Ford says it has no plans to move production of a small car from China to the United States despite President Donald Trump’s enthusiastic tweet Sunday.

“It would not be profitable to the build the Focus Active in the U.S. given an expected annual sales volume of fewer than 500,000 units,” a Ford statement said.

Ford earlier announced it would not ship the cars from China to the United States because tariffs would make them too expensive, prompting a Trump tweet saying “This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs.”

Ford may keep building the Focus Active in China, but won’t not sell them in the United States.

Trump has imposed tariffs on $50 billion in Chinese imports to remedy what he calls unfair Chinese trade practices. China has retaliated and both countries threaten more tariffs.
…

Greek Prime Minister Alexis Tsipras on Saturday unveiled plans for tax cuts and pledged spending to heal years of painful austerity, less than a month after Greece emerged from a bailout program financed by its European Union partners and the International Monetary Fund.

Tsipras, who faces elections in about a year, used a keynote policy speech in the northern city of Thessaloniki to announce a spending spree that he said would help fix the ills of years of belt-tightening and help boost growth.

But he said Athens was also committed to sticking to the fiscal targets pledged to lenders.

“We will not allow Greece to revert to the era of deficits and fiscal derailment,” he told an audience of officials, diplomats and businessmen.

Tsipras promised a phased reduction of the corporate tax to 25 percent from 29 percent from next year, as well as an average 30 percent reduction in a deeply unpopular annual property tax on homeowners, rising to 50 percent for low earners.

He also said a pledge to maintain a primary budget surplus at the equivalent of 3.5 percent of gross domestic product could be achieved without further pension cuts, and that he would discuss this with the European Commission.

The government had been expected to announce further pension cuts next year — a deeply controversial measure in a country where high unemployment means that pensioners are occasionally the primary family earners. It is also a group that has been targeted for cutbacks more than a dozen times since 2010.

The leftist premier said he would also reinstate labor rights and increase the minimum wage. And he said the state would either reduce or subsidize social security contributions for certain sections of the workforce.
…

U.S. President Donald Trump said on Friday the United States and Japan have begun discussion over trade, saying that Tokyo “knows it’s a big problem” if an agreement cannot be reached, and that India has also asked to start talks on a trade deal.

“We’re starting that,” Trump told reporters aboard Air Force One. “In fact Japan has called us … they came last week.”

“If we don’t make a deal with Japan, Japan knows it’s a big problem,” he added.

Later in a speech in Sioux Falls, South Dakota, Trump said:

“India called us the other day. They said we’d like to start doing a trade deal. First time.”

“They wouldn’t talk about it with the previous administrations. They were very happy with the way it was,” he said without giving further details.

Trump, who is already challenging China, Mexico, Canada and the European Union on trade issues, has expressed displeasure about his country’s large trade deficit with Japan, but had not asked Tokyo to take specific steps to address the imbalance.

On Thursday, though, CNBC reported he had told a Wall Street Journal columnist he might take on trade issues with Japan, causing the dollar to slip against the yen. The White House said Trump would push for fair trade.

“The president has been clear that he will fight to promote free, fair, and reciprocal trade with countries around the world, including Japan, that impose a range of restrictions on U.S. market access,” White House spokeswoman Lindsay Walters said in a statement.

“The United States and Japan have been in close contact on ways to address such barriers, including through the U.S.-Japan Economic Dialogue.”
…

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.
…

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.
…

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.

 
…

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.
…

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.
…

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 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.

 

 
…

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.”
…

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 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 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.
…

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.
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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.

   

 
…

Yemen’s government says it is giving civil servants and pensioners pay raises, after protests against the country’s woeful economy nearly paralyzed a major port city Sunday.

Officials have not said when the raises would take effect or how much they will be.

Demonstrations against the economy in the port of Aden continued Monday. Many shops were closed, and some people burned tires in the streets.

Some of the marchers demanded to be paid in dollars, accusing senior officials of taking their salaries in the U.S.-based currency while paying the rank-and-file in the increasingly weak Yemeni rial.

The rial has lost more than half its value against the dollar since Iranian-backed Houthi rebels seized the capital of Sanaa in 2014, sending the Western-recognized government into exile in Saudi Arabia.

It has since returned to set up shop in Aden.

Airstrikes

Meanwhile, the Houthis are demanding a war crimes investigation against the Saudi-led coalition after an airstrike last month that killed 40 children.

In an appeal Monday to the International Criminal Court, the Houthis asked the court to look into its “humanitarian conscience.”

A coalition missile struck a market in a Yemeni town near the Saudi border last month, killing 51 people. Among the dead were 40 children on a school bus coming back from a summer camp outing.

The coalition called the airstrike a “mistake.” It promised to hold those behind the attack legally responsible and to compensate the victims.

But the Houithis accuse the Saudis of being both the “judge and the jury” and “making light” of the civilian deaths.

U.N. human rights officials have said they believe both sides in Yemen may be responsible for war crimes.

The Saudi-led airstrikes have compounded the misery in Yemen, which is not only one of the world’s poorest nations, but is also on the edge of famine.

The U.N. has said about 80 percent of Yemeni civilians lack enough food and medical care.

The coalition airstrikes have obliterated entire neighborhoods, including hospitals and schools.
…

Tanned and wearing a swimsuit, So Myong Il walks to the barbecue pit and throws on some clams.

 

He obviously loves the beach he’s on as well as the rugged, emerald Chilbo mountains that rise abruptly behind it. He loves them enough to forget, for a moment at least, that he is a senior official sent to deliver an ideology-soaked pitch singing their praises and instead lets the natural beauty surrounding him speak for itself.

 

Comrade So sees great things for North Korean attractions like this.

Hotels, big and small. Tourists from all over the country, maybe the world. “As long as we have the leadership of our respected Marshal,” he says, referring to leader Kim Jong Un, “our future will be bright indeed.”

 

So wouldn’t think of questioning the leader, but there is a hint of apprehension in his voice. And he isn’t alone.

 

North Korea is pushing ahead with a new strategy of economic development and the intensified diplomacy with China, South Korea and the United States that such a move requires. But hopes for a better future are mixed with concern over potential downsides of political or social volatility, and something that’s harder to articulate: a fear of the unknown – even if it appears far more promising than the arduous path the country has been on for decades.

Even before announcing in January that he had sufficiently perfected his nuclear arsenal and could start to focus on other things, Kim has held economic development to be his primary long-term concern.

 

He has allowed markets and entrepreneurialism to flourish and, since succeeding his father as leader seven years ago, has dramatically transformed the skyline of the capital, Pyongyang, with several high-rise districts. The transformation in the east coast city of Wonsan, where Kim has a summer villa, has been almost as spectacular.

 

As Kim prepares for the 70th anniversary of North Korea’s founding on Sept. 9, his ambitious development plan is being implemented, from the small-time renovation of town halls to the almost biblical-scale mobilization of “soldier-builders,” who are working around the clock to turn the remote northern city of Samjiyon into yet another showcase of Pyongyang-style socialism.

 

Economic development – and how U.S. capital and know-how could speed it along – was President Donald Trump’s big carrot when he met with Kim in Singapore three months ago to try to negotiate a denuclearization deal.

 

But Kim’s diplomatic overtures aren’t intended to open the door to American capitalists, a scenario that would make any good party cadre shudder. They are aimed at breaking down support for sanctions and getting the U.S. to step out of the way. Kim’s game is to play China and the U.S. off each other, grab whatever concessions he can along the way and adjust his position as the situation evolves.

 

In the meantime, lest anyone get the wrong idea, the ruling Workers’ Party of Korea has begun churning out paeans to socialism in its daily newspaper along with anti-capitalism, anti-imperialism screeds that underscore North Korea’s official opposition to essentially anything that might be considered the American way of life. Or, as it’s known in the jargon of North Korea’s propaganda machine, “the imperialists’ bourgeois ideological and cultural poisoning.”

---

 

The past few months have been tense in Pyongyang.

 

Restrictions on some of the movements of foreign diplomats have been tightened, for example, and even requests by The Associated Press to interview government officials or to speak with regular citizens have mostly been denied.

 

Uncertain of where it might all end up, state-run media have provided only limited coverage of Kim’s meetings with Trump in June and his multiple summits with Chinese President Xi Jinping and South Korean President Moon Jae-in. Reports have portrayed Kim as the consummate statesman, firmly in charge of a carefully considered strategy to make his country safer and more prosperous.

 

Kim is ardently wooing South Korean investment to help him build the very things Trump was offering: infrastructure, particularly roads and railways, and the development of selected tourism zones. After a high-profile chill last year, he is also actively courting Beijing, which continues to be an essential source of fuel, a key market for North Korea’s coal and other natural resources and a fairly reliable check on U.S. power in the region.

 

Pyongyang’s explanation for the shift in its foreign policy has been consistent: Having successfully built a credible nuclear deterrent to U.S. aggression, Kim is reaching out to Seoul to join hands in a “for Koreans, by Koreans” effort to secure a lasting peace on the Korean Peninsula, unhindered by the meddling of foreign powers.

 

Undoubtedly, images of the leader smiling and shaking hands with Trump, whose face had never been on the front pages of their newspapers before, signaled a major and bewildering change to many North Koreans.

 

But officials have made sure they don’t have much time to ruminate on it.

 

Normal routines of work and study have been put on hold for large segments of the populace who have been mobilized for the development projects. Tens of thousands of people in Pyongyang, meanwhile, have spent the past several months feverishly preparing for mass rallies and mass games to mark the anniversary.

---

 

Mount Chilbo, a collection of rocky peaks and a stretch of largely untouched seashore on the country’s northeastern fringe, is one of North Korea’s most cherished natural wonders.

 

The first hotel for non-Korean visitors opened in the 1980s, followed in 2004 by homestay-style lodgings near the beach, said So, a North Hamgyong Province People’s Committee official. Together they have a capacity of fewer than 100 guests and only operate from April until early November.

 

Many North Koreans bring tents and sleep on the beach.

 

But even in this rustic corner of the country, the pressure to contribute to Kim’s grand development scheme is keenly felt.

 

So said he would soon travel to China to discuss possible areas of cooperation.

 

As an indicator of Kim’s success with Beijing, tourism from China is already on the rise. Pyongyang’s longer-term goal, however, is to tap the South Korean market. The idea is that, if handled properly, South Korean tourism would present a chance to promote the North in a positive light and boost its image within South Korea.

 

That’s a gamble too.

Back in the late 1990s and early 2000s, South Koreans were allowed to visit in a highly regulated and controlled manner, and massive investment from South Korean businesses helped the North fund infrastructure projects in the same Wonsan-Mount Kumgang area that Kim is focusing on now. But it ended badly in 2008 when a South Korean woman who entered a restricted area was shot to death by a North Korean soldier.

 

So said he believes Chilbo, like Kim’s pet projects in Wonsan, could be a big draw for tourists. But he worries about where the money will come from and what might be lost.

 

“Whatever we do, we need to protect the natural beauty of this place,” he said.”I think there will be many changes in the coming years. Plans are being discussed. But nothing is decided.”

 
…

The International Organization for Migration reports more than 270 Nigerian migrants who recently returned from Libya have completed a skills training course to help them start their own businesses.

Migrants attending this weeklong event in the Nigerian capital Lagos have shared stories of the business frustrations that drove them to try to go to Europe in search of better economic opportunities.

U.N. migration agency spokesman, Paul Dillon, told VOA the migrants also have shared stories of the abuse and suffering they endured at the hands of smugglers and traffickers in Libya. At the same time, he said returnees enrolled in this business course have spoken of their hopes for the future.

“The goal of these types of initiatives is always to give people options and providing them with business skills training, for example. It certainly does that.Start up a small business at home, get hired on by a local company, build your life back in Nigeria. I think that is the goal and also to encourage formal migration efforts,” he said.

This is the 21st training course since the program was started in April 2017. IOM reports more than 2,000 Nigerian returnees have participated in courses given in Lagos, Edo, Nassarawa, Kano and Kaduna States.

Dillon said many of the returnees have become involved in collective reintegration schemes or community-based projects, such as fruit juice, palm oil and plantain processing factories.

He said training now is focused on creating more sustainable businesses, not just on regular trading, buying and selling. Therefore, he said there is greater concentration on agriculture-related businesses, which are more sustainable and more beneficial to the returnees’ communities.

He said IOM, together with the Ministry of Labor and the Lagos Chamber of Commerce and industry are organizing a job fair at the end of September.This, he said, will give returnees the opportunity to meet leaders in Nigeria’s private sector and to search for jobs to match their skills.
…

Investment banks which lost out on big payouts for the work on the shelved listing of oil giant Aramco are lining up for a raft of other projects as Saudi Arabia pursues reforms.

Banks including JPMorgan and Morgan Stanley worked for months to prepare what would have been the biggest ever stock market debut. But the plan to sell 5 percent of the company for a targeted $100 billion was pulled.

The bankers were paid retainer fees but were expecting around $200 million would be shared among all the banks involved when the deal was done.

Now, they are pinning their hopes on other projects from a privatization program that is part of Riyadh’s economic reform plan to loosen its reliance on oil. Without the funds from the Aramco sale, the government is looking to raise money in other ways, creating new opportunities for the banks, bankers say.

Teams from JP Morgan and Morgan Stanley that worked on the IPO, have been shifted to advise on Aramco’ planned acquisition of up to $70 billion in petrochemicals firm Saudi Basic Industries (SABIC), three people familiar with the details of the transaction told Reuters.

HSBC, which was also an adviser on the Aramco IPO, is expected to play a role in putting together the debt to fund that purchase, they said.

One of the sources said the issue could exceed the 2016 sovereign bond issue of $17.5 billion, which was a record for the kingdom. Aramco said earlier this month it was in “very early-stage discussions” with the kingdom’s Public Investment Fund (PIF) to acquire the stake in SABIC but has not said how it will finance the deal.

Spokespeople for JP Morgan, Morgan Stanley and HSBC declined to comment on their role in the Sabic deal. None of those banks have confirmed they were involved in the Aramco IPO. Other deals are expected to be forthcoming.

“The PIF[sovereign wealth fund] has had to reconsider its budget in the last three months, after finding out that they wouldn’t be getting $100 billion from the Aramco IPO right away,” said a banker in Saudi Arabia.

“So there’s been a flurry of activity as they look to raise cash in other ways. A lot of these are smaller deals, $1 billion here and there, but all geared toward financing their commitments for big infrastructure projects without slowing down their timelines.”

The banker did not give details of the other deals. PIF officials did not respond to a Reuters request for comment.

After Reuters reported last week that the Aramco deal had been shelved, Energy Minister Khalid al-Falih said the government was committed to conducting the IPO at an unspecified date in the future.

Bankers wary

The bankers are nevertheless wary after the Aramco experience. It highlighted the hurdles of doing business in a country governed by an absolute monarchy where public protest and political parties are banned. It also added to uncertainty after scores of top royals, ministers and businessmen were rounded up in an anti-corruption campaign last November.

The preparation for the listing was launched by Crown Prince Mohammed bin Salman two years ago and some bankers had flown to the kingdom hundreds of times to work in the Dhahran camp, a gated compound for the oil group’s residents.

A different source said Aramco had demanded it deal only with the very top bankers.

Another person familiar with the Aramco deal said he had made more than 20 trips to Dhahran over 18 months but with little to show for it. He said his team would “give the same presentation each time without getting much feedback.”

Bankers also say the fees are modest in comparison to those paid by other countries.

“The deal flow is huge but there’s a worry that the fees coming from these projects are low,” said a Gulf-based banker who spoke on conditions of anonymity.

“Saudi Arabia is lower than Hong Kong and Dubai when it comes to fees,” he said. “It’s all substandard.”

 

Typical fees for banks doing IPOs in more developed markets are around 1 percent of the overall deal while estimates from bankers and analysts for an Aramco IPO was 0.2 percent.

The 35 banks who worked on Chinese internet giant Alibaba’s $21.8 billion float, led by six main underwriters, pocketed an estimated $300 million among them, according to Thomson Reuters data.

‘Plenty of deals’

Still, the rewards from a privatization that analysts expect to generate ($9 billion to $11 billion) by 2020 are too big for bankers to ignore.

HSBC is already advising Saudi International Petrochemical Company on a potential merger with Sahara Petrochemical, which is being advised by Morgan Stanley, according to disclosures from March.

U.S. bank Citigroup obtained a license to conduct capital markets business in Saudi Arabia last year after an absence of almost 13 years.

Moelis is preparing to apply for an advisory license in Saudi Arabia and U.S. boutique investment bank Evercore opened an office in Dubai in 2017.

The government is also trying to make it easier to do deals, changing the law to allow alternatives to traditional debt finance.

“There are plenty of deals to be made from bigger players looking to consolidate their market position and buy out competitors,” said Mohammed Fahmi, the Dubai-based co-Head of EFG Hermes Investment Banking.

“Good stories will continue to see a following.”
…

The film industry organization that presents the Academy Awards is also developing young talent through a program called Academy Gold — an internship and mentoring program for students and young professionals from communities currently underrepresented in Hollywood. Some of the participants are either immigrants or children of immigrants who are trying to create an unorthodox career path for themselves. VOA’s Elizabeth Lee reports from Los Angeles.
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Community and conservation groups in Myanmar have branded a planned highway linking a port project to Thailand an “ecological and social disaster,” saying it would uproot indigenous people from their homes and farms.

Critics said an environmental and social impact assessment for the road project, approved by the Myanmar government in June, failed to adequately specify compensation for loss of land and livelihoods, among other problems.

“This is a road to an ecological and social disaster (in Myanmar),” said Christy Williams, Myanmar director for the World Wide Fund for Nature (WWF), an international conservation group.

The highway is considered strategically important to both nations as it would link Thailand to a deep-sea port and planned Special Economic Zone (SEZ) in Dawei, a town on the Myanmar side of an isthmus divided between the two countries.

The industrial complex would serve as a gateway to Southeast Asia’s markets, with goods trucked between Dawei and Thailand, avoiding the need for ships to sail southward through the Malacca Straights, the world’s busiest shipping lane.

​Region of rich biodiversity

But Williams said the planned road would pass through a region of “huge ecological importance with rich biodiversity.”

The assessment looked only at the effects on people and the environment within 500m (550 yards) of the road, he added, but the impact will affect a much wider area.

He said WWF had been working with communities and provided “extensive recommendations and solutions” to the Myanmar government and Myandawei Industrial Estate Co. Ltd, the Thai firm developing the road and SEZ, but these had “been ignored.”

The impact assessment failed to address many issues brought forward by residents during consultation sessions, said Thant Zin, director of the Dawei Development Association, a local civil society group.

“Our main concerns over the project are forced relocation of thousands of local indigenous people, potential industrial pollution … land grabbing and livelihood issues, and human rights violations in project area,” he said.

A spokesman for Myanmar’s environment ministry did not respond to repeated requests for comment.

Gunn Bunchandranon, a spokesman for Myandawei Industrial Estate Co. Ltd, said the highway’s impact assessment was in line with the laws of both Myanmar and Thai.

He said people from affected communities who attended public consultations did not raise any concerns about compensation for loss of land.

However, a 2015 draft of the impact assessment provided by conservation group EarthRights International included the minutes of one such meeting where the land compensation question was raised.

Risk of renewed conflict

Myanmar residents have also expressed fear that the highway could reignite conflict between the government and Myanmar’s oldest armed group, the Karen National Union (KNU), according to Ben Hardman of EarthRights International.

Those concerns did not make it into the impact assessment, Hardman said.

The KNU signed a cease-fire agreement with the military in 2012, ending six decades of fighting. In 2015 it signed a national cease-fire agreement (NCA), along with other armed ethnic groups.

But relations with the government remain tense, and the KNU claims control over territory the highway would pass through.

Saw Tah Doh Moo, the group’s secretary general, said the NCA required that the KNU be consulted about any development projects in areas under its control.

However, neither the company nor the government have officially discussed the road project with them, he said.

“I don’t want to say what would happen, but it would undermine the NCA,” he told the Thomson Reuters Foundation by phone. “We have to think about how to respond.”
…

U.S. President Donald Trump notified Congress on Friday of his intent to sign a trade agreement with Mexico after talks with Canada broke up earlier in the day with no immediate deal to revamp the tri-nation North American Free Trade Agreement.

U.S. Trade Representative Robert Lighthizer said U.S. officials would resume talks with their Canadian counterparts next Wednesday with the aim of getting a deal all three nations could sign.

All three countries have stressed the importance of NAFTA, which governs billions of dollars in regional trade, and a bilateral deal announced by the United States and Mexico on Monday paved the way for Canada to rejoin the talks this week.

But by Friday the mood had soured, partly on Trump’s off-the-record remarks made to Bloomberg News that any trade deal with Canada would be “totally on our terms.” He later confirmed the comments, which the Toronto Star first reported.

“At least Canada knows where I stand,” he later said on Twitter.

Ottawa has stood firm against signing “just any deal.” 

​’Making progress’

But at a news conference Friday afternoon, Canadian Foreign Minister Chrystia Freeland expressed confidence that Canada could reach agreement with the United States on a renegotiated NAFTA trade pact if there was “goodwill and flexibility on all sides.”

“We continue to work very hard and we are making progress. We’re not there yet,” Freeland told reporters.

“We know that a win-win-win agreement is within reach,” she added. “With goodwill and flexibility on all sides, I know we can get there.”

The Canadian dollar weakened to C$1.3081 to the U.S. dollar after The Wall Street Journal first reported that the talks had ended Friday with no agreement. Canadian stocks remained 0.5 percent lower.

Global equities were also down following the hawkish turn in Trump’s comments on trade.

Lighthizer has refused to budge despite repeated efforts by Freeland to offer some dairy concessions to maintain the Chapter 19 independent trade dispute resolution mechanism in NAFTA, The Globe and Mail reported Friday.

However, a spokeswoman for USTR said Canada had made no concessions on agriculture, which includes dairy, but added that negotiations continued.

The United States wants to eliminate Chapter 19, the mechanism that has hindered it from pursuing anti-dumping and anti-subsidy cases. Lighthizer said on Monday that Mexico had agreed to cut the mechanism. For Ottawa, Chapter 19 is a red line.

Trump argues Canada’s hefty dairy tariffs are hurting U.S. farmers, an important political base for his Republican Party.

But dairy farmers have great political clout in Canada too, and concessions could hurt the ruling Liberals ahead of a 2019 federal election.

At a speech in North Carolina on Friday, Trump took another swipe at Canada. “I love Canada, but they’ve taken advantage of our country for many years,” he said.
…

U.S. President Donald Trump said on Saturday there was no need to keep Canada in the North American Free Trade Agreement and warned Congress not to meddle with the trade negotiations or he would terminate the trilateral trade pact altogether.

“There is no political necessity to keep Canada in the new NAFTA deal. If we don’t make a fair deal for the U.S. after decades of abuse, Canada will be out,” Trump said on Twitter.

“Congress should not interfere w/ these negotiations or I will simply terminate NAFTA entirely & we will be far better off,” he added.

Trump on Friday notified Congress of his intent to sign a bilateral deal with Mexico, after contentious talks with Canada ended on Friday without a deal to revamp NAFTA. Trump had unveiled a deal with Mexico on Monday.

Lawmakers on Friday warned that a deal with Mexico could struggle to win approval from Congress unless Canada was also included. Support from Democrats would be needed to pass a purely bilateral deal, they said.

Trump on Monday threatened to slap tariffs on Canadian-made cars if Canada did not join the talks to revamp NAFTA, which he has repeatedly criticized. Trump on Saturday, in his Twitter posts, reprised his attacks that NAFTA has resulted in a loss of U.S. jobs and business.

 

 
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