All posts by MBusiness

China’s August Trade Surplus With US Hits Record $31 Billion

China’s trade surplus with the United States reached a record $31 billion in August, despite hefty tariffs recently imposed on Chinese goods. 

The news of the surplus came just hours after U.S. President Donald Trump threatened to impose another $267 billion worth of tariffs on Chinese imports, which would cover virtually all the goods China imports to the United States. 

The potential tariffs would come on top of punitive levies on $50 billion in Chinese goods already in place as well as another $200 billion that Trump says “could take place very soon.”

He told reporters traveling with him to Fargo, North Dakota “behind that, there’s another $267 billion ready to go on short notice if I want.”

“That changes the equation,” he added.

Such a move would subject virtually all U.S. imports from China to new duties.

The president’s comments Friday came one day after a public comment period ended on his proposal to add duties on $200 billion of Chinese imports.

White House economic adviser Larry Kudlow said on Friday the Trump administration would evaluate the public comments before making any decisions on the new proposed tariffs.

The U.S. Trade Representative’s office received nearly 6,000 comments during seven days of public hearings on the proposal.

The Trump administration has argued that tariffs on Chinese goods would force China to trade on more favorable terms with the United States.

It has demanded that China better protect American intellectual property, including ending the practice of cyber theft. The Trump administration has also called on China to allow U.S. companies greater access to Chinese markets and to cut its U.S. trade surplus.

China has retaliated to the U.S. tariffs on $50 billion in Chinese imports with an equal amount of import taxes on U.S. goods. It has also threatened to retaliate against any potential new tariffs. However, China’s imports from the United States are $200 billion a year less than American imports from China, so it would run out of room to match U.S. sanctions.

China’s August Trade Surplus With US Hits Record $31 Billion

China’s trade surplus with the United States reached a record $31 billion in August, despite hefty tariffs recently imposed on Chinese goods. 

The news of the surplus came just hours after U.S. President Donald Trump threatened to impose another $267 billion worth of tariffs on Chinese imports, which would cover virtually all the goods China imports to the United States. 

The potential tariffs would come on top of punitive levies on $50 billion in Chinese goods already in place as well as another $200 billion that Trump says “could take place very soon.”

He told reporters traveling with him to Fargo, North Dakota “behind that, there’s another $267 billion ready to go on short notice if I want.”

“That changes the equation,” he added.

Such a move would subject virtually all U.S. imports from China to new duties.

The president’s comments Friday came one day after a public comment period ended on his proposal to add duties on $200 billion of Chinese imports.

White House economic adviser Larry Kudlow said on Friday the Trump administration would evaluate the public comments before making any decisions on the new proposed tariffs.

The U.S. Trade Representative’s office received nearly 6,000 comments during seven days of public hearings on the proposal.

The Trump administration has argued that tariffs on Chinese goods would force China to trade on more favorable terms with the United States.

It has demanded that China better protect American intellectual property, including ending the practice of cyber theft. The Trump administration has also called on China to allow U.S. companies greater access to Chinese markets and to cut its U.S. trade surplus.

China has retaliated to the U.S. tariffs on $50 billion in Chinese imports with an equal amount of import taxes on U.S. goods. It has also threatened to retaliate against any potential new tariffs. However, China’s imports from the United States are $200 billion a year less than American imports from China, so it would run out of room to match U.S. sanctions.

Trump Threatens to Tax Virtually All Chinese Imports to US

U.S. President Donald Trump is threatening to impose tariffs on another $267 billion worth Chinese imports, which would cover virtually all the goods China imports to the United States.

The potential tariffs would come on top of punitive levies on $50 billion in Chinese goods already in place, as well as tariffs on another $200 billion worth of goods that Trump says “could take place very soon.”

He told reporters traveling with him to Fargo, North Dakota, on Friday that “behind that, there’s another $267 billion ready to go on short notice if I want.”

“That changes the equation,” he added.

Such a move would subject virtually all U.S. imports from China to new duties.

The president’s comments came one day after a public comment period ended on his proposal to add duties on $200 billion worth of Chinese imports. White House economic adviser Larry Kudlow said Friday that the Trump administration would evaluate the public comments before making any decisions on the new proposed tariffs.

The U.S. trade representative’s office received nearly 6,000 comments during seven days of public hearings on the proposal.

The Trump administration has argued that tariffs on Chinese goods will force China to trade on more favorable terms with the United States. It has demanded that China better protect American intellectual property, including ending the practice of cybertheft. The Trump administration has also called on China to allow U.S. companies greater access to Chinese markets and to cut its U.S. trade surplus.

China has retaliated against the U.S. tariffs on $50 billion in Chinese imports with import taxes on an equal amount of U.S. goods. It has also threatened to retaliate against any new tariffs. However, China’s imports from the United States are worth $200 billion a year less than American imports from China, so it would run out of room to match U.S. sanctions.

Trump Threatens to Tax Virtually All Chinese Imports to US

U.S. President Donald Trump is threatening to impose tariffs on another $267 billion worth Chinese imports, which would cover virtually all the goods China imports to the United States.

The potential tariffs would come on top of punitive levies on $50 billion in Chinese goods already in place, as well as tariffs on another $200 billion worth of goods that Trump says “could take place very soon.”

He told reporters traveling with him to Fargo, North Dakota, on Friday that “behind that, there’s another $267 billion ready to go on short notice if I want.”

“That changes the equation,” he added.

Such a move would subject virtually all U.S. imports from China to new duties.

The president’s comments came one day after a public comment period ended on his proposal to add duties on $200 billion worth of Chinese imports. White House economic adviser Larry Kudlow said Friday that the Trump administration would evaluate the public comments before making any decisions on the new proposed tariffs.

The U.S. trade representative’s office received nearly 6,000 comments during seven days of public hearings on the proposal.

The Trump administration has argued that tariffs on Chinese goods will force China to trade on more favorable terms with the United States. It has demanded that China better protect American intellectual property, including ending the practice of cybertheft. The Trump administration has also called on China to allow U.S. companies greater access to Chinese markets and to cut its U.S. trade surplus.

China has retaliated against the U.S. tariffs on $50 billion in Chinese imports with import taxes on an equal amount of U.S. goods. It has also threatened to retaliate against any new tariffs. However, China’s imports from the United States are worth $200 billion a year less than American imports from China, so it would run out of room to match U.S. sanctions.

Modest Premium Hikes Expected as ‘Obamacare’ Stabilizes

Millions of people covered under the Affordable Care Act will see only modest premium increases next year, and some will get price cuts. That’s the conclusion from an exclusive analysis of the besieged but resilient program, which still sparks deep divisions heading into this year’s midterm elections.

The Associated Press and the consulting firm Avalere Health crunched available state data and found that “Obamacare’s” health insurance marketplaces seem to be stabilizing after two years of sharp premium hikes. And the exodus of insurers from the program has halted, even reversed somewhat, with more consumer choices for 2019.

The analysis found a 3.6 percent average increase in proposed or approved premiums across 47 states and Washington, D.C., for next year. This year the average increase nationally was about 30 percent. The average total premium for an individual covered under the health law is now close to $600 a month before subsidies.

For next year, premiums are expected either to drop or increase by less than 10 percent in 41 states with about 9 million customers. Eleven of those states are expected to see a drop in average premiums. In six other states, plus Washington, D.C., premiums are projected to rise between 10 percent and 18 percent.

Insurers also are starting to come back. Nineteen states will either see new insurers enter or current ones expand into more areas. There are no bare counties lacking a willing insurer.

Even so, Chris Sloan, an Avalere director, says, “This is still a market that’s unaffordable for many people who aren’t eligible for subsidies.”

Nearly nine in 10 ACA customers get government subsidies based on income, shielding most from premium increases. But people with higher incomes, who don’t qualify for financial aid, have dropped out in droves.

It’s too early to say if the ACA’s turnabout will be fleeting or a more permanent shift. Either way, next year’s numbers are at odds with the political rhetoric around the ACA, still heated even after President Donald Trump and congressional Republicans failed to repeal the law last year.

Trump regularly calls “Obamacare” a “disaster” and time again has declared it “dead.” The GOP tax-cut bill repealed the ACA requirement that Americans have health insurance or risk fines, effective next year. But other key elements remain, including subsidies and protection for people with pre-existing conditions. Democrats, meanwhile, accuse Trump of “sabotage,” driving up premiums and threatening coverage.

The moderating market trend “takes the issue away from Republican candidates” in the midterm elections, said Mark Hall, a health law and policy expert at Wake Forest University in North Carolina. “Part of the mess is now their fault, and the facts really don’t support the narrative that things are getting worse.”

Market stability also appears to undercut Democrats’ charge that Trump is undermining the program. But Democrats disagree, saying the ACA is in danger while Republicans control Washington, and that premiums would have been even lower but for the administration’s hostility.

“Voters won’t think that the Trump threat to the ACA has passed at all, unless Democrats get at least the House in 2018,” said Bill Carrick, a strategist for Sen. Dianne Feinstein, D-Calif., whose re-election ads emphasize her support for the health law.

As if seconding Democrats’ argument, the Trump administration has said it won’t defend the ACA’s protections for pre-existing conditions in a federal case in Texas that could go to the Supreme Court. A new Kaiser Family Foundation poll found that Americans regardless of partisan identification said those protections should remain the law of the land.

In solidly Republican Arkansas, Democratic state legislator and cancer survivor Clarke Tucker is using the ACA in his campaign to try to flip a U.S. House seat from red to blue. Tucker, 37, says part of what made him want to run is the House vote to repeal the ACA last year and images of Trump and GOP lawmakers celebrating at the White House.

Business analysts say the relatively good news for 2019 is partly the result of previous premium increases, which allowed insurers to return to profitability after losing hundreds of millions of dollars.

“They can price better, and they can manage this population better, which is why they can actually make some money,” said Deep Banerjee of Standard & Poor’s.

Repeal of the ACA’s requirement to carry insurance doesn’t seem to have had a major impact yet, but Banerjee said there’s “a cloud of uncertainty” around the Trump administration’s potential policy shifts. Yet some administration actions have also helped settle the markets, such as continuing a premium stabilization program.

April Box of Spokane Valley, Washington, lives in a state where premiums could rise substantially since insurers have proposed an 18 percent increase. In states expecting double-digit increases, the reasons reflect local market conditions. Proposed increases may ultimately get revised downward.

Box is self-employed as a personal advocate helping patients navigate the health care system. She has an ACA plan, but even with a subsidy her premiums are expensive and a high deductible means she’s essentially covered only for catastrophic illness.

“I’m choosing not to go to the doctor, and I’m saying to myself I’m not sick enough to go to the doctors,” Box said. “We need to figure out how to make it better and lower the price.”

Now in her 50s, Box was born with dislocated hips. She worries she could be uninsurable if insurers are allowed to go back to denying coverage for pre-existing conditions. She might need another hip surgery.

“It needs to be a level playing field for everybody,” said Box. “We need to have universal coverage – that is really the only answer.”

Tennessee is a prime example of the ACA’s flipped fortunes.

Last year, the state struggled to secure at least one insurer in every county. But approved rates for 2019 reflect an 11 percent average decrease. Two new insurers – Bright Health and Celtic_ have entered its marketplace, and two others – Cigna and Oscar – will expand into new counties.

Tennessee Republican Sen. Lamar Alexander called that a “welcome step,” but argued rates could have been even lower if congressional Democrats had supported a market stabilization bill. Democrats blame Republicans for the failure.

To calculate premium changes, Avalere and The Associated Press used proposed overall individual marketplace rate filings for 34 states and D.C., and final rates for 13 states that have already approved them. Data was not available for Massachusetts, Maryland and Alabama. The average rate change calculations include both on-exchange and off-exchange plans that comply with ACA requirements. The government isn’t expected to release final national figures until later this fall.

 

Modest Premium Hikes Expected as ‘Obamacare’ Stabilizes

Millions of people covered under the Affordable Care Act will see only modest premium increases next year, and some will get price cuts. That’s the conclusion from an exclusive analysis of the besieged but resilient program, which still sparks deep divisions heading into this year’s midterm elections.

The Associated Press and the consulting firm Avalere Health crunched available state data and found that “Obamacare’s” health insurance marketplaces seem to be stabilizing after two years of sharp premium hikes. And the exodus of insurers from the program has halted, even reversed somewhat, with more consumer choices for 2019.

The analysis found a 3.6 percent average increase in proposed or approved premiums across 47 states and Washington, D.C., for next year. This year the average increase nationally was about 30 percent. The average total premium for an individual covered under the health law is now close to $600 a month before subsidies.

For next year, premiums are expected either to drop or increase by less than 10 percent in 41 states with about 9 million customers. Eleven of those states are expected to see a drop in average premiums. In six other states, plus Washington, D.C., premiums are projected to rise between 10 percent and 18 percent.

Insurers also are starting to come back. Nineteen states will either see new insurers enter or current ones expand into more areas. There are no bare counties lacking a willing insurer.

Even so, Chris Sloan, an Avalere director, says, “This is still a market that’s unaffordable for many people who aren’t eligible for subsidies.”

Nearly nine in 10 ACA customers get government subsidies based on income, shielding most from premium increases. But people with higher incomes, who don’t qualify for financial aid, have dropped out in droves.

It’s too early to say if the ACA’s turnabout will be fleeting or a more permanent shift. Either way, next year’s numbers are at odds with the political rhetoric around the ACA, still heated even after President Donald Trump and congressional Republicans failed to repeal the law last year.

Trump regularly calls “Obamacare” a “disaster” and time again has declared it “dead.” The GOP tax-cut bill repealed the ACA requirement that Americans have health insurance or risk fines, effective next year. But other key elements remain, including subsidies and protection for people with pre-existing conditions. Democrats, meanwhile, accuse Trump of “sabotage,” driving up premiums and threatening coverage.

The moderating market trend “takes the issue away from Republican candidates” in the midterm elections, said Mark Hall, a health law and policy expert at Wake Forest University in North Carolina. “Part of the mess is now their fault, and the facts really don’t support the narrative that things are getting worse.”

Market stability also appears to undercut Democrats’ charge that Trump is undermining the program. But Democrats disagree, saying the ACA is in danger while Republicans control Washington, and that premiums would have been even lower but for the administration’s hostility.

“Voters won’t think that the Trump threat to the ACA has passed at all, unless Democrats get at least the House in 2018,” said Bill Carrick, a strategist for Sen. Dianne Feinstein, D-Calif., whose re-election ads emphasize her support for the health law.

As if seconding Democrats’ argument, the Trump administration has said it won’t defend the ACA’s protections for pre-existing conditions in a federal case in Texas that could go to the Supreme Court. A new Kaiser Family Foundation poll found that Americans regardless of partisan identification said those protections should remain the law of the land.

In solidly Republican Arkansas, Democratic state legislator and cancer survivor Clarke Tucker is using the ACA in his campaign to try to flip a U.S. House seat from red to blue. Tucker, 37, says part of what made him want to run is the House vote to repeal the ACA last year and images of Trump and GOP lawmakers celebrating at the White House.

Business analysts say the relatively good news for 2019 is partly the result of previous premium increases, which allowed insurers to return to profitability after losing hundreds of millions of dollars.

“They can price better, and they can manage this population better, which is why they can actually make some money,” said Deep Banerjee of Standard & Poor’s.

Repeal of the ACA’s requirement to carry insurance doesn’t seem to have had a major impact yet, but Banerjee said there’s “a cloud of uncertainty” around the Trump administration’s potential policy shifts. Yet some administration actions have also helped settle the markets, such as continuing a premium stabilization program.

April Box of Spokane Valley, Washington, lives in a state where premiums could rise substantially since insurers have proposed an 18 percent increase. In states expecting double-digit increases, the reasons reflect local market conditions. Proposed increases may ultimately get revised downward.

Box is self-employed as a personal advocate helping patients navigate the health care system. She has an ACA plan, but even with a subsidy her premiums are expensive and a high deductible means she’s essentially covered only for catastrophic illness.

“I’m choosing not to go to the doctor, and I’m saying to myself I’m not sick enough to go to the doctors,” Box said. “We need to figure out how to make it better and lower the price.”

Now in her 50s, Box was born with dislocated hips. She worries she could be uninsurable if insurers are allowed to go back to denying coverage for pre-existing conditions. She might need another hip surgery.

“It needs to be a level playing field for everybody,” said Box. “We need to have universal coverage – that is really the only answer.”

Tennessee is a prime example of the ACA’s flipped fortunes.

Last year, the state struggled to secure at least one insurer in every county. But approved rates for 2019 reflect an 11 percent average decrease. Two new insurers – Bright Health and Celtic_ have entered its marketplace, and two others – Cigna and Oscar – will expand into new counties.

Tennessee Republican Sen. Lamar Alexander called that a “welcome step,” but argued rates could have been even lower if congressional Democrats had supported a market stabilization bill. Democrats blame Republicans for the failure.

To calculate premium changes, Avalere and The Associated Press used proposed overall individual marketplace rate filings for 34 states and D.C., and final rates for 13 states that have already approved them. Data was not available for Massachusetts, Maryland and Alabama. The average rate change calculations include both on-exchange and off-exchange plans that comply with ACA requirements. The government isn’t expected to release final national figures until later this fall.

 

US Adds Strong 201K Jobs; Unemployment Stays at 3.9 Percent

Hiring picked up in August as U.S. employers added a strong 201,000 jobs, a sign of confidence that consumers and businesses will keep spending despite the Trump administration’s conflicts with U.S. trading partners.

The Labor Department said Friday the unemployment rate remained 3.9 percent, near an 18-year low. 

Americans’ paychecks grew at a faster pace in August. Average hourly wages rose last month and are now 2.9 percent higher than they were a year earlier, the fastest year-over-year gain in eight years. Still, after adjusting for inflation, pay has been flat for the past year.

The economy is expanding steadily, fueled by tax cuts, confident consumers, greater business investment in equipment and more government spending. Growth reached 4.2 percent at an annual rate in the April-June quarter, the fastest pace in four years.

Most analysts have forecast that the economy will expand at an annual pace of at least 3 percent in the current July-September quarter. For the full year, the economy is on track to grow 3 percent for the first time since 2005. 

Consumer confidence rose in August to its highest level in nearly 18 years. Most Americans feel that jobs are widely available and expect the economy to remain healthy in the coming months, according to the Conference Board’s consumer confidence survey.

The buoyant mood is lifting spending on everything from cars to restaurant meals to clothes. Consumers’ enthusiasm is even boosting such brick-and-mortar store chains as Target, Walmart and Best Buy, which have posted strong sales gains despite intensifying competition from online retailers.

In August, factories expanded at their quickest pace in 14 years, according to a survey of purchasing managers. A manufacturing index compiled by a trade group reached its highest point since 2004. Measures of new orders and production surged, and factories added jobs at a faster pace than in July.

Not all the economic news has been positive. Higher mortgage rates and years of rapid price increases are slowing the housing market. Sales of existing homes dropped in July for a fourth straight month.

And wages are still rising only modestly, even after more than nine years of economic expansion and an ultra-low unemployment rate.

Many economists also worry President Donald Trump will soon follow through on a threat to impose tariffs of up to 25 percent on $200 billion of imports from China. That would be in addition to $50 billion in duties already imposed. That move could shave as much as a quarter-point off growth over the next year, Mark Zandi, chief economist at Moody’s Analytics, has estimated. 

For now, there’s little sign that companies are worried enough about a trade war to slow hiring. Businesses are increasingly reluctant to even lay off workers, in part because it would be difficult to replace them at a time when qualified job applicants have become harder to find.

On Thursday, the government said the number of people seeking unemployment benefits — a proxy for layoffs — amounted to just 203,000 last week, the fewest total in 49 years.

US Adds Strong 201K Jobs; Unemployment Stays at 3.9 Percent

Hiring picked up in August as U.S. employers added a strong 201,000 jobs, a sign of confidence that consumers and businesses will keep spending despite the Trump administration’s conflicts with U.S. trading partners.

The Labor Department said Friday the unemployment rate remained 3.9 percent, near an 18-year low. 

Americans’ paychecks grew at a faster pace in August. Average hourly wages rose last month and are now 2.9 percent higher than they were a year earlier, the fastest year-over-year gain in eight years. Still, after adjusting for inflation, pay has been flat for the past year.

The economy is expanding steadily, fueled by tax cuts, confident consumers, greater business investment in equipment and more government spending. Growth reached 4.2 percent at an annual rate in the April-June quarter, the fastest pace in four years.

Most analysts have forecast that the economy will expand at an annual pace of at least 3 percent in the current July-September quarter. For the full year, the economy is on track to grow 3 percent for the first time since 2005. 

Consumer confidence rose in August to its highest level in nearly 18 years. Most Americans feel that jobs are widely available and expect the economy to remain healthy in the coming months, according to the Conference Board’s consumer confidence survey.

The buoyant mood is lifting spending on everything from cars to restaurant meals to clothes. Consumers’ enthusiasm is even boosting such brick-and-mortar store chains as Target, Walmart and Best Buy, which have posted strong sales gains despite intensifying competition from online retailers.

In August, factories expanded at their quickest pace in 14 years, according to a survey of purchasing managers. A manufacturing index compiled by a trade group reached its highest point since 2004. Measures of new orders and production surged, and factories added jobs at a faster pace than in July.

Not all the economic news has been positive. Higher mortgage rates and years of rapid price increases are slowing the housing market. Sales of existing homes dropped in July for a fourth straight month.

And wages are still rising only modestly, even after more than nine years of economic expansion and an ultra-low unemployment rate.

Many economists also worry President Donald Trump will soon follow through on a threat to impose tariffs of up to 25 percent on $200 billion of imports from China. That would be in addition to $50 billion in duties already imposed. That move could shave as much as a quarter-point off growth over the next year, Mark Zandi, chief economist at Moody’s Analytics, has estimated. 

For now, there’s little sign that companies are worried enough about a trade war to slow hiring. Businesses are increasingly reluctant to even lay off workers, in part because it would be difficult to replace them at a time when qualified job applicants have become harder to find.

On Thursday, the government said the number of people seeking unemployment benefits — a proxy for layoffs — amounted to just 203,000 last week, the fewest total in 49 years.

Warnings of Huge Disruption as Britain Prepares for Possible Cliff-Edge Brexit

Britain risks huge disruptions to its economy and society, including trade, transport, health care and citizens’ rights, if it leaves the European Union next March without a deal. That’s the conclusion of a new report on the short-term risks of a so-called ‘no-deal Brexit.’ The report comes as lawmakers return to London after a six-week summer break to face growing uncertainty over Britain’s future relations with the EU. Henry Ridgwell reports from London.

Warnings of Huge Disruption as Britain Prepares for Possible Cliff-Edge Brexit

Britain risks huge disruptions to its economy and society, including trade, transport, health care and citizens’ rights, if it leaves the European Union next March without a deal. That’s the conclusion of a new report on the short-term risks of a so-called ‘no-deal Brexit.’ The report comes as lawmakers return to London after a six-week summer break to face growing uncertainty over Britain’s future relations with the EU. Henry Ridgwell reports from London.

Canada’s Strong-willed Foreign Minister Leads Trade Talks

She is many things that would seem to irritate President Donald Trump: a liberal Canadian former journalist.

That makes Foreign Minister Chrystia Freeland an unusual choice to lead Canada’s negotiations over a new free trade deal with a surprisingly hostile U.S. administration.

Recruited into politics by Prime Minister Justin Trudeau, Freeland has already clashed with Russia and Saudi Arabia. Those who know her say she’s unlikely to back down in a confrontation with Trump.

“She is everything the Trump administration loathes,” said Sarah Goldfeder, a former official with the U.S. Embassy in Canada.

Freeland, a globalist negotiating with a U.S. administration that believes in economic nationalism and populism, hopes to salvage a free trade deal with Canada’s largest trading partner as talks resumed Wednesday in Washington. The 50-year-old Harvard graduate and Rhodes scholar speaks five languages and has influential friends around the world.

“I have enormous sympathy for her because she is negotiating with an unpredictable, irrational partner,” said CNN host Fareed Zakaria, a friend of Freeland’s for 25 years.

Freeland cut short a trip to Europe last week after Trump reached a deal with Mexico that excluded Canada. Talks with Canada resumed but Trump said he wasn’t willing to make any concessions.

The Trump administration left Canada out of the talks for five weeks not long after the president vowed to make Canada pay after Trudeau said at the G-7 in Quebec he wouldn’t let Canada get pushed around in trade talks. Freeland then poked the U.S. when she received Foreign Policy magazine’s diplomat of the year award in Washington.

“You may feel today that your size allows you to go mano-a-mano with your traditional adversaries and be guaranteed to win,” Freeland said in the June speech. “But if history tells us one thing, it is that no one nation’s pre-eminence is eternal.”

Despite being the chief negotiator with the Trump administration, Freeland has criticized it when few other leaders of Western democracies have.

“She’s an extremely strong-willed and capable young woman, and I think Trump generally has a problem with that,” said Ian Bremmer, a longtime friend and foreign affairs columnist and president of the Eurasia Group. “She’s not going to bat her eyelashes at Trump to get something done. That’s not Chrystia. She doesn’t play games.”

After Freeland and her department tweeted criticism of Saudi Arabia last month for the arrest of social activists in the kingdom, Canada suffered consequences. The Saudis suspended diplomatic relations and canceled new trade with Canada and sold off Canadian assets.

Peter MacKay, a former Canadian foreign minister, said public shaming like that doesn’t work and said some Americans viewed her June speech in Washington as something less than diplomatic.

“It was around that time, within days, that the U.S. threw Canada out of the room,” MacKay said. “There is sometimes concern that she is taking the lead from her prime minister by playing a little bit to a domestic audience.”

Trudeau personally recruited Freeland to join his Liberal Party while it was the third party in Parliament in 2013. Freeland had a senior position at the Reuters news agency but was ready to move on after setbacks in her journalism career, said Martin Wolf, an influential Financial Times columnist and longtime friend.

Freeland previously had risen rapidly at the Financial Times where she became Moscow bureau chief in her mid-20s during the collapse of the Soviet Union.

Freeland also served as deputy editor of the Globe and Mail in Toronto and the Financial Times. She had designs on becoming editor of the Financial Times but left after a clash with the top editor. She was familiar to many TV viewers in the U.S. because of her regular appearances on talk shows like Zakaria’s.

“She was a godsend for us, frankly, because she is so bright and so talented and articulate,” Zakaria said. “She is as about as impressive a person as I have met.”

Freeland, who is of Ukrainian heritage, also wrote a well-received book on Russia and left journalism for politics in 2013 when she won a district in Toronto. She has been a frequent critic of Russian President Vladimir Putin, who banned her from traveling to the country in 2014 in retaliation for Western sanctions against Moscow.

She remains chummy with journalists, even bringing them frozen treats in 90-degree heat last week while they waited outside the U.S. Trade Representative office in Washington.

Bremmer, who met Freeland in Kiev in 1992, good-naturedly chided her for a strange foible: a habit of writing notes on her hands even when she has notepads.

“I have seen in her environments with foreign ministers and heads of state with stuff on her hands,” he said with a laugh.

Throughout her career, Freeland has cultivated an impressive group of friends. Mark Carney, the Bank of England governor, is a godfather to one of her three children. Friends include Larry Summers, the former U.S. treasury secretary, and billionaires George Soros and Stephen Schwarzman, the Blackstone Group chief executive who once led one of Trump’s disbanded business councils.

“I always found her to be extremely smart and easy to talk with,” Schwarzman said. “She accessible and direct and quick. You don’t get to be a Rhodes scholar by accident.”

Summers is a mentor from Harvard.

“Her clarity of thought, straightforwardness and deep sense of principle make her an ideal leader of the international community as it responds to highly problematic American policy,” Summers said in an email.

Bremmer said Freeland has serious globalist credentials, “but right now, momentum is not with that group globally.”

When Trudeau became prime minister in 2015, he named Freeland to his Cabinet. She served as international trade minister and worked on ensuring that a free trade deal with the European Union didn’t unravel. At one point, she left stalled talks near tears after saying it had been impossible to overcome differences. An agreement was reached not long after that, and Freeland received credit.

Now she’s facing her toughest challenge with the North American Free Trade Agreement, since the U.S. represents 75 percent of Canada’s exports.

“Canada is stuck with the United States. That’s Canada’s trade,” Bremmer said. “Canadians are going to have to swallow a fair amount of pride. They are going have to pretend they like this guy a lot more than they obviously do or they risk getting much more economically punished. That’s just the reality.”

Canada’s Strong-willed Foreign Minister Leads Trade Talks

She is many things that would seem to irritate President Donald Trump: a liberal Canadian former journalist.

That makes Foreign Minister Chrystia Freeland an unusual choice to lead Canada’s negotiations over a new free trade deal with a surprisingly hostile U.S. administration.

Recruited into politics by Prime Minister Justin Trudeau, Freeland has already clashed with Russia and Saudi Arabia. Those who know her say she’s unlikely to back down in a confrontation with Trump.

“She is everything the Trump administration loathes,” said Sarah Goldfeder, a former official with the U.S. Embassy in Canada.

Freeland, a globalist negotiating with a U.S. administration that believes in economic nationalism and populism, hopes to salvage a free trade deal with Canada’s largest trading partner as talks resumed Wednesday in Washington. The 50-year-old Harvard graduate and Rhodes scholar speaks five languages and has influential friends around the world.

“I have enormous sympathy for her because she is negotiating with an unpredictable, irrational partner,” said CNN host Fareed Zakaria, a friend of Freeland’s for 25 years.

Freeland cut short a trip to Europe last week after Trump reached a deal with Mexico that excluded Canada. Talks with Canada resumed but Trump said he wasn’t willing to make any concessions.

The Trump administration left Canada out of the talks for five weeks not long after the president vowed to make Canada pay after Trudeau said at the G-7 in Quebec he wouldn’t let Canada get pushed around in trade talks. Freeland then poked the U.S. when she received Foreign Policy magazine’s diplomat of the year award in Washington.

“You may feel today that your size allows you to go mano-a-mano with your traditional adversaries and be guaranteed to win,” Freeland said in the June speech. “But if history tells us one thing, it is that no one nation’s pre-eminence is eternal.”

Despite being the chief negotiator with the Trump administration, Freeland has criticized it when few other leaders of Western democracies have.

“She’s an extremely strong-willed and capable young woman, and I think Trump generally has a problem with that,” said Ian Bremmer, a longtime friend and foreign affairs columnist and president of the Eurasia Group. “She’s not going to bat her eyelashes at Trump to get something done. That’s not Chrystia. She doesn’t play games.”

After Freeland and her department tweeted criticism of Saudi Arabia last month for the arrest of social activists in the kingdom, Canada suffered consequences. The Saudis suspended diplomatic relations and canceled new trade with Canada and sold off Canadian assets.

Peter MacKay, a former Canadian foreign minister, said public shaming like that doesn’t work and said some Americans viewed her June speech in Washington as something less than diplomatic.

“It was around that time, within days, that the U.S. threw Canada out of the room,” MacKay said. “There is sometimes concern that she is taking the lead from her prime minister by playing a little bit to a domestic audience.”

Trudeau personally recruited Freeland to join his Liberal Party while it was the third party in Parliament in 2013. Freeland had a senior position at the Reuters news agency but was ready to move on after setbacks in her journalism career, said Martin Wolf, an influential Financial Times columnist and longtime friend.

Freeland previously had risen rapidly at the Financial Times where she became Moscow bureau chief in her mid-20s during the collapse of the Soviet Union.

Freeland also served as deputy editor of the Globe and Mail in Toronto and the Financial Times. She had designs on becoming editor of the Financial Times but left after a clash with the top editor. She was familiar to many TV viewers in the U.S. because of her regular appearances on talk shows like Zakaria’s.

“She was a godsend for us, frankly, because she is so bright and so talented and articulate,” Zakaria said. “She is as about as impressive a person as I have met.”

Freeland, who is of Ukrainian heritage, also wrote a well-received book on Russia and left journalism for politics in 2013 when she won a district in Toronto. She has been a frequent critic of Russian President Vladimir Putin, who banned her from traveling to the country in 2014 in retaliation for Western sanctions against Moscow.

She remains chummy with journalists, even bringing them frozen treats in 90-degree heat last week while they waited outside the U.S. Trade Representative office in Washington.

Bremmer, who met Freeland in Kiev in 1992, good-naturedly chided her for a strange foible: a habit of writing notes on her hands even when she has notepads.

“I have seen in her environments with foreign ministers and heads of state with stuff on her hands,” he said with a laugh.

Throughout her career, Freeland has cultivated an impressive group of friends. Mark Carney, the Bank of England governor, is a godfather to one of her three children. Friends include Larry Summers, the former U.S. treasury secretary, and billionaires George Soros and Stephen Schwarzman, the Blackstone Group chief executive who once led one of Trump’s disbanded business councils.

“I always found her to be extremely smart and easy to talk with,” Schwarzman said. “She accessible and direct and quick. You don’t get to be a Rhodes scholar by accident.”

Summers is a mentor from Harvard.

“Her clarity of thought, straightforwardness and deep sense of principle make her an ideal leader of the international community as it responds to highly problematic American policy,” Summers said in an email.

Bremmer said Freeland has serious globalist credentials, “but right now, momentum is not with that group globally.”

When Trudeau became prime minister in 2015, he named Freeland to his Cabinet. She served as international trade minister and worked on ensuring that a free trade deal with the European Union didn’t unravel. At one point, she left stalled talks near tears after saying it had been impossible to overcome differences. An agreement was reached not long after that, and Freeland received credit.

Now she’s facing her toughest challenge with the North American Free Trade Agreement, since the U.S. represents 75 percent of Canada’s exports.

“Canada is stuck with the United States. That’s Canada’s trade,” Bremmer said. “Canadians are going to have to swallow a fair amount of pride. They are going have to pretend they like this guy a lot more than they obviously do or they risk getting much more economically punished. That’s just the reality.”

Trump Team, Canada Officials Resume Talks to Revamp NAFTA

Trump administration officials and Canadian negotiators are resuming talks to try to keep Canada in a North American trade bloc with the United States and Mexico.

“We are looking forward to constructive conversations today,” Canadian Foreign Affairs Minister Chrystia Freeland told reporters as she entered a meeting with U.S. Trade Rep. Robert Lighthizer.

Last week, the United States and Mexico reached a preliminary agreement to replace the 24-year-old North American Free Trade Agreement. But those talks excluded Canada, the third NAFTA country.

 

Freeland flew to Washington last week for four days of negotiations to try to keep Canada within the regional trade bloc. The U.S. and Canada are sparring over issues including U.S. access to Canada’s protected dairy market and American plans to protect some drug companies from generic competition.

 

 

Trump Team, Canada Officials Resume Talks to Revamp NAFTA

Trump administration officials and Canadian negotiators are resuming talks to try to keep Canada in a North American trade bloc with the United States and Mexico.

“We are looking forward to constructive conversations today,” Canadian Foreign Affairs Minister Chrystia Freeland told reporters as she entered a meeting with U.S. Trade Rep. Robert Lighthizer.

Last week, the United States and Mexico reached a preliminary agreement to replace the 24-year-old North American Free Trade Agreement. But those talks excluded Canada, the third NAFTA country.

 

Freeland flew to Washington last week for four days of negotiations to try to keep Canada within the regional trade bloc. The U.S. and Canada are sparring over issues including U.S. access to Canada’s protected dairy market and American plans to protect some drug companies from generic competition.

 

 

Wild Blueberries Sing the Blues, With Industry in Decline

In the era of superfoods, Maine blueberries aren’t so super.

 

The Maine wild blueberry industry harvests one of the most beloved fruit crops in New England, but it’s locked in a downward skid in a time when other nutrition-packed foods, from acai to quinoa, dominate the conversation about how to eat. And questions linger about when, and if, the berry will be able to make a comeback.

 

The little blueberries are touted by health food bloggers and natural food stores because of their hefty dose of antioxidants. They’re also deeply ingrained in the culture of New England, and they were the inspiration for “Blueberries for Sal,” a beloved 1948 children’s book.​

But the industry that picks and sells them is dealing with a long-term price drop, drought, freezes, diseases and foreign competition, and farmers are looking at a second consecutive year of reduced crop size.

At Beech Hill Blueberry Farm in Rockport, this year’s harvest was off by about 50 percent, said Ian Stewart, who runs the land trust that manages the farm.

 

“Our year was a little underwhelming. There was a lot of drought. There was a freeze at a bad time,” Stewart said. “We’re hoping it’s a blip. We’ll see.”

North America’s wild blueberry industry exists only in Maine and Atlantic Canada, and an oversupply of berries in both places caused prices to harvesters to plummet around 2015. Recent years have brought new challenges, such as particularly bad spells of mummy berry disease, a fungal pathogen, and difficulty in opening up new markets.

 

The blueberries grow wild, as the name implies, in fields called “blueberry barrens” that stretch to the horizon in Maine’s rural Down East region. While the plumper cultivated blueberries harvested in states like New Jersey are planted and grown as crops, harvesters of wild blueberries tend to a naturally occurring fruit and pick it by hand and with machinery.

 

Woes in the industry have caused some growers to scale back operations in Maine. Harvesters collected a little less than 68 million pounds of wild blueberries in the state in 2017, which was the lowest total since 2005 and more than 33 million pounds less than 2016. Last year’s price of 26 cents per pound to farmers was also the lowest since 1985, and was more in line with the kind of prices farmers saw in the early 1970s than in the modern era.

This year’s harvest was mostly wrapped by late August, a little earlier than usual, and members of the industry said they believe it was another year of lower harvest. Exact totals aren’t available yet, but signs point to a crop that’s “similar to last year, or even smaller,” said Nancy McBrady, executive director of the Wild Blueberry Commission of Maine.

The industry has tried to focus on growing the appeal of the health aspects of wild blueberries, which are richer in antioxidants than their cultivated cousins, but it has been a slow climb, McBrady said.

 

“For years, the health message and the taste message of wild blueberries has been successful,” she said. “But it’s frustrating when we find ourselves in periods of oversupply and competition.”

 

Nearly 100 percent of the wild crop is frozen, and the berries are used in frozen and processed foods. Prices to consumers at farm stands and grocery stores have held about steady in the face of falling prices to harvesters.

 

The same berries are harvested in Quebec, New Brunswick, Nova Scotia, Newfoundland and Prince Edward Island, and the weakness of the Canadian dollar has also hurt the U.S. industry because Canadian berries sell for less. Some companies operate on both sides of the border, and an equal exchange rate is better for business.

 

Such financial stress played a role in growers harvesting 5,000 fewer acres in the U.S. last year, said David Yarborough, a horticulture professor at the University of Maine. He said he expects a similar drop this year.

 

Other factors, such as poor pollination last year, have also held the crop back, Yarborough said. He stopped short of describing the industry as in full-blown crisis, but he said some smaller growers are in crisis mode.

The industry at large is hoping it doesn’t suffer too many more down years, said Homer Woodward, vice president of operations for Jasper Wyman & Son, a major industry player.

 

“I think the state of Maine is going to pick less pounds than last year. That’s the product of economic downturn,” said Woodward said. “And mother nature was cruel to us this year.”

Wild Blueberries Sing the Blues, With Industry in Decline

In the era of superfoods, Maine blueberries aren’t so super.

 

The Maine wild blueberry industry harvests one of the most beloved fruit crops in New England, but it’s locked in a downward skid in a time when other nutrition-packed foods, from acai to quinoa, dominate the conversation about how to eat. And questions linger about when, and if, the berry will be able to make a comeback.

 

The little blueberries are touted by health food bloggers and natural food stores because of their hefty dose of antioxidants. They’re also deeply ingrained in the culture of New England, and they were the inspiration for “Blueberries for Sal,” a beloved 1948 children’s book.​

But the industry that picks and sells them is dealing with a long-term price drop, drought, freezes, diseases and foreign competition, and farmers are looking at a second consecutive year of reduced crop size.

At Beech Hill Blueberry Farm in Rockport, this year’s harvest was off by about 50 percent, said Ian Stewart, who runs the land trust that manages the farm.

 

“Our year was a little underwhelming. There was a lot of drought. There was a freeze at a bad time,” Stewart said. “We’re hoping it’s a blip. We’ll see.”

North America’s wild blueberry industry exists only in Maine and Atlantic Canada, and an oversupply of berries in both places caused prices to harvesters to plummet around 2015. Recent years have brought new challenges, such as particularly bad spells of mummy berry disease, a fungal pathogen, and difficulty in opening up new markets.

 

The blueberries grow wild, as the name implies, in fields called “blueberry barrens” that stretch to the horizon in Maine’s rural Down East region. While the plumper cultivated blueberries harvested in states like New Jersey are planted and grown as crops, harvesters of wild blueberries tend to a naturally occurring fruit and pick it by hand and with machinery.

 

Woes in the industry have caused some growers to scale back operations in Maine. Harvesters collected a little less than 68 million pounds of wild blueberries in the state in 2017, which was the lowest total since 2005 and more than 33 million pounds less than 2016. Last year’s price of 26 cents per pound to farmers was also the lowest since 1985, and was more in line with the kind of prices farmers saw in the early 1970s than in the modern era.

This year’s harvest was mostly wrapped by late August, a little earlier than usual, and members of the industry said they believe it was another year of lower harvest. Exact totals aren’t available yet, but signs point to a crop that’s “similar to last year, or even smaller,” said Nancy McBrady, executive director of the Wild Blueberry Commission of Maine.

The industry has tried to focus on growing the appeal of the health aspects of wild blueberries, which are richer in antioxidants than their cultivated cousins, but it has been a slow climb, McBrady said.

 

“For years, the health message and the taste message of wild blueberries has been successful,” she said. “But it’s frustrating when we find ourselves in periods of oversupply and competition.”

 

Nearly 100 percent of the wild crop is frozen, and the berries are used in frozen and processed foods. Prices to consumers at farm stands and grocery stores have held about steady in the face of falling prices to harvesters.

 

The same berries are harvested in Quebec, New Brunswick, Nova Scotia, Newfoundland and Prince Edward Island, and the weakness of the Canadian dollar has also hurt the U.S. industry because Canadian berries sell for less. Some companies operate on both sides of the border, and an equal exchange rate is better for business.

 

Such financial stress played a role in growers harvesting 5,000 fewer acres in the U.S. last year, said David Yarborough, a horticulture professor at the University of Maine. He said he expects a similar drop this year.

 

Other factors, such as poor pollination last year, have also held the crop back, Yarborough said. He stopped short of describing the industry as in full-blown crisis, but he said some smaller growers are in crisis mode.

The industry at large is hoping it doesn’t suffer too many more down years, said Homer Woodward, vice president of operations for Jasper Wyman & Son, a major industry player.

 

“I think the state of Maine is going to pick less pounds than last year. That’s the product of economic downturn,” said Woodward said. “And mother nature was cruel to us this year.”

Venezuelan Gas Lines Stretch as New Payment System Flops

Frustrated Venezuelan drivers faced lengthy lines for gasoline in border states Tuesday as the government struggled to roll out a new payment system that President Nicolas Maduro says will reduce smuggling of heavily subsidized fuel.

Maduro says the payment system will pave the way for charging international prices for fuel, a massive increase given that gas is now almost free, as his government seeks to shore up state coffers amid a hyperinflationary economic meltdown.

Any increase would mark the first time in 20 years that the OPEC member has significantly raised domestic fuel prices, which have been a sensitive issue ever since deadly riots broke out in 1989 in response to austerity measures that included higher gasoline prices.

​Fatherland Card flops

The pilot program that began Tuesday in eight states was supposed to provide service stations with wireless devices that use a state-backed identification document called the Fatherland Card to carry out fuel transactions.

“I see a lot of disorganization because they haven’t started making this work yet,” said Jose Coronel, 26, a civil servant, as he waited in line at a gas station in the border town of Ureña. “I can see that it’s difficult to control smuggling.”

At gas stations along the border with neighboring Colombia, the new machines were either not installed or not functioning properly, according to drivers filling up their tanks and two gas station attendants in two different states.

The new payment system will provide a subsidy to motorists with a Fatherland Card, directly reimbursing them for gasoline purchases, once the domestic fuel price hikes take effect.

Maduro says that will help soften the impact of a steep price increase.

Drivers on the border started lining up as early as Monday afternoon on concerns that the price hikes would be immediate or that stations would run out of fuel.

The Information Ministry did not immediately reply to a request for comment.

​Gas card or surveillance tool

Experts estimate Venezuela, where shortages of food and medicine have fueled hunger, disease and a mass exodus of citizens, loses at least $5 billion per year as a result of not selling gasoline at international prices.

Maduro on Monday said gasoline would rise to international price levels by October, without offering details.

The use of the Fatherland Card has drawn intense criticism from government critics, who say it is a mechanism to gather information about citizens that the ruling Socialist Party can use against adversaries by withholding basic services from them.

The government offers some benefits including subsidized food, access to scarce medicine and cash bonuses to holders of the card. Maduro says it will help combat an “economic war” led by opposition politicians with the help of Washington.

Fuel prices have stayed relatively steady for years even though inflation is projected by the IMF to reach 1,000,000 percent.

Unay Bayona, 24, an independent merchant, said he doubted prices would ever rise enough to match those in Colombia, and that residents would continue to view contraband as an option.

“Smuggling is going to continue because there is no other way to make a living,” Bayona said, at the entrance to a service station in Ureña.

Venezuelan Gas Lines Stretch as New Payment System Flops

Frustrated Venezuelan drivers faced lengthy lines for gasoline in border states Tuesday as the government struggled to roll out a new payment system that President Nicolas Maduro says will reduce smuggling of heavily subsidized fuel.

Maduro says the payment system will pave the way for charging international prices for fuel, a massive increase given that gas is now almost free, as his government seeks to shore up state coffers amid a hyperinflationary economic meltdown.

Any increase would mark the first time in 20 years that the OPEC member has significantly raised domestic fuel prices, which have been a sensitive issue ever since deadly riots broke out in 1989 in response to austerity measures that included higher gasoline prices.

​Fatherland Card flops

The pilot program that began Tuesday in eight states was supposed to provide service stations with wireless devices that use a state-backed identification document called the Fatherland Card to carry out fuel transactions.

“I see a lot of disorganization because they haven’t started making this work yet,” said Jose Coronel, 26, a civil servant, as he waited in line at a gas station in the border town of Ureña. “I can see that it’s difficult to control smuggling.”

At gas stations along the border with neighboring Colombia, the new machines were either not installed or not functioning properly, according to drivers filling up their tanks and two gas station attendants in two different states.

The new payment system will provide a subsidy to motorists with a Fatherland Card, directly reimbursing them for gasoline purchases, once the domestic fuel price hikes take effect.

Maduro says that will help soften the impact of a steep price increase.

Drivers on the border started lining up as early as Monday afternoon on concerns that the price hikes would be immediate or that stations would run out of fuel.

The Information Ministry did not immediately reply to a request for comment.

​Gas card or surveillance tool

Experts estimate Venezuela, where shortages of food and medicine have fueled hunger, disease and a mass exodus of citizens, loses at least $5 billion per year as a result of not selling gasoline at international prices.

Maduro on Monday said gasoline would rise to international price levels by October, without offering details.

The use of the Fatherland Card has drawn intense criticism from government critics, who say it is a mechanism to gather information about citizens that the ruling Socialist Party can use against adversaries by withholding basic services from them.

The government offers some benefits including subsidized food, access to scarce medicine and cash bonuses to holders of the card. Maduro says it will help combat an “economic war” led by opposition politicians with the help of Washington.

Fuel prices have stayed relatively steady for years even though inflation is projected by the IMF to reach 1,000,000 percent.

Unay Bayona, 24, an independent merchant, said he doubted prices would ever rise enough to match those in Colombia, and that residents would continue to view contraband as an option.

“Smuggling is going to continue because there is no other way to make a living,” Bayona said, at the entrance to a service station in Ureña.

Argentina Seeks Early Release of Funds from IMF

Argentina will have to wait at least until the second half of September to find out whether the International Monetary Fund will agree to the early release of a credit line under a $50 billion backup financing arrangement approved earlier this year, Economy Minister Nicolas Dujovne said Tuesday.

 

Dujovne declined to say how much money he had requested during a meeting with IMF Managing Director Christine Lagarde.

 

“All this requires a formal procedure so it receives an agreement at the staff level, which could be taken before the board,” Dujovne told reporters after the meeting, adding that he expects the IMF to vote on the request in the second half of the month.

 

Lagarde said they made progress in the meeting.

 

“Our discussions will now continue at a technical level and, as stated before, our common objective is to reach a rapid conclusion to present a proposal to the IMF Executive Board,” she said in a statement.

 

While the meeting between Dujovne and Lagarde was grabbing most of the headlines, the Argentine peso kept losing value. The U.S. dollar closed Tuesday at 39.50 pesos per unit compared to 38 the day before. The peso has devaluated around 53 percent so far this year.

 

Dujovne’s meeting with the IMF’s managing director followed a morning session with U.S. Treasury Secretary Steve Mnuchin.

 

Meanwhile, President Donald Trump spoke with Argentine President Mauricio Macri on Tuesday.

 

A statement from Trump said that “President Macri is doing an excellent job with this very difficult economic and financial situation.”

 

Macri on Monday announced new taxes on exports and the elimination of several ministries.

Qatar Lifts Controversial Exit Visa System for Workers

Qatar amended its residency laws on Tuesday to allow foreign workers to leave the country without exit permits from their employers, a provision which labour rights groups have long said should be abolished.

Doha is keen to show it is tackling allegations of worker exploitation as it prepares to host the 2022 soccer World Cup, which it has presented as a showcase of its progress and development.

Most migrant workers would be able to leave the country without having to obtain permits from their employers under the law, said the International Labour Organization in a statement via its Doha office.

The ILO hailed the move as a “significant step” for gas-rich Qatar, which committed last year to introducing sweeping labour reforms, including changes to the exit visa system.

“The ILO welcomes the enactment of Law No. 13, which will have a direct and positive impact on the lives of migrant workers in Qatar,” said Houtan Homayounpour, the head of the ILO office in Doha, which was set up in April.

The official Qatar News Agency confirmed the adoption of Law No. 13, saying it amended “certain provisions” of previous laws regulating the entry, exit and residency of expatriates. It did not specify which provisions or offer details on the changes.

Labour and rights groups have attacked Qatar for its “kafala” sponsorship system, which is common in Gulf states where large portions of the population is foreign.

Qatar’s system still requires the country’s 1.6 million mainly Asian foreign workers to obtain their employers’ consent before changing jobs, which the groups say leaves workers open to abuse.

The government’s other pledged reforms include introduction of a minimum wage and a grievance procedure for workers.

Qatar Lifts Controversial Exit Visa System for Workers

Qatar amended its residency laws on Tuesday to allow foreign workers to leave the country without exit permits from their employers, a provision which labour rights groups have long said should be abolished.

Doha is keen to show it is tackling allegations of worker exploitation as it prepares to host the 2022 soccer World Cup, which it has presented as a showcase of its progress and development.

Most migrant workers would be able to leave the country without having to obtain permits from their employers under the law, said the International Labour Organization in a statement via its Doha office.

The ILO hailed the move as a “significant step” for gas-rich Qatar, which committed last year to introducing sweeping labour reforms, including changes to the exit visa system.

“The ILO welcomes the enactment of Law No. 13, which will have a direct and positive impact on the lives of migrant workers in Qatar,” said Houtan Homayounpour, the head of the ILO office in Doha, which was set up in April.

The official Qatar News Agency confirmed the adoption of Law No. 13, saying it amended “certain provisions” of previous laws regulating the entry, exit and residency of expatriates. It did not specify which provisions or offer details on the changes.

Labour and rights groups have attacked Qatar for its “kafala” sponsorship system, which is common in Gulf states where large portions of the population is foreign.

Qatar’s system still requires the country’s 1.6 million mainly Asian foreign workers to obtain their employers’ consent before changing jobs, which the groups say leaves workers open to abuse.

The government’s other pledged reforms include introduction of a minimum wage and a grievance procedure for workers.

Aid Agency: Yemen’s Plunging Economy Threatens to Kill More People Than War

Yemen’s tanking economy threatens to kill more people than bombs and guns, an aid agency warned on Tuesday as the currency hit its lowest level ever, compounding the world’s biggest hunger crisis.

The Norwegian Refugee Council (NRC) said soaring food prices were pushing many people closer to the brink in a country where millions are already close to famine.

“This economic collapse could kill even more Yemenis than the violence underlying it,” NRC’s Yemen country director Mohamed Abdi said, adding that food prices in some places had doubled in recent days.

“The situation is terrible. If something is not done it is only going to get worse,” he told Reuters by phone.

The Yemeni rial was exchanging at 630 to the dollar in the port city of Aden on Monday, according to the NRC, up from less than 250 at the beginning of the conflict in 2015.

Protests over the economy, which erupted in Aden on Sunday, were continuing Tuesday, Abdi said.

Three-quarters of Yemen’s population — 22 million people — are in need of humanitarian assistance.

More than 28,000 people have been killed or wounded during the war and 3 million have been uprooted, according to United Nations officials. Thousands more have died from malnutrition, disease and poor health.

The war pits the government of President Abd-Rabbu Mansour Hadi, based in the south and backed by Saudi Arabia, against the Iran-aligned Houthi movement that controls the north including the capital Sanaa.

“Even buying an egg is very expensive now,” the NRC quoted one woman in the port city of Hodeida as saying.

“Before we would spare what we could to help beggars in the streets, but now we have nothing left to offer.”

Abdi said it was “heartbreaking” to see civil servants who have not been paid for two years reduced to begging in order to feed their families.

The World Food Program (WFP) says 8.4 million people are “precariously close to famine.”

WFP’s Yemen representative Stephen Anderson said there had been a dramatic increase in severe hunger in the last year as food prices rose and jobs dried up.

“Yemen is in free fall. We are extremely worried about the worsening economic conditions,” he told Reuters.

He said the WFP and aid agencies were targeting the people closest to famine, but there were another 10 million people who were going hungry and not getting help.

“Our concern is that if prices continue to rise, it will tip more people into severe hunger,” Anderson said.

Ethiopia Opens Logistics Sector to Foreign Investment

Ethiopia will open its logistics sector to foreign investors but cap their participation, the state investment body said on Tuesday in the latest reform to loosen the government’s control of the economy.

Prime Minister Abiy Ahmed has presided over a shake-up of one of the most heavily-regulated economies in Africa since his appointment in April.

But while Ethiopia has introduced incentives such as tax holidays and subsidized loans to boost investment, bureaucracy and logistics constraints leave it at a low ranking in World Bank global trade logistics indexes.

The latest move by the Ethiopian Investment Board – a body headed by Abiy and comprised of several ministers and the central bank governor – lifted restrictions on foreign investment in packaging, forwarding and shipping agency services.

Those sectors were previously reserved exclusively to Ethiopian nationals. Foreign firms will now be allowed to take stakes of up to 49 percent in logistics businesses.

The Ethiopian Investment Commission, a government body that handles investment issues such as licensing and promotion, said opening up this sector to foreign investors had become necessary.

This will “improve the provision of high-end logistics services while local firms acquire world class knowledge, expertise, management, and systems by working jointly with globally reputed logistics providers,” it said in a statement.

The ruling EPRDF coalition, in power since 1991, has long supported deep state involvement. But it said earlier this year that Ethiopia needed economic reforms to sustain rapid growth and boost exports amid a severe hard currency shortage.

Abiy, 42, was appointed by the EPRDF after his predecessor, Hailemariam Desalegn, resigned in February after three years of unrest in which hundreds of people were killed by security forces.

   

 

Ethiopia Opens Logistics Sector to Foreign Investment

Ethiopia will open its logistics sector to foreign investors but cap their participation, the state investment body said on Tuesday in the latest reform to loosen the government’s control of the economy.

Prime Minister Abiy Ahmed has presided over a shake-up of one of the most heavily-regulated economies in Africa since his appointment in April.

But while Ethiopia has introduced incentives such as tax holidays and subsidized loans to boost investment, bureaucracy and logistics constraints leave it at a low ranking in World Bank global trade logistics indexes.

The latest move by the Ethiopian Investment Board – a body headed by Abiy and comprised of several ministers and the central bank governor – lifted restrictions on foreign investment in packaging, forwarding and shipping agency services.

Those sectors were previously reserved exclusively to Ethiopian nationals. Foreign firms will now be allowed to take stakes of up to 49 percent in logistics businesses.

The Ethiopian Investment Commission, a government body that handles investment issues such as licensing and promotion, said opening up this sector to foreign investors had become necessary.

This will “improve the provision of high-end logistics services while local firms acquire world class knowledge, expertise, management, and systems by working jointly with globally reputed logistics providers,” it said in a statement.

The ruling EPRDF coalition, in power since 1991, has long supported deep state involvement. But it said earlier this year that Ethiopia needed economic reforms to sustain rapid growth and boost exports amid a severe hard currency shortage.

Abiy, 42, was appointed by the EPRDF after his predecessor, Hailemariam Desalegn, resigned in February after three years of unrest in which hundreds of people were killed by security forces.