s near complete disarmament prior to sanctions relief.

While sanctions can impose increased economic costs on an adversary country, analysts are skeptical they can force sweeping change, and say that over time these measures can become less effective as targeted countries step up evasion efforts.  

US, China Reportedly Near Deal to End Some Tariffs

The United States and China are nearing a trade deal that would roll back a portion of the $250 billion in U.S. tariffs on Chinese goods, Politico reported on Wednesday after U.S. Treasury Secretary Steven Mnuchin said the two countries completed “productive” talks in Beijing.

Mnuchin, along with U.S. Trade Representative Robert Lighthizer, held a day of discussions with Chinese Vice Premier Liu He, aimed at ending a trade war. The talks are to resume next week in Washington, where some observers say a deal announcement is possible.

“Ambassador Lighthizer and I just concluded productive meetings with China’s Vice Premier Liu He. We will continue our talks in Washington, D.C. next week,” Mnuchin wrote on his Twitter account. He gave no details.

The three appeared before cameras at the end of talks at a state guest house in Beijing, chatting amiably among themselves without speaking to reporters.

“The discussions remain focused toward making substantial progress on important structural issues and rebalancing the U.S.-China trade relationship,” White House Press Secretary Sarah Sanders told pool reporters, adding only scheduling details.

Unilateral action 

Politico quoted two people close to the talks as saying the sides have reached an understanding on how to enforce the agreement, but details need to be worked out. It would track closely to a framework described by Lighthizer to members of Congress: a series of meetings to address complaints about China’s compliance with the accord, ending in unilateral U.S. tariff actions if the dispute cannot be resolved.

A USTR spokesman declined to comment on the Politico story. Lighthizer has insisted on a strong enforcement mechanism to hold China to any promises to address U.S. demands for reforms of Beijing’s policies governing intellectual property rights, technology transfers and cyber-theft of trade secrets.

In written replies to questions on the Senate Finance Committee website on Wednesday, Lighthizer said: “To the extent that there are issues that cannot be resolved at the vice-premier level, then the United States would have the right to act unilaterally to enforce. This mechanism I described did not exist in past dialogues.”

Tariff removal outline

A deal would involve immediate removal of 10 percent tariffs on a portion of $200 billion in Chinese goods affected by that duty, with a phased removal of tariffs on remaining goods “quickly,” Politico said.

The United States has imposed tariffs on about $250 billion in Chinese goods, with a 25 percent duty on $50 billion worth of machinery, semiconductors, electronic and industrial components and autos.

U.S. officials have said privately that an enforcement mechanism for a deal and timelines for lifting tariffs are sticking points.

China’s official Xinhua news agency, in a brief report, noted that the latest talks had taken place and said the next rounds would take place in Washington next week as planned.

Beijing and Washington have cited progress on issues including intellectual property and forced technology transfer to help end a conflict marked by tit-for-tat tariffs that have cost both sides billions of dollars, disrupted supply chains and roiled financial markets.

Chinese officials have acknowledged that they view the enforcement mechanism as crucial, but said it must work two ways and cannot put restraints only on China.

In Washington, people familiar with the talks say the question of how and when any U.S. tariffs on $250 billion worth of Chinese goods will be removed will probably be among the last issues to be resolved.

U.S. President Donald Trump has said he may keep some tariffs on Chinese goods for a “substantial period.”

The United States has also been pressing China to further open its market to U.S. firms. China has repeatedly pledged to continue reforms and make it easier for foreign companies to operate in the country.

In comments published Wednesday, China’s top banking and insurance regulator said the government would further open up its banking and insurance sectors.

US, China Reportedly Near Deal to End Some Tariffs

The United States and China are nearing a trade deal that would roll back a portion of the $250 billion in U.S. tariffs on Chinese goods, Politico reported on Wednesday after U.S. Treasury Secretary Steven Mnuchin said the two countries completed “productive” talks in Beijing.

Mnuchin, along with U.S. Trade Representative Robert Lighthizer, held a day of discussions with Chinese Vice Premier Liu He, aimed at ending a trade war. The talks are to resume next week in Washington, where some observers say a deal announcement is possible.

“Ambassador Lighthizer and I just concluded productive meetings with China’s Vice Premier Liu He. We will continue our talks in Washington, D.C. next week,” Mnuchin wrote on his Twitter account. He gave no details.

The three appeared before cameras at the end of talks at a state guest house in Beijing, chatting amiably among themselves without speaking to reporters.

“The discussions remain focused toward making substantial progress on important structural issues and rebalancing the U.S.-China trade relationship,” White House Press Secretary Sarah Sanders told pool reporters, adding only scheduling details.

Unilateral action 

Politico quoted two people close to the talks as saying the sides have reached an understanding on how to enforce the agreement, but details need to be worked out. It would track closely to a framework described by Lighthizer to members of Congress: a series of meetings to address complaints about China’s compliance with the accord, ending in unilateral U.S. tariff actions if the dispute cannot be resolved.

A USTR spokesman declined to comment on the Politico story. Lighthizer has insisted on a strong enforcement mechanism to hold China to any promises to address U.S. demands for reforms of Beijing’s policies governing intellectual property rights, technology transfers and cyber-theft of trade secrets.

In written replies to questions on the Senate Finance Committee website on Wednesday, Lighthizer said: “To the extent that there are issues that cannot be resolved at the vice-premier level, then the United States would have the right to act unilaterally to enforce. This mechanism I described did not exist in past dialogues.”

Tariff removal outline

A deal would involve immediate removal of 10 percent tariffs on a portion of $200 billion in Chinese goods affected by that duty, with a phased removal of tariffs on remaining goods “quickly,” Politico said.

The United States has imposed tariffs on about $250 billion in Chinese goods, with a 25 percent duty on $50 billion worth of machinery, semiconductors, electronic and industrial components and autos.

U.S. officials have said privately that an enforcement mechanism for a deal and timelines for lifting tariffs are sticking points.

China’s official Xinhua news agency, in a brief report, noted that the latest talks had taken place and said the next rounds would take place in Washington next week as planned.

Beijing and Washington have cited progress on issues including intellectual property and forced technology transfer to help end a conflict marked by tit-for-tat tariffs that have cost both sides billions of dollars, disrupted supply chains and roiled financial markets.

Chinese officials have acknowledged that they view the enforcement mechanism as crucial, but said it must work two ways and cannot put restraints only on China.

In Washington, people familiar with the talks say the question of how and when any U.S. tariffs on $250 billion worth of Chinese goods will be removed will probably be among the last issues to be resolved.

U.S. President Donald Trump has said he may keep some tariffs on Chinese goods for a “substantial period.”

The United States has also been pressing China to further open its market to U.S. firms. China has repeatedly pledged to continue reforms and make it easier for foreign companies to operate in the country.

In comments published Wednesday, China’s top banking and insurance regulator said the government would further open up its banking and insurance sectors.

May Day 2019: Workers Demand Rights, Respect

Higher salaries, better working conditions, maternity leave, minimum wage and an end to discrimination against temporary or foreign workers: These were among the concerns as hundreds of thousands of union members and labor activists rallied around the world to mark May Day.

The tradition of May Day marches for workers’ rights began in the United States in the 1880s. It quickly spread to other countries at a time when industrialization pitted poorly paid employees who had few protections and little power against increasingly dominant factory employers and landowners. 

Over the decades, the May Day protests have also become an opportunity to air general economic grievances or political demands. Here’s a look at Wednesday’s protests:

Puerto Rico

Thousands of Puerto Ricans marched to traditional music while protesting austerity measures, with many participants at a May Day event demanding the ouster of a federal control board overseeing the U.S. territory’s finances.

Many in the crowd in San Juan waved Puerto Rican flags made in black and white rather than red, white and blue to symbolize mourning for the island’s plight, especially since September 2017’s Hurricane Maria.

A protester dressed as comic book superhero Superman was arrested after jumping over a street barrier and hugging a police officer.

Italy

Two protesters and a police officer were injured in the Italian city of Turin when police blocked a demonstration against the construction of a high-speed rail line between France and Italy, according to ANSA, an Italian news agency.

Among the protesters were members of the 5-Star Movement, a populist party that is in Italy’s ruling coalition but is opposed to the tunnel. One member, Torino city councilor Damiano Carretto, said on Facebook that he was hit in the head and on the hand by a police truncheon.

The 35.7-mile (57.5-kilometer) long Turin-Lyon High-Speed Train tunnel link, known in Italy as TAV, is a key part of an EU project linking southern Spain with eastern Europe. But the 5-Star Movement has long opposed the project.

Russia

Authorities in Russia said about 100,000 people took part in a May Day rally in central Moscow organized by Kremlin-friendly trade unions on Red Square. Opposition activists said more than 100 people were detained in several cities, including for participating in unsanctioned political protests.

In St. Petersburg, police arrested over 60 supporters of opposition leader Alexei Navalny. Some of them carried signs saying “Putin is not immortal,” in reference to Russian President Vladimir Putin, who has been at the helm since 2000.

Police manhandled dozens of protesters in Russia’s second-largest city, including lawmaker Maxim Reznik, who was later released. Reznik told the Dozhd TV station that police detained almost everyone in his protest group but gave no reason for the arrests.

France

French police clashed with stone-throwing protesters who set fires and smashed up vehicles as tens of thousands of people marched peacefully under tight security. 

France’s Interior Ministry deployed 7,400 police officers in Paris to counter troublemakers, who disrupted May Day events in the last several years. About 330 arrests were made Wednesday.

Riot police used tear gas to try to control masked troublemakers near Paris’ Montparnasse train station, the start of the main May Day march, and again at the end near the Place d’Italie. 

They also fired flash grenades and rubber balls to disperse unruly clusters of the black-clad protesters. The Interior Ministry said 24 protesters and 14 police officers were injured. 

While some of the people clashing with police wore the signature yellow vests of a French anti-government movement, the peaceful march also had participants in yellow vests as well as waving labor union flags.

Turkey

Turkish police detained May Day demonstrators trying to march toward Istanbul’s main square, which has been declared off-limits by authorities, who cited security concerns. Still, small groups chanting “May Day is Taksim and it cannot be banned,” attempted to break the blockade, with dozens reportedly detained. Taksim Square has held symbolic value for Turkey’s labor movement since 34 people were killed there during a May Day rally in 1977 when shots were fired into the crowd from a nearby building.

Germany

Germany’s biggest trade union urged voters to participate in this month’s European Parliament election and reject nationalism and right-wing populism.

The DGB, a confederation of unions with almost 6 million members, warned that the political and economic turmoil in Britain following its vote to leave the European Union nationalism “shows what happens if those who stoke fear but have no plan for the future gain the upper hand.” 

When night fell, hooded demonstrators lit flares during a traditional May Day event put on by left-wing groups in Berlin. Police arrested several people after some participants threw bottles at officers. 

Sweden, Denmark

Protesters threw cobblestones and fireworks at police, included mounted officers, who were trying to keep them away from a neo-Nazi rally in Goteborg, Sweden’s second largest city.

In neighboring Denmark, helmeted police circled their vans around hooded people in black shouting anti-police slogans to keep them away from other May Day demonstrations in Copenhagen, the capital.

A handful people were detained in both countries.

Sri Lanka

In Sri Lanka, major political parties called off the traditional May Day rallies due to security concerns following the Easter bombings, which killed 253 people and were claimed by militants linked to the Islamic State group. 

North, South Korea

Wearing headbands and swinging their fists, protesters in South Korea’s capital of Seoul rallied near City Hall, marching under banners denouncing deteriorating working conditions and demanding equal treatment and pay for temporary workers. A major South Korean umbrella trade union also issued a joint statement with a North Korean workers’ organization calling for the Koreas to push ahead with joint economic projects, despite lack of progress in nuclear negotiations between Washington and Pyongyang.

Greece

Union rallies in Greece paralyzed national rail, island ferry and other transport services. Hundreds of people gathered in central Athens on Wednesday for three separate marches to parliament organized by rival unions and left-wing groups. 

Spain

Spain’s workers marched in its major cities to make their voices heard days before acting Prime Minister Pedro Sanchez starts negotiating with other parties to form a new government. Leading labor unions are pressing Sanchez to roll back business-friendly labor and fiscal reforms that have remained in place since the conservatives were in charge.

Bangladesh

In Bangladesh, hundreds of garment workers and members of labor organizations rallied in Dhaka, the capital, to demand better working conditions and higher wages. Nazma Akter, president of one of Bangladesh’s largest unions, said female garment workers were also demanding six months of maternity leave and protection against sexual abuse and violence in the workplace.

South Africa

An opposition party in South Africa used May Day to rally voters a week before the country’s national election. Economic Freedom Fighters members, wearing their signature red shirts and berets, gathered at a stadium in Johannesburg to cheer populist stances that have put pressure on the ruling African National Congress to address topics like economic inequality and land reform.

Philippines

In the Philippines, thousands of workers and labor activists marched near the Malacanang presidential palace in Manila to demand that President Rodrigo Duterte’s government address labor issues including a minimum wage increase and the lack of contracts for many workers. 

One labor group said its members would not vote for any candidate endorsed by Duterte in upcoming senate elections and burned an effigy of the president.

Hong Kong

Construction workers, bus drivers, freelancers and domestic workers from outside the country joined a Labor Day march through central Hong Kong. The protesters marched from Victoria Park to the main government offices, some carrying banners reading “Maxed Out!” The Hong Kong Confederation of Trade Unions is demanding a maximum standard work week of 44 hours and an hourly minimum wage of at least 54.7 Hong Kong dollars ($7).

Indonesia 

Thousands of low-paid workers took to the streets in Indonesia in Southeast Asia’s largest economy. Laborers in Jakarta, the capital, gathered at national monuments and elsewhere, shouting demands for higher wages, better benefits and improved working conditions.

May Day 2019: Workers Demand Rights, Respect

Higher salaries, better working conditions, maternity leave, minimum wage and an end to discrimination against temporary or foreign workers: These were among the concerns as hundreds of thousands of union members and labor activists rallied around the world to mark May Day.

The tradition of May Day marches for workers’ rights began in the United States in the 1880s. It quickly spread to other countries at a time when industrialization pitted poorly paid employees who had few protections and little power against increasingly dominant factory employers and landowners. 

Over the decades, the May Day protests have also become an opportunity to air general economic grievances or political demands. Here’s a look at Wednesday’s protests:

Puerto Rico

Thousands of Puerto Ricans marched to traditional music while protesting austerity measures, with many participants at a May Day event demanding the ouster of a federal control board overseeing the U.S. territory’s finances.

Many in the crowd in San Juan waved Puerto Rican flags made in black and white rather than red, white and blue to symbolize mourning for the island’s plight, especially since September 2017’s Hurricane Maria.

A protester dressed as comic book superhero Superman was arrested after jumping over a street barrier and hugging a police officer.

Italy

Two protesters and a police officer were injured in the Italian city of Turin when police blocked a demonstration against the construction of a high-speed rail line between France and Italy, according to ANSA, an Italian news agency.

Among the protesters were members of the 5-Star Movement, a populist party that is in Italy’s ruling coalition but is opposed to the tunnel. One member, Torino city councilor Damiano Carretto, said on Facebook that he was hit in the head and on the hand by a police truncheon.

The 35.7-mile (57.5-kilometer) long Turin-Lyon High-Speed Train tunnel link, known in Italy as TAV, is a key part of an EU project linking southern Spain with eastern Europe. But the 5-Star Movement has long opposed the project.

Russia

Authorities in Russia said about 100,000 people took part in a May Day rally in central Moscow organized by Kremlin-friendly trade unions on Red Square. Opposition activists said more than 100 people were detained in several cities, including for participating in unsanctioned political protests.

In St. Petersburg, police arrested over 60 supporters of opposition leader Alexei Navalny. Some of them carried signs saying “Putin is not immortal,” in reference to Russian President Vladimir Putin, who has been at the helm since 2000.

Police manhandled dozens of protesters in Russia’s second-largest city, including lawmaker Maxim Reznik, who was later released. Reznik told the Dozhd TV station that police detained almost everyone in his protest group but gave no reason for the arrests.

France

French police clashed with stone-throwing protesters who set fires and smashed up vehicles as tens of thousands of people marched peacefully under tight security. 

France’s Interior Ministry deployed 7,400 police officers in Paris to counter troublemakers, who disrupted May Day events in the last several years. About 330 arrests were made Wednesday.

Riot police used tear gas to try to control masked troublemakers near Paris’ Montparnasse train station, the start of the main May Day march, and again at the end near the Place d’Italie. 

They also fired flash grenades and rubber balls to disperse unruly clusters of the black-clad protesters. The Interior Ministry said 24 protesters and 14 police officers were injured. 

While some of the people clashing with police wore the signature yellow vests of a French anti-government movement, the peaceful march also had participants in yellow vests as well as waving labor union flags.

Turkey

Turkish police detained May Day demonstrators trying to march toward Istanbul’s main square, which has been declared off-limits by authorities, who cited security concerns. Still, small groups chanting “May Day is Taksim and it cannot be banned,” attempted to break the blockade, with dozens reportedly detained. Taksim Square has held symbolic value for Turkey’s labor movement since 34 people were killed there during a May Day rally in 1977 when shots were fired into the crowd from a nearby building.

Germany

Germany’s biggest trade union urged voters to participate in this month’s European Parliament election and reject nationalism and right-wing populism.

The DGB, a confederation of unions with almost 6 million members, warned that the political and economic turmoil in Britain following its vote to leave the European Union nationalism “shows what happens if those who stoke fear but have no plan for the future gain the upper hand.” 

When night fell, hooded demonstrators lit flares during a traditional May Day event put on by left-wing groups in Berlin. Police arrested several people after some participants threw bottles at officers. 

Sweden, Denmark

Protesters threw cobblestones and fireworks at police, included mounted officers, who were trying to keep them away from a neo-Nazi rally in Goteborg, Sweden’s second largest city.

In neighboring Denmark, helmeted police circled their vans around hooded people in black shouting anti-police slogans to keep them away from other May Day demonstrations in Copenhagen, the capital.

A handful people were detained in both countries.

Sri Lanka

In Sri Lanka, major political parties called off the traditional May Day rallies due to security concerns following the Easter bombings, which killed 253 people and were claimed by militants linked to the Islamic State group. 

North, South Korea

Wearing headbands and swinging their fists, protesters in South Korea’s capital of Seoul rallied near City Hall, marching under banners denouncing deteriorating working conditions and demanding equal treatment and pay for temporary workers. A major South Korean umbrella trade union also issued a joint statement with a North Korean workers’ organization calling for the Koreas to push ahead with joint economic projects, despite lack of progress in nuclear negotiations between Washington and Pyongyang.

Greece

Union rallies in Greece paralyzed national rail, island ferry and other transport services. Hundreds of people gathered in central Athens on Wednesday for three separate marches to parliament organized by rival unions and left-wing groups. 

Spain

Spain’s workers marched in its major cities to make their voices heard days before acting Prime Minister Pedro Sanchez starts negotiating with other parties to form a new government. Leading labor unions are pressing Sanchez to roll back business-friendly labor and fiscal reforms that have remained in place since the conservatives were in charge.

Bangladesh

In Bangladesh, hundreds of garment workers and members of labor organizations rallied in Dhaka, the capital, to demand better working conditions and higher wages. Nazma Akter, president of one of Bangladesh’s largest unions, said female garment workers were also demanding six months of maternity leave and protection against sexual abuse and violence in the workplace.

South Africa

An opposition party in South Africa used May Day to rally voters a week before the country’s national election. Economic Freedom Fighters members, wearing their signature red shirts and berets, gathered at a stadium in Johannesburg to cheer populist stances that have put pressure on the ruling African National Congress to address topics like economic inequality and land reform.

Philippines

In the Philippines, thousands of workers and labor activists marched near the Malacanang presidential palace in Manila to demand that President Rodrigo Duterte’s government address labor issues including a minimum wage increase and the lack of contracts for many workers. 

One labor group said its members would not vote for any candidate endorsed by Duterte in upcoming senate elections and burned an effigy of the president.

Hong Kong

Construction workers, bus drivers, freelancers and domestic workers from outside the country joined a Labor Day march through central Hong Kong. The protesters marched from Victoria Park to the main government offices, some carrying banners reading “Maxed Out!” The Hong Kong Confederation of Trade Unions is demanding a maximum standard work week of 44 hours and an hourly minimum wage of at least 54.7 Hong Kong dollars ($7).

Indonesia 

Thousands of low-paid workers took to the streets in Indonesia in Southeast Asia’s largest economy. Laborers in Jakarta, the capital, gathered at national monuments and elsewhere, shouting demands for higher wages, better benefits and improved working conditions.

In Streaming Wars, Apple Says It Can Coexist With Netflix

Far from being a Netflix killer, Apple envisions its forthcoming Apple TV+ streaming service as one that could sit alongside other services that viewers buy, Apple Chief Executive Tim Cook said on Tuesday.

Apple in March said it will launch a streaming service with original content from big names including Oprah Winfrey and Steven Spielberg. It plans to spend $2 billion on programming but has not said how much the service will cost.

Investors are keeping a close eye on Apple’s television efforts because subscription services are an increasingly important part of its financial results as iPhone sales decline.

Apple is entering a crowded field, including Walt Disney Co.’s $6.99 per month service launching this fall. At the other end of the price spectrum, Alphabet’s YouTube this month said that it was raising the price of its YouTube TV online service, a cable-like bundle of more than 70 channels, to $49.99 per month.

On a conference call with investors on Tuesday, Cook indicated that Apple will not try to give viewers everything they want.

“There’s a huge move from the cable bundle to over-the-top,” Cook told investors during a call on Tuesday, referring to streaming television services delivered over the internet rather than a traditional cable service. “We think that most users are going to get multiple over-the-top products, and we’re going to do our best to convince them that the Apple TV+ product should be one of them.”

In Streaming Wars, Apple Says It Can Coexist With Netflix

Far from being a Netflix killer, Apple envisions its forthcoming Apple TV+ streaming service as one that could sit alongside other services that viewers buy, Apple Chief Executive Tim Cook said on Tuesday.

Apple in March said it will launch a streaming service with original content from big names including Oprah Winfrey and Steven Spielberg. It plans to spend $2 billion on programming but has not said how much the service will cost.

Investors are keeping a close eye on Apple’s television efforts because subscription services are an increasingly important part of its financial results as iPhone sales decline.

Apple is entering a crowded field, including Walt Disney Co.’s $6.99 per month service launching this fall. At the other end of the price spectrum, Alphabet’s YouTube this month said that it was raising the price of its YouTube TV online service, a cable-like bundle of more than 70 channels, to $49.99 per month.

On a conference call with investors on Tuesday, Cook indicated that Apple will not try to give viewers everything they want.

“There’s a huge move from the cable bundle to over-the-top,” Cook told investors during a call on Tuesday, referring to streaming television services delivered over the internet rather than a traditional cable service. “We think that most users are going to get multiple over-the-top products, and we’re going to do our best to convince them that the Apple TV+ product should be one of them.”

Governments Prepare for May Day Protests Worldwide

Major cities around the world have ramped up security, increasing police presence and even using drones to monitor crowds expected at May Day rallies.

International Workers’ Day, which is commonly known as May Day, celebrates the international labor movement on the first day of May every year. It’s a national holiday in more than 80 countries around the world.

France, which has been recently rankled by violent anti-government yellow vest protests, plans to deploy more than 7,400 police and dozens of drones in Paris. 

Interior Minister Christophe Castaner said there was a risk that “radical activists” could join anti-government yellow vest protesters and union workers Wednesday in the streets of Paris and across the country. He said the goal was to protect demonstrators with “legitimate aspirations” and defend Paris from calls on social media to make it “the capital of rioting.”

He said other cities around France were also on alert.

In Germany, more than 5,500 officers will be deployed in Berlin where protesters, led by the “1 May Revolutionaries,” have been for weeks calling on people to demonstrate. As many as 20,000 activists are expected to protest against gentrification in the eastern district of Friedrichshain.

Across the world in Jakarta, police spokesman Commander Argo Yuwono said there will be 1,500 personnel deployed for a protest in the Istora Senayan area and 25,000 for a protest near the State Palace. He said more than 40,000 protesters are expected to take to the streets of Indonesia’s capital.

Turkish police have barricaded Istanbul’s Taksim Square, where May Day demonstrations have been held for years. The square was blocked off even though city authorities denied permits for rallies there this year. Taksim Square gained notoriety on May Day in 1977, when 34 demonstrators were killed when shots were fired from a nearby building. Hundreds of others were injured, but no one has been brought to justice for the shooting. 

In Iran, 12 members of the Free Workers Trade Union of Iran have been arrested as they met to plan International Workers’ Day celebrations, local media reported. Iran does not recognize labor unions independent of government-sanctioned groups. 

Governments Prepare for May Day Protests Worldwide

Major cities around the world have ramped up security, increasing police presence and even using drones to monitor crowds expected at May Day rallies.

International Workers’ Day, which is commonly known as May Day, celebrates the international labor movement on the first day of May every year. It’s a national holiday in more than 80 countries around the world.

France, which has been recently rankled by violent anti-government yellow vest protests, plans to deploy more than 7,400 police and dozens of drones in Paris. 

Interior Minister Christophe Castaner said there was a risk that “radical activists” could join anti-government yellow vest protesters and union workers Wednesday in the streets of Paris and across the country. He said the goal was to protect demonstrators with “legitimate aspirations” and defend Paris from calls on social media to make it “the capital of rioting.”

He said other cities around France were also on alert.

In Germany, more than 5,500 officers will be deployed in Berlin where protesters, led by the “1 May Revolutionaries,” have been for weeks calling on people to demonstrate. As many as 20,000 activists are expected to protest against gentrification in the eastern district of Friedrichshain.

Across the world in Jakarta, police spokesman Commander Argo Yuwono said there will be 1,500 personnel deployed for a protest in the Istora Senayan area and 25,000 for a protest near the State Palace. He said more than 40,000 protesters are expected to take to the streets of Indonesia’s capital.

Turkish police have barricaded Istanbul’s Taksim Square, where May Day demonstrations have been held for years. The square was blocked off even though city authorities denied permits for rallies there this year. Taksim Square gained notoriety on May Day in 1977, when 34 demonstrators were killed when shots were fired from a nearby building. Hundreds of others were injured, but no one has been brought to justice for the shooting. 

In Iran, 12 members of the Free Workers Trade Union of Iran have been arrested as they met to plan International Workers’ Day celebrations, local media reported. Iran does not recognize labor unions independent of government-sanctioned groups. 

New French Energy Law Puts off Difficult Climate Decisions

France has set more ambitious targets to cut carbon emissions by 2050 but few measures will take effect on President Emmanuel Macron’s watch as the “yellow vest” protest movement limits his scope for environmental protection.

A draft new “energy transition law,” presented to cabinet on Tuesday and seen by Reuters, pledges to reduce carbon emissions by a factor of more than six by 2050 compared to 1990. That increases the emissions’ reduction target from a factor of four stipulated in a 2015 energy law introduced by Macron’s predecessor Francois Hollande.

Months after coming to power in 2017, Macron dropped that law’s key provision — despite a pledge to respect it — to reduce nuclear energy’s share in French electricity production to 50 percent by 2025, from 75 percent currently.

The new law will delay the 50 percent nuclear target to 2035, transfer the European Union’s 2018 “Winter Package” energy targets into French law and will also form the framework for a detailed “PPE” 2019-2028 energy strategy.

However, it includes no landmark measures to reduce CO2 emissions now, and replaces an election promise to close coal-fired power stations with a CO2 emission cap that would not take effect before Jan. 2022, just before the end of Macron’s term.

“This government systematically makes vague and very long-term commitments, but never any concrete, short-term policies that would be implemented during this president’s term,”  Greenpeace energy campaigner Alix Mazounie said.

Macron was breaking his promise to close coal-fired plants by 2022, she said, adding that under the new system their life spans could be extended forever.

A senior environment ministry official denied the president was backtracking on environment pledges but acknowledged that no major new measures would be implemented on Macron’s watch.

“Energy policy must balance constraint with encouragement, and as we saw with the carbon contribution, going too fast and too hard is not necessarily the road to success,” she said, without wishing to be identified.

Late last year, Macron’s centrist government dropped planned fuel tax increases after protests by irate motorists turned into a nationwide movement by so-called “yellow vests” against his reforms.

Asked why Macron was setting targets for more than three decades away while he had undone the key element of his own predecessor’s energy law, the official said that was a normal process. 

“Anything one government decides, another government can change, that is the principle of democracy,” she said.

Climate Action Network campaigner Anne Bringault said France has fallen behind on eight of nine key climate targets.

“The state is not respecting its own climate objectives, and since the energy law states that the PPE must respect these objectives, they are now changing the law,” she said.

Environment lawyer Arnaud Gossement said the new law was necessary after Macron had extended the lifespan of state-controlled utility EDF’s nuclear reactors by a decade.

“Once you reserve a huge place for nuclear for another 10 years, that changes everything for the place you leave for other forms of energy,” he said.

Macron is an ardent supporter of nuclear energy, which he sees as France’s answer to climate change, Gossement said.

The draft law is due to be submitted to parliament in late June and then head to the senate for final approval later in the summer.

WWF France’s Pierre Cannet said he hoped that lawmakers would force changes to the new law to make it more effective in fighting climate change.

“We hope that they will at least make sure coal plants are closed and that we do more to insulate buildings,” he said.

New French Energy Law Puts off Difficult Climate Decisions

France has set more ambitious targets to cut carbon emissions by 2050 but few measures will take effect on President Emmanuel Macron’s watch as the “yellow vest” protest movement limits his scope for environmental protection.

A draft new “energy transition law,” presented to cabinet on Tuesday and seen by Reuters, pledges to reduce carbon emissions by a factor of more than six by 2050 compared to 1990. That increases the emissions’ reduction target from a factor of four stipulated in a 2015 energy law introduced by Macron’s predecessor Francois Hollande.

Months after coming to power in 2017, Macron dropped that law’s key provision — despite a pledge to respect it — to reduce nuclear energy’s share in French electricity production to 50 percent by 2025, from 75 percent currently.

The new law will delay the 50 percent nuclear target to 2035, transfer the European Union’s 2018 “Winter Package” energy targets into French law and will also form the framework for a detailed “PPE” 2019-2028 energy strategy.

However, it includes no landmark measures to reduce CO2 emissions now, and replaces an election promise to close coal-fired power stations with a CO2 emission cap that would not take effect before Jan. 2022, just before the end of Macron’s term.

“This government systematically makes vague and very long-term commitments, but never any concrete, short-term policies that would be implemented during this president’s term,”  Greenpeace energy campaigner Alix Mazounie said.

Macron was breaking his promise to close coal-fired plants by 2022, she said, adding that under the new system their life spans could be extended forever.

A senior environment ministry official denied the president was backtracking on environment pledges but acknowledged that no major new measures would be implemented on Macron’s watch.

“Energy policy must balance constraint with encouragement, and as we saw with the carbon contribution, going too fast and too hard is not necessarily the road to success,” she said, without wishing to be identified.

Late last year, Macron’s centrist government dropped planned fuel tax increases after protests by irate motorists turned into a nationwide movement by so-called “yellow vests” against his reforms.

Asked why Macron was setting targets for more than three decades away while he had undone the key element of his own predecessor’s energy law, the official said that was a normal process. 

“Anything one government decides, another government can change, that is the principle of democracy,” she said.

Climate Action Network campaigner Anne Bringault said France has fallen behind on eight of nine key climate targets.

“The state is not respecting its own climate objectives, and since the energy law states that the PPE must respect these objectives, they are now changing the law,” she said.

Environment lawyer Arnaud Gossement said the new law was necessary after Macron had extended the lifespan of state-controlled utility EDF’s nuclear reactors by a decade.

“Once you reserve a huge place for nuclear for another 10 years, that changes everything for the place you leave for other forms of energy,” he said.

Macron is an ardent supporter of nuclear energy, which he sees as France’s answer to climate change, Gossement said.

The draft law is due to be submitted to parliament in late June and then head to the senate for final approval later in the summer.

WWF France’s Pierre Cannet said he hoped that lawmakers would force changes to the new law to make it more effective in fighting climate change.

“We hope that they will at least make sure coal plants are closed and that we do more to insulate buildings,” he said.

Warren Buffett Bankrolls Occidental’s Anadarko Bid With $10 Billion

Warren Buffett’s Berkshire Hathaway Inc committed $10 billion on Tuesday to Occidental Petroleum Corp’s $38 billion cash-and-stock bid for Anadarko Petroleum Corp, boosting its chances of snatching a deal from Chevron Corp.

Occidental and Chevron are locked in the biggest oil-industry takeover battle in years as they eye Anadarko’s prized assets in West Texas’ huge Permian shale oil field.

Anadarko on Monday agreed to start negotiations with Occidental, saying its bid could potentially be superior to Chevron’s existing deal to buy Anadarko for $33 billion in cash and stock.

Berkshire’s cash provides Occidental with flexibility to fund and even increase its proposal. Anadarko has previously expressed reservations about the risk of Occidental having to get any deal voted through by its own shareholders. Occidental could now use the majority of the Berkshire investment to add cash to its bid and remove the requirement for a vote, if it so chooses.

The Berkshire investment, contingent on Occidental completing its proposed acquisition of Anadarko, could also repay some of the debt being taken on to finance the deal’s cash portion, or cover the $10 billion to $15 billion of proceeds from asset sales which Occidental plans in the two years after closing the acquisition.

Analysts said Buffett’s endorsement supports Occidental’s push to get the deal done but comes at a high cost.

Berkshire Hathaway will get 100,000 preferred shares and a warrant to purchase up to 80 million shares of Occidental at $62.50 apiece in a private offering, a statement from Occidental said.

The preferred stock will accrue dividends at 8 percent per annum, compared with about 5 percent yield on common equity and 4 percent on term debt, Tudor Pickering Holt analyst Matthew Portillo said.

“For Occidental shareholders, our view is this is a fairly expensive cost of financing for the transaction even though it carries a kind of nice headline of having Berkshire Hathaway participate in the potential financing here.”

It is rare for Buffett to participate in a bidding war for a company. The last time he did this was in 2016, supporting a consortium including Quicken Loans Inc founder Dan Gilbert that tried unsuccessfully to buy Yahoo Inc’s internet assets.

Shares of Occidental were down 2.1 percent at $58.89 at midday Eastern time, while those in Anadarko were down about 0.3 percent at $72.69. Chevron shares were up 2.7 percent at $120.88.

A Chevron spokesman reiterated that the San Roman, California-based company believes its “signed agreement with Anadarko provides the best value and the most certainty to Anadarko’s shareholders.”

Occidental and Chevron, two of the largest oil and gas producers in the Permian by production volumes, argue they can best squeeze more oil from Anadarko’s 240,000 acres (97,120 hectares)in the area.

The two companies control land adjacent to Anadarko’s properties and expect a deal will add deposits that can produce supplies for decades using low-cost drilling techniques.

Warren Buffett Bankrolls Occidental’s Anadarko Bid With $10 Billion

Warren Buffett’s Berkshire Hathaway Inc committed $10 billion on Tuesday to Occidental Petroleum Corp’s $38 billion cash-and-stock bid for Anadarko Petroleum Corp, boosting its chances of snatching a deal from Chevron Corp.

Occidental and Chevron are locked in the biggest oil-industry takeover battle in years as they eye Anadarko’s prized assets in West Texas’ huge Permian shale oil field.

Anadarko on Monday agreed to start negotiations with Occidental, saying its bid could potentially be superior to Chevron’s existing deal to buy Anadarko for $33 billion in cash and stock.

Berkshire’s cash provides Occidental with flexibility to fund and even increase its proposal. Anadarko has previously expressed reservations about the risk of Occidental having to get any deal voted through by its own shareholders. Occidental could now use the majority of the Berkshire investment to add cash to its bid and remove the requirement for a vote, if it so chooses.

The Berkshire investment, contingent on Occidental completing its proposed acquisition of Anadarko, could also repay some of the debt being taken on to finance the deal’s cash portion, or cover the $10 billion to $15 billion of proceeds from asset sales which Occidental plans in the two years after closing the acquisition.

Analysts said Buffett’s endorsement supports Occidental’s push to get the deal done but comes at a high cost.

Berkshire Hathaway will get 100,000 preferred shares and a warrant to purchase up to 80 million shares of Occidental at $62.50 apiece in a private offering, a statement from Occidental said.

The preferred stock will accrue dividends at 8 percent per annum, compared with about 5 percent yield on common equity and 4 percent on term debt, Tudor Pickering Holt analyst Matthew Portillo said.

“For Occidental shareholders, our view is this is a fairly expensive cost of financing for the transaction even though it carries a kind of nice headline of having Berkshire Hathaway participate in the potential financing here.”

It is rare for Buffett to participate in a bidding war for a company. The last time he did this was in 2016, supporting a consortium including Quicken Loans Inc founder Dan Gilbert that tried unsuccessfully to buy Yahoo Inc’s internet assets.

Shares of Occidental were down 2.1 percent at $58.89 at midday Eastern time, while those in Anadarko were down about 0.3 percent at $72.69. Chevron shares were up 2.7 percent at $120.88.

A Chevron spokesman reiterated that the San Roman, California-based company believes its “signed agreement with Anadarko provides the best value and the most certainty to Anadarko’s shareholders.”

Occidental and Chevron, two of the largest oil and gas producers in the Permian by production volumes, argue they can best squeeze more oil from Anadarko’s 240,000 acres (97,120 hectares)in the area.

The two companies control land adjacent to Anadarko’s properties and expect a deal will add deposits that can produce supplies for decades using low-cost drilling techniques.

US Treasury Secretary Hopes for ‘Substantial Progress’ in China Talks

U.S. Treasury Secretary Steven Mnuchin says he hopes to makes “substantial progress” in trade talks with China, as the world’s two largest economies try to reach a resolution to their trade war.

Mnuchin and Trade Representative Robert Lighthizer are leading a U.S. delegation meeting with Chinese officials this week in Beijing.

Next week, Chinese officials will travel to Washington for another round of talks.

Washington and Beijing have held several rounds of talks this year to resolve a trade war that began in 2018 when President Donald Trump imposed punitive tariffs on $250 billion worth of Chinese imports. He has been trying to compel Beijing to change its trade practices. China retaliated with tariff increases on $110 billion of U.S. exports.

 

US Treasury Secretary Hopes for ‘Substantial Progress’ in China Talks

U.S. Treasury Secretary Steven Mnuchin says he hopes to makes “substantial progress” in trade talks with China, as the world’s two largest economies try to reach a resolution to their trade war.

Mnuchin and Trade Representative Robert Lighthizer are leading a U.S. delegation meeting with Chinese officials this week in Beijing.

Next week, Chinese officials will travel to Washington for another round of talks.

Washington and Beijing have held several rounds of talks this year to resolve a trade war that began in 2018 when President Donald Trump imposed punitive tariffs on $250 billion worth of Chinese imports. He has been trying to compel Beijing to change its trade practices. China retaliated with tariff increases on $110 billion of U.S. exports.

 

Tariffs Take Toll on Farm Equipment Manufacturers

Their iconic blue-colored planters and grain cars are recognizable on many farms across the United States. They are also easily spotted in large displays, some stacked one on top of the other, in front of Kinze’s manufacturing hub along Interstate 80, where, inside buildings sprawling across a campus situated among Iowa’s corn and soybeans fields, the company’s employees work with one key component. 

“Steel is the lifeblood of Kinze,” says Richard Dix, a company senior director. “We’re a factory that’s essentially a weld house. We cut, burn, form, shape, cut, paint steel.”

WATCH: Kane Farabaugh’s video report

Steel now costs more, the result of a 25 percent tariff on the material imported from most countries, including China.

“When there is a tariff on steel it cuts rights to the core of our fundamental product construction,” says Dix.

In March of 2018, President Donald Trump imposed tariffs on aluminum and steel, with the goal of boosting U.S. production and related employment. 

While there has been a modest benefit to the domestic steel industry, Dix says increased costs are negatively impacting smaller manufacturing companies like Kinze.

“We see the bills that come in from our suppliers are higher based on those tariffs,” Dix explains. “Not just in steel but also in a lot of the electronics, rubber commodities and other agricultural parts we buy from China as well. Those tariffs take their effect on our cost structure, on the profitability for the family, through our employees, and now to our dealers and on to our customers.”

Those customers are mostly U.S. farmers who use some of Kinze’s products to put soybean and corn seeds into the ground. Soybean exports in particular are now subject to retaliatory tariffs imposed by the Chinese, one of the biggest export markets for U.S. farmers, which has sunk commodity prices and contributed to another year of overall declining income for U.S. farmers. 

​That means many are less likely to purchase the products Kinze makes.

“The market is substantially down,” says Dix. “The farmers don’t have that level of security they need to go out into the dealerships and buy that equipment. We get a one-two punch. We pay more for the product that comes into us and therefore on to the customer, and then we have a reciprocal situation where we can’t export what was advantageous to us.”

These are some of the concerns Dix explained to Iowa Republican Senator Joni Ernst, who participated in a roundtable discussion at Kinze along with farmers and others in Iowa impacted by tariffs. It was part of a “Tariffs Hurt the Heartland” event hosted by Kinze, and organized by the group Americans for Free Trade along with the Association of Equipment Manufacturers. 

Ernst says the personal stories she gathers from these meetings go a long way in helping President Donald Trump understand the impact on her constituents.

“He has a very different negotiating style,” she told VOA. “He wants to start with the worst possible scenario, and negotiate his way to a good and fair trade deal, but again sharing those stories is very important and yes it does have an impact. I think the president does listen.”

Ernst says she is encouraged by news from the Trump administration on developments in negotiations that lead her to believe the trade dispute with China, and the related tariffs, could end soon.

“When I last spoke to [U.S. Trade Representative] Robert Lighthizer, he had indicated that the deal with China is largely done, it’s just figuring out the enforcement mechanism, and that is what the United States and China are really bartering over right now.”

But Kinze’s Richard Dix says one year under tariffs has already taken a toll on the company’s operations.

“We’re not really that big, so we can say that this impact has been a seven-figure impact for us in the last year, and that’s a substantial amount of money.”

It’s an amount that Dix says, so far, hasn’t been passed on to Kinze’s customers, or the employees.

“We have not actually had any direct layoffs that are attributable to this tariff situation, but we’re all tightening our belts.”

Tariffs Take Toll on Farm Equipment Manufacturers

Their iconic blue-colored planters and grain cars are recognizable on many farms across the United States. They are also easily spotted in large displays, some stacked one on top of the other, in front of Kinze’s manufacturing hub along Interstate 80, where, inside buildings sprawling across a campus situated among Iowa’s corn and soybeans fields, the company’s employees work with one key component. 

“Steel is the lifeblood of Kinze,” says Richard Dix, a company senior director. “We’re a factory that’s essentially a weld house. We cut, burn, form, shape, cut, paint steel.”

WATCH: Kane Farabaugh’s video report

Steel now costs more, the result of a 25 percent tariff on the material imported from most countries, including China.

“When there is a tariff on steel it cuts rights to the core of our fundamental product construction,” says Dix.

In March of 2018, President Donald Trump imposed tariffs on aluminum and steel, with the goal of boosting U.S. production and related employment. 

While there has been a modest benefit to the domestic steel industry, Dix says increased costs are negatively impacting smaller manufacturing companies like Kinze.

“We see the bills that come in from our suppliers are higher based on those tariffs,” Dix explains. “Not just in steel but also in a lot of the electronics, rubber commodities and other agricultural parts we buy from China as well. Those tariffs take their effect on our cost structure, on the profitability for the family, through our employees, and now to our dealers and on to our customers.”

Those customers are mostly U.S. farmers who use some of Kinze’s products to put soybean and corn seeds into the ground. Soybean exports in particular are now subject to retaliatory tariffs imposed by the Chinese, one of the biggest export markets for U.S. farmers, which has sunk commodity prices and contributed to another year of overall declining income for U.S. farmers. 

​That means many are less likely to purchase the products Kinze makes.

“The market is substantially down,” says Dix. “The farmers don’t have that level of security they need to go out into the dealerships and buy that equipment. We get a one-two punch. We pay more for the product that comes into us and therefore on to the customer, and then we have a reciprocal situation where we can’t export what was advantageous to us.”

These are some of the concerns Dix explained to Iowa Republican Senator Joni Ernst, who participated in a roundtable discussion at Kinze along with farmers and others in Iowa impacted by tariffs. It was part of a “Tariffs Hurt the Heartland” event hosted by Kinze, and organized by the group Americans for Free Trade along with the Association of Equipment Manufacturers. 

Ernst says the personal stories she gathers from these meetings go a long way in helping President Donald Trump understand the impact on her constituents.

“He has a very different negotiating style,” she told VOA. “He wants to start with the worst possible scenario, and negotiate his way to a good and fair trade deal, but again sharing those stories is very important and yes it does have an impact. I think the president does listen.”

Ernst says she is encouraged by news from the Trump administration on developments in negotiations that lead her to believe the trade dispute with China, and the related tariffs, could end soon.

“When I last spoke to [U.S. Trade Representative] Robert Lighthizer, he had indicated that the deal with China is largely done, it’s just figuring out the enforcement mechanism, and that is what the United States and China are really bartering over right now.”

But Kinze’s Richard Dix says one year under tariffs has already taken a toll on the company’s operations.

“We’re not really that big, so we can say that this impact has been a seven-figure impact for us in the last year, and that’s a substantial amount of money.”

It’s an amount that Dix says, so far, hasn’t been passed on to Kinze’s customers, or the employees.

“We have not actually had any direct layoffs that are attributable to this tariff situation, but we’re all tightening our belts.”

Boeing CEO Defends Safety Record Amid 2 Deadly Crashes

The CEO of Boeing defended the company’s safety record and declined to take any more than partial blame for two deadly crashes of its best-selling plane even while saying Monday that the company has nearly finished an update that “will make the airplane even safer.”

Chairman and CEO Dennis Muilenburg took reporters’ questions for the first time since accidents involving the Boeing 737 Max in Indonesia and Ethiopia killed 346 people and plunged Boeing into its deepest crisis in years.

Muilenburg said that Boeing followed the same design and certification process it has always used to build safe planes, and he denied that the Max was rushed to market.

“As in most accidents, there are a chain of events that occurred,” he said, referring to the Lion Air crash on Oct. 29 and the March 10 crash of an Ethiopian Airlines Max. “It’s not correct to attribute that to any single item.”

The CEO said Boeing provided steps that should be taken in response to problems like those encountered by pilots of the planes that crashed. “In some cases those procedures were not completely followed,” he said.

The news conference, held after Boeing’s annual meeting in Chicago, came as new questions have arisen around the Max, which has been grounded worldwide since mid-March.

Brief press conference

Southwest Airlines said over the weekend that Boeing did not disclose that a feature on the 737 — an indicator to warn pilots about the kind of sensor failures that occurred in both accidents — was turned off on the Max. Southwest said it found out only after the first crash of the Lion Air Max. Boeing said the feature only worked if airlines bought a related one that’s optional, and in any case the plane could fly safely without it.

Separately, published reports said that federal regulators and congressional investigators are examining safety allegations relating to the Max that were raised by about a dozen purported whistleblowers.

The Boeing event occurred on the same day that the Federal Aviation Administration convened a week-long meeting in Seattle of aviation regulators from around the world to review the FAA’s certification of MCAS, a key flight-control system on the Max. 

A spokesman said the FAA will share its technical knowledge with other regulators, but their approval is not needed before the plane resumes flying in the U.S.

Faulty sensors

Boeing has conceded that in both accidents, MCAS was triggered by faulty readings from a single sensor and pushed the planes’ noses down. Pilots were unable to control the planes although the Ethiopian Airlines crew followed some of the steps that Boeing recommended to recover.

Muilenburg told shareholders that Boeing is close to completing an upgrade to flight software on the Max “that will ensure accidents like these never happen again.” 

 In the brief news conference that followed, Muilenburg took six questions from reporters, including whether he will resign — he has no intention of doing that — and left as reporters persisted, including one who pointed to the deaths of 346 people and urged the CEO to take more questions.

Besides the software update, Boeing will present the FAA with a plan for training pilots on changes to MCAS. The company is pushing for training that can be done on tablet computers and, if airlines want to offer it, additional time in flight simulators when pilots are due for periodic retraining.

A requirement for training in simulators would further delay the return of the Max because of relatively small number of flight simulators.

Union requests training

The union for American Airlines pilots wants mandatory additional training including, at a minimum, video demonstrations showing pilots how to respond to failures of systems on the plane. Dennis Tajer, a 737 pilot and union spokesman, said Boeing and the FAA must require more training rather than leaving the option to airlines. 

“Not every pilot that goes out there and flies is a Boeing test pilot,” Tajer said. “If something happens anywhere in the world, it affects all of us.”

During the one-hour annual meeting, shareholders elected all 13 company-backed board nominees, including newcomer Nikki Haley, the former South Carolina governor who lobbied for a Boeing plant there, and former U.S. ambassador to the United Nations.

Resolutions defeated

Several shareholder resolutions were defeated, including one to name an independent chairman whenever possible instead of letting the CEO hold both jobs. It got 34% support.

A chairman-CEO “is not always a bad thing, but at times of crisis it’s hardly ever a good idea,” said Matt Brubaker, CEO of business-strategy consultant FMG Leading, who was not involved in the debate. “The place they are in now, they need the scrutiny of an inwardly focused CEO to drive change.”

Muilenburg opened Monday’s meeting with a moment of silence for victims of the two crashes. Later that day, lawyers for two Canadian families who lost relatives in the Ethiopian Airlines crash filed the latest in a growing number of lawsuits against Boeing, claiming the plane maker was negligent about safety.

Hiral Vaidya, whose in-laws and four other family members died in the crash, said there were no remains left to cremate.

“We have no closure, we have no peace, we have no answer,” she said, fighting back tears.

Breaking from Tradition, Indigenous Women Lead Fight for Land Rights in Brazil

Brazil’s indigenous women have been overturning tradition to step into the spotlight and lead an international push to defend their tribal land rights, which are up against the greatest threat they have faced in years under right-wing President Jair Bolsonaro.

Brazil’s 850,000 indigenous peoples live on reservations that make up 13 percent of the territory. Bolsonaro has said they live in poverty and he wants to assimilate them by allowing development of their vast lands, currently protected by law.

The tribal leaders are fighting back — in many cases, led by women. Traditionally, indigenous cultures excluded women from leadership roles that were played by male tribal chieftains.

But that is changing, said Joenia Wapichana, who last year became the first indigenous woman elected to Brazil’s Congress and has been seeking to block Bolsonaro’s attempts to dismantle the indigenous affairs agency Funai.

“Women have advanced a lot and today there are many taking up frontline positions in the defense of indigenous rights,” said Wapichana, 45, a lawyer who was also the first indigenous woman to argue a case before Brazil’s Supreme Court.

Brazil’s top indigenous leader is Sonia Guajajara, who warned at a forum at the United Nations last Tuesday that Bolsonaro’s plans to open up reservations to mining and agriculture could devastate the Amazon, the world’s largest rainforest, which scientists say is nature’s best defense against global warming.

The next day she was back in Brasilia leading a rally of 4,000 indigenous people representing Brazil’s 305 tribes, protesting Bolsonaro’s move to put reservation land decisions under the agriculture ministry that is headed by farming interests.

“Invasions of indigenous lands have increased since Bolsonaro took office January 1 and that is due to the hate and violence in his speeches against us,” Guajajara said in an interview last week.

Speaking at a news conference, Guajajara, 45, recalled how in 1998 Bolsonaro, then a congressman, said in a newspaper interview that it was a shame the Brazilian cavalry hadn’t been “as efficient as the Americans, who exterminated the Indians.”

Last year, Bolsonaro told reporters that anthropologists had kept native Brazilians “like animals in a zoo” and they should be allowed to benefit from agriculture and mining, charging royalties. Some indigenous people support his plan to allow commercial farming on reservations, although the majority back Guajajara.

With Bolsonaro set on weakening environmental and indigenous protections and a strong farm lobby holding sway in Congress, Wapichana said her tribe decided it was time to get involved in federal politics. They collectively decided to choose her as the candidate and funded her campaign, she said.

She said her goal was at least to preserve those rights currently guaranteed by law.

“It will be hard to advance with this government that is controlled by agribusiness and the farm lobby. What they wanted was to weaken Funai so it can no longer protect us,” she said.

Rather than waiting for someone else to represent them, indigenous women were taking a stand in a way they had not before and joining together across the Amazon, said Leila Salazar-Lopez, president of Amazon Watch, a U.S.-based non-profit that works to stop deforestation and advance indigenous rights in the Amazon Basin.

“It is amazing that the women are stepping up,” she said.

Breaking from Tradition, Indigenous Women Lead Fight for Land Rights in Brazil

Brazil’s indigenous women have been overturning tradition to step into the spotlight and lead an international push to defend their tribal land rights, which are up against the greatest threat they have faced in years under right-wing President Jair Bolsonaro.

Brazil’s 850,000 indigenous peoples live on reservations that make up 13 percent of the territory. Bolsonaro has said they live in poverty and he wants to assimilate them by allowing development of their vast lands, currently protected by law.

The tribal leaders are fighting back — in many cases, led by women. Traditionally, indigenous cultures excluded women from leadership roles that were played by male tribal chieftains.

But that is changing, said Joenia Wapichana, who last year became the first indigenous woman elected to Brazil’s Congress and has been seeking to block Bolsonaro’s attempts to dismantle the indigenous affairs agency Funai.

“Women have advanced a lot and today there are many taking up frontline positions in the defense of indigenous rights,” said Wapichana, 45, a lawyer who was also the first indigenous woman to argue a case before Brazil’s Supreme Court.

Brazil’s top indigenous leader is Sonia Guajajara, who warned at a forum at the United Nations last Tuesday that Bolsonaro’s plans to open up reservations to mining and agriculture could devastate the Amazon, the world’s largest rainforest, which scientists say is nature’s best defense against global warming.

The next day she was back in Brasilia leading a rally of 4,000 indigenous people representing Brazil’s 305 tribes, protesting Bolsonaro’s move to put reservation land decisions under the agriculture ministry that is headed by farming interests.

“Invasions of indigenous lands have increased since Bolsonaro took office January 1 and that is due to the hate and violence in his speeches against us,” Guajajara said in an interview last week.

Speaking at a news conference, Guajajara, 45, recalled how in 1998 Bolsonaro, then a congressman, said in a newspaper interview that it was a shame the Brazilian cavalry hadn’t been “as efficient as the Americans, who exterminated the Indians.”

Last year, Bolsonaro told reporters that anthropologists had kept native Brazilians “like animals in a zoo” and they should be allowed to benefit from agriculture and mining, charging royalties. Some indigenous people support his plan to allow commercial farming on reservations, although the majority back Guajajara.

With Bolsonaro set on weakening environmental and indigenous protections and a strong farm lobby holding sway in Congress, Wapichana said her tribe decided it was time to get involved in federal politics. They collectively decided to choose her as the candidate and funded her campaign, she said.

She said her goal was at least to preserve those rights currently guaranteed by law.

“It will be hard to advance with this government that is controlled by agribusiness and the farm lobby. What they wanted was to weaken Funai so it can no longer protect us,” she said.

Rather than waiting for someone else to represent them, indigenous women were taking a stand in a way they had not before and joining together across the Amazon, said Leila Salazar-Lopez, president of Amazon Watch, a U.S.-based non-profit that works to stop deforestation and advance indigenous rights in the Amazon Basin.

“It is amazing that the women are stepping up,” she said.

Pompeo: US-China Trade Talks Will Not Be Impacted by End of Iran Oil Waivers

VOA Mandarin service reporter Lin Feng also contributed to this report.

U.S. Secretary of State Mike Pompeo says Washington’s decision to end Iran oil waivers to China will not have a negative impact on the latest trade talks between the world’s two leading economies. 

 

“We have had lots of talks with China about this issue. I’m confident that the trade talks will continue and run their natural course,” Pompeo told an audience in Washington on Monday.

 

China is Iran’s largest oil buyer. 

 

Pompeo added the U.S. would ensure the global oil markets are adequately supplied.

 

Last Monday, the United States announced it was ending waivers on sanctions to countries that import Iranian oil, including China, India, Japan, South Korea and Turkey. Since the sanctions were reintroduced, Italy, Greece and Taiwan have halted their Iranian oil imports.

 

U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer are meeting with Chinese Vice Premier Liu He in Beijing on Tuesday, for the latest round of negotiations. The two sides will discuss intellectual property, forced technology transfer, non-tariff barriers, agriculture, and other issues. 

 

Vice Premier Liu will then lead a Chinese delegation to Washington for additional talks on May 8.

Washington and Beijing have held several rounds this year to resolve a trade war that began in 2018 when President Donald Trump imposed punitive tariffs on $250 billion worth of Chinese imports. He has been trying to compel Beijing to change its trade practices.  China retaliated with tariff increases on $110 billion of U.S. exports.

Positive tone

 

The U.S. and China have struck a positive tone ahead of this week’s talks in Beijing, aimed at ending the trade war, as both countries work toward an agreement.

 

“We’re doing well on trade, we’re doing well with China,” President Trump told reporters last week.

 

In Beijing, Chinese officials said that “tangible progress” has been achieved.

 

“Both sides are also maintaining communication. We believe that both sides’ trade delegations can work together, meet each other halfway and work hard to reach a mutually beneficial agreement,” Chinese Foreign Ministry spokesperson Geng Shuang said last week.

 

As the United States and China appear close to reaching a negotiated settlement over trade disputes, a group of American business and retailers has called for a “full and immediate removal of all added tariffs” on Chinese goods in a deal, saying anything less would be a “loss for the American people.”

 

Business groups from “Americans for Free Trade” have asked the Trump administration to “fully eliminate tariffs” on Chinese goods, saying tariffs are taxes that American businesses and consumers pay.

 

“Americans have paid over $21 billion in taxes due to the imposition of new tariffs,” said a letter to President Trump April 22.

 

Some experts say the administration lacks confidence in China’s enforcement of a trade deal, and predict some punitive tariffs are likely to remain.

 

“I cannot imagine China accepting a deal where all the tariffs stay in place. I don’t see how [Chinese President] Xi Jinping can take that to his people. There has to be something for China. On the other hand, I guess I will be surprised if the U.S. removed all of the tariffs because clearly, the USTR team would like to keep at least some of them in place,” David Dollar, Brookings Institution’s senior fellow, told VOA Mandarin. 

 

“The smart thing would be to remove the tariffs on all of the parts and components, and perhaps on some consumer goods. It seems likely to get that compromise,” he added.

IMF: US Sanctions Cutting Iranian Growth, Boosting Inflation

The International Monetary Fund is forecasting Iran’s economy to shrink by 6% this year as it faces pressure from U.S. sanctions.

In a report released Monday, the IMF said its estimates for Iran, which include the potential for inflation to top 40%, predate a U.S. decision to end waivers that have allowed some Iranian oil buyers to continue making their purchases despite new sanctions that went into effect last year.

The Trump administration is due to formally end the waivers on Thursday for some of Iran’s top crude purchasers, including China, India, Japan, Turkey and South Korea.

The United States says it wants to deprive Iran of $50 billion in annual oil revenues to pressure it to end its nuclear and missile programs. The White House says it is working with top oil exporters Saudi Arabia and the United Arab Emirates to ensure an adequate world oil supply.

Turkey and China have attacked the U.S. action, but it is not clear whether they will continue to buy Iranian oil.

Iranian Foreign Minister Mohammad Javad Zarif said an interview broadcast on the U.S. cable show Fox News Sunday accused the United States of trying to “bring Iran to its knees” and overthrow its government by seeking to thwart its international oil trade.

​He said U.S. officials are “wrong in their analysis. They are wrong in their hope and illusions.”

Zarif said the fact that Trump withdrew the United States from the 2015 international agreement to curtail Iran’s nuclear program “would not put the U.S. in the good list of law-abiding nations.” Iran state media reported that Zarif told Iranian reporters in New York that Tehran’s withdrawal from the pact is one of “many options” it is considering in the wake of the U.S. end to the waivers on sanctions for countries buying oil from Iran.

Zarif said a team of Israeli Prime Minister Benjamin Netanyahu, U.S. national security adviser John Bolton, and leaders in Saudi Arabia and the United Arab Emirates is trying to push U.S. President Donald Trump “into a confrontation he doesn’t want.”

“They have tried to bring the U.S. into a war,” Zarif said, with the goal, “at least,” of Iranian regime change.

Bolton, appearing on the same Fox News program, said the U.S. goal is not regime change, but a change in behavior, specifically an end to Iran’s nuclear weapons program and ballistic missile testing.

“The Iranian people deserve a better government,” Bolton said.

He called Zarif’s accusations “completely ridiculous, an effort to sow disinformation.”

More People Use Smartphone Apps to Find Flexible Gig Jobs

While many people have office jobs, working inside an office is not for everybody. And these days in the U.S. more people are turning to gig work — temporary jobs that allow them to work from home, hold multiple jobs and have flexible hours. More gig workers are now using smartphone apps to find jobs that set them free of office work. VOA’s Mykhailo Komadovsky spent time with one gig worker in Washington.